UNITED STATES ANTIMONY CORP 10-K/A

Item 8. Financial Statements and Supplementary Data. Index to Financial Statements: 1. Report of Independent Registered Public Accounting Firm; PCAOB ID - 444 42 2. Consolidated Balance Sheets as of December 31, 2024 and 2023; 43 3. Consolidated Statements of Operations for the years ended December 31, 2024 and 2023 44 4. Consolidated Statements of Changes in Stockholders’ Equity 45 5. Consolidated Statements of Cash Flows for the years ended December 31, 2024 and 2023 46 6. Notes to Consolidated Financial Statements 47 41 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, 2024 and 2023, 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, 2024 and 2023, 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 March 20, 2025 42 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2024 and 2023 December 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 18,172,120 $ 11,899,574 Certificates of deposit - 72,898 Accounts receivable, net 1,156,564 625,256 Inventories 1,245,724 1,386,109 Prepaid expenses and other current assets 104,161 92,369 Total current assets 20,678,569 14,076,206 Properties, plants and equipment, net 12,891,447 13,454,491 Operating lease right-of-use asset 565,289 - Restricted cash for reclamation bonds 98,778 55,061 IVA receivable and other assets, net 408,519 509,237 Total assets $ 34,642,602 $ 28,094,995 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 1,545,708 $ 456,935 Accrued liabilities 1,427,146 133,841 Accrued liabilities - directors 141,287 124,810 Royalties payable 133,434 153,429 Current portion of operating lease liability 626,562 - Long-term debt, current portion 132,252 28,443 Total current liabilities 4,006,389 897,458 Noncurrent liabilities: Noncurrent operating lease liability 129,007 - Long-term debt, net of current portion 195,425 - Stock payable to directors - 38,542 Asset retirement obligations 1,711,108 1,638,027 Total liabilities 6,041,929 2,574,027 COMMITMENTS AND CONTINGENCIES (Note 11) 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 $ 975,000 and $ 967,500 , 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 shares issued and outstanding - - Common stock, $ 0.01 par value, 150,000,000 shares authorized; 112,951,317 and 107,647,317 shares issued and outstanding, respectively 1,129,512 1,076,472 Additional paid-in capital 68,610,905 63,853,836 Accumulated deficit ( 41,149,023 ) ( 39,418,619 ) Total stockholders' equity 28,600,673 25,520,968 Total liabilities and stockholders' equity $ 34,642,602 $ 28,094,995 The accompanying notes are an integral part of these consolidated financial statements. 43 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the years ended December 31, 2024 and 2023 For the years ended December 31, 2024 December 31, 2023 REVENUES $ 14,937,962 $ 8,693,155 COST OF REVENUES 11,471,044 12,037,939 GROSS PROFIT (LOSS) 3,466,918 ( 3,344,784 ) OPERATING EXPENSES: General and administrative 2,052,852 1,642,269 Salaries and benefits 2,350,021 639,172 Professional fees 968,750 643,208 Loss on sale or disposal of property, plant and equipment, net 11,097 217,921 Other operating expenses 475,010 581,647 TOTAL OPERATING EXPENSES 5,857,730 3,724,217 LOSS FROM OPERATIONS ( 2,390,812 ) ( 7,069,001 ) OTHER INCOME (EXPENSE): Interest and investment income 668,543 618,762 Trademark and licensing income 27,987 32,007 Other miscellaneous income (expense) ( 36,122 ) 69,945 TOTAL OTHER INCOME 660,408 720,714 LOSS BEFORE INCOME TAXES ( 1,730,404 ) ( 6,348,287 ) Income tax expense - - Net loss ( 1,730,404 ) ( 6,348,287 ) Preferred dividends ( 7,500 ) ( 7,500 ) Net loss available to common stockholders $ ( 1,737,904 ) $ ( 6,355,787 ) Net loss per share of common stock: Basic $ ( 0.02 ) $ ( 0.06 ) Diluted $ ( 0.02 ) $ ( 0.06 ) Weighted average shares outstanding: Basic 108,591,429 107,551,931 Diluted 108,591,429 107,551,931 The accompanying notes are an integral part of these consolidated financial statements. 44 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For the years ended December 31, 2024 and 2023 Total Preferred Stock Common stock Additional Paid In Stock returned to Accumulated Shares Amount Shares Amount Capital treasury Deficit Total 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 Share-based compensation - - 800,000 8,000 560,588 - - 568,588 Issuance of common stock for cash, net of issuance costs - - 2,300,000 23,000 2,736,681 - - 2,759,681 Common stock issued upon exercise of warrants - - 2,204,000 22,040 1,459,800 - - 1,481,840 Net loss - - - - - - ( 1,730,404 ) ( 1,730,404 ) Balances, December 31, 2024 927,904 $ 9,279 112,951,317 $ 1,129,512 $ 68,610,905 $ - $ ( 41,149,023 ) $ 28,600,673 The accompanying notes are an integral part of these consolidated financial statements. 45 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023 For the years ended December 31, 2024 December 31, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 1,730,404 ) $ ( 6,348,287 ) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation and amortization 1,085,747 959,445 Accretion of asset retirement obligation 73,081 13,471 Changes in asset retirement obligation estimates - 324,984 Noncash operating lease expense 222,188 - Share-based compensation 568,588 - Loss on sale or disposal of property, plant and equipment, net 11,097 217,921 Write-down of inventory to net realizable value 65,647 2,073,404 Change in allowance for doubtful accounts on accounts receivable ( 261,047 ) 239,772 Change in IVA receivable and other assets, net 100,718 388,442 Other noncash items ( 16,107 ) ( 7,500 ) Changes in operating assets and liabilities: Accounts receivable ( 270,261 ) ( 80,571 ) Inventories 74,738 ( 2,084,445 ) Prepaid expenses and other current assets ( 11,792 ) 45,230 Accounts payable 1,088,773 ( 171,868 ) Accrued liabilities 1,293,305 ( 67,308 ) Accrued liabilities – directors 16,477 51,847 Stock payable to directors ( 38,542 ) ( 22,917 ) Change in operating lease liability ( 31,908 ) - Royalties payable ( 19,995 ) ( 281,646 ) Net cash provided (used) by operating activities 2,220,303 ( 4,750,026 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from redemption of certificates of deposit 72,898 186,959 Proceeds from sale of properties, plants and equipment 315,625 - Purchases of properties, plant, and equipment ( 430,596 ) ( 1,528,672 ) Net cash used by investing activities ( 42,073 ) ( 1,341,713 ) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on dividends payable - ( 787,730 ) Principal payments on long-term debt ( 103,488 ) ( 283,562 ) Proceeds from issuance of common stock, net of issuance costs 2,759,681 - Proceeds from exercise of warrants 1,481,840 - Net cash provided (used) by financing activities 4,138,033 ( 1,071,292 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH 6,316,263 ( 7,163,031 ) CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD 11,954,635 19,117,666 CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 18,270,898 $ 11,954,635 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid in cash $ 8,869 $ 10,521 NON-CASH FINANCING AND INVESTING ACTIVITIES: Equipment purchased with note payable $ 402,722 $ - Recognition of operating lease liability and right of use asset $ 787,477 $ - 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. 46 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., Mexico, and Canada (“USAC,” the “Company,” “Our,” “Us,” or “We”) sell antimony, zeolite, and precious metals primarily in the U.S. and Canada. The Company processes third party ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals at its facilities located in Montana and Mexico. 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. Antimony metal is used in bearings, storage batteries, and ordnance. Antimony trisulfide is used as a primer in ammunition. The Company also recovers precious metals, primarily gold and silver, at its Montana facility from third party ore. At its facility located in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications. The Company acquired mining claims and leases located in Alaska and Ontario, Canada and leased a metals concentration facility in Montana in 2024 that could expand its operations as well as its product offerings. Recent Development 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”). The USAMSA subsidiary primarily includes the Company’s Madero antimony and precious metals facility in Parras de la Fuente Coahuila, Mexico and its Puerto Blanco antimony and precious metals facility in San Luis de la Paz Guanajuato, Mexico. In March 2024, the Company shut down the operations of USAMSA and announced its intent to sell its USAMSA subsidiary. The accounting requirements for reporting USAMSA as a discontinued operation were met in the first quarter of 2024. In December 2024, the Company announced plans to restart its Madero facility in Mexico and made the decision not to sell its USAMSA subsidiary because of substantially increased demand and market price for antimony. Therefore, the Company reclassified its USAMSA subsidiary’s assets and liabilities in its Consolidated Balance Sheets and related Notes to Consolidated Financial Statements from its presentation in the interim quarterly financial statements for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2024 to held-and-used. Also, the Company reported its USAMSA subsidiary’s operations in continuing operations in its Consolidated Statements of Operations, Consolidated Statements of Cash Flows, and related Notes to Consolidated Financial Statements for all periods presented in this Annual Report. 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”), AGAU Mines, Inc., Stibnite Holding Company US Inc., Antimony Mining and Milling US LLC, Lanxess Laurel de Mexico, S.A. de C.V., Great Land Minerals, LLC, Denali Minerals, LLC, Alaska Antimony LLC, and UAMY Cobalt Corporation, and its majority owned subsidiaries, USAMSA and ADM. All intercompany balances and transactions are eliminated in consolidation. AGAU 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 requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's consolidated financial position and results of operations. 47 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Reclassifications Certain reclassifications have been made to conform the amounts presented in the December 31, 2023 financial statements 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, 2024, the $ 18,270,898 presented in the Consolidated Statements of Cash Flows consists of $ 18,172,120 of cash and cash equivalents and $ 98,778 of restricted cash for reclamation bonds. At December 31, 2023, the $ 11,954,635 presented in the Consolidated Statements of Cash Flows consists of $ 11,899,574 of cash and cash equivalents and $ 55,061 of restricted cash for reclamation bonds. Restricted Cash Restricted cash at December 31, 2024 and 2023 consists of cash held for reclamation performance bonds and is held in certificates of deposit with financial institutions. 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, 2024 and 2023 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 include costs related to direct materials, direct labor, facility overhead, 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 excess and obsolete inventories as necessary to reflect inventories at net realizable value. Cost related to recording reserves for excess and obsolete inventory is recognized in “cost of revenues” in the Consolidated Statements of Operations. 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. 48 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. Depreciation expense is in included in “Cost of revenues” in the Consolidated Statements of Operations. 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 in the year of acquisition as “Mineral rights and interests” in “Properties, plants, and equipment” in the Consolidated Balance Sheets. These capitalized costs are amortized in the statement of operations over the estimated economic life of the mineral resource, if one is identified, based on the units-of-production method. If a mineral resource is not identified, these capitalized costs are expensed. 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 estimating 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 salvage values and future cash flows to be generated from operating assets. If estimated undiscounted cash flows and/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 Prepaid expenses relate to goods or services that have been paid for but for which the good or service has not yet been received. These costs are recorded in “Prepaid expenses and other current assets” 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. 49 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Assets Held for Sale and Discontinued Operations The Company classifies assets and liabilities to be sold ("Disposal Group") as held for sale in the period when all of the applicable criteria are met, including: (i) management commits to a plan to sell, (ii) the Disposal Group is available to sell in its present condition, (iii) there is an active program to locate a buyer, (iv) the Disposal Group is being actively marketed at a reasonable price in relation to its fair value, (v) significant changes to the plan to sell are unlikely, and (vi) the sale of the Disposal Group is generally probable of being completed within one year. Management performs an assessment at least quarterly or when events or changes in business circumstances indicate that a change in classification may be necessary. If a change in classification is warranted, the Company reclassifies the disposal group’s assets and liabilities to held-and-used and reports the results of operations and cash flows in continuing operations. Assets and liabilities held for sale are presented separately within the Consolidated Balance Sheets with any adjustments necessary to measure the Disposal Group at the lower of its carrying value or fair value less costs to sell. Depreciation of property and equipment are not recorded while these assets are classified as held for sale. For each period the Disposal Group remains classified as held for sale, its recoverability is reassessed and any necessary adjustments are made to its carrying value. The Company categorizes the assets and liabilities of a Disposal Group, or business component, as discontinued operations once management commits to a plan to sell, the business segment is available for immediate sale, management has initiated a plan to sell at a price that is reasonable in relation to its fair value, management anticipates the sale will occur within one year, and it is unlikely that significant changes will be made to the plan to sell. In addition, the business component must be comprised of operations and cash flows that are clearly distinguished from the rest of the entity. The results of discontinued operations are aggregated and presented separately in the Consolidated Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows. Accrued Liabilities The Company records accrued liabilities for expenses that have been incurred prior to the reporting date but not paid. The accrued liabilities balance at December 31, 2024 of $ 1.4 million consists of $ 1.2 million of accrued compensation and $0.2 million of miscellaneous accrued liabilities. The accrued liabilities balance at December 31, 2023 of $ 0.1 million consists primarily of $ 0.1 million of accrued compensation. Leases The Company determines if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, the Company includes operating leases in "Operating lease right-of-use assets" and "Current and noncurrent operating lease liabilities" in its Consolidated Balance sheet. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized as initial direct costs (“IDC”). The Company amortizes the undiscounted fixed lease cost and the IDC on a straight-line basis over the lease term. If a lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. 50 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 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. 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. 51 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, which is typically based on the trading price of the Company’s common shares on the date of the issuance. 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. Share-Based Compensation The Company’s share-based awards consist of restricted stock units (“RSUs”) and stock options granted to employees, consultants, and directors of the Company. RSUs are stock awards entitling the award recipient to a specified number of shares of the Company’s common stock as the award vests. Each RSU granted includes a service-based vesting condition. The Company calculates the fair value of RSUs on the grant date using the closing market price of the Company’s common stock on the grant date. The Company recognizes the grant date fair value of RSUs as share-based compensation expense ratably over the requisite service period, other than RSUs or portions of RSUs that vest on the grant date, in which case the grant date fair value of that RSU or portion of RSU is recognized as share-based compensation expense on the grant date. The Company recognizes forfeitures as they occur. Stock options grant award recipients the option to purchase a specified number of shares of the Company’s common stock at an exercise price per share specified in the grant agreement as the stock options vest. Stock option grants include either a service-based vesting condition or performance-based vesting conditions with a specified contractual term. The Company calculates the fair value of stock options on the grant date using the Black-Scholes option-pricing model, which requires the Company to make estimates and assumptions, such as expected volatility, expected term, and risk-free interest rate. Service and performance conditions are not considered in determining the award’s fair value on the grant date. The Company recognizes share-based compensation expense related to stock option awards from the grant date through the vesting date. For service-based vesting stock option grants, the Company expenses the grant date fair value of the award ratably over the requisite service period. For performance-based vesting stock option grants, the Company expenses the grant date fair value of the award ratably from the grant date through the vesting date based on the probability and timing of achieving the performance conditions. The Company recognizes forfeitures as they occur. The expense related to employee and consultant share-based awards is recorded in “Salaries and benefits” and the expense related to director share-based awards is recorded in “General and administrative” in the Consolidated Statements of Operations. 52 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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. 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, 2024 and 2023, 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. 53 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS New Accounting Pronouncements 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 beginning January 1, 2025, and are applied retrospectively. The Company adopted this pronouncement for its fiscal year ended December 31, 2024 and applied it retrospectively. See Note 13 of the Notes to Consolidated Financial Statements in this Annual Report for further details. 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. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company's annual periods for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and disclosures. 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. NOTE 3 – EARNINGS PER SHARE Basic Earnings Per Share (“EPS”) is computed as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options, RSUs, warrants, and convertible preferred stock. At December 31, 2024 and 2023, each warrant, stock option, and RSU represents one share of our common stock and 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, 2024 December 31, 2023 Warrants 10,142,215 12,346,215 Stock options and RSU awards 6,420,000 - Total possible share dilution 16,562,215 12,346,215 See Note 12 of the Notes to Consolidated Financial Statements in this Annual Report for further details on these warrants, stock options, and RSUs. 54 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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, 2024 and 2023 were as follows: For the years ended December 31, 2024 December 31, 2023 Antimony product revenue $ 11,471,200 $ 5,904,480 Zeolite product revenue 2,941,675 2,462,179 Precious metals product revenue 525,087 326,496 TOTAL REVENUES $ 14,937,962 $ 8,693,155 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. The following is sales information by geographic area based on the location of customers for the years ended December 31, 2024 and 2023: For the years ended December 31, 2024 December 31, 2023 Domestic revenues $ 12,572,625 $ 6,854,740 Canada revenues 1,996,710 1,838,415 Mexico revenues 368,627 - TOTAL REVENUES $ 14,937,962 $ 8,693,155 Sales to customers representing more than 10% of our total revenues during the years ended December 31, 2024 and 2023 were as follows: For the years ended December 31, 2024 December 31, 2023 Customer A revenue $ 4,389,735 $ 1,548,283 Customer B revenue 1,998,589 1,451,950 Customer C revenue - 1,037,307 Total $ 6,388,324 $ 4,037,540 Total customer revenue as a % of total Company revenues 43 % 46 % 55 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Customer receivables representing more than 10 % of our net accounts receivable balance as of December 31, 2024 and 2023 were as follows: For the years ended December 31, 2024 December 31, 2023 Customer A receivable $ 682,551 $ 194,007 Customer B receivable - 202,382 Total $ 682,551 $ 396,389 Total customer receivables as a % of Company net accounts receivable 59 % 63 % The Company’s trade accounts receivable balance related to contracts with customers was $ 1,156,564 at December 31, 2024 and $ 625,256 at December 31, 2023, which is net of an allowance for doubtful accounts related to trade accounts receivables of $ 10,165 and $ 271,212 at December 31, 2024 and December 31, 2023, respectively. The Company’s products do not involve any warranty agreements and product returns are not typical. NOTE 5 – INVENTORIES Inventories by type at December 31, 2024 and 2023 were as follows: December 31, 2024 December 31, 2023 Antimony oxide inventory $ 254,372 $ 354,431 Antimony metal inventory 154,590 454,748 Antimony ore and concentrates inventory 335,588 71,884 Total antimony inventory 744,550 881,063 Zeolite inventory 501,174 505,046 TOTAL INVENTORIES $ 1,245,724 $ 1,386,109 As of December 31, 2024 and 2023, inventories were valued at cost, except for the portion of inventory, which was valued at net realizable value because costs were greater than the amount the Company expected to receive on the sale of the inventory. The adjustment to value inventory at net realizable value was $ 65,647 and $nil for zeolite for the years ended December 31, 2024 and 2023, respectively, and $nil and $ 2,073,404 for antimony related to our Mexico facilities for the years ended December 31, 2024 and 2023, respectively. Antimony oxide and metal inventory consisted of finished products held by the Company’s facility located in Montana. Antimony ore and concentrates were held primarily at its facilities located in Montana and Mexico. The Company’s zeolite inventory consisted primarily of saleable zeolite material at the Company’s facility located in Idaho. 56 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, 2024 and December 31, 2023 were as follows: December 31, 2024 Antimony Zeolite All Other TOTAL Plant and equipment 13,512,321 6,597,781 427,720 $ 20,537,822 Buildings 1,106,303 1,705,893 11,970 2,824,166 Mineral rights and interests - 16,753 125,000 141,753 Land 2,083,094 - 914,443 2,997,537 Construction in progress - 101,938 - 101,938 PP&E, cost $ 16,701,718 $ 8,422,365 $ 1,479,133 $ 26,603,216 Accumulated depreciation ( 9,602,469 ) ( 3,857,785 ) ( 251,515 ) ( 13,711,769 ) PP&E, net $ 7,099,249 $ 4,564,580 $ 1,227,618 $ 12,891,447 December 31, 2023 Antimony Zeolite All Other TOTAL Plant and equipment $ 13,480,118 $ 6,007,694 $ 394,545 $ 19,882,357 Buildings 1,106,303 2,025,043 $ 11,970 3,143,316 Mineral rights and interests - 16,753 100,000 116,753 Land 2,083,094 - 914,443 2,997,537 Construction in progress - 8,951 - 8,951 PP&E, cost $ 16,669,515 $ 8,058,441 $ 1,420,958 $ 26,148,914 Accumulated depreciation ( 8,935,269 ) ( 3,524,130 ) ( 235,024 ) ( 12,694,423 ) PP&E, net $ 7,734,246 $ 4,534,311 $ 1,185,934 $ 13,454,491 The properties, plants and equipment by location was as follows: 2024 2023 Domestic PP&E, net $ 6,634,066 $ 6,579,111 Mexico PP&E, net 6,232,381 6,875,380 Canada PP&E, net 25,000 - Total PP&E, net $ 12,891,447 $ 13,454,491 57 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS BRZ Home In May 2024, the Company made the decision to sell a non-core asset of its zeolite segment, which was a personal residence (“BRZ Home”) located near its operations in Idaho. In September 2024, the Company sold its BRZ Home and recorded a gain on this sale as follows: Proceeds from the sale $ 314,125 Net carrying value of the BRZ Home 297,873 Gain on sale of PP&E $ 16,252 Sudbury Agreement for Mining Claims and Leases In August 2024, the Company executed an option agreement to acquire the ownership rights to ninety-seven mining claims and three mining leases located in the Sudbury District of Ontario, Canada (“Sudbury Agreement”). Payments are to be made by the Company as follows to acquire these claims: Payment Date Payment Amount August 2024 $ 10,000 November 2024 15,000 February 2025 35,000 August 2025 40,000 August 2026 50,000 August 2027 50,000 August 2028 75,000 Total $ 275,000 The payments to acquire these mining claims and leases are capitalized when paid in the “Mineral rights and interests” component of “Properties, plants and equipment, net” in the Consolidated Balance Sheets, which totaled $ 25,000 as of December 31, 2024, and are included in the “All Other” category for segment reporting. The Sudbury Agreement requires a royalty payment by the Company based on potential future production from the claims (“Net Smelter Royalty”) with a minimum royalty payment beginning on the fifth anniversary of the agreement. A certain percentage of the Net Smelter Royalty can be purchased back by the Company. Also, the Sudbury Agreement includes a commitment by the Company to spend an aggregate of $250,000 on exploring and developing these claims over four years from the agreement date, with various milestones over this four-year period . The Sudbury Agreement can be terminated without cause at any time by the Company with thirty days’ notice. 58 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 7 – LEASES In September 2024, the Company leased a metals concentration facility located in Philipsburg, Montana, which was accounted for as an operating lease (also called “Philipsburg Lease”). The Philipsburg Lease has a term of 18 months with fixed cash payments in advance in the first six months of the lease of $10,000 per month, or $60,000 in total, and fixed cash payments in advance in the last twelve months of the lease of $95,000 per month, or $1.14 million in total, which consists of a fixed monthly fee of $45,000 and a minimum milling fee of $50,000 per month. An additional payment of $50 per ton is due each month in the last twelve months of the lease for all milling in excess of 1,000 tons per month . The Company has not included any milling fee payments above the minimum in its calculation of the lease liability as it is not deemed probable at this time. $ 10,000 was paid upon signing the lease, which is being accounted for as an initial direct cost ("IDC"). The Company is amortizing the undiscounted fixed lease cost and the IDC on a straight-line basis over the term of the lease. The Company recorded the present value of the fixed lease cost over the lease term as an operating lease liability and Right of Use ("ROU") asset. The Company used its incremental borrowing rate of 3.49 % as of the date of initial possession of the leased asset when determining the present value of future payments of this operating lease as the rate implicit in the lease was not readily determinable. The lease includes provisions for the Company to use the existing mill building and all contents related to its use and to process owned and non-owned ore containing antimony and other minerals. The lease does not include any transfer of ownership of the facility at the end of the lease, nor any option to extend the lease or purchase the facility, nor any residual value guarantees. The Company can terminate the lease without cause with thirty days’ notice and must provide the facility to the lessor at the end of the lease in the same condition as it was received. The lease liability related to this operating lease, which represents the present value of the lease payments, was $ 787,477 at inception and $ 755,569 and $nil at December 31, 2024 and December 31, 2023, respectively. The ROU asset, which includes the unamortized portions of the IDC and is adjusted for any accrued or prepaid lease, was $ 565,289 and $nil at December 31, 2024 and December 31, 2023, respectively. During the years ended December 31, 2024 and 2023, the Company recorded $ 235,280 and $nil, respectively, of lease expense related to this lease and IDC in "Cost of Revenues" in the Consolidated Statements of Operations. IDC paid upon signing this lease was $ 10,000 and $nil and lease payments were $ 45,000 and $nil during the years ended December 31, 2024 and 2023, respectively, which were included in operating cash flows. The following table summarizes expense and cash payments for operating leases during the periods noted: For the years ended December 31, 2024 December 31, 2023 Operating lease expense $ 235,280 $ - Cash paid for operating lease liability $ 45,000 $ - Cash paid for initial direct cost $ 10,000 $ - The following table contains the remaining lease term and discount rate as of the end of the period: December 31, 2024 Remaining lease term - operating lease 14.5 months Discount rate - operating lease 3.49 % 59 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The table below is a maturity analysis of the future minimum lease payments as of December 31, 2024. Twelve months ending December 31, 2025 $ 1,012,500 2026 142,500 Total undiscounted future minimum lease payments 1,155,000 Less: discount on lease liability ( 399,431 ) Total discounted lease liability at December 31, 2024 755,569 Less: current portion of operating lease liability ( 626,562 ) Noncurrent operating lease liability $ 129,007 See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on the Philipsburg Lease. NOTE 8 – ASSET RETIREMENT OBLIGATION Changes in the asset retirement obligations for the years ended December 31, 2024 and 2023 were as follows: Year ended December 31, 2024 2023 Asset retirement obligation, beginning of period $ 1,638,027 $ 224,511 Revisions to estimate of retirement obligations - 1,075,061 Accretion expense 73,081 13,471 Changes in asset retirement obligation estimates - 324,984 Asset retirement obligation, end of period $ 1,711,108 $ 1,638,027 The Company recorded accretion expense of $ 73,081 and $ 13,471 during the years ended December 31, 2024 and 2023, respectively. During the year ended December 31, 2023, 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 the Company’s asset retirement obligation expense increased by $ 324,984 during the year ended December 31, 2023. The Company added layers to its asset retirement obligations and assets at its credit-adjusted risk-free rate of 6.65 % during the year ended December 31, 2023. 60 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 – DEBT Long term debt at December 31, 2024 and December 31, 2023 was as follows: December 31, 2024 December 31, 2023 Installment contract payable to Komatsu, bearing interest at 3.49%, payable in 36 monthly installments of $11,799 maturing May 2027; collateralized by the Wheel Loader $ 327,677 $ - 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 Total debt 327,677 28,443 Less current portion of debt ( 132,252 ) ( 28,443 ) Long term portion of debt $ 195,425 $ - At December 31, 2024, principal payments on debt were due as follows: Twelve months ending December 31, Principal Payment 2025 $ 132,252 2026 136,942 2027 58,483 $ 327,677 61 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10 – INCOME AND OTHER TAXES There was no income tax expense (benefit) for the years ended December 31, 2024 and 2023. Domestic and foreign components of loss before income taxes for the years ended December 31, 2024 and 2023 were as follows: 2024 2023 Domestic $ ( 1,009,939 ) $ ( 397,156 ) Foreign ( 720,465 ) ( 5,951,131 ) Loss before income taxes $ ( 1,730,404 ) $ ( 6,348,287 ) The income tax expense (benefit) differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income (loss) for the years ended December 31, 2024 and 2023 due to the following: 2024 2023 U.S. federal statutory tax provision (benefit) $ ( 363,000 ) $ ( 1,333,000 ) State income tax provision (benefit) net ( 30,000 ) ( 88,000 ) Foreign taxes ( 63,000 ) ( 536,000 ) VAT refund reserve and other non-deductible items 257,000 1,008,000 Adjustment for prior year tax estimate to actual-domestic 155,000 ( 7,000 ) Adjustment for prior year tax estimate to actual-foreign 63,000 136,000 Share-based compensation 21,000 - Impact on change in foreign exchange rate 532,000 ( 275,000 ) Change in valuation allowance - Domestic 57,000 170,000 Change in valuation allowance - Foreign ( 629,000 ) 925,000 Total income tax expense $ - $ - 62 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS At December 31, 2024 and 2023, the Company had net deferred tax assets and liabilities as follows: 2024 2023 Deferred tax asset: Domestic net operating loss carry forward $ 692,000 $ 646,000 Foreign net operating loss carry forward 2,255,000 2,883,000 Share-based compensation 67,000 - Other 93,000 69,000 Deferred tax asset $ 3,107,000 $ 3,598,000 Valuation allowance (domestic) ( 285,000 ) ( 228,000 ) Valuation allowance (foreign) ( 2,255,000 ) ( 2,883,000 ) Total deferred tax asset $ 567,000 $ 487,000 Deferred tax liability: Property, plant, and equipment ( 567,000 ) ( 487,000 ) Total deferred tax liability ( 567,000 ) ( 487,000 ) Net deferred tax asset after valuation allowance $ - $ - At December 31, 2024 and 2023, 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, 2024 and 2023. At December 31, 2024, the Company has federal net operating loss (“NOL”) carry forwards of approximately $ 1.96 million, $1.91 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 $ 2.3 million which expire between 2026 and 2031, and Idaho state NOL carry forwards of approximately $ 3.4 million, which expire between 2034 and 2044. The Company has approximately $ 7.5 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, 2024 and 2023, 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 2021 through 2024 and for the years 2019 through 2024 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. 