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Item 7. Management’s Discussion and Analysis

2025-03-20 compared with 2024-04-12 · 110 added, 159 removed, 93 unchanged (74% of the section changed)

5 unchanged sentences

Risk Factors” and elsewhere in this Annual Report.

Our Company has been building its business strategy since inception around 1970.

This strategy started with its antimony and precious metals operations in Montana and then continued with the antimony and precious metals operations in Mexico and the zeolite operations in Idaho.

Antimony mining was halted in the U.S., including our antimony mining in Montana, in the 1980’s due to less expensive antimony ore imported into the U.S.

from other countries, primarily China.

However, the Company continues to process antimony ore into finished antimony oxide, metal, trisulfide, and other products at its plant in Montana.

Since the 1980s, our Company has been attempting to secure antimony mining and processing operations in Mexico to restore a vertically integrated antimony mining to marketing process.

The building of operations in Mexico since 2009 has been costly with expenditures on fixed assets of approximately $13 million.

Along with this capital spent on fixed assets, our Mexico operations have generated losses cumulatively since inception.

As a result, the Company shut down the operational activities in Mexico on March 11, 2024, as described in the “ Recent Developments ” section of this Annual Report.

Our zeolite operations are vertically integrated from mining to selling zeolite.

We review initiatives to ensure an adequate return on our investment.

We also review the performance of our segments and our Company with a focus on generating positive cash flow.

In addition, we are focused on improving our customer service based on the needs of our customers.

United States Antimony Corporation began operations in Montana in January 1970 with an initial strategy centered around antimony mining and processing in Montana.

Antimony mining ceased in the U.S.

in the 1980’s, including our antimony mining in Montana, due to a significant increase of less expensive antimony ore being imported into the United States.

However, the Company continued to process ore sourced from foreign suppliers into antimony oxide, metal, and trisulfide and into precious metals, primarily gold and silver, at its facility in Montana.

In the early 2000’s, the Company expanded its footprint with antimony and precious metals operations located in Mexico and zeolite operations located in Idaho.

Our zeolite operations are vertically integrated from mining to selling zeolite, which is the Company’s goal for its businesses.

Consistent with this strategy of vertical integration, the Company acquired mining claims and leases located in Alaska and Ontario, Canada in 2024 that could expand its operations as well as its product offerings.

The Company intends to start with a geophysics study and a geological, structural, and petrographic study to enable future development with plans for a comprehensive drilling program in Alaska and Ontario.

We review our strategic initiatives to ensure an adequate return on our investment.

We also review the performance of our reportable segments and the performance of our Company with a focus on generating positive cash flow.

A cornerstone of our strategy is the well-being of our employees as they are our most valuable asset.

Our mission is to service our employees, customers, and vendors well and grow our business profitably both organically as well as through strategic acquisitions to increase shareholder value.

Recently, our Company added some key elements and personnel to its strategy related to customer service, finance, and plant management along with several new board members to help achieve our goals and our mission.

Consolidated Financial Information

Comparison of the Years Ended December 31, 2023 and 2022

Consolidated Statements of Operations Information:

For the year ended

Recently, our Company added some key personnel in the areas of customer service, sales, operations, finance, and plant management, a few new board members, several new business partners, and new mining claims, all of which will help achieve our strategic goals and our mission of attentive service and profitable growth.

Following is selected consolidated financial information:

Consolidated statement of operations information:

For the years ended

Costs of revenues

Gross profit (loss)

$ (3,344,784 )

Total operating expenses

Income (loss) from operations

$ (7,069,001 )

Total other income (expense)

Loss from operations

Total other income

Income tax expense

Net income (loss)

$ (1,730,404 )

Weighted average shares of common stock (basic)

Weighted average shares of common stock (diluted)

$ (6,348,287 )

Consolidated balance sheet information:

4 unchanged sentences

Total stockholders’ equity

Revenue decreased by $2.4 million, or 21%, in fiscal year 2023 compared to fiscal year 2022 primarily due to:

(1) the lower average antimony sales price per pound in 2023, which accounted for approximately $1 million of the revenue decrease, (2) less pounds of antimony sold in 2023, which accounted for approximately $0.6 million of the revenue decrease, and (3) less tons of zeolite sold in 2023, which accounted for approximately $0.7 million of the revenue decrease.

Our average antimony sales price per pound is impacted by the market price for antimony, which fluctuates widely based on variables out of our control.

These variables, which can change in the future, include the availability and price of imported antimony metal, the quantity of new antimony metal supply, and the industrial demand for antimony metal.

As a result, the results of our operations and financial condition could be materially affected, positively or negatively, going forward by changes in the market price of antimony.

