DYNARESOURCE INC [DYNR] Filings

10-Q 1 dynr-20230930.htm 10-Q 10-Q

Appp

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period

Commission File Number: 000-30371

DYNARESOURCE, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	94-1589426
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
222 W. Las Colinas Blvd., Suite 1910 North Tower Irving, TX	75039
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(972) 868-9066

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock

DYNR

OTCQX

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 16, 2023, there were 23,246,654 shares of Common Stock of the registrant outstanding.

TABLE OF CONTENTS


PART I.	FINANCIAL STATEMENTS

ITEM 1.	Unaudited Condensed Interim Consolidated Financial Statements	3

	Notes to Unaudited Condensed Interim Consolidated Financial Statements	7

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	24

ITEM 4.	Controls and Procedures	24

PART II.	OTHER INFORMATION

ITEM 1.	Legal Proceedings	25

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25

ITEM 3.	Defaults Upon Senior Securities	25

ITEM 4.	Mine Safety Disclosures	25

ITEM 5.	Other Information	25

ITEM 6.	Exhibits	26

CERTIFICATIONS


EXHIBIT 31.1		CHIEF EXECUTIVE OFFICER CERTIFICATION

EXHIBIT 31.2		CHIEF FINANCIAL OFFICER CERTIFICATION

EXHIBIT 32.1		CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2023 AND DECEMBER 31, 2022


	2023			2022
	(Unaudited)			(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,637,085		$	19,177,138
Accounts receivable		812,983			724,642
Inventories		1,809,079			2,720,811
Foreign tax receivable		6,444,547			9,355,863
Other current assets		1,527,689			1,145,501
Total current assets		22,231,383			33,123,955
Property and equipment (net of accumulated
depreciation and amortization of $4,896 and $119,154)		110,377			-
Right-of-use assets, net		899,771			550,473
Mining concessions		4,132,678			4,132,678
Deferred tax asset		5,226,980			2,970,410
Foreign tax receivable		7,849,255			-
Other assets		173,555			165,396

TOTAL ASSETS	$	40,623,999		$	40,942,912
LIABILITIES. TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,156,578		$	2,057,880
Accrued expenses		6,893,850			5,756,961
Customer advances		9,750,000			9,350,000
Derivative liabilities		2,315,219			2,172,417
Current portion of operating lease payable		91,685			28,868
Installment notes payable		2,201,360			1,968,251
Total current liabilities		23,408,692			21,334,377
Operating lease payable, less current portion		846,631			558,914
TOTAL LIABILITIES		24,255,323			21,893,291
TEMPORARY EQUITY
Series C Senior Convertible Preferred Stock, $0.0001 par value, 1,734,992 shares authorized, issued and outstanding, as of September 30, 2023 and December 31, 2022, respectively		4,337,480			4,337,480
Series D Senior Convertible Preferred Stock, $0.0001 par value, 3,000,000 shares authorized, 760,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		1,520,000			1,520,000
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS’ EQUITY
Preferred Stock, Series A, $0.0001 par value, 0 and 1,000 shares authorized, 0 and 1,000 issued and outstanding		-			1
Common Stock, $0.01 par value, 40,000,000 shares authorized 23,246,654 and 22,246,654 issued and outstanding		232,467			222,467
Preferred rights		40,000			40,000
Additional paid-in-capital		60,629,032			56,889,031
Treasury stock, 37,180 and 12,180 shares each period, at cost		(95,023	)		(34,773	)
Accumulated other comprehensive income		253,245			112,078
Accumulated deficit		(50,548,525	)		(44,036,663	)
TOTAL STOCKHOLDERS’ EQUITY		10,511,196			13,192,141
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY	$	40,623,999		$	40,942,912

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)


	Three Months September 30, 2023			Three Months September 30, 2022			Nine Months September 30, 2023			Nine Months September 30, 2022

REVENUES	$	6,115,370		$	8,032,557		$	28,980,618		$	28,623,070
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales		2,226,265			964,172			5,993,040			2,876,902
Mine Production Costs		2,553,369			1,946,981			8,022,328			4,786,236
Mine Exploration Costs		2,854,863			1,335,437			7,318,836			3,792,405
Facilities Expansion Costs		401,464			1,773,385			1,226,135			4,744,792
Exploration Drilling		569,261			770,892			1,694,536			1,993,082
Camp, Warehouse and Facilities		1,379,782			911,284			3,888,241			3,147,312
Transportation		736,836			572,772			2,277,385			1,682,986
Property Holding Costs		48,824			39,312			130,015			112,093
General and Administrative		1,429,879			1,033,820			6,660,862			3,177,917
Depreciation and Amortization		4,896			812			4,896			2,437
Total Operating Expenses		12,205,439			9,348,867			37,216,274			26,316,162

NET OPERATING INCOME (LOSS)		(6,090,069	)		(1,316,310	)		(8,235,656	)		2,306,908

OTHER INCOME (EXPENSE)
Foreign Currency Gains (Losses)		(80,815	)		9,919			(46,588	)		47,709
Interest Expense		(121,079	)		(103,544	)		(345,254	)		(345,049	)
Derivatives Mark-to-Market Gain (Loss)		(705,079	)		(169,445	)		(142,802	)		1,993,836
Other Income		561			649			1,868			1,688
Total Other Income (Expense)		(906,412	)		(262,421	)		(532,776	)		1,698,184

NET INCOME (LOSS) BEFORE TAXES		(6,996,481	)		(1,578,731	)		(8,768,432	)		4,005,092

INCOME TAXES (BENEFIT)		(1,045,355	)		-			(2,256,570	)		-

NET INCOME (LOSS)	$	(5,951,126	)	$	(1,578,731	)	$	(6,511,862	)	$	4,005,092
DEEMED DIVIDEND FOR SERIES C AND D PREFERRED		(58,575	)		(58,574	)		(175,724	)		(175,724	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(6,009,701	)	$	(1,637,305	)	$	(6,687,586	)	$	3,829,368

EARNINGS (LOSS) PER SHARE DATA ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC:
Basic Earnings (Loss) per Common Share	$	(0.27	)	$	(0.08	)	$	(0.30	)	$	0.20
Diluted Earnings (Loss) per Common Share	$	(0.27	)	$	(0.08	)	$	(0.30	)	$	0.20

Weighted Average Shares Outstanding, Basic		22,558,129			20,746,654			22,455,445			19,005,593
Weighted Average Shares Outstanding, Diluted		22,558,129			20,746,654			22,455,445			19,005,593

OTHER COMPREHENSIVE INCOME

Foreign Currency Exchange Gains (Losses)		(210,050	)		(185,059	)		141,167			(174,043	)

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(210,050	)		(185,059	)		141,167			(174,043	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	(6,161,176	)	$	(1,763,790	)	$	(6,370,695	)	$	3,831,049

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)


	Preferred A				Common				Preferred		Preferred		Paid In		Treasury		Treasury			Other Comp			Accumulated
	Shares		Amount		Shares		Amount		Rights		Amount		Capital		Shares		Amount			Income			Deficit			Totals

	THREE MONTHS ENDED SEPTEMBER 30, 2022

Balance, June 30, 2022		1,000	$	1		20,746,654	$	207,467		1	$	40,000	$	56,022,782		12,180	$	(34,773	)	$	(236,649	)	$	(45,138,642	)	$	10,860,186

Other Comprehensive Income																					(185,059	)					(185,059	)

Net Income (Loss)																								(1,578,731	)		(1,578,731	)

Balance, September 30, 2022		1,000	$	1		20,746,654	$	207,467		1	$	40,000	$	56,022,782		12,180	$	(34,773	)	$	(421,708	)	$	(46,717,373	)	$	9,096,396

	THREE MONTHS ENDED SEPTEMBER 30, 2023

Balance, June 30, 2023		-	$	-		22,246,654	$	222,467		1	$	40,000	$	55,639,032		37,180	$	(95,023	)	$	463,295		$	(44,597,399	)	$	11,672,372

Issuance of Common Stock						1,000,000		10,000						4,990,000													5,000,000

Other Comprehensive Income																					(210,050	)					(210,050	)

Net Income (Loss)																								(5,951,126	)		(5,951,126	)

Balance, September 30, 2023		-	$	-		23,246,654	$	232,467		1	$	40,000	$	60,629,032		37,180	$	(95,023	)	$	253,245		$	(50,548,525	)	$	10,511,196

	NINE MONTHS ENDED SEPTEMBER 30, 2022

Balance January 1, 2022		1,000	$	1		18,091,293	$	180,913		1	$	40,000	$	50,632,400		12,180	$	(34,773	)	$	(247,665	)	$	(50,722,465	)	$	(151,589	)

Stock Warrant Exercised						2,655,361		26,554						5,390,382													5,416,936

Other Comprehensive Income																					(174,043	)					(174,043	)

Net Income (Loss)																								4,005,092			4,005,092

Balance, September 30, 2022		1,000	$	1		20,746,654	$	207,467		1	$	40,000	$	56,022,782		12,180	$	(34,773	)	$	(421,708	)	$	(46,717,373

DYNARESOURCE INC [DYNR] Filings
10-Q	[2023-11-17]
10-Q	[2023-08-04]
10-Q	[2023-05-15]
10-K	[2023-04-17]
10-Q	[2022-11-02]
10-Q	[2022-07-29]
10-Q	[2022-05-06]
10-K	[2022-03-24]
10-Q	[2021-11-04]
10-Q	[2021-08-12]
10-Q	[2021-05-10]
10-K	[2021-03-31]
10-Q	[2020-11-19]
10-Q	[2020-08-19]
10-Q	[2020-07-13]
10-K	[2020-06-09]
10-Q	[2019-11-22]
10-Q	[2019-10-15]
10-Q	[2019-05-20]
10-K	[2019-04-08]
10-Q	[2018-11-14]
10-Q	[2018-08-14]
10-Q	[2018-05-15]
10-K	[2018-04-16]
10-Q	[2017-11-14]
10-Q	[2017-08-21]
10-Q	[2017-05-22]
10-K	[2017-04-27]
10-Q	[2016-11-17]
10-Q	[2016-08-19]
10-Q	[2016-05-13]
10-K	[2016-04-12]
10-Q	[2015-11-16]
10-Q	[2015-08-14]
10-Q	[2015-05-15]
10-K	[2015-05-06]
10-Q	[2014-11-19]
10-Q	[2014-08-14]
10-Q	[2014-05-14]
10-K	[2014-04-16]
10-Q	[2013-11-13]
10-Q	[2013-08-16]
10-Q	[2013-05-20]
10-K	[2013-04-12]
10-Q	[2012-11-19]
10-Q	[2012-08-20]
10-Q	[2012-05-11]
10-K	[2012-04-02]

DYNARESOURCE INC [DYNR] Filings

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