UNITED STATES ANTIMONY CORP 10-K

Item 8. Financial Statements and Supplementary Data. Index to Financial Statements: 1. Report of Independent Registered Public Accounting Firm; PCAOB ID - 444 F-1 2. Consolidated Balance Sheets as of December 31, 2023 and 2022; F-2 3. Consolidated Statements of Operations for the years ended December 31, 2023 and 2022 F-3 4. Consolidated Statements of Changes in Stockholders’ Equity F-4 5. Consolidated Statements of Cash Flows for the years ended December 31, 2023 and 2022 F-5 6. Notes to Consolidated Financial Statements F-6 46 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the board of directors of United States Antimony Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of United States Antimony Corporation (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of operations, changes in stockholders’ equity and cash flows for each of the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter Critical audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. We have served as the Company's independent auditor since 1998. Assure CPA, LLC Spokane, WA April 12, 2024 F-1 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2023 and 2022 December 31, 2023 December 31, 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 11,899,574 $ 19,060,378 Certificates of deposit 72,898 259,857 Accounts receivable, net 625,256 784,457 Inventories, net 1,386,109 1,375,068 Prepaid expenses and other current assets 92,369 137,599 Total current assets 14,076,206 21,617,359 Properties, plants and equipment, net 13,454,491 12,128,124 Restricted cash for reclamation bonds 55,061 57,288 IVA receivable and other assets, net 509,237 897,679 Total assets $ 28,094,995 $ 34,700,450 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 456,935 $ 628,803 Accrued liabilities 133,841 201,149 Accrued liabilities - directors 124,810 72,963 Royalties payable 153,429 435,075 Dividends payable - 787,730 Long-term debt, current portion 28,443 94,150 Total current liabilities 897,458 2,219,870 Long-term debt, net of current portion - 217,855 Stock payable to directors 38,542 61,459 Asset retirement obligations and accrued reclamation costs 1,638,027 332,011 Total liabilities 2,574,027 2,831,195 COMMITMENTS AND CONTINGENCIES (Note 10) STOCKHOLDERS' EQUITY Preferred stock $ 0.01 par value, 10,000,000 shares authorized: Series A: 0 shares issued and outstanding - - Series B: 750,000 shares issued and outstanding (liquidation preference $ 967,500 and $ 960,000 , respectively) 7,500 7,500 Series C: 177,904 shares issued and outstanding (liquidation preference $ 97,847 both years) 1,779 1,779 Series D: 0 and 1,692,672 shares issued and outstanding (liquidation preference $ 0 and $ 5,019,410 , respectively) - 16,926 Common stock, $ 0.01 par value, 150,000,000 shares authorized; 107,647,317 and 106,373,341 shares issued and outstanding, respectively 1,076,472 1,063,732 Additional paid-in capital 63,853,836 64,052,630 Shares to be returned to treasury - ( 202,980 ) Accumulated deficit ( 39,418,619 ) ( 33,070,332 ) Total stockholders' equity 25,520,968 31,869,255 Total liabilities and stockholders' equity $ 28,094,995 $ 34,700,450 The accompanying notes are an integral part of these consolidated financial statements. F-2 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the years ended December 31, 2023 and 2022 For the years ended December 31, 2023 2022 REVENUES $ 8,693,155 $ 11,044,707 COST OF REVENUES 12,037,939 9,048,517 GROSS PROFIT (LOSS) ( 3,344,784 ) 1,996,190 OPERATING EXPENSES: General and administrative 1,642,269 658,242 Salaries and benefits 639,172 481,106 Professional fees 643,208 302,901 Loss on disposal of property, plant & equipment 217,921 - Other operating expenses 581,647 205,736 TOTAL OPERATING EXPENSES 3,724,217 1,647,985 INCOME (LOSS) FROM OPERATIONS ( 7,069,001 ) 348,205 OTHER INCOME (EXPENSE): Interest and investment income 618,762 103,800 Change in fair value of investments - ( 37,882 ) Trademark and licensing income 32,007 70,502 Other miscellaneous income (expense) 69,945 ( 39,891 ) TOTAL OTHER INCOME (EXPENSE) 720,714 96,529 INCOME (LOSS) BEFORE INCOME TAX ( 6,348,287 ) 444,734 Income tax expense - 16,073 NET INCOME (LOSS) ( 6,348,287 ) 428,661 Preferred dividends ( 7,500 ) ( 47,278 ) Net income (loss) available to common stockholders $ ( 6,355,787 ) $ 381,383 Net income (loss) per share of common stock: Basic $ ( 0.06 ) Nil Diluted $ ( 0.06 ) Nil Weighted average shares outstanding: Basic 107,551,931 106,287,359 Diluted 107,551,931 106,287,359 The accompanying notes are an integral part of these consolidated financial statements. F-3 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For the years ended December 31, 2023 and 2022 Total Preferred Stock Common stock Additional Paid In Shares to be returned to Accumulated Shares Amount Shares Amount Capital treasury Deficit Total Balances, December 31, 2021 2,620,576 $ 26,205 106,240,361 $ 1,062,402 $ 63,991,459 $ - $ ( 32,711,263 ) $ 32,368,803 Issuance of common stock for directors' fees - - 132,980 1,330 61,171 - - 62,501 Series D preferred dividends declared - - - - - - ( 787,730 ) ( 787,730 ) Repurchase of common stock - - - - - ( 202,980 ) - ( 202,980 ) Net income - - - - - - 428,661 428,661 Balances, December 31, 2022 2,620,576 $ 26,205 106,373,341 $ 1,063,732 $ 64,052,630 $ ( 202,980 ) $ ( 33,070,332 ) $ 31,869,255 Common stock buyback and retirement - - ( 418,696 ) ( 4,187 ) ( 198,793 ) 202,980 - - Conversion of Preferred Series D to Common Stock ( 1,692,672 ) ( 16,926 ) 1,692,672 16,927 ( 1 ) - - - Net loss - - - - - - ( 6,348,287 ) ( 6,348,287 ) Balances, December 31, 2023 927,904 $ 9,279 107,647,317 $ 1,076,472 $ 63,853,836 $ - $ ( 39,418,619 ) $ 25,520,968 The accompanying notes are an integral part of these consolidated financial statements. F-4 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2023 and 2022 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ ( 6,348,287 ) $ 428,661 Adjustments to reconcile net income (loss) to net cash used by operating activities: Depreciation and amortization 959,445 909,220 Accretion of asset retirement obligation 13,471 17,766 Changes in asset retirement obligation estimates 324,984 - Stock payable to directors ( 22,917 ) 61,459 Loss on disposal of property, plant & equipment 217,921 - Write down of inventory to net realizable value 2,073,404 277,146 Allowance for doubtful accounts on accounts receivable 239,772 59,350 Reserve on IVA receivable 687,534 - Change in fair value of investments - 59,246 Other non-cash items ( 7,500 ) ( 647 ) Change in: Accounts receivable, net ( 80,571 ) 47,507 Inventories, net ( 2,084,445 ) ( 596,794 ) Prepaid expenses and other current assets 45,230 ( 137,599 ) IVA receivable and other assets, net ( 299,092 ) ( 654,958 ) Accounts payable ( 171,868 ) ( 756,949 ) Accrued liabilities ( 67,308 ) ( 72,636 ) Accrued liabilities – directors 51,847 21,118 Royalties payable ( 281,646 ) 88,833 Net cash used by operating activities ( 4,750,026 ) ( 249,277 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from redemption of certificates of deposit 186,959 - Purchase of investments - ( 16,184,893 ) Proceeds from sale of investments - 16,125,647 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: Payments on Dividends Payable ( 787,730 ) - Principal payments on long-term debt ( 283,562 ) ( 64,745 ) Repurchase of common stock - ( 202,980 ) Net cash used by financing activities ( 1,071,292 ) ( 267,725 ) 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 19,117,666 21,420,329 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR $ 11,954,635 $ 19,117,666 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid in cash $ 10,521 $ 15,141 NON-CASH FINANCING AND INVESTING ACTIVITIES: Equipment purchased with note payable $ - $ 161,600 Issuance of common stock for directors $ - $ 62,501 Preferred Series D dividends payable declared $ - $ 787,730 Common stock buyback and retirement $ 202,980 $ - Conversion of Preferred Series D to Common Stock $ 16,926 $ - The accompanying notes are an integral part of these consolidated financial statements. F-5 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - NATURE OF OPERATIONS 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. and Canada. 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, 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. de C.V. are inactive. Use of Estimates 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. Reclassifications Certain reclassifications have been made to conform prior period amounts to the current presentation. These reclassifications have no effect on the results of operations, stockholders’ equity and cash flows as previously reported. 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 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. F-6 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Accounts Receivable 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 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. Since the Company’s antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company’s control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories. The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value. Foreign Currency Transactions All amounts in the financial statements are presented in U.S. 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. F-7 Table of Contents 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 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. 