What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-19 compared with 2025-03-20 · 168 added, 141 removed, 62 unchanged (83% of the section changed)

7 unchanged sentences

Antimony mining ceased in the U.S.

in the 1980’s, including our antimony mining in Montana, due to a significant increase of less expensive antimony ore being imported into the United States.

However, the Company continued to process ore sourced from foreign suppliers into antimony oxide, metal, and trisulfide and into precious metals, primarily gold and silver, at its facility in Montana.

in the 1980’s, including our antimony mining operations in Montana, due to a significant increase of less expensive antimony ore being imported into the United States from foreign countries.

However, the Company continued to process ore sourced from certain foreign suppliers into antimony oxide, metal, and trisulfide and into precious metals, primarily gold and silver, at its facility in Montana.

In 2025, the Company purchased the surface rights to one of its mining claims in Montana and mined 840 tons of antimony ore.

While still procuring antimony ore from suppliers, the Company’s operation in Montana is once again vertically integrated with the mining of its own ore.

In the early 2000’s, the Company expanded its footprint with antimony and precious metals operations located in Mexico and zeolite operations located in Idaho.

Our zeolite operations are vertically integrated from mining to selling zeolite, which is the Company’s goal for its businesses.

Consistent with this strategy of vertical integration, the Company acquired mining claims and leases located in Alaska and Ontario, Canada in 2024 that could expand its operations as well as its product offerings.

The Company intends to start with a geophysics study and a geological, structural, and petrographic study to enable future development with plans for a comprehensive drilling program in Alaska and Ontario.

We review our strategic initiatives to ensure an adequate return on our investment.

Management has made significant changes to the Company and its operations over the past couple years to vertically integrate and expand overall operations in new areas and to grow sales.

Beginning in 2024 and continuing in 2025, the Company began acquiring mining claims and leases located in Alaska, Montana, and Ontario, Canada.

The Company has also entered into an agreement to acquire exploration rights for mining properties located in the southeastern United States.

We invested in these mining properties to further our strategy of vertical integration and to lower our ore cost compared to third-party antimony ore purchases.

No active, revenue-producing operations were conducted in 2025 from the Company’s mining claims and leases located in Los Juarez, Mexico (our ADM subsidiary), Ontario, Canada, Alaska, and Thompson Falls, Montana.

Also, no mineral reserves or resources have been established yet for these mining claims.

However, the Company performed exploration activities and limited surface mining at several locations.

In September 2025, the Company obtained government permits to begin exploration of its mining claims in Alaska that it purchased in 2025 and commenced limited surface mining at two of these sites before the mining season ended due to weather constraints.

In October 2025, the Company produced approximately 840 tons of antimony-bearing material during a mechanized bulk sampling program at its Montana Stibnite Hill mining claim it purchased in 2025.

While Stibnite Hill represents a potential long-term source of feedstock for the Company’s smelting operations, mining remains seasonal due to weather and ceased in November 2025.

Mining is expected to resume in the spring of 2026.

Future development remains subject to ongoing assay results, further permitting, and prevailing market conditions.

In June 2025, the Company paid $5.0 million to acquire 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 have not yet extracted any minerals from the Fostung Properties.

On March 3, 2026, the Company announced the completion of an initial resource engineering study regarding these mining claims to determine the property’s initial mineral resources;

however, the report has not yet been filed with the SEC.

In October 2025, the Company completed the purchase of additional property in Fairbanks, Alaska that will be used for field operating activities, including ore separation and storage, as well as an office for its staff.

In addition, the Company addressed logistical constraints related to its workforce by purchasing an existing housing development in Thompson Falls, Montana.

This investment provides a dedicated housing solution to attract and retain the skilled labor to support increased staffing levels for our growing operations and smelting expansion.

In November 2025, the Company entered into an agreement to acquire exploration rights for mining properties located in the southeastern United States.

There were no mining activities on this property in 2025.

In January 2026, the Company completed the acquisition of a fully operational flotation and concentration facility in Radersburg, Montana for total cash consideration of $4.8 million.

The Radersburg property is expected to enhance midstream processing capacity and further vertically integrate the Company’s domestic antimony supply chain.

Management has budgeted approximately $2.0 million in capital expenditures to modernize equipment and add a new laboratory with the goal of optimizing operational efficiencies and mineral recovery rates.

In February 2026, the Company entered into a joint venture agreement with Americas Gold and Silver Corporation (“Americas”) to construct and operate a new, state-of-the-art hydrometallurgical processing facility.

The joint venture will be owned 51% by Americas and 49% by the Company, with the Company serving as managing member.

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 $248 million, is for the sale of antimony metal ingots (99.65% purity) through September 2030.

Pricing is determined at the time each delivery order is placed.

The Company received delivery orders under this contract in September 2025 and January 2026 totaling approximately $12 million.

No revenue was recognized under this contract in fiscal 2025.

In November 2025, the Company executed a five-year sales agreement with a new industrial customer for the sale of antimony trioxide.

The agreement specifies a monthly delivery schedule through December 2026.

Thereafter, delivery volumes, pricing (subject to semiannual market-based adjustments), and delivery schedules are subject to mutual written agreement every six months.

In 2026, the Company began expanding its commercial presence in the animal nutrition industry through a third party with extensive relationships in that sector, where zeolite products are used as feed amendments.

Through this relationship, the Company has received introductions to several animal nutrition customers and has begun supplying zeolite products to select customers introduced through this relationship.

The Company is in the process of formalizing a definitive agreement with this third party to support further development of these relationships.

We review our strategic initiatives to ensure an adequate return on our investments.

We also review the performance of our reportable segments and the performance of our Company with a focus on generating positive cash flow.

A cornerstone of our strategy is the well-being of our employees as they are our most valuable asset.

Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically as well as through strategic acquisitions to increase shareholder value.

Recently, our Company added some key personnel in the areas of customer service, sales, operations, finance, and plant management, a few new board members, several new business partners, and new mining claims, all of which will help achieve our strategic goals and our mission of attentive service and profitable growth.

Our mission is to serve our employees, customers, and vendors with excellence while growing the business profitably through both organic growth and strategic acquisitions and partnerships to increase shareholder value.

Beginning in 2024 and continuing into 2025, we have strengthened our organization through the addition of key personnel in the areas of customer service, sales, operations, finance, and plant management, as well as the appointment of new board members and the formation of new business partnerships.

The Company also continues to expand its mining claim portfolio.

These strategic additions enhance our operational capabilities and position the Company to advance its mission of disciplined execution, attentive service, and profitable growth in the critical minerals space.

Following is selected consolidated financial information:

Consolidated statement of operations information

For the years ended

Years Ended December 31,

Costs of revenues

Gross profit (loss)

Total operating expenses

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Income tax expense

$ (1,730,404 )

$ (6,348,287 )

Consolidated balance sheet information

As of December 31,

Working capital

Accumulated deficit

$ (41,149,023 )

$ (39,418,619 )

Total stockholders’ equity

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● Antimony revenue:

34% increase in pounds sold, and

40% increase in average sales price per pound.

o 230% increase in average sales price per pound.

● Zeolite revenue:

9% increase in tons sold, and

9% increase in average sales price per ton.

There was higher demand for antimony products in 2024 compared to 2023 primarily due to a shortage of supply and a shortage of processors, which increased the pounds of antimony we sold in 2024.

This higher demand also increased our average sales price per pound in 2024, which is tied to the market price per pound of antimony that averaged $5.50 in 2023 and $10.44 in 2024.

We sold more zeolite in 2024 compared to 2023 as we increased our production reliability and on-hand inventory balance and improved our on-time delivery of product to our customers during 2024.

Also, our average sales price per ton increased in 2024 compared to 2023 as our price increase became fully effective in early 2024.

Gross Profit (Loss)

Gross profit was $3.5 million in fiscal year 2024 compared to a gross loss of ($3.3 million) in fiscal year 2023.

This increase between the years was primarily due to the following:

Higher average sales price of our antimony products in 2024 versus 2023 as described above in the “Revenues” section,

Improved antimony plant efficiencies with more antimony volume in 2024 compared to 2023, including efficiencies in the areas of labor, utilities, and supplies,

Higher inventory write-downs to net realizable value related to our Mexico operations in 2023 compared to 2024, which was primarily due higher facility processing costs as a result of the low percentage of antimony contained in the ore that was purchased, and

Higher reserve in 2023 compared to 2024 on the receivable related to the refund of import value-added tax (“IVA tax” or “VAT”) in Mexico.

o 8% increase in tons sold, and

o 6% increase in average sales price per ton.

The increase in antimony revenue was primarily driven by continued elevated market demand and reduced supply, which resulted in higher realized pricing during 2025.

The average sales price per pound increased approximately 230% compared to the prior year.

The increase in zeolite revenues was primarily attributable to higher sales volume, driven by strengthened customer relationships, improved supply reliability, and expanded market reach, along with an improvement in realized pricing.

Gross profit was $9.9 million in fiscal year 2025 compared to $3.5 million in fiscal year 2024.

The 185% increase between the years was primarily due to the following:

● Higher realized pricing on antimony sales driven by sustained market demand that significantly increased margins per pound sold,

● Favorable ore input costs on antimony inventory purchased in the first half of 2025 which improved spreads but were partially offset by suppliers charging a higher percentage of prevailing market prices later in the year, and

● Zeolite segment margin expansion resulted from increased sales volumes and improved average selling prices, coupled with lower operating and maintenance costs following substantial nonrecurring repair work performed at the BRZ facility during the first three quarters of 2024.

Operating Expenses

Operating expense increased by $12.5 million in fiscal year 2025 compared to fiscal year 2024 primarily due to:

Increased compensation costs primarily related to the build-out of the Company’s management and operational team to cover our expanded business operations and growth initiatives,

Increased project costs in 2024 related to mining claim purchases in Alaska and Ontario, Canada, preparing a mineral resource and reserve report for BRZ, potential acquisitions, and efforts to obtain government funding and sales.

Increased non-cash stock compensation expense as the Company issued stock grants in 2024 from an equity incentive plan approved by its shareholders at the end of 2023,

Increased board fees in 2024 associated with market pay comparability and adjustments, and

Higher costs in Mexico in 2023 versus 2024 related to contractual expenses and asset retirement obligation expenses.

● Higher non-cash share-based compensation resulting from additional equity awards granted in 2025 following shareholder approval of the Amended and Restated 2023 Equity Incentive Plan, which expanded the shares available under the plan to better align management and shareholder interests and support executive recruitment and retention,

● Increased salaries and employee benefits associated with continued build out of the Company’s management and operational infrastructure to support expanded operations and future growth initiatives, and

● Higher professional fees related to strategic activities, including potential acquisitions, government funding efforts, mining claim activities, and expanded commercial development.

The Company incurred a net loss of $4.3 million for the year ended December 31, 2025 compared to a net loss of $1.7 million in 2024.

Included in the 2025 net loss was $6.7 million of net non-cash items, which consisted primarily of $7.1 million of non-cash share-based compensation expense, $1.3 million of an IVA refund reserve, and $1.2 million of depreciation and amortization expense, partly offset

by $3.3 million of an unrealized gain on an investment in equity securities.

Included in the 2024 net loss was $1.9 million of net non-cash items, which consisted primarily of $0.6 million of non-cash share-based compensation expense and $1.1 million of depreciation and amortization expense.

Working Capital

Working capital increased by $3.5 million at December 31, 2024 compared to December 31, 2023 primarily due to increased cash and cash equivalents, partially offset by increased trade payables and accrued liabilities.

The increase in cash and cash equivalents was primarily related to proceeds received from the sale of our common stock and the exercise of warrants.

Trade payables increased mainly due to the increased cost of antimony ore linked to the increased antimony market price.

The increase in accrued liabilities was primarily related to compensation costs incurred but not paid at December 31, 2024 compared to December 31, 2023.

The increase in net accounts receivable is primarily due to the increase in our average sales price per pound as it is linked to the increased antimony market price.

Working capital increased by $27.9 million to $44.6 million at December 31, 2025, compared to $16.7 million at December 31, 2024.

This increase was driven by a $34.1 million rise in total current assets, primarily consisting of higher cash and cash equivalents, short-term investment securities, accounts receivable, inventories, and short-term note receivable.

The $19.4 million increase in cash, investments, and the note receivable on a combined basis primarily reflects the partial use of proceeds received from common stock issuances and warrant exercises during 2025.

Accounts receivable increased $3.1 million due to higher antimony sales levels and pricing, while inventories increased $11.3 million net as the Company held higher volumes of antimony on hand at a higher cost per pound.

These increases were partially offset by a $6.2 million rise in current liabilities, mainly attributable to higher accounts payable and accrued liabilities.

Accounts payable increased $5.4 million due to greater antimony purchases and suppliers charging a higher percentage of prevailing market prices, and accrued liabilities rose $1.4 million primarily from an increase in accrued compensation.

Inventory balances by segment as of the date indicated was as follows:

As of December 31,

Antimony inventory

Zeolite inventory

Total inventories

Comparison of Financial Information for the years ended December 31, 2025 and 2024

Financial and operational antimony metrics for the years ended December 31, 2024 and 2023 were as follows:

For the years ended

Gross profit (loss) (a)

$ (3,072,839 )

Pounds of antimony sold (a)

Financial and operational antimony metrics were as follows:

Years ended December 31,

Pounds of antimony sold

Average sales price per pound

Average cost per pound

Average gross profit (loss) per pound

Revenue from sales of gold and silver totaled $525,087 and $326,496 and revenue from sales of antimony ore and concentrates totaled $368,627 and $nil for the years ended December 31, 2024 and 2023, respectively, which are excluded from Revenue and Gross Profit (Loss) in the chart above but included in the antimony segment.

Average gross profit per pound

Revenue from sales of gold and silver totaled $519,902 and $525,087, respectively, and revenue from sales of antimony ore and concentrates totaled $nil and $368,627, respectively, for the years ended December 31, 2025 and 2024, which were excluded from Revenue and Gross Profit in the chart above but included in the antimony segment.

Pounds of antimony sold in the chart above excludes the pounds sold related to gold, silver, and ore and concentrates for both years presented.

Antimony revenue increased $5.2 million, or 88%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to higher volume and price, which were both fueled by an increased demand for antimony.

Our average sales price of $7.61 per pound for fiscal year 2024 was lower than the antimony market price of $10.44 per pound for the same period primary due to two factors.

First, our sales price per pound related to the processing of customer-owned antimony ore into antimony metal excludes the ore cost and is therefore lower than the antimony market price per pound.

Second, our sales price per pound is set when a customer orders product, which can be one to two months prior to the product shipping causing our sales price per pound to be lower than the market price during times of rising market prices.

Gross profit increased $6.7 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to cost efficiencies with higher volume in the current year, a higher average sales price per pound in 2024, and higher inventory write-downs and IVA tax receivable reserves in 2023 related to our Mexico operations.

Financial and operational metrics of our zeolite segment for the years ended December 31, 2024 and 2023 were as follows:

For the years ended

Antimony revenue increased $24.3 million, or 219%, to $35.4 million in 2025 compared to $11.1 million in the prior year.

The increase was primarily driven by sustained market demand and reduced supply, which resulted in a 230% increase in the average sales price per pound.

Antimony market prices reached peak levels during the year but moderated during the second half of 2025.

The favorable pricing impact was partially offset by a 3% decline in sales volume, which was primarily attributable to temporary workforce constraints that have since been resolved coupled with the refurbishing of furnaces at our Thompson Falls smelter.

Gross profit increased $6.1 million, or 171%, to $9.7 million in 2025 compared to $3.6 million in 2024.

The increase was primarily attributable to higher average sales prices per pound driven by sustained demand, together with favorable ore input costs on purchases made during the first half of 2025.

These margin improvements were partially offset by suppliers charging a higher percentage of prevailing market prices later in the year, as well as a year-end antimony net realizable value charge and higher IVA tax receivable reserves related to our Mexico operations.

Financial and operational metrics of our zeolite segment were as follows:

Years ended December 31,

Gross profit (loss)

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Average gross profit (loss) per ton

Zeolite revenue increased $0.5 million, or 19%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to:

The increased tons of zeolite sold, which was primarily due to our ability to deliver customer orders more reliably and more timely, and

The increased average sales price per ton, which was mainly related to a price increase that became fully effective in early 2024.

Gross profit decreased by $0.1 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to increased costs related to repairing older machinery and equipment and backup equipment leases, especially during production downtime.

Non-GAAP Financial Measure

In addition to our results determined in accordance with U.S.

GAAP, we believe Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”), a non-GAAP financial measure, is a useful measure of our operating performance because it eliminates non-cash expenses that do not reflect our underlying business performance.

We use this measure to facilitate a comparison of our operating performance on a consistent basis from period to period and to analyze the factors and trends affecting our business.

EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S.

We believe that the use of EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors.

EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S.

Our EBITDA was a loss of ($635,788) for the year ended December 31, 2024, as compared to a loss of ($5,387,063) for the year ended December 31, 2023.

EBITDA by segment was prepared using the policies described in Note 13 of the Notes to Consolidated Financial Statements in this Annual Report.

EBIDTA by segment for the years ended December 31, 2024 and 2023 was as follows:

For the years ended

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss)

Interest expense

Income tax expense

Depreciation and amortization

$ (4,443,771)

For the years ended

Cost of sales

Gross profit (loss)

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss)

Interest expense

Income tax expense

Depreciation and amortization

$ (2,256,162 )

$ (1,411,449 )

For the years ended

Cost of sales

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income (loss)

Interest expense

Depreciation and amortization

For the years ended

Cost of sales

(11,471,044 )

(12,037,939 )

Total operating expenses

Income (loss) from operations

Total other income (expense)

Income tax expense

Income (loss)

Interest expense

Income tax expense

Depreciation and amortization

$ (5,387,063 )

Zeolite revenue increased $0.4 million, or 14%, to $3.4 million in 2025 compared to $2.9 million in 2024.

Revenue growth was the result of an 8% increase in sales volume, driven by strengthened customer relationships, improved supply reliability, and broader customer reach coupled with a 6% improvement in the average sales price per ton.

Gross profit was $0.2 million in 2025 compared to a gross loss of ($0.6 million) 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.

Our BRZ facility incurred significant repair and related costs during the first three quarters of 2024 to address deferred maintenance on older equipment and stabilize operational performance.

Liquidity and Capital Resources

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 positive cash flow to fund its mission.

One method of generating cash is through the sale of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past.

During 2024, the Company generated proceeds from the sale of its common stock, net of issuance costs, of $2.8 million, and $1.5 million through the exercise of warrants.

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.

During 2025, the Company generated $36.7 million of net proceeds from the sale of common stock in “at the market offerings,” $67.6 million of net proceeds from three direct common stock offerings with certain institutional investors, and $5.7 million of proceeds from the exercise of pre-existing common stock warrants.

Total proceeds received by the Company from these capital raising activities in 2025 were $110 million.

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 could also receive funds from the U.S.

In 2025, the Company secured a $19.0 million margin credit line with a national bank, which bears interest at one percent above the base commercial rate.

Borrowings under the facility are secured by the Company’s investment securities held to maturity, specifically its U.S.

Treasury Strips, which are pledged as collateral.

Availability under the margin credit line is subject to customary margin requirements based on the value of the pledged securities.

As of December 31, 2025, the Company had no outstanding borrowings under the facility.

On March 5, 2026, the Company announced that it had been awarded $27.0 million by the U.S.

Department of War under Title III of the Defense Production Act to fund the expansion and modernization of the Company’s domestic antimony production capabilities.

Funds will be awarded to the Company as established project milestones are met.

The Company could also receive additional 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.

However, there is no assurance that further U.S.

Government funding will 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.

Our cash and cash equivalents balance at December 31, 2024 was $18,172,120.

As of December 31, 2025, the Company had cash and cash equivalents of $30.5 million.

We believe that our cash and cash equivalents should be sufficient to fund our operations and meet our working capital, capital expenditure, and contractual obligations for the next 12 months.

2 unchanged sentences

Also, we intend to fund our cash requirements in 2026 with our cash and cash equivalents.

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.

Cash flow information for the years ended December 31, 2024 and 2023 was as follows:

We may also use our available cash to acquire businesses or additional properties.

The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such future cash requirements.

Cash flow information was as follows:

Years Ended December 31,

Cash Flow Information

For the years ended

Net cash provided (used) by operating activities

$ (4,750,026 )

Net cash provided (used) by investing activities

Net cash provided (used) by financing activities

Total net cash flow increase (decrease)

$ (7,163,031 )

Cash flow provided by operating activities improved by $7.0 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to better operational management resulting in a lower net loss, better inventory management, and increased trade payables.

Trade payables increased at December 31, 2024 as compared to December 31, 2023 mainly due to the increased cost of antimony ore linked to the antimony market price.

