UNITED STATES ANTIMONY CORP 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Readers should note that, in addition to the historical information contained herein, this Quarterly Report and the exhibits attached hereto contain “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon current expectations and beliefs concerning future developments and their potential effects on the Company including matters related to the Company's operations, pending contracts and future revenues, financial performance, profitability, ability to execute on its increased production and installation schedules for planned capital expenditures, and the size of forecasted deposits. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are described in the Company's most recent filings, including Form 10-K, Form 10-Q, and Form 8-K with the Securities and Exchange Commission. Any statement that expresses or involves discussions or descriptions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance, often, but not always using words or phrases such as “believes”, “expects” or “does not expect”, “is expected”, “outlook”, “anticipates” or “does not anticipate”, “plans”, “estimates”, “forecast”, “project”, “pro forma”, or “intends”, or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken, occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak or describe only as of the date they are made and are subject to assumptions and uncertainties. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation, risks related to: · The Company’s properties being in the exploration stage; · Macroeconomic factors; · Continued operational losses; · The mineral operations being subject to government regulation; · The Company’s ability to obtain additional capital to develop the Company’s resources, if any; · Concentration of customers; · Increase in energy costs; · Mineral exploration and development activities; · Mineral estimates; · The Company’s insurance coverage for operating risks; · The fluctuation of prices for antimony, precious metals, such as gold and silver, and minerals in general; · The competitive industry of mineral exploration; · The title and rights in the Company’s mineral properties; · Environmental hazards; · The possible dilution of the Company’s common stock from additional financing activities; · Metallurgical and other processing problems; · Unexpected geological formations; · Global economic and political conditions; · Staffing in remote locations; · Changes in product costing; · Inflation on operational costs and profitability; 25 Table of Contents · Competitive technology positions and operating interruptions (including, but not limited to, labor disputes, leaks, fires, flooding, landslides, power outages, explosions, unscheduled downtime, transportation interruptions, war and terrorist activities); · Global pandemics or civil unrest; · Mexican labor and cartel issues regarding safety and organized control over our properties; · The positions and associated outcomes of Mexican and other taxing authorities; · The possible dilution of the Company’s common stock from additional financing activities; · Use of cash and cash equivalents ineffectively; · Cybersecurity and business disruptions; · Potential conflicts of interest with the Company’s management; · Not realizing the value of its USAMSA assets in Mexico upon sale or disposal; and, · The Company’s common stock. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Risk Factors”, “Description of Business” and “Management’s Discussion and Analysis and Plan of Operation” of this Quarterly Report and in the Company’s filings, including Form 10-K, Form 10-Q, and Form 8-K, with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United States Antimony Corporation disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law. The Company advises readers to carefully review the reports and documents filed from time to time with the Securities and Exchange Commission (the “SEC”), particularly the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You should read this report with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect and from our historical results. This report contains estimates, projections and other information concerning our industry, our business and the markets for our products. We obtained the industry, market and similar data set forth in this report from our own internal estimates and research and from industry research, publications, surveys and studies conducted by third parties, including governmental agencies. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. While we believe that the data we use from third parties is reliable, we have not separately verified this data. You are cautioned not to give undue weight to any such information, projections and estimates. As used in this Quarterly Report, the terms “we,” “us,” “our,” “United State Antimony Corporation,”, “US Antimony,” “USAC,” and the “Company”, mean United States Antimony Corporation, unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated. Management’s Discussion and Analysis is intended to be read in conjunction with the Company’s consolidated financial statements and the integral notes (“Notes”) thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023. The following statements may be forward-looking in nature and actual results may differ materially. 26 Table of Contents DESCRIPTION OF BUSINESS History United States Antimony Corporation was incorporated in Montana in January 1970 to mine and produce antimony products. In December 1983, the Company suspended its antimony mining operations in the U.S. but continued to produce antimony products using foreign sources of antimony ore. In April 1998, the Company formed US Antimony de Mexico, S.A. de C.V. (“USAMSA”) to smelt antimony in Mexico, and, in August 2005, the Company formed Antimonio de Mexico, S.A. de C.V. (“ADM”) to explore and develop antimony and precious metal deposits in Mexico. The Company formed Bear River Zeolite Company (“BRZ”) in 2000 for the purpose of mining and producing zeolite in Idaho. Our principal business is the production and sale of antimony, precious metals, and zeolite products. In May 2012, our shares of common stock started trading on the NYSE MKT (now NYSE AMERICAN) under the symbol UAMY. On March 11, 2024, the Company shut down the operations of USAMSA, which was part of the antimony segment, and announced its intent to sell its USAMSA subsidiary. See Note 1 and Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information. The accounting requirements for reporting USAMSA as a discontinued operation were met in the first quarter of 2024. Accordingly, the condensed consolidated financial statements, Notes to Condensed Consolidated Financial Statements , and Management’s Discussion & Analysis and Plan of Operation reflect the results of USAMSA as a discontinued operation and are excluded from continuing operations and segment results for all periods presented. Although we extract minerals from the Bear River Zeolite property located in Idaho that we later process and sell, we have not yet prepared a technical report summary for the Bear River Zeolite property making a determination on the property’s mineral resources or mineral reserves. However, the Company has completed test hole drilling and has retained a qualified third-party expert who is in the process of preparing a technical reserve report for the Bear River Zeolite property. We strive to achieve excellence in mine safety and health performance and work with government agencies to ensure compliance with environmental regulations and health and safety standards. The Company is organized and managed by the following four segments, which represent our operating units: United States antimony segment, Mexico antimony segment, zeolite segment, and precious metals segment. See Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for the Mexico discontinued operations that are excluded from continuing operations and segment results for all periods presented. United States Antimony Segment Our United States antimony segment consists of an antimony plant in the Burns Mining District of Sanders County in Montana, which processes antimony ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals. Antimony oxide is a fine, white powder. Our antimony oxide is used in conjunction with a halogen to form a synergistic flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper. Our antimony oxide is also used 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. The precious metals processed at this plant in Montana are included in our precious metals segment. We closed our antimony mine and mill in Montana in December 1983 because antimony ore could be purchased more economically from foreign sources. Our mine and mill are less than one mile from our current antimony smelter plant in Montana. We hold one patented claim at this mine. We also own mining claims in Alaska and Ontario, Canada. However, currently, the Company has no active operations in Alaska or Ontario, Canada. As a result of the mine and mill closure in Montana, we have relied on sources outside the U.S. for antimony ore since 1983, and there are risks of interruption in procurement from these sources and volatile changes in world market prices for these materials that are not controllable by us. We anticipate continuing to receive antimony ore primarily from an existing supplier in Canada. In addition, we continue to actively research other domestic and non-domestic sources for antimony ore that are economically profitable. The acquisition of antimony ore is technically complex and a function of the country’s laws and regulations. Our purchasing consequently requires flexibility regarding supply agreements, credit support, etc. and is tailored accordingly to specific suppliers. 27 Table of Contents We estimate (but have not independently confirmed) that our present share of the domestic and international markets for antimony oxide products is approximately 4% and less than 1%, respectively. We are the only significant U.S. producer of antimony products. We believe we are competitive both domestically and world-wide due to the following: · We are the only U.S. domestic processor of antimony products. · We can process ore quickly and have minimal shipping time to domestic customers. · We have a reputation for quality products delivered on a timely basis. · We have the only operating, permitted antimony smelter located in the U.S. Mexico Antimony Segment The Company has two subsidiaries in Mexico, USAMSA and ADM. On March 11, 2024, we shut down the operational activities of USAMSA, which primarily includes the following two antimony and precious metals processing plants in Mexico: (1) the Madero smelter in Coahuila, and (2) the Puerto Blanco flotation mill, oxide circuit, and cyanide leach circuit in Guanajuato. The Company intends to sell its USAMSA subsidiary over the next year and has initiated an active search for buyers of its operations and/or assets. See Note 1 and Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information. We will maintain our 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. Zeolite Segment Our zeolite segment consists of a mine and processing plant located in Preston, Idaho, Bear River Zeolite, Inc. (“BRZ”), which produces zeolite. Our zeolite is used for various purposes including soil amendment and fertilizer, water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, and other miscellaneous applications. BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for a royalty payment. The annual royalty payment is the greater of: (1) the minimum annual royalty of $60,000, adjusted annually for the Consumer Price Index for all Urban Consumers, or (2) $11.00 per ton for the first ten thousand tons, $9.90 per ton for tons in excess of ten thousand up to twenty thousand, and $8.80 per ton for tons in excess of twenty thousand. This Zeolite LLC lease also requires BRZ to pay $10,000 to the lessor on March 1 of each year during the term of the lease, which ends March 1, 2025. BRZ also pays two other royalties on the sale of zeolite products. On a combined basis, BRZ pays royalties ranging from 8% to 13% on the sale of zeolite products. In addition, BRZ can surface mine and process zeolite on property owned by the U.S. Bureau of Land Management that is located adjacent to the Company’s Preston, Idaho property after obtaining required permits. 28 Table of Contents “Zeolite” refers to a group of industrial minerals that consist of hydrated aluminosilicates that hold cations such as calcium, sodium, ammonium, various heavy metals, and potassium in their crystal lattice. Water is loosely held in cavities in the lattice. BRZ zeolite is regarded as one of the best zeolites in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr. (which predicts plant nutrient availability and retention in soil), its hardness and high clinoptilolite content (which is an effective barrier to prevent problematic radionuclide movement), its absence of clay minerals, and its low sodium content. Our zeolite has been used in: ☐ Soil Amendment and Fertilizer . Zeolite has been successfully used to fertilize golf courses, sports fields, parks and common areas, and high value agricultural crops. ☐ Water Filtration . Zeolite is used for particulate, heavy metal and ammonium removal in swimming pools, municipal water systems, industrial water discharge streams, fisheries, fish farms, and aquariums. ☐ Sewage Treatment . Zeolite is used in sewage treatment plants to remove nitrogen and as a carrier for microorganisms. ☐ Nuclear Waste and Other Environmental Cleanup . Zeolite has shown a strong ability to selectively remove strontium, cesium, radium, uranium, and various other radioactive isotopes from solution. Zeolite can also be used for the cleanup of soluble metals such as mercury, chromium, copper, lead, zinc, arsenic, molybdenum, nickel, cobalt, antimony, calcium, silver and uranium. ☐ Odor Control . A major cause of odor around cattle, hog, and poultry feed lots is the generation of the ammonium in urea and manure. The ability of zeolite to absorb ammonium prevents the formation of ammonia gas, which disperses the odor. ☐ Gas Separation . Zeolite has been used for some time to separate gases, to re-oxygenate downstream water from sewage plants, smelters, pulp and paper plants, and fishponds and tanks, and to remove carbon dioxide, sulfur dioxide and hydrogen sulfide from methane generators as organic waste, sanitary landfills, municipal sewage systems, animal waste treatment facilities, and is excellent in pressure swing apparatuses. ☐ Animal Nutrition . According to third-party research, feeding up to 2% zeolite increases growth rates, decreases conversion rates, and prevents scours. ☐ Miscellaneous Uses . Other uses include catalysts, petroleum refining, concrete, solar energy and heat exchange, desiccants, pellet binding, horse and kitty litter, floor cleaner, traction control, ammonia removal from mining waste, and carriers for insecticides, pesticides and herbicides. Precious Metals Segment Our precious metals segment consists of a precious metals recovery plant that is operated in conjunction with the antimony processing plant in Montana. Precious metals are recovered in the leach circuit and settling pond after the ore goes through the crushing and flotation cycles. When precious metals are contained in antimony source, the metallurgical techniques employed for the recovery of antimony are altered to also recover the precious metals. The principal source of antimony concentrates bearing precious metals comes from our Canadian supplier, who also purchases these precious metals back from the Company. The sales of this product are intermittent throughout the year. SELECTED FINANCIAL DATA. Consolidated Statements of Operations Information: For the three months ended For the nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenues $ 2,421,020 $ 2,063,558 $ 8,066,190 $ 6,539,519 Costs of revenues 1,995,252 1,805,150 5,908,877 5,499,709 Gross profit 425,768 258,408 2,157,313 1,039,810 Total operating expenses 1,270,811 622,139 3,284,706 1,521,000 Loss from continuing operations (845,043 ) (363,731 ) (1,127,393 ) (481,190 ) Total other income 161,946 178,946 474,693 566,754 Income tax expense - - - - Income (loss) from continuing operations $ (683,097) $ (184,785) $ (652,700) $ 85,564 29 Table of Contents Consolidated Balance Sheet Information: September 30, 2024 December 31, 2023 Working capital $ 12,671,074 $ 12,963,081 Total assets $ 23,560,877 $ 21,547,455 Accumulated deficit $ (40,266,104) $ (39,418,619) Total stockholders’ equity $ 25,127,049 $ 25,520,968 Operational and Financial Performance of Continuing Operations by Segment: Antimony Financial and operational performance of antimony for the three months ended September 30, 2024 and 2023 was as follows: For the three months ended Antimony - Continuing Operations September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 1,338,640 $ 1,391,733 $ (53,093) -3.8 % Gross profit $ 240,581 $ 614,632 $ (374,051) -60.9 % Pounds of antimony sold 269,001 288,485 (19,484 ) -6.8 % Average sales price per pound $ 4.98 $ 4.82 $ 0.16 3.2 % Average cost per pound $ 4.08 $ 2.69 $ 1.39 51.5 % Average gross profit per pound $ 0.89 $ 2.13 $ (1.24) -58.0 % Financial and operational performance of antimony for the nine months ended September 30, 2024 and 2023 was as follows: For the nine months ended Antimony - Continuing Operations September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 5,381,803 $ 4,356,077 $ 1,025,726 23.5 % Gross profit $ 2,221,383 $ 1,010,404 $ 1,210,979 119.9 % Pounds of antimony sold 1,138,554 910,413 228,141 25.1 % Average sales price per pound $ 4.73 $ 4.78 $ (0.05) -1.2 % Average cost per pound $ 2.78 $ 3.67 $ (0.89) -24.5 % Average gross profit per pound $ 1.95 $ 1.11 $ 0.84 75.8 % Antimony revenue increased $1,025,726, or 23.5%, for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to higher volume from increased demand for antimony oxide and metal. A portion of this increased demand for antimony metal was related to the processing of customer-owned antimony ore. The sales price per pound related to the processing of customer-owned antimony ore was lower than the sales price per pound for our other antimony products, which was the primary reason for the decrease in our average sales price per pound during the nine months ended September 30, 2024, as compared to the prior year. Gross profit increased $1,210,979 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to improved cost efficiencies with higher volume and the prior year sale of purchased finished antimony trioxide at a lower gross margin. Also, the improved results related to average gross profit per pound in both nine-month periods presented were due to discontinuing our Mexico antimony operations, the results of which are not included in the continuing operations information presented in Management’s Discussion and Analysis and Plan of Operation, but rather in discontinued operations, which is presented in Note 12 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report. 30 Table of Contents Zeolite Financial and operational performance of zeolite for the three months ended September 30, 2024 and 2023 was as follows: For the three months ended Zeolite September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 682,947 $ 671,825 $ 11,122 1.7 % Gross profit (loss) $ (208,392 ) $ (350,370 ) $ 141,978 -40.5 % Tons of zeolite sold 2,603 2,254 349 15.5 % Average sales price per ton $ 262 $ 298 $ (36 ) -12.0 % Average cost per ton $ 342 $ 454 $ (112 ) -24.5 % Average gross profit (loss) per ton $ (80 ) $ (155 ) $ 75 -48.5 % Financial and operational performance of zeolite for the nine months ended September 30, 2024 and 2023 was as follows: For the nine months ended Zeolite September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 2,280,338 $ 1,941,009 $ 339,329 17.5 % Gross profit (loss) $ (450,556) $ (195,464) $ (255,092) 130.5 % Tons of zeolite sold 8,611 8,007 604 7.5 % Average sales price per ton $ 265 $ 242 $ 23 9.2 % Average cost per ton $ 317 $ 267 $ 50 18.9 % Average gross profit (loss) per ton $ (52) $ (24) $ (28) 114.3 % Zeolite revenue increased $339,329, or 17.5%, for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to: · The increased average sales price per ton, which was mainly related to a price increase that was effective towards the end of 2023, and · The increased tons of zeolite sold, which was mainly related to increased demand and our ability to meet customer orders in a more timely fashion. Gross profit decreased by $255,092 for the nine months end September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to increased costs for maintenance, backup equipment leases, and related expenses in repairing older machinery and equipment, especially during production downtime. Precious Metals Financial and operational performance of precious metals for the three months ended September 30, 2024 and 2023 was as follows: For the three months ended Precious metals September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 399,433 - $ 399,433 n/a Gross profit (loss) $ 393,579 ($5,854) $ 399,433 -6823.2 % Ounces sold - gold 27.98 - 27.98 n/a Ounces sold - silver 11,631 - 11,631 n/a 31 Table of Contents Financial and operational performance of precious metals for the nine months ended September 30, 2024 and 2023 was as follows: For the nine months ended Precious metals September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 404,049 $ 242,433 $ 161,616 66.7 % Gross profit $ 386,486 $ 224,870 $ 161,616 71.9 % Ounces sold - gold 28.21 24.30 3.91 16.1 % Ounces sold - silver 11,269 15,074 (3,805 ) -25.2 % Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) In addition to our results determined in accordance with GAAP, we believe Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”), a non-GAAP financial measure, is a useful measure of our operating performance because it eliminates non-cash expenses that do not reflect our underlying business performance. We use this measure to facilitate a comparison of our operating performance on a consistent basis from period to period and to analyze the factors and trends affecting our business. EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP. We believe that the use of EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. Our EBITDA from continuing operations was a loss of ($306,853) for the nine months ended September 30, 2024, as compared to $342,071 for the nine months ended September 30, 2023. EBIDTA from continuing operations by segment for the three months ended September 30, 2024 and 2023 was as follows: For the three months ended Antimony September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 1,338,640 $ 1,391,733 $ (53,093) -3.8 % Cost of sales (1,098,059 ) (777,101 ) (320,958 ) 41.3 % Gross profit 240,581 614,632 (374,051 ) -60.9 % Total operating expenses (1,076,532 ) (593,088 ) (483,444 ) 81.5 % Income (loss) from operations (835,951 ) 21,544 (857,495 ) -3980.2 % Total other income (expense) 164,268 181,647 (17,379 ) -9.6 % Income tax expense - - - - Income (loss) - antimony (671,683 ) 203,191 (874,874 ) -430.6 % Interest expense - 1,126 (1,126 ) -100.0 % Income tax expense - - - - Depreciation and amortization 18,071 14,376 3,695 25.7 % EBITDA - antimony $ (653,612) $ 218,693 $ (872,305) -398.9 % 32 Table of Contents For the three months ended Zeolite September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 682,947 $ 671,825 $ 11,122 1.7 % Cost of sales (891,339 ) (1,022,195 ) 130,856 -12.8 % Gross profit (loss) (208,392 ) (350,370 ) 141,978 -40.5 % Total operating expenses (194,279 ) (29,051 ) (165,228 ) 568.7 % Income (loss) from operations (402,671 ) (379,421 ) (23,250 ) 6.1 % Total other income (expense) (2,322 ) (2,701 ) 379 -14.0 % Income tax expense - - - - Income (loss) - zeolite (404,993 ) (382,122 ) (22,871 ) 6.0 % Interest expense 3,538 1,049 2,489 237.3 % Income tax expense - - - - Depreciation and amortization 95,659 73,194 22,465 30.7 % EBITDA - zeolite $ (305,796) $ (307,879) $ 2,083 -0.7 % For the three months ended Precious Metals September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 399,433 $ - $ 399,433 n/a Cost of sales (5,854 ) (5,854 ) - - Gross profit (loss) 393,579 (5,854 ) 399,433 -6823.2 % Total operating expenses - - - - Income (loss) from operations 393,579 (5,854 ) 399,433 -6823.2 % Total other income (expense) - - - - Income (loss) - precious metals 393,579 (5,854 ) 399,433 -6823.2 % Interest expense - - - - Depreciation and amortization 5,854 5,854 - - EBITDA - precious metals $ 399,433 $ - $ 399,433 n/a 33 Table of Contents For the three months ended Consolidated September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 2,421,020 $ 2,063,558 $ 357,462 17.3 % Cost of sales (1,995,252 ) (1,805,150 ) (190,102 ) 10.5 % Gross profit 425,768 258,408 167,360 64.8 % Total operating expenses (1,270,811 ) (622,139 ) (648,672 ) 104.3 % Income (loss) from operations (845,043 ) (363,731 ) (481,312 ) 132.3 % Total other income (expense) 161,946 178,946 (17,000 ) -9.5 % Income tax expense - - - - Income (loss) - consolidated (683,097 ) (184,785 ) (498,312 ) 269.7 % Interest expense 3,538 2,175 1,363 62.7 % Income tax expense - - - - Depreciation and amortization 119,584 93,424 26,160 28.0 % EBITDA - consolidated $ (559,975) $ (89,186) $ (470,789) 527.9 % EBIDTA from continuing operations by segment for the nine months ended September 30, 2024 and 2023 was as follows: For the nine months ended Antimony September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 5,381,803 $ 4,356,077 $ 1,025,726 23.5 % Cost of sales (3,160,420 ) (3,345,673 ) 185,253 -5.5 % Gross profit 2,221,383 1,010,404 1,210,979 119.9 % Total operating expenses (2,752,830 ) (1,296,290 ) (1,456,540 ) 112.4 % Income (loss) from operations (531,447 ) (285,886 ) (245,561 ) 85.9 % Total other income (expense) 481,713 573,077 (91,364 ) -15.9 % Income tax expense - - - - Income (loss) - antimony (49,734 ) 287,191 (336,925 ) -117.3 % Interest expense - 3,843 (3,843 ) -100.0 % Income tax expense - - - - Depreciation and amortization 54,107 41,056 13,051 31.8 % EBITDA - antimony $ 4,373 $ 332,090 $ (327,717) -98.7 % 34 Table of Contents For the nine months ended Zeolite September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 2,280,338 $ 1,941,009 $ 339,329 17.5 % Cost of sales (2,730,894 ) (2,136,473 ) (594,421 ) 27.8 % Gross profit (loss) (450,556 ) (195,464 ) (255,092 ) 130.5 % Total operating expenses (531,876 ) (224,710 ) (307,166 ) 136.7 % Income (loss) from operations (982,432 ) (420,174 ) (562,258 ) 133.8 % Total other income (expense) (7,020 ) (6,323 ) (697 ) 11.0 % Income tax expense - - - - Income (loss) - zeolite (989,452 ) (426,497 ) (562,955 ) 132.0 % Interest expense 5,630 4,782 848 17.7 % Income tax expense - - - - Depreciation and amortization 268,547 189,263 79,284 41.9 % EBITDA - zeolite $ (715,275) $ (232,452) $ (482,823) 207.7 % For the nine months ended Precious Metals September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 404,049 $ 242,433 $ 161,616 66.7 % Cost of sales (17,563 ) (17,563 ) - - Gross profit 386,486 224,870 161,616 71.9 % Total operating expenses - - - - Income (loss) from operations 386,486 224,870 161,616 71.9 % Total other income (expense) - - - - Income (loss) - precious metals 386,486 224,870 161,616 71.9 % Interest expense - - - - Depreciation and amortization 17,563 17,563 - - EBITDA - precious metals $ 404,049 $ 242,433 $ 161,616 66.7 % 35 Table of Contents For the nine months ended Consolidated September 30, 2024 September 30, 2023 $ Change % Change Revenue $ 8,066,190 $ 6,539,519 $ 1,526,671 23.3 % Cost of sales (5,908,877 ) (5,499,709 ) (409,168 ) 7.4 % Gross profit 2,157,313 1,039,810 1,117,503 107.5 % Total operating expenses (3,284,706 ) (1,521,000 ) (1,763,706 ) 116.0 % Income (loss) from operations (1,127,393 ) (481,190 ) (646,203 ) 134.3 % Total other income (expense) 474,693 566,754 (92,061 ) -16.2 % Income tax expense - - - - Income (loss) - consolidated (652,700 ) 85,564 (738,264 ) -862.8 % Interest expense 5,630 8,625 (2,995 ) -34.7 % Income tax expense - - - - Depreciation and amortization 340,217 247,882 92,335 37.2 % EBITDA - consolidated ($306,853) $ 342,071 ($648,924) -189.7 % Capital Resources and Liquidity: Working Capital of Continuing Operations: September 30, 2024 December 31, 2023 Current assets $ 14,927,043 $ 13,709,251 Current liabilities (2,255,969 ) (746,170 ) Working capital $ 12,671,074 $ 12,963,081 For the nine months ended CASH FLOWS OF CONTINUING OPERATIONS September 30, 2024 September 30, 2023 Net cash provided (used) by operating activities $ 884,032 ($695,732) Net cash provided (used) by investing activities 141,708 (1,337,398 ) Net cash used by financing activities (71,139 ) (857,779 ) Net cash provided (used) by continuing operations $ 954,601 $ (2,890,909) Cash flow provided by operating activities improved by $1,579,764 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to good working capital management, which includes improved collections on receivables, better management of vendor payments, increased payments of compensation in stock, and maintaining a lower amount due on royalties. The increased vendor payables balance at September 30, 2024 as compared to December 31, 2023 was mainly due to a vendor that had extensive deliveries later in the third quarter of 2024. Cash flow used by investing activities improved by $1,479,106 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to less fixed asset purchases and the sale of our personal residence. See Note 6 of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report for further information. 36 Table of Contents Cash flow used by financing activities improved by $786,640 for the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to the payment of a dividend of $787,730 on January 25, 2023 to the holders of 1,692,672 shares of Series D Preferred stock. Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically and through strategic acquisitions and partnerships to increase shareholder value. The Company is focused on generating positive cash flow to fund its mission. One method of improving positive cash flow has been through our review of each segment’s operations and financial results to make informed decisions that benefit the Company overall. An example of the results of our review relates to USAMSA. Our USAMSA subsidiary has generated cumulative losses since inception. Therefore, we shut down the operations of USAMSA on March 11, 2024. Another method of generating cash is through the sale or issuance of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past. However, our ability to access capital or raise funds when needed is not assured and, if capital is not available when, and in the amounts and terms needed, or if capital is not available at all, the Company could be required to significantly curtail its operations, modify existing strategic plans, and/or dispose of certain operations or assets, which could materially harm our business, prospects, financial condition, and operating results. The Company could also receive funds from the U.S. Government for initiatives related to antimony, zeolite, and other minerals. However, there is no assurance that U.S. Government funding will be able accessible to the Company. We may use cash to acquire businesses. The nature of these investments and transactions, however, makes it difficult to predict the amount and timing of such cash requirements. As of September 30, 2024, the Company had cash and cash equivalents of $12,969,132. We intend to fund our cash requirements with our cash and cash equivalents, cash generated from our operations, and capital raised from various investment vehicles and believe cash from these sources are sufficient to cover our requirements for the next 12 months. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable.