What changed in this filing

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Item 1. Financial Statements

2022-08-16 compared with 2022-05-16 · 173 added, 98 removed, 274 unchanged (50% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2022

December 31, 2021

CURRENT ASSETS

2 unchanged sentences

Accounts receivable

Prepaid expenses

Inventories (NOTE 5)

Investments (NOTE 11)

Total current assets

Properties, plants and equipment, net

Properties, plants and equipment, net (NOTE 6)

Restricted cash for reclamation bonds

3 unchanged sentences

Accounts payable

Payable to related parties

Accrued liabilities

Long-term debt, current portion

Long-term debt, current portion (NOTE 8)

Total current liabilities

Long-term debt, net of current portion

Long-term debt, net of current portion (NOTE 8)

Stock payable to directors for services

8 unchanged sentences

177,904 shares issued and outstanding (liquidation preference $ 97,847 both periods)

1,692,672 shares issued and outstanding (liquidation preference $ 4,979,632 )

1,692,672 shares issued and outstanding (liquidation preference $ 4,979,632 both periods)

Common stock, $ 0.001 par value;

10 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the three months ended

March 31, 2022

March 31, 2021

Three months ended June 30,

Six months ended June 30,

COST OF REVENUE

3 unchanged sentences

Other operating expenses

Professional fees

Legal and professional fees

TOTAL OPERATING EXPENSES

2 unchanged sentences

Interest expense

Interest income

Interest and investment income

Change in fair value of investments

Trademark and licensing income

Gain on forgiveness – CARES Act debt

Gain on settlement of Hillgrove advance

TOTAL OTHER INCOME (EXPENSE)

NET INCOME (LOSS)

Preferred dividends

Net income (loss) available to common stockholders

$ ( 347,650 )

Net income (loss) per share of common stock:

Net income available to common stockholders

Net income per share of common stock

Basic and diluted

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

For the three months ended March 31, 2022 and 2021

For the three and six months ended June 30, 2022 and 2021

Total Preferred Stock

10 unchanged sentences

$ ( 32,986,282 )

Common stock issued for exercise of warrants

BALANCE, June 30, 2021

$ ( 32,649,141 )

BALANCE, December 31, 2021

2 unchanged sentences

$ ( 31,925,011 )

BALANCE, June 30, 2022

$ ( 31,563,788 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the three months ended

March 31, 2022

March 31, 2021

Six months ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ ( 335,488 )

Adjustments to reconcile net loss to net cash used by operating activities

Adjustments to reconcile net income to net cash used by operating activities:

Depreciation and amortization

1 unchanged sentence

Common stock payable for directors fees

Gain on settlement of Hillgrove advance

Gain on forgiveness of Cares Act debt

Write down of inventory to net realizable value

Other non-cash items

Change in fair value of investments

Changes in operating assets and liabilities:

Accounts receivable

Prepaid expenses

IVA receivable and other assets

7 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from redemption of certificates of deposit

Purchase of investments

( 13,789,772 )

Proceeds from sales of investments

Purchase of properties, plants and equipment

Net cash used by investing activities

Net cash provided (used) by investing activities

( 13,775,850 )

CASH FLOWS FROM FINANCING ACTIVITIES:

3 unchanged sentences

Proceeds from exercise of warrants

Payments on Hillgrove advances payable

Principal paid on notes payable to bank

2 unchanged sentences

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS AT END OF PERIOD

( 13,050,579 )

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD

NON-CASH FINANCING AND INVESTING ACTIVITIES:

Equipment purchased with note payable

Common stock payable to directors

Payable to related party satisfied with exercise of stock purchase warrants

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

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

June 30, 2022

NOTE 1 - NATURE OF OPERATIONS

21 unchanged sentences

Zeolite is also used for water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation and other miscellaneous applications.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2022, and its results of operations for the three months ended March 31, 2022, and 2021, and cash flows for the three months ended March 31, 2022 and 2021.

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2022, and its results of operations for the three and six months ended June 30, 2022, and 2021, and cash flows for the six months ended June 30, 2022 and 2021.

