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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended |
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Transition report under section 13 or 15(d) of the Exchange Act |
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For the transition period from |
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to |
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Commission File Number |
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(Exact name of registrant as specified in its charter) |
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(State or other jurisdiction of incorporation or organization) |
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(I. R. S. Employer Identification No.) |
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1200 Silver City Road, PO Box 432 |
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(Address of principal executive offices) |
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(Zip Code) |
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(Issuer’s Telephone Number, Including Area Code) |
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Large Accelerated Filer |
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Accelerated Filer |
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Smaller Reporting Company |
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Emerging growth company |
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Page(s) |
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Item 1. |
Consolidated Financial Statements |
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2 |
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September 30, 2022 |
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December 31, 2021 |
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(unaudited) |
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ASSETS |
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Current Assets |
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Cash |
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$ |
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$ |
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Accounts receivable |
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Deposits and prepaid expenses |
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Total Current Assets |
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Land |
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Operating lease right-of-use asset |
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Finance lease right-of-use asset |
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Other Assets |
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Deposits |
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Total Other Assets |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current Liabilities |
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Accounts payable and accrued liabilities |
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$ |
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$ |
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PIK Note interest accrual |
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Current portion of PIK Notes payable, net of $ |
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- |
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Current portion of notes payable |
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Current portion of finance lease liabilities |
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Current portion of operating lease liabilities |
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Total Current Liabilities |
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Long-Term Liabilities |
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PIK Notes payable, net of $ |
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- |
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Deferred revenue |
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Finance lease liabilities |
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Total Long-Term Liabilities |
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TOTAL LIABILITIES |
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Stockholders’ Deficit |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit prior to the exploration stage |
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( |
) |
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( |
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Accumulated deficit during the exploration stage |
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( |
) |
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( |
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Total Stockholders’ Deficit |
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( |
) |
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( |
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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$ |
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$ |
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3 |
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For the Three Months Ended September 30, |
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For the Nine Months Ended September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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REVENUES |
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$ |
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$ |
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$ |
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$ |
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OPERATING EXPENSES: |
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Production costs |
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Exploration costs |
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General and administrative |
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Total Operating Expenses |
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Operating Loss |
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( |
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( |
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( |
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( |
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OTHER INCOME (EXPENSES): |
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Interest expense, net (including amortization of deferred financing cost and debt discount) |
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( |
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( |
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( |
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( |
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Gain on forgiveness of PPP loan |
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- |
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Gain on sale of iron oxide assets |
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- |
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Other income (expense) , net |
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( |
) |
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( |
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Total Other Income (Expense) |
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( |
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( |
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( |
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NET INCOME (LOSS) |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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Net Income ( Loss ) Per Common Share (Basic and Diluted) |
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$ |
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$ |
( |
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$ |
( |
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$ |
( |
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Weighted Average Common Shares Outstanding (Basic and Diluted) |
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4 |
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Three Months Ended |
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Common Stock Shares |
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Common Stock Amount |
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Preferred Stock Shares |
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Preferred Stock Amount |
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Additional Paid-in Capital |
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Accumulated Deficit Prior to Exploration Stage |
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Accumulated Deficit During Exploration Stage |
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Total Stockholders’ Deficit |
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Balance, June 30, 2022 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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Shares issued upon conversion of Series B Preferred Stock |
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( |
) |
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( |
) |
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( |
) |
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- |
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- |
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- |
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Beneficial conversion feature on Convertible Series B Preferred Stock |
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- |
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- |
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- |
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- |
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- |
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- |
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Deemed dividend from beneficial conversion feature on Convertible Series B Preferred Stock |
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- |
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- |
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- |
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- |
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( |
) |
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- |
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- |
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( |
) |
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Shares issued as part of liability settlement |
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- |
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- |
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- |
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- |
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Forgiveness of related party liabilities |
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- |
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- |
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- |
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- |
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- |
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- |
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Shares issued to BMI Minerals Company |
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- |
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- |
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- |
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- |
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Share issuance cost |
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- |
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- |
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- |
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- |
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( |
) |
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- |
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- |
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( |
) |
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Stock based compensation |
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- |
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- |
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- |
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- |
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- |
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- |
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Net Income |
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- |
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- |
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- |
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- |
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- |
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- |
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Balance, September 30, 2022 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Balance, June 30, 2021 |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Shares issued upon conversion of Series B Preferred Stock |
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( |
) |
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( |
) |
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( |
) |
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- |
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- |
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Shares of Series B Preferred Stock issued in private placement |
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- |
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- |
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- |
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- |
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Beneficial conversion feature on Convertible Series B Preferred Stock |
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|
- |
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- |
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- |
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- |
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- |
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- |
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Deemed dividend from beneficial conversion feature on Convertible Series B Preferred Stock |
|
|
- |
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- |
|
|
|
- |
|
|
|
- |
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|
|
( |
) |
|
|
- |
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- |
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( |
) |
