DYNARESOURCE, INC. [DYNR] Filings

10-Q 1 dynr-20240930.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 September 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	☐

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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 13, 2024, there were 29,428,226 shares of Common Stock of the registrant outstanding.

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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	24

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	30

ITEM 4.	Controls and Procedures	30

PART II.	OTHER INFORMATION

ITEM 1.	Legal Proceedings	32

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

ITEM 3.	Defaults Upon Senior Securities	32

ITEM 4.	Mine Safety Disclosures	32

ITEM 5.	Other Information	32

ITEM 6.	Exhibits	33

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

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DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2024 AND DECEMBER 31, 2023


	2024			2023
	(Unaudited)			(Audited)
ASSETS
Current assets
Cash	$	596,024		$	5,603,713
Accounts receivable		1,416,056			880,473
Concentrate and ore inventories (Note 2)		1,855,983			2,089,194
Foreign tax receivable		5,378,354			4,434,958
Other current assets (Note 5)		1,928,327			1,137,162
Total current assets		11,174,744			14,145,500
Property and equipment (net of accumulated
depreciation and amortization of $34,832 and $12,239) (Note 3)		87,196			103,034
Right-of-use assets, net		763,156			848,822
Mining concessions (Note 4)		4,132,678			4,132,678
Deferred tax asset, net (Note 13)		4,264,115			4,264,115
Foreign tax receivable		13,161,257			11,768,613
Other assets		164,896			175,588
TOTAL ASSETS	$	33,748,042		$	35,438,350

LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities
Accounts payable	$	4,862,337		$	2,768,634
Accrued liabilities (Note 6)		9,344,812			7,727,621
Derivative liability (Note 7)		874,324			1,797,341
Notes payable (Note 8)		11,312,500			9,750,000
Current portion of operating lease payable		119,871			104,117
Installment notes payable (Note 9)		1,953,979			2,259,432
Total current liabilities		28,467,823			24,407,145
Operating lease payable, less current portion		726,221			825,762
Deferred tax liability (Note 13)		334,236			334,236
Asset retirement obligation (Note 10)		212,163			198,468
TOTAL LIABILITIES		29,740,443			25,765,611
TEMPORARY EQUITY (Note 11)
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) (Note 11)
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		(546,175	)		697,700
Accumulated deficit		(66,776,464	)		(58,570,167	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		(1,849,881	)		3,815,259
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	33,748,042		$	35,438,350

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

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DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND

COMPREHENSIVE LOSS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)


	Three Months			Three Months			Nine Months			Nine Months
	Sept 30,			Sept 30,			Sept 30,			Sept 30,
	2024			2023			2024			2023
REVENUE	$	11,203,505			6,115,370		$	31,715,963			28,980,618
COSTS AND EXPENSES OF MINING OPERATION
Mine production costs		3,714,777			2,553,369			11,231,687			8,022,328
Mine exploration costs		2,870,904			2,854,863			8,120,521			7,318,836
Mill production cost applicable to sales		1,233,183			1,800,787			3,943,588			5,004,260
Camp, warehouse and facilities		1,347,744			1,379,782			4,129,115			3,888,241
Transportation costs		1,068,403			1,162,314			3,642,774			3,266,165
Property holding costs		47,581			48,824			134,963			130,015
Facilities expansion costs		354,346			401,464			2,447,826			1,226,135
Exploration drilling and reserve studies		242,482			569,261			1,542,316			1,694,536
General and administrative		935,117			1,429,879			3,262,382			6,660,862
Stock Compensation Expense (Note 12)		—			—			822,500			—
Accretion expense		4,565			—			13,695			—
Depreciation and amortization		7,906			4,896			22,593			4,896
TOTAL OPERATING EXPENSES		11,827,008			12,205,439			39,313,960			37,216,274
NET OPERATING LOSS		(623,503	)		(6,090,069	)		(7,597,997	)		(8,235,656	)
OTHER INCOME (EXPENSE)
Foreign currency gains		(267,548	)		(80,815	)		(244,356	)		(46,588	)
Interest expense		(469,933	)		(121,079	)		(1,305,270	)		(345,254	)
Derivative mark-to-market gain		477,125			(705,079	)		923,017			(142,802	)
Other income		13,347			561			18,309			1,868
TOTAL OTHER INCOME (EXPENSE)		(247,009	)		(906,412	)		(608,300	)		(532,776	)

NET LOSS BEFORE TAXES		(870,512	)		(6,996,481	)		(8,206,297	)		(8,768,432	)
INCOME TAXES BENEFIT (Note 13)		—			1,045,355			—			2,256,570

NET LOSS	$	(870,512	)	$	(5,951,126	)	$	(8,206,297	)	$	(6,511,862	)
DEEMED DIVIDEND FOR SERIES C & D PREFERRED		(58,574	)		(58,574	)		(175,724	)		(175,724	)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(929,086	)	$	(6,009,700	)	$	(8,382,021	)	$	(6,687,586	)

LOSS PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic loss per common share	$	(0.04	)	$	(0.27	)	$	(0.36	)	$	(0.30	)
Weighted average shares outstanding – Basic		23,658,995			22,558,129			23,470,266			22,455,445
Diluted loss per common share	$	(0.04	)	$	(0.27	)	$	(0.36	)	$	(0.30	)
Weighted average shares outstanding – Diluted		23,658,995			22,558,129			23,470,266			22,455,455

OTHER COMPREHENSIVE INCOME
Unrealized foreign currency translation gain (loss)		(746,323	)		(210,050	)		(1,243,875	)		141,167
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		(746,323	)		(210,050	)		(1,243,875	)		141,167
TOTAL COMPREHENSIVE LOSS	$	(1,616,835	)	$	(6,161,176	)	$	(9,450,172	)	$	(6,370,695	)

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

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DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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 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 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, 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

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

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																													141,167						141,167

Net Loss																																(6,511,862	)		(6,511,862	)

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

	THREE MONTHS ENDED SEPTEMBER 30, 2024

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	)

Other Comprehensive Income																													(746,323	)					(746,323	)

Net Loss																																(870,512	)		(870,512	)

Balance, September 30, 2024		-		$	-			1,552,794	$	2,500,000		23,658,995	$	236,590		1	$	40,000	$	62,791,191			37,180		$	(95,023	)	$	(546,175	)	$	(66,776,464	)	$	(1,849,881	)

	NINE MONTHS ENDED SEPTEMBER 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																													(1,243,875	)					(1,243,875	)

Net Loss																																(8,206,297	)		(8,206,297	)

Balance, September 30, 2024		-		$	-			1,552,794	$	2,500,000		23,658,995	$	236,590		1	$	40,000	$	62,791,191			37,180		$	(95,023	)	$	(546,175	)	$	(66,776,464	)	$	(1,849,881	)

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

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DYNARESOURCE, INC.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited)


	2024			2023
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net (loss)	$	(8,206,297	)	$	(6,511,862	)
Adjustments to reconcile net income (loss) to cash used in operating activities
Derivatives mark-to-market gain		(923,017	)		142,802
Accretion expense		13,695			—
Depreciation and amortization		22,593			4,896

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10-K	[2022-03-24]
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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]