The condensed consolidated balance sheet at December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

Operating results for the three and six month periods ended June 30, 2022, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022.

These unaudited interim financial statements have been prepared by management in accordance with generally accepted accounting principles used in the United States of America (“U.S.

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

June 30, 2022

Reclassifications

9 unchanged sentences

Therefore, the Company cannot estimate the potential future impact to its financial position, results of operations and cash flows, but the impacts could be material.

The Company determines the appropriate classification of investments at the time of acquisition and re-evaluates such determinations at each reporting date.

Equity securities that have a readily determinable fair value are carried at fair value determined using Level 1 fair value measurement inputs with the change in fair value recognized as unrealized gain (loss) in the consolidated statement of operations each reporting period.

Gains and losses on the sale of securities are recognized on a specific identification basis.

New Accounting Pronouncements

3 unchanged sentences

Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and warrants.

For the three months ended March 31, 2022, the calculation of diluted income per common share included 149,400 warrants to purchase one share of common stock.

At March 31, 2022 and 2021, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

March 31, 2022

March 31, 2021

At June 30, 2022 and 2021, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

Convertible preferred stock

TOTAL POSSIBLE DILUTIVE SHARES

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 4 – REVENUE RECOGNITION

4 unchanged sentences

includes unrefined and refined gold and silver

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

Sales of products for the three-months ended March 31, 2022 and 2021 were as follows:

Sales of products for the three-months ended June 30, 2022 and 2021 were as follows:

For the three months ended

March 31, 2022

March 31, 2021

Precious metals

TOTAL REVENUE BY PRODUCT

The Company’s trade accounts receivable balance related to contracts with customers was $ 1,475,853 at March 31, 2022 and $ 891,314 at December 31, 2021.

Sales of products for the six months ended June 30, 2022 and 2021 were as follows:

For the six months ended

Precious metals

TOTAL REVENUE BY PRODUCT

For the three and six months ended June 30, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment.

For the three and six months ended June 30, 2022, trademark and licensing income of $ 60,775 is included in other income in the antimony business segment (Note 12).

For the three and six months ended June 30, 2021, trademark and licensing income was $Nil.

The Company’s trade accounts receivable balance related to contracts with customers was $ 1,604,660 at June 30, 2022 and $ 891,314 at December 31, 2021.

The Company’s products do not involve any warranty agreements and product returns are not typical.

NOTE 5– INVENTORIES

Inventories at March 31, 2022 and December 31, 2021 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out cost or estimated net realizable value.

Inventories at June 30, 2022 and December 31, 2021 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out 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.

Inventories at March 31, 2022 and December 31, 2021 are as follows:

March 31, 2022

December 31, 2021

Inventories at June 30, 2022 and December 31, 2021 are as follows:

Antimony Metal

3 unchanged sentences

TOTAL INVENTORIES

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Inventories are valued at cost except for the portion related to Mexican operations which are valued at net realizable value because the production costs of the Mexican inventory were greater than the amount the Company expected to receive on the sale of the pounds of antimony contained in inventory.

The adjustment to inventory, which is included in cost of revenue on the statements of operations was $ 136,836 and $ 66,054 for the six months ended June 30, 2022 and 2021, respectively.

Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico.

1 unchanged sentence

The Company’s zeolite inventory consists of saleable zeolite material.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at March 31, 2022 and December 31, 2021 are shown below:

The major components of the Company’s properties, plants and equipment by segment at June 30, 2022 and December 31, 2021 are shown below:

Antimony Segment

1 unchanged sentence

Precious Metals

March 31, 2022

June 30, 2022

Plant and equipment

Mineral rights and interests

Construction in progress

Land and other

9 unchanged sentences

Plant and equipment

Mineral rights and interests

Construction in progress

Land and other

4 unchanged sentences

( 12,110,098 )

At March 31, 2022 and December 31, 2021, the Company had $ 956,965 and $ 665,175 , respectively, of assets that were not yet placed in service and have not yet been depreciated.

At June 30, 2022 and December 31, 2021, the Company had $ 613,035 and $ 665,175 , respectively, of assets that were not yet placed in service and have not yet been depreciated.

Page 10 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 7 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the three months ended March 31, 2022 and 2021 are as follows:

Three months ended March 31,

Changes in the asset retirement obligation for the three and six months ended June 30, 2022 and 2021 are as follows:

Three months ended June 30,

Asset retirement obligation, beginning of period

Change in estimate of asset retirement obligation

Accretion expense

Asset retirement obligation, end of period

The Company’s total asset retirement obligation and accrued reclamation costs of $ 300,318 and $ 298,649 , at March 31, 2022 and December 31, 2021, respectively, include reclamation obligations for the Idaho and Montana operations of $ 107,500 .

Page 10 of 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

Six months ended June 30,

Asset retirement obligation, beginning of period

Change in estimate of asset retirement obligation

Accretion expense

Asset retirement obligation, end of period

The Company’s total asset retirement obligation and accrued reclamation costs of $ 325,657 and $ 298,649 , at June 30, 2022 and December 31, 2021, respectively, includes reclamation obligations for the Idaho and Montana operations of $ 107,500 .

NOTE 8 – DEBT

Long term debt at March 31, 2022 and December 31, 2021 is as follows:

March 31, 2022

Long term debt at June 30, 2022 and December 31, 2021 is as follows:

June 30, 2022

December 31, 2021

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;

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

Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024;

collateralized by 2007 Caterpillar 740 articulated truck

Less current portion

Long term portion

At March 31, 2022, principal payments on debt are due as follows:

Twelve months ending March 31,

At June 30, 2022, principal payments on debt are due as follows:

Twelve months ending June 30,

Principal payment

Page 11 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company follows U.S.

GAAP guidance in determining its accrual and disclosures with respect to loss contingencies, and evaluate such accruals and contingencies for each reporting period.

Accordingly, 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.

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 March 31, 2022 and December 31, 2021, the Company had accrued liabilities of $ 1,270 and $Nil, respectively, relating to such assessments, which is included in accrued liabilities on the condensed consolidated balance sheets.

At June 30, 2022 and December 31, 2021, the Company had accrued liabilities of $ 1,270 and $Nil, 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 three months ended March 31, 2022 and 2021, the Company incurred royalty expense of $ 62,030 and $ 62,130 , respectively.

Royalty expense is included in cost of goods sold on the Statement of Operations.

At March 31, 2022 and December 31, 2021, the Company had accrued royalties payable of $ 381,054 and $ 346,242 , respectively, which is included in accrued liabilities on the condensed consolidated balance sheets.

During the three months ended June 30, 2022 and 2021, the Company incurred royalty expense of $ 85,870 and $ 69,437 , respectively.

During the six months ended June 30, 2022 and 2021, the Company incurred royalty expense of $ 147,900 and $ 131,567 respectively.

Royalty expense is included in cost of goods sold on the condensed consolidated statement of operations.

At June 30, 2022 and December 31, 2021, the Company had accrued royalties payable of $ 409,887 and $ 346,242 respectively, which is included in accrued liabilities on the condensed consolidated balance sheets.

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

NOTE 10 – STOCKHOLDERS’ EQUITY

During the three months ended March 31, 2021, the Company sold shares of its common stock in two separate transactions:

During the six months ended June 30, 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 ;

1 unchanged sentence

A total of $ 1,654,820 of issuance costs were incurred on these sales.

During the three months ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $ 1,763,619 in cash from the exercise of warrants.

During the three months ended March 31, 2022 and March 31, 2021, the Company expensed $ 28,125 and $ 28,125 , respectively, in directors’ fees payable that will be paid in common stock.

The Company issued no shares of common stock during the three months ended March 31, 2022.

Page 11 of 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

During the six months ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $ 1,790,703 in cash from the exercise of warrants.

During the three months ended June 30, 2022 and June 30, 2021, the Company expensed $ 46,875 and $ 28,125 , respectively, in directors’ fees payable that are anticipated to be paid in common stock.