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Stock option compensation expense |
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|
- |
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- |
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- |
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- |
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|
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|
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- |
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- |
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Net Loss |
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- |
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- |
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|
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- |
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|
|
- |
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|
|
- |
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|
|
- |
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|
|
( |
) |
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( |
) |
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Balance, September 30, 2021 |
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$ |
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$ |
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$ |
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|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
5 |
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Nine Months Ended |
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Common Stock Shares |
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Common Stock Amount |
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Preferred Stock Shares |
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Preferred Stock Amount |
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Additional Paid-in Capital |
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Accumulated Deficit Prior to Exploration Stage |
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Accumulated Deficit During Exploration Stage |
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Total Stockholders’ Deficit |
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||||||||
Balance, December 31, 2021 |
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$ |
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$ |
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|
$ |
|
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|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
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|
Shares issued for conversion of Series B Preferred Stock |
|
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|
( |
) |
|
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( |
) |
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( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Series B Preferred Stock issued in private placement |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial conversion feature on Convertible Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend from beneficial conversion feature on Convertible Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued as part of liability settlement |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forgiveness of related party liability |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued to BMI Minerals Company |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share issuance cost |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares for debt issuance cost |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of shares of common stock for consulting services |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock option compensation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2022 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2020 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued upon conversion of Series B Preferred Stock |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of Series B Preferred Stock issued in private placement |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial conversion feature on Convertible Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend from beneficial conversion feature on Convertible Series B Preferred Stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for cashless option exercise |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued in lieu of employee bonus |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 30, 2021 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
6 |
|
|
For the Nine Months Ended |
|
|||||
|
|
September 30, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
|
|
|
|
|
||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
|
|
Depreciation of finance lease |
|
|
|
|
|
|
|
|
Amortization of debt discount |
|
|
|
|
|
|
|
|
Amortization of discount - PIK Notes |
|
|
|
|
|
|
|
|
Accrued interest on PIK Notes |
|
|
|
|
|
|
|
|
Stock issued for settlement of liabilities |
|
|
|
|
|
|
|
|
Stock based compensation expense |
|
|
|
|
|
|
|
|
Non-cash lease expense |
|
|
|
|
|
|
|
|
Gain on sale of obsolete equipment |
|
|
( |
) |
|
|
|
|
Gain on sale of iron oxide assets |
|
|
( |
) |
|
|
|
|
Stock issued for interest |
|
|
|
|
|
|
|
|
Gain on forgiveness of PPP loan |
|
|
|
|
|
|
( |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
( |
) |
|
|
|
|
Deposits and prepaids |
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
( |
) |
|
|
( |
) |
Financing lease liabilities |
|
|
( |
) |
|
|
|
|
Accounts payable and accrued liabilities |
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Proceeds from sale of equipment |
|
|
|
|
|
|
|
|
Proceeds from sale of iron oxide assets |
|
|
|
|
|
|
|
|
Net cash provided by (used in) in vestin g activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Payments on finance lease liability |
|
|
( |
) |
|
|
( |
) |
Proceeds from notes payable |
|
|
|
|
|
|
|
|
Proceeds from Paycheck Protection Program loan |
|
|
|
|
|
|
|
|
Payments on notes payable |
|
|
( |
) |
|
|
|
|
Proceeds from private placement of Series B Preferred Stock |
|
|
|
|
|
|
|
|
Proceeds from sale of shares of common stock , net of issuance costs |
|
|
|
|
|
|
|
|
Payments on insurance financing |
|
|
( |
) |
|
|
( |
) |
Net cash provided by (used in) financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Cash at beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
|
|
|
$ |
|
|
Cash paid for income taxes |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash financing activity: |
|
|
|
|
|
|
|
|
Capitalization of ROU asset and finance leas e liability |
|
$ |
|
|
|
$ |
|
|
Boral settlement payable |
|
$ |
( |
) |
|
$ |
|
|
Forgiveness of related party liabilities |
|
$ |
|
|
|
$ |
|
|
Deemed dividend on convertible Preferred Stock Series B due to BCF |
|
$ |
|
|
|
$ |
|
|
Accrued PIK interest paid through issuance of PIK Notes |
|
$ |
|
|
|
$ |
|
|
Stock issued for cashless options exercised |
|
$ |
|
|
|
$ |
|
|
Common stock issued upon conversion of Series B Preferred Stock |
|
$ |
|
|
|
$ |
|
|
7 |
8 |
9 |
10 |
|
|
Estimated |
|
|
|
|
Useful Life (years) |
|
|
Building and Building Improvements |
|
|
|
|
Mining equipment |
|
|
|
|
Office and shop furniture and equipment |
|
|
|
|
Vehicles |
|
|
|
|
11 |
12 |
13 |
Supplemental cash flow information related to leases: | Three months ended September 30, 2022 | Nine months ended September 30, 2022 | ||||||