Cash flow used by investing activities decreased by $1.3 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to less fixed asset purchases and the sale of our personal residence.

See Note 6 and Note 13 of the Notes to Consolidated Financial Statements in this Annual Report for further information.

Cash flow provided by financing activities improved by $5.2 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to proceeds received in 2024 from the sale of the Company’s stock, net of issuance costs, of $2.8 million, and $1.5 million from the exercise of warrants and the payment of a dividend in 2023 of $787,730 to the holders of 1,692,672 shares of Series D Preferred stock.

Net cash (used in) provided by operating activities

Net cash used in investing activities

Net cash provided by financing activities

Net cash used in operating activities was $9.7 million in 2025, compared to net cash provided by operating activities of $2.2 million in 2024.

The use of operating cash in 2025 was primarily driven by increased working capital requirements.

Inventories increased by $12.2 million, reflecting substantially higher levels of antimony inventory on hand.

Of this increase, approximately $0.9 million related to a non-cash net realizable value (“NRV”) adjustment, which is reflected separately within non-cash reconciling items in operating activities.

Processing on $4 million of the antimony inventory at December 31, 2025 started in the first quarter of 2026 due to timing of receipt.

Accounts receivable increased by $3.1 million, primarily due to higher sales pricing.

These uses of cash were partially offset by a $5.4 million increase in accounts payable, which included higher antimony purchases and suppliers charging a greater percentage of prevailing market prices, and a $1.4 million increase in accrued liabilities due to an increase in accrued compensation.

Net cash used in investing activities was $87.4 million in 2025 as compared to net cash used in investing activities of $42 thousand in 2024.

Investing activities in 2025 consisted of $19.9 million for purchases of U.S.

Treasury Strips, $37.2 million for purchases of an investment in equity securities, $27.8 million in capital expenditures, and the issuance of a $2.5 million note receivable.

Our capital expenditures included $5.0 million for the purchase of the Fostung Properties, approximately $17.1 million of construction in progress expenditures primarily associated with the expansion of our existing smelting operations located in Thompson Falls, Montana that will largely be reimbursed with proceeds from the approved $27.0 million award from the U.S.

Department of War, and $5.7 million of other additions, which included equipment purchases for BRZ, the purchase of residential properties in Thompson Falls, Montana, and the acquisition of residential and storage facilities in Fairbanks, Alaska.

Net cash provided by financing activities was $109.5 million in 2025 as compared to $4.1 million of net cash provided by financing activities in 2024.

Significant financing activities in 2025 included $36.7 million of net proceeds received from the sale of common stock in “at the market offerings”, $67.6 million of net proceeds received from three direct common stock offerings with certain institutional investors, and $5.7 million of proceeds received from the exercise of pre-existing common stock warrants.

Total proceeds received by the Company for these capital raising activities in 2025 were $110 million.

Off-Balance Sheet Arrangements

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Critical Accounting Estimates

We have the following critical accounting estimates:

In connection with the preparation of our consolidated financial statements in conformity with United States generally accepted accounting principles (“U.S.

GAAP”), we are required to make estimates and assumptions about future events and apply judgments that affect the reported amounts of assets, liabilities, sales, expenses and the related disclosures.

Predicting future events is inherently an imprecise activity and as such requires the use of judgment.

We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared.

On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with U.S.

However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

Management believes the accounting estimates discussed below are the most critical because they require management’s most difficult, subjective or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain.

Impairment of Long-lived Assets

The Company reviews and evaluates the net carrying value of its long-lived assets for impairment upon the occurrence of events or changes in circumstances that indicate that the related carrying amounts may not be recoverable.

A test for recoverability is performed based on the estimated undiscounted future cash flows that will be generated from operations at each property and the estimated salvage value of asset.

A test for recoverability is performed based on the estimated undiscounted future cash flows that will be generated from operations at each property and the estimated salvage value of the assets.

There are many assumptions underlying future cash flows that are subject to significant risks and uncertainties, which include the estimated value of the assets.

3 unchanged sentences

The Company will involve a third-party expert if needed.

However, it is possible that changes could occur in the near term that could adversely affect the estimates of salvage values and future cash flows to be generated from operating assets resulting in an impairment loss.

