What changed in this filing

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Item 1. Financial Statements

2022-02-04 compared with 2021-11-09 · 78 added, 64 removed, 227 unchanged (38% of the section changed)

2 unchanged sentences

Condensed Consolidated Interim Balance Sheets

As at September 30,

As at December 31,

As at June 30,

19 unchanged sentences

Stockholders' Equity

Common stock, par value $ 0.01 , 200,000,000 authorized shares, 40,525,151 issued and outstanding at September 30, 2021 and 200,000,000 authorized shares, 38,154,109 issued and outstanding at June 30, 2021 (Note 5)

Common stock, par value $ 0.01 , 200,000,000 authorized shares, 40,623,857 issued and outstanding at December 31, 2021 and 200,000,000 authorized shares, 38,154,109 issued and outstanding at June 30, 2021 (Note 5)

Additional paid in capital

6 unchanged sentences

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

Period Ended September 30, 2021

September 30, 2020

Period Ended December 31, 2021

December 31, 2020

Period Ended December 31, 2021

December 31, 2020

Other income (Note 9)

Total Revenue

Land holding costs

22 unchanged sentences

Capital issued for payment of interest

Balance at September 30, 2021

Balance at December 31, 2021

Paid-In Capital

2 unchanged sentences

Stock based compensation

Capital issued for services

Capital issued for payment of interest

1 unchanged sentence

Capital issued on conversion of debt

Balance at September 30, 2020

Balance at December 31, 2020

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

1 unchanged sentence

Condensed Consolidated Interim Statements of Cash Flows

Period Ended September 30, 2021

September 30, 2020

Period Ended December 31, 2021

December 31, 2020

Adjustment for:

Share based payments (Note 5)

Stock based compensation (Note 5)

6 unchanged sentences

Cash used in operating activities

Purchase of mineral properties

Purchase of equipment

Cash used in investing activities

Capital issued for financing (Note 5)

Capital issued for financing, net of share issuance costs (Note 5)

Cash provided by financing activities

6 unchanged sentences

Notes to Condensed Consolidated Interim Financial Statements

For the Three-Month Period Ended September 30, 2021 and 2020

For the Six-Months Period Ended December 31, 2021 and 2020

Description of Business and Summary of Significant Accounting Policies

15 unchanged sentences

We will continue to monitor the COVID-19 situation closely.

The results of operations for the interim period ended September 30, 2021 is not necessarily indicative of the operating results expected for any future period.

The results of operations for the interim period ended December 31, 2021 are not necessarily indicative of the operating results expected for any future period.

The condensed consolidated interim financial statements have been prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America (“U.S.

18 unchanged sentences

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Financial assets carried at fair value on a recurring basis by level within the fair value hierarchy in the Condensed Consolidated Interim Balance Sheets at September 30, 2021 and June 30, 2021 are presented in the following table:

Fair Value at September 30, 2021

Financial assets carried at fair value on a recurring basis by level within the fair value hierarchy in the Condensed Consolidated Interim Balance Sheets at December 31, 2021 and June 30, 2021 are presented in the following table:

Fair Value at December 31, 2021

June 30, 2021

Cash and cash equivalents

The carrying values of accounts payable and accrued liabilities and convertible debt (Note 6) approximate fair value as of September 30, 2021 and June 30, 2021.

The carrying values of accounts payable and accrued liabilities and convertible debt (Note 6) approximate fair value as of December 31, 2021 and June 30, 2021.

Non-Cash Transactions

During the three-month period ended September 30, 2021, the Company issued 168,690 shares of Common Stock for payment of interest accrued and owing on its outstanding 2019 Convertible Notes.

During the three-month period ended September 30, 2020, the Company issued 183,395 shares of Common Stock for payment of interest accrued and owing on its outstanding 2019 Convertible Notes.

During the six-month period ended December 31, 2021, the Company issued 168,690 shares of Common Stock for payment of interest accrued and owing on its outstanding 2019 Convertible Notes.

During the six-month period ended December 31, 2020, the Company issued 183,395 shares of Common Stock for payment of interest accrued and owing on its outstanding 2019 Convertible Notes.

Additionally, 550,609 shares of Common Stock were issued upon the conversion of 551 of its outstanding 2019 Convertible Notes.

The Company also issued 166,792 shares of Common Stock to Ausenco Engineering USA South Inc.

in exchange for services valued at $ 183,471 .

Capital Stock

1 unchanged sentence

Authorized capital stock consists of 200,000,000 common shares with par value of $ 0.01 per common share (June 30, 2021 – 200,000,000 common shares with par value $ 0.01 per common share).

During the three-month period ended September 30, 2021, the Company issued 2,202,352 shares at an approximate average price of $ 0.856 for gross proceeds of $ 1,886,135 through its at-the-market offering.

During the six-month period ended December 31, 2021, the Company issued 2,301,058 shares at an approximate average price of $ 0.853 for gross proceeds of $ 1,963,931 through its at-the-market offering.

Share issuance costs related to this were $ 65,456 .

The Company also issued 168,690 shares for payment of interest accrued and owing (Note 6) with a fair value of $ 163,642 .

During the three month period ended September 30, 2020, the Company issued 595,281 shares at an approximate average price of $ 1.3344 for gross proceeds of $ 794,345 .

During the six-month period ended December 31, 2020, the Company issued 727,781 shares at an approximate average price of $ 1.30 for gross proceeds of $ 948,026 .

Share issuance costs including commissions were $ 50,670 for net proceeds of $ 897,356 .

The Company also issued 183,395 shares for payment of interest accrued and owing at June 30, 2020 (Note 6).

The Company also issued 183,395 shares for payment of interest accrued and owing at June 30, 2020 (Note 6) with a fair value of $ 205,413 .

The Company also issued 550,609 shares upon the conversion of 551 of the 2019 Senior Secured Convertible Notes (Note 6).

At September 30, 2021 there were 40,525,151 common shares issued and outstanding (June 30, 2021 – 38,154,109 common shares).

At December 31, 2021 there were 40,623,857 common shares issued and outstanding (June 30, 2021 – 38,154,109 common shares).

Stock Options and Stock Based Compensation

Paramount’s 2015 and 2016 Stock Incentive and Compensation Plans, which are stockholder-approved, permits the grant of stock options and stock to its employees and directors for up to 3.5 million shares of common stock.

Option awards are generally granted with an exercise price equal to the market price of Paramount’s stock at the date of grant and have contractual lives of 5 years.

To better align the interests of its key executives, employees and directors with those of its shareholders a significant portion of those

share option awards will vest contingent upon meeting certain stock price appreciation performance goals and other performance conditions.

Option awards are generally granted

with an exercise price equal to the market price of Paramount’s stock at the date of grant and have contractual lives of 5 years .

To better align the interests of its key executives, employee s and directors with those of its shareholders a significant portion of those share option awards will vest contingent upon meeting certain stock price appreciation performance goals and other performance conditions.

Option and share awards provide for accelerated vesting if there is a change in control (as defined in the employee share option plan).

During the three-month period ended September 30, 2021, the Company did no t grant any stock options (2020 – 55,000 ).

During the three-month period ended September 30, 2021, share-based compensation expense relating to service condition options and performance condition was $ 45,021 and $ 35,843 , respectively (2020- $ 23,029 and $ 44,477 ) .

During the three-month period ended December 31, 2021, the Company did no t grant any stock options (2020 – 700,000 ).

During the three-month period ended December 31, 2021, share-based compensation expense relating to service condition options and performance condition options was $ 25,410 and $ 16,470 , respectively (2020 - $ 176,973 and $ 24,492 ) .

During the six-month period ended December 31, 2021, the Company did no t grant any stock options (2020 – 755,000 ).

During the six-month period ended December 31, 2021, share-based compensation expense relating to service condition options and performance condition options was $ 48,050 and $ 36,501 , respectively (2020 - $ 200,002 and $ 78,887 ).

The fair value for these options was calculated using the Black-Scholes option valuations method.

