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Item 8. Financial Statements and Supplementary Data

2024-04-12 compared with 2023-07-18 · 344 added, 413 removed, 325 unchanged (70% of the section changed)

8 unchanged sentences

Notes to Consolidated Financial Statements

Page 55 of 91

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

22 unchanged sentences

Assure CPA, LLC

July 17, 2023

Page 56 of 91

April 12, 2024

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

4 unchanged sentences

Certificates of deposit

Accounts receivable

Inventories (Note 6)

Prepaid expenses and other current assets (Note 4)

Accounts receivable, net

Inventories, net

Prepaid expenses and other current assets

Total current assets

Properties, plants and equipment, net (Note 7)

Properties, plants and equipment, net

Restricted cash for reclamation bonds

IVA receivable and other assets

IVA receivable and other assets, net

LIABILITIES AND STOCKHOLDERS’ EQUITY

2 unchanged sentences

Accrued liabilities

Accrued liabilities – officers and directors

Accrued liabilities - directors

Royalties payable

Dividends payable

Long-term debt, current portion (Note 9)

Long-term debt, current portion

Total current liabilities

Long-term debt, net of current portion (Note 9)

Stock payable to directors for services

Asset retirement obligation and accrued reclamation costs (Note 8)

Long-term debt, net of current portion

Stock payable to directors

Asset retirement obligations and accrued reclamation costs

Total liabilities

COMMITMENTS AND CONTINGENCIES (Notes 4, 11 and 12)

COMMITMENTS AND CONTINGENCIES (Note 10)

STOCKHOLDERS' EQUITY

Preferred stock, $ 0.01 par value;

10,000,000 shares authorized:

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

0 shares issued and outstanding

750,000 shares issued and outstanding (liquidation preference $ 967,500 and $ 960,000 , respectively)

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

1,692,672 shares issued and outstanding (liquidation preference $ 5,019,410 , and $ 4,979,632 , respectively)

Common stock, $ 0.001 par value;

300,000,000 shares authorized;

106,373,341 and 106,240,361 shares issued and outstanding

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

0 and 1,692,672 shares issued and outstanding (liquidation preference $ 0 and $ 5,019,410 , respectively)

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

107,647,317 and 106,373,341 shares issued and outstanding, respectively

Additional paid-in capital

6 unchanged sentences

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

Page 57 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

1 unchanged sentence

For the years ended December 31, 2023 and 2022

COST OF REVENUE

For the years ended December 31,

COST OF REVENUES

GROSS PROFIT (LOSS)

( 3,344,784 )

OPERATING EXPENSES:

1 unchanged sentence

Salaries and benefits

Other operating and exploration expenses

Legal and professional fees

Loss on disposal of assets

Professional fees

Loss on disposal of property, plant & equipment

Other operating expenses

TOTAL OPERATING EXPENSES

INCOME (LOSS) FROM OPERATIONS

( 7,069,001 )

OTHER INCOME (EXPENSE):

Interest expense

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

Foreign exchange loss

TOTAL OTHER INCOME

INCOME BEFORE TAX

Provision for income tax

Other miscellaneous income (expense)

TOTAL OTHER INCOME (EXPENSE)

INCOME (LOSS) BEFORE INCOME TAX

( 6,348,287 )

Income tax expense

NET INCOME (LOSS)

( 6,348,287 )

Preferred dividends

4 unchanged sentences

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

Page 58 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

2 unchanged sentences

Total Preferred Stock

Additional Paid In Capital

Shares to be returned to treasury

Additional Paid In

Shares to be returned to

Balances, December 31, 2021

$ ( 32,711,263 )

Issuance of common stock for cash

Issuance of common stock for directors fees (Note 14)

Common stock issuance costs (Note 14)

Issuance of common stock for directors' fees

Series D preferred dividends declared

Repurchase of common stock

Balances, December 31, 2022

$ ( 202,980 )

$ ( 33,070,332 )

Common stock issued upon exercise of warrants (Note 14)

Conversion of preferred shares to common shares

Series D preferred dividends paid in common shares (Note 14)

Balances, December 31, 2021

Common stock buyback and retirement

Conversion of Preferred Series D to Common Stock

( 1,692,672 )

Issuance of common stock for directors fees (Note 14)

Series D preferred dividends declared (Note 14)

Repurchase of common stock (Note 18)

Balances, December 31, 2022

( 6,348,287 )

Balances, December 31, 2023

$ ( 39,418,619 )

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

Page 59 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

3 unchanged sentences

Net income (loss)

Adjustments to reconcile net income (loss) to net cash used by operating activities:

$ ( 6,348,287 )

Adjustments to reconcile net income (loss) to net cash

used by operating activities:

Depreciation and amortization

Accretion of asset retirement obligation

Common stock payable for directors fees

Gain on settlement of Hillgrove advance

Gain on forgiveness of Cares Act debt

Loss on disposal of assets

Changes in asset retirement obligation estimates

Stock payable to directors

Loss on disposal of property, plant & equipment

Write down of inventory to net realizable value

Provision for losses on receivables

Change in value of investments, net

Allowance for doubtful accounts on accounts receivable

Reserve on IVA receivable

Change in fair value of investments

Other non-cash items

Changes in operating assets and liabilities:

Accounts receivable

Accounts receivable, net

Inventories, net

( 2,084,445 )

Prepaid expenses and other current assets

IVA receivable and other assets

IVA receivable and other assets, net

Accounts payable

Accrued liabilities

Accrued liabilities – officers and directors

Accrued liabilities – directors

Royalties payable

Export tax assessment payable

( 1,120,730 )

Net cash used by operating activities

2 unchanged sentences

Proceeds from redemption of certificates of deposit

Purchase of certificate of deposit

Purchase of investments

( 16,184,893 )

Proceeds from sales of investments

Purchase of properties, plants and equipment

Proceeds from sale of investments

Purchases of properties, plants and equipment

( 1,528,672 )

( 1,726,415 )

Net cash used by investing activities

( 1,341,713 )

( 1,785,661 )

CASH FLOWS FROM FINANCING ACTIVITIES:

Change in checks issued and payable

Payments on advances from related party

Proceeds from issuance of common stock, net of issuance costs

Proceeds from exercise of warrants

Payments on Hillgrove advances payable

Payments on Dividends Payable

Principal payments on long-term debt

Repurchase of common stock

Net cash used by financing activities

( 1,071,292 )

Principal paid on notes payable to bank

Principal payments of long-term debt

Repurchase of shares to be returned to treasury

Net cash provided (used) by financing activities

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

NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

( 7,163,031 )

( 2,302,663 )

| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR

3 unchanged sentences

NON-CASH FINANCING AND INVESTING ACTIVITIES:

Equipment purchased with long-term debt

Issuance of common stock for directors fees

Building purchased with note payable

Preferred Series D dividends declared and payable

Equipment purchased with note payable

Issuance of common stock for directors

Preferred Series D dividends payable declared

Common stock buyback and retirement

Conversion of Preferred Series D to Common Stock

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

Page 60 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

1 unchanged sentence

NOTE 1 - NATURE OF OPERATIONS

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.

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 wholly-owned subsidiaries of the Company.

In its operations in Montana, the Company produces antimony oxide, antimony metal, and precious metals.

Antimony oxide is a fine, white powder that is used primarily in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings and paper.

Antimony oxide is also used as a color fastener in paint, as a catalyst for production of polyester resins for fibers and film, as a catalyst for production of polyethylene tera-pthalate in plastic bottles, as a phosphorescent agent in fluorescent light bulbs, and as an opacifier for porcelains.

The Company also sells antimony metal for use in bearings, storage batteries and ordnance.

In its operations in Mexico, the Company extracts ore and antimony concentrates which are shipped to Montana for further processing into antimony oxide.

The Company’s Mexican operations also produces antimony metal for sale in Mexico.

In its operations in Idaho, the Company produces zeolite, a group of industrial minerals used in a variety of purposes including soil amendment and fertilizer.

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

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

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

The Company processes antimony ore primarily into antimony oxide, antimony metal, and antimony trisulfide.

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.

Our antimony trisulfide is used as a primer in ammunition.

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.

We recover precious metals, primarily gold and silver, at our plant in Montana from antimony concentrates.

NOTE 2 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

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

The Company’s consolidated financial statements include the accounts of its wholly owned subsidiaries, Bear River Zeolite Company (“BRZ”), AGUA Mines, Inc., Stibnite Holding Company US Inc., Antimony Mining and Milling US LLC, and Lanxess Laurel de Mexico, S.A.

de C.V., and its majority owned subsidiaries, USAMSA and ADM.

All intercompany balances and transactions are eliminated in consolidation.

AGUA Mines, Inc., Stibnite Holding Company US Inc., Antimony Mining and Milling US LLC, and Lanxess Laurel de Mexico, S.A.

are inactive.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S.

GAAP)” 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.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S.

GAAP”) 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.

Critical accounting estimates include impairment of long-lived assets, antimony content of mineral resources, and asset retirement obligations.

Actual results could differ from those estimates.

Page 61 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Reclassifications

Certain reclassifications have been made to conform prior periods’ amounts to the current presentation.

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.

Cash and Cash Equivalents

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, 2022 and 2021, restricted cash for reclamation bonds of $ 57,288 and $ 57,281 are included in cash and cash equivalents and restricted cash balances on the statements of cash flows.

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

At December 31, 2023 and 2022, restricted cash for reclamation bonds of $ 55,061 and $ 57,288 is included with the cash and cash equivalents and restricted cash balances in the statements of cash flows.

Restricted Cash

Restricted cash at December 31, 2023 and 2022 consists of cash held for reclamation performance bonds and is held in certificates of deposit with financial institutions.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accounts Receivable

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, 2022 and 2021 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, depreciation and freight allocated based on production quantity.

Accounts receivables are stated at the amount the Company expects to collect from outstanding balances.

The Company provides for probable uncollectible amounts through an allowance for doubtful accounts.

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

Balances which remain outstanding after the Company has made 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 after being written off are considered a bad debt recovery.

Inventories at December 31, 2023 and 2022 consisted of finished antimony products (oxide and 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, whichever is lower.

Finished antimony products (oxide and metal) and finished zeolite products costs include direct materials, direct labor, facility overhead costs, depreciation, and freight allocated based on production quantity.

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

1 unchanged sentence

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

Foreign Currency Transactions

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 statements of operations.

dollars, which is the functional currency of the Company and its subsidiaries.

Foreign currency transaction gains and losses are recognized as a foreign currency exchange gain or loss in “other miscellaneous income (expense)” in the Consolidated Statements of Operations.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

Properties, plants, and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives ranging from three to forty years.

The estimated useful life of plant and equipment ranges from three to twenty years and buildings ranges from twenty to forty 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.

Expenditures for 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 the results of 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.

Page 62 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

These capitalized costs are amortized in the statement of operations using the units-of-production method, based upon estimated the units of mineral resource, or the straight-line method, based upon the estimated lives of the properties.

The Company expenses costs as incurred during the mine exploration stage.

The mine development stage begins once the Company has determined an ore body is feasible.

Expenditures incurred during the development stage are capitalized as deferred development costs and amortized using the units-of-production method, based upon estimated the units of mineral resource, or the straight-line method, based upon the estimated lives of the properties.

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

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

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.

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

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

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

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

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.

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

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

If estimated undiscounted cash flows or salvage values 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.

Prepaid Expenses and Other Long-Term Assets

Prepaid expenses relate to goods or services that have been paid for but for which the good or service has not been received yet.

These expenses are recorded as an asset in the Consolidated Balance Sheet and expensed in the Consolidated Statement of Operations as the asset's benefits are realized.

Prepaid expenses are recorded as a current asset in the Consolidated Balance Sheet if the benefits will be realized within twelve months from the date of the Consolidated Balance Sheet or as a long-term asset if the benefits will be realized after twelve months from the date of the Consolidated Balance Sheet.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Asset Retirement Obligations

The Company’s mining operations are subject to retirement requirements, which include mine retirement standards that have been established by various governmental agencies and retirement requirements included in certain Company contracts, including contracts related to the leasing of certain of the Company’s properties.

There are costs that will be incurred to satisfy these retirement requirements upon cessation of our operations.

The Company records the fair value of these costs as an asset retirement obligation in its Consolidated Balance Sheet in the period in which the Company has both a legal obligation and an obligating event for the retirement of long-lived assets if it is probable, meaning it can reasonably be expected or believed, that such costs will be incurred and if the costs are reasonably estimable.

A corresponding asset is also recorded and amortized over the life of the assets on a units-of-production or straight-line basis.

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

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

The asset retirement obligation is classified as current or noncurrent based on the expected timing of expenditures.

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

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

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

Revenue Recognition

Products consist of the following:

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

Products consist primarily of the following:

includes antimony oxide, antimony metal, and antimony trisulfide

includes coarse and fine zeolite crushed in various sizes

1 unchanged sentence

includes unrefined and refined gold and silver

Page 63 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 reasonably estimable, 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 antimony, zeolite, and precious metals products, revenue is recognized when the following have been satisfied:

1) the completion of the contractual performance obligations, in which rarely will there be more than one performance obligation, that being shipment of the specified quantity of the specified product per the customer’s sales order or similar document, 2) the amount of consideration or price for the transaction can be reasonably estimated, 3) legal title to and risk and rewards of ownership of the product are transferred to the customer, which typically occurs either upon shipment of the product from the Company’s warehouse locations or upon receipt of the product by the customer as specified in individual sales orders and/or shipping documents, 4) it is assessed as very unlikely product will be rejected by the customer, and 5) the Company has the right to payment for the product.

Shipping costs related to sales of our products are recorded to cost of sales as incurred.

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

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

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

Prepayments from customers, which are not common, received prior to satisfaction of revenue recognition criteria are recorded as deferred revenue.

The Company does not have warranty obligations and sales returns have been historically immaterial.

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.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Common Stock Issued for Consideration Other than Cash

1 unchanged sentence

Treasury Stock

When the Company’s stock is acquired for purposes it is initially valued at cost and presented as treasury stock.

When the Company’s stock is acquired, it is initially valued at cost and presented as treasury stock.

Other than formal or constructive retirement or when ultimate disposition has not yet been decided, the cost of the acquired stock is presented as treasury stock separately as a deduction from the total of common stock, additional paid-in capital and accumulated deficit.

Gains on sales of treasury stock not previously accounted for as constructively retired are credited to additional paid-in capital, and losses are charged to additional paid-in capital to the extent that previous net gains from sales or retirements of the same class of stock are included therein, with the remainder charged to accumulated deficit.

When the Company's stock is retired or purchased for constructive retirement, any excess purchase price over par value is allocated between additional paid-in capital to the extent that previous net gains from sales or retirements are included therein, and the remainder to accumulated deficit.

The Company’s income tax expense and deferred tax assets and liabilities reflect management’s best assessment of estimated future taxes to be paid or refunded.

When the Company's stock is purchased for constructive retirement, any excess purchase price over par value is allocated between additional paid-in capital to the extent that previous net gains from sales or retirements are included therein, and the remainder to accumulated deficit.

The Company’s income tax expense and deferred tax assets and liabilities reflect the Company’s best assessment of estimated future taxes to be paid or refunded.

Significant judgments and estimates are required in determining the consolidated income tax expense.

Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense.

In evaluating the Company’s ability to recover its deferred tax assets, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations.

In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations.

In projecting future taxable income, the Company develops assumptions including the amount of future state and federal pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies.

1 unchanged sentence

The Company provides a valuation allowance for deferred tax assets that the Company does not consider more likely than not to be realized.

Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future.

Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future and are reflected on a prospective nature in the period of the enactment.

The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense.

The Company evaluates its tax positions taken or expected to be taken in the course of preparing its tax returns to determine whether the tax positions will more likely than not be sustained by the applicable tax authority.

The Company evaluates its tax positions taken or expected to be taken while preparing its tax returns to determine whether the tax positions will more likely than not be sustained by the applicable tax authority.

Tax positions not deemed to meet the more-likely-than-not threshold are not recorded as a tax benefit or expense in the current year.

No reserve for uncertain tax positions has been recorded.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value of Financial Instruments

1 unchanged sentence

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

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

1 unchanged sentence

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.

The categorization within the fair value hierarchy is based on 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.

6 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.

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

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

The Company does not believe that issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2 unchanged sentences

The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics.

Topic 326 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022 .

The Company does not anticipate this will have a material impact to its financial statements and disclosures.

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 stock options and warrants.

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The Company adopted the ASU on January 1, 2023, and determined that it had no material impact on the Company’s consolidated financial statements and disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis.

Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss.

The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively.

Early adoption is permitted.

We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid.

The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively.

Early adoption and retrospective application of the amendments are permitted.

We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 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:

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 and warrants.

At December 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:

Convertible preferred stock

TOTAL POSSIBLE DILUTIVE SHARES

NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

On August 17, 2022, the Company executed a Management and Consultancy Services Agreement (the ‘Consultancy Agreement”) whereby a contractor was engaged to render professional services consisting of management and consultancy for the acquisition of surface rights and other technical services near San Guadalupe, Mexico.

The parties agreed to total consideration of $ 1,035,025 plus associated Value Added Tax (“VAT”).

The Company paid $ 450,000 plus VAT upon execution of the Consultancy Agreement and will pay fifty (50) monthly installments of $ 11,700 plus VAT.

The $ 450,000 initial installment will be amortized over the fifty (50) month term of the agreement and recognized as expense under “Other operating expenses and exploration” in the consolidated statements of operations.

Prepaid expenses and other current assets at December 31, 2022 are as follows:

Prepaid insurance

Prepaid consulting and management fees

Other current assets

Less long-term portion

Prepaid and other current assets

The long-term portion of prepaid and other current assets of $ 297,000 is included in “IVA receivable and other assets” on the consolidated balance sheets.

NOTE 4 – REVENUE RECOGNITION

Sales of products for the year ended December 31, 2022 and 2021 were as follows:

For the year ended

Products consist of the following:

includes antimony oxide, antimony metal, and antimony trisulfide

includes coarse and fine zeolite crushed in various sizes

Precious metals:

TOTAL REVENUE

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includes unrefined and refined gold and silver

Sales by product for the years ended December 31, 2023 and 2022 were as follows:

For the year ended

Antimony product revenue

Zeolite product revenue

Precious metals product revenue

TOTAL REVENUES

The Company also received royalties related to a trademark and licensing agreement in its antimony business segment, which is recorded in “Trademark and licensing income” under the caption “Other Income (Expense)” in its Consolidated Statements Operations.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended December 31, 2022, the Company also received royalties related to a trademark and licensing agreement in its antimony business segment and is recognized under “Other Income”.

For the year ended December 31, 2022 and 2021, royalty income of $ 70,502 and $Nil, respectively, was recognized.

The following is sales information by geographic area based on the location of customers for the years ended December 31, 2023 and 2022:

For the year ended

United States

TOTAL REVENUE LOCATION

Sales of products to significant customers were as follows for the years ended December 31, 2022 and 2021:

United States revenue

Canada revenue

TOTAL REVENUES

Sales to customers representing more than 10% of our total revenues during the years ended December 31, 2023 and 2022 were as follows:

For the year ended

% of Total revenues

Customer A revenue

Customer B revenue

Customer C revenue

Total significant customer revenue

Customer revenue as a % of total revenues

All precious metals sales of $ 326,496 and $ 261,707 for the years ended December 31, 2023 and 2022, respectively were to one customer, Teck American, Inc.

Accounts receivable from the Company’s largest customers were as follows as of December 31, 2022 and 2021:

% of Total receivables

The Company’s trade accounts receivable balance related to contracts with customers was $ 784,457 at December 31, 2022 and $ 891,314 at December 31, 2021.

Customer receivables representing more than 10 % of our net accounts receivable balance as of December 31, 2023 and 2022 were as follows:

Customer B receivables

Customer A receivables

Customer E receivables

Total significant customer receivables

Customer receivables as a % of net accounts receivable

The Company’s net accounts receivable balance related to contracts with customers was $ 625,256 at December 31, 2023 and $ 784,457 at December 31, 2022.

The Company’s allowance for doubtful accounts related to accounts receivable was $ 271,212 at December 31, 2023 and $ 31,440 at December 31, 2022, the increase of which was primarily included in our U.S.

Antimony Segment.

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

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the year ended December 31, 2022 and 2021, the Company recognized bad debt expense of $ 59,350 and $Nil, respectively which is included in ‘general and administrative expense’ on the consolidated statements of operations.

NOTE 5 – INVENTORIES

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

Inventories by type at December 31, 2023 and 2022 were as follows:

Antimony oxide

1 unchanged sentence

Antimony ore and concentrates

Total antimony

Total antimony inventory

TOTAL INVENTORIES

As of December 31, 2022 and December 31, 2021, 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 antimony contained in inventory.

The adjustment to inventory for net realizable value was $ 277,146 and $Nil for the year ended December 31, 2022 and 2021, respectively.

As of December 31, 2023 and 2022, inventories were valued at cost except for the portion of the inventory related to our Mexico Antimony Segment operations, which was valued at net realizable value because the cost of our Mexico inventory was greater than the amount the Company expected to receive upon the sale of the inventory.

The adjustment to inventory to net realizable value was $ 2,073,404 and $ 277,146 for the years ended December 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 concentrates and ore were held primarily at sites in Mexico.

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

The Company’s zeolite inventory consists primarily of saleable zeolite material in Idaho.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT

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

The components of the Company’s properties, plants and equipment (“PP&E”) by segment at December 31, 2023 and December 31, 2022 were as follows:

December 31, 2023

Antimony Segment

1 unchanged sentence

Precious Metals

December 31, 2022

Plant and equipment

6 unchanged sentences

( 13,632,199 )

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Antimony Segment

1 unchanged sentence

Precious Metals

December 31, 2021

Plant and equipment

6 unchanged sentences

( 12,923,713 )

The properties, plants and equipment by location is as follows:

United States

The properties, plants and equipment by location was as follows:

United States properties, plants and equipment, net

Mexico properties, plants and equipment, net

Total PP&E, net

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

At December 31, 2023 and December 31, 2022, the Company had $ 289,357 and $ 1,117,041 , respectively, of assets that were not yet placed in service and have not yet been depreciated.

NOTE 8 – ASSET RETIREMENT OBLIGATION AND ACCRUED RECLAMATION COSTS

Changes in the asset retirement obligation for the year ended December 31, 2022 and 2021 are as follows:

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 – ASSET RETIREMENT OBLIGATION

Changes in the asset retirement obligations for the years ended December 31, 2023 and 2022 were as follows:

Year ended December 31,

Asset retirement obligation, beginning of period

Change in estimated retirement costs

Revisions to estimate of retirement obligations

Accretion expense

Changes in asset retirement obligation estimates

Asset retirement obligation, end of period

The Company’s total asset retirement obligation and accrued reclamation costs of $ 332,011 and $ 298,649 , at December 31, 2022 and December 31, 2021, respectively, include reclamation obligations for the Idaho and Montana operations of $ 107,500 .

During the year ended December 31, 2022, the Company revised its estimate on asset retirement costs.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company recalculated its asset retirement obligations based on indications that the associated costs had changed.

Based on these changes in the estimate of cash flow costs and timing, the Company's asset retirement obligation liability increased by $ 1,075,061 and $ 15,596 and the Company’s asset retirement obligation expense increased by $ 324,984 and $nil during the years ended December 31, 2023 and 2022, respectively.

The Company added layers to its asset retirement obligations and assets at its credit-adjusted risk-free rate of 6.65 % and 6 % during the years ended December 31, 2023 and 2022, respectively.

At December 31, 2022, the Company had an asset retirement obligation and an accrued reclamation liability of $ 332,011 , which included accrued reclamation liabilities for Montana and Idaho totaling $ 107,500 .

NOTE 8 – DEBT

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

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

At December 31,

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;

2 unchanged sentences

collateralized by 2007 Caterpillar 740 articulated truck

Less current portion

Long term portion

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

Twelve months ending December 31,

NOTE 10 – 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 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.

NOTE 11 – INCOME AND OTHER TAXES

During the year ended December 31, 2022 and 2021, the Company recognized an income tax provision of $ 16,073 and $Nil respectively.

Income tax payable of $ 16,073 is included in “accrued liabilities” on the consolidated balance sheets and relates to federal taxes owed.

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Less current portion of debt

Long term portion of debt

The Company paid off the promissory note payable to First Security Bank in the fourth quarter of 2023 with no prepayment penalty.

The principal payments owed Caterpillar Financial Services of $ 28,443 at December 31, 2023 will be due in 2024.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Domestic and foreign components of net income (loss) from operations before income taxes for the years ended December 31, 2022 and 2021, are as follows:

NOTE 9 – INCOME AND OTHER TAXES

Income tax expense for the years ended December 31, 2023 and 2022 consisted of the following:

Current income tax expense:

Total current

Deferred income tax expense:

Total deferred

Total income tax expense

Domestic and foreign components of income (loss) before income taxes for the years ended December 31, 2023 and 2022 were as follows:

$ ( 397,156 )

( 5,951,131 )

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

federal income tax rate to pre-tax net income (loss) for the years ended December 31, 2022 and 2021 due to the following:

Tax liability (benefit) at federal statutory rate

State income tax effect

Foreign income tax effect

Non-deductible items

Non-taxable item - gain on CARES Act loan

Percentage depletion

Adj for prior year tax estimate to actual-domestic

Adj for prior year tax estimate to actual-foreign

( 2,285,059 )

Income (loss) before income taxes

$ ( 6,348,287 )

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

federal income tax rate to pre-tax income (loss) for the years ended December 31, 2023 and 2022 due to the following:

federal statutory tax provision (benefit)

$ ( 1,333,000 )

State income tax provision (benefit) net

Foreign taxes

VAT refund reserve and other non-deductible items

Adjustment for prior year tax estimate to actual-domestic

Adjustment for prior year tax estimate to actual-foreign

Impact on change in state tax rate

2 unchanged sentences

Change in valuation allowance - Foreign

( 1,043,000 )

At December 31, 2022 and 2021, the Company had net deferred tax assets as follows:

Total income tax expense

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2023 and 2022, the Company had net deferred tax assets and liabilities as follows:

Deferred tax asset:

1 unchanged sentence

Foreign net operating loss carry forward

Allowance for doubtful accounts

Deferred tax asset

7 unchanged sentences

Total deferred tax liability

Net deferred tax asset

Page 71 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

$ ( 487,000 )

$ ( 256,000 )

Net deferred tax asset after valuation allowance

At December 31, 2023 and 2022, 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, 2023 and 2022.

At December 31, 2022, the Company has federal net operating loss (“NOL”) carry forwards of approximately $ 359,000 that will never expire but utilization of which is limited to 80 % of taxable income in any future year.

At December 31, 2023, the Company has federal net operating loss (“NOL”) carry forwards of approximately $ 1.66 million, $ 1.61 million of which will never expire but is limited to offsetting up to 80% of taxable income in any future year, and $0.05 million of which will expire at the end of 2037 but is not limited regarding offsetting taxable income in future years .

The Company has Montana state NOL carry forwards of approximately $ 4.2 million which expire between 2024 and 2030, and Idaho state NOL carry forwards of approximately $ 1.7 million, which expire between 2034 and 2043.

The Company has approximately $ 9.6 million of Mexican NOL carry forwards which expire between 2025 and 2033.

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

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

All carryforwards in all jurisdictions are subject to certain limitations.

During the years ended December 31, 2023 and 2022, 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 2020 through 2022, and 2019 through 2022 in Mexico.

The Company’s United States income tax filings are subject to examination for the years 2020 through 2022 and for the years 2019 through 2023 in Mexico.

However, for tax attributes from prior years, the statute remains open.

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

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Mexican Tax Assessment

3 unchanged sentences

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.

The assessment was settled in 2018 with no assessment due from 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.

3 unchanged sentences

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 has appealed the ruling.

As of December 31, 2022, the updated SAT assessment was approximately $21.3 million pesos, which was approximately $1.1 million USD for $ 285,000 of unpaid income taxes and $ 815,000 of interest and penalties.

As of December 31, 2022, 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.

In 2022, the Mexican court ruled against the Company in the above matter.

The Company subsequently appealed the ruling.

As of December 31, 2023, the updated SAT assessment was approximately $22.4 million pesos, or approximately $1,320,000 USD, which includes $ 352,000 of unpaid income taxes and $ 968,000 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 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 December 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.

In March 2024, the Company received a favorable ruling from its appeal with no assessment due related to this audit of USAMSA’s 2013 income tax return by SAT.

This ruling supports the Company’s position on this tax matter and has no impact on the Company’s financial statements at December 31, 2023.

Mexico’s lower court will issue a final ruling on this matter as to whether this decision can be appealed.

Mexico Value Added Tax

USAMSA, which is part of the Mexico Antimony Segment, records a receivable for the Value Added Tax (“VAT” or “IVA”) it pays on certain goods and services as it should be reimbursed from the Mexican government.

USAMSA has a reserve of $ 687,534 and $nil on its IVA receivable balance at December 31, 2023 and 2022, respectively.

The net IVA receivable of $ 435,094 and $ 526,536 at December 31, 2023 and 2022, respectively, is recorded in “IVA receivable and other assets, net” in the Consolidated Balance Sheet.

NOTE 10 – COMMITMENTS AND CONTINGENCIES

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 December 31, 2022 and December 31, 2021, the Company had accrued liabilities of $Nil and $Nil, respectively, relating to such assessments.

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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, 2022 and 2021, the Company incurred royalty expense of $ 280,801 and $ 262,861 respectively.

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

At December 31, 2022 and December 31, 2021, the Company had accrued royalties payable of $ 435,075 and $ 346,242 , respectively.

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 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.

The due diligence period of the agreement has been extended to October 15, 2023 .

As of December 31, 2022, the Company capitalized $ 40,000 of payments to SB Wadley.

NOTE 13 – RELATED PARTY TRANSACTIONS

During the year ended December 31, 2022 and 2021, the Company paid a director $ 19,738 and $ 4,588 , respectively for services related to investor relations, geologic consulting and expense reimbursement.

During the year ended December 31, 2022 and 2021, the Company paid another director $ 4,240 and $Nil, respectively, for services related to geologic consulting and expense reimbursement.

During the year ended December 31, 2022 and 2021, the Company paid an entity owned by an officer and the chairman of the board of directors $ 21,730 and $ 24,510 , respectively, for lodging and meals at the Company’s headquarters location for visiting consultants, vendors and board members.

At December 31, 2022 and December 31, 2021, the Company accrued related expenses of $ 11,504 and $ 1,846 , respectively, which are included in “accrued liabilities – officers and directors” on the Company’s consolidated balance sheets.

The Company compensates directors for their contributions to the management of the Company.

During the year ended December 31, 2022 and December 31, 2021, the Company expensed $ 135,417 and $ 112,500 , respectively in directors’ fees, which was recorded in general and administrative expense on the consolidated statements of operations.

During the year ended December 31, 2022, the Company paid accrued directors fees of $ 62,500 in cash and $ 62,501 in common stock (Note 14).

At December 31, 2022 and December 31, 2021, accrued fees due to directors was $ 61,459 and $ 49,999 , respectively, which are included in “accrued liabilities – officers and directors” on the Company’s consolidated balance sheets.

As of December 31, 2022 and 2021, accrued liabilities-officers and directors consists of:

Accrued directors fees

Accrued liabilities, related party

At December 31, 2022 and December 31, 2021, stock payable to directors for services was $ 61,459 and $ 62,501 , respectively.

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

However, in 2023, Bear River Zeolite Company (“BRZ”), a wholly owned subsidiary of the Company, received fourteen significant and substantial citations and three orders from MSHA, all of which have been rectified by BRZ prior to the filing of this Annual Report.

On a combined basis, BRZ pays royalties ranging from 8% to 13 % on the sale of zeolite products.

At December 31, 2023 and 2022, the Company had accrued royalties payable of $ 153,429 and $ 435,075 , respectively.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Under the Agreement, USAMSA agreed to 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 USAMSA choose to exercise its option to acquire following due diligence and assessment of geological and resource studies, USAMSA agreed to pay Wadley $2,230,000 and seven annual payments of $1,160,000.

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

After evaluation in October 2023 of Wadley Property information and the Agreement, USAMSA 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, USAMSA, which is part of the Mexico Antimony Segment, recorded a loss on disposal of assets of approximately $ 130,000 related to the termination of this Agreement.

NOTE 11 – STOCKHOLDERS’ EQUITY

On August 24, 2022, the Company issued 132,980 shares of common stock in lieu of cash in consideration of fees for Board of Directors accrued through December 31, 2021.

The number of shares issued was based on the amount of fees due of $ 62,501 divided by the market price of the Company’s common shares on the date of issuance.

Issuance of Common Stock for Cash

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 year ended December 31, 2021, the Company issued 3,765,477 shares of common stock and received proceeds of $ 1,790,705 from the issuance of shares of its common stock upon the exercise of warrants.

Issuance of Common Stock for Services to Officers and Directors

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

During the year ended December 31, 2022, the Company issued 132,980 shares of common stock to the board of directors to satisfy stock payable to directors for services of $ 62,501 that were outstanding at December 31, 2021.

Issuance of Common Stock

On August 24, 2022, the Company issued 132,980 shares of common stock to the board of directors to satisfy the stock payable to directors for their board services that were outstanding and accrued at December 31, 2021.

The number of shares issued was based on the amount of board service fees due of $ 62,501 divided by the market price of the Company’s common shares on the date of issuance.

On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock, which represents all outstanding shares of Series D Preferred Stock, converted their respective preferred shares and the Company issued 1,692,672 shares of common stock.

The Company also paid the holders $ 787,730 on January 18, 2023 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 .

Common Stock Warrants

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.

There were no warrants exercised during the year ended December 31, 2022.

The Company issued no warrants to purchase common stock during the year ended December 31, 2022.

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

Balance outstanding at December 31, 2020

$ 0.46 - $ 0.85

( 3,765,477 )

$ 0.46 - $ 0.65

Balance outstanding at December 31, 2021

Balance outstanding at December 31, 2022

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

No warrants were issued, expired, or exercised during the years ended December 31, 2023 and 2022, other than 143,707 warrants with an exercise price of $ 0.65 expired on August 12, 2022 .

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

Number of warrants

Weighted Average

Exercise Price

Expiration Date

Weighted Average

Remaining life (years)

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UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

2 unchanged sentences

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.

In 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);

6 unchanged sentences

At December 31, 2023 and 2022, cumulative dividends in arrears on the outstanding Series B shares were $ 217,500 and $ 210,000 , respectively.

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

In 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.

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, 2022 and 2021, the cumulative dividends in arrears on the outstanding Series D shares were $ 787,730 and $ 747,952 , 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, 2022 and 2021, the liquidation preference for Series D preferred stock was $ 5,019,410 and $ 4,979,632 , 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.

On November 28, 2022, the holders of all 1,692,672 outstanding shares of Series D Preferred stock agreed to convert the preferred shares for 1,692,672 shares of common stock in addition to a cash payment of $787,730 for accrued dividends .

As of December 31, 2022, the balance of $787,730 was declared by the Company’s board of directors but remained unpaid and is included in “dividends payable” on the consolidated balance sheet.

As of December 31, 2022, common shares had not yet been issued in conversion of the preferred shares (Note 18).

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Stock Repurchase Program

On November 21, 2022 the Board of Directors of the Company approved a stock repurchase program under which management is authorized to repurchase up to 5,000,000 shares of the Company’s outstanding common stock.

Repurchases under the program may be made occasionally, as the Company deems appropriate, based on a variety of factors such as share price, capital position, liquidity, financial performance, alternative uses of capital and overall market conditions.

NOTE 12 – 2023 Equity Incentive Plan

In December 2023, the shareholders of the Company approved United States Antimony Corporation’s 2023 Equity Incentive Plan (“the Plan”).

The Plan provides for the grant of incentive stock options and non-qualified stock options to purchase shares of our common stock and other types of awards.

The general purpose of the Equity Incentive Plan is to provide a means whereby eligible employees, officers, non-employee directors and other individual service providers develop a sense of proprietorship and personal involvement in our development and financial success, and to encourage them to devote their best efforts to our business, thereby advancing our interests and the interests of our shareholders.

By means of the Equity Incentive Plan, we seek to retain the services of such eligible persons and to provide incentives for such persons to exert maximum efforts for our success and the success of our subsidiaries.

The maximum number of shares of common stock available for issuance in connection with options and other awards granted under the Equity Incentive Plan is 8,700,000 .

At December 31, 2023, no shares had been issued under the Plan.

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Stock repurchase

Repurchases under the program may be made from time to time, as the Company deems appropriate, based on a variety of factors such as share price, capital position, liquidity, financial performance, alternative uses of capital and overall market conditions.

During the year ended December 31, 2022, the Company repurchased $202,980 of its common stock under this repurchase program which represents 418,696 shares.

As of December 31, 2022, repurchased shares were in process and had not yet been returned to treasury and $ 202,980 is included in ‘shares to be returned to treasury’ on the consolidated balance sheet (Note 18).

NOTE 15 – 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, 2022 and 2021, 300,000 shares of the Company’s common stock had been previously issued under the Plan.

There were no issuances under the Plan during 2022 and 2021.

NOTE 13 – BUSINESS SEGEMENTS

The Company is currently organized and managed via four 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 or shipped to the United States operation for finishing at the Thompson Falls, Montana plant.

The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover 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, Montana, where a 99% precious metals mix will be produced.

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, although the Company does have a sales operation in Canada.

The Company is organized and managed via four segments, which represent our operating units:

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

Total assets by segment at December 31, 2023 and 2022 were as follows:

Total Assets:

United States

Subtotal antimony

Precious metals

United States

Subtotal precious metals

Antimony segment:

United States total assets

Mexico total assets

Subtotal antimony segment

Precious metals segment:

United States total assets

Mexico total assets

Subtotal precious metals segment

Zeolite segment

Total capital expenditures by segment for the years ended December 31, 2023 and 2022 were as follows:

Capital expenditures

United States

Subtotal antimony

Precious metals

Page 76 of 91

Antimony segment:

United States capital expenditures

Mexico capital expenditures

Subtotal antimony segment

Precious metals segment

Zeolite segment

TOTAL CAPITAL EXPENDITURES

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Selected segment operational information for the years ended December 31, 2023 and 2022 were as follows:

Segment operations for the year ended December 31, 2023

Antimony - USA

Antimony -Mexico

Total revenues

2 unchanged sentences

( 5,857,872 )

( 6,520,198 )

( 7,069,001 )

Other income (expense)

3 unchanged sentences

Segment operations for the year ended December 31, 2022

Antimony - USA

Antimony -Mexico

Total revenues

2 unchanged sentences

( 2,285,059 )

$ ( 1,088,399 )

$ ( 660,257 )

Other income (expense)

Income tax expense

NET INCOME (LOSS)

$ ( 1,913,891 )

$ ( 485,220 )

Page 77 of 91

UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 17 – 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.

NOTE 14 – SUBSEQUENT EVENTS

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 (Note 14).

On March 8, 2023, the Wadley agreement (Note 12) was amended and the due diligence period was extended to October 15, 2023.

Page 78 of 91

The Company has two subsidiaries in Mexico, US Antimony de Mexico, S.A.

(“USAMSA”) and Antimonio de Mexico, S.A.

On March 11, 2024, the Company shut down the operations of USAMSA, terminated a majority of USAMSA employees, the cost of which related to this employee termination was approximately $ 40,000 , and announced its plans to sell, lease, or dispose of its USAMSA subsidiary, operations, or assets.

The USAMSA subsidiary primarily includes the Company’s Madero antimony and precious metals plant in Parras de la Fuente Coahuila, Mexico and its Puerto Blanco antimony and precious metals plant in San Luis de la Paz Guanajuato, Mexico.

The Company intends to sell or lease its USAMSA subsidiary, operations, or assets over the next year and has initiated an active search for buyers or leasing opportunities of its operations and/or existing assets.

The Company will maintain its existing Los Juarez mining claims and concessions in Cadereyta de Montes Queretaro, Mexico, which are included in our ADM subsidiary.

There are presently no active operations at Los Juarez.

In March 2024, the Company received a favorable ruling from its appeal with no assessment due related to this audit of USAMSA’s 2013 income tax return by SAT.

This ruling supports the Company’s position on this tax matter and has no impact on the Company’s financial statements at December 31, 2023.

Mexico’s lower court will issue a final ruling on this matter as to whether this decision can be appealed.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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 8. Financial Statements and Supplementary Data