63 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Mexico 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 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 $ 865,000 USD as of December 31, 2019. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believed the findings have no merit. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. 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, which was subsequently appealed by the Company. 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 believed, based on discussions with its attorneys located in Mexico, that the most likely outcome would be that the Company would be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at December 31, 2023 relating to this potential tax liability. In March 2024, Mexico’s appellate court ruled in favor of the Company with no assessment due related to this audit of USAMSA’s 2013 income tax return by SAT and instructed the lower court to issue a new ruling. In May 2024, Mexico’s lower court issued a final ruling on this matter in favor of the Company but left open the possibility for the SAT to re-open their audit. Subsequent to this judgment, the Company requested a final ruling on whether SAT can re-open this matter, on which the appellate court has not ruled. These rulings support the Company’s position on this tax matter and have had no impact on the Company’s financial statements. Mexico Import Value Added Tax USAMSA recorded a receivable of $ 907,408 and $ 1,122,628 at December 31, 2024 and December 31, 2023, respectively, for the Import Value Added Tax (“IVA tax” or “VAT”) it pays on certain goods and services representing amounts to be reimbursed from the Mexican government. USAMSA also recorded a reserve on this IVA tax receivable of $ 575,151 and $ 687,534 at December 31, 2024 and December 31, 2023, respectively. The net IVA tax receivable of $ 332,257 and $ 435,094 at December 31, 2024 and 2023, respectively, is recorded in “IVA receivable and other assets, net” in the Consolidated Balance Sheets. NOTE 11 – 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. In 2024, Bear River Zeolite Company (“BRZ”), a wholly owned subsidiary of the Company, received four significant and substantial citations from MSHA, all of which have been rectified. At December 31, 2024 and December 31, 2023, BRZ had $ 19,074 and $nil, respectively, of accrued liabilities relating to MSHA citations. BRZ pays royalties on the sale of zeolite products and had accrued royalties payable of $ 133,434 and $ 153,429 at December 31, 2024 and 2023, respectively. 64 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 – STOCKHOLDERS’ EQUITY Issuance of Common Stock On January 25, 2023, the holders of 1,692,672 shares of Series D Preferred stock converted the preferred shares and the Company issued 1,692,672 shares of common stock. The Company also paid the holders $ 787,730 for cumulative 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 the 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 . During the year ended December 31, 2024, the Company issued 800,000 shares of its common stock in conjunction with the vesting of Restricted Stock Units. See the “Share-Based Compensation” section below for further details. Sale of Common Stock In the fourth quarter of 2024, the Company sold 2.3 million shares of its common stock in an “at the market offering” at a weighted average price of $ 1.27 for gross proceeds of $ 2,925,069 . A total of $ 165,388 of direct issuance costs were incurred related to this sale. The Company also issued 2,204,000 shares of its common stock in the fourth quarter of 2024 related to the exercise of warrants. See the “Common Stock Warrants” section below for further details. Share-Based Compensation In December 2023, the shareholders of the Company approved our 2023 Equity Incentive Plan (“the Plan”), which 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 Plan is to provide a means whereby eligible employees, officers, directors and other 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 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 Plan is 8,700,000 . The Company had no equity awards outstanding during fiscal year 2023. During the year ended December 31, 2024, stock option and RSU awards were granted in accordance with the Plan. The Company recognized $ 568,588 and $nil during the years ended December 31, 2024 and 2023, respectively, of share-based compensation expense arising from stock option and RSU grants as follows: For The Years Ended December 31, 2024 2023 Share-based compensation expense: Stock options $ 219,968 $ - RSUs $ 348,620 $ - Total share-based compensation expense $ 568,588 $ - For the year ended December 31, 2024, the Company recognized in its Consolidated Statements of Operations $ 363,195 of share-based compensation expense in “General and administrative” expenses, $ 198,891 of share-based compensation expense in “Salaries and benefits” expenses, and $ 6,502 of share-based compensation expense in “Professional fees.” 65 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Stock options: Stock options granted have either a 3 -year or 10 -year contractual term and are subject to either service or performance-based vesting conditions. The following table shows the annual weighted-average assumptions used to value options granted during the year ended December 31, 2024: For The Year Ended Grant-Date Weighted-Average Assumptions December 31, 2024 Expected term (in years) 4.5 Risk-free interest rate 4.3 % Expected dividend yield 0.0 % Expected volatility 136.0 % Fair value per share of options granted $ 0.18 Expected term – The expected term represents the period of time that options are expected to be outstanding. As the Company does not have sufficient historical exercise behavior, it uses the contractual term of the option for the expected term assumption. Risk-free interest rate – The risk-free interest rate is based on the U.S. Treasury rate in effect at the time of the grant with an equivalent term approximating the expected term of the options. Expected dividend yield —The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility – The expected volatility is based on the historical volatility of our stock price over the expected term of the stock option. Activity with respect to stock options is summarized as follows: Weighted-Average Weighted-Average Remaining Aggregate Exercise Price Contractual Intrinsic Shares Per Share Term (in years) Value Options outstanding, December 31, 2023 - - - - Granted 4,330,000 $ 0.23 - - Exercised - - - - Forfeited - - - - Expired - - - - Options outstanding, December 31, 2024 4,330,000 $ 0.23 3.7 $ 6,652,700 Nonvested options, December 31, 2024 4,257,500 $ 0.23 3.6 $ 6,547,800 Vested and exercisable options, December 31, 2024 72,500 $ 0.32 9.6 $ 104,900 66 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS At December 31, 2024, total unrecognized share-based compensation expense related to stock options was $ 575,938 , which is expected to be recognized over a weighted-average remaining period of 1.9 years. Restricted stock units: Activity with respect to RSUs is summarized as follows: Weighted-Average Grant-Date Fair Value Shares Per Share Nonvested shares at December 31, 2023 - n/a Granted 2,890,000 $ 0.24 Vested ( 800,000 ) $ 0.22 Forfeited - n/a Nonvested shares at December 31, 2024 2,090,000 $ 0.24 At December 31, 2024, total unrecognized share-based compensation expense related to RSUs was $ 331,131 , which is expected to be recognized over a weighted-average remaining period of 1.7 years. The weighted-average remaining contractual term of the nonvested RSU shares was 1.5 years at December 31, 2024. 67 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Common Stock Warrants During the fourth quarter of 2024, the Company issued 2,204,000 shares of common stock related to the exercise of warrants and received gross proceeds, at a weighted average exercise price of $ 0.67 , of $ 1,481,840 . No other warrants were exercised during the years ended December 31, 2024 and 2023. Also, no warrants were issued or expired during the years ended December 31, 2024 and 2023. Following is a summary of the Company’s warrant activity: Number of Weighted Average warrants Exercise Price Balance outstanding at December 31, 2023 and 2022 12,346,215 $ 0.75 Exercised ( 2,204,000 ) 0.67 Balance outstanding at December 31, 2024 10,142,215 $ 0.77 Each warrant represents one share of the Company’s common stock. The composition of the Company’s warrants outstanding at December 31, 2024 was as follows: Number of warrants Exercise Price Expiration Date Remaining life (years) 2,085,715 $ 0.46 1/27/2026 1.07 7,250,000 $ 0.85 8/3/2026 1.59 806,500 $ 0.85 2/1/2026 1.09 10,142,215 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, 2024 and 2023, 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, 2024 and 2023, cumulative dividends in arrears on the outstanding Series B shares were $ 225,000 and $ 217,500 , 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, or $ 97,847 in total. 68 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 – BUSINESS SEGMENTS The Company has two reportable segments: antimony and zeolite. Our antimony segment consists of: · Our facility located in the Burns Mining District of Sanders County in Montana that processes ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals, and · Our two facilities in our USAMSA subsidiary located in Mexico that process ore primarily into antimony metal and a lower grade of antimony oxide. Our Montana facility processes ore containing antimony and precious metals, which consist of gold and silver. The gold and silver in this ore represent all precious metals processing and sales of the Company. Even though these are different types of metals, our precious metals operations and financial results are included in our antimony segment for several reasons. Our ore processing costs related to antimony, gold, and silver cannot be separated between antimony and precious metals. Also, our chief operating decision maker reviews the operating results of our Montana facility that includes both antimony and precious metals processing and sales. Therefore, our precious metals operations and financial results are included in our antimony segment. Our zeolite segment consists of our facility located in Preston, Idaho that mines, processes, and sells zeolite. The accounting policies of these segments are the same as those described in the basis of presentation and significant accounting policies in Note 2 of the Notes to Consolidated Financial Statements in this Annual Report. The chief operating decision maker evaluates the performance of the Company’s reportable segments based on segment profit or loss from operations, which is inclusive of all respective expenses. The profitability target of each segment is at the profit or loss from operations level, which is how the chief operating decision maker assesses performance. The chief operating decision maker also uses profit or loss from operations to allocate capital and personnel to the segments, which is typically done to improve the efficiency and effectiveness of operations or for expansion of operations, and ultimately to increase profit from operations. Included in profit or loss from operations is an allocation of centralized costs based on each segment’s total expense relative to the Company’s total expense. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each business requires different expertise to ensure quality products are produced in an efficient manner and because each business has a different customer base. Both businesses started as separate units with management selected based on specific skill sets and knowledge related to the product and the industry. The Company’s chief operating decision maker is the chief executive officer. The Company has no active operations at, nor any revenue being generated from the following four components of its business: Los Juarez, Mexico, Ontario, Canada, Alaska, and Philipsburg, Montana. Also, the chief operating decision maker does not regularly review the operating results of these components. Therefore, these components have been included in the “All Other” category for segment reporting. Total expense related to these components was $ 751,762 and $ 114,639 for the years ended December 31, 2024 and 2023, respectively. All expenses related to these components for the year end December 31, 2023 relate to Los Juarez, Mexico. Prior year segment reporting was recast to conform to the current year segment reporting related to the following: precious metals, Los Jaurez, Mexico, and centralized costs. First, precious metals is included in the