The weighted average assumptions used for the three-month period ended September, 2021 and three-month period ended September 30, 2020 were as follows:

Three-Months Ended September 30, 2021

Three-Months Ended September 30, 2020

The weighted average assumptions used for the six-month period ended December 31, 2021 and six-month period ended December 31, 2020 were as follows:

Six-Months Ended December 31, 2021

Six-Months Ended December 31, 2020

Weighted average risk-free interest rate

3 unchanged sentences

Weighted average fair value

A summary of option activity under the Stock Incentive and Compensation Plans as of September 30, 2021 is presented below:

A summary of option activity under the Stock Incentive and Compensation Plans as of December 31, 2021 is presented below:

Exercise Price

6 unchanged sentences

Forfeited or expired

Outstanding at September 30, 2021

Exercisable at September 30, 2021

A summary of the status of Paramount’s non-vested options as at September 30, 2021 is presented below:

Outstanding at December 31, 2021

Exercisable at December 31, 2021

A summary of the status of Paramount’s non-vested options as at December 31, 2021 is presented below:

Non-vested Options

5 unchanged sentences

Forfeited or expired

Non-vested at September 30, 2021

As of September 30, 2021, there was $ 77,970 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the employee share option plans.

That cost is expected to be recognized over a weighted-

average period of 1.15 years .

The total fair value of s tock based compensation arrangements vested during the three -month period ended September 30 , 2021 and 2020 , was $ nil and $ nil , respectively.

Non-vested at December 31, 2021

As of December 31, 2021, there was $ 36,091 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the employee share option plans.

That cost is expected to be recognized over a weighted-average period of 1.15 years.

The total fair value of stock based compensation arrangements vested during the six-month period ended December 31, 2021 and 2020, was $ 152,279 and $nil, respectively.

Convertible Debt

September 30, 2021

December 31, 2021

June 30, 2021

6 unchanged sentences

Unamortized discount and issuance costs of $ 275,883 will be amortized as an additional interest expense over the four year term of the 2019 Convertible Notes.

During the three-month period ended September 30, 2021, the Company amortized $ 15,201 (2020- $ 25,318 ) of discount and issuance costs.

During the six-month period ended December 31, 2021, the Company amortized $ 30,402 (2020- $ 53,758 ) of discount and issuance costs.

At any point after the second anniversary of the issuance of the convertible notes, Paramount may force conversion if the share price of its common stock remains above $ 1.75 for 20 consecutive trading days.

The convertible notes are secured by a lien on all assets of the Company and the Company is required to maintain a working capital balance of $ 250,000 .

At September 30, 2021, the working capital covenant was met by the Company.

During the three-month period ended September 30, 2021, there were no conversions of 2019 Convertible Notes to common stock of the Company.

During the three-month period ended September 30, 2020, 200 of the 2019 Convertible Notes outstanding were converted into 200,000 shares of common stock of the Company (Note 5) and $ 7,934 of unamortized discount and issuance costs were debited to additional paid in capital to reflect the issued common stock.

At December 31, 2021, the working capital covenant was met by the Company.

During the six-month period ended December 31, 2021, there were no conversions of 2019 Convertible Notes to common stock of the Company.

During the six-month period ended December 31, 2020, 551 of the 2019 Convertible Notes outstanding were converted into 550,609 shares of common stock of the Company (Note 5) and $ 20,760 of unamortized discount and issuance costs were debited to additional paid in capital to reflect the issued common stock.

Mineral Properties

The Company has capitalized acquisition costs on mineral properties as follows:

September 30,

Sleeper and other Nevada based Projects

11 unchanged sentences

The Company has posted several cash bonds as financial security to satisfy reclamation requirements.

The balance of posted cash reclamation bonds at September 30, 2021 is $ 500,738 (June 30, 2021 - $ 533,703 ).

The balance of posted cash reclamation bonds at December 31, 2021 is $ 500,738 (June 30, 2021 - $ 533,703 ).

Paramount is responsible for managing the reclamation activities from the previous mine operations at the Sleeper Gold Mine as directed by the BLM and the Nevada State Department of Environmental Protection (“NDEP”).

6 unchanged sentences

The asset retirement obligation for the Sleeper Gold Project recorded on the balance sheet is equal to the present value of the estimated reclamation costs as required by both the BLM and NDEP.

The following variables were used in the calculation for the periods ending September 30, 2021 and June 30, 2021:

Three-Months Ended September 30, 2021

The following variables were used in the calculation for the periods ending December 31, 2021 and June 30, 2021:

Six-Months Ended December 31, 2021

Year Ended June 30, 2021

1 unchanged sentence

Weighted-average inflation rate

Changes to the Company’s asset retirement obligations for the Sleeper Gold Mine for the three-month period ended September 30, 2021 and the year ended June 30, 2021 are as follows:

September 30,

Changes to the Company’s asset retirement obligations for the Sleeper Gold Mine for the six-month period ended December 31, 2021 and the year ended June 30, 2021 are as follows:

June 30, 2021

3 unchanged sentences

Balance at end of period

The balance of the asset retirement obligation of $ 1,895,613 at September 30, 2021 (June 30, 2021 -$ 1,849,644 ) is comprised of a current portion of 316,022 (June 30, 2020 -$ 310,022 ) and a non-current portion of 1,579,591 (June 30, 2020 -$ 1,539,622 ).

The Company recorded an accretion expense for the three-month period ended September 30, 2021 of $ 45,969 (September 30, 2020 - $ 15,010 ).

The Company’s other income details for the three month period ended September 30, 2021 and 2020 were as follows:

September 30,

The balance of the asset retirement obligation of $ 1,909,832 at December 31, 2021 (June 30, 2021 -$ 1,849,644 ) is comprised of a current portion of $ 290,272 (June 30, 2020 -$ 310,022 ) and a non-current portion of $ 1,619,560 (June 30, 2020 -$ 1,539,622 ).

The Company recorded an accretion expense for the three and six-month period ended December 31, 2021 of $ 45,969 and $ 91,938 (2020 - $ 15,010 and $ 30,020 ).

The Company’s other income details for the three and six-month periods ended December 31, 2021 and 2020 were as follows:

Six-Month Period

Ended December 31, 2021

Ended December 31, 2020

Re-imbursement of reclamation costs

2 unchanged sentences

Segmented information has been compiled based on the material mineral properties in which the Company performs exploration activities.

Expenses and mineral property carrying values by material project for the three-month period ended September 30, 2021:

September 30, 2021

Expenses and mineral property carrying values by material project for the three and six-month periods ended December 31, 2021:

December 31, 2021

Six-Month Period Ended December 31, 2021

December 31, 2021

Six -Month Period Ended December 31, 2021

Mineral Properties

As at September 30,

As at December 31,

Sleeper Gold Project and other Nevada based Projects

Grassy Mountain Project and other Oregon based Projects

Expenses for the three-month period ended September 30, 2020 and mineral property carrying values as at June 30, 2021 by material project:

September 30, 2020

Expenses for the three and six-month periods ended December 31, 2020 and mineral property carrying values as at June 30, 2021 by material project:

December 31, 2020

Six-Month Period Ended December 31, 2020

December 31, 2020

Six-Month Period Ended December 31, 2020

Mineral Properties

10 unchanged sentences

The agreement with Cryla can be terminated by Paramount at any time.

All lease payments under the agreement are up-to-date and no other payments were made during the three-month period ended September 30, 2021.

All lease payments under the agreement are up-to-date and no other payments were made during the six-month period ended December 31, 2021.

The Cryla Claims are without known mineral reserves and there is no current exploratory work being performed.

2 unchanged sentences

Nevada Select will retain a 2 % NSR on the Frost Claims and Paramount has the right to reduce the NSR to 1 % for a payment of $ 1 million.

During the nine-month period ended March 31, 2021, the Company made a payment to Nevada Select for $ 15,000 upon receipt of its drilling permit from state and federal regulators and all required payments under the agreement are up-to-date as of September 30, 2021.

For the six-month period ended December 31, 2021, the Company has made all required payments under the agreement.

The Frost Claims are without known mineral reserves.

During the three-month period ended September 30, 2021, the Company entered into an option agreement with Nevada Select to purchase the Bald Peak mining claims in the State of Nevada and California for a total consideration of $ 300,000 .

During the six-month period ended December 31, 2021, the Company entered into an option agreement with Nevada Select to purchase the Bald Peak mining claims in the State of Nevada and California for a total consideration of $ 300,000 .

Payments under the agreement will be based on achieving certain events over time.

1 unchanged sentence

The Bald Peak Claims are without known mineral reserves.

Subsequent Events

Subsequent to the period end, the Company issued 235,894 shares of Common Stock at a fair value price of $ 0.68 for payment of interest accrued and owing at December 31, 2021 on its outstanding 2019 Convertible Notes.

Subsequent to the period end, the Company issued 2,919,045 ATM shares at an average price of $ 0.70 for gross proceeds of approximately $ 2,043,332 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements