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Item 9A. Controls and Procedures

2022-03-31 compared with 2021-03-31 · 837 added, 2149 removed, 152 unchanged (95% of the section changed)

1 unchanged sentence

Evaluation of disclosure controls and procedures

end of the period covered by this Annual Report on Form 10-K, an

evaluation was carried out under the supervision of and with the

participation of our management, including the Principal Executive

Officer and the Principal Accounting Officer of the effectiveness

of the design and operations of our disclosure controls and

procedures (as defined in Rule 13a –

15(e) and Rule 15d

15(e) under the Exchange Act) as of the end of the period

covered by this report.

Based on that evaluation, the Principal

Executive Officer and the Principal Accounting Officer have

concluded that our disclosure controls and procedures were not

effective in ensuring that:

(i) information required to be

disclosed by the Company in reports that it files or submits to the

Securities and Exchange Commission under the Exchange Act is

recorded, processed, summarized, and reported within the time

periods specified in applicable rules and forms and (ii) material

information required to be disclosed in our reports filed under the

Exchange Act is accumulated and communicated to our management,

including our Interim CEO and Interim President, as appropriate, to

allow for accurate and timely decisions regarding required

Disclosure controls

and procedures were not effective due primarily to material

weaknesses in the Company’s internal control of financial

reporting as discussed below.

At the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out under the supervision of and with the participation of our management, including the Principal Executive Officer and the Principal Financial Officer of the effectiveness of the design and operations of our disclosure controls and procedures (as defined in Rule 13a – 15(e) and Rule 15d – 15(e) under the Exchange Act) as of the end of the period covered by this report.

Based on that evaluation, the Principal Executive Officer and the Principal Financial Officer have concluded that our disclosure controls and procedures were not effective in ensuring that:

(i) information required to be disclosed by the Company in reports that it files or submits to the Securities and Exchange Commission under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow for accurate and timely decisions regarding required disclosure.

Disclosure controls and procedures were not effective due primarily to material weaknesses in the Company’s internal control of financial reporting as discussed below.

Internal control over financial reporting

Management's annual report on internal control over financial

management of USAC is responsible for establishing and maintaining

adequate internal control over financial reporting.

This internal

control system has been designed to provide reasonable assurance to

our management and Board of Directors regarding the preparation and

fair presentation of our published financial

internal control systems, no matter how well designed, have

inherent limitations.

Therefore, even those systems determined to

be effective can provide only reasonable assurance with respect to

financial statement preparation and presentation.

management of USAC has assessed the effectiveness of our internal

control over financial reporting as of December 31, 2020.

this assessment, we used the criteria for effective internal

control over financial reporting described in Internal

Control-Integrated Framework (2013), issued by the Committee of

Sponsoring Organizations of the Treadway Commission

result of our assessment, we concluded that we have material

weaknesses in our internal control over financial reporting as of

December 31, 2020.

Management’s annual report on internal control over financial reporting

The management of USAC is responsible for establishing and maintaining adequate internal control over financial reporting.

This internal control system has been designed to provide reasonable assurance to our management and Board of Directors regarding the preparation and fair presentation of our published financial statements.

All internal control systems, no matter how well designed, have inherent limitations.

Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The management of USAC has assessed the effectiveness of our internal control over financial reporting as of December 31, 2020.

To make this assessment, we used the criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

As a result of our assessment, we concluded that we have material weaknesses in our internal control over financial reporting as of December 31, 2021.

These weaknesses are as follows:

design of internal control over the preparation of the financial

statements and financial reporting processes;

monitoring of internal controls over significant accounts and

processes including controls associated with domestic and Mexican

subsidiary operations and the period-end financial reporting

absence of proper segregation of duties within significant

processes and ineffective controls over management oversight,

including antifraud programs and controls.

aware of these material weaknesses and will develop procedures to

ensure that independent review of material transactions is

The Principal Executive Officer will develop internal

control measures to mitigate the inadequate documentation of

controls and the monitoring of internal controls over significant

accounts and processes including controls associated with the

period-ending reporting processes, and to mitigate the segregation

of duties within significant accounts and processes and the absence

of controls over management oversight, including antifraud programs

and controls.

to consult with independent experts when complex transactions are

entered into.

these material weaknesses exist, management has concluded that our

internal control over financial reporting as of December 31, 2020,

is ineffective.

Inadequate design of internal control over the preparation of the financial statements and financial reporting processes;

Inadequate monitoring of internal controls over significant accounts and processes including controls associated with domestic and Mexican subsidiary operations and the period-end financial reporting process;

The absence of proper segregation of duties within significant processes and ineffective controls over management oversight, including antifraud programs and controls.

We are aware of these material weaknesses and will develop procedures to ensure that independent review of material transactions is performed.

The chief financial officer will develop internal control measures to mitigate the inadequate documentation of controls and the monitoring of internal controls over significant accounts and processes including controls associated with the period-ending reporting processes, and to mitigate the segregation of duties within significant accounts and processes and the absence of controls over management oversight, including antifraud programs and controls.

We plan to consult with independent experts when complex transactions are entered into.

Because these material weaknesses exist, management has concluded that our internal control over financial reporting as of December 31, 2021, is ineffective.

Changes in internal control over financial reporting

were no changes in internal control over financial reporting for

the quarter ended December 31, 2020.

Directors, Executive Officers, Promoters and Control Persons,

Compliance with Section

16(a) of the Exchange Act

Identification of directors and executive officers at December 31,

2020, is as follows:

There were no changes in internal control over financial reporting for the quarter ended December 31, 2021.

Item 10 Directors, Executive Officers, Promoters and Control Persons, Compliance with Section 16(a) of the Exchange Act

Identification of directors and executive officers at December 31, 2021, is as follows:

Expiration of Term

Annual meeting

Interim President & Director

President & Director

Annual meeting

Secretary, Controller,

Chief Financial Officer

As contracted

Secretary, Controller, and Treasurer

Annual meeting

and Treasurer

Annual meeting

3 unchanged sentences

Annual meeting

Business Experience of Directors and Executive

Lawrence has experience in applied

physics, mining, refining, excavation, electricity, electronics,

and building contracting.

He graduated from the University of Idaho

in 1994 with a degree in physics, and worked for the Physics

Department at the University of Idaho for a period of 10 years.

has also worked as a building contractor and for USAC at the

smelter and laboratory at Thompson Falls, for USAMSA in the

construction and operation of the USAMSA smelter in Mexico, and for

Antimonio de Mexico, S.

at the San Miguel Mine in

Baitis graduated from the University of

Oregon in 1971 with a B.S.

in Geology, and was awarded a Ph.

Geology in 1976.

He has 35 years of experience as an exploration

geologist in the United States, Canada, Central America, and

Baitis is experienced in numerous geologic environments

and terrains, and has been involved in all phases of exploration,

ranging from field geologist, consultant, management, and

acquisition team director.

Blaise Aguirre .

Blaise Aguirre, MD joined the Board of

Directors of United States Antimony Corp.

on August 14, 2019, to

replace a Director that retired for medical reasons.

his Medical Doctor’s degree in 1989 from the University of

the Witwatersrand, Johannesburg, South Africa, and performed his

residency at Boston University School of Medicine from 1991 to

He is an Assistant Professor of Psychiatry at Harvard Medical

School and he is the founding Medical Director of 3East at McLean

Christopher Park

Annual meeting

Business Experience of Directors and Executive Officers

Lawrence –President and Director - Mr.

Lawrence has experience in applied physics, mining, refining, excavation, electricity, electronics, and building contracting.

He graduated from the University of Idaho in 1994 with a degree in physics, and worked for the Physics Department at the University of Idaho for a period of 10 years.

He has also worked as a building contractor and for USAC at the smelter and laboratory at Thompson Falls, for USAMSA in the construction and operation of the USAMSA smelter in Mexico, and for Antimonio de Mexico, S.

at the San Miguel Mine in Mexico.

Gustavsen –Chief Executive Officer - Mr.

Gustavsen graduated from Rutgers University in 1970 with a BS in chemistry and started work for Harshaw Chemical (purchased by Amspec Chemical Corporation), a major producer of antimony trioxide.

Gustavsen took engineering courses from 1976 through 1980, and became president and treasurer of the company in 1983.

He was to promoted CEO in 1990.

Gustavsen designed a new type of production furnace for antimony trioxide that eventually produced 20 million pounds of antimony trioxide per year.

Gustavsen is conversant in Spanish, Chinese, and other languages, and travelled to many countries as part of his duties as president of Amspec Chemical Corporation.

Gustavsen came to work at United States Antimony Corporation in November of 2011.

Stopher – Chief Financial Officer - Mr.

Stopher has 30 years of experience in accounting and finance.

Stopher is the Managing Partner of Palouse Advisory Partners, LLC, providing Chief Financial Officer (“CFO”) services to clients.

Stopher has developed strategies to implement financial management systems, internal control policies and procedures, financial reporting and modeling for numerous small-cap companies.

Stopher was appointed Chief Financial Officer of Star Gold Corp., a US-based company quoted via the OTC Markets, on October 20, 2010, and still holds such position.

Stopher is currently also CFO for Epilog Imaging Systems, Inc.

and President of National Silver-Lead Company.

Stopher was previously the CFO of Zenlabs Holdings, Inc.

Stopher holds a Bachelor’s degree from Washington State University in Business Administration – Accounting.

He started his career in public accounting with Langlow Tolles & Company, PS, a regional CPA firm based in Tacoma, WA and has worked in various accounting and finance positions of leadership including startups, reorganizations and mature companies.

Stopher is also a Certified Financial Modeling Valuation Analyst.

Alicia Hill – Corporate Secretary/Treasurer/Controller - Ms.

Hill was hired by the Company in 2006 as an accounting assistant, and was eventually promoted to chief accountant responsible for the recording of transactions for three companies.

In 2011, she was appointed Company Controller, Secretary, and Treasurer.

Hill has guided the Company through the listing on the NYSE-MKT, in the addition of a new division in Mexico, and has been the liaison with the Company’s auditors through a progressively complicated reporting process.

Blaise Aguirre – Director - Blaise Aguirre, MD joined the Board of Directors of United States Antimony Corp.

on August 14, 2019, to replace a Director that retired for medical reasons.

He received his Medical Doctor’s degree in 1989 from the University of the Witwatersrand, Johannesburg, South Africa, and performed his residency at Boston University School of Medicine from 1991 to 1994.

He is an Assistant Professor of Psychiatry at Harvard Medical School and he is the founding Medical Director of 3East at McLean Hospital.

Aguirre is fluent in Spanish and lectures worldwide.

He was elected to the Board at Investors Capital Holdings, Ltd in

2011 and remained on the Board until it was sold to RCAP.

on the boards of various privately held companies.

He developed and

maintains enduring relationships with institutional money managers,

venture capitalists, Angel investors and developed an expertise as

a small cap stock analyst as a broker with series 7 and 63

securities licenses.

Hill was hired by the Company in 2006 as an

accounting assistant, and was eventually promoted to chief

accountant responsible for the recording of transactions for three

In 2011, she was appointed Company Controller,

Secretary, and Treasurer.

Hill has guided the Company through

the listing on the NYSE-MKT, in the addition of a new division in

Mexico, and has been the liaison with the Company’s auditors

through a progressively complicated reporting process.

He was elected to the Board at Investors Capital Holdings, Ltd in 2011 and remained on the Board until it was sold to RCAP.

He sits on the boards of various privately held companies.

He developed and maintains enduring relationships with institutional money managers, venture capitalists, Angel investors and developed an expertise as a small cap stock analyst as a broker with series 7 and 63 securities licenses.

Baitis - Director - Mr.

Baitis graduated from the University of Oregon in 1971 with a B.S.

in Geology, and was awarded a Ph.

in Geology in 1976.

He has 35 years of experience as an exploration geologist in the United States, Canada, Central America, and Mexico.

Baitis is experienced in numerous geologic environments and terrains, and has been involved in all phases of exploration, ranging from field geologist, consultant, management, and acquisition team director.

Lloyd Joseph Bardswich - Mr.

Bardswich has extensive

experience in mining, mining engineering, management, drilling,

metallurgy and plant design.

He is a registered professional mining

engineer, can served as a QP (qualified person) regarding reporting

to NI43-101 standards and has worked as a Shift Boss, Mine Safety

Engineer, Mine Foreman, Mine Manager, and Mining

Gustaven graduated from Rutgers

University in 1970 with a BS in chemistry and started work for

Harshaw Chemical (purchased by Amspec Chemical Corporation), a

major producer of antimony trioxide.

Gustaven took engineering

courses from 1976 through 1980, and became president and treasurer

of the company in 1983.

He was promoted CEO in 1990.

designed a new type of production furnace for antimony trioxide

that eventually produced 20 million pounds of antimony trioxide per

Gustaven is conversant in Spanish, Chinese, and other

languages, and travelled to many countries as part of his duties as

president of Amspec Chemical Corporation.

Gustaven came to work

at United States Antimony Corporation in November of

not aware of any involvement by our directors or executive officers

during the past five years in legal proceedings that are material

to an evaluation of the ability or integrity of any director or

executive officer.

Board Meetings and Committees Our Board of Directors held

four (4) regular meetings during the 2020 calendar year.

incumbent director attended all of the meetings held during the

2020 calendar year, in the aggregate, by the Board and each

committee of the Board of which he was a member.

Board of Directors established an Audit Committee on December 10,

It consisted of two members at December 31, 2020, Jeffrey

Wright, and Hart Baitis.

None of the Audit Committee members are

involved in our day-to-day financial management.

Jeffrey Wright was

considered a financial expert.

Jeffrey Wright resigned from the

board effective January 1, 2021.

Craig Thomas resigned from the

board on January 13, 2021.

2011, the Board also established a Compensation Committee and a

Nominating Committee.

Board Member Compensation Following is a summary of fees,

cash payments, stock awards, and other reimbursements to Directors

during the year ended December 31, 2020:

$ 20,000  

$ 10,000  

$ 110,000  

Section 16(a)

Beneficial Ownership Reporting Compliance Section 16(a) of

the Securities Exchange Act of 1934 requires our directors and

executive officers and the holders of 10% or more of our common

stock to file reports of ownership and changes in ownership with

the Securities and Exchange Commission.

Officers, directors and

stockholders holding more than 10% of our common stock are required

by the regulation to furnish us with copies of all Section 16(a)

forms they have filed.

Based solely on our review of copies of

Forms 3, 4 and 5 furnished to us, Mr.

Bardswich has extensive experience in mining, mining engineering, management, drilling, metallurgy and plant design.

He is a registered professional mining engineer, can served as a QP (qualified person) regarding reporting to NI43-101 standards and has worked as a Shift Boss, Mine Safety Engineer, Mine Foreman, Mine Manager, and Mining Consultant.

Christopher Park - Christopher Park was selected by the company as an additional director effective June 23, 2021.

Park is a Chartered Professional Accountant (CPA, CGA) with several years of executive financial management experience within the mining industry which encompasses financial reporting, internal controls, taxation and treasury management with companies ranging from grassroots exploration to mine development to production.

He has held a number of positions with mining companies which include Corporate Controller and Chief Financial Officer positions.

Most recently he was Chief Financial Officer of Northern Vertex Mining Corp.

during the period the Company constructed the Moss Mine and transitioned to commercial production.

Park is currently the Chief Financial Officer for Northern Graphite Corporation, a company traded on the TSX-V (ticker symbol:

For purposes of SEC compliance, Mr.

Park is considered a financial expert and is the chairman of the Company’s audit committee.

We are not aware of any involvement by our directors or executive officers during the past five years in legal proceedings that are material to an evaluation of the ability or integrity of any director or executive officer.

Board Meetings and Committees Our Board of Directors held five (5) regular meetings during the 2021 calendar year.

Each incumbent director attended all of the meetings held during the 2021 calendar year, in the aggregate, by the Board and each committee of the Board of which he was a member.

Our Board of Directors established an Audit Committee on December 10, 2011.

