DYNARESOURCE INC [DYNR] Filings

10-Q 1 dynr-20240630.htm 10-Q 10-Q

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 June 30, 2024


☐	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) 869-9400

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

    Title of each class

    Trading
Symbol(s)

    Name of each exchange on which registered

    None

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 August 19, 2024, there were 23,658,995 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	8

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	28

ITEM 4.	Controls and Procedures	28

PART II.	OTHER INFORMATION

ITEM 1.	Legal Proceedings	30

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30

ITEM 3.	Defaults Upon Senior Securities	30

ITEM 4.	Mine Safety Disclosures	30

ITEM 5.	Other Information	30

ITEM 6.	Exhibits	31

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

JUNE 30, 2024 AND DECEMBER 31, 2023


	2024			2023
	(Unaudited)			(Audited)
ASSETS
Current assets
Cash	$	3,200,966		$	5,603,713
Accounts receivable		602,965			880,473
Inventories		1,712,213			2,089,194
Foreign tax receivable		5,580,457			4,434,958
Other current assets		1,426,948			1,137,162
Total current assets		12,523,549			14,145,500
Property and equipment (net of accumulated
depreciation and amortization of $26,926 and $12,239)		95,102			103,034
Right-of-use assets, net		789,393			848,822
Mining concessions		4,132,678			4,132,678
Deferred tax asset, net		4,264,115			4,264,115
Foreign tax receivable		12,620,003			11,768,613
Other assets		169,691			175,588
TOTAL ASSETS	$	34,594,531		$	35,438,350

LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	5,188,899		$	2,768,634
Accrued expenses		8,618,855			7,727,621
Derivative liabilities		1,351,449			1,797,341
Note payable		10,312,500			9,750,000
Current portion of operating lease payable		116,617			104,117
Installment notes payable		2,090,959			2,259,432
Total current liabilities		27,679,279			24,407,145
Operating lease payable, less current portion		748,984			825,762
Deferred tax liability		334,236			334,236
Asset retirement obligation		207,598			198,468
TOTAL LIABILITIES		28,970,097			25,765,611
TEMPORARY EQUITY
Series C Senior Convertible Preferred Stock, $0.0001 par value, 1,734,992 shares authorized, issued and outstanding		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		1,520,000			1,520,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY (DEFICIT)
Common Stock, $0.01 par value, 40,000,000 shares authorized 23,658,995 and 23,371,708 shares issued and outstanding		236,590			233,717
Series E Senior Convertible Preferred Stock, $0.0001 par value, 1,552,794 and 0 shares authorized, issued and outstanding		2,500,000			—
Preferred rights		40,000			40,000
Additional paid-in-capital		62,791,191			61,509,032
Treasury stock, 37,180 shares each period, at cost		(95,023	)		(95,023	)
Accumulated other comprehensive income		200,148			697,700
Accumulated deficit		(65,905,952	)		(58,570,167	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(233,046	)		3,815,259
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	34,594,531		$	35,438,350

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 SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Unaudited)


	Three Months			Three Months			Six Months			Six Months
	June 30,			June 30,			June 30,			June 30,
	2024			2023			2024			2023
REVENUE	$	11,083,602			10,912,169		$	20,512,458			22,865,248
COSTS AND EXPENSES OF MINING OPERATION
Mine production costs		3,761,553			2,939,522			7,516,910			5,468,959
Mine exploration costs		2,790,400			2,247,024			5,249,617			4,463,973
Production cost applicable to sales		1,489,053			2,055,513			3,384,810			3,766,775
Camp, warehouse and facilities		1,336,146			1,426,280			2,781,371			2,508,459
Transportation costs		904,099			794,486			1,899,966			1,540,549
Property holding costs		43,335			41,670			87,382			81,191
Facilities expansion costs		1,305,671			539,593			2,093,480			824,671
Exploration drilling		379,349			627,875			1,299,834			1,125,275
General and administrative		1,125,224			2,265,390			2,327,265			5,230,983
Stock Compensation Expense		822,500			—			822,500			—
Accretion expense		4,565			—			9,130			—
Depreciation and amortization		7,344			—			14,687			—
TOTAL OPERATING EXPENSES		13,969,239			12,937,353			27,486,952			25,010,835
NET OPERATING LOSS		(2,885,637	)		(2,025,184	)		(6,974,494	)		(2,145,587	)
OTHER INCOME (EXPENSE)
Foreign currency gains		(4,885	)		15,973			23,192			34,227
Interest expense		(407,449	)		(107,867	)		(835,337	)		(224,175	)
Derivative mark-to-market gain		365,751			392,843			445,892			562,277
Other income		4,806			(2,398	)		4,962			1,307
TOTAL OTHER INCOME (EXPENSE)		(41,777	)		298,551			(361,291	)		373,636