Our zeolite business sold less tons of its product in 2023 compared to 2022 primarily due to production downtime in 2023.

BRZ experienced 18 weeks of unexpected production downtime in 2023 primarily due to machinery and equipment inadequacies or failures.

We remain vigilant in improving or replacing our fixed assets, including machinery, equipment, and vehicles, that can cause production downtime as our production of zeolite products is contingent on the proper functioning of our fixed assets.

However, our fixed assets may be inadequate or fail in the future, which could affect our ability to produce finished zeolite products to sell to our customers and generate revenue and could have a material adverse impact on the results of our operations and financial condition.

Revenues increased by $6.2 million, or 72%, in fiscal year 2024 compared to fiscal year 2023 primarily due to:

Antimony revenue:

34% increase in pounds sold, and

40% increase in average sales price per pound.

Zeolite revenue:

9% increase in tons sold, and

9% increase in average sales price per ton.

There was higher demand for antimony products in 2024 compared to 2023 primarily due to a shortage of supply and a shortage of processors, which increased the pounds of antimony we sold in 2024.

This higher demand also increased our average sales price per pound in 2024, which is tied to the market price per pound of antimony that averaged $5.50 in 2023 and $10.44 in 2024.

We sold more zeolite in 2024 compared to 2023 as we increased our production reliability and on-hand inventory balance and improved our on-time delivery of product to our customers during 2024.

Also, our average sales price per ton increased in 2024 compared to 2023 as our price increase became fully effective in early 2024.

Gross Profit (Loss)

In fiscal year 2023, there was a gross loss of ($3.3 million) compared to a gross profit of $2 million in fiscal year 2022.

This decrease between the years was primarily due to the following:

Higher plant processing costs at our Mexico antimony segment caused finished goods inventory cost to be higher than its sales value.

As a result, our Mexico antimony segment recorded an expense to write-down its inventory cost to its net realizable value, which was higher in 2023 compared to 2022.

The higher plant processing costs were primarily due to the low percentage of antimony contained in the ore purchased in Mexico.

Lower average antimony sales price per pound in 2023, as described above in the “Revenues” section above,

Production downtime at our zeolite operations in 2023 not only caused lower revenues, as described above in the “Revenues” section above, but also caused increased maintenance costs and inefficient facility-related costs in rectifying these production downtime issues, both of which caused lower gross profit,

Higher reserve on Mexico Value Added Tax (“VAT” or “IVA”) receivable primarily due to increased government regulations and restrictions,

Fixed production costs with lower sales volume at our Montana and Idaho plants lowered gross profit and gross margin, and

Lower gross profit and gross margin on sales of purchased finished antimony trioxide.

Gross profit was $3.5 million in fiscal year 2024 compared to a gross loss of ($3.3 million) in fiscal year 2023.

This increase between the years was primarily due to the following:

Higher average sales price of our antimony products in 2024 versus 2023 as described above in the “Revenues” section,

Improved antimony plant efficiencies with more antimony volume in 2024 compared to 2023, including efficiencies in the areas of labor, utilities, and supplies,

Higher inventory write-downs to net realizable value related to our Mexico operations in 2023 compared to 2024, which was primarily due higher facility processing costs as a result of the low percentage of antimony contained in the ore that was purchased, and

Higher reserve in 2023 compared to 2024 on the receivable related to the refund of import value-added tax (“IVA tax” or “VAT”) in Mexico.

Operating Expenses

Operating expense increased by $2.1 million in fiscal year 2024 compared to fiscal year 2023 primarily due to:

Increased asset retirement obligation (“ARO”) and other expenses in the Mexico antimony segment primarily due to the announced shutdown of Mexico operations on March 11, 2024, as described in the “ Recent Developments ” of this Annual Report.

Increased professional fees relating primarily to Mexico legal matters and regaining compliance with SEC filings,

Increased Board fees associated with market pay comparability and adjustments,

Increased bad debt expense due primarily to one customer who received an antimony product from our Montana location,

Loss on the disposal of Wadley assets due to the termination of the Wadley acquisition agreement.

Other Income (Expense)

Other income increased by $0.6 million in fiscal year 2023 compared to fiscal year 2022 primarily due to increased investment income in 2023.

Increased compensation costs primarily related to the build-out of the Company’s management and operational team to cover our expanded business operations and growth initiatives,

Increased project costs in 2024 related to mining claim purchases in Alaska and Ontario, Canada, preparing a mineral resource and reserve report for BRZ, potential acquisitions, and efforts to obtain government funding and sales.

