UNITED STATES ANTIMONY CORP 10-Q

ITEM 1. FINANCIAL STATEMENTS UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 15,361,064 $ 19,060,378 Certificates of deposit 259,856 259,857 Accounts receivable, net 1,704,276 784,457 Inventories 1,610,216 1,375,068 Prepaids expenses and other current assets 279,451 137,599 Total current assets 19,214,863 21,617,359 Properties, plants and equipment, net 12,518,653 12,128,124 Restricted cash for reclamation bonds 57,288 57,288 IVA receivable and other assets 1,070,955 897,679 Total assets $ 32,861,759 $ 34,700,450 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 835,652 $ 628,803 Accrued liabilities 169,422 201,149 Accrued liabilities – directors and related parties 92,709 72,963 Royalties payable 15,884 435,075 Dividends payable - 787,730 Long-term debt, current portion 95,573 94,150 Total current liabilities 1,209,240 2,219,870 Long-term debt, net of current portion 193,410 217,855 Stock payable to directors for services 61,459 61,459 Asset retirement obligations and accrued reclamation costs 335,379 332,011 Total liabilities 1,799,488 2,831,195 COMMITMENTS AND CONTINGENCIES (NOTE 9) STOCKHOLDERS’ EQUITY Preferred stock, $ 0.01 par value; 10,000,000 shares authorized: Series A: 0 shares issued and outstanding - - Series B: 750,000 shares issued and outstanding (liquidation preference $ 961,875 and $ 960,000 , respectively) 7,500 7,500 Series C: 177,904 shares issued and outstanding (liquidation preference $ 97,847 both periods) 1,779 1,779 Series D: 0 and 1,692,672 shares issued and outstanding (liquidation preference $ 0 and $ 5,019,410 , respectively) - 16,926 Common stock, $ 0.01 par value; 150,000,000 shares authorized; 107,647,317 shares issued and outstanding at March 31, 2023 and 106,373,341 shares issued and outstanding at December 31, 2022 1,076,472 1,063,732 Additional paid-in capital 63,853,836 64,052,630 Shares to be returned to treasury - ( 202,980 ) Accumulated deficit ( 33,877,316 ) ( 33,070,332 ) Total stockholders’ equity 31,062,271 31,869,255 Total liabilities and stockholders’ equity $ 32,861,759 $ 34,700,450 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. Page 3 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the three months ended March 31, 2023 March 31, 2022 REVENUE $ 2,210,844 $ 3,580,306 COST OF REVENUE 2,746,263 2,440,918 GROSS PROFIT (LOSS) ( 535,419 ) 1,139,388 OPERATING EXPENSES: General and administrative 155,594 160,681 Salaries and benefits 127,692 73,135 Other operating expenses 108,345 3,915 Professional fees 84,806 122,077 TOTAL OPERATING EXPENSES 476,437 359,808 INCOME (LOSS) FROM OPERATIONS ( 1,011,856 ) 779,580 OTHER INCOME (EXPENSE) Interest and investment income 122,372 9,654 Trademark and licensing income 7,525 - Other miscellaneous income (expense) 74,975 ( 2,982 ) TOTAL OTHER INCOME (EXPENSE) 204,872 6,672 NET INCOME (LOSS) ( 806,984 ) 786,252 Preferred dividends ( 1,875 ) ( 11,819 ) Net income (loss) available to common stockholders $ ( 808,859 ) $ 774,432 Net income (loss) per share of common stock: Basic and diluted $ ( 0.01 ) $ 0.01 Weighted average shares outstanding: Basic 107,260,472 106,240,361 Diluted 107,260,472 106,389,761 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. Page 4 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) For the three months ended March 31, 2023 and 2022 Preferred Stock Common Stock Additional Paid in Shares To Be Returned To Accumulated Total Stockholders’ Shares Amount Shares Amount Capital Treasury Deficit Equity BALANCE, December 31, 2021 2,620,576 $ 26,205 106,240,361 $ 1,062,402 $ 63,991,459 - $ ( 32,711,263 ) $ 32,368,803 Net income (loss) - - - - - - 786,252 786,252 BALANCE, March 31, 2022 2,620,576 $ 26,205 106,240,361 $ 1,062,402 $ 63,991,459 - $ ( 31,925,011 ) $ 33,155,055 BALANCE, December 31, 2022 2,620,576 $ 26,205 106,373,341 $ 1,063,732 $ 64,052,630 $ ( 202,980 ) $ ( 33,070,332 ) $ 31,869,255 Share buyback and retirement - - ( 418,696 ) ( 4,187 ) ( 198,793 ) 202,980 - - Conversion of Preferred Series D to Common Stock ( 1,692,672 ) ( 16,926 ) 1,692,672 16,927 ( 1 ) - - - Net income (loss) - - - - - - ( 806,984 ) ( 806,984 ) BALANCE, March 31, 2023 927,904 $ 9,279 107,647,317 $ 1,076,472 $ 63,853,836 - $ ( 33,877,316 ) $ 31,062,271 The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. Page 5 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the three months ended March 31, 2023 March 31, 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ ( 806,984 ) $ 786,252 Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: Depreciation and amortization 224,241 220,150 Accretion of asset retirement obligation 3,368 1,732 Common stock payable for directors fees - 28,125 Write-down of inventory to net realizable value 246,792 - Changes in operating assets and liabilities: Accounts receivable ( 919,819 ) ( 584,539 ) Inventories ( 481,940 ) 28,440 Prepaid expenses and other current assets ( 141,852 ) - IVA receivable and other assets ( 173,275 ) ( 41,023 ) Accounts payable 206,849 ( 278,178 ) Accrued liabilities ( 31,727 ) 2,944 Accrued liabilities – directors and related parties 19,746 - Royalties payable ( 419,191 ) - Net cash provided (used) by operating activities ( 2,273,792 ) 163,903 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of properties, plants and equipment ( 614,770 ) ( 188,541 ) Net cash used by investing activities ( 614,770 ) ( 188,541 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long-term debt ( 23,022 ) ( 4,057 ) Dividends paid ( 787,730 ) - Net cash used by financing activities ( 810,752 ) ( 4,057 ) NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH ( 3,699,314 ) ( 28,695 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD 19,117,666 21,420,329 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 15,418,352 $ 21,391,634 NON-CASH FINANCING AND INVESTING ACTIVITIES: Share retirement $ 202,980 $ - Conversion of Preferred Series D to Common Stock $ 16,927 $ - The accompanying notes are an integral part of these condensed consolidated unaudited financial statements. Page 6 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 NOTE 1 - NATURE OF OPERATIONS United States Antimony Corporation and its subsidiaries in the U.S. and Mexico (“USAC” or the “Company”) sell processed antimony, zeolite, and precious metals products in the U.S. and abroad. The Company processes antimony ore in the U.S. and Mexico primarily into antimony oxide and antimony metal at its facilities in Mexico and Montana. Our antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Our antimony metal is used in bearings, storage batteries, and ordnance. In its operations in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications. 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 March 31, 2023, and its results of operations and cash flows for the three months ended March 31, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. 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. GAAP”). These unaudited interim financial statements should be read in conjunction with the annual audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on July 18, 2023. This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. These accounting policies conform to U.S. GAAP and have been consistently applied in the preparation of the financial statements. Reclassifications Certain reclassifications have been made to conform prior period amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported. Recent Accounting Pronouncements Management does not believe that any recently issued but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Recently Adopted Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016 - 13, ” Financial Instruments – Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments ”, which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted the ASU on January 1, 2023 and determined that it had no material impact on the Company’s unaudited condensed consolidated financial statements and disclosures. Page 7 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 NOTE 3 – EARNINGS PER SHARE Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through convertible preferred stock, 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, 2023 and 2022, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive were as follows: March 31, 2023 March 31, 2022 Warrants 12,346,215 9,400,207 Convertible preferred stock - 1,692,672 TOTAL POSSIBLE DILUTIVE SHARES 12,346,215 11,092,879 NOTE 4 – REVENUE RECOGNITION Products consist of the following: · Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal · Zeolite: includes coarse and fine zeolite crushed in various sizes · Precious metals: includes unrefined and refined gold and silver Sales of products for the three months ended March 31, 2023 and 2022 were as follows: For the three months ended March 31, 2023 March 31, 2022 Antimony $ 1,612,639 $ 2,828,930 Zeolite 482,093 674,042 Precious metals 116,112 77,334 TOTAL REVENUE $ 2,210,844 $ 3,580,306 The Company’s trade accounts receivable balance related to contracts with customers was $ 1,704,276 at March 31, 2023 and $ 784,457 at December 31, 2022. The Company’s allowance for doubtful accounts related to trade accounts receivables was $ 50,000 at March 31, 2023 and $ 31,440 at December 31, 2022. The Company’s products do not involve any warranty agreements and product returns are not typical. Page 8 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 NOTE 