NET LOSS BEFORE TAXES		(2,927,414	)		(1,726,633	)		(7,335,785	)		(1,771,951	)
INCOME TAXES BENEFIT		—			1,134,192			—			1,211,215

NET LOSS	$	(2,927,414	)	$	(592,441	)	$	(7,335,785	)	$	(560,736	)
DEEMED DIVIDEND FOR SERIES C & D PREFERRED		(58,575	)		(58,575	)		(117,150	)		(117,150	)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(2,985,989	)	$	(651,016	)	$	(7,452,935	)	$	(677,886	)

LOSS PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic loss per common share	$	(0.13	)	$	(0.03	)	$	(0.32	)	$	(0.03	)
Weighted average shares outstanding – Basic		23,378,022			22,246,654			23,374,865			22,246,654
Diluted loss per common share	$	(0.13	)	$	(0.03	)	$	(0.32	)	$	(0.03	)
Weighted average shares outstanding – Diluted		23,378,022			22,246,654			23,374,865			22,246,654

OTHER COMPREHENSIVE INCOME
Unrealized foreign currency translation gain (loss)		(700,791	)		259,976			(497,552	)		351,217
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(700,791	)		259,976			(497,552	)		351,217
TOTAL COMPREHENSIVE LOSS	$	(3,628,205	)	$	(332,465	)	$	(7,833,337	)	$	(209,519	)

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 (DEFICIT)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Unaudited)


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

	THREE MONTHS ENDED JUNE 30, 2023

Balance March 31, 2023		1,000		$	1			—	$	—		22,246,654	$	222,467		1	$	40,000	$	56,889,031			12,180		$	(34,773	)	$	203,319		$	(44,004,958	)	$	13,315,087

Purchase of Series A Preferred Stock																							1,000			(1,250,000	)								(1,250,000	)

Cancellation of Series A Preferred Stock		(1,000	)		(1	)														(1,249,999	)		(1,000	)		1,250,000									—

Acquisition of Treasury Stock																							25,000			(60,250	)								(60,250	)

Other Comprehensive Income																													259,976						259,976

Net Income																																(592,441	)		(592,441	)

Balance, June 30, 2023		—		$	0			—	$	—		22,246,654	$	222,467		1	$	40,000	$	55,639,032			37,180		$	(95,023	)	$	463,295		$	(44,597,399	)	$	11,672,372

	SIX MONTHS ENDED JUNE 30, 2023

Balance January 1, 2023		1,000		$	1			—	$	—		22,246,654	$	222,467		1	$	40,000	$	56,889,031			12,180		$	(34,773	)	$	112,078		$	(44,036,663	)	$	13,192,141

Purchase of Series A Preferred Stock																							1,000			(1,250,000	)								(1,250,000	)

Cancellation of Series A Preferred Stock		(1,000	)		(1	)														(1,249,999	)		(1,000	)		1,250,000									—

Acquisition of Treasury Stock																							25,000			(60,250	)								(60,250	)

Other Comprehensive Income																													351,217						351,217

Net Income																																(560,736	)		(560,736	)

Balance, June 30, 2023		—		$	0			—	$	—		22,246,654	$	222,467		1	$	40,000	$	55,639,032			37,180		$	(95,023	)	$	463,295		$	(44,597,399	)	$	11,672,372

	THREE MONTHS ENDED JUNE 30, 2024

Balance March 31, 2024		—		$	-			—	$	—		23,371,708	$	233,717		1	$	40,000	$	61,509,032			37,180		$	(95,023	)	$	900,939		$	(62,978,538	)	$	(389,873	)

Sales of Series E Preferred Shares								1,552,794		2,500,000																									2,500,000

Sales Issued for Services												287,287		2,873						459,659															462,532

Stock Compensation - Vesting																				822,500															822,500

Other Comprehensive Income																													(700,791	)					(700,791	)

Net Loss																																(2,927,414	)		(2,927,414	)

Balance, June 30, 2024		-		$	-			1,552,794	$	2,500,000		23,658,995	$	236,590		1	$	40,000	$	62,791,191			37,180		$	(95,023	)	$	200,148		$	(65,905,952	)	$	(233,046	)

	SIX MONTHS ENDED JUNE 30, 2024

Balance January 1, 2024		—		$	-			—	$	—		23,371,708	$	233,717		1	$	40,000	$	61,509,032			37,180		$	(95,023	)	$	697,700		$	(58,570,167	)	$	3,815,259

Sales of Series E Preferred Shares								1,552,794		2,500,000																									2,500,000

Sales Issued for Services												287,287		2,873						459,659															462,532

Stock Compensation - Vesting																				822,500															822,500

Other Comprehensive Income																													(497,552	)					(497,552	)

DYNARESOURCE INC [DYNR] Filings
10-Q	[2024-08-19]
10-Q	[2024-05-20]
10-K	[2024-04-16]
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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