antimony segment for the year ended December 31, 2024, whereas precious metals was a reportable segment for the year ended December 31, 2023. Revenue related to the precious metals segment was $ 525,087 and $ 326,496 for the years ended December 31, 2024 and 2023, respectively. Second, our Los Juarez, Mexico component or location is included in the “All Other” category for the year ended December 31, 2024, whereas Los Juarez, Mexico was included in the antimony reportable segment for the year ended December 31, 2023. There was no revenue related to the Los Juarez, Mexico component for the years ended December 31, 2024 and 2023, and the Los Juarez, Mexico loss from operations was $ 104,785 and $ 114,639 for the years ended December 31, 2024 and 2023, respectively. Third, centralized costs were allocated to the segments for the year ended December 31, 2024, whereas centralized costs were included in the antimony reportable segment for the year ended December 31, 2023. For the year ended December 31, 2023, centralized costs in the antimony reportable segment decreased by $ 342,146 and centralized costs in the zeolite reportable segment and “All Other” category increased by $ 331,467 and $ 10,679 , respectively. 69 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Total assets by segment at December 31, 2024 and December 31, 2023 were as follows: Total Assets December 31, 2024 December 31, 2023 Antimony segment: $ 27,230,312 $ 21,429,671 Zeolite segment 5,604,003 5,474,010 All other 1,808,287 1,191,314 Total assets $ 34,642,602 $ 28,094,995 Total capital expenditures by segment for the years ended December 31, 2024 and 2023 were as follows: For the years ended Capital expenditures December 31, 2024 December 31, 2023 Antimony segment $ 81,405 $ 244,172 Zeolite segment 291,016 1,284,500 All other 58,175 - Total capital expenditures $ 430,596 $ 1,528,672 The zeolite segment’s capital expenditures for the years ended December 31, 2024 excludes $ 402,722 related to a wheel loader purchased with a note payable. Selected segment operational information for the years ended December 31, 2024 and 2023 were as follows: For the year ended December 31, 2024 Antimony Zeolite All Other Total Total revenues $ 11,996,287 $ 2,941,675 $ - $ 14,937,962 Depreciation and amortization $ 705,047 $ 364,209 $ 16,491 $ 1,085,747 Income (loss) from operations $ 977,127 $ ( 2,616,177 ) $ ( 751,762 ) $ ( 2,390,812 ) Other income $ 660,408 Income tax expense - Net loss $ ( 1,730,404 ) For the year ended December 31, 2023 Antimony Zeolite All Other Total Total revenues $ 6,230,976 $ 2,462,179 $ - $ 8,693,155 Depreciation and amortization 684,644 258,741 16,060 959,445 Income (loss) from operations ( 5,858,289 ) ( 1,096,073 ) ( 114,639 ) ( 7,069,001 ) Other income $ 720,714 Income tax expense - Net loss $ ( 6,348,287 ) 70 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 14 – SUBSEQUENT EVENTS Fairbanks Agreement for Mining Claims In January 2025, the Company executed an option agreement to acquire the ownership rights to one hundred and twenty mining claims located in the Fairbanks District of Alaska (“Fairbanks Agreement”). Payments are to be made by the Company as follows to acquire these claims: Payment Date Payment Amount January 2025 $ 100,000 July 2025 50,000 January 2026 50,000 July 2026 50,000 January 2027 50,000 July 2027 50,000 January 2028 50,000 July 2028 50,000 January 2029 100,000 July 2029 100,000 January 2030 100,000 July 2030 2,250,000 Total $ 3,000,000 These payments will be capitalized when paid in the “Mineral rights and interests” component of “Properties, plants and equipment, net” in the Consolidated Balance Sheets. The Fairbanks Agreement requires a royalty payment by the Company based on the production from the claims (“Net Smelter Royalty on Claims”) and another royalty payment by the Company based on the production from certain areas surrounding these one hundred and twenty mining claims (“Net Smelter Royalty on Surrounding Area”). A certain percentage of the Net Smelter Royalty on Claims can be purchased back by the Company with certain factors causing an escalation in this buyback amount. Also, the Fairbanks Agreement includes a commitment by the Company to spend an aggregate of $ 2,250,000 on exploring and developing these claims over five years from the agreement date, with various milestones over this five-year period. The Fairbanks Agreement can be terminated without cause at any time by the Company with thirty days’ notice. Supply Agreement Our Montana facility purchases ore primarily from one supplier located in Canada. In February 2025, the Company renewed its annual contract with this supplier for calendar year 2025, which had similar terms and conditions as the prior contract other than as follows: i) larger quantities of ore supply for fiscal year 2025 were projected, ii) pricing terms were amended to include tiered pricing based on ore supply volume, and iii) immediate termination or suspension of the contract by either party was included should the cost of any tariff, import duty, or other similar charge make this arrangement uneconomical. 71 Table of Contents UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS BRZ Lease BRZ has a lease with Zeolite, LLC that entitles BRZ to surface mine and process zeolite on property in Preston, Idaho, in exchange for an annual payment and a royalty payment, which is based on the amount of zeolite shipped from the leased property (“BRZ Lease”). In February 2025, the Company extended the BRZ Lease through December 31, 2034 with similar terms and conditions as the prior agreement. Personal Residence Purchase In February 2025, the Company purchased a personal residence located near its operations in Thompson Falls, Montana for $ 445,000 , which will be used by management personnel working in Montana. This asset and related expenses will be included in the “All Other” category in the Company’s segment reporting. Philipsburg Lease The Company leases a metals concentration facility in Philipsburg, Montana. In February 2025, the Company amended its Philipsburg Lease extending the term of the lease to September 2, 2026 and changing the fixed monthly lease payments to $ 10,000 per month through the month of June 2025, $ 25,000 per month during the months of July 2025 to October 2025, and $ 95,000 per month thereafter to the end of the lease term. Sale of Common Stock In February 2025, the Company sold 200,000 shares of its common stock in an “at the market offering” at a weighted average price of $ 2.042 for gross proceeds of $ 408,400 . Common Stock Warrants In February and March of 2025, the Company issued 400,000 shares of common stock related to the exercise of warrants and received gross proceeds, at a weighted average exercise price of $ 0.85 , of $ 340,000 . 72 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.