Increased non-cash stock compensation expense as the Company issued stock grants in 2024 from an equity incentive plan approved by its shareholders at the end of 2023,

Increased board fees in 2024 associated with market pay comparability and adjustments, and

Higher costs in Mexico in 2023 versus 2024 related to contractual expenses and asset retirement obligation expenses.

Working Capital

Working capital decreased by $6.8 million during the year ended December 31, 2023 primarily due to inventory, production, and operational costs at our Mexico antimony segment, which decreased working capital by approximately $4.5 million.

Segment Financial Information

Comparison of the Years Ended December 31, 2023 and 2022

US and Mexico Antimony Segment

Financial and operational metrics of our antimony segment for the years ended December 31, 2023 and 2022 was as follows:

Year ended December 31,

Antimony - Combined USA and Mexico

$ (1,727,190 )

Gross profit (loss)

$ (3,064,606 )

Working capital increased by $3.5 million at December 31, 2024 compared to December 31, 2023 primarily due to increased cash and cash equivalents, partially offset by increased trade payables and accrued liabilities.

The increase in cash and cash equivalents was primarily related to proceeds received from the sale of our common stock and the exercise of warrants.

Trade payables increased mainly due to the increased cost of antimony ore linked to the increased antimony market price.

The increase in accrued liabilities was primarily related to compensation costs incurred but not paid at December 31, 2024 compared to December 31, 2023.

The increase in net accounts receivable is primarily due to the increase in our average sales price per pound as it is linked to the increased antimony market price.

Comparison of Financial Information for the years ended December 31, 2024 and 2023

Financial and operational antimony metrics for the years ended December 31, 2024 and 2023 were as follows:

For the years ended

Gross profit (loss) (a)

$ (3,072,839 )

Pounds of antimony sold

Pounds of antimony sold (a)

Average sales price per pound

Average cost per pound

Average gross profit per pound

The average antimony sales price per pound decreased by $0.82, or 15%, in 2023 compared to 2022 primarily due to the:

(1) decrease in the antimony market price, and (2) lower demand and increased competition during various periods in 2023 resulting from national or international developments (e.g., auto strike).

The average antimony gross profit per pound decreased by $3.49 in 2023 compared to 2022 primarily due to:

Higher plant processing costs at our Mexico antimony segment caused finished goods inventory cost to be higher than its sales value.

As a result, our Mexico antimony segment recorded an expense to write-down its inventory cost to its net realizable value, which was higher in 2023 compared to 2022.

The higher plant processing costs were primarily due to the low percentage of antimony contained in the ore purchased in Mexico.

Lower average antimony sales price per pound in 2023, as described above in the “Revenues” section above,

Higher reserve on Mexico IVA receivable primarily due to increased government regulations and restrictions,

Fixed production costs with lower sales volume at our Montana plant lowered gross profit and gross margin, and

Lower gross margin on sales of purchased finished antimony trioxide.

Zeolite Segment

Financial and operational metrics of our zeolite segment for the years ended December 31, 2023 and 2022 was as follows:

Year ended December 31,

Average gross profit (loss) per pound

Revenue from sales of gold and silver totaled $525,087 and $326,496 and revenue from sales of antimony ore and concentrates totaled $368,627 and $nil for the years ended December 31, 2024 and 2023, respectively, which are excluded from Revenue and Gross Profit (Loss) in the chart above but included in the antimony segment.

Pounds of Antimony Sold in the chart above excludes the pounds sold related to gold, silver, and ore and concentrates for both years presented.

Antimony revenue increased $5.2 million, or 88%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to higher volume and price, which were both fueled by an increased demand for antimony.

Our average sales price of $7.61 per pound for fiscal year 2024 was lower than the antimony market price of $10.44 per pound for the same period primary due to two factors.

First, our sales price per pound related to the processing of customer-owned antimony ore into antimony metal excludes the ore cost and is therefore lower than the antimony market price per pound.

Second, our sales price per pound is set when a customer orders product, which can be one to two months prior to the product shipping causing our sales price per pound to be lower than the market price during times of rising market prices.

Gross profit increased $6.7 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to cost efficiencies with higher volume in the current year, a higher average sales price per pound in 2024, and higher inventory write-downs and IVA tax receivable reserves in 2023 related to our Mexico operations.

Financial and operational metrics of our zeolite segment for the years ended December 31, 2024 and 2023 were as follows:

For the years ended

Gross profit (loss)

2 unchanged sentences

Average cost per ton

Average gross profit per ton

The average zeolite gross profit per ton decreased by $74.94 in 2023 compared to 2022 primarily due to:

Production downtime in 2023, which not only caused lower revenues, but also caused increased maintenance costs and inefficient facility-related costs in rectifying these production downtime issues, both of which caused lower gross profit, and

Fixed production costs with lower sales volume at our Idaho plant lowered gross profit and gross margin.

Precious Metals Segment

Financial and operational metrics of our precious metals segment for the years ended December 31, 2023 and 2022 was as follows:

Year ended December 31,

Precious metals

Gross profit (loss)

Ounces sold - gold

Ounces sold - silver

Average gross profit (loss) per ton

Zeolite revenue increased $0.5 million, or 19%, for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to:

The increased tons of zeolite sold, which was primarily due to our ability to deliver customer orders more reliably and more timely, and

The increased average sales price per ton, which was mainly related to a price increase that became fully effective in early 2024.

Gross profit decreased by $0.1 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to increased costs related to repairing older machinery and equipment and backup equipment leases, especially during production downtime.

Non-GAAP Financial Measure

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.

In addition to our results determined in accordance with U.S.

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.

EBITDA is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S.

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.

We had an EBITDA loss of ($5,387,063) for the year ended December 31, 2023, compared to positive EBITDA of $1,369,095 for the year ended December 31, 2022.

EBITDA by segment for the years ended December 31, 2023 and 2022 was as follows:

Antimony – Combined USA and Mexico

Year ended December 31,

$ (1,727,190 )

EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S.

Our EBITDA was a loss of ($635,788) for the year ended December 31, 2024, as compared to a loss of ($5,387,063) for the year ended December 31, 2023.

EBITDA by segment was prepared using the policies described in Note 13 of the Notes to Consolidated Financial Statements in this Annual Report.

EBIDTA by segment for the years ended December 31, 2024 and 2023 was as follows:

For the years ended

Cost of sales

Gross profit (loss)

$ (3,064,606 )

$ (4,569,722 )

Total operating expenses

Income (loss) from operations

$ (6,520,198 )

$ (6,542,788 )

Total other income (expense)

Income tax expense

Net income (loss) - antimony

$ (5,783,820 )

$ (5,919,818 )

Income (loss)

Interest expense

1 unchanged sentence

Depreciation and amortization

EBITDA - antimony

$ (4,443,771)

$ (5,990,123 )

Year ended December 31,

For the years ended

Cost of sales

4 unchanged sentences

Income tax expense

Net income (loss) - zeolite

Income (loss)

Interest expense

1 unchanged sentence

Depreciation and amortization

EBITDA - zeolite

Year ended December 31,

Precious Metals

$ (2,256,162 )

$ (1,411,449 )

For the years ended

Cost of sales

Gross profit (loss)

Total operating expenses

1 unchanged sentence

Total other income (expense)

Net income (loss) - precious metals

Income (loss)

Interest expense

Depreciation and amortization

EBITDA - precious metals

Year ended December 31,

$ (2,351,552 )

For the years ended

Cost of sales

1 unchanged sentence

(12,037,939 )

Gross profit (loss)

$ (3,344,784 )

$ (5,340,974 )

Total operating expenses

$ (3,724,217 )

$ (1,647,985 )

Income (loss) from operations

$ (7,069,001 )

$ (7,417,206 )

Total other income (expense)

Income tax expense

Net income (loss) - consolidated

$ (6,348,287 )

$ (6,776,948 )

Income (loss)

Interest expense

1 unchanged sentence

Depreciation and amortization

EBITDA - consolidated

$ (5,387,063 )

$ (6,756,158 )

Liquidity and Capital Resources

Our Mexico Antimony Segment has generated significant negative cash flow cumulatively since starting construction in 2009.

In fiscal year 2023, our Mexico Antimony Segment had negative cash flow of approximately $4.1 million.

On March 11, 2024, the Company shut down the operations of its Mexico Antimony Segment, as described in the “ Recent Developments ” section of this Annual Report.

Also, the Company intends to sell or lease its USAMSA entity, 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.

Such sale or lease would provide additional cash.

In the past, the Company has been successful in raising necessary capital from the sale of common stock and warrants and, to a lesser extent, from debt issuance.

However, our ability to access capital 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.

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 generating cash is through the sale of common stock, warrants, debt, and other investment vehicles, which the Company has been successful at executing in the past.

During 2024, the Company generated proceeds from the sale of its common stock, net of issuance costs, of $2.8 million, and $1.5 million through the exercise of warrants.

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 facility expansion and mining exploration and development.

However, there is no assurance that U.S.

Government funding will be accessible to the Company.

In addition, the Company continues to review each segment’s operational and financial results for opportunities to improve cash flow and to make informed decisions that benefit the Company overall.

Our cash and cash equivalents balance at December 31, 2024 was $18,172,120.