It consisted of two members at December 31, 2020, Jeffrey Wright, and Hart Baitis.

None of the Audit Committee members are involved in our day-to-day financial management.

Jeffrey Wright was considered a financial expert.

Jeffrey Wright resigned from the board effective January 1, 2021.

Craig Thomas resigned from the board on January 13, 2021.

The audit committee is currently comprised of Christopher Park, Hart Baitis and L.

Joseph Bardswich.

During 2011, the Board also established a Compensation Committee and a Nominating Committee.

Board Member Compensation Following is a summary of fees, cash payments, stock awards, and other reimbursements to Directors during the year ended December 31, 2021:

Directors Compensation

Name and Principal Position

paid in Stock

Total Fees, Awards and Other Compensation

Russell Lawrence, President

Hartmut, Baitis, Director

Blaise Aguirre, Director

Joseph Bardswich, Director

Christopher Park, Director

Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Securities Exchange Act of 1934 requires our directors and executive officers and the holders of 10% or more of our common stock to file reports of ownership and changes in ownership with the Securities and Exchange Commission.

Officers, directors and stockholders holding more than 10% of our common stock are required by the regulation to furnish us with copies of all Section 16(a) forms they have filed.

Based solely on our review of copies of Forms 3, 4 and 5 furnished to us, Mr.

Hart Baitis and Mr.

Lawrence did not file timely Forms 3, 4 or Form 5 reports during

2019 and 2018.

Russell Lawrence did not file timely Forms 3, 4 or Form 5 reports during 2019 and 2018.

Code of Ethics

Company has adopted a Code of Ethics that applies to the Company's

executive officers and its directors.

The Company will provide,

without charge, a copy of the Code of Ethics on the written request

of any person addressed to the Company at:

United States Antimony

Corporation, P.O.

The Company has adopted a Code of Ethics that applies to the Company’s executive officers and its directors.

The Company will provide, without charge, a copy of the Code of Ethics on the written request of any person addressed to the Company at:

United States Antimony Corporation, P.O.

Box 643, Thompson Falls, MT 59873.

1 unchanged sentence

Summary Compensation Table

Securities and Exchange Commission requires the following table

setting forth the compensation paid by USAC to its principal

executive officer for fiscal years ended December 31, 2020 and

Name and Principal Position

Stock Awards (2)

Compensation for

all executive officers, except for the President/CEO position, is

recommended to the compensation committee of the Board of Directors

by the President/CEO.

The compensation committee makes the

recommendation for the compensation of the President/CEO.

compensation committee has identified a peer group of mining

companies to aid in reviewing the President’s compensation

recommendations for executives, and for reviewing the compensation

of the President/CEO.

The full Board approves the compensation

amounts recommended by the compensation committee.

Currently, the

executive managements’

compensation only includes base salary

and health insurance.

The Company does not have annual performance

based salary increases, long term performance based cash

incentives, deferred compensation, retirement benefits, or

disability benefits.

Interim President receives restricted stock awards for their

services as Board members.

were not any outstanding equity awards or plan based awards to

officers or directors as of December 31, 2020.

John Lawrence,

previous President and Chairman, exercised his warrants at a price

of $0.25 per share for 250,000 shares on March 20, 2020.

receipt of $62,500 from the warrants was used to reduce advances

payable to Mr.

Item 12 Security Ownership of Certain Beneficial Owners and

following table sets forth information regarding beneficial

ownership of our common stock as of March 26, 2021 by (i) each

person who is known by us to beneficially own more than 5% of our

Series B, C, and D preferred stock or common stock;

our executive officers and directors;

and (iii) all of our

executive officers and directors as a group.

Unless otherwise

stated, each person's address is c/o United States Antimony

Corporation, P.O.

The Securities and Exchange Commission requires the following table setting forth the compensation paid by USAC to its principal executive officer for fiscal years ended December 31, 2021 and 2020.

INSERT NEW TABLE

Compensation for all executive officers, except for the President/CEO position, is recommended to the compensation committee of the Board of Directors by the President/CEO.

The compensation committee makes the recommendation for the compensation of the President/CEO.

The compensation committee has identified a peer group of mining companies to aid in reviewing the President’s compensation recommendations for executives, and for reviewing the compensation of the President/CEO.

The full Board approves the compensation amounts recommended by the compensation committee.

Currently, the executive managements’ compensation only includes base salary and health insurance.

The Company does not have annual performance-based salary increases, long term performance-based cash incentives, deferred compensation, retirement benefits, or disability benefits.

The President receives restricted stock awards for his services as Board members.

There were not any outstanding equity awards or plan based awards to officers or directors as of December 31, 2021.

John Lawrence, previous President and Chairman, exercised his warrants at a price of $0.25 per share for 250,000 shares on March 20, 2020.

The receipt of $62,500 from the warrants was used to reduce advances payable to Mr.

Item 12 Security Ownership of Certain Beneficial Owners and Management

The following table sets forth information regarding beneficial ownership of our common stock as of March 26, 2021 by (i) each person who is known by us to beneficially own more than 5% of our Series B, C, and D preferred stock or common stock;

(ii) each of our executive officers and directors;

and (iii) all of our executive officers and directors as a group.

Unless otherwise stated, each person’s address is c/o United States Antimony Corporation, P.O.

Box 643, 47 Cox Gulch, Thompson Falls, Montana 59873.

Title of Class

Name and Address of Beneficial Owner

 Amount and Nature of Beneficial Ownership

Percent of Class (1)

Percent of all Voting Stock

Mineral Company P.O.

Box 3800 Santa Barbara, CA 93130

750,000  

Woods 59 Penn Circle West Penn Plasa Apts.

Pittsburgh, PA

Warren A Evans 69 Ponfret Landing Road Brooklyn, CT

Robinson 1007 Spruce Street, 1st flor Philadelphia, PA

Series C Preferred Shareholders as a Group

177,904  

4,496,350  

495,897  

441,978  

17,688  

Directors and Executive Officers as a Group

5,451,913  

1,590,672  

102,000  

58,333  

Series D Preferred Shareholders as a Group

1,751,005  

Stock and Preferred Stock w/voting rights

Directors and Executive Officers as a Group

5,451,913  

Stock and Preferred Stock w/voting rights

Preferred Shareholders that are officers or directors

1,751,005  

and Preferred Voting Stock

7,202,918  

Ownership is determined in accordance with the rules of the

Securities and Exchange Commission and generally includes voting or

investment power with respect to securities.

Shares of common stock

subject to options or warrants currently exercisable or

convertible, or exercisable or convertible within 60 days of March

26, 2021, are deemed outstanding for computing the percentage of

the person holding options or warrants but are not deemed

outstanding for computing the percentage of any other person.

Percentages are based on a total of 108 ,994,999 shares of common stock,

750,000 shares of Series B Preferred Stock, 177,904 shares of

Series C Preferred Stock, and 1,751,005 shares of Series D

Preferred Stock outstanding on December 31, 2020.

stock of 77,878,666 shares is a total of all the common stock

issued, and all of the Series C and Series D Preferred Stock

outstanding at December 31, 2020.

outstanding Series C and Series D preferred shares carry voting

rights equal to the same number of shares of common

Certain Relationships and Related Transactions

below are transactions during the last two years to which we are a

party and in which any director, executive officer or beneficial

owner of five percent (5%) or more of any class of our voting

securities or relatives of our directors, executive officers or

five percent (5%) beneficial owners has a direct or indirect

material interest.

January 2019, the Company issued Daniel Parks, the Company’s

Prior Chief Financial Officer, 200,000 shares of the

Company’s common stock with a fair value of $136,000 to

retain his services.

During the year ended December 31, 2020, the Company awarded, but

did not issue, common stock with a value of $110,000 to its Board

of Directors as compensation for their services as

directors.  In connection with the issuances, the Company

recorded $110,000 in director compensation expense and accrued

common stock payable.

In June 2020, the Company issued the Board members 295,463 shares

of the Company’s common stock for services provided during

2019 which was accrued at December 31, 2019, with a value

During the years ended December 31, 2019, the Company awarded but

did not issue, common stock with a value of $134,375 to its Board

of Directors as compensation for their services as

directors.  In connection with the issuances, the Company

recorded $134,375 in director compensation expense and accrued

common stock payable.

Company’s previous President and Chairman, John Lawrence,

rented equipment to the Company and charged the Company for lodging

and meals provided to consultants, customers and other parties by

an entity that Mr.

Insert new table as of 3/28/22

Beneficial Ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities.

Shares of common stock subject to options or warrants currently exercisable or convertible, or exercisable or convertible within 60 days of March 28, 2021, are deemed outstanding for computing the percentage of the person holding options or warrants but are not deemed outstanding for computing the percentage of any other person.

Percentages are based on a total of 106,240,361 shares of common stock, 750,000 shares of Series B Preferred Stock, 177,904 shares of Series C Preferred Stock, and 1,692,672 shares of Series D Preferred Stock outstanding on December 31, 2021.

Total voting stock of 108,110,937 shares is a total of all the common stock issued, and all of the Series C and Series D Preferred Stock outstanding at December 31, 2021.

Includes 4,295,350 shares of common stock and no stock purchase warrants.

The outstanding Series C and Series D preferred shares carry voting rights equal to the same number of shares of common stock.

Item 13 Certain Relationships and Related Transactions

Described below are transactions during the last two years to which we are a party and in which any director, executive officer or beneficial owner of five percent (5%) or more of any class of our voting securities or relatives of our directors, executive officers or five percent (5%) beneficial owners has a direct or indirect material interest.

During the year ended December 31, 2020 and 2019, the Company awarded, but did not issue, common stock with a value of $110,000 and $134,375, respectively, to its Board of Directors as compensation for their services as directors.

In connection with the issuances, the Company recorded $110,000 and $134,375, respectively, in director compensation expense and accrued common stock payable.

During the years ended December 31, 2020 and 2019, the Company issued the Board members 295,463 and 330,183 shares, respectively, of the Company’s common stock for services provided during the previous year which was accrued at December 31, 2019 and 2018.

The Company’s previous President and Chairman, John Lawrence, rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr.

Lawrence owns.

The amount due to Mr.

of December 31, 2020 and 2019 was $171,017 and $156,974,

respectively.

Lawrence as of December 31, 2020 and 2019 was $171,017 and $156,974, respectively.

Expenses paid to Mr.

Lawrence for the years ended

December 31, 2020 and 2019 were $1,533 and $9,799,

2019, John Lawrence made advances to the Company totaling $227,200,

of which $170,985 had been repaid as of December 31, 2020, leaving

an advance payable of $56,215.

Gustaven, Interim CEO,

advanced the Company $10,200 during 2019, of which $10,000 had been

repaid as of December 31, 2020, leaving a balance of

Lawrence for the years ended December 31, 2020 and 2019 were $1,533 and $9,799, respectively

During 2019, John Lawrence made advances to the Company totaling $227,200, of which $170,985 had been repaid as of December 31, 2020, leaving a note balance of $56,215.

Gustavsen, CEO, advanced the Company $10,200 during 2019, of which $10,000 had been repaid as of December 31, 2020, leaving a balance of $200.

Item 14 Principal Accountant Fees and Services

Company's Board of Directors and audit committee reviews and

approves audit and permissible non-audit services performed by

Assure CPA (formerly DeCoria, Maichel & Teague P.S.), as well

as the fees charged by Assure CPA for such services.

In its review

of non-audit service fees and its appointment of Assure CPA as the

Company's independent accountants, the Board of Directors

considered whether the provision of such services is compatible

with maintaining Assure CPA independence.

All of the services

provided and fees charged by Assure CPA in 2020 were pre-approved

by the Board of Directors and its audit committee.

aggregate fees billed by Assure CPA for professional services for

the audit of the annual financial statements of the Company and the

reviews of the financial statements included in the Company's

quarterly reports on Form 10-Q for 2020 and 2019 were $122,500 and

$118,998, respectively, net of expenses.

The Company’s Board of Directors and audit committee reviews and approves audit and permissible non-audit services performed by Assure CPA, LLC., as well as the fees charged by Assure CPA for such services.

In its review of non-audit service fees and its appointment of Assure CPA as the Company’s independent accountants, the Board of Directors considered whether the provision of such services is compatible with maintaining Assure CPA independence.

All of the services provided and fees charged by Assure CPA in 2021 were pre-approved by the Board of Directors and its audit committee.

The aggregate fees billed by Assure CPA for professional services for the audit of the annual financial statements of the Company and the reviews of the financial statements included in the Company’s quarterly reports on Form 10-Q for 2021 and 2020 were $125,980 and $122,500, respectively, net of expenses.

Audit-Related Fees

were no other fees billed by Assure CPA during the last two fiscal

years for assurance and related services that were reasonably

related to the performance of the audit or review of the Company's

financial statements and not reported under "Audit Fees"

aggregate fees billed by Assure CPA during the last two fiscal

years for professional services rendered by Assure CPA for tax

compliance for 2020 and 2019 were $12,100 and $11,833,

respectively.

There were no other fees billed by Assure CPA during the last two fiscal years for assurance and related services that were reasonably related to the performance of the audit or review of the Company’s financial statements and not reported under “Audit Fees” above.

The aggregate fees billed by Assure CPA during the last two fiscal years for professional services rendered by Assure CPA for tax compliance for 2021 and 2020 were $11,500 and $12,100, respectively.

All Other Fees

were $1,123 in other fees billed by Assure CPA during 2020 and none

There were $9,965 in other fees billed by Assure CPA during 2021 and $1,123 during 2020.

Exhibits and Reports on Form 8-K

Incorporation of USAC, filed as an exhibit to USAC's Form 10-KSB

for the fiscal year ended December 31, 1995 (File

No.001-08675), are incorporated herein by this

Restated Bylaws of USAC, filed as an exhibit to amendment No.

USAC's Form SB-2 Registration Statement (Reg.

333-45508) are

incorporated herein by this reference.

Correction of Restated Articles of Incorporation of

Amendment to the Articles of Incorporation of United States

Antimony Corporation, filed as an exhibit to USAC's Form 10-QSB for

the quarter ended September 30, 2002 (File No.

001-08675), are

incorporated herein by this reference.

Key Employees 2000

Stock Plan, filed as an exhibit to USAC's Form S-8 Registration

Statement filed on March 10, 2000 (File No.

333-32216) is

incorporated herein by this reference.

filed with USAC's Annual Report on Form 10-KSB for the year ended

December 31, 1995 (File No.

001-08675), are incorporated herein by

this reference:

Yellow Jacket

Venture Agreement

Agreement Between

Excel-Mineral USAC and Bobby C.

Columbia-Continental

Lease Agreement Revision

Agreement with Excel Mineral Company

Assignment of Lease (Geosearch)

B Stock Certificate to Excel-Mineral Company, Inc.

Division Order and

Purchase and Sale Agreement

Inventory and Sales

settlement agreement between Bobby C.

Hamilton and United States

Antimony Corporation

Columbia-Continental

Lease Agreement

Covenant Not to

Warrant Agreements

filed as an exhibit to USAC's Annual Report on Form 10-KSB for the

year ended December 31, 1996 (File No.

001-08675), are incorporated

herein by this reference

Letter from EPA,

Region 10 filed as an exhibit to USAC's Quarterly Report on Form

10-QSB for the quarter ended September 30, 1997 (File No.

Auditor Firm ID (PCAOB 444 )

Articles of Incorporation of USAC, filed as an exhibit to USAC's Form 10-KSB for the fiscal year ended December 31, 1995 (File No.001-08675), are incorporated herein by this reference.

Amended and Restated Bylaws of USAC, filed as an exhibit to amendment No.

2 to USAC's Form SB-2 Registration Statement (Reg.

333-45508) are incorporated herein by this reference.

Articles of Correction of Restated Articles of Incorporation of USAC.

Articles of Amendment to the Articles of Incorporation of United States Antimony Corporation, filed as an exhibit to USAC's Form 10-QSB for the quarter ended September 30, 2002 (File No.

001-08675), are incorporated herein by this reference.

Key Employees 2000 Stock Plan, filed as an exhibit to USAC's Form S-8 Registration Statement filed on March 10, 2000 (File No.

333-32216) is incorporated herein by this reference.

Warrant Agreements

filed as an exhibit to USAC's Annual Report on Form 10-KSB for the

year ended December 31, 1997 (File No.

001-08675) are incorporated

herein by this reference

Counterclaim and Third-Party Complaint filed as an exhibit to

USAC's Quarterly Report on Forms 10-QSB for the quarter ended

September 30, 1998 (File No.

001-08675) is incorporated herein by

this reference

filed with USAC's Annual Report on Form 10-KSB for the year ended

December 31, 1998 (File No.

001-08675), are incorporated herein by

this reference:

Documents filed with USAC's Annual Report on Form 10-KSB for the year ended December 31, 1995 (File No.

001-08675), are incorporated herein by this reference:

Yellow Jacket Venture Agreement

Agreement Between Excel-Mineral USAC and Bobby C.

Letter Agreement

Columbia-Continental Lease Agreement Revision

Settlement Agreement with Excel Mineral Company

Memorandum Agreement

Termination Agreement

Amendment to Assignment of Lease (Geosearch)

Series B Stock Certificate to Excel-Mineral Company, Inc.

Division Order and Purchase and Sale Agreement

Inventory and Sales Agreement

Processing Agreement

Release and settlement agreement between Bobby C.

Hamilton and United States Antimony Corporation

Columbia-Continental Lease Agreement

Release of Judgment

Covenant Not to Execute

Warrant Agreements filed as an exhibit to USAC's Annual Report on Form 10-KSB for the year ended December 31, 1996 (File No.

001-08675), are incorporated herein by this reference

Letter from EPA, Region 10 filed as an exhibit to USAC's Quarterly Report on Form 10-QSB for the quarter ended September 30, 1997 (File No.

001-08675) is incorporated herein by this reference

Warrant Agreements filed as an exhibit to USAC's Annual Report on Form 10-KSB for the year ended December 31, 1997 (File No.

001-08675) are incorporated herein by this reference

Answer, Counterclaim and Third-Party Complaint filed as an exhibit to USAC's Quarterly Report on Forms 10-QSB for the quarter ended September 30, 1998 (File No.

001-08675) is incorporated herein by this reference

Documents filed with USAC's Annual Report on Form 10-KSB for the year ended December 31, 1998 (File No.

001-08675), are incorporated herein by this reference:

Warrant Issue-Al W.

filed with USAC's Quarterly Report on Form 10-QSB for the quarter

ended March 31, 1999 (File No.

001-08675) is incorporated herein by

this reference:

Warrant Issue-John

PVS Termination

filed as an exhibit to USAC's Form 10-KSB for the year ended

December 31, 1999 (File No.

001-08675) are incorporated herein by

this reference:

Maguire Settlement

Issue-Carlos Tejada

Amendment Agreement

Documents filed with USAC's Quarterly Report on Form 10-QSB for the quarter ended March 31, 1999 (File No.

001-08675) is incorporated herein by this reference:

Warrant Issue-John C.

PVS Termination Agreement

Documents filed as an exhibit to USAC's Form 10-KSB for the year ended December 31, 1999 (File No.

001-08675) are incorporated herein by this reference:

Maguire Settlement Agreement

Warrant Issue-Carlos Tejada

Warrant Issue-Al W.

Memorandum of

Understanding with Geosearch Inc.

Agreement-Systran Financial Services Company

Memorandum of Understanding with Geosearch Inc.

Factoring Agreement-Systran Financial Services Company

Mortgage to John C.

Warrant Issue-Al W.

Dugan filed as an exhibit to USAC's Quarterly Report on Form 10-QSB

for the quarter ended March 31, 2000 (File No.

001-08675) is

incorporated herein by this reference

Agreement between

United States Antimony Corporation and Thomson Kernaghan & Co.,

filed as an exhibit to USAC form 10-QSB for the quarter ended

June 30, 2000 (File No.

001-08675) are incorporated herein by this

agreement and release of all claims between the Estate of Bobby C.

Hamilton and United States Antimony Corporation filed as an exhibit

to USAC form 10-QSB for the quarter ended June 30, 2000 (File No.

Dugan filed as an exhibit to USAC's Quarterly Report on Form 10-QSB for the quarter ended March 31, 2000 (File No.

001-08675) is incorporated herein by this reference

Agreement between United States Antimony Corporation and Thomson Kernaghan & Co., Ltd.

filed as an exhibit to USAC form 10-QSB for the quarter ended June 30, 2000 (File No.

001-08675) are incorporated herein by this reference

Supply Contracts

with Fortune America Trading Ltd.

filed as an exhibit to USAC form

10-QSB for the quarter ended June 30, 2000 (File No.

001-08675) are

incorporated herein by this reference

Restated Agreements with Thomson Kernaghan & Co., Ltd, filed as

an exhibit to amendment No.

3 to USAC's Form SB-2 Registration

Statement (Reg.

333-45508), are incorporated herein by this

Purchase Order from

Kohler Company, filed as an exhibit to amendment No.

Form SB-2 Registration Statement (Reg.

333-45508) are

incorporated herein by this reference

filed as an exhibit to USAC's Form 10-QSB for the quarter ended

June 30, 2002 (File No.

001-08675) are incorporated herein by this

Bear River Zeolite

Company Royalty Agreement, dated May 29, 2002

Grant of Production

Royalty, dated June 1, 2002

Assignment of

Common Stock of Bear River Zeolite Company, dated May 29,

Agreement to Issue

Warrants of USA, dated May 29, 2002

Secured convertible

note payable - Delaware Royalty Company dated December 22,

Convertible note

payable - John C.

Settlement agreement and release of all claims between the Estate of Bobby C.

Hamilton and United States Antimony Corporation filed as an exhibit to USAC form 10-QSB for the quarter ended June 30, 2000 (File No.

001-08675) are incorporated herein by this reference.

Supply Contracts with Fortune America Trading Ltd.

filed as an exhibit to USAC form 10-QSB for the quarter ended June 30, 2000 (File No.

001-08675) are incorporated herein by this reference

Amended and Restated Agreements with Thomson Kernaghan & Co., Ltd, filed as an exhibit to amendment No.

3 to USAC's Form SB-2 Registration Statement (Reg.

333-45508), are incorporated herein by this reference

Purchase Order from Kohler Company, filed as an exhibit to amendment No.

4 to USAC's Form SB-2 Registration Statement (Reg.

333-45508) are incorporated herein by this reference

Documents filed as an exhibit to USAC's Form 10-QSB for the quarter ended June 30, 2002 (File No.

001-08675) are incorporated herein by this reference:

Bear River Zeolite Company Royalty Agreement, dated May 29, 2002

Grant of Production Royalty, dated June 1, 2002

Assignment of Common Stock of Bear River Zeolite Company, dated May 29, 2002

Agreement to Issue Warrants of USA, dated May 29, 2002

Secured convertible note payable - Delaware Royalty Company dated December 22, 2003*

Convertible note payable - John C.

Lawrence dated December 22, 2003*

Pledge, Assignment

and Security Agreement dated December 22, 2003*

Note Purchase

Agreement dated December 22, 2003*

13a-14(a)/15d-14(a) Certifications - Certification of

Certifications - Certification of

CERCLA Letter from

Forest Service filed as an exhibit to USAC form 10-QSB for the

quarter ended June 30, 2000 (File No.

001-08675) are incorporated

herein by this reference and filed as an exhibit to USAC's Form

10-KSB for the year ended December 31, 1995 (File No.

incorporated herein by this reference

Pledge, Assignment and Security Agreement dated December 22, 2003*

Note Purchase Agreement dated December 22, 2003*

Code of Ethics*

Rule 13a-14(a)/15d-14(a) Certifications

Certification of John C.

Section 1350 Certifications

Certification of John C.

CERCLA Letter from U.S.

Forest Service filed as an exhibit to USAC form 10-QSB for the quarter ended June 30, 2000 (File No.

001-08675) are incorporated herein by this reference and filed as an exhibit to USAC's Form 10-KSB for the year ended December 31, 1995 (File No.

1-8675) is incorporated herein by this reference

_____________________

Other Events -

October 10, 2003.

* Filed herewith.

Reports on Form 8-K

Other Events - October 10, 2003.

Exhibit 21.01

Subsidiaries of Registrant, as of December 31, 2020

River Zeolite Company

Falls, MT 59873

de Mexico, S.A.

Falls, MT 59873

States Antimony, Mexico, S.A.

Falls, MT 59873

Holding Company US Inc.

Falls, MT 59873

Mining and Milling US LLC

Falls, MT 59873

to Section 1503(a) of the Dodd-Frank Wall Street Reform and

Consumer Protection Act of 2010 (the “Dodd-Frank Act”),

issuers that are operators, or that have a subsidiary that is an

operator, of a coal or other mine in the United States are required

to disclose in their periodic reports filed with the SEC

information regarding specified health and safety violations,

orders and citations, related assessments and legal actions, and

mining-related fatalities.

During the year ended December 31, 2020,

we had no material specified health and safety violations, orders

or citations, related assessments or legal actions, mining-related

fatalities, or similar events in relation to our United States

operations requiring disclosure pursuant to Section 1503(a) of the

Dodd-Frank Act, except as follows:

Bear River Zeolite Company

Thompson Falls, MT 59873

Antimonio de Mexico, S.A.

Thompson Falls, MT 59873

United States Antimony, Mexico, S.A.

Thompson Falls, MT 59873

Stibnite Holding Company US Inc.

Thompson Falls, MT 59873

Antimony Mining and Milling US LLC

Thompson Falls, MT 59873

AGUA Mines, Inc

Thompson Falls, MT 59873

Mine Safety Disclosures

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities.

During the year ended December 31, 2020, we had no material specified health and safety violations, orders or citations, related assessments or legal actions, mining-related fatalities, or similar events in relation to our United States operations requiring disclosure pursuant to Section 1503(a) of the Dodd-Frank Act, except as follows:

MSHA Actions for the year ended December 31, 2021

to the requirements of Section 13 or 15(b) of the Securities

Exchange Act of 1934, the Registrant has duly caused this report to

be signed on its behalf by the undersigned, thereunto duly

STATES ANTIMONY CORPORATION

Lawrence   

Russell Lawrence,

Interim President, Director, and Principal Executive

Proposed Assessments

(In dollars$)

and Health Review Commission (yes/no)

Bear River Zeolite

Pursuant to the requirements of Section 13 or 15(b) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

UNITED STATES ANTIMONY CORPORATION

By /s/Russell Lawrence

March 31, 2022

Russell Lawrence, President, Director,

and Principal Executive Officer

/s/Alicia Hill

March 31, 2022

Hill, Controller

to the requirements of the Securities Exchange Act of 1934, this

report has been signed below by the following persons on behalf of

the Registrant and in the capacities and on the dates

Alicia Hill, Controller and Principal Accounting Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

/s/ Russell Lawrence

March 31, 2022

Lawrence, Interim Director and President

Russell Lawrence, Director and President

(Principal Executive)

/s/Hart Baitis

March 31, 2022

Baitis, Director

Hart Baitis, Director

/s/ Blaise Aguirre

March 31, 2022

Aguirre, Director

Bardswich   

Bardswich, Director

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING

To the shareholders and the board of directors of United States

Antimony Corporation

Blaise Aguirre, Director

/s/ Joseph Bardswich

March 31, 2022

Joseph Bardswich, Director

/s/ Christopher Park

March 31, 2022

Christopher Park, Director

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the board of directors of United States Antimony Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of

United States Antimony Corporation (the "Company") as of December

31, 2020 and 2019, the related consolidated statements of

operations, changes in

stockholders’

equity and cash flows for each of the years

then ended, and the related notes (collectively referred to as the

"financial statements").

In our opinion, the financial statements

present fairly, in all material respects, the financial position of

the Company as of

December 31, 2020 and 2019, and the

results of its operations and its cash flows for each of the years

then ended, in conformity with accounting principles

generally accepted in the United States of America.

We have audited the accompanying consolidated balance sheets of United States Antimony Corporation (the “Company”) as of December 31, 2021 and 2020, the related consolidated statements of operations, of changes in stockholders’ equity and of cash flows for each of the years then ended, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's

Our responsibility is to express an opinion on the

Company's financial statements based on our audits.

We are a public

accounting firm registered with the Public Company Accounting

Oversight Board (United States) ("PCAOB") and are required to be

independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of

the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the

Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether the financial

statements are free of material misstatement, whether due to error

The Company is not required to have, nor were we engaged

to perform, an audit of its internal control over financial

As part of our audits, we are required to obtain an

understanding of internal control over financial reporting but not

for the purpose of expressing an opinion on the effectiveness of

the Company's internal control over financial reporting.

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.

As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.

Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of

material misstatement of the financial statements, whether due to

error or fraud, and performing procedures that respond to those

Such procedures included examining, on a test basis,

evidence regarding the amounts and disclosures in the financial

Our audits also included evaluating the accounting

principles used and significant estimates made by management, as

well as evaluating the overall presentation of the financial

We believe that our audits provide a reasonable basis

for our opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising

from the current-period audit of the financial statements that was

communicated or required to be communicated to the audit committee

and that (1) relates to accounts or disclosures that are material

to the financial statements and (2) involved our especially

challenging, subjective, or complex judgments.

The communication of

critical audit matters does not alter in any way our opinion on the

financial statements, taken as a whole, and we are not, by

communicating the critical audit matter below, providing a separate

opinion on the critical audit matter or on the accounts or

disclosures to which it relates.

Assessment of Properties, Plants and Equipment for

As described in Note 2 to the consolidated financial statements,

management reviews and evaluates the net carrying value of

properties, plants and equipment for impairment upon the occurrence

of events or changes in circumstances that indicate that the

related carrying amounts may not be recoverable.

necessary based on this review and evaluation, management performs

a test for impairment.

The determination of whether an impairment

has occurred is based on an estimate of undiscounted future net

cash flows attributable to the assets as compared to the carrying

value of the assets.

In its review and evaluation, management determined that the

carrying amount of properties, plants and equipment located in

Mexico (“Mexican PPE”), which has a carrying value of

$8,438,413 as of December 31, 2020, may not be recoverable and

prepared an undiscounted future net cash flows analysis to

determine recoverability.

Based on its analysis, management

concluded that the undiscounted future net cash flow exceeded the

net carrying value of the Mexican PPE and an impairment was not

The undiscounted future net cash flow analysis prepared by

management is sensitive to assumptions including quantities of

recoverable minerals, expected metal prices, production levels, and

estimated operating costs of

production and capital.

We identified the impairment assessment of the Mexican PPE as a

critical audit matter due to the materiality of the Mexican PPE

balance, the high degree of auditor judgment and an increased level

of effort when performing audit procedures to evaluate the

reasonableness of management’s assumptions in determining the

undiscounted future net cash flows.

The primary procedures we

performed to address this critical audit matter

Evaluation of the Company’s identification of significant

events or changes in circumstances that have occurred indicating

the underlying Mexican PPE may not be recoverable by performing an

independent assessment.

Discussion with management of future business plans for the Mexican

PPE and assessment as to whether the undiscounted future net cash

flow analysis was consistent with the plans.

Comparison of key assumptions utilized in the current undiscounted

future net cash analysis to assumptions used in past analyses and

assessed whether the current analysis appropriately reflected the

impact of changes to the Company’s business plans and

operations, current metal prices, actual operating costs, and

industry-specific events.

In addition to ensuring key assumptions were consistent with

evidence obtained in other areas of the audit, evaluation of the

significant assumptions and judgements used in the Company’s

analysis including:

estimated metal

price through comparison to publicly available industry

estimated future

operating and development costs through comparison to the

Company’s historical costs, and

quantities of recoverable minerals through comparison to historical

data and based on our knowledge and experience with the

Evaluation of properties, plants, and equipment for impairment triggering events

As discussed in Note 2 to the consolidated financial statements, the Company evaluates properties, plants, and equipment (“PPE”) to identify events or changes in circumstances, referred to as triggering events, that indicate the carrying value of PPE may not be recoverable.

An impairment loss is recorded in the period in which it is determined that the carrying amount of PPE is not recoverable.

As of December 31, 2021, the carrying value of properties, plants and equipment, net was approximately $11.1 million.

We identified the evaluation of PPE for impairment triggering events as a critical audit matter.

A high degree of subjective auditor judgment was required in evaluating the Company’s assessment of current operations, financial results and historical projections, current industry and market conditions, and relevant industry data for impairment indicators.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the Company’s process of identifying and assessing potential triggering events, including the Company’s assessment of current operations, financial results and historical projections, current industry and market conditions, and relevant industry data.

We evaluated the Company’s identification and assessment of triggering events by evaluating current period operations, financial results and historical projections, including current industry and market considerations.

We compared relevant industry data used by the Company to external sources, including market index data.

We evaluated the Company’s analysis over the factors and considered whether the Company omitted any significant internal or external elements in its evaluation.

/s/ Assure CPA, LLC

Assure CPA, LLC (formerly DeCoria, Maichel & Teague,

We have served as the Company's independent auditor since

Spokane, Washington

March 31, 2022

We have served as the Company’s independent auditor since 1998.

United States Antimony Corporation and Subsidiaries

1 unchanged sentence

December 31, 2021 and 2020

and cash equivalents

$ 665,102  

$ 115,506  

254,212  

253,552  

238,634  

284,453  

650,213  

626,244  

Current assets:

1,808,161  

1,279,755  

plants and equipment, net

11,225,594  

12,186,848  

cash for reclamation bonds

57,275  

57,261  

receivable and other assets

208,472  

170,111  

$ 13,299,502  

$ 13,693,975  

Cash and cash equivalents

Certificates of deposit

Accounts receivable

Inventories (Note 4)

Total current assets

Properties, plants and equipment, net

Restricted cash for reclamation bonds

IVA receivable and other assets

LIABILITIES AND STOCKHOLDERS' EQUITY

issued and payable

$ 86,685  

$ 17,633  

1,876,874  

2,328,977  

to related parties

227,432  

359,309  

635,626  

638,288  

payable to bank

100,000  

197,066  

tax assessment payable (Note 13)

1,120,730  

advances payable (Note 10)

378,074  

debt, current portion

52,122  

56,334  

Current liabilities:

4,477,543  

3,975,681  

debt, net of current portion

34,304  

76,762  

advances payable (Note 10)

756,147  

Act note payable (Note 17)

443,400  

payable to directors for services

110,000  

134,375  

retirement obligations and accrued reclamation costs

291,719  

283,868  

6,113,113  

5,226,833  

and contingencies (Notes 13 and 15)

Stockholders'

stock $0.01 par value, 10,000,000 shares authorized:

-0- shares issued and outstanding

Checks issued and payable

Accounts payable

Payable to related parties

Accrued liabilities

Notes payable to bank

Export tax assessment payable (Note 11)

Hillgrove advances payable (Note 8)

Long-term debt, current portion

Total current liabilities

Long-term debt, net of current portion

Hillgrove advances payable (Note 10)

CARES Act note payable (Note 15)

Stock payable to directors for services

Asset retirement obligations and accrued reclamation costs

Total liabilities

Commitments and contingencies (Note 13)

Stockholders' equity:

Preferred stock $0.01 par value, 10,000,000 shares authorized:

-0- shares issued and outstanding

preference $945,000 and $937,500

 respectively)

750,000 shares issued and outstanding

preference $97,847 both years)

(liquidation preference $952,500 and $945,000 respectively)

177,904 shares issued and outstanding

preference $5,084,770 and $5,043,622

 respectively)

17,509  

stock, $0.01 par value, 150,000,000 shares authorized;

(liquidation preference $97,847 both years)

1,692,672 and 1,751,005 shares issued and outstanding

759,496  

696,614  

paid-in capital

39,050,899  

37,107,730  

(liquidation preference $4,979,632 and $5,084,770

respectively)

Common stock, $0.01 par value, 150,000,000 shares authorized;

106,240,361 and 75,949,757 shares issued and outstanding, respectively

Additional paid-in capital

Accumulated deficit

(32,711,263 )

(32,650,794 )

stockholders' equity

7,186,389  

8,467,142  

liabilities and stockholders' equity

$ 13,299,502  

$ 13,693,975  

The accompanying

notes are an integral part of these consolidated financial

Total stockholders' equity

Total liabilities and stockholders' equity

United States Antimony Corporation and Subsidiaries

1 unchanged sentence

For the years ended December 31, 2021 and 2020

$ 5,235,530  

$ 8,268,005  

COST OF REVENUES

5,029,832  

9,084,256  

GROSS PROFIT (LOSS)

205,698  

     General

and administrative

607,365  

674,494  

     Exploration

165,183  

     Salaries

367,491  

518,758  

     Export

tax assessment

1,120,920  

     Other

OPERATING EXPENSES:

684,361  

88,347  

     Professional

246,618  

245,091  

     Loss

on mineral properties

318,502  

1,410,736  

OPERATING EXPENSES

3,510,440  

2,937,426  

General and administrative

Exploration expense

Salaries and benefits

Export tax assessment (Note 11)

Other operating expenses

Professional fees

Loss on disposal of assets

TOTAL OPERATING EXPENSES

LOSS FROM OPERATIONS

INCOME (EXPENSE):

income (expense)

35,929  

159,130  

OTHER INCOME (EXPENSE):

17,938  

80,786  

NET INCOME (LOSS)

     Preferred

(48,649 ) 

   Net

income (loss) available to common stockholders

$ (3,335,453 )

Interest expense

Gain on forgiveness of CARES Act Debt (Note 15)

Gain on settlement of Hillgrove Advance (Note 8)

TOTAL OTHER INCOME

Preferred dividends

Net loss available to common stockholders

$ (3,335,453 )

income (loss) per share of common stock:

average shares outstanding:

72,513,814  

69,004,897  

accompanying notes are an integral part of these consolidated

financial statements.

United States Antimony Corporation and

Consolidated Statements of Changes in Stockholders'

Net loss per share of common stock:

Basic and diluted

Weighted average shares outstanding:

Basic and diluted

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

United States Antimony Corporation and Subsidiaries

Consolidated Statement of Changes in Stockholders' Equity

For the years ended December 31, 2021 and 2020

1 unchanged sentence

Stockholders'

December 31, 2018

2,678,909  

$ 26,788  

68,227,171  

682,271  

$ 36,406,874  

Balances, January 1, 2020

$ (29,363,990 )

$ 11,424,834  

200,000  

134,000  

136,000  

common stock to Directors

330,183  

171,698  

175,000  

common stock for cash

904,082  

395,158  

404,199  

December 31, 2019

2,678,909  

26,788  

69,661,436  

696,614  

37,107,730  

Issuance of common stock upon exercise of warrants

Issuance of common stock to Directors

Issuance of common stock and warrants for cash

Common stock issuance costs

Balances, December 31, 2020

$ (32,650,794 )

8,467,142  

of common stock upon exercise of warrants

250,000  

60,000  

62,500  

common stock to Directors

295,463  

127,529  

130,483  

of common stock and warrants for cash

5,742,858  

57,428  

1,952,572  

2,010,000  

issuance costs

December 31, 2020

2,678,909  

$ 26,788  

75,949,757  

759,496  

$ 39,050,899  

Issuance for common stock for cash (Note 9)

Issuance of common stock to Directors (Note 9)

Common stock issuance costs (Note 9)

Common stock issued upon exercise of warrants (Note 9)

Conversion of preferred shares to common shares (Note 9)

Series D preferred dividend paid in common shares (Note 9)

Balances, December 31, 2021

$ (32,711,263 )

$ 7,186,389  

 The accompanying notes are an integral part of these

consolidated financial statements.

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

United States Antimony Corporation and Subsidiaries

1 unchanged sentence

For the years ended December 31, 2021 and 2020

Flows From Operating Activities:

income (loss)

$ (3,286,804 )

Cash Flows From Operating Activities:

$ (3,286,804 )

to reconcile net income (loss) to net cash

Adjustments to reconcile net loss to net cash

used by operating activities:

and amortization

885,843  

895,990  

on mineral properties

318,502  

1,410,736  

of inventory to net realizable value

16,396  

of debt discount

54,112  

of asset retirement obligation

stock issued for services

136,000  

stock payable for directors' fees

106,108  

134,375  

non cash items

receivable, net

45,819  

153,938  

112,621  

receivable and other assets

199,337  

402,657  

76,416  

tax assessment payable

1,120,730  

to related parties

14,042  

63,408  

cash provided (used) by operating activities

Flows From Investing Activities:

received on note receivable for sale of land

400,000  

of properties, plants and equipment

cash used by investing activities

Flows From Financing Activities:

in checks issued and payable

69,052  

from issuance of common stock and warrants, net of issuance

1,813,068  

404,199  

from related party

237,400  

on advances from related party

from CARES Act note payable

443,400  

(payments) on notes payable to bank, net

13,149  

payments on long-term debt

cash provided (used) by financing activities

2,098,365  

463,150  

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

549,610  

58,870  

and cash equivalents and restricted cash at beginning of

172,767  

113,897  

and cash equivalents and restricted cash at end of

$ 722,377  

$ 172,767  

DISCLOSURE OF CASH FLOW INFORMATION

$ 17,991  

$ 24,233  

investing and financing activities:

stock payable issued to directors

130,483  

175,000  

to related party satisfied with exercise of stock

62,500  

The accompanying notes are an integral part of these consolidated

financial statements.

of Company and Basis of Presentation

Mines, Inc., predecessor of United States Antimony Corporation

("USAC" or "the Company"), was incorporated in June 1968 as a

Delaware corporation to mine gold and silver.

USAC was incorporated

in Montana in January 1970 to mine and produce antimony products.

Depreciation and amortization

Loss on mineral properties

Accretion of asset retirement obligation

Common stock payable for directors' fees

Gain on settlement of Hillgrove advance

Gain of forgiveness of Cares Act debt

Loss on disposal of assets

Other non cash items

Accounts receivable, net

IVA receivable and other assets

Accounts payable

Accrued liabilities

Export tax assessment payable

Payables to related parties

Net cash used by operating activities

Cash Flows From Investing Activities:

Proceeds from redemption of certificates of deposit

Purchase of certificate of deposit

Purchases of properties, plants and equipment

Net cash used by investing activities

Cash Flows From Financing Activities:

Change in checks issued and payable

Proceeds from issuance of common stock and warrants, net of issuance costs

Proceeds from exercise of warrants

Payments on Hillgrove advances payable

Payments on advances from related party

Proceeds from note payable-SBA

Proceeds from notes payable to bank, net of payments

Principal payments on long-term debt

Net cash provided by financing activities

NET INCREASE IN CASH AND CASH EQUIVALENTS

Cash and cash equivalents and restricted cash at beginning of year

Cash and cash equivalents and restricted cash at end of year

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest paid in cash

Noncash investing and financing activities:

Common stock payable issued to directors

Payable to related party satisfied with exercise of stock

purchase warrant

Building purchased with note payable

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

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Background of Company and Basis of Presentation

AGAU Mines, Inc., predecessor of United States Antimony Corporation (“USAC” or “the Company”), was incorporated in June 1968 as a Delaware corporation to mine gold and silver.

USAC was incorporated in Montana in January 1970 to mine and produce antimony products.

In June 1973, AGAU Mines, Inc.

was merged into USAC.

1983, the Company suspended its antimony mining operations when it

became possible to purchase antimony raw materials more

economically from foreign sources. 

The principal business of

the Company has been the production and sale of antimony

products. 

2000, the Company formed a 75% owned subsidiary, Bear River Zeolite

Company ("BRZ"), to mine and market zeolite and zeolite products

from a mineral deposit in southeastern Idaho. 

operating plant was constructed at the zeolite site and zeolite

production and sales commenced. 

During 2002, the Company

acquired the remaining 25% of BRZ and continued to produce and sell

zeolite products.

2005, the Company formed a 100% owned subsidiary, Antimonio de

(“AM”), to explore and develop

potential antimony properties in Mexico.  

2006, the Company acquired 100% ownership in United States

Antimony, Mexico S.A.

(“USAMSA”), which became

a wholly-owned subsidiary of the Company.

Company acquired 100% ownership in Stibnite Holding Company US Inc.

(previously Lanxess Holding Company US Inc.), Antimony Mining and

Milling US LLC (previously Lanxess Laurel US LLC), a Delaware

limited liability company and Lanxess Laurel de Mexico, S.A.

(“Lanxess Laurel Mexico”), a Mexico corporation, both

of which became a wholly-owned subsidiary of the

In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources.

The principal business of the Company has been the production and sale of antimony products.

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company (“BRZ”), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho.

In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced.

During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A.

(“AM”), to explore and develop potential antimony properties in Mexico.

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A.

(“USAMSA”), which became a wholly-owned subsidiary of the Company.

In 2018, the Company acquired 100% ownership in Stibnite Holding Company US Inc.

(previously Lanxess Holding Company US Inc.), Antimony Mining and Milling US LLC (previously Lanxess Laurel US LLC), a Delaware limited liability company and Lanxess Laurel de Mexico, S.A.

de C.V (“Lanxess Laurel Mexico”), a Mexico corporation, both of which became a wholly-owned subsidiary of the Company.

COVID-19 Coronavirus Pandemic Response and Impact

Following the

outbreak of the COVID-19 coronavirus global pandemic ("COVID-19")

in early 2020, in March 2020 the U.S.

Centers for Disease Control

issued guidelines to mitigate the spread and health consequences of

The Company implemented changes to its operations and

business practices to follow the guidelines and minimize physical

interaction, including using technology to allow employees to work

from home when possible and altering production procedures and

schedules, asset maintenance, and limiting discretionary spending.

As long as they are required, the operational practices implemented

could have an adverse impact on our operating results due to

deferred production and revenues or additional costs.

impact of COVID-19 remains uncertain, including on overall business

and market conditions.

The impact of these restrictions on our

business has been minimal.

It is possible that future restrictions

could have an adverse impact on our operations or financial results

of Significant Accounting Policies

Following the outbreak of the COVID-19 coronavirus global pandemic (“COVID-19”) in early 2020, in March 2020 the U.S.

Centers for Disease Control issued guidelines to mitigate the spread and health consequences of COVID-19.

The Company implemented changes to its operations and business practices to follow the guidelines and minimize physical interaction, including using technology to allow employees to work from home when possible and altering production procedures and schedules, asset maintenance, and limiting discretionary spending.

We continue to monitor guidance from federal, state, local and foreign governments and public health authorities and may need to take additional actions based on their recommendations.

The extent of the impact of COVID-19 on our business and financial results will also depend on future developments, including the duration and spread of the outbreak and the success of the current vaccination programs, all of which are uncertain.

Summary of Significant Accounting Policies

Principles of Consolidation

Company's consolidated financial statements include the accounts of

its wholly-owned subsidiaries BRZ, USAMSA, AM, Stibnite Holding

Company US Inc., and Antimony Mining and Milling US LLC.

intercompany balances and transactions are eliminated in

consolidation.

The Company’s consolidated financial statements include the accounts of its wholly-owned subsidiaries BRZ, USAMSA, AM, Stibnite Holding Company US Inc., and Antimony Mining and Milling US LLC.

All intercompany balances and transactions are eliminated in consolidation.

Use of Estimates

preparation of financial statements in conformity with accounting

principles generally accepted in the United States of America

requires management to make estimates and assumptions that affect

the reported amounts of assets and liabilities and disclosure of

contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and expenses during

the reporting period.

Significant and critical estimates include

property, plant and equipment depreciation and potential

impairment, metal content of mineral resources, accounts receivable

allowance for uncollectible accounts, net realizable value of

inventories, deferred income taxes, income taxes payable,

environmental remediation liabilities and asset retirement

Actual results could differ from those

of Significant Accounting Policies, continued:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Significant and critical estimates include property, plant and equipment depreciation and potential impairment, metal content of mineral resources, accounts receivable allowance for uncollectible accounts, net realizable value of inventories, deferred income taxes, income taxes payable, environmental remediation liabilities and asset retirement obligations.

Actual results could differ from those estimates.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Cash and Cash Equivalents

Company considers cash in banks and investments with original

maturities of three months or less when purchased to be cash

The Company considers cash in banks and investments with original maturities of three months or less when purchased to be cash equivalents.

At December 31, 2021 and 2020, restricted cash for reclamation bonds of $57,281 and $57,275 are included in cash and cash equivalents and restricted cash balances on the statements of cash flows

Restricted Cash

Restricted cash at

December 31, 2020 and 2019 consists of cash held for reclamation

performance bonds and is held in certificates of deposit with

financial institutions.

Accounts Receivable

Restricted cash at December 31, 2021 and 2020 consists of cash held for reclamation performance bonds and is held in certificates of deposit with financial institutions.

Accounts Receivable

are stated at the amount that management expects to collect from

outstanding balances.

Management provides for probable

uncollectible amounts through an allowance for doubtful accounts.

Changes to the allowance for doubtful accounts are based on

management’s judgment, considering historical write-offs,

collections and current credit conditions.

Balances which remain

outstanding after management has used reasonable collection efforts

are written off through a charge to the allowance for doubtful

accounts and a credit to the applicable accounts receivable.

Payments received on receivables subsequent to being written off

are considered a bad debt recovery.

Inventories at

December 31, 2020 and 2019 consisted of finished antimony products,

antimony metal, antimony concentrates, antimony ore, and finished

zeolite products, and are stated at the lower of first-in,

first-out weighted average cost or estimated net realizable value.

Finished antimony products, antimony metal and finished zeolite

products costs include raw materials, direct labor and processing

facility overhead costs and freight allocated based on production

Stockpiled ore is carried at the lower of average cost or

net realizable value.

Since the Company's antimony inventory is a

commodity with a sales value that is subject to world prices for

antimony that are beyond the Company's control, a significant

change in the world market price of antimony could have a

significant effect on the net realizable value of inventories.

Company periodically reviews its inventories to identify excess and

obsolete inventories and to estimate reserves for obsolete

inventories as necessary to reflect inventories at net realizable

Accounts receivable are stated at the amount that management expects to collect from outstanding balances.

Management provides for probable uncollectible amounts through an allowance for doubtful accounts.

Changes to the allowance for doubtful accounts are based on management’s judgment, considering historical write-offs, collections and current credit conditions.

Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts receivable.

Payments received on receivables subsequent to being written off are considered a bad debt recovery.

Inventories at December 31, 2021 and 2020 consisted of finished antimony products, antimony metal, antimony concentrates, antimony ore, and finished zeolite products, and are stated at the lower of first-in, first-out weighted average cost or estimated net realizable value.

Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight allocated based on production quantity.

Stockpiled ore is carried at the lower of average cost or net realizable value.

Since the Company’s antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company’s control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories.

The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value.

Translations of Foreign Currencies

amounts in the financial statements are presented in U.S.

which is the functional currency for all of the Company’s

Foreign translation gains and losses relating to

Mexican subsidiaries are recognized as foreign exchange gain or

loss in the consolidated statement of operations.

Going Concern Consideration

December 31, 2020, the Company’s consolidated financial

statements show negative working capital of approximately $2.7

million and an accumulated deficit of approximately $32.7

million. 

With the exception of 2018, the Company has incurred

losses for the past several years. 

The net income in 2018 was

primarily due to non-recurring events which contributed

approximately $2.5 million to net income.

The continuing losses are

principally a result of the Company’s antimony operations due

to both depressed antimony prices and production costs incurred in

Mexico. 

To improve conditions, the Company plans to continue

searching for areas to reduce these production costs.  

Management expects improvement in cash flow in 2021 from the sale

of precious metals extracted from the leach circuit that came on

line in Mexico in the second half of 2020.  

of Significant Accounting Policies, continued:

the past several years, the Company has been able to make required

principal payments on its debt from cash generated from operations.

The Company is confident it can make debt payments when due.

March 2020, the Company applied for and received funds from a note

payable under the CARES Act for $443,400.

In July 2020 the Company

was successful in raising $1,813,068 from the sale of shares of

common stock and warrants to fund capital projects in Mexico.

the first quarter of 2021, the Company raised $23,497,180 (net of

$1,499,820 in agent’s fees) from sale of shares of its common

stock and warrants that will be used for general corporate

purposes, working capital, and to fund a geochemical, geological

and geophysical program at the Los Juarez property.

With the funds

raised, management believes the Company has sufficient funds to

sustain its operations and meet its financial obligations during

the 12 months following the date of issuance of the consolidated

financial statements.

All amounts in the financial statements are presented in U.S.

dollars, which is the functional currency for all of the Company’s operations.

Foreign translation gains and losses relating to Mexican subsidiaries are recognized as foreign exchange gain or loss in the consolidated statement of operations.

Properties, Plants and Equipment

Properties, plants

and equipment are stated at historical cost and are depreciated

using the straight-line method over estimated useful lives of two

to thirty years.

Vehicles and office equipment are stated at cost

and are depreciated using the straight-line method over estimated

useful lives of three to twelve years.

Maintenance and repairs are

charged to operations as incurred.

Betterments of a major nature

are capitalized.

Expenditures for new property, plant, equipment,

and improvements that extend the useful life or functionality of

the asset are capitalized.

When assets are retired or sold, the

costs and related accumulated depreciation are eliminated from the

accounts and any resulting gain or loss is reflected in

costs to obtain the legal right to explore, extract and retain at

least a portion of the benefits from mineral deposits are

capitalized as mineral rights in the year of acquisition.

capitalized costs are amortized on the statement of operations

using the straight line method over the expected life of the

mineral deposit when placed into production.

Mineral rights are

assessed for impairment when facts and circumstances indicate that

the potential for impairment exists.

Mineral rights are subject to

write down in the period the property is abandoned.

properties are amortized over the estimated economic life of the

mineral resource using the straight-line method, based upon

estimated lives of the properties, or the units-of-production

method, based upon estimated units of mineral

Properties, plants and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives of two to thirty years.

Vehicles and office equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of three to twelve years.

Maintenance and repairs are charged to operations as incurred.

Betterments of a major nature are capitalized.

Expenditures for new property, plant, equipment, and improvements that extend the useful life or functionality of the asset are capitalized.

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.

The costs to obtain the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits are capitalized as mineral rights in the year of acquisition.

These capitalized costs are amortized on the statement of operations using the straight-line method over the expected life of the mineral deposit when placed into production.

Mineral rights are assessed for impairment when facts and circumstances indicate that the potential for impairment exists.

Mineral rights are subject to write down in the period the property is abandoned.

Mineral properties are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Impairment of Long-lived Assets

Management 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.

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.

management has made what it believes to be a reasonable estimate of

factors based on current conditions and information, assumptions

underlying future cash flows, which includes the estimated value of

assets, are subject to significant risks and uncertainties.

Estimates of undiscounted future cash flows are dependent upon,

among other factors, estimates of:

(i) product and metals to be

recovered from identified mineralization and other resources (ii)

future production and capital costs, (iii) estimated

prices (considering current, historical, and future prices) over

the estimated remaining life of the asset and (iv) market values of

property, if appropriate.

It is possible that changes could occur

in the near term that could adversely affect the estimate of future

cash flows to be generated from operating properties.

undiscounted cash flows are less than the carrying value of an

asset, an impairment loss is recognized for the difference between

the carrying value and fair value of the asset.

of Significant Accounting Policies, continued:

Management 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.

Although management has made what it believes to be a reasonable estimate of factors based on current conditions and information, assumptions underlying future cash flows, which includes the estimated value of assets, are subject to significant risks and uncertainties.

Estimates of undiscounted future cash flows are dependent upon, among other factors, estimates of:

(i) product and metals to be recovered from identified mineralization and other resources (ii) future production and capital costs, (iii) estimated

selling prices (considering current, historical, and future prices) over the estimated remaining life of the asset and (iv) market values of property, if appropriate.

It is possible that changes could occur in the near term that could adversely affect the estimate of future cash flows to be generated from operating properties.

If estimated undiscounted cash flows are less than the carrying value of an asset, an impairment loss is recognized for the difference between the carrying value and fair value of the asset.

Exploration and Development

Company expenses exploration costs as such in the period they

The mine development stage begins once the Company has

determined an ore body can be economically developed.

incurred during the development stage are capitalized as deferred

development costs.

Costs to improve, alter, or rehabilitate primary

development assets which appreciably extend the life, increase

capacity, or improve the efficiency or safety of such assets are

also capitalized.

The development stage ends when the production

stage of reserves begins.

Deferred development costs are amortized

over the estimated economic life of the mineral resource using the

straight-line method, based upon estimated lives of the properties,

or the units-of-production method, based upon estimated units of

mineral resource.

The Company expenses exploration costs as such in the period they occur.

The mine development stage begins once the Company has determined an ore body can be economically developed.

Expenditures incurred during the development stage are capitalized as deferred development costs.

Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized.

The development stage ends when the production stage of reserves begins.

Deferred development costs are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource.

Asset Retirement Obligations and Reclamation Costs

the Company's mining operations are subject to reclamation and

remediation requirements.

Minimum standards for mine reclamation

have been established by various governmental agencies.

estimated based primarily upon environmental and regulatory

requirements and are accrued.

The liability for reclamation is

classified as current or noncurrent based on the expected timing of

expenditures.

Reclamation differs from an asset retirement

obligation in that no associated asset is recorded in the case of

reclamation liabilities.

reasonably possible that because of uncertainties associated with

defining the nature and extent of environmental contamination,

application of laws and regulations by regulatory authorities, and

changes in remediation technology, the ultimate cost of remediation

and reclamation could change in the future.

The Company continually

reviews its accrued liabilities for such remediation and

reclamation costs as evidence becomes available indicating that its

remediation and reclamation liability has changed.

Company records the fair value of an asset retirement obligation as

a liability in the period in which the Company incurs a legal

obligation for the retirement of long-lived assets if it is

probable that such costs will be incurred and they are reasonably

A corresponding asset is also recorded and depreciated

over the life of the assets on a straight line basis.

initial measurement of the asset retirement obligation, the

liability will be adjusted to reflect changes in the estimated

future cash flows underlying the obligation.

Determination of any

amounts included in determination of fair value is based upon

numerous estimates and assumptions, including future retirement

costs, future inflation rates, and the Company’s

credit-adjusted risk-free interest rates.

All of the Company’s mining operations are subject to reclamation and remediation requirements.

Minimum standards for mine reclamation have been established by various governmental agencies.

Costs are estimated based primarily upon environmental and regulatory requirements and are accrued.

The liability for reclamation is classified as current or noncurrent based on the expected timing of expenditures.

Reclamation differs from an asset retirement obligation in that no associated asset is recorded in the case of reclamation liabilities.

It is reasonably possible that because of uncertainties associated with defining the nature and extent of environmental contamination, application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation and reclamation could change in the future.

The Company continually reviews its accrued liabilities for such remediation and reclamation costs as evidence becomes available indicating that its remediation and reclamation liability has changed.

The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of long-lived assets if it is probable that such costs will be incurred and they are reasonably estimable.

A corresponding asset is also recorded and depreciated over the life of the assets on a straight-line basis.

After the initial measurement of the asset retirement obligation, the liability will be adjusted to reflect changes in the estimated future cash flows underlying the obligation.

Determination of any amounts included in determination of fair value is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates, and the Company’s credit-adjusted risk-free interest rates.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Revenue Recognition

Products consist of

the following:

antimony oxide, sodium antimonate,

antimony trisulfide, and antimony metal

includes coarse and fine zeolite crushed in various

Products consist of the following:

includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal

includes coarse and fine zeolite crushed in various sizes

Precious Metals:

includes unrefined and

refined gold and silver

antimony and zeolite products, revenue is recognized upon the

completion of the performance obligation which is met when the

transaction price can be reasonably estimated and revenue is

recognized generally at the time when risk is transferred.

Company has determined the performance obligation is met and title

is transferred either upon shipment from the Company’s

warehouse locations or upon receipt by the customer as specified in

individual sales orders.

The performance obligation is met because

at that time, 1) legal title is transferred to the customer, 2) the

customer has accepted the product and obtained the ability to

realize all of the benefits from the product, 3) the customer has

the significant risks and rewards of ownership to it, 4) it is very

unlikely product will be rejected by the customer upon physical

receipt, and 5) the Company has the right to payment for the

Shipping costs related to the sales of antimony and

zeolite products are recorded to cost of sales as incurred.

zeolite products, royalty expense due a third party by the Company

is also recorded to cost of sales upon sale in accordance with

terms of underlying royalty agreements.

of Significant Accounting Policies, continued:

sales of precious metals, the performance obligation is met, the

transaction price is known, and revenue is recognized at the time

of transfer of control of the agreed-upon metal quantities to the

Refining and shipping costs related to sales of precious

metals are recorded to cost of sales as incurred.

Company has determined that its contracts do not include a

significant financing component.

Prepayments, which are not common,

received from customers prior to the time that products are

processed and shipped, are recorded as deferred revenue.

antimony and zeolite sales contracts, the Company may factor

certain receivables and receive final payment within 30 days of the

performance obligation being met.

For antimony and zeolite

receivables not factored, the Company typically receives payment

within 10 days.

For precious metals sales,

provisional payment of 75% is typically received within 45 days of

the date the product is delivered to the customer.

exchange of assays, a final payment is normally received within 90

days of product delivery.

includes unrefined and refined gold and silver

For antimony and zeolite products, revenue is recognized upon the completion of the performance obligation which is met when the transaction price can be reasonably estimated and revenue is recognized generally at the time when risk is transferred.

The Company has determined the performance obligation is met and title is transferred either upon shipment from the Company’s warehouse locations or upon receipt by the customer as specified in individual sales orders.

The performance obligation is met because at that time, 1) legal title is transferred to the customer, 2) the customer has accepted the product and obtained the ability to realize all of the benefits from the product, 3) the customer has the significant risks and rewards of ownership to it, 4) it is very unlikely product will be rejected by the customer upon physical receipt, and 5) the Company has the right to payment for the product.

Shipping costs related to the sales of antimony and zeolite products are recorded to cost of sales as incurred.

For zeolite products, royalty expense due a third party by the Company is also recorded to cost of sales upon sale in accordance with terms of underlying royalty agreements.

For sales of precious metals, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer.

Refining and shipping costs related to sales of precious metals are recorded to cost of sales as incurred.

The Company has determined that its contracts do not include a significant financing component.

Prepayments, which are not common, received from customers prior to the time that products are processed and shipped, are recorded as deferred revenue.

For antimony and zeolite sales contracts, the Company may factor certain receivables and receive final payment within 30 days of the performance obligation being met.

For antimony and zeolite receivables not factored, the Company typically receives payment within 10 days.

For precious metals sales, a provisional payment of 75% is typically received within 45 days of the date the product is delivered to the customer.

After an exchange of assays, a final payment is normally received within 90 days of product delivery.

Common Stock Issued for Consideration Other than Cash

transactions in which goods or services are received for the

issuance of shares of the Company’s common stock are

accounted for based on the fair value of the common stock

taxes are accounted for under the liability method.

method, deferred income tax liabilities or assets are determined at

the end of each period using the tax rate expected to be in effect

when the taxes are actually paid or recovered.

allowance is recognized on deferred tax assets when it is more

likely than not that some or all of these deferred tax assets will

not be realized.

Company applies generally accepted accounting principles for

recognition of uncertainty in income taxes and prescribing a

recognition threshold and measurement attribute for the recognition

and measurement of a tax position taken or expected to be taken in

a tax return.

All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the common stock issued.

Income taxes are accounted for under the liability method.

Under this method, deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered.

A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

The Company applies generally accepted accounting principles for recognition of uncertainty in income taxes and prescribing a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Income (Loss) Per Common Share

earnings per share is calculated by dividing net income (loss)

available to common stockholders by the weighted average number of

common shares outstanding during the period.

Diluted earnings per

share is calculated based on the weighted average number of common

shares outstanding during the period plus the effect of potentially

dilutive common stock equivalents, including stock options,

warrants to purchase the Company's common stock, and convertible

preferred stock.

For the years ended December 31, 2020 and 2019,

potentially dilutive common stock equivalents not included in the

calculation of diluted earnings per share because they were

anti-dilutive are as follows:

6,194,899  

702,041  

preferred stock

1,751,005  

Total possible

7,945,904  

2,453,046  

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.

Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including stock options, warrants to purchase the Company’s common stock, and convertible preferred stock.

For the years ended December 31, 2020 and 2020, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share because they were anti-dilutive are as follows:

Convertible preferred stock

Total possible dilution

Fair Value of Financial Instruments

Company’s financial instruments include cash and cash

equivalents, certificates of deposits, restricted cash, due to

factor (included in accrued liabilities), notes payable to bank,

and notes payable.

The carrying value of these instruments

approximates fair value based on their contractual

of Significant Accounting Policies, continued:

The Company’s financial instruments include cash and cash equivalents, certificates of deposits, and restricted cash.

The carrying value of these instruments approximates fair value based on their contractual terms.

Fair Value Measurements

required to measure assets or liabilities at fair value, the

Company uses a fair value hierarchy based on the level of

independent, objective evidence surrounding the inputs used.

Company determines the level within the

value hierarchy in which the fair value measurements in their

entirety fall.

The categorization within the fair value hierarchy

is based upon the lowest level of input that is significant to the

fair value measurement.

Level 1 uses quoted prices in active

markets for identical assets or liabilities, Level 2 uses

significant other observable inputs, and Level 3 uses significant

unobservable inputs.

The amount of the total gains or losses for

the period are included in earnings that are attributable to

the change in unrealized gains or losses relating to those assets

and liabilities still held at the reporting date.

The Company has

no financial assets or liabilities that are adjusted to fair value

on a recurring basis.

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used.

The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall.

The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Level 1uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs.

The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date.The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis.

Contingencies

determining accruals and disclosures with respect to loss

contingencies, the Company evaluates such accruals and

contingencies for each reporting period.

Estimated losses from loss

contingencies are accrued by a charge to income when information

available prior to issuance of the financial statements indicates

that it is probable that a liability could be incurred and the

amount of the loss can be reasonably estimated.

Legal expenses

associated with the contingency are expensed as incurred.

contingency is not probable or reasonably estimable, disclosure of

the loss contingency is made in the financial statements when it is

at least reasonably possible that a material loss could be

Reclassifications

reclassifications have been made to conform the prior year’s

data to the current year’s presentation.

reclassifications have no effect on previously reported operations,

stockholders’

equity or cash flows.

In determining accruals and disclosures with respect to loss contingencies, the Company evaluates such accruals and contingencies for each reporting period.

Estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred and the amount of the loss can be reasonably estimated.

Legal expenses associated with the contingency are expensed as incurred.

If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

Recent Accounting Pronouncements

Accounting Standards Updates Adopted

In August 2018, the Financial Accounting Standards

Board (“FASB”) issued Auditing Standards Update

(“ASU”) No.

2018-13 Fair Value Measurement (Topic 820):

Disclosure Framework-Changes to the Disclosure Requirements for

Fair Value Measurement.

The update removes, modifies and makes

additions to the disclosure requirements on fair value

measurements.

The update was adopted as of January 1, 2020,

and its adoption did not have a material impact on the

Company’s consolidated financial statements.

Accounting Standards Updates to Become Effective in Future

December 2019, the FASB issued ASU No.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2019-12 Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes.

contains a number of provisions intended to simplify the accounting

for income taxes.

The update is effective for fiscal years

beginning after December 15, 2020, with early adoption permitted.

Management is evaluating the impact of

this update on the Company’s consolidated financial

In August 2020, the FASB issued ASU

2019 - 12  

Debt with Conversion and Other Options (Subtopic

470 - 20) and Derivatives and Hedging—Contracts in

Entity’s Own Equity (Subtopic 815 - 40):

Accounting for Convertible Instruments and

Contracts in an Entity’s Own Equity.

The update is to address

issues identified as a result of the complexity associated with

applying generally accepted accounting principles for certain

financial instruments with characteristics of liabilities and

The update is effective for fiscal years beginning after

December 15, 2021, including interim periods within those fiscal

years and with early adoption permitted.

Management is evaluating

the impact of this update on the Company’s consolidated

financial statements.

of products for the years ended December 31, 2020 and 2019, were as

$ 2,942,628  

$ 5,450,649  

2,118,823  

2,623,117  

174,079  

194,239  

$ 5,235,530  

$ 8,268,005  

following is sales information by geographic area based on the

location of customers for the years ended December 31, 2020, and

$ 4,662,841  

$ 7,454,163  

572,689  

813,842  

$ 5,235,530  

$ 8,268,005  

of products to significant customers were as follows for the years

ended December 31, 2020, and 2019:

 For the Year Ended

Sales to Three

Largest Customers

Specialty Compounds Inc.

$ 633,846  

$ 1,823,194  

Chaplin, Inc.

589,384  

Nanotechnologies

417,501  

1,099,504  

345,899  

1,132,674  

$ 1,986,630  

$ 4,055,372  

% of Total Revenues

Accounts receivable

from the Company’s largest customers were as follows for

The update contains a number of provisions intended to simplify the accounting for income taxes.

The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements.

Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Revenue Recognition

Sales of products for the years ended December 31, 2021 and 2020, were as follows:

Year ended December 31,

$ 4,815,524 $ 2,942,628

2,593,641 2,118,823

Precious metals

338,341 174,079

$ 7,747,506 $ 5,235,530

All precious metals sales of $338,341 were from one customer, Teck Americans, Inc.

The following is sales information by geographic area based on the location of customers for the years ended December 31, 2021 and 2020.

Year ended December 31,

United States

Sales of products to significant customers were as follows for the years ended December 31, 2021 and 2020:

For the year ended December 31,

Sales to largest customers

% of Total Revenues

Accounts receivable from the Company’s largest customers were as follows for December 31, 2021 and 2020:

Largest Accounts Receivable

$ 21,619  

$ 21,219  

Innovations Inc.

68,055  

15,184  

16,600  

12,800  

12,255  

27,854  

$ 118,529  

$ 77,057  

% of Total Receivables

Company’s trade accounts receivable balance related to

contracts with customers was $238,634 at December 31, 2020 and

$284,453 at December 31, 2019.

Receivable and Due to Factor

Company factors designated trade receivables pursuant to a

factoring agreement with LSC Funding Group L.C., an unrelated

factor (the “Factor”).  The agreement is for

a term of one year with automatic renewal for additional one-year

The agreement specifies that eligible trade receivables are

factored with recourse.

The performance of all obligations and

payments to the factoring company was personally guaranteed by John

Lawrence, the Company’s previous President and Chairman of

the Board of Directors.

The existing agreement will be addressed in

2021 to account for Mr.

Lawrence’s death and that impact on

the personal guarantee.

Selected trade receivables are submitted to

the Factor, and the Company receives 85% of the face value of the

receivable by wire transfer.

Upon payment by the customer, the

remainder of the amount due is received from the Factor, less a

one-time servicing fee of 2% for the receivables

factored.  This servicing fee is recorded on the

consolidated statement of operations in the period of sale to the

Factor.  

receivables assigned to the Factor are carried at the original

invoice amount less an estimate made for doubtful

accounts.  Under the terms of the recourse provision, the

Company is required to reimburse the Factor, upon demand, for

factored receivables that are not paid on

time.  Accordingly, these receivables are accounted for

as a secured financing arrangement and not as a sale of financial

Receivables, net of

allowances, are presented as current assets and the amount

potentially due to the Factor is included in current accrued

Accounts Receivable

receivable - non factored

$ 222,034  

$ 273,573  

receivable - factored with recourse

16,600  

10,880  

      Accounts

receivable - net

$ 238,634  

$ 284,453  

major components of the Company's inventories at December 31, 2020

and 2019 were as follows:

$ 67,377  

$ 204,550  

268,100  

95,880  

151,841  

     Total

431,357  

362,045  

218,856  

264,199  

$ 650,213  

$ 626,244  

December 31, 2020 and 2019, antimony metal consisted principally of

recast metal from antimony-based compounds, and metal purchased

from foreign suppliers.

Antimony oxide inventory consisted of

finished product oxide held at the Company's plant.

concentrates and ore were held primarily at sites in Mexico and are

essentially raw material.

At December 31, 2020 and 2019, the

antimony oxide and concentrates inventory in Mexico were valued at

estimated net realizable value resulting in write-downs of $13,137

and $16,396, respectively.

The Company's zeolite inventory consists

of salable zeolite material.

Plants and Equipment

major components of the Company's properties, plants and equipment

by segment at December 31, 2020 and 2019 are shown

Metals  

and equipment

$ 815,737  

$ 8,757,775  

$ 3,743,051  

$ 1,266,697  

$ 14,583,260  

247,210  

613,449  

410,780  

1,271,439  

rights and interests

828,523  

832,187  

3,274,572  

2,478,044  

15,310  

5,767,926  

4,337,519  

12,677,791  

4,172,805  

1,266,697  

22,454,812  

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

The major components of the Company’s inventories at December 31, 2021 and 2020 were as follows:

Antimony Oxide

Antimony Metal

Total antimony

Total inventory

At December 31, 2021 and 2020, antimony metal consisted principally of recast metal from antimony-based compounds, and metal purchased from foreign suppliers.

Antimony oxide inventory consisted of finished product oxide held at the Company’s plant.

Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material.

At December 31, 2020, the antimony oxide and ore inventory in Mexico was valued at estimated net realizable value resulting in write-downs of $13,137.

Properties, Plants and Equipment

The major components of the Company’s properties, plants and equipment by segment at December 31, 2021 and 2020 are shown below:

Antimony Segment

Zeolite Segment

Precious Metals

Plant and equipment

Mineral rights and interests

Land and other

Accumulated depreciation

(12,110,098 )

$ 1,637,738  

$ 7,635,410  

$ 1,018,561  

$ 933,885  

$ 11,225,594  

Antimony Segment  

Zeolite Segment

Precious Metals

and equipment

$ 783,290  

$ 9,164,600  

$ 3,729,061  

$ 813,714  

$ 14,490,665  

247,210  

902,707  

410,780  

1,560,697  

rights and interests

816,786  

820,450  

3,274,572  

2,529,294  

15,310  

5,819,176  

4,305,072  

13,413,387  

4,158,815  

813,714  

22,690,988  

Plant and equipment

Mineral rights and interests

Land and other

Accumulated depreciation

(11,229,218 )

$ 1,631,100  

$ 8,800,820  

$ 1,187,190  

$ 567,738  

$ 12,186,848  

States and Mexico components of properties, plants and

$ 2,787,181  

$ 2,961,895  

8,438,413  

9,224,953  

$ 11,225,594  

$ 12,186,848  

Company’s precious metals segment includes properties, plants

and equipment in both the United States and Mexico.

quarter of 2020, the Company decided not to renew the lease at the

Wadley Mining district in Mexico due to continuing low market price

for antimony and to reduce Mexican antimony production while

seeking other lower cost sources of antimony ore and concentrates.

The net carrying value of the mineral lease of $318,502 was

recognized as a loss on mineral properties during the year ended

December 31, 2020.

fourth quarter of 2019, the Company abandoned the Soyatal and

Guadalupe mineral properties in Mexico.

The net carrying value of

the mineral properties of $2,937,259 less the outstanding related

notes payable balances, resulted in a loss on mineral properties of

$1,410,736 which was recognized during the year ended December 31,

December 31, 2020 and 2019, the Company had $755,978 and

$1,306,579, respectively, of assets that were not yet placed in

service and have not yet been depreciated.

Retirement Obligation and Accrued Reclamation Costs

to the asset retirement obligation balance during 2020 and 2019 are

United States

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

The Company’s precious metals segment includes properties, plants and equipment in both the United States and Mexico.

In the third quarter of 2020, the Company decided not to renew the lease at the Wadley Mining district in Mexico due to continuing low market price for antimony and to reduce Mexican antimony production while seeking other lower cost sources of antimony ore and concentrates.

The net carrying value of the mineral lease of $318,502 was recognized as a loss on disposal of asset during the year ended December 31, 2020.

At December 31, 2021 and 2020, the Company had $665,175 and $755,978, respectively, of assets that were not yet placed in service and have not yet been depreciated.

Asset Retirement Obligation and Accrued Reclamation Costs

Changes to the asset retirement obligation balance during 2021 and 2020 are as follows:

Asset Retirement Obligation

   Balance

December 31, 2018

$ 170,220  

   Accretion

   Balance

December 31, 2019

176,368  

   Accretion

   Balance

December 31, 2019

$ 184,219  

Company’s total asset retirement obligation and accrued

reclamation costs of $291,719 and $283,868, at December 31, 2020

and 2019, respectively, include reclamation obligations for the

Idaho and Montana operations of $107,500.

debt at December 31, 2020 and 2019 is as follows:

payable to Zeo Inc., non interest bearing,

in 11 quarterly installments of $8,300 with a final payment of

December 2022;

Balance December 31, 2019

Accretion during 2020

Balance December 31, 2020

Accretion during 2021

Balance December 31, 2021

The Company’s total asset retirement obligation and accrued reclamation costs of $298,649 and $291,719, at December 31, 2021 and 2020, respectively, include reclamation obligations for the Idaho and Montana operations of $107,500.

Long-term debt at December 31, 2021 and 2020 is as follows:

Note payable to Zeo Inc., non interest bearing,

payable in 11 quarterly installments of $8,300 with a final payment of $8,700;

maturing December 2022;

uncollateralized.

$ 66,800  

$ 100,000  

payable to Cat Financial Services, bearing interest at

in monthly installments of $778;

collateralized by equipment.

17,480  

26,250  

payable to De Lage Landen Financial Services,

interest at 3.51%;

Note payable to Cat Financial Services, bearing interest at 6%;

payable in monthly installments of $778;

September 2019;

December 2022;

collateralized by equipment.

payable to Phyllis Rice, bearing interest

Note payable to Phyllis Rice, bearing interest

payable in monthly installments of $2,000;

originally maturing

collateralized by equipment.

86,426  

133,096  

current portion

$ 34,304  

$ 76,762  

December 31, 2020, principal payments on debt are due as

Promissory note payable to First Security Bank of Missoula,

bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with

a final payment of $152,726 maturing November 9, 2026;

collateralized by a

lien on Certificate of Deposit

$ 215,150 $ 86,426

Less current portion

(13,230 ) (52,122 )

Long-term portion

$ 201,920 $ 34,304

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

At December 31, 2021, principal payments on debt are due as follows:

12 Months Ending December 31,

Principal Payment

52,122  

34,304  

$ 86,426  

fourth quarter 2019, the Company abandoned the Soyatal and

Guadalupe mineral properties in Mexico.

The balances of the related

debt, net of discount, on the date of abandonment is $603,743 and

$922,780, respectively.

The carrying value of the mineral

properties, less the outstanding related notes payable balances

resulted in a loss of $1,410,736 recognized on the abandonment of

mineral properties during the year ended December 31,

Notes Payable to Bank

December 31, 2020 and 2019, the Company had the following notes

payable to bank:

Promissory note

payable to First Security Bank of Missoula,

bearing interest at

3.150%, payable on demand, collateralized

Certificate of Deposit

$ 99,999  

$ 97,067  

Promissory note

payable to First Security Bank of Missoula,

bearing interest at

3.150%, payable on demand, collateralized

Certificate of Deposit

99,999  

Total notes payable

$ 100,000  

$ 197,066  

notes were personally guaranteed by John C.

Lawrence, the

Company’s previous Chief Executive Officer and Chairman of

the Board of Directors.

The maximum amount available for borrowing

under each note is $99,999.

As result of his death in June 2020,

the terms of the note, including the personal guarantee, will be

addressed in 2021.

Advances Payable

November 7, 2014, the Company entered into an advance and

concentrate processing agreement with Hillgrove Mines Pty Ltd of

Australia (Hillgrove) in which the Company was advanced funds from

Hillgrove to build facilities to process Hillgrove antimony

The Company has not processed Hillgrove concentrate

for the past three years.

The agreement requires the Company to pay

the advance balance after Hillgrove issues a stop notice.

would begin 90 days after the stop notice issue date and be made in

six equal and quarterly installments.

The balance of the advance

liability due to Hillgrove was $1,134,221 at both December 31, 2020

Hillgrove was acquired by Red River Resources LTD

(“Red River”) during 2019.

Although the Company has not

received a stop notice through the date these financial statements

were issued, management has determined that one is likely

forthcoming in 2021.

Based on management’s assessment of

likelihood and the payment terms of the agreement, $378,074 of the

balance is classified as current as of December 31, 2020 and

Stockholders'

December 2020, the number of authorized shares of the

Company’s common stock increased from 90,000,000 to

At December 31, 2020, the Company had a note payable to First Security Bank of Missoula for $'000 which was collateralized by a lien on a certificate of deposit.

This note was paid in full during 2021.

Hillgrove Advances Payable

On November 7, 2014, the Company entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) in which the Company was advanced funds from Hillgrove to build facilities to process Hillgrove antimony concentrate.

The agreement required the Company to pay the advance balance after Hillgrove issues a stop notice.

Payments would begin 90 days after the stop notice issue date and be made in six equal and quarterly installments.

Hillgrove was acquired by Red River Resources LTD (“Red River”) during 2019.

The balance of the advance liability due was $1,134,221 at December 31, 2020.

In April 2021, the Company successfully negotiated a settlement with Red River for an agreed upon amount of $1,020,799 which was paid on paid on April 8, 2021.

The Company recognized a gain on settlement of the advance in the amount of $113,422 during the year ended December 31, 2021.

Stockholders’ Equity

In December 2020, the number of authorized shares of the Company’s common stock increased from 90,000,000 to 150,000,000.

Issuance of Common Stock for Cash

2020, the Company sold units consisting of 5,742,858 from sale of

shares of its common stock and 5,742,858 warrants to purchase

shares of common stock for total proceeds of $2,010,000.

costs associated with the sale totaled $196,932.

2019, the Company sold units consisting of 904,082 shares of its

common stock and 452,041 warrants to purchase shares of common

stock for total proceeds of $433,960.

Offering costs associated

with the sale totaled $29,761.

Issuance of Common Stock for Services to Officers and

the year ended December 31, 2020, the Company awarded, but did not

issue, common stock with a value of $110,000 to its Board of

Directors as compensation for their services as directors.

connection with the issuances, the Company recorded $110,000 in

director compensation expense and accrued common stock

2020, the Company issued the Board members 295,463 shares of the

Company’s common stock for services provided during 2019

which was accrued at December 31, 2019, with a value of

Stockholders'

Equity, continued:

the years ended December 31, 2019, the Company awarded but did not

issue, common stock with a value of $134,375 to its Board of

Directors as compensation for their services as directors.

connection with the issuances, the Company recorded $134,375 in

director compensation expense and accrued common stock

January 2019, the Company issued Daniel Parks, the Company’s

Chief Financial Officer, 200,000 shares of the Company’s

common stock with a fair value of $136,000 to retain his

During 2020, the Company sold units consisting of 5,742,858 from sale of shares of its common stock and 5,742,858 warrants to purchase shares of common stock for total proceeds of $2,010,000.

Offering costs associated with the sale totaled $196,932.

In February 2021, the Company sold shares of its common stock in two separate transactions:

On February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000;

and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000.

A total of $1,654,822 of cash issuance costs were incurred on these sales.

Total warrants of 10,060,500 were issued in connection with the offerings.

During the years ended December 31, 2021 and 2020, the Company received proceeds of $1,790,706 and $62,500, respectively, from the issuance of shares of its common stock upon the exercise of warrants.

Issuance of Common Stock for Services to Officers and Directors

In June 2020, the Company issued the Board members 295,463 shares of the Company’s common stock for services provided during 2019 which was accrued at December 31, 2019, with a value of $130,483.

During the year ended December 31, 2020, the Company awarded, but did not issue, common stock with a value of $110,000 to its Board of Directors as compensation for their services as directors.

In connection with the issuances, the Company recorded $110,000 in director compensation expense and accrued common stock payable as of December 31, 2020.

During the year ended December 31, 2021, the Company issued 112,610 shares of common stock to the board of directors to satisfy the directors’ fees payable of $110,000 that were outstanding at December 31, 2020

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

During the year ended December 31, 2021, the Company awarded, but did not issue, common stock with a value of $112,500 to its Board of Directors as compensation for their services as directors.

In connection with the issuances, the Company recorded $112,500 in director compensation expense and accrued common stock payable.

Common Stock Warrants

Company's Board of Directors has the authority to issue stock

warrants for the purchase of preferred or unregistered common stock

to directors and employees of the Company.

December 31, 2019, warrants for purchase of 250,000 shares of the

Company’s common stock for $0.25 per share were outstanding

and have no expiration date.

These warrants were owned by the

Company’s previous President and Chairman, John Lawrence.

warrants were exercised on March 18, 2020 in exchange for a

reduction of $62,500 in an amount payable to Mr.

purchase of 452,041 shares of the Company’s common stock were

sold with shares of common stock in 2019.   

warrants have an exercise price of $0.65 per share and expire in

2022.  

purchase of 5,742,858 shares of the Company’s common stock

were sold with shares of common stock in July

2020.   

The warrants have an exercise price of

$0.46 per share and expire in 2025.

The warrants can be exercised

on a cashless basis.

The warrants contain a repricing provision

whereby if the Company raises at least $6,000,000 in gross proceeds

from the sale of its common stock at an effective price per share

less than the warrants’

exercise price, the exercise price of

the warrants will be repriced to the lower price.

Transactions in

common stock purchase warrants for the years ended December 31,

2020 and 2019 are as follows:

The Company’s Board of Directors has the authority to issue stock warrants for the purchase of preferred or unregistered common stock to directors and employees of the Company.

At December 31, 2019, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share were outstanding.

These warrants were owned by the Company’s previous President and Chairman, John Lawrence.

The warrants were exercised on March 18, 2020 in exchange for a reduction in an amount payable to Mr.

In July 2020, warrants for purchase of 5,742,858 shares of the Company’s common stock were sold with shares of common stock.

The warrants have an exercise price of $0.46 per share and expire in 2025.

The warrants can be exercised on a cashless basis.

The warrants contain a repricing provision whereby if the Company raises at least $6,000,000 in gross proceeds from the sale of its common stock at an effective price per share less than the warrants’ exercise price, the exercise price of the warrants will be repriced to the lower price.

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share.

The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date.

In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent.

Transactions in common stock purchase warrants for the years ended December 31, 2021 and 2020 are as follows:

Number of Warrants

Exercise Prices

Balance, December 31, 2019

250,000  

$ 0.25  

452,041  

$ 0.65  

$0.46 - $0.65

Warrants issued

Warrants exercised

Balance, December 31, 2020

702,041  

$ 0.25 - $0.65  

5,742,858  

$ 0.46  

$ 0.25  

Warrants issued

Warrants exercised

$0.46 - $0.65

Balance, December 31, 2021

6,194,899  

$ 0.46 - $0.65  

Preferred Stock

Company's Articles of Incorporation authorize 10,000,000 shares of

$0.01 par value preferred stock available for issuance with such

rights and preferences, including liquidation, dividend,

conversion, and voting rights, as the Board of Directors may

Stockholders'

Equity, continued:

1993, the Board established a Series B preferred stock, consisting

of 750,000 shares.

The Series B preferred stock has preference over

the Company's common stock and Series A preferred stock (none of

which are outstanding);

has no voting rights (absent default in

payment of declared dividends);

and is entitled to cumulative

dividends of $0.01 per share per year, payable if and when declared

by the Board of Directors.

During each of the years ended December

31, 2020 and 2019 the Company recognized $7,500 in Series B

preferred stock dividend.

In the event of dissolution or

liquidation of the Company, the preferential amount payable to

Series B preferred stockholders is $1.00 per share plus dividends

No dividends have been declared or paid with respect to

the Series B preferred stock.

The Series B Preferred stock is no

longer convertible to shares of the Company’s common stock.

At December 31, 2020 and 2019, cumulative dividends in arrears on

the outstanding Series B shares were $195,000 and $187,500,

respectively.

2000, the Board established a Series C preferred stock.

C preferred stock has preference over the Company’s common

stock and has voting rights equal to that number of shares

outstanding, but no conversion or dividend rights.

In the event of

dissolution or liquidation of the Company, the preferential amount

payable to Series C preferred stockholders is $0.55 per

2002, the Board established a Series D preferred stock, authorizing

the issuance of up to 2,500,000 shares.

The Series D preferred

stock has preference over the Company’s common stock but is

subordinate to the liquidation preferences of the holders of the

Company’s outstanding Series A, Series B and Series C

The composition of the Company’s warrants outstanding at December 31, 2021 is as follows:

Exercise price

Expiration date

Remaining life

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Preferred Stock

Series D preferred stock carries voting rights and

is entitled to annual dividends of $0.0235 per share.

The dividends

are cumulative and payable after payment and satisfaction of the

Series A, B and C preferred stock dividends.

No dividends have been

declared or paid with respect to the Series D preferred stock.

December 31, 2020 and 2019, the cumulative dividends in arrears on

the 1,751,005 outstanding Series D shares were $707,258 and

$666,109, respectively, payable if and when declared by the Board

of Directors.

In the event of dissolution or liquidation of the

Company, the preferential amount payable to Series D preferred

stockholders is $2.50 per share.

At December 31, 2020 and 2019, the

liquidation preference for Series D preferred stock was $5,084,770

and $5,043,622, respectively.

Holders of the Series D preferred

stock have the right, subject to the availability of authorized but

unissued common stock, to convert their shares into shares of the

Company's common stock on a one-to-one basis without payment of

additional consideration and are not redeemable unless by mutual

The majority of Series D preferred shares are held by the

Estate of John Lawrence, the previous President and Chairman of the

January 2000, the Company's Board of Directors resolved to create

the United States Antimony Corporation 2000 Stock Plan ("the

The purpose of the Plan is to attract and retain the best

available personnel for positions of substantial responsibility and

to provide additional incentive to employees, directors and

consultants to promote the success of the Company's business.

maximum number of shares of common stock or options to purchase

common stock that may be issued pursuant to the Plan is 500,000.

December 31, 2020 and 2019, 300,000 shares of the Company's common

stock had been previously issued under the Plan.

There were no

issuances under the Plan during 2020 and 2019.

and Other Taxes

the year ended December 31, 2020 and 2019, the Company recognized

no income tax benefit (provision).

foreign components of net loss from operations before income taxes

for the years ended December 31, 2020 and 2019, are as

$ 564,424  

$ 462,292  

$ (3,286,804 )

$ (3,672,891 )

income tax benefit differs from the amount of income tax determined

by applying the U.S.

federal income tax rate to pre-tax net loss

for the years ended December 31, 2020 and 2019 due to the

benefit at federal statutory rate

income tax effect

Non-deductible

to prior year tax estimates - Domestic

580,408  

to prior year tax estimates - Foreign

641,438  

on change in foreign exchange rate

75,899  

103,218  

in valuation allowance - Domestic

926,873  

in valuation allowance - Foreign

992,458  

   Total

December 31, 2020 and 2019, the Company had net deferred tax assets

net operating loss carry forward

$ 688,278  

$ 1,111,779  

net operating loss carry forward

2,616,038  

1,623,580  

      Deferred

3,304,316  

2,735,359  

allowance (domestic)

allowance (foreign)

      Total

deferred tax asset

59,830  

89,950  

tax liability:

   Property,

plant, and equipment

   Other

     Total

deferred tax liability

deferred tax asset

and Other Taxes, continued:

December 31, 2020 and 2019, the Company had deferred tax assets

arising principally from net operating loss carry forwards for

income tax purposes.

As management cannot determine that it is more

likely than not the benefit of the net deferred tax asset will be

realized, a valuation allowance equal to 100% of the net deferred

tax asset has been recorded at December 31, 2020 and

December 31, 2020, the Company has federal net operating loss

(“NOL”) carry forwards of approximately $0.7 million

that expire at various dates between 2034 and 2037.

the Company has federal NOL carry forwards of $1.1 million that

will never expire but utilization of which is limited to 80% of

taxable income in any future year.

The Company has Montana state

NOL carry forwards of approximately $3.4 million which expire

between 2021 and 2027, and Idaho state NOL carry forwards of

approximately $2.4 million, which expire between 2034 and 2039.

Company has approximately $7.9 million of Mexican NOL carry

forwards which expire between 2024 and 2029.

2018, the Company acquired two subsidiaries have net operating loss

carryforwards in Mexico of approximately $800,000.

Due to tax code

limitations, it is likely that a portion of this carryforward will

not be available to offset the Company’s future taxable

income in Mexico.

the years ended December 31, 2020 and 2019, there were no material

uncertain tax positions taken by the Company.

The Company’s

United States income tax filings are subject to examination for the

years 2017 through 2019, and 2016 through 2019 in Mexico.

Company charges penalties on assessments to general and

administrative expense and charges interest to interest

The Company’s Articles of Incorporation authorize 10,000,000 shares of $0.01 par value preferred stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine.

During 1993, the Board established a Series B preferred stock, consisting of 750,000 shares.

The Series B preferred stock has preference over the Company’s common stock and Series A preferred stock (none of which are outstanding);

has no voting rights (absent default in payment of declared dividends);

and is entitled to cumulative dividends of $0.01 per share per year, payable if and when declared by the Board of Directors.

During each of the years ended December 31, 2021 and 2020 the Company recognized $7,500 in Series B preferred stock dividend.

In the event of dissolution or liquidation of the Company, the preferential amount payable to Series B preferred stockholders is $1.00 per share plus dividends in arrears.

No dividends have been declared or paid with respect to the Series B preferred stock.

The Series B Preferred stock is no longer convertible to shares of the Company’s common stock.

At December 31, 2021 and 2020, cumulative dividends in arrears on the outstanding Series B shares were $202,500 and $195,000, respectively.

During 2000, the Board established a Series C preferred stock.

The Series C preferred stock has preference over the Company’s common stock and has voting rights equal to that number of shares outstanding, but no conversion or dividend rights.

In the event of dissolution or liquidation of the Company, the preferential amount payable to Series C preferred stockholders is $0.55 per share.

During 2002, the Board established a Series D preferred stock, authorizing the issuance of up to 2,500,000 shares.

The Series D preferred stock has preference over the Company’s common stock but is subordinate to the liquidation preferences of the holders of the Company’s outstanding Series A, Series B and Series C preferred stock.

Series D preferred stock carries voting rights and is entitled to annual dividends of $0.0235 per share.

The dividends are cumulative and payable after payment and satisfaction of the Series A, B and C preferred stock dividends.

No dividends have been declared or paid with respect to the Series D preferred stock.

During the year ended December 31, 2021, 58,333 shares of Series D preferred stock was converted to 58,333 shares of the Company’s common stock.

As part of this conversion, the shareholder was issued 64,184 shares of the Company’s common stock to satisfy cumulative dividends associated with the preferred shares.

At December 31, 2021 and 2020, the cumulative dividends in arrears on the outstanding Series D shares were $747,952 and $707,258, respectively, payable if and when declared by the Board of Directors.

In the event of dissolution or liquidation of the Company, the preferential amount payable to Series D preferred stockholders is $2.50 per share.

At December 31, 2021 and 2020, the liquidation preference for Series D preferred stock was $4,979,632 and $5,084,770, respectively.

Holders of the Series D preferred stock have the right, subject to the availability of authorized but unissued common stock, to convert their shares into shares of the Company’s common stock on a one-to-one basis without payment of additional consideration and are not redeemable unless by mutual consent.

The majority of Series D preferred shares are held by the estate of John Lawrence, the previous President and Chairman of the Company.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

2000 Stock Plan

In January 2000, the Company’s Board of Directors resolved to create the United States Antimony Corporation 2000 Stock Plan (“the Plan”).

The purpose of the Plan is to attract and retain the best available personnel for positions of substantial responsibility and to provide additional incentive to employees, directors and consultants to promote the success of the Company’s business.

The maximum number of shares of common stock or options to purchase common stock that may be issued pursuant to the Plan is 500,000.

At December 31, 2021 and 2020, 300,000 shares of the Company’s common stock had been previously issued under the Plan.

There were no issuances under the Plan during 2021 and 2020.

Income and Other Taxes

During the year ended December 31, 2021 and 2020, the Company recognized no income tax benefit (provision).

Domestic and foreign components of net loss from operations before income taxes for the years ended December 31, 2021 and 2020, are as follows:

The income tax benefit differs from the amount of income tax determined by applying the U.S.

federal income tax rate to pre-tax net loss for the years ended December 31, 2021 and 2020 due to the following:

At December 31, 2020 and 2019, the Company had net deferred tax assets as follows:

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

At December 31, 2021 and 2020, the Company had deferred tax assets arising principally from net operating loss carry forwards for income tax purposes.

As management cannot determine that it is more likely than not the benefit of the net deferred tax asset will be realized, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at December 31, 2021 and 2020.

At December 31, 2021, the Company has federal net operating loss (“NOL”) carry forwards of approximately $290,000 that expire at various dates between 2036 and 2037.

In addition, the Company has federal NOL carry forwards of $666,000 that will never expire but utilization of which is limited to 80% of taxable income in any future year.

The Company has Montana state NOL carry forwards of approximately $2.3 million which expire between 2022 and 2026, and Idaho state NOL carry forwards of approximately $1.4 million, which expire between 2033 and 2035.

The Company has approximately $5.2 million of Mexican NOL carry forwards which expire between 2025 and 2030.

In 2018, the Company acquired two subsidiaries have net operating loss carryforwards in Mexico of approximately $800,000.

Due to limitations, it is likely that a portion of this carryforward will not be available to offset the Company’s future taxable income in Mexico.

During the years ended December 31, 2021 and 2020, there were no material uncertain tax positions taken by the Company.

The Company’s United States income tax filings are subject to examination for the years 2019 through 2021, and 2018 through 2021 in Mexico.

The Company charges penalties on assessments to general and administrative expense and charges interest to interest expense.

Mexican Tax Assessment

2015, the Mexican tax authority (“SAT”) initiated an

audit of the USAMSA’s 2013 income tax return.

2016, as a result of its audit, SAT assessed the Company $13.8

million pesos, which was approximately $666,400 in U.S.

(“USD”) as of December 31, 2016.

SAT’s assessment

was based on the disallowance of specific costs that the Company

deducted on the 2013 USAMSA income tax return.

The Company engaged

accountants and tax attorneys in Mexico to defend its position.

assessment was settled in 2018 with no assessment against the

early 2019, the Company was notified that SAT re-opened its

assessment of USAMSA’s 2013 income tax return and, in

November 2019, SAT assessed the Company $16.3 million pesos, which

was approximately $821,000 USD as of December 31,

Management reviewed

the 2019 assessment notice from SAT and, similar to the earlier

assessment, believes the findings have no merit.

engaged a tax attorney in Mexico to defend its position.

was filed by the Company in November 2019 suspending SAT from

taking immediate action regarding the assessment.

posted a guarantee of the amount in March 2020 as is required under

the appeal process.

In August 2020, the Company filed a lawsuit

against SAT for resolution of the process and, in December 2020,

filed closing arguments.

Management expects the appeal process to

continue through 2021.

December 31, 2020, management assessed the possible outcomes for

this tax audit and believes, based on discussions with its tax

attorney in Mexico, that the most likely outcome will be that the

Company will be successful in its appeal resulting in no tax due.

Management determined that no amount should be accrued at December

31, 2020 relating to this potential tax liability.

There can be no

assurance that the Company’s ultimate liability, if any, will

not have a material adverse effect on the Company’s results

of operations or financial position.

issue addressed during the SAT audit is resolved in a manner

inconsistent with management expectations, the Company will adjust

its current net operating loss carryforward, or accrue penalties,

interest, and tax associated with the assessment.

and Other Taxes, continued:

In 2016, the Company, through its wholly owned subsidiary USAMSA,

imported coal from the United States to its smelter in Mexico to

process Australian concentrates associated with the Hillgrove

agreement (Note 10).

At that time, the Company applied for and was

granted a Maquiladora (IMMEX) which the Company believed provided

an exemption from paying a 16% value-added tax (IVA) on imported

goods to Mexico that were ultimately exported in altered form.

this understanding, the Company did not pay IVA on coal it imported

to process the Australian concentrates.

In 2020, the Company was

informed by the SAT that it owed the 16% IVA for the coal it had

imported from 2016 to 2018.

The initial assessment from SAT

included penalties and fees.

In late 2020, the Company filed a

motion before the Taxpayer's Defense Agency but the motion was

To avoid incurring additional penalties, the Company

elected to pay the assessed amount in early 2021.

ended December 31, 2020, the Company recognized an export tax

expense of $1,120,730 and accrued a liability for this assessment.

Upon payment in early 2021, the Company believes that this matter

Related-Party

On June 16, 2020, John C.

Lawrence, the

Company’s previous Chief Executive Officer and Chairman of

the Board of Directors, passed away.

The Company’s Executive

Vice-President, John C.

Gustaven, has been appointed to interim

Chief Executive Officer.

Russell Lawrence, son of Mr.

Lawrence, has

been appointed the Company’s interim President and is the executor of Mr.

Lawrence’s estate.

Lawrence rented equipment to the Company and charged the Company

for lodging and meals provided to consultants, customers and other

parties by an entity that Mr.

In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return.

In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $666,400 in U.S.

Dollars (“USD”) as of December 31, 2016.

SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return.

The assessment was settled in 2018 with no assessment against the Company.

In early 2019, the Company was notified that SAT re-opened its assessment of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $795,000 USD as of December 31, 2021.

Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit.

An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment.

The Company posted a guarantee of the amount in March 2020 as is required under the appeal process.

In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments.

Management expects the appeal process to continue through 2022.

At December 31, 2021, management assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorney in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due.

Management determined that no amount should be accrued at December 31, 2021 or December 31, 2020 relating to this potential tax liability.

There can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position.

If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its current net operating loss carryforward, or accrue penalties, interest, and tax associated with the assessment.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

In 2016, USAMSA imported coal from the United States to its smelter in Mexico to process Australian concentrates associated with the Hillgrove agreement (Note 9).

At that time, the Company applied for and was granted a Maquiladora (IMMEX), in accordance with a Manufacturing and Export Services Industry program offered by the Mexican government to attract and promote foreign investment in Mexico.

With the IMMEX, all imported goods to Mexico that are also exported in altered form are exempt from the requirement of paying the 16% tax (IVA).

The Company did not pay IVA on any of the imported coal used to process the Australian concentrates.

In 2020, the Company was informed by the SAT that it owed the 16% IVA money for all the coal imported for the processing of the Australian concentrates.

Additionally, there were penalties and fees that SAT added to the total amount.

In late 2020, the Company filed a motion before the Taxpayer’s Defense Agency (PRODECON), but the motion was denied.

To avoid exorbitant penalties, the Company elected to pay the assessed amount in early 2021.

For the year ended December 31, 2020, the Company recognized an export tax expense of $1,120,730 and accrued a liability for this assessment.

The amount was paid in early 2021.

Related-Party Transactions

John Lawrence, the Company’s previous Chief Executive Officer and Chairman of the Board of Directors, rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr.

Lawrence owned.

The amount due to Mr.

Lawrence as of December 31, 2020 and 2019 was $171,017 and

$156,975, respectively.

Lawrence as of December 31, 2020 was $171,017.

During 2021, the Company paid the full amount of $171,017 to John Lawrence’s estate for reimbursement of these expenses.

Expenses paid to Mr.

Lawrence for the years

ended December 31, 2020 and 2019 were $1,533 and $9,799,

2019, John Lawrence made advances to the Company totaling $227,200,

of which $170,985 had been repaid as of December 31, 2020, leaving

a balance of $56,215.

During 2020, a portion of this amount was in

the form of the exercise of a warrant held by Mr.

250,000 shares of common stock at an exercise price of $0.25 or

Gustaven advanced the Company $10,200 during 2019, of which $10,000

had been repaid as of December 31, 2020, leaving a balance of

and Contingencies

Company pays various royalties on the sale of zeolite products.

a combined basis, royalties vary from 8%-13%.

During the year ended

December 31, 2020 and 2019, the Company had royalty expense of

$224,875 and $266,388, respectively.

At December 31, 2020 and 2019,

the Company had accrued royalties payable of $434,981 and $280,314,

respectively.

The Company is currently in negotiations with certain

royalty holders to modify the terms of the agreements.

Company is currently organized and managed by four segments, which

represent the three operating units:

United States antimony,

Mexican antimony, United States zeolite, and precious metals.

Company’s other operating costs include general and

administrative expenses, freight and delivery, and other

non-production related costs.

Other income and expense consist

primarily of non-operating income and interest

Madero smelter and Puerto Blanco mill at the Company’s Mexico

operation brings antimony up to a finished product or an

intermediate stage, which is then either shipped directly to

customers or to the United States operation for finishing and sales

at the Thompson Falls, Montana plant.

The Zeolite operation

produces zeolite near Preston, Idaho.

Almost all of the sales of

products from the United States antimony and zeolite operations are

to customers in the United States.

Precious metal recovered from

the antimony process in the United States and Mexico is typically

sold to customers in the United States and Canada.

disclosures regarding sales to major customers and for property,

plant, and equipment are located in Notes 3 and 6,

respectively.

For the Years Ended

Lawrence for the year ended December 31, 2020 were $1,533.

During 2020, an advance of $56,215 due to John Lawrence was satisfied with the exercise of a warrant held by Mr.

Lawrence for 250,000 shares of common stock at an exercise price of $0.25 or $62,500.

During the year ended December 31, 2021, Russ Lawrence, President and Director, incurred expenses of $24,510 and charged the Company for lodging and meals provided to visiting Board of Directors by an entity that Russ Lawrence owns.

During the year ended December 31, 2021, the Company paid Russ Lawrence $27,290, leaving a balance due of $1,846 which is included in accounts payable on the balance sheet.

Commitments and Contingencies

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”).

Using appropriate regulatory channels, management may contest these proposed assessments.

At December 31, 2021 and 2020, the Company had accrued liabilities of $Nil and $246, respectively, relating to such assessments.

The Company pays various royalties on the sale of zeolite products.

On a combined basis, royalties vary from 8%-13%.

During the year ended December 31, 2021 and 2020, the Company had royalty expense of $262,861 and $224,875, respectively.

At December 31, 2021 and 2020, the Company had accrued royalties payable of $346,242 and $434,981, respectively.

The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Business Segments

The Company is currently organized and managed by four segments, which represent the three operating units:

United States antimony, Mexican antimony, United States zeolite, and precious metals.

The Company’s other operating costs include general and administrative expenses, freight and delivery, and other non-production related costs.

Other income and expense consist primarily of non-operating income and interest expense.

The Madero smelter and Puerto Blanco mill at the Company’s Mexico operation brings antimony up to a finished product or an intermediate stage, which is then either shipped directly to customers or to the United States operation for finishing and sales at the Thompson Falls, Montana plant.

The Zeolite operation produces zeolite near Preston, Idaho.

Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States.

Precious metal recovered from the antimony process in the United States and Mexico is typically sold to customers in the United States and Canada.

Segment disclosures regarding sales to major customers and for property, plant, and equipment are located in Notes 3 and 6, respectively.

For the years ended December 31,

Total Assets:

$ 2,798,283  

$ 2,166,041  

7,953,190  

9,193,521  

10,751,473  

11,359,562  

$ 130,882  

$ 143,605  

803,003  

424,133  

United States

Subtotal antimony

Precious metals

933,885  

567,738  

1,614,144  

1,766,675  

   Total

$ 13,299,502  

$ 13,693,975  

For the Years Ended

United States

Subtotal precious metals

For the years ended December 31,

Capital expenditures:

$ 32,448  

$ 8,429  

38,456  

705,123  

70,904  

713,552  

10,219  

21,086  

147,978  

United States

Subtotal antimony

Precious metals

158,197  

21,086  

13,990  

58,287  

   Total

$ 243,091  

$ 792,925  

Segments, continued:

United States

Subtotal precious metals

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

Segment Operations for the Year

Ended December 31, 2021

$ 2,942,628  

$ 174,079  

$ 2,118,823  

$ 5,235,530  

and amortization

$ 25,809  

$ 590,579  

$ 616,388  

$ 86,835  

$ 182,620  

$ 885,843  

(loss) from operations

$ 192,511  

$ (3,851,228 )

Total revenues

Depreciation and amortization

Income (loss) from operations

$ (2,027,313 )

$ 87,244  

$ 266,731  

$ (1,088,399 )

income (expense):

21,808  

17,938  

Other income (expense):

NET INCOME (LOSS)

$ 214,319  

$ (1,913,891 )

$ (3,636,909 )

$ 87,244  

$ 262,861  

$ (3,286,804 )

Segment Operations for the Year

Ended December 31, 2020

$ 5,450,649  

$ 194,239  

$ 2,623,117  

$ 8,268,005  

and amortization

$ 43,738  

$ 596,719  

$ 640,457  

$ 69,067  

$ 186,466  

$ 895,990  

(loss) from operations

Total revenues

Depreciation and amortization

Income (loss) from operations

$ (3,851,228 )

$ (3,658,717 )

$ 125,172  

$ 513,052  

$ (3,304,742 )

income (expense):

103,940  

87,798  

72,216  

Other income (expense):

NET INCOME (LOSS)

1 unchanged sentence

$ (3,636,909 )

$ 125,172  

$ 497,470  

$ (3,286,804 )

April 20, 2020, the Company received a loan of $443,400 pursuant to

the Paycheck Protection Program (the “PPP”) under

Division A, Title I of the CARES Act, which was enacted March 27,

The loan, which was in the form of a Note dated April 20,

2020 had a maturity date on April 19, 2022 and an interest rate of

1% per annum.

It is anticipated that the loan will be forgiven

under the provisions of the CARES Act because the Company used the

funds for qualifying expenses.

Qualifying expenses included payroll

costs, costs used to continue group health care benefits, rent, and

The amount of the PPP loan will be recognized as gain on

forgiveness of the CARES Act loan in the period the Company

receives formal notification of forgiveness.

first quarter of 2021, the Company raised $23,497,180 (net of

$1,499,820 in agent’s fees) in two separate transactions from

sale of shares of its common stock and warrants for general

corporate purposes, working capital, and to fund a geochemical,

geological and geophysical program at the Los Juarez

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2021 and 2020

CARES Act Loan

On April 20, 2020, the Company received a loan of $443,400 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020.

The loan, which was in the form of a Note dated April 20, 2020 had a maturity date on April 19, 2022 and an interest rate of 1% per annum.

The loan was to be forgiven under the provisions of the CARES Act if the Company used the funds for qualifying expenses.

Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent and utilities.

During the year ended December 31, 2021, the Company received notification that the loan had been forgiven.

The amount of the loan, $443,400, was recognized as gain on forgiveness of the CARES Act loan.

Subsequent Events

None to my knowledge

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-K

Item 9A. Controls and Procedures