5– INVENTORIES Inventories at March 31, 2023 and December 31, 2022 consisted primarily of finished antimony products, antimony metal, antimony oxide, and antimony ore, and finished zeolite products. Inventories are stated at the lower of first-in, first-out cost or estimated net realizable value. Finished antimony products, metal and oxide, and finished zeolite products costs include raw materials, direct labor, processing facility overhead costs and freight. Inventories at March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 Antimony Metal $ 221,137 $ 142,230 Antimony Oxide 303,167 509,643 Antimony Ore and Concentrates 762,378 545,373 Total antimony 1,286,682 1,197,246 Zeolite 323,534 177,822 TOTAL INVENTORIES $ 1,610,216 $ 1,375,068 At March 31, 2023 and December 31, 2022, inventories were valued at cost, except for the portion of inventory related to Mexican operations which was 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 antimony contained in inventory. The adjustment to inventory for net realizable value was $ 246,792 and $Nil for the three months ended March 31, 2023 and 2022, respectively. Antimony oxide and metal inventory consisted of finished product held at the Company’s plants in Montana and Mexico. Antimony ore and concentrates were held primarily at sites in Mexico. The Company’s zeolite inventory consisted of saleable zeolite material at the Company’s plant in Idaho. NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT The major components of the Company’s properties, plants and equipment by segment at March 31, 2023 and December 31, 2022 were as follows: Antimony Segment Zeolite Segment Precious Metals March 31, 2023 USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,764,475 $ 9,454,833 $ 5,216,880 $ 1,347,912 $ 17,784,100 Buildings 243,248 870,534 1,047,023 - 2,160,805 Land and other 2,431,387 2,826,037 16,753 - 5,274,177 Construction in progress - - 447,525 - 447,525 Total 4,439,110 13,151,404 6,728,181 1,347,912 25,666,607 Accumulated depreciation ( 2,776,083 ) ( 6,349,548 ) ( 3,444,034 ) ( 578,289 ) ( 13,147,954 ) Properties, Plants, and Equipment, Net $ 1,663,027 $ 6,801,856 $ 3,284,147 $ 769,623 $ 12,518,653 Antimony Segment Zeolite Segment Precious Metals December 31, 2022 USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,760,926 $ 9,090,860 $ 4,996,216 $ 1,347,912 $ 17,195,914 Buildings 243,248 870,534 1,047,023 - 2,160,805 Land and other 2,431,387 2,796,037 16,753 - 5,244,177 Construction in progress - 280,406 170,535 - 450,941 Total 4,435,561 13,037,837 6,230,527 1,347,912 25,051,837 Accumulated depreciation ( 2,767,803 ) ( 6,212,433 ) ( 3,392,861 ) ( 550,616 ) ( 12,923,713 ) Properties, Plants, and Equipment, Net $ 1,667,758 $ 6,825,404 $ 2,837,666 $ 797,296 $ 12,128,124 Page 9 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 At March 31, 2023 and December 31, 2022, the Company had $ 1,132,474 and $ 1,117,041 , respectively, of assets that were not yet placed in service and were not yet depreciated. NOTE 7 – DEBT Long term debt at March 31, 2023 and December 31, 2022 was as follows: March 31, 2023 December 31, 2022 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 $ 198,795 $ 201,908 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 90,188 110,097 Total debt 288,983 312,005 Less current portion of debt ( 95,573 ) ( 94,150 ) Long term portion of debt $ 193,410 $ 217,855 At March 31, 2023, principal payments on debt were due as follows: Twelve months ending March 31, Principal payment 2024 $ 95,573 2025 20,021 2026 13,144 2027 160,245 $ 288,983 NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company follows U.S. GAAP guidance in determining its accruals and disclosures with respect to loss contingencies and evaluates 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 loss 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, 2023 and December 31, 2022, the Company had no accrued liabilities relating to such assessments. The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties generally vary around 8 % to 13 %. At March 31, 2023 and December 31, 2022, the Company had accrued royalties payable of $ 15,884 and $ 435,075 , respectively. During the three months ended March 31, 2023, the Company paid a royalty obligation related to the time period from 2016 to 2022 after finalizing its estimates . Page 10 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 On August 8, 2022, the Company executed a preliminary 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 $ 10,000 plus VAT for the right to mine and conduct geological and resource studies as due diligence and exploration on the Wadley Property. At the end of such eight-month period, should the Company choose to exercise its option