United States Antimony Corp 10-Q for FY2020 Q2

United States Antimony Corp (UAMY)

10-Q 2020-08-19 For: 2020-06-30

Added on April 10, 2026

About this 10-Q

United States Antimony Corp filed this 10-Q on August 19, 2020, covering the quarter ended June 30, 2020 (FY2020 Q2).

Headline figures

Quarter ended June 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.59M; down 30.2% from $2.27M a year earlier
Net loss: $274.28K; compared with a net loss of $486.04K a year earlier
Diluted EPS: $0.00; compared with -$0.01 a year earlier

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(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2020
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Montana		81-0305822
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	UAMY	NYSE American

Large Accelerated Filer ☐	Accelerated Filer ☐
Non-Accelerated Filer ☐	Small Reporting Company x Emerging Growth Company ☐

	Page
PART I – FINANCIAL INFORMATION

Item 1: Financial Statements (unaudited)	1-16

Item 2: Management’s Discussion and Analysis of Results of Operations and Financial Condition	16-21

Item 3: Quantitative and Qualitative Disclosure about Market Risk	21

Item 4: Controls and Procedures	21

PART II – OTHER INFORMATION

Item 1: Legal Proceedings	22

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3: Defaults upon Senior Securities	22

Item 4: Mine Safety Disclosures	22

Item 5: Other Information	22

Item 6: Exhibits and Reports on Form 8-K	22

SIGNATURE	23

CERTIFICATIONS	24-28

ASSETS
	June 30, 2020	December 31, 2019
Current assets:
Cash and cash equivalents	$123,415	$115,506
Certificates of deposit	254,212	253,552
Accounts receivable	233,636	284,453
Inventories	586,354	626,244
Total current assets	1,197,617	1,279,755

Properties, plants and equipment, net	11,937,366	12,186,848
Restricted cash for reclamation bonds	57,261	57,261
IVA receivable and other assets	214,063	170,111
Total assets	$13,406,307	$13,693,975

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued and payable	$160,163	$17,633
Accounts payable	2,072,609	2,328,977
Due to factor	11,492	10,880
Accrued payroll, taxes and interest	189,777	260,800
Other accrued liabilities	381,563	334,208
Payable to related parties	272,054	359,309
Deferred revenue	32,400	32,400
Notes payable to bank	165,931	197,066
Hillgrove advances payable (Note 10)	378,074	378,074
Long-term debt, current portion	55,875	56,334
Total current liabilities	3,719,938	3,975,681

Long-term debt, net of current portion	55,983	76,762
Hillgrove advances payable (Note 10)	756,147	756,147
Note payable-SBA (Note 15)	443,400	-
Stock payable to directors for services	65,625	134,375
Asset retirement obligations and accrued reclamation costs	288,254	283,868
Total liabilities	5,329,347	5,226,833
Commitments and contingencies (Note 4 and 10)

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 $937,500 and $930,000
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: 1,751,005 shares issued and outstanding
(liquidation preference $5,043,622 and $5,002,473
respectively)	17,509	17,509
Common stock, $0.01 par value, 90,000,000 shares authorized;
70,206,899 and 69,661,436 shares issued and outstanding, respectively	702,068	696,614
Additional paid-in capital	37,295,259	37,107,730
Accumulated deficit	(29,947,155)	(29,363,990)
Total stockholders' equity	8,076,960	8,467,142
Total liabilities and stockholders' equity	$13,406,307	$13,693,975

	For the three months ended		For the six months ended
	June 30, 2020	June 30, 2019	June 30, 2020	June 30, 2019

REVENUES	$1,585,191	$2,272,283	$3,328,182	$4,728,648

COST OF REVENUES	1,601,252	2,445,478	3,243,066	4,970,896

GROSS PROFIT (LOSS)	(16,061)	(173,195)	85,116	(242,248)

OPERATING EXPENSES:
General and administrative	116,560	153,909	316,531	359,083
Salaries and benefits	111,178	100,362	206,147	333,030
Other operating expenses	25	10,500	24,250	86,630
Professional fees	32,652	22,452	117,610	123,194
TOTAL OPERATING EXPENSES	260,415	287,223	664,538	901,937

INCOME (LOSS) FROM OPERATIONS	(276,476)	(460,418)	(579,422)	(1,144,185)

OTHER INCOME (EXPENSE):
Interest income	31	31	835	772
Interest expense	(6,439)	(24,228)	(11,187)	(46,716)
Grant income (Note 15)	10,000	-	10,000	-
Factoring expense	(1,399)	(1,424)	(3,391)	(3,370)
TOTAL OTHER INCOME (EXPENSE)	2,193	(25,621)	(3,743)	(49,314)

NET INCOME (LOSS)	(274,283)	(486,039)	(583,165)	(1,193,499)
Preferred dividends	(12,162)	(12,162)	(24,325)	(24,325)

Net income (loss) available to common stockholders	$(286,445)	$(498,201)	$(607,490)	$(1,217,824)

Net income (loss) per share of common stock:
Basic	-	$(0.01)	$(0.01)	$(0.02)
Diluted	-	$(0.01)	$(0.01)	$(0.02)

Weighted average shares outstanding:
Basic	70,177,677	68,721,070	69,937,144	68,614,804
Diluted	70,177,677	68,721,070	69,937,144	68,613,804

	Total Preferred Stock		Common Stock
Three months ended June 30, 2020	Shares	Amount	Shares	Amount	Additional Paid In Capital	Accumulated Deficit	Total Stockholders' Equity

Balances, April 1, 2020	2,678,909	$26,788	69,911,436	$699,114	$37,167,730	$(29,672,872)	$8,220,760

Issuance of common stock to Directors			295,463	2,954	127,529		130,483
Net loss						(274,283)	(274,283)
Balances, June 30, 2020	2,678,909	$26,788	70,206,899	$702,068	$37,295,259	$(29,947,155)	$8,076,960

	Total Preferred Stock		Common Stock
Three months ended June 30, 2019	Shares	Amount	Shares	Amount	Additional Paid In Capital	Accumulated Deficit	Stockholders' Equity

Balances, April 1, 2019	2,678,909	$26,788	68,427,171	$684,271	$36,540,874	$(26,398,559)	$10,853,374

Issuance of common stock to Directors			330,183	3,302	171,698		175,000
Net loss						(486,039)	(486,039)
Balances, June 30, 2019	2,678,909	$26,788	68,757,354	$687,573	$36,712,572	$(26,884,598)	$10,542,335

For the six month periods ended June 30, 2020 and 2019

	Total Preferred Stock		Common Stock
Six months ended June 30, 2020	Shares	Amount	Shares	Amount	Additional Paid In Capital	Accumulated Deficit	Total Stockholders' Equity

Balances, January 1, 2020	2,678,909	$26,788	69,661,436	$696,614	$37,107,730	$(29,363,990)	$8,467,142
Issuance of common stock upon exercise of warrants (Note 10)			250,000	2,500	60,000		62,500
Issuance of common stock to Directors			295,463	2,954	127,529		130,483
Net loss						(583,165)	(583,165)
Balances, June 30, 2020	2,678,909	$26,788	70,206,899	$702,068	$37,295,259	$(29,947,155)	$8,076,960

	Total Preferred Stock		Common Stock
Six months ended June 30, 2019	Shares	Amount	Shares	Amount	Additional Paid In Capital	Accumulated Deficit	Stockholders' Equity

Balances, January 1, 2019	2,678,909	$26,788	68,227,171	$682,271	$36,406,874	$(25,691,099)	$11,424,834

Issuance of common stock to chief financial officer			200,000	2,000	134,000		136,000
Issuance of common stock to Directors			330,183	3,302	171,698		175,000
Net loss						(1,193,499)	(1,193,499)
Balances, June 30, 2019	2,678,909	$26,788	68,757,354	$687,573	$36,712,572	$(26,884,598)	$10,542,335

	June 30, 2020	June 30, 2019
Warrants	452,041	250,000
Convertible preferred stock	1,751,005	1,751,005
Total possible dilution	2,203,046	2,001,005

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Antimony	$910,484	$1,507,588	$2,031,909	$3,213,411
Zeolite	612,715	704,172	1,172,075	1,430,187
Precious metals	61,992	60,523	124,198	85,050
	$1,585,191	$2,272,283	$3,328,182	$4,728,648

Largest Accounts Receivable	June 30, 2020	December 31, 2019
Nutreco Canada Inc.		$21,219
Zeo Inc.	$21,633	-
RyMar Synthetic Grass	20,710	-
Lake Shore Gold	-	27,854
Teck North America Inc.	93,100	-
Commerce Industrial Chemical	-	54,684
	$135,443	$103,757
% of Total Receivables	58.00%	36.48%

	June 30, 2020	December 31, 2019
Antimony Oxide	$122,783	$204,550
Antimony Metal	25,776	5,654
Antimony Ore	151,841	151,841
Total antimony	300,400	362,045
Zeolite	285,954	264,199
	$586,354	$626,244

	For the six months ended
	June 30, 2020	June 30, 2019
Cash Flows From Operating Activities:
Net income (loss)	$(583,165)	$(1,193,499)
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities:
Depreciation and amortization	449,648	446,546
Amortization of debt discount	-	36,338
Accretion of asset retirement obligation	4,386	3,074
Common stock issued for services	-	136,000
Common stock payable for directors' fees	61,733	62,500
Other non cash items	(660)	(598)
Change in:
Accounts receivable, net	50,817	21,386
Inventories	39,890	31,573
IVA receivable and other assets	(43,952)	1,679
Accounts payable	(256,368)	145,252
Accrued payroll, taxes and interest	(71,023)	82,845
Other accrued liabilities	47,355	35,782
Payables to related parties	21,405	36,135
Net cash provided (used) by operating activities	(279,934)	(154,987)

Cash Flows From Investing Activities:
Payment received on note receivable for sale of land	-	400,000
Purchases of properties, plants and equipment	(200,166)	(473,578)
Net cash used by investing activities	(200,166)	(73,578)

Cash Flows From Financing Activities:
Change in checks issued and payable	142,530	66,546
Net proceeds from (payments to) factor	612	(2,720)
Advances from related party	-	227,200
Payments on advances from related party	(46,160)	-
Proceeds from note payable-SBA	443,400	-
Proceeds from notes payable to bank, net of payments	(31,135)	16,081
Principal payments on long-term debt	(21,238)	(89,430)
Net cash provided (used) by financing activities	488,009	217,677

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,909	(10,888)
Cash and cash equivalents and restricted cash at beginning of period	172,767	113,897
Cash and cash equivalents and restricted cash at end of period	$180,676	$103,009

	For the Three Months Ended		For the Six Months Ended
	June 30, 2020	June 30, 2019	June 30, 2020	June 30, 2019
Mexichem Speciality Compounds		$375,514	$523,660	$1,059,525
Nyacol Nanotechnologies		267,638	-	404,324
Kohler Corporation		454,943	-	913,037
GE Chaplin, Inc	$176,081	-	290,372	-
Comerce Industrial Chemical	148,019	-	-	-
ZEO, Inc.	231,010	-	374,102	-
	$555,110	$1,098,095	$1,188,134	$2,376,886
% of Total Revenues	35.00%	48.33%	35.70%	50.27%

	June 30, 2020	December 31, 2019
Promissory note payable to First Security Bank of Missoula,
bearing interest at 3.150%, payable on demand, collateralized
by a lien on Certificate of Deposit	$99,999	$97,067

Promissory note payable to First Security Bank of Missoula,
bearing interest at 3.150%, payable on demand, collateralized
by a lien on Certificate of Deposit	65,932	99,999

Total notes payable to the bank	$165,931	$197,066

	June 30, 2020	December 31, 2019
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$83,400	$100,000
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.	22,312	26,250
Note payable to De Lage Landen Financial Services,
bearing interest at 3.51%; payable in monthly installments of $655;
maturing September 2019; collateralized by equipment.	-	700
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.	6,146	6,146
	111,858	133,096
Less current portion	(55,875)	(56,334)
Long-term portion	$55,983	$76,762

Accounts Receivble	June 30, 2020	December 31, 2019
Accounts receivable - non factored	$222,144	$273,573
Accounts receivable - factored with recourse	11,492	10,880
Accounts receivable - net	$233,636	$284,453

12 Months Ending June 30,	Principal Payment
2021	55,875
2022	41,931
2023	14,052
	$111,858

Properties, plants and equipment, net:	June 30, 2020	December 31, 2019
Antimony
United States	$1,648,758	$1,631,100
Mexico	8,244,499	8,800,820
Subtotal Antimony	9,893,257	10,431,920
Precious metals	939,087	567,738
Zeolite	1,105,022	1,187,190
Total	$11,937,366	$12,186,848

Segment Operations for the three months ended June 30, 2020	Antimony USA	Antimony Mexico	Total Antimony	Precious Metals	Zeolite	Totals

Total revenues	$910,484	$-	$910,484	$61,992	$612,715	$1,585,191

Depreciation and amortization	$7,394	$146,101	$153,495	$20,683	$49,189	$223,367

Income (loss) from operations	$126,208	$(559,575)	$(433,367)	$41,308	$115,583	$(276,476)

Other income (expense):	4,739	-	4,739	-	(2,546)	2,193

NET INCOME (LOSS)	$130,947	$(559,575)	$(428,628)	$41,308	$113,037	$(274,283)

Segment Operations for the six months ended June 30, 2020	Antimony USA	Antimony Mexico	Total Antimony	Precious Metals	Zeolite	Totals

Total revenues	$2,031,909	$-	$2,031,909	$124,198	$1,172,075	$3,328,182

Depreciation and amortization	$14,789	$292,199	$306,988	$44,281	$98,379	$449,648

Income (loss) from operations	$365,559	$(1,278,641)	$(913,082)	$79,917	$253,743	$(579,422)

Other income (expense):	1,824	-	1,824	-	(5,567)	(3,743)

NET INCOME (LOSS)	$367,383	$(1,278,641)	$(911,258)	$79,917	$248,176	$(583,165)

Segment Operations for the sixmonths ended June 30, 2019	Antimony USA	Antimony Mexico	Total Antimony	Precious Metals	Zeolite	Totals

Total revenues	$2,739,819	$473,592	$3,213,411	$85,050	$1,430,187	$4,728,648

Depreciation and amortization	$21,755	$298,168	$319,923	$34,021	$92,602	$446,546

Income (loss) from operations	(108,341)	(1,432,098)	(1,540,439)	51,029	345,225	(1,144,185)

Other income (expense):	(5,787)	(36,338)	(42,125)	-	(7,189)	(49,314)

NET INCOME (LOSS)	$(114,128)	$(1,468,436)	$(1,582,564)	$51,029	$338,036	$(1,193,499)

Antimony - Combined USA	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
and Mexico	June 30, 2020	June 30, 2019	June 30, 2020	June 30, 2019
Lbs of Antimony Metal USA	119,559	175,823	286,467	409,419
Lbs of Antimony Metal Mexico:	114,139	242,306	242,684	451,858
Total Lbs of Antimony Metal Sold	233,698	418,129	529,151	861,277
Average Sales Price/Lb Metal	$3.90	$3.61	$3.84	$3.73
Net loss/Lb Metal	$(1.83)	$(1.69)	$(1.72)	$(1.84)

Gross antimony revenue	$910,484	$1,507,588	$2,031,909	$3,213,411

Cost of sales - domestic	(534,638)	(859,301)	(1,067,926)	(1,643,463)
Cost of sales - Mexico	(563,666)	(1,065,791)	(1,247,727)	(2,245,594)
Operating expenses	(245,549)	(268,163)	(629,338)	(864,794)
Non-operating expenses	4,739	(22,471)	1,824	(42,125)
	(1,339,114)	(2,215,726)	(2,943,167)	(4,795,976)

