Item 2. Management’s Discussion and Analysis
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Readers should note that, in addition to the historical information contained herein, this Quarterly Report and the exhibits attached hereto contain “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on United States Antimony Corporation (“US Antimony,” “USAC,” or the “Company”) including matters related to the Company’s operations, pending contracts and future revenues, financial performance, and profitability, ability to execute on its increased production and installation schedules for planned capital expenditures, and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always using words or phrases such as “believes,” “expects” or “does not expect,” “is expected,” “outlook,” “anticipates” or “does not anticipate,” “plans,” “estimates,” “forecast,” “project,” “pro forma,” or “intends,” or stating that certain actions, events or results “may” or “could,” “would,” “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and are subject to assumptions and uncertainties. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation, risks related to:
● The Company’s properties being in the exploration stage;
● Macroeconomic factors;
● The imposition of new tariffs, changes in trade policy or agreements, or the escalation of trade tensions between the United States and other countries or regions could have a material adverse impact on our business;
● Continued operational losses;
● Negative consequences related to mineral operations being subject to existing and new government regulations within and outside the United States;
● The Company’s ability to obtain additional capital to develop the Company’s resources, if any;
● Concentration of customers;
● Increase in energy costs;
● Mineral exploration and development activities;
● Mineral estimates;
● The Company’s insurance coverage for operating risks;
● The fluctuation of prices for antimony and precious metals, such as gold and silver;
● The competitive industry of mineral exploration;
● The title and rights in the Company’s mineral properties;
● Environmental hazards;
● The possible dilution of the Company’s common stock from additional financing activities;
● Metallurgical and other processing problems;
● Unexpected geological formations;
● Global economic and political conditions;
● Staffing in remote locations;
● Changes in product costing;
● Inflation on operational costs and profitability;
● Competitive technology positions and operating interruptions (including, but not limited to, labor disputes, leaks, fires, flooding, landslides, power outages, explosions, unscheduled downtime, transportation interruptions, war and terrorist activities);
● Global pandemics, natural disasters, or civil unrest;
● Mexican labor and other issues regarding safety and organized control over our properties;
● The positions and associated outcomes of Mexican and other taxing authorities;
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● Cybersecurity and business disruptions;
● Ineffective use of cash and cash equivalents, including proceeds from stock offerings;
● Potential conflicts of interest with the Company’s management;
● Mining exploration, development, and production not being economically viable;
● Mineral reserve estimates, including those prepared by “Qualified Persons” (as defined by SEC Regulation S-K 1300), are not guarantees of the volume or grade of ore that will ultimately be recovered;
● Processing and selling ore from new suppliers and internal sources not being economically viable;
● More risk associated with non-domestic supply of antimony ore; and
● Fluctuations in the Company’s common stock.
This list is not an exhaustive list of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors,” “Description of Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report. If one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review this Form 10-Q, the exhibits hereto, and the reports and documents incorporated by reference herein and filed with the Securities and Exchange Commission (the “SEC”).
You should read this report with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect and from our historical results.
This report contains estimates, projections and other information concerning our industry, our business and the markets for our products. We obtained the industry, market and similar data set forth in this report from our own internal estimates and research and from industry research, publications, surveys and studies conducted by third parties, including governmental agencies. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. While we believe that the data we use from third parties is reliable, we have not separately verified this data. You are cautioned not to give undue weight to any such information, projections and estimates. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by forward-looking statements.
As used in this Quarterly Report, the terms “we,” “us,” “our,” “United States Antimony Corporation,”, “US Antimony,” “USAC,” and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.
Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2024.