to acquire 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. The due diligence period under the Agreement has been extended to October 15, 2023 . As of March 31, 2023 and December 31, 2022, the Company had capitalized $ 70,000 and $ 40,000 , respectively, of payments to Wadley. Mexican Tax Assessment 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. During the year ended December 31, 2022, the Mexican court ruled against the Company in the above matter. The Company appealed the ruling, which is still pending. As of March 31, 2023, the updated SAT assessment was approximately $30.2 million pesos, which was approximately $1,674,000 USD for $907,000 of unpaid income taxes and $767,000 of interest and penalties . 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 March 31, 2023 or December 31, 2022 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 record changes to tax attributes, recognize penalties in general and administrative expense, interest will be recorded as interest expense and record the tax expense associated with the assessment. NOTE 9 – STOCKHOLDERS’ EQUITY On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock converted the preferred shares and the Company issued 1,692,672 shares of common stock. The Company also paid the holders $ 787,730 for dividends payable as declared on November 28, 2022. 1,590,672 shares of the 1,692,672 shares of Series D Preferred stock that were converted and $740,261 of the $787,730 of dividends paid related to the estate of John Lawrence, who was a prior President and Chairman of the Company. On January 26, 2023, in conjunction with its share repurchase plan, the Company returned to treasury and cancelled 418,696 of its common shares which were repurchased prior to December 31, 2022 for $202,980 . Page 11 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 Common stock warrants No warrants were issued or exercised during the three months ended March 31, 2023 and 2022. The following summarizes warrant activity: Number of warrants Exercise prices Balance outstanding at December 31, 2022 and March 31, 2023 12,346,215 $ 0.75 The composition of the Company’s warrants outstanding at March 31, 2023 was as follows: Number of warrants Exercise Price Expiration Date Remaining life in years 2,285,715 $ 0.46 7/31/2025 2.34 804,000 $ 0.46 1/27/2026 2.83 7,650,000 $ 0.85 8/3/2026 3.35 1,606,500 $ 0.85 2/1/2026 2.84 12,346,215 NOTE 10 – BUSINESS SEGEMENTS The Company is organized and managed with four business segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations. 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 to customers in the United States or shipped to the United States operation for finishing at the Company’s plant near Thompson Falls, MT. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which recovers precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, MT, where a 99% precious metals mix is produced. The zeolite operation produces zeolite near Preston, Idaho. Almost all the sales of products from the United States antimony and zeolite operations are to customers in the United States. Sales to foreign countries are primarily to customers in Canada. Total Assets: March 31, 2023 December 31, 2022 Antimony United States $ 18,807,438 $ 21,636,386 Mexico 8,818,420 8,484,131 Subtotal antimony 27,625,858 30,120,517 Precious metals United States 211,754 172,004 Mexico 603,473 625,292 Subtotal precious metals 815,227 797,296 Zeolite 4,420,674 3,782,637 TOTAL $ 32,861,759 $ 34,700,450 Page 12 of 23 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2023 For the three months ended Capital expenditures: March 31, 2023 March 31, 2022 Antimony United States $ 3,550 $ 28,350 Mexico 113,568 16,437 Subtotal antimony 117,118 44,787 Precious metals - 8,380 Zeolite 497,652 135,374 TOTAL $ 614,770 $ 188,541 Segment operations for the three months ended March 31, 2023 Antimony - USA Antimony -Mexico Total antimony Precious Metals Zeolite Total Total revenues $ 1,612,639 $ - $ 1,612,639 $ 116,112 $ 482,093 $ 2,210,844 Depreciation and amortization 8,280 137,114 145,394 27,673 51,174 224,241 Income (loss) from operations $ 62,072 $ ( 1,097,762 ) $ ( 1,035,690 ) $ 88,439 $ ( 64,605 ) $ ( 1,011,856 ) Other income (expense) 204,872 Net income (loss) $ ( 806,984 ) Segment operations for the three months ended March 31, 2022 Antimony - USA Antimony -Mexico Total antimony Precious Metals Zeolite Total Total revenues $ 2,828,930 $ - $ 2,828,930 $ 77,334 $ 674,042 $ 3,580,306 Depreciation and amortization 9,469 138,457 147,926 27,520 44,704 220,150 Income (loss) from operations $ 1,391,512 $ ( 684,037 ) $ 707,475 $ 49,814 $ 22,291 $ 779,580 Other income (expense) 6,672 Net income (loss) $ 786,252 Page 13 of 23