Finance cash flows from finance lease | $ | ( | ) | $ | ( | ) | ||
Operating cash flows from finance lease | $ | $ |
Supplemental balance sheet information related to leases: | As of September 30, 2022 | |||
Finance lease Right-of-use assets | $ | |||
Current portion of finance lease liabilities | $ | |||
Long-term finance lease liabilities | ||||
Total finance lease liabilities | $ | |||
Weighted average remaining operating lease term | ||||
Weighted average discount rate | % |
2022 (remaining three months) | $ | |||
2023 | ||||
2024 | ||||
2025 | ||||
Total lease payments | ||||
Less: imputed interest | ( | ) | ||
Total lease liabilities | $ |
September 30, 2022 | December 31, 2021 | |||||||
Cash Bond (Mine Permit deposit) | $ | $ | ||||||
Office Lease Security Deposit | ||||||||
Total | $ | $ |
14 |
September 30, 2022 | December 31, 2021 | |||||||
Note payable to insurance companies, payable $ | $ | $ | ||||||
Promissory note (b) | $ | $ | ||||||
Loan payable (c) | $ | $ | ||||||
$ | $ | |||||||
Less: Current Portion | $ | ( | ) | $ | ( | ) | ||
Notes Payable, Long-Term Portion | $ | $ |
(a) | In October 2021, the Company entered into two notes payable with interest rates of |
(b) | In January 2022, the Company entered into a promissory note agreement for $ |
(c) | In March 2022, the Company entered into a loan payable with a lender for $ of principal and an origination fee of $ . Payment of the loan includes one installment of $ approximately $ |
15 |
Key Terms |
|
Series 2023 Notes |
|
Series A Notes |
Inception Date |
|
|
|
|
Cash Received |
|
$ |
|
$ |
Principal (Initial Liability) |
|
$ |
|
$ |
Maturity (Term) |
|
Matures on |
|
Matures on |
Exercise Price |
|
$ |
|
$ |
Stated Interest |
|
|
|
|
|
|
Series 2023 Notes |
|
|
Series A Notes |
|
|
Total |
|
|||
PIK Note Payable, Gross |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Less: Discount |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
PIK Note Payable, Net |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
Series 2023 Notes |
|
|
Series A Notes |
|
|
Total |
|
|||
PIK Note Payable, Gross |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Less: Discount |
|
|
|
|
|
|
( |
) |
|
|
( |
) |
PIK Note Payable, Net |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
16 |
● | Maturity : May 1, 2023. |
● | Exercise Price : $0.40 per share and will be adjusted from time to time pursuant anti-dilution provisions. |
● | Stated Interest : 10% payable semi-annually in arrears through December 14, 2017, 3% payable semi-annually in arrears thereafter. |
● | Liquidated Damages : The Company is required to pay the noteholders 1% of the principal amount of the Series A Notes if a Registration statement is not filed and effective within 90 days of the inception date (and further damages for every 30 days thereafter). |
● | The number of shares issuable under the Notes may be affected by the anti-dilution provisions of the Notes. The antidilution provisions adjust the Exercise Price of the Notes in the event of stock dividends and splits, issuance below the market price of the common stock, issuances below the conversion price of the Notes, pro rata distribution of assets, rights plans, tender offers, and exchange offers. |
17 |
18 |
19 |
Shares Issuable | ||||||||
upon Exercise of | Weighted Average | |||||||
Outstanding Warrants | Exercise Price | |||||||
Outstanding at December 31, 2021 | $ | |||||||
Issued | ||||||||
Exercised | ||||||||
Forfeited | ||||||||
Outstanding at September 30, 2022 | $ |
20 |
Warrants Outstanding and Exercisable | ||||||||||||||||||
Weighted Average | ||||||||||||||||||
Shares Issuable upon Exercise of | Remaining Contractual Life | Weighted Average | ||||||||||||||||
Exercise Price | Outstanding Warrants | (years) | Exercise Price | |||||||||||||||
$ | $ | |||||||||||||||||
$ | ||||||||||||||||||
$ | $ | |||||||||||||||||
$ |
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Shares Issued Upon Exercise of Options | Weighted Average Exercise Price | |||||||
Outstanding at December 31, 2021 | $ | |||||||
Granted | ||||||||
Exercised | ||||||||
Forfeited | ( | ) | ||||||
Outstanding at September 30, 2022 | $ |
Options Outstanding | Options Exercisable | |||||||||||||||||||||||
Range of per share exercise price | Shares | Weighted average remaining contractual life (years) | Per share weighted average exercise price | Shares | Weighted average remaining contractual life (years) | Per share weighted average exercise price | ||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||
$ | ||||||||||||||||||||||||
$ | ||||||||||||||||||||||||
$ | $ |
22 |
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Three Months Ended September 30, | Variance | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
REVENUES | $ | 111,688 | $ | 360,815 | $ | (249,127 | ) | (69 | )% | |||||||
OPERATING EXPENSES: | ||||||||||||||||
Production costs | 140,123 | 434,225 | (294,102 | ) | (68 | )% | ||||||||||
Exploration costs | 16,098 | 47,866 | (31,768 | ) | (66 | )% | ||||||||||
General and administrative | 341,847 | 443,503 | (101,656 | ) | (23 | )% | ||||||||||
Total Operating Expenses | 498,068 | 925,594 | (427,526 | ) | (46 | )% | ||||||||||
Operating Loss | (386,380 | ) | (564,779 | ) | (178,399 | ) | (32 | )% | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest expense, net (including amortization of deferred financing cost and debt discount) | (643,933 | ) | (474,579 | ) | (169,354 | ) | 36 | % | ||||||||
Gain on sale of iron oxide assets | 1,938,000 | - | 1,938,000 | 100 | % | |||||||||||
Other income (expense) , net | (716,800 | ) | 20,308 | (737,108 | ) | (3,630 | )% | |||||||||
Total Other Income (Expense) | 577,267 | (454,271 | ) | (1,031,538 | ) | (227 | )% | |||||||||
NET INCOME (LOSS) | $ | 190,887 | $ | (1,019,050 | ) | $ | (1,209,937 | ) | (119 | )% |
24 |
25 |
Nine Months Ended September 30, | Variance | |||||||||||||||
2022 | 2021 | $ | % | |||||||||||||
REVENUES | $ | 295,838 | $ | 1,099,980 | $ | (804 ,142 | ) | (73 | )% | |||||||
OPERATING EXPENSES: | ||||||||||||||||
Production costs | 451,418 | 1,315,350 | (863,932 | ) | (66 | )% | ||||||||||
Exploration costs | 266,111 | 175,715 | 90,396 | 51 | % | |||||||||||
General and administrative | 1,082,953 | 1,244,975 | (162,022 | ) | (13 | )% | ||||||||||
Total Operating Expenses | 1,800,482 | 2,736,040 | (935,558 | ) | (34 | )% | ||||||||||
Operating Loss | (1,504,644 | ) | (1,636,060 | ) | (131,416) | (8 | )% | |||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest expense, net (including amortization of deferred financing cost and debt discount) | (1,596,548 | ) | (1,401,878 | ) | 194,670 | 14 | % | |||||||||
Gain on forgiveness of PPP loan | - | 223,075 | (223,075 | ) | (100 | )% | ||||||||||
Gain on sale of iron oxide assets | 1,938,000 | - | 1,938,000 | (100 | )% | |||||||||||
Other income (expense) , net | (535,382 | ) | 114,662 | (650,044 | ) | (570 | )% | |||||||||
Total Other Income Expense | (193,930 | ) | (1,064,141 | ) | (870,211 | ) | (82 | )% | ||||||||
NET LOSS | $ | (1,698,574 | ) | $ | (2,700,201 | ) | $ | ( 1,001,627 | ) | (37 | )% |
26 |
27 |
28 |
29 |
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APPLIED MINERALS, INC. | ||
Dated: November 30, 2022 | /s/ CHRISTOPHER T. CARNEY | |
By: Christopher T. Carney | ||
Chief Executive Officer | ||
Dated: November 30, 2022 | /s/ CHRISTOPHER T. CARNEY | |
By: Christopher T. Carney | ||
Chief Financial Officer |
32 |