DESCRIPTION OF BUSINESS
History
United States Antimony Corporation’s principal business is the production and sale of antimony, precious metals, and zeolite products. The Company was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, the Company suspended its antimony mining operations in the U.S. but continued to produce antimony products using foreign sources of antimony ore. In April 1998, the Company formed US Antimony de Mexico, S.A. de C.V. (“USAMSA”) to produce antimony products in Mexico, and, in August 2005, the Company formed Antimonio de Mexico, S.A. de C.V. (“ADM”) to explore and develop antimony and precious metal deposits in Mexico. The Company formed Bear River Zeolite Company (“BRZ”) in 2000 for the purpose of mining and producing zeolite products in Idaho. Beginning in 2024, the Company began acquiring mining claims and leases located in Alaska, Montana and Ontario, Canada, which necessitated forming three entities related to the Alaska mining claims, Great Land Minerals, LLC, Denali Minerals, LLC, and Alaska Antimony LLC, and one entity related to the Ontario mining claims and leases, UAMY Cobalt Corporation. We invested in these mining claims and leases in an effort to reduce the cost of third party antimony ore purchases. Currently, no active operations are being conducted, nor is any revenue being generated, from the Company’s business components located in Los Juarez,
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Mexico (our ADM subsidiary), Ontario, Canada, Alaska, and the mining claims in Thompson Falls, Montana. In September 2025, the Company obtained government permits to begin exploration of its mining claims in Alaska and commenced limited surface mining at two of these sites before the mining season ended due to weather constraints. In October 2025, the Company completed the purchase of additional property in Fairbanks, Alaska that will be used for operating activities, including ore separation and storage, as well as an office for its staff.
In May 2012, our shares of common stock started trading on the NYSE MKT exchange (now NYSE AMERICAN) under the symbol UAMY. On July 1, 2025, the Company’s common stock also began trading on a new stock exchange, the NYSE Texas. The Company continues to maintain its primary listing on the NYSE American Stock Exchange and trades with the same “UAMY” ticker symbol on both exchanges.
In June 2025, the Company acquired property located in the Sudbury District of Ontario, Canada, which included 50 single-cell tungsten mining claims (the Fostung Properties). We have completed fieldwork but not yet extracted any minerals from the Fostung Properties and we have not previously prepared a technical report summary making a determination on the property’s mineral resources or mineral reserves. However, the Company has recently retained a qualified third-party expert who is in the process of preparing a technical reserve report for the Fostung Properties.
On August 28, 2025, the Company completed the conversion of its state of incorporation from the State of Montana to the State of Texas (the “Texas Reincorporation”) by means of a Plan of Conversion, effective August 13, 2025. The Texas Reincorporation, including the principal terms of the Plan of Conversion, was submitted to a vote of, and approved by, the Company’s stockholders at the Company’s 2025 Annual Meeting of Stockholders held on July 31, 2025. Upon completing the Texas Reincorporation, the rights of the Company’s shareholders previously governed by the Montana Business Corporation Act, as amended, and the Company’s Articles of Incorporation and Bylaws in effect prior to the Texas Reincorporation, are now governed by the Texas Business Organizations Code and the Certificate and Bylaws filed and adopted by the Company under Texas law. The Texas Reincorporation did not result in any change in business, jobs, management, properties, location of any of our offices or facilities, number of employees, obligations, assets, liabilities or net worth. Also, the Company continues to maintain its corporate headquarters in Texas and no interruption in the trading of its common stock occurred.
In September 2025, the Company secured a five-year, sole-source Indefinite Delivery, Indefinite Quantity (IDIQ) contract with the U.S. Defense Logistics Agency (DLA) Strategic Materials, which is responsible for managing the National Defense Stockpile (NDS). The contract, with a maximum value of $245 million, is for the supply of antimony metal ingots (99.65% purity) to replenish the NDS through September 2030. Pricing is determined at the time each delivery order is placed. At the end of September 2025, the Company announced it had received the first delivery order under its contract with the DLA. This initial order for the purchase of 315,000 pounds of antimony metal ingots is valued at approximately $10 million. During the three and nine months ended September 30, 2025 and to-date, no revenue has been recognized related to this contract.
The Company has two reportable segments: antimony and zeolite.
Antimony Segment
Our antimony segment consists of:
● Our facility located in the Burns Mining District of Sanders County in Montana that processes ore primarily into antimony oxide, antimony metal ingots, antimony trisulfide, and precious metals, and
● Two facilities in our USAMSA subsidiary located in Mexico, one being a rock crushing mill and the other a smelter, that process ore primarily into antimony metal ingots, a lower grade of antimony oxide, and precious metals.
Antimony is a mineral that is included in many products that are used every day, both by the military and by industrial customers. USAC can provide this mineral in a form that can be used in various products.
Antimony is used in many products as a fire-retardant and a primer and is on the Critical Minerals List of the U.S. Government. Antimony mined from the ground, which is called antimony ore or ore, is typically not salable as a finished product primarily due to impurities in the ore, the ore size not being compatible with its intended use, and the percentage of antimony contained in the ore being too low. We process ore to remove impurities, refine the size, and increase the percentage of antimony contained in the ore to approximately 71.4% to make the finished product called antimony trisulfide, to approximately 83% to make the finished product called antimony oxide, and to approximately 99.65% to make the finished product called antimony metal ingots. Antimony trisulfide, oxide, and metal can be sold
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as finished products to companies in many industries as well as government agencies. Antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Antimony metal ingots are used in bearings, storage batteries, and ordnance. Antimony trisulfide is used as a primer in ammunition. The ore we purchase for our facility located in Montana contains antimony, gold, and silver. Our Montana facility processes this ore and typically sells the gold and silver to the company who sold us this ore, which represents all our precious metals sales, and sells the antimony to other companies in various industries. Our Mexico facilities have been processing ore primarily into antimony metal ingots.
We estimate (but have not independently confirmed) that our present share of the domestic and international markets for antimony oxide products is approximately 4% and less than 1%, respectively. We believe we are competitive due to the following:
● We are the only U.S. domestic operating, permitted processor of antimony products.
● We can process ore quickly and have minimal shipping time to domestic customers.
● We have a reputation for quality products delivered on a timely basis.
● Our smelter in Coahuila, Mexico is the largest and only current operating smelter for the processing of antimony products in Mexico.
● We are a fully vertically integrated operation that includes mining, processing and selling antimony products. We believe there are no other companies in the world, outside of Russia or China, that can make that claim.
Zeolite Segment
Our zeolite segment includes our vertically integrated Bear River Zeolite (“BRZ”) facility located in Preston, Idaho that mines, processes, and sells zeolite. Zeolite is a mineral that is included in many products that are used every day. BRZ can provide these minerals in a form that can be used in these products. Our zeolite has been used for many purposes including water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications.
On July 24, 2025, the Company published a technical report summary on its zeolite mineral deposit located in Preston, Idaho. This Technical Report Summary, dated July 2, 2025 (the “TRS”), on the Bear River Zeolite Project was prepared in accordance with the mining property disclosure rules specified in subpart 1300 of Regulation S-K. The full text of the TRS is an exhibit to the Form 8-K filed by the Company on July 25, 2025.
BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on the property in Preston, Idaho, in exchange for an annual payment and a royalty payment, which is based on the amount of zeolite shipped from the leased property (“BRZ Lease”). The BRZ Lease was recently extended and now ends on December 31, 2034. In addition, BRZ can surface mine and process zeolite on property owned by the U.S. Bureau of Land Management that is located adjacent to the Company’s Preston, Idaho property after obtaining required permits.
“Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice. BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr. (which predicts plant nutrient availability and retention in soil), its hardness and high clinoptilolite content (which is an effective barrier to prevent problematic radionuclide movement), its absence of clay minerals, and its low sodium content. Our zeolite has been used in:
☐
Soil Amendment and Fertilizer . Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops.
☐
Water Filtration . Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, industrial water discharge streams, fisheries, fish farms, and aquariums.
☐
Sewage Treatment . Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms.
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☐
Nuclear Waste and Other Environmental Cleanup . Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium.
☐
Odor Control . A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor.
☐
Gas Separation . Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fishponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses.
☐
Animal Nutrition . According to third-party research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours.
☐
Miscellaneous Uses . Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides.
SELECTED FINANCIAL DATA.
Operational and Financial Performance of Operations by Segment:
Antimony
Financial and operational performance of antimony for the three months ended September 30, 2025 and 2024 was as follows:
Three months ended September 30,
Antimony
2025
2024
$ Change
% Change
Revenue (a)
$
8,030,005
$
1,489,798
$
6,540,207
439
%
Gross profit (a)
$
2,189,229
$
281,207
$
1,908,022
679
%
Pounds of antimony sold (a)
279,607
250,047
29,560
12
%
Average sales price per pound
$
28.72
$
5.96
$
22.76
382
%
Average cost per pound
$
20.89
$
4.84
$
16.05
332
%
Average gross profit per pound
$
7.83
$
1.12
$
6.71
599
%
a. Revenue from sales of gold and silver totaled $nil and $399,433 for the three months ended September 30, 2025 and 2024, respectively, which are excluded from Revenue and Gross profit in the table above but included in the antimony segment. Pounds of antimony sold in the table above exclude sales related to gold and silver for both periods presented.
Financial and operational performance of antimony for the nine months ended September 30, 2025 and 2024 was as follows:
Nine months ended September 30,
Antimony
2025
2024
$ Change
% Change
Revenue (b)
$
23,592,695
$
6,622,835
$
16,969,860
256
%
Gross profit (b)
$
7,493,928
$
2,428,783
$
5,065,145
209
%
Pounds of antimony sold (b)
982,559
1,134,862
(152,303)
(13)
%
Average sales price per pound
$
24.01
$
5.84
$
18.17
311
%
Average cost per pound
$
16.38
$
3.70
$
12.68
343
%
Average gross profit per pound
$
7.63
$
2.14
$
5.49
257
%
b. Revenue from sales of gold and silver totaled negative $(20,539) and $404,049 for the nine months ended September 30, 2025 and 2024, respectively, which are excluded from Revenue and Gross profit in the table above but included in the antimony segment. Pounds of antimony sold in the table above exclude sales related to gold and silver for both periods presented.
For the three and nine months ended September 30, 2025, antimony revenue increased $6,540,207, or 439%, and $16,969,860, or 256%, respectively, as compared to the corresponding periods in the prior year. This growth was primarily driven by continued heightened
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demand for antimony, which resulted in the average sales price per pound increasing for both the three and nine-month periods. During the third quarter of 2025, antimony revenue growth was also positively impacted by 12% growth in sales volume. For the nine months ended September 30, 2025, the positive impact of a 311% increase in average sales price per pound was partially offset by a 13% decline in sales volume attributable mostly to a shortage of available workforce which has since been rectified.
Gross profit increased $1,908,022, or 679%, and $5,065,145, or 209%, for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. These increases were primarily attributable to higher average sales prices per pound, driven by continued demand, coupled with favorable ore costs from earlier purchases made during the first half of 2025. This positive impact was partially offset by an increasing percentage of market prices charged by suppliers.