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 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 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 and salvage values 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 assets. 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. F-8 Table of Contents 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 primarily of the following: ☐ Antimony: includes antimony oxide, antimony metal, and antimony trisulfide ☐ Zeolite: includes coarse and fine zeolite crushed in various sizes ☐ Precious Metals: includes unrefined and refined gold and silver 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. F-9 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Common Stock Issued for Consideration Other than Cash All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the common stock issued. 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 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. Income Taxes 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, 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. These assumptions require significant judgment about the forecasts of future taxable income and the assumptions are consistent with the plans and estimates that the Company is using to manage its underlying businesses. 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 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 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. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, certificates of deposits, restricted cash, and long-term debt. The carrying value of these instruments approximates fair value based on their contractual terms. F-10 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fair Value Measurements When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based 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. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2023 and 2022, the Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis. Contingencies In determining accruals and disclosures with respect to loss contingencies, the Company evaluates such accruals and contingencies for each reporting period. Estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability could be incurred, and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. New Accounting Pronouncements 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. 2016 - 13, “ Financial Instruments – Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments ”, which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted the ASU on January 1, 2023, and determined that it had no material impact on the Company’s 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. F-11 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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: December 31, December 31, 2023 2022 Warrants 12,346,215 12,346,215 Convertible preferred stock - 1,692,672 TOTAL POSSIBLE DILUTIVE SHARES 12,346,215 14,038,887 NOTE 4 – REVENUE RECOGNITION Products consist of the following: · Antimony: includes antimony oxide, antimony metal, and antimony trisulfide · Zeolite: includes coarse and fine zeolite crushed in various sizes · Precious metals: 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 December 31, December 31, 2023 2022 Antimony product revenue $ 5,904,480 $ 7,631,670 Zeolite product revenue 2,462,179 3,151,330 Precious metals product revenue 326,496 261,707 TOTAL REVENUES $ 8,693,155 $ 11,044,707 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. F-12 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 December 31, December 31, 2023 2022 United States revenue $ 6,854,740 $ 9,272,698 Canada revenue 1,838,415 1,772,009 TOTAL REVENUES $ 8,693,155 $ 11,044,707 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 December 31, December 31, 2023 2022 Customer A revenue $ 1,548,283 $ 1,882,667 Customer B revenue 1,451,950 1,863,958 Customer C revenue 1,037,307 - Total significant customer revenue $ 4,037,540 $ 3,746,625 Customer revenue as a % of total revenues 46 % 34 % 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. Customer receivables representing more than 10 % of our net accounts receivable balance as of December 31, 2023 and 2022 were as follows: December 31, December 31, 2023 2022 Customer B receivables $ 202,382 $ - Customer A receivables 194,007 - Customer E receivables - 188,187 Total significant customer receivables $ 396,389 $ 188,187 Customer receivables as a % of net accounts receivable 63 % 24 % 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. F-13 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 – INVENTORIES Inventories by type at December 31, 2023 and 2022 were as follows: December 31, December 31, 2023 2022 Antimony oxide $ 354,431 $ 142,230 Antimony metal 454,748 509,643 Antimony ore and concentrates 71,884 545,373 Total antimony inventory $ 881,063 $ 1,197,246 Zeolite 505,046 177,822 TOTAL INVENTORIES $ 1,386,109 $ 1,375,068 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 primarily of saleable zeolite material in Idaho. F-14 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – PROPERTIES, PLANTS AND EQUIPMENT 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 Zeolite Segment Precious Metals USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,675,444 $ 9,395,022 $ 5,336,808 $ 1,347,912 $ 17,755,186 Buildings 243,248 875,024 2,025,043 - 3,143,315 Land and other 2,727,198 2,764,401 687,639 - 6,179,238 Construction in progress - - 8,951 - 8,951 PP&E, gross $ 4,645,890 $ 13,034,447 $ 8,058,441 $ 1,347,912 $ 27,086,690 Accumulated depreciation ( 2,661,719 ) ( 6,785,041 ) ( 3,524,130 ) ( 661,309 ) ( 13,632,199 ) PP&E, net $ 1,984,171 $ 6,249,406 $ 4,534,311 $ 686,603 $ 13,454,491 December 31, 2022 Antimony Segment Zeolite Segment Precious Metals USAC USAMSA BRZ Segment TOTAL Plant and equipment $ 1,760,926 $ 9,090,860 $ 4,996,216 $ 1,347,912 $ 17,195,914 Buildings 243,248 870,534 1,047,023 - 2,160,805 Land and other 2,431,387 2,796,037 16,753 - 5,244,177 Construction in progress - 280,406 170,535 - 450,941 PP&E, gross $ 4,435,561 $ 13,037,837 $ 6,230,527 $ 1,347,912 $ 25,051,837 Accumulated depreciation ( 2,767,803 ) ( 6,212,433 ) ( 3,392,861 ) ( 550,616 ) ( 12,923,713 ) PP&E, net $ 1,667,758 $ 6,825,404 $ 2,837,666 $ 797,296 $ 12,128,124 The properties, plants and equipment by location was as follows: 2023 2022 United States properties, plants and equipment, net $ 6,579,111 $ 4,677,428 Mexico properties, plants and equipment, net 6,875,380 7,450,696 Total PP&E, net $ 13,454,491 $ 12,128,124 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. F-15 Table of Contents 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, 2023 2022 Asset retirement obligation, beginning of period $ 224,511 $ 191,149 Revisions to estimate of retirement obligations 1,075,061 15,596 Accretion expense 13,471 17,766 Changes in asset retirement obligation estimates 324,984 - Asset retirement obligation, end of period $ 1,638,027 $ 224,511 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, 2023 and December 31, 2022 was as follows: At December 31, 2023 2022 Promissory note payable to First Security Bank of Missoula, bearing interest at 2.25%, payable in 59 monthly installments of $1,409 with a final payment of $152,726 maturing November 9, 2026; collateralized by a lien on Certificate of Deposit $ - $ 201,908 Installment contract payable to Caterpillar Financial Services, bearing interest at 6.65%, payable in 24 monthly installments of $7,210 maturing April 28, 2024; collateralized by 2007 Caterpillar 740 articulated truck 28,443 110,097 Total debt $ 28,443 $ 312,005 Less current portion of debt ( 28,443 ) ( 94,150 ) Long term portion of debt $ - $ 217,855 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. F-16 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – INCOME AND OTHER TAXES Income tax expense for the years ended December 31, 2023 and 2022 consisted of the following: 2023 2022 Current income tax expense: Domestic $ - $ 16,073 Foreign - - Total current - 16,073 Deferred income tax expense: Domestic - - Foreign - - Total deferred - - Total income tax expense $ - $ 16,073 Domestic and foreign components of income (loss) before income taxes for the years ended December 31, 2023 and 2022 were as follows: 2023 2022 Domestic $ ( 397,156 ) $ 2,729,793 Foreign ( 5,951,131 ) ( 2,285,059 ) Income (loss) before income taxes $ ( 6,348,287 ) $ 444,734 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: 2023 2022 U.S. federal statutory tax provision (benefit) $ ( 1,333,000 ) $ 93,073 State income tax provision (benefit) net ( 88,000 ) 67,000 Foreign taxes ( 536,000 ) ( 136,000 ) VAT refund reserve and other non-deductible items 1,008,000 4,000 Adjustment for prior year tax estimate to actual-domestic ( 7,000 ) 69,000 Adjustment for prior year tax estimate to actual-foreign 136,000 ( 32,000 ) Impact on change in state tax rate - 7,000 Impact on change in foreign exchange rate ( 275,000 ) ( 83,000 ) Change in valuation allowance - Domestic 170,000 ( 358,000 ) Change in valuation allowance - Foreign 925,000 385,000 Total income tax expense $ - $ 16,073 F-17 Table of Contents 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: 2023 2022 Deferred tax asset: Domestic net operating loss carry forward $ 646,000 $ 307,000 Foreign net operating loss carry forward 2,883,000 1,958,000 Allowance for doubtful accounts 64,000 7,000 Other 5,000 - Deferred tax asset $ 3,598,000 $ 2,272,000 Valuation allowance (domestic) ( 228,000 ) ( 58,000 ) Valuation allowance (foreign) ( 2,883,000 ) ( 1,958,000 ) Total deferred tax asset $ 487,000 $ 256,000 Deferred tax liability: Property, plant, and equipment ( 487,000 ) ( 245,000 ) Other - ( 11,000 ) Total deferred tax liability $ ( 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, 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. 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 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. F-18 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Mexican Tax Assessment In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which was approximately $ 666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The assessment was settled in 2018 with no assessment 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. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments. 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. 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 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, 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. F-19 Table of Contents 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 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 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 Exercise Price Expiration Date Remaining life (years) 2,285,715 0.46 7/31/2025 1.58 804,000 0.46 1/27/2026 2.08 7,650,000 0.85 8/3/2026 2.59 1,606,500 0.85 2/1/2026 2.09 12,346,215 F-20 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Preferred Stock 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. Series B 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); has no voting rights (absent default in payment of declared dividends); and is entitled to cumulative dividends of $ 0.01 per share per year, payable if and when declared by the Board of Directors. During each of the years ended December 31, 2023 and 2022, the Company recognized $ 7,500 in Series B preferred stock dividend. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series B preferred stockholders is $ 1.00 per share plus dividends in arrears. No dividends have been declared or paid with respect to the Series B preferred stock. The Series B Preferred stock is no longer convertible to shares of the Company’s common stock. At December 31, 2023 and 2022, cumulative dividends in arrears on the outstanding Series B shares were $ 217,500 and $ 210,000 , respectively. Series C 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. 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. F-21 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 – BUSINESS SEGEMENTS 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: December 31, December 31, Total Assets: 2023 2022 Antimony segment: United States total assets $ 14,769,408 $ 21,636,386 Mexico total assets 7,132,885 8,484,131 Subtotal antimony segment $ 21,902,293 $ 30,120,517 Precious metals segment: United States total assets $ 92,718 $ 172,004 Mexico total assets 625,974 625,292 Subtotal precious metals segment $ 718,692 $ 797,296 Zeolite segment 5,474,010 3,782,637 Total Assets $ 28,094,995 $ 34,700,450 Total capital expenditures by segment for the years ended December 31, 2023 and 2022 were as follows: Capital expenditures December 31, December 31, 2023 2022 Antimony segment: United States capital expenditures $ 61,851 $ 81,931 Mexico capital expenditures 182,321 324,961 Subtotal antimony segment $ 244,172 $ 406,892 Precious metals segment - 17,518 Zeolite segment 1,284,500 1,463,605 TOTAL CAPITAL EXPENDITURES $ 1,528,672 $ 1,888,015 F-22 Table of Contents 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 Antimony Total Precious USA Mexico Antimony Metals Zeolite Total Total revenues 5,416,092 488,388 5,904,480 326,496 2,462,179 8,693,155 Depreciation and amortization 39,328 550,683 590,011 110,693 258,741 959,445 Income (loss) from operations ( 662,326 ) ( 5,857,872 ) ( 6,520,198 ) 215,803 ( 764,606 ) ( 7,069,001 ) Other income (expense) 720,714 Income tax expense - NET INCOME (LOSS) ( 6,348,287 ) Segment operations for the year ended December 31, 2022 Antimony Antimony Total Precious USA Mexico Antimony Metals Zeolite Total Total revenues 6,803,848 827,822 7,631,670 261,707 3,151,330 11,044,707 Depreciation and amortization 40,978 589,877 630,855 110,540 167,825 909,220 Income (loss) from operations 2,307,649 ( 2,285,059 ) 22,590 151,167 174,448 348,205 Other income (expense) 96,529 Income tax expense ( 16,073 ) NET INCOME (LOSS) 428,661 NOTE 14 – SUBSEQUENT EVENTS The Company has two subsidiaries in Mexico, US Antimony de Mexico, S.A. de C.V. (“USAMSA”) and Antimonio de Mexico, S.A. de C.V. (“ADM”). 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. F-23 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.