Net loss - antimony	(428,630)	(708,138)	(911,258)	(1,582,565)
Depreciation,& amortization	153,495	159,961	306,988	319,923
EBITDA - antimony	$(275,135)	$(548,177)	$(604,270)	$(1,262,642)

Precious Metals
Ounces sold
Gold	10	18	24	24
Silver	3,983	3,408	9,031	5,133

Gross precious metals revenue	$61,992	$60,523	$124,198	$85,050
Production costs	(20,683)	(17,011)	(44,281)	(34,021)
Net income - precious metals	41,309	43,512	79,917	51,029
Depreciation	20,683	17,011	44,281	34,021
EBITDA - precious metals	$61,992	$60,523	$124,198	$85,050

Zeolite
Tons sold	3,045	3,600	5,854	7,441
Average Sales Price/Ton	$201.22	$195.60	$200.22	$192.20
Net income (Loss)/Ton	$37.12	$49.61	$42.39	$45.43

Gross zeolite revenue	$612,715	$704,172	$1,172,075	$1,430,187
Cost of sales	(482,266)	(503,375)	(883,132)	(1,047,818)
Operating expenses	(14,865)	(19,060)	(35,200)	(37,143)
Non-operating expenses	(2,546)	(3,150)	(5,567)	(7,189)
Net income - zeolite	113,038	178,587	248,176	338,037
Depreciation	49,189	46,301	98,379	92,601
EBITDA - zeolite	$162,227	$224,888	$346,555	$430,638

Company-wide
Gross revenue	$1,585,191	$2,272,283	$3,328,182	$4,728,648
Production costs	(1,601,253)	(2,445,478)	(3,243,066)	(4,970,896)
Operating expenses	(260,414)	(287,223)	(664,538)	(901,937)
Non-operating expenses	2,193	(25,621)	(3,743)	(49,314)
Net income (loss)	(274,283)	(486,039)	(583,165)	(1,193,499)
Depreciation,& amortization	223,367	223,273	449,648	446,545
EBITDA	$(50,916)	$(262,766)	$(133,517)	$(746,954)

Schedule of recovery values
Metal	Assay	Recovery	Value	Value/Mt
Gold	0.035 opmt	90%	$1900/oz	$59.85
Silver	3.27 opmt	90%	$26.0/oz	$76.52
Antimony	0.652%	70%	$2.70/oz	$27.11
Total				$163.48

Precious Metal Sales Silver/Gold	For the three months ended June 30,		For the six months ended June 30,
Montana	2020	2019	2020	2019
Ounces Gold Shipped (Au)	9.80	9.67	24.71	16.12
Ounces Silver Shipped (Ag)	3,983.46	2,680.77	9,031.12	4,405.17
Total Revenues	$61,992	$37,952	$124,198	$62,479

Financial Condition and Liquidity	June 30, 2020	December 31, 2019

Current assets	$1,197,617	$1,279,755
Current liabilities	(3,719,938)	(3,975,681)
Net Working Capital	$(2,522,321)	$(2,695,926)

/s/ John C. Gustaven			/s/ Daniel L. Parks
John C. Gustaven			Daniel L. Parks
Director and President (Principal Executive)			Chief Financial Officer
Date: August 19, 2020			Date: August 19, 2020

Mine	Mine Act §104 Violations (1)	Mine Act §104(b) Orders (2)	Mine Act §104(d) Citations and Orders (3)	Mine Act §(b)(2) Violations (4)	Mine Act §107(a) Orders (5)	Proposed Assessments from MSHA (In dollars$)	Mining Related Fatalities	Mine Act §104(e) Notice (yes/no) (6)	Pending Legal Action before Federal Mine Saftey and Health Review Commission (yes/no)
Bear River Zeolite	0	0	0	0	0	$0	0	No	No