What changed in this filing

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Item 1. Financial Statements

2023-11-13 compared with 2023-10-17 · 97 added, 70 removed, 323 unchanged (34% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 30,

CURRENT ASSETS:

31 unchanged sentences

150,000,000 shares authorized;

107,647,317 shares issued and outstanding at June 30, 2023 and 106,373,341 shares issued and outstanding at December 31, 2022

107,647,317 shares issued and outstanding at September 30, 2023 and 106,373,341 shares issued and outstanding at December 31, 2022

Additional paid-in capital

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three months ended June 30,

Six months ended June 30,

Three months ended

September 30,

Nine months ended

September 30,

COST OF REVENUE

GROSS PROFIT (LOSS)

$ ( 1,061,072 )

$ ( 1,300,595 )

OPERATING EXPENSES

6 unchanged sentences

$ ( 1,824,561 )

$ ( 3,346,506 )

OTHER INCOME (EXPENSE)

6 unchanged sentences

$ ( 1,644,528 )

$ ( 2,787,977 )

Preferred dividends

8 unchanged sentences

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

For the three and six months ended June 30, 2023 and 2022

For the three and nine months ended September 30, 2023 and 2022

Preferred Stock

Stockholders’

Paid in Capital

BALANCE, December 31, 2021

$ ( 32,711,263 )

Net income (loss)

BALANCE, March 31, 2022

( 31,925,011 )

Net income (loss)

BALANCE, June 30, 2022

( 31,571,392 )

Issuance of common stock for director fees

BALANCE, September 30, 2022

$ ( 31,520,990 )

BALANCE, December 31, 2022

$ ( 202,980 )

$ ( 33,070,332 )

Common stock buyback and retirement

1 unchanged sentence

( 1,692,672 )

Net income (loss)

BALANCE, March 31, 2023

( 33,877,316 )

Net income (loss)

BALANCE, June 30, 2023

( 34,213,781 )

( 1,644,528 )

BALANCE, September 30, 2023

$ ( 35,858,309 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six months ended June 30,

Nine months ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

4 unchanged sentences

Accretion of asset retirement obligation

Common stock payable for directors fees

Write down of inventory to net realizable value

Provision for losses on receivables

Change in fair value of investments

23 unchanged sentences

Net cash used by financing activities

$ ( 857,779 )

NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

7 unchanged sentences

Equipment purchased with note payable

Issuance of common stock for directors fees

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

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

September 30, 2023

NOTE 1 - NATURE OF OPERATIONS

United States Antimony Corporation and its subsidiaries in the U.S.

and Mexico (“USAC”, the “Company”, or “Our”) sell processed antimony, zeolite, and precious metals products in the U.S.

and Mexico (“USAC”, the “Company”, “Our”, or “we”) sell processed antimony, zeolite, and precious metals products in the U.S.

The Company processes antimony ore in the U.S.

4 unchanged sentences

NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of the Management, 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, 2023, and its results of operations and cash flows for the three and six months ended June 30, 2023 and 2022.

In the opinion of the management, 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 September 30, 2023, and its results of operations and cash flows for the three and nine months ended September 30, 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.

Operating results for the three and six-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023.

Operating results for the three and nine-month periods ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023.

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.

16 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

September 30, 2023

NOTE 3 – EARNINGS PER SHARE

1 unchanged sentence

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

At June 30, 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:

At September 30, 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:

September 30,

Convertible preferred stock

2 unchanged sentences

Products consist of the following:

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

includes antimony oxide, antimony trisulfide, and antimony metal

includes coarse and fine zeolite crushed in various sizes

1 unchanged sentence

includes unrefined and refined gold and silver

Sales of products for the three months ended June 30, 2023 and 2022 were as follows:

Sales of products for the three months ended September 30, 2023 and 2022 were as follows:

For the three months ended

September 30,

Precious metals

TOTAL REVENUE

Sales of products for the six months ended June 30, 2023 and 2022 were as follows:

For the six months ended

Sales of products for the nine months ended September 30, 2023 and 2022 were as follows:

For the nine months ended

September 30,

Precious metals

TOTAL REVENUE

The Company’s trade accounts receivable balance related to contracts with customers was $ 1,307,974 at June 30, 2023 and $ 784,457 at December 31, 2022.

The Company’s allowance for doubtful accounts related to trade accounts receivables was $ 75,000 at June 30, 2023 and $ 31,440 at December 31, 2022.

The Company’s trade accounts receivable balance related to contracts with customers was $ 1,390,437 at September 30, 2023 and $ 784,457 at December 31, 2022.

The Company’s allowance for doubtful accounts related to trade accounts receivables was $ 75,000 at September 30, 2023 and $ 31,440 at December 31, 2022.

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

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

September 30, 2023

NOTE 5 – INVENTORIES

Inventories at June 30, 2023 and December 31, 2022 consisted primarily of finished antimony products, antimony metal, antimony oxide, and antimony ore, and finished zeolite products.

Inventories at September 30, 2023 and December 31, 2022 consisted primarily of finished antimony metal and oxide products, antimony ore and concentrates, 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 June 30, 2023 and December 31, 2022 were as follows:

Finished antimony metal and oxide products and finished zeolite products costs include raw materials, direct labor, processing facility overhead costs and freight.

Inventories at September 30, 2023 and December 31, 2022 were as follows:

September 30,

Antimony Metal

3 unchanged sentences

TOTAL INVENTORIES

At June 30, 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 $ 456,238 and $ 136,836 for the six months ended June 30, 2023 and 2022, respectively.

At September 30, 2023 and December 31, 2022, inventories were valued at cost, except for 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 $ 883,390 and $ 409,919 for the nine months ended September 30, 2023 and 2022, respectively.

The adjustment to inventory for net realizable value was $ 427,152 and $ 273,083 for the three months ended September 30, 2023 and 2022, respectively.

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

2 unchanged sentences

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

The major components of the Company’s properties, plants and equipment by segment at June 30, 2023 and December 31, 2022 were as follows:

The major components of the Company’s properties, plants and equipment by segment at September 30, 2023 and December 31, 2022 were as follows:

Antimony Segment

1 unchanged sentence

Precious Metals

June 30, 2023

September 30, 2023

Plant and equipment

21 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

At June 30, 2023 and December 31, 2022, the Company had $ 280,406 and $ 1,117,041 , respectively, of assets that were not yet placed in service and were not yet depreciated.

September 30, 2023

At September 30, 2023 and December 31, 2022, the Company had $ 280,406 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 June 30, 2023 and December 31, 2022 was as follows:

June 30, 2023

December 31, 2022

Long term debt at September 30, 2023 and December 31, 2022 was as follows:

September 30,

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;

4 unchanged sentences

Long term portion of debt

At June 30, 2023, principal payments on debt were due as follows:

Twelve months ending June 30,

At September 30, 2023, principal payments on debt were due as follows:

Twelve months ending September 30,

Principal payment

5 unchanged sentences

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”).

Historically, 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 June 30, 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 June 30, 2023 and December 31, 2022, the Company had accrued royalties payable of $ 45,359 and $ 435,075 , respectively.

At September 30, 2023 and December 31, 2022, the Company had no accrued liabilities relating to such assessments.

Bear River Zeolite Company (“BRZ”), a wholly owned subsidiary of the Company, received twelve significant and substantial citations from MSHA in September and October of 2023.

BRZ rectified the matters noted in eight of the twelve citations and received termination dates for these eight citations from MSHA.

The Company is working to rectify the four remaining citations;

however, the outcome of these citations as well as the impact on the Company’s results of operations or financial position is unknown.

The Company pays various royalties that, on a combined basis, generally vary around 8 % to 13 % of zeolite products sold.

At September 30, 2023 and December 31, 2022, the Company had accrued royalties payable of $ 107,937 and $ 435,075 , respectively.