During the six months ended June 30, 2022 and June 30, 2021, the Company expensed $ 75,000 and $ 28,125 , respectively in directors’ fees payable

At June 30, 2022 and December 31, 2021, the accrued balance of stock payable to directors fees for services was $ 187,500 and $ 112,500 , respectively.

The Company issued no shares of common stock during the three or six months ended June 30, 2022.

During the three and six months ended June 30, 2022, no warrants were exercised.

Common stock warrants

2 unchanged sentences

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.

The Company issued no warrants to purchase common stock during the three months ended March 31, 2022.

There were no warrants exercised during the three or six months ended June 30, 2022.

The Company issued no warrants to purchase common stock during the three or six months ended June 30, 2022.

Page 12 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

5 unchanged sentences

$ 0.46 - $ 0.65

Balance outstanding at December 31, 2021 and March 31, 2022

The composition of the Company’s warrants outstanding at March 31, 2022 is as follows:

Balance outstanding at December 31, 2021 and June 30, 2022

The composition of the Company’s warrants outstanding at June 30, 2022 is as follows:

Number of warrants

2 unchanged sentences

Remaining life (years)

NOTE 11 – INVESTMENTS

In April 2022, the Company opened an investment account composed of U.S.

Treasury bonds which are measured using Level 1 fair value inputs that are based on quoted prices in active markets.

For the three and six months ended June 30, 2022, the Company recognized $ 93,458 in the change in fair value of investments on the condensed consolidated statement of operations.

As of June 30, 2022, the cost and fair value of the investment portion of the account was $ 13,492,655 and $ 13,431,774 , respectively.

As of June 30, 2022, the cash and cash equivalent portion of the account was $ 132,380 , which is included in cash and cash equivalents on the condensed consolidated balance sheet.

NOTE 12 – BUSINESS SEGEMENTS

1 unchanged sentence

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

Page 13 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant.

3 unchanged sentences

Almost all of the sales of products from the United States antimony and zeolite operations are to customers in the United States, although the Company does have a sales operation in Canada.

Page 12 of 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

For the three months ended June 30,

For the six months ended June 30,

Capital expenditures

United States

Subtotal antimony

Precious metals

Total Assets:

March 31, 2022

December 31, 2021

United States

3 unchanged sentences

Subtotal precious metals

For the three months ended

Capital expenditures:

March 31, 2022

March 31, 2021

United States

Subtotal antimony

Page 14 of 32

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2022

Segment operations for the three months ended June 30, 2022

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Total revenues

Depreciation and amortization

Income from operations

Other income (expense)

Page 15 of 32

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2022

Segment operations for the three months ended March 31, 2022

June 30, 2022

Segment operations for the three months ended June 30, 2021

Antimony - USA

6 unchanged sentences

$ ( 575,363 )

$ ( 475,721 )

$ ( 232,190 )

Other income (expense)

$ ( 461,941 )

Segment operations for the six months ended June 30, 2022

Antimony - USA

Antimony -Mexico

Total antimony

Precious Metals

Total revenues

Depreciation and amortization

Income (loss) from operations

$ ( 659,641 )

Other income (expense)

NET INCOME (LOSS)

$ ( 659,641 )

Segment operations for the three months ended March 31, 2021

Segment operations for the six months ended June 30, 2021

Antimony - USA

13 unchanged sentences

$ ( 356,176 )

$ ( 450,602 )

$ ( 335,488 )

NOTE 13 – SUBSEQUENT EVENTS

On August 8, 2022, the Company executed a Purchase Option Agreement (the ‘agreement”) with SB Wadley SA de CV (“Wadley”) whereby the Company leases, with an option to acquire, mining claims located in Mexico known as the Wadley Property.

Under the agreement, the Company will pay Wadley eight monthly installments of $ 11,600 for the right to mine and conduct geological and resource studies on the Wadley Property.

At the end of the eight months, should the Company choose to exercise the option following due diligence and assessment of geological and resource studies, the Company will pay Wadley $ 2,230,000 and seven annual payments of $ 1,160,000 .

Page 16 of 32

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

What changed 10-Q

Item 1. Financial Statements