The asset retirement obligation in our Consolidated Balance Sheet is based on an estimate of future costs to reclaim properties and retire fixed assets as required by permits, government regulations, and lease or other contractual requirements upon cessation of our operations.

Determination of any amounts included in the fair value of the asset retirement obligation can change periodically as the calculation of the fair value of the asset retirement obligation is based upon numerous estimates and assumptions, including, among others, future retirement costs, future inflation rate, and the Company’s credit-adjusted risk-free interest rate.

However, it is possible that changes could occur in the near term that could adversely affect estimates of salvage values and future cash flows to be generated from operating assets resulting in an impairment loss.

Asset Retirement Obligations

The asset retirement obligations included in our Consolidated Balance Sheet are based on estimates of future costs to reclaim properties and retire fixed assets as required by permits, government regulations, and lease or other contractual requirements upon cessation of our operations.

Determination of any amounts included in the fair value of asset retirement obligations can change periodically as the calculation of the fair value of asset retirement obligations is based upon numerous estimates and assumptions, including, among others, future retirement costs, future inflation rate, and the Company’s credit-adjusted risk-free interest rate.

Also, there are uncertainties associated with the nature, timing, and extent of costs associated with asset retirement obligations, including, among others, the extent of environmental contamination, revisions to laws and regulations by regulatory authorities, and changes in remediation technology.

As a result, the ultimate cost as well as the timing of the retirement obligation could change in the future.

The Company continually reviews its asset retirement obligations for indications that its asset retirement obligation cost or timing has changed and, when indications are present, recalculates its asset retirement obligation.

Also, there are many technical components of an asset retirement obligation.

Therefore, the Company will involve a third-party expert if needed to recalculate its asset retirement obligations.

However, actual costs to reclaim and retire property and fixed assets when we cease operations may differ from our estimates.

The Company continually reviews its asset retirement obligations for indications that estimated costs or timing have changed and, when indications are present, recalculates its asset retirement obligation.

When calculating an additional asset retirement obligation liability resulting from upward revisions in estimated retirement costs, management compares the revised undiscounted cash flows to the most recent inflation-adjusted undiscounted cash flow estimate underlying the existing asset retirement obligation.

Only the incremental increase is recognized as a new asset retirement obligation layer and measured at fair value using an expected present value technique, reflecting updated assumptions regarding future cash flows, inflation, and discount rate.

The estimation of asset retirement obligations requires significant judgment and involves numerous complex technical assumptions, including, among others, the timing, method, scope, and cost of retirement activities, as well as applicable regulatory and environmental requirements.

As appropriate, the Company may engage qualified third-party specialists to assist in the evaluation and remeasurement of its asset retirement obligations.

Actual costs incurred to reclaim and retire property and fixed assets upon cessation of operations may differ materially from estimated amounts due to, among other reasons, changes in laws and regulations, site conditions, inflation, labor and material costs, or remediation techniques.

Share-based Compensation

The Company records compensation costs related to stock-based awards in accordance with U.S.

GAAP, whereby the Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award.

Compensation cost is recognized on a straight-line basis over the requisite service period of the award.

Where necessary, the Company utilizes the Black-Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of highly subjective assumptions including, among others:

the expected option life, the risk-free rate, the dividend yield, the volatility of the Company’s stock price and an assumption for employee forfeitures.

The risk-free rate is based on the U.S.

Treasury bill rate at the date of the grant with maturity dates approximately equal to the expected term of the option.

The Company has not historically issued any dividends and does not expect to in the near future.

Changes in any of these subjective input assumptions can materially affect the fair value estimates and the resulting stock-based compensation recognized.

In addition, the Company’s stock plan includes awards that vest based on performance criteria.

Stock-based compensation expense for these awards is estimated quarterly, including adjustments to previous recognized expense, based on anticipated achievement of performance criteria.

The quarterly estimated vesting percentage reflects management’s assessment of progress in accomplishing defined objectives.

Upon vesting, current period expense is adjusted based on the actual achievement of performance criteria.

Given the subjective nature of these assumptions and estimates, changes in market conditions, employee behavior, or our stock price, among others, could result in materially different stock-based compensation expense in future periods.

Quantitative and Qualitative Disclosures about Market Risk

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What changed 10-K

Item 7. Management’s Discussion and Analysis