The decrease in royalties payable in 2023 was primarily due to the Company finalizing its estimates and paying a royalty obligation in 2023 that had been accumulating since 2016.

Page 10 of 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

September 30, 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.

2 unchanged sentences

The due diligence period under the Agreement was extended to October 15, 2023 .

On October 12, 2023, the Company officially notified Wadley that it did not intend to acquire the Wadley Property and terminated this Agreement.

After evaluation in October 2023 of Wadley Property information and the Agreement, the Company officially notified Wadley on October 12, 2023 that it did not intend to acquire the Wadley Property and terminated this Agreement.

During the fourth quarter of 2023, the Company expects to incur a loss on disposal of assets of approximately $ 130,000 related to the termination of this Agreement.

12 unchanged sentences

The Company subsequently appealed the ruling, which is still pending.

As of June 30, 2023, the updated SAT assessment was approximately $21.6 million pesos, which was approximately $1,265,000 USD for $350,000 of unpaid income taxes and $915,000 of interest and penalties .

Management along with its legal counsel assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorneys located in Mexico, that the more likely than not 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 June 30, 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 liabilities, recognize penalties in general and administrative expense, interest will be recorded as interest expense and record the tax expense associated with the assessment.

As of September 30, 2023, the updated SAT assessment was approximately $22 million pesos, which was approximately $1,262,000 USD, comprising $343,000 of unpaid income taxes and $919,000 of interest and penalties .

Management, along with its legal counsel, assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorneys located 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 September 30, 2023 or December 31, 2022 relating to this potential tax liability.

However, 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 the SAT audit is resolved in a manner inconsistent with management expectations, the Company will record changes to tax liabilities and tax expense associated with the assessment.

Also, the Company will recognize penalties associated with the assessment in general and administrative expense and interest associated with the assessment will be recorded as interest expense.

NOTE 9 – STOCKHOLDERS’ EQUITY

3 unchanged sentences

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 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

September 30, 2023

Common stock warrants

No warrants were issued or exercised during the six months ended June 30, 2023 and 2022.

The following summarizes warrant activity:

Number of warrants

Exercise prices

Balance outstanding at June 30, 2023 and December 31, 2022

The composition of the Company’s warrants outstanding at June 30, 2023 was as follows:

No warrants were issued, expired, or exercised during the nine months ended September 30, 2023 and 2022.

The composition of the Company’s warrants outstanding at September 30, 2023 and December 31, 2022 were as follows:

Number of warrants

9 unchanged sentences

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.

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

Sales to foreign customers are primarily to customers in Canada.

Total Assets:

September 30,

United States

3 unchanged sentences

Subtotal precious metals

Page 12 of 25

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2023

For the three months ended June 30,

For the six months ended June 30,

September 30, 2023

Capital expenditures:

For the three months ended

September 30,

For the nine months ended

September 30,

United States

2 unchanged sentences

Total capital expenditures

Segment operations for the three months ended June 30, 2023

Segment operations for the three months ended September 30, 2023

Antimony - USA

5 unchanged sentences

Income (loss) from operations

Segment operations for the three months ended June 30, 2022

$ ( 1,465,000 )

$ ( 1,417,466 )

$ ( 379,422 )

$ ( 1,824,561 )

$ ( 1,644,528 )

Segment operations for the three months ended September 30, 2022

Antimony - USA

4 unchanged sentences

Depreciation and amortization

Income from operations

Income (loss) from operations

$ ( 817,746 )

Other expense

Segment operations for the six months ended June 30, 2023

Segment operations for the nine months ended September 30, 2023

Antimony - USA

10 unchanged sentences

$ ( 3,346,506 )

Segment operations for the six months ended June 30, 2022

$ ( 2,787,977 )

Segment operations for the nine months ended September 30, 2022

Antimony - USA

6 unchanged sentences

$ ( 1,477,387 )

Page 13 of 25

Other expense

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