Zeolite
Financial and operational performance of zeolite for the three months ended September 30, 2025 and 2024 was as follows:
Three months ended September 30,
Zeolite
2025
2024
$ Change
% Change
Revenue
$
671,946
$
682,947
$
(11,001)
(2)
%
Gross profit (loss)
$
(25,813)
$
(208,392)
$
182,579
88
%
Tons of zeolite sold
2,491
2,603
(112)
(4)
%
Average sales price per ton
$
270
$
262
$
8
3
%
Average cost per ton
$
280
$
342
$
(62)
(18)
%
Average gross profit (loss) per ton
$
(10)
$
(80)
$
70
88
%
Financial and operational performance of zeolite for the nine months ended September 30, 2025 and 2024 was as follows:
Nine months ended September 30,
Zeolite
2025
2024
$ Change
% Change
Revenue
$
2,654,923
$
2,280,338
$
374,585
16
%
Gross profit (loss)
$
275,720
$
(450,556)
$
726,276
161
%
Tons of zeolite sold
9,377
8,611
766
9
%
Average sales price per ton
$
283
$
265
$
18
7
%
Average cost per ton
$
254
$
317
$
(63)
(20)
%
Average gross profit (loss) per ton
$
29
$
(52)
$
81
156
%
For the nine months ended September 30, 2025, Zeolite revenue increased $374,585, or 16%, as compared to the corresponding prior year period. This increase was largely a result of higher sales volume, stemming from enhanced customer relationships, improved supply reliability, and broader customer reach. In contrast, Zeolite revenue in the third quarter of 2025 experienced a decline of $11,001, or 2%, when compared to the prior year’s third quarter. This quarterly decrease was primarily due to the 4% decrease in tons of Zeolite sold, partially offset by a 3% increase in the average sales price per ton.
For the nine months ended September 30, 2025, gross profit was $275,720 compared to a negative gross margin of $(450,556) during the corresponding period in 2024. This improvement in gross profit was largely due to both sales volume growth and higher average sales prices, coupled with a decrease in maintenance and related costs. During the first three quarters of 2024, our BRZ facility incurred substantial maintenance and related costs to repair older operating equipment due to historically poor maintenance practices. In the third quarter of 2025, Zeolite’s gross profit improved by $182,579 from a negative gross margin of $(208,392) in the prior year third quarter to a negative gross margin of $(25,813). Gross profit in the third quarter of 2025 benefited from lower maintenance costs coupled with a higher average sales price per ton.
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Condensed Consolidated Statements of Operations Information:
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Revenues
$
8,701,951
$
2,572,178
$
26,227,079
$
9,307,222
Costs of revenues
6,688,509
2,148,349
19,004,362
7,043,685
Gross profit
2,013,442
423,829
7,222,717
2,263,537
Total operating expenses
6,930,624
1,314,850
11,761,900
3,569,004
Loss from operations
(4,917,182)
(891,021)
(4,539,183)
(1,305,467)
Total other income, net
136,482
163,512
486,562
457,982
Income tax expense
—
—
—
—
Net loss
$
(4,780,700)
$
(727,509)
$
(4,052,621)
$
(847,485)
Capital Resources and Liquidity:
September
December
Working Capital
30, 2025
31, 2024
Current assets
$
31,797,939
$
20,678,569
Current liabilities
(6,261,389)
(4,006,389)
Working capital
$
25,536,550
$
16,672,180
Nine Months Ended September 30,
Cash Flow Information
2025
2024
Net cash (used in) provided by operating activities
$
(6,220,686)
$
1,042,162
Net cash (used in) provided by investing activities
(35,995,481)
141,708
Net cash provided by (used in) financing activities
42,415,350
(71,139)
Net increase in cash
$
199,183
$
1,112,731
Net cash used in operating activities was $6,220,686 for the nine months ended September 30, 2025, compared to net cash provided by operating activities of $1,042,162 for the same period in 2024. The significant net use of cash in 2025 primarily reflected significant working capital investments made during the nine-month period. The Company experienced a $7,167,437 increase in inventory, driven by substantially higher levels of antimony inventory on hand, as illustrated in the inventory chart below. In addition, prepaid expenses and other current assets increased by $1,716,295, and accounts receivable rose by $798,413. The increase in accounts receivable reflected higher sales levels. These outflows were partially offset by a $2,672,335 increase in accounts payable, largely due to an increase in antimony purchases and an increasing percentage of market prices charged by suppliers for antimony.
Inventory by segment as of the date indicated was as follows:
December 31, 2023
September 30, 2024
December 31, 2024
September 30, 2025
Antimony inventory
$
881,063
$
443,214
$
744,550
$
7,992,140
Zeolite inventory
505,046
555,057
501,174
421,021
Total inventories
$
1,386,109
$
998,271
$
1,245,724
$
8,413,161
The increase in prepaid expenses and other currents assets was primarily due to payments made for inventory shipments that were pending receipt at September 30, 2025. This resulted in an increase in “prepaid expenses and other current assets” of approximately $1,469,000 from December 31, 2024 to September 30, 2025. Also, prepaid insurance increased by approximately $229,000 from December 31, 2024 to September 30, 2025, due to insurance renewal payments made during the second quarter of 2025 to continue coverage for the next policy year.
Net cash used in investing activities was $35,995,481 for the nine months ended September 30, 2025 as compared to net cash provided by investing activities of $141,708 for the nine months ended September 30, 2024. Investing activities in the first nine months of 2025 were comprised of $19,934,953 for purchases of U.S. Treasury Strips and capital expenditures totaling $16,069,244. These capital expenditures included $5,025,120 for the purchase of the Fostung Properties, a mining property consisting of 50 single-cell mining claims located in the Sudbury District of Ontario, Canada and approximately $9 million of construction in progress expenditures primarily associated with the expansion of our existing smelting operations located in Thompson Falls, Montana. See Note 8 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information.
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Net cash provided by financing activities was $42,415,350 for the nine months ended September 30, 2025 as compared to $71,139 of net cash used in financing activities for the corresponding period in the prior year. Significant financing activities in the first nine months of 2025 included $38,440,596 of net proceeds received from the sale of common stock in “at the market offerings” and one direct offering with an institutional investor, and $4,427,756 of proceeds received from the exercise of pre-existing common stock warrants.
In October 2025, the Company received approximately $66 million of additional net proceeds pursuant to “at the market offerings” and two direct offerings to certain institutional investors.
The Company incurred a net loss of $4.1 million for the nine months ended September 30, 2025. Included in this loss was $5.2 million of non-cash expenses, which consisted primarily of $4.7 million of non-cash share-based compensation expense and $0.8 million of non-cash depreciation and amortization expense, partly offset by $0.2 million of net non-cash lease income.
The Company has entered into a Letter of Intent to acquire an existing custom precious metals mill and flotation facility to enhance its processing capabilities. Separately, given the limited local availability of residential housing options in Thompson Falls, Montana, the Company has entered into a contract pending resolution of certain closing contingencies to purchase an existing housing development in the local area to ensure adequate housing levels are available for new employees who will work in the new expansion facility of our existing smelting operations.
Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically and through strategic acquisitions and partnerships to increase shareholder value. The Company is focused on generating cash flow to fund its mission. One method of generating cash is through the sale or issuance of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past. However, our ability to access capital or raise funds when needed is not assured and, if capital is not available when, and in the amounts and terms needed, or if capital is not available at all, the Company could be required to significantly curtail its operations, modify existing strategic plans, and/or dispose of certain operations or assets, which could materially harm our business, prospects, financial condition, and operating results.
The Company secured a $5,000,000 LOC facility with a national bank in April 2025, which bears interest at one percent above the base commercial rate. In September 2025, the LOC was increased to $10,000,000. The Company’s U.S. Treasury Strips serve as collateral for this LOC. The Company could generate funds or working capital by drawing on its LOC as it had no outstanding borrowings on the LOC at September 30, 2025.
The Company could also in the future receive funds from the U.S. Government for initiatives related to facility expansion and mining exploration and development. However, there is no assurance that U.S. Government funding will ultimately be accessible to the Company.
In addition, the Company continues to review each segment’s operational and financial results for opportunities to improve cash flow and to make informed decisions that benefit the Company overall.
As of September 30, 2025, the Company had cash and cash equivalents of $18,338,679. We intend to fund our cash requirements with our cash and cash equivalents, cash generated from our operations, and capital raised from various investment vehicles and methods and believe cash from these sources are sufficient to cover our requirements for the next twelve months. We may use cash to acquire businesses. The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such cash requirements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
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