1 unchanged sentence

Material Cash Requirements

We plan to continue reviewing the operations and financial results of each segment to make informed decisions that benefit the Company.

Also, we intend to continue to invest in people, customers, infrastructure, and operations with the goals of increasing production, decreasing costs, and growing revenue profitably and, we intend to fund our cash requirements in 2024 with our cash and cash equivalents.

We intend to continue to invest in our employees, customers, infrastructure, and operations with the goals of increasing production, decreasing costs, and growing revenue profitably.

Also, we intend to fund our cash requirements in 2025 with our cash and cash equivalents.

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.

Cash Flows Summary

WORKING CAPITAL

Current assets

Current liabilities

Working Capital

For the year ended

Cash provided (used) by operations

$ (4,750,026 )

Cash provided (used) by investing

Cash provided (used) by financing

Net change in cash and restricted cash for the year ended period

Cash flow information for the years ended December 31, 2024 and 2023 was as follows:

Cash Flow Information

For the years ended

Net cash provided (used) by operating activities

$ (4,750,026 )

Net cash provided (used) by investing activities

Net cash provided (used) by financing activities

Total net cash flow increase (decrease)

$ (7,163,031 )

Cash and restricted cash decreased by $7.2 million during the year ended December 31, 2023 primarily due to:

1) $4.1 million of negative cash flow of our Mexico Antimony Segment, 2) $1.3 million on fixed asset purchases for our Zeolite Segment, 3) $0.8 million on a payment to the holders of Series D Preferred Stock, and 4) $0.4 million towards a payment on a royalty obligation that had been accumulating since 2016.

Cash flows used by operating activities increased by $4.5 million in 2023 compared to 2022 primarily due to the differential between the net loss generated during 2023 compared to the net income generated during 2022 as well as the increase in the use of cash for inventory in 2023, both of which were primarily due to our Mexico Antimony Segment.

The increase was partially offset by increases in non-cash charges related to the write-down of our Mexico inventory to net realizable value and reserves recorded on our Mexico VAT receivable and on one customer receivable in our US Antimony Segment.

Cash flow used by investing activities decreased by $0.4 million in 2023 compared to 2022 primarily due to lower purchases of fixed assets in 2023.

Purchases of property, plant, and equipment, which were primarily for our Zeolite Segment, were $1.5 million in 2023 and $1.7 million in 2022, which excludes $0.2 million of fixed assets purchased with equipment financing for our Mexico antimony segment in 2022.

Cash flow used by financing activities increased by $0.8 million in 2023 compared to 2022 primarily due to the payment of dividends of $787,730 on January 25, 2023 to the holders of Series D Preferred Stock.

Cash flow provided by operating activities improved by $7.0 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to better operational management resulting in a lower net loss, better inventory management, and increased trade payables.

Trade payables increased at December 31, 2024 as compared to December 31, 2023 mainly due to the increased cost of antimony ore linked to the antimony market price.

Cash flow used by investing activities decreased by $1.3 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to less fixed asset purchases and the sale of our personal residence.

See Note 6 and Note 13 of the Notes to Consolidated Financial Statements in this Annual Report for further information.

Cash flow provided by financing activities improved by $5.2 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily due to proceeds received in 2024 from the sale of the Company’s stock, net of issuance costs, of $2.8 million, and $1.5 million from the exercise of warrants and the payment of a dividend in 2023 of $787,730 to the holders of 1,692,672 shares of Series D Preferred stock.

Off-Balance Sheet Arrangements

The Company has no significant off-balance sheet arrangements as defined by the SEC regulations.

The Company has no significant off-balance sheet arrangements.

Critical Accounting Estimates

6 unchanged sentences

The Company reviews its business and operations for indications of impairment and, when indications are present, performs an impairment test.

The Company will involve a third-party expert when needed.

However, 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 resulting in an impairment loss.

The Company will involve a third-party expert if needed.

However, it is possible that changes could occur in the near term that could adversely affect the estimates of salvage values and future cash flows to be generated from operating assets resulting in an impairment loss.

The asset retirement obligation in our Consolidated Balance Sheet is based on an estimate of future costs to reclaim properties and retire fixed assets as required by permits, government regulations, and lease or other contractual requirements upon cessation of our operations.

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.

Determination of any amounts included in 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.

Also, 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.

2 unchanged sentences

Also, there are many technical components of an asset retirement obligation.

Therefore, the Company will involve a third-party expert when needed to recalculate its asset retirement obligations.

Therefore, the Company will involve a third-party expert if needed to recalculate its asset retirement obligations.

However, actual costs to reclaim and retire property and fixed assets when we cease operations may differ from our estimates.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis