U.S. Gold Corp 10-Q for FY2025 Q3
U.S. Gold Corp. (USAU)
About this 10-Q
U.S. Gold Corp filed this 10-Q on March 17, 2025, covering the quarter ended January 31, 2025 (FY2025 Q3).
Headline figures
Quarter ended January 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Net loss
- $6.36M
- compared with a net loss of $1.69M a year earlier
- Diluted EPS
- -$0.54
- compared with -$0.18 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________to _____________
Commission
file number:
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
| (Address of Principal Executive Offices) | (Zip Code) |
(Registrant’s Telephone Number, including Area Code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate
by check mark whether the registrant (1) 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. ☒
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). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 ☐ |
| 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
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
Common Stock ($ par value): As of March 14, 2025, there were shares outstanding.
U.S. GOLD CORP.
FORM 10-Q
TABLE OF CONTENTS
| 2 |
FORWARD-LOOKING STATEMENTS
Some information contained in or incorporated by reference into this Quarterly Report on Form 10-Q (this “Form 10-Q”) may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements include comments relating to the ability of available cash reserves at January 31, 2025, to be sufficient for greater than the next twelve months; U.S. Gold Corp.’s (the “Company,” “we,” “us,” or “our”) ability to continue as a going concern; expected vesting of options to purchase shares of the Company’s common stock and expected legal and accounting expenses to maintain compliance with the Sarbanes-Oxley Act of 2002 and the effect of these expenses on the Company’s profitability and our results of operations.
We use the words “anticipate,” “continue,” “likely,” “estimate,” “expect,” “may,” “could,” “will,” “project,” “should,” “believe” and variations of such words and similar expressions to identify forward-looking statements. Statements that contain these words discuss our future expectations and plans, or state other forward-looking information. Although we believe the expectations and assumptions reflected in those forward-looking statements are reasonable, we cannot assure you that these expectations and assumptions will prove to be correct. Our actual results could differ materially from those expressed or implied in these forward-looking statements as a result of the factors set forth in, or incorporate by reference in this report, including:
| ● | deviations from the projections set forth in the prefeasibility study for the CK Gold Project due to unanticipated variations in grade, unexpected challenges with potential mining of the deposit, volatility in commodity prices, variations in expected recoveries, increases in projected operating or capital costs, or delays in our permitting plans; |
| ● | mining exploration and development risks, including risks related to regulatory approvals, operational hazards and accidents, equipment breakdowns, contractor disputes, contractual disputes related to exploration properties and other unanticipated difficulties; |
| ● | the strength of the world economies; |
| ● | competition in the gold and precious minerals mining industries; |
| ● | fluctuations in interest rates and inflation rates; |
| ● | changes in governmental rules and regulations or actions taken by regulatory authorities; |
| ● | future adverse legislation regarding the mining industry and climate change; |
| ● | the impact of geopolitical events and other uncertainties, such as the conflicts in Ukraine and the Middle East; |
| ● | current and future political and economic factors in the United States and China and the relationship between the two countries; |
| ● | our ability to maintain compliance with the Nasdaq Capital Market LLC’s (“Nasdaq”) listing standards; |
| ● | volatility in the market price of our common stock; |
| ● | our ability to fund our business with our current cash reserves based on our currently planned activities; |
| ● | our ability to raise the necessary capital required to continue our business on terms acceptable to us or at all; |
| ● | our expected cash needs and the availability and plans with respect to future financing; |
| ● | our ability to maintain the adequacy of internal control over financial reporting; |
| ● | adverse technological changes and cybersecurity threats; |
| ● | our ability to retain key management and mining personnel necessary to operate and grow our business successfully; and |
| ● | the factors discussed under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024 (“fiscal year 2024”). |
Many of these factors are beyond our ability to control or predict. Although we believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, such statements can only be based on facts and factors currently known to us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. These statements speak only as of the date of this Form 10-Q. Except as required by law, we are not obligated to publicly release any revisions to these forward-looking statements to reflect future events or developments. All subsequent written and oral forward-looking statements attributable to us and persons acting on our behalf are qualified in their entirety by the cautionary statements contained in this section and elsewhere in this Form 10-Q.
| 3 |
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
U.S. GOLD CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| January 31, | April 30, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | $ | ||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| NON - CURRENT ASSETS: | ||||||||
| Property, net | ||||||||
| Reclamation bond deposit | ||||||||
| Operating lease right-of-use asset, net | ||||||||
| Mineral rights | ||||||||
| Total non - current assets | ||||||||
| Total assets | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Stock payable | ||||||||
| Operating lease liabilities, current portion | ||||||||
| Total current liabilities | ||||||||
| LONG- TERM LIABILITIES | ||||||||
| Warrant liability | ||||||||
| Asset retirement obligation | ||||||||
| Operating lease liabilities, less current portion | ||||||||
| Deferred tax liability | ||||||||
| Total long-term liabilities: | ||||||||
| Total liabilities | ||||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS’ EQUITY : | ||||||||
| Preferred stock, $ par value; shares authorized, shares issued and outstanding as of January 31, 2025 and April 30, 2024 |
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| Common stock, $ par value; shares authorized; shares and shares issued and outstanding as of January 31, 2025 and April 30, 2024 | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total liabilities and stockholders’ equity | $ | $ | ||||||
See accompanying notes to unaudited condensed consolidated financial statements.
| 4 |
U.S. GOLD CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months | For the Three Months | For the Nine Months | For the Nine Months | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| January 31, 2025 | January 31, 2024 | January 31, 2025 | January 31, 2024 | |||||||||||||
| Net revenues | $ | $ | $ | $ | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Compensation and related taxes - general and administrative | ||||||||||||||||
| Exploration costs | ||||||||||||||||
| Professional and consulting fees | ||||||||||||||||
| General and administrative expenses | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income (loss): | ||||||||||||||||
| Gain from settlement of asset retirement obligation | ||||||||||||||||
| Interest income | ||||||||||||||||
| Change in fair value of warrant liability | ( | ) | ( | ) | ( | ) | ||||||||||
| Total other income (loss) | ( | ) | ( | ) | ( | ) | ||||||||||
| Loss before provision for income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Provision for income taxes | ||||||||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per common share, basic and diluted | $ | ) | $ | ) | $ | ) | $ | ) | ||||||||
Weighted average common shares outstanding - basic and diluted | ||||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
| 5 |
U.S. GOLD CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2025 AND 2024
| Common Stock | Additional | Total | ||||||||||||||||||
| $0.001 Par Value | Paid-in | Accumulated |
Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
| Balance, April 30, 2024 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Stock-based compensation in connection with restricted common stock award grants and restricted common stock unit grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, July 31, 2024 | ( | ) | ||||||||||||||||||
| Issuance of common stock for exercise of stock warrants | ||||||||||||||||||||
| Issuance of common stock for services including accrued and prepaid services | ||||||||||||||||||||
| Issuance of common stock for vested restricted stock unit | ( | ) | ||||||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, October 31, 2024 | ( | ) | ||||||||||||||||||
| Issuance of common stock, net of issuance cost | ||||||||||||||||||||
| Issuance of common stock for exercise of stock warrants | ||||||||||||||||||||
| Issuance of common stock for vested restricted and deferred stock unit | - | |||||||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, January 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
| 6 |
U.S. GOLD CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2025 AND 2024
| Common Stock | Additional | Total | ||||||||||||||||||
| $0.001 Par Value |
Paid-in | Accumulated |
Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
| Balance, April 30, 2023 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Stock-based compensation in connection with restricted common stock award grants and restricted common stock unit grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, July 31, 2023 | ( | ) | ||||||||||||||||||
| Issuance of common stock for services | ||||||||||||||||||||
| Issuance of common stock for prepaid services | ||||||||||||||||||||
| Cancellation of shares | ( | ) | ( | ) | ||||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Stock-based compensation in connection with restricted common stock award grants and restricted common stock unit grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, October 31, 2023 | ( | ) | ||||||||||||||||||
| Balance | ( | ) | ||||||||||||||||||
| Accretion of stock based compensation in connection with stock option grants | - | |||||||||||||||||||
| Stock-based compensation in connection with restricted common stock award grants and restricted common stock unit grants | - | |||||||||||||||||||
| Net loss | - | ( | ) | ( | ) | |||||||||||||||
| Balance, January 31, 2024 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Balance | $ | $ | $ | ( | ) | $ | ||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
| 7 |
U.S. GOLD CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Nine Months | For the Nine Months | |||||||
| Ended | Ended | |||||||
| January 31, 2025 | January 31, 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | ||||||||
| Accretion | ||||||||
| Amortization of right-of-use asset | ||||||||
| Stock based compensation | ||||||||
| Amortization of prepaid stock based expenses | ||||||||
| Gain from settlement of asset retirement obligation | ( | ) | ||||||
| Change in fair value of warrant liability | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Reclamation bond deposit | ( | ) | ||||||
| Accounts payable and accrued liabilities | ( | ) | ||||||
| Operating lease liability | ( | ) | ( | ) | ||||
| NET CASH USED IN OPERATING ACTIVITIES | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | ( | ) | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | ( | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Issuance of common stock, net of issuance cost | ||||||||
| Issuance of common stock for exercise of stock warrants | ||||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | ||||||||
| NET DECREASE IN CASH | ( | ) | ||||||
| CASH - beginning of year | ||||||||
| CASH - end of period | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | $ | ||||||
| Income taxes | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||||||||
| Issuance of common stock for accrued services | $ | $ | ||||||
| Issuance of common stock for prepaid services | $ | $ | ||||||
| Operating lease right-of-use asset and operating lease liability recorded upon lease modification | $ | $ | ||||||
See accompanying notes to unaudited condensed consolidated financial statements.
| 8 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Organization
U.S. Gold Corp., formerly known as Dataram Corporation (the “Company”), was originally incorporated in the State of New Jersey in 1967 and was subsequently re-incorporated under the laws of the State of Nevada in 2016. Effective June 26, 2017, the Company changed its name to U.S. Gold Corp. from Dataram Corporation. On May 23, 2017, the Company merged with Gold King Corp. (“Gold King”), in a transaction treated as a reverse acquisition and recapitalization, and the business of Gold King became the business of the Company. The Company is a gold and precious metals exploration company pursuing exploration and development properties. The Company owns certain mining leases and other mineral rights comprising the CK Gold Project in Wyoming, the Keystone Project in Nevada and the Challis Gold Project in Idaho. The Company has established an estimate of proven and probable mineral reserves under subpart 1300 of Regulation S-K promulgated by the Securities and Exchange Commission (“S-K 1300”) at its CK Gold Project, where the Company is conducting exploration and pre-development activities, and all of its activities on its other properties are exploratory in nature.
The Company’s CK Gold property contains proven and probable mineral reserves and accordingly is classified as a development stage property, as defined in S-K 1300. None of the Company’s other properties contain proven and probable mineral reserves and all activities are exploratory in nature.
Unless the context otherwise requires, all references herein to the “Company” refer to U.S. Gold Corp. and its consolidated subsidiaries.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and principles of consolidation
The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), the instructions to Form 10-Q, and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information, which includes the unaudited condensed consolidated financial statements and presents the unaudited condensed consolidated financial statements of the Company and its wholly owned subsidiaries as of January 31, 2025. All intercompany transactions and balances have been eliminated. The accounting policies and procedures used in the preparation of these unaudited condensed consolidated financial statements have been derived from the audited financial statements of the Company for the fiscal year ended April 30, 2024, which are contained in the Form 10-K filed on July 29, 2024. The unaudited condensed consolidated balance sheet as of January 31, 2025 was derived from those financial statements. It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation. Operating results during the nine months ended January 31, 2025, are not necessarily indicative of the results to be expected for the fiscal year ending April 30, 2025 (“fiscal year 2025”).
Use of Estimates and Assumptions
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet, and revenues and expenses for the period then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, valuation of mineral rights, stock-based compensation, the fair value of common stock, valuation of warrant liability, asset retirement obligations and the valuation of deferred tax assets and liabilities.
Fair Value Measurements
The Company has adopted ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied in accordance with U.S. GAAP, which requires the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure about such fair value measurements.
| 9 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
These inputs are prioritized below:
| Level 1: | Observable inputs such as quoted market prices in active markets for identical assets or liabilities. |
| Level 2: | Observable market-based inputs or unobservable inputs that are corroborated by market data. |
| Level 3: | Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. |
The Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s (“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The Company’s warrant liability for warrants issued in connection with equity financing in March 2022 and April 2023 (see Note 9) was estimated using a Monte Carlo simulation model using Level 3 inputs.
Cash and Cash Equivalents
Cash
equivalents are comprised of certain highly liquid instruments with a maturity of three months or less when purchased. The Company did
not have any cash equivalents on hand at January 31, 2025 and April 30, 2024. The Company places its cash with high credit quality financial
institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”)
up to $
Prepaid expenses and other current assets
Prepaid
expenses and other current assets of $
Property
Property
is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized.
When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains
or losses are included in income in the year of disposition. Depreciation is calculated on a straight-line basis over the estimated useful
life of the assets, generally to
Impairment of long-lived assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not recognize any impairment during the nine months ended January 31, 2025 and 2024.
Mineral Rights
Costs of leasing, exploring, carrying and retaining unproven mineral lease properties are expensed as incurred. The Company expenses all mineral exploration costs as incurred. Where the Company has identified proven and probable mineral reserves on any of its properties, development costs will be capitalized when all the following criteria have been met, a) the Company receives the requisite operating permits, b) completion of a favorable Feasibility Study and c) approval from the Board of director’s authorizing the development of the ore body. Until such time all these criteria have been met the Company records pre-development costs to expense as incurred.
| 10 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
When a property reaches the production stage, the related capitalized costs will be amortized on a units-of-production basis over the proven and probable reserves following the commencement of production. The Company assesses the carrying costs of the capitalized mineral properties for impairment under ASC 360-10, “Impairment of Long-Lived Assets”, and evaluates their carrying value under ASC 930-360, “Extractive Activities—Mining”, annually, at the end of each fiscal year. An impairment is recognized when the sum of the expected undiscounted future cash flows is less than the carrying amount of the mineral properties. Impairment losses, if any, are measured as the excess of the carrying amount of the mineral properties over its estimated fair value.
To date, the Company has expensed all exploration and pre-development costs as none of its properties have satisfied the criteria above for capitalization.
ASC 930-805, “Extractive Activities—Mining: Business Combinations” (“ASC 930-805”), states that mineral rights consist of the legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights.
Acquired mineral rights are considered tangible assets under ASC 930-805. ASC 930-805 requires that mineral rights be recognized at fair value as of the acquisition date. As a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated with acquiring patented and unpatented mining claims.
ASC 930-805 provides that in measuring the fair value of mineral assets, an acquirer should take into account both:
● The value beyond proven and probable reserves (“VBPP”) to the extent that a market participant would include VBPP in determining the fair value of the assets.
● The effects of anticipated fluctuations in the future market price of minerals in a manner that is consistent with the expectations of market participants.
Leases to explore for or use of natural resources are outside the scope of ASC 842, “Leases”.
Share-based compensation is accounted for based on the requirements of ASC 718, “Compensation—Stock Compensation” (“ASC 718”), which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.
Accounting for Warrants
Warrants are accounted for in accordance with the applicable accounting guidance provided in ASC 815, “Derivatives and Hedging” (“ASC 815”) as either derivative liabilities or as equity instruments, depending on the specific terms of the agreements. The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies as assets or liabilities any contracts that (i) require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the Company) or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). Instruments that are classified as liabilities are recorded at fair value at each reporting period, with any change in fair value recognized as a component of change in fair value of derivative liabilities in the unaudited condensed consolidated statements of operations.
The Company assessed the classification of its outstanding common stock purchase warrants as of the date of issuance and determined that all such instruments met the criteria for equity classification under the guidance in ASC 260, “Earnings Per Share”; ASC 480, “Distinguishing Liabilities from Equity”; ASC 815, “Derivatives and Hedging”, except for the warrants discussed under Warrant Liability below (See Note 9). The Company has no outstanding warrants that contain a “down round” feature under ASC 815-10.
| 11 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
Warrant Liability
The
Company accounts for the
Offering Costs
Offering costs incurred consisted of legal, placement agent fees and other costs that were directly related to registered direct offerings. Offering costs were allocated to the separable financial instruments issued in the registered direct offering based on the same proportion as the proceeds were allocated to the warrants and equity. Offering costs associated with warrant liabilities are expensed as incurred, presented as offering costs related to warrant liability in the unaudited condensed consolidated statements of operations. Offering costs associated with the sale of common shares are charged against equity.
Remediation and Asset Retirement Obligation
Asset retirement obligations (“ARO”), consisting primarily of estimated reclamation costs at the Company’s CK Gold and Keystone properties, are recognized in the period incurred and when a reasonable estimate can be made, and recorded as liabilities at fair value. Such obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to accretion expense. Corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. AROs are periodically adjusted to reflect changes in the estimated present value resulting from revisions to the estimated timing or amount of reclamation and closure costs. The Company reviews and evaluates its AROs annually or more frequently at interim periods if deemed necessary.
Foreign Currency Transactions
The reporting and functional currency of the Company is the U.S. dollar. Transactions denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the balance sheet date with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency included in the results of operations as incurred. Translation adjustments, and transaction gains or losses, have not had, and are not expected to have, a material effect on the results of operations of the Company and are included in general and administrative expenses.
Leases
The Company accounts for leases in accordance with ASC Topic 842, Leases. Operating lease right of use assets (“ROU”) represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments. Upon the election by the Company to extend the lease for additional years, that election will be treated as a lease modification and the lease will be reviewed for re-measurement. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in general and administrative expenses in the statements of operations.
Income Taxes
The Company accounts for income taxes pursuant to the provision of ASC 740, “Accounting for Income Taxes” (“ASC 740”), which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
| 12 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
The Company follows the provision of ASC 740-10, “Accounting for Uncertain Income Tax Positions” (“ASC 740-10”). When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions.
Tax positions that meet the more likely than not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits or for any related interest and penalties. In the event that the Company is assessed penalties and/or interest, penalties will be charged to other operating expense and interest will be charged to interest expense.
The Company follows ASC 740-10-25, “Definition of Settlement”, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the Internal Revenue Service and state taxing authorities, generally for three years after they are filed.
Recent Accounting Pronouncements
Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material effect on the financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an effect on or are unrelated to its financial condition, results of operations, cash flows or disclosures.
In June 2022, FASB issued ASU 2022-03, Fair Value Measurement (Topic 820) (“ASU 2022-03”). The amendments in ASU 2022-03 clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require additional disclosures for equity securities subject to contractual sale restrictions. The provisions in this Update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect to early adopt this ASU. The Company does not expect the adoption of this standard to have a significant impact on its unaudited condensed consolidated financial statements.
In November 2023, FASB issued Accounting Standards Update (“ASU No. 2023-07”), Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which amended Topic 280. The amendments in this update enhance segment reporting by expanding the breadth and frequency of segment disclosures required by public entities. ASU 2023-07 requires public entities to disclose factors used to identify the entities’ reportable segments, how the Chief Operating Decision Maker (“CODM”) uses the reported measure(s) of a segment’s profit or loss to assess segment performance and decide how to allocate resources, significant expenses regularly provided to the CODM and included within the reported measure(s) of a segment’s profit or loss, types of products and services from which each reportable segment derives its revenues, and the title and position of the CODM. The new standard is effective for public entities with fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and is required to be adopted retrospectively for all prior periods presented in the consolidated financial statements. Other than the new disclosure requirements, the adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements.
| 13 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
In December 2023, FASB issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). The standard enhances income tax disclosure requirements for all entities by requiring specified categories and greater disaggregation within the rate reconciliation table, disclosure of income taxes paid by jurisdiction, and providing clarification on uncertain tax positions and related financial statement impacts. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company is currently assessing the impact of ASU 2023-09 on its disclosures.
In March 2024, the Securities and Exchange Commission (SEC) issued its final rule, The Enhancement and Standardization of Climate-Related Disclosures for Investors that requires the Company to provide certain climate-related information in its registration statements and annual reports. The rule provided a phased-in compliance period and was effective for fiscal years beginning after December 15, 2024, with early adoption permitted. On April 4, 2024, the SEC issued an order staying the final rule pending completion of judicial review by the U.S. Court of Appeals for the Eighth Circuit and, therefore, the timing of the effectiveness of these disclosure requirements is uncertain. The Company is currently monitoring the timing of adoption and evaluating the impact of the potential adoption of this standard on its unaudited condensed consolidated financial statements.
NOTE 3 — GOING CONCERN
The
accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course of business. As of January 31, 2025, the Company had cash
of approximately $
The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 4 — MINERAL RIGHTS
As of the dates presented, mineral properties consisted of the following:
SCHEDULE OF MINERAL RIGHTS
| January 31, 2025 | April 30, 2024 | |||||||
| CK Gold Project | $ | $ | ||||||
| Keystone Project | ||||||||
| Challis Gold Project | ||||||||
| Total | $ | $ | ||||||
NOTE 5 — PROPERTY AND EQUIPMENT
As of the dates presented, property and equipment consisted of the following:
SCHEDULE OF PROPERTY AND EQUIPMENT
| January 31, 2025 | April 30, 2024 | |||||||
| Site costs | $ | $ | ||||||
| Land | ||||||||
| Computer equipment | ||||||||
| Vehicle | ||||||||
| Total | ||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
| 14 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
For the three months ended January 31, 2025 and 2024, depreciation expense
amounted to $
NOTE 6 — ASSET RETIREMENT OBLIGATION
In conjunction with various permit approvals permitting the Company to undergo exploration activities at the CK Gold and Keystone projects, the Company has recorded an ARO based upon the reclamation plans submitted in connection with the various permits. The following table summarizes activity in the Company’s ARO for the periods presented:
SCHEDULE OF ASSET RETIREMENT OBLIGATION
| January 31, 2025 | April 30, 2024 | |||||||
| Balance, beginning of period | $ | $ | ||||||
| Retired | ( | ) | ||||||
| Accretion expense | ||||||||
| Balance, end of period | $ | $ | ||||||
For the three months ended January 31, 2025 and 2024, accretion expense
amounted to $
NOTE 7 – OPERATING LEASE RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES
On
May 1, 2021, the Company entered into a lease agreement for a facility in Cheyenne, Wyoming.
On
September 1, 2021, the Company entered into a lease agreement for another facility in Cheyenne, Wyoming.
During the three months ended January 31, 2025 and 2024, operating lease cost of $
| 15 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
Right-of- use assets are summarized below:
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES
January 31, 2025 | April 30, 2024 | |||||||
| Operating leases | $ | $ | ||||||
Operating Lease liabilities are summarized below:
| January 31, 2025 | April 30, 2024 | |||||||
| Operating lease, current portion | $ | $ | ||||||
| Operating lease, long term portion | ||||||||
| Total lease liability | $ | $ | ||||||
The
weighted average remaining lease term for the operating leases is
The following table includes supplemental cash and non-cash information related to the Company’s lease:
SCHEDULE OF SUPPLEMENTAL CASH AND NON-CASH INFORMATION
| Period ended January 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||
| Operating cash flows from operating lease | $ | $ | ||||||
The remaining minimum lease payments under non-cancelable operating leases at January 31, 2025 are as follows:
SCHEDULE OF MINIMUM LEASE PAYMENTS UNDER NON-CANCELABLE OPERATING LEASES
| Year ended April 30, 2025- remainder | ||||
| Year ended April 30, 2026 | ||||
| Total | $ | |||
| Less: imputed interest | ( | ) | ||
| Total present value of lease liability | $ |
NOTE 8 — RELATED PARTY TRANSACTIONS
On
March 10, 2021, the Company entered into a one-year consulting agreement (the “March 2021 Agreement”) with Luke Norman Consulting
Ltd. (“Norman Consulting”), an entity controlled by Luke Norman, who subsequently was appointed as a director of the Company
on May 18, 2022, to provide services related to investor and strategic introductions for potential mergers and acquisitions and other
potential and strategic relationships to add shareholder value. On March 10, 2022, the Company and Norman Consulting mutually agreed
to extend the March 2021 Agreement for an additional 12 months (the “March 2022 Extension”). On March 10, 2023, the Company
and Norman Consulting further extended the March 2021 Agreement for another 12 months (the “March 2023 Extension”). The terms
of the March 2022 Extension and the March 2023 Extension remain the same as stipulated in the March 2021 Agreement. In consideration
for the services provided pursuant to the March 2022 Extension and the March 2023 Extension, Norman Consulting was paid an annual fee
of $
On
November 25, 2024, the Company and Norman Consulting entered into a consulting agreement (the “November 2024 Agreement”)
for an initial term of 12 months, which shall automatically renew for successive 12-month period unless terminated by the Company.
As compensation for services rendered by Norman Consulting to the Company in connection with the November 2024 Agreement, the
Company shall pay Norman Consulting an annual consulting fee of $
| 16 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
NOTE 9 — WARRANT LIABILITY
As
of January 31, 2025 and April 30, 2024, the Company’s warrant liabilities were valued at $
As such, these warrants are recorded at fair value as of each reporting date with the change in fair value reported within other income in the accompanying consolidated statements of operations as “Change in fair value of warrant liability” until the warrants are exercised, expired or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The Company utilized a Monte Carlo Simulation model to estimate the fair values of the April 2023 and March 2022 warrants, which incorporates significant inputs that are not observable in the market, and thus represents a Level 3 measurement as defined in ASC 820. The unobservable inputs utilized for measuring the fair value of the contingent consideration reflect management’s own assumptions about the assumptions that market participants would use in valuing the contingent consideration. The Company determined the fair value by using the below key inputs to the Monte Carlo Simulation Model.
Measurement
The
Company accounted for the
The key inputs for the warrant liability were as follows as of January 31, 2025:
SCHEDULE OF KEY INPUTS FOR THE WARRANT LIABILITY
| Key Valuation Inputs | ||||
| Expected term (years) | ||||
| Annualized volatility | % | |||
| Volatility if fundamental transaction occurs | % | |||
| Risk-free interest rate | % | |||
| Stock price | $ | |||
| Dividend yield | % | |||
| Exercise price | $ | |||
| Probability of fundamental transaction | % | |||
| Date of fundamental transaction | ||||
The key inputs for the warrant liability were as follows as of April 30, 2024:
| 17 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
| Key Valuation Inputs | ||||
| Expected term (years) | ||||
| Annualized volatility | % | |||
| Volatility if fundamental transaction occurs | % | |||
| Risk-free interest rate | % | |||
| Stock price | $ | |||
| Dividend yield | % | |||
| Exercise price | $ | |||
| Probability of fundamental transaction | % | |||
| Date of fundamental transaction | ||||
The following table sets forth a summary of the changes in the fair value of the Level 3 warrant liability for the nine months ended January 31, 2025:
SCHEDULE OF CHANGES IN FAIR VALUE OF LEVEL 3 WARRANT LIABILITY
Warrant Liability | ||||
| Fair value as of April 30, 2024 | $ | |||
| Change in fair value | ||||
| Fair value as of January 31, 2025 | $ | |||
NOTE 10 — STOCKHOLDERS’ EQUITY
As of January 31, 2025, authorized capital stock consisted of shares of common stock, par value $ per share, and shares of “blank check” preferred stock, par value $ per share, of which shares are designated as Series A Convertible Preferred Stock, shares are designated as Series B Convertible Preferred Stock, shares are designated as Series C Convertible Preferred Stock, shares are designated as Series D Convertible Preferred Stock, shares are designated as Series E Convertible Preferred Stock, shares are designated as Series F Preferred Stock, shares are designated as Series G Preferred Stock, shares are designated as Series H Preferred Stock, and shares are designated as Series I Preferred Stock. The Company’s Board has the authority, without further action by the stockholders, to issue shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions granted to or imposed upon the preferred stock.
There were shares of Preferred Stock outstanding as of January 31, 2025 and April 30, 2024.
Common Stock issued for cash
On
November 27, 2024, the Company entered into a Securities Purchase Agreement with certain investors providing for the issuance and sale
by the Company in a registered direct offering (the “Offering”) an aggregate of
Common Stock issued for exercise of Common Stock Purchase Warrants
In
October 2024, the Company issued an aggregate of shares of common stock upon the exercise of
Between
November 2024 and January 2025, the Company issued an aggregate of shares of common stock upon the exercise of
Common Stock Issuances, Restricted Stock Awards, and RSUs/DSUs Granted for Services
On
September 26, 2024, the Company issued shares of common stock to a consultant in connection with a consulting agreement for services
to be rendered from March 2024 to March 2025. The shares of common stock had a fair value of $
| 18 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
On September 26, 2024, the Company issued shares of common stock to a former director in connection with vested restricted stock units (RSUs).
On
September 30, 2024, the Company issued an aggregate of shares of common stock to a consultant in connection with a consulting
agreement for services rendered from October 2023 to September 2024. The shares of common stock had a fair value of $
On
November 25, 2024, the Company issued an aggregate of RSUs to certain officers and RSUs to a director of the Company for
services rendered. The aggregate of RSUs had a fair value of $
On
November 25, 2024, the Company issued an aggregate of RSUs to certain officers and RSUs to a consultant for services already
rendered and future services. The aggregate of RSUs had a fair value of $
On
November 25, 2024, the Company issued an aggregate of deferred stock units (DSUs) to three directors of the Company for services
rendered. The DSUs had a fair value of $
On
November 25, 2024, the Company issued DSUs to a consultant for services already rendered and future services. The DSUs had
a fair value of $
Total stock-based compensation expense for awards issued for services was
$ and $ for the three months ended January 31, 2025, and 2024, respectively. Total
stock-based compensation expense for awards issued for services was $ and $ for the nine months ended January 31, 2025,
and 2024, respectively. As of January 31, 2025, there were unvested RSUs and unvested DSUs outstanding, with a total unvested
compensation expense of $ remaining to be expensed, which will vest upon the occurrence of certain conditions. Additionally, there
were
SCHEDULE OF ACTIVITY RESTRICTED AND DEFERRED STOCK UNITS
| Restricted and Deferred Stock Units | Weighted Average Grant-Date Fair Value Per Share | |||||||
| Balance at April 30, 2024 | $ | |||||||
| Granted | ||||||||
| Converted into common stock | ( | ) | ||||||
| Balance at January 31, 2025 | $ | |||||||
Equity Incentive Plan
In August 2017, the Board approved the Company’s 2017 Equity Incentive Plan (the “2017 Plan”) including the reservation of shares of common stock thereunder.
| 19 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
On August 6, 2019, the Board approved and adopted, subject to stockholder approval, the 2020 Stock Incentive Plan (the “2020 Plan”). The 2020 Plan initially reserved shares for future issuance to officers, directors, employees and contractors as directed from time to time by the Compensation Committee of the Board. The 2020 Plan was approved by a vote of stockholders at the 2019 annual meeting. With the approval and effectivity of the 2020 Plan, no further grants will be made under the 2017 Plan. On August 31, 2020, the Board approved and adopted, subject to stockholder approval, an amendment (the “2020 Plan Amendment”) to the 2020 Plan. The 2020 Plan Amendment increased the number of shares of common stock available for issuance pursuant to awards under the 2020 Plan by an additional , to a total of shares of the Company’s common stock. The 2020 Plan Amendment was approved by the Company’s stockholders on November 9, 2020. On December 16, 2022, the Company’s stockholders approved another amendment to the 2020 Plan increasing the number of shares of common stock available for issuance pursuant to awards under the 2020 Plan by an additional shares, to a total of shares of the Company’s common stock.
Stock options
SCHEDULE OF STOCK OPTION ACTIVITY
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | ||||||||||
| Balance at April 30, 2024 | $ | |||||||||||
| Granted | ||||||||||||
| Exercised | — | |||||||||||
| Forfeited | — | |||||||||||
| Cancelled | — | |||||||||||
| Balance at January 31, 2025 | ||||||||||||
| Options exercisable at end of period | $ | |||||||||||
| Options expected to vest | $ | |||||||||||
| Weighted average fair value of options granted during the period | $ | |||||||||||
At January 31, 2025 and April 30, 2024, the aggregate intrinsic value of options outstanding and exercisable were $ and $, respectively.
On November 25, 2024, the Company granted an aggregate of options to purchase the Company’s common stock to certain officers and directors of the Company. The options have a term of years from the date of grant and are exercisable at an exercise price of $ (see table below for the assumptions used). The options are fully vested and were expensed immediately.
On November 25, 2024, the Company granted an aggregate of options to purchase the Company’s common stock to certain officers and a director of the Company. The options have a term of years from the date of grant and are exercisable at an exercise price of $. The options vested % on the date of grant and the remaining options shall vest 25% every six months thereafter.
On November 25, 2024, the Company granted options to purchase the Company’s common stock to a consultant of the Company. The options have a term of years from the date of grant and are exercisable at an exercise price of $. The options are fully vested and were expensed immediately.
Between November 25, 2024 and January 25, 2025, the Company granted an aggregate of options to purchase the Company’s common stock to an employee and various consultants of the Company. The options have a term of years from the date of grant and are exercisable at an exercise price ranging from $ to $. The options vested % on the date of grant and the remaining options shall vest 25% every six months thereafter.
The Company used the Black-Scholes model to determine the fair value of stock options granted during the nine months ended January 31, 2025. In applying the Black-Scholes option pricing model to options granted, the Company used the following assumptions:
| 20 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
| Risk-free interest rate | - % | |||
| Dividend yield | % | |||
| Expected volatility | - % | |||
| Contractual and expected term (in years) | ||||
| Forfeiture rate | % |
Stock-based compensation for stock options recorded in the unaudited condensed consolidated statements of operations totaled $ and $ for the three months ended January 31, 2025 and 2024, respectively. Stock-based compensation for stock options recorded in the unaudited condensed consolidated statements of operations totaled $ and $ for the nine months ended January 31, 2025 and 2024, respectively. A balance of $ remains to be expensed over future vesting periods related to unvested stock options issued for services to be expensed over a weighted average period of years.
| Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, 2025 | January 31, 2024 | January 31, 2025 | January 31, 2024 | |||||||||||||
| Compensation and related taxes – general and administrative | $ | $ | $ | $ | ||||||||||||
| Professional and consulting fees | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
Stock Warrants
A summary of the Company’s outstanding warrants to purchase shares of common stock as of January 31, 2025, and the changes during the period are presented below:
SCHEDULE OF STOCK WARRANT ACTIVITY
| Number of Warrants | Weighted Average | Weighted Average Remaining Contractual | ||||||||||
| Warrants with no Class designation: | ||||||||||||
| Balance at April 30, 2024 | $ | |||||||||||
| Granted | — | |||||||||||
| Exercised | ( | ) | — | |||||||||
| Forfeited | — | |||||||||||
| Canceled | — | |||||||||||
| Balance at January 31, 2025 | ||||||||||||
| Class A Warrants: | ||||||||||||
| Balance at April 30, 2024 | ||||||||||||
| Granted | — | |||||||||||
| Exercised | — | |||||||||||
| Forfeited | ( | ) | — | |||||||||
| Canceled | — | |||||||||||
| Balance at January 31, 2025 | — | |||||||||||
| Total Warrants Outstanding at January 31, 2025 | $ | |||||||||||
| Warrants exercisable at end of period | $ | |||||||||||
| Weighted average fair value of warrants granted during the period | $ | |||||||||||
As of January 31, 2025, the aggregate intrinsic value of warrants outstanding and exercisable was $.
Net loss per share of common stock is calculated in accordance with ASC 260, “Earnings Per Share”. Basic loss per share is computed by dividing net loss available to common stockholder, by the weighted average number of shares of common stock outstanding during the period. The following were excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact on the Company’s net loss. In periods where the Company has a net loss, all dilutive securities are excluded.
| 21 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
| January 31, 2025 | January 31, 2024 | |||||||
| Common stock equivalents: | ||||||||
| Restricted and deferred stock units | ||||||||
| Stock options | ||||||||
| Stock warrants | ||||||||
| Total | ||||||||
NOTE 12 — COMMITMENTS AND CONTINGENCIES
Mining Leases
The
CK Gold property position consists of two State of Wyoming Metallic and Non-metallic Rocks and Minerals Mining Leases: (1) State of Wyoming
Mining Lease No. 0-40828, consisting of
Lease
0-40828 was renewed in February 2023 for a third -year term and Lease 0-40858 was renewed for a third -year term in February 2024.
Lease 0-40828 requires an annual payment of $
In
connection with the Wyoming Mining Leases, production royalties of
The future minimum lease payments at January 31, 2025, under these mining leases are as follows, with each payment to be made in the fourth quarter of the respective fiscal years:
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS
| Fiscal 2026 | $ | |||
| Fiscal 2027 | ||||
| Fiscal 2028 | ||||
| Fiscal 2029 | ||||
| Fiscal 2030 | ||||
| Fiscal 2031 and thereafter | ||||
| Total | $ |
The
Company may renew each lease for a fourth -year term, which will require annual payments of $
NPRC option:
Pursuant
to the Merger, the Company acquired from NPRC a mineral property called Challis Gold located in Idaho pursuant to an option agreement
dated in February 2020 which was later amended in June 2020. The Company satisfied the minimum royalty payment of $
The annual advance minimum royalty payments at January 31, 2025 for each fiscal year, under the option agreement are as follows, each payment to be made on the first anniversary of the effective date of the option agreement and continuing until the tenth anniversary:
SCHEDULE OF ADVANCE MINIMUM ROYALTY PAYMENTS
| Fiscal 2026 | $ | |||
| Fiscal 2027 | ||||
| Fiscal 2028 | ||||
| Fiscal 2029 | ||||
| Fiscal 2030 | ||||
| Fiscal 2031 | ||||
| Total | $ |
| 22 |
U.S. GOLD CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 2025
Exploration Access and Option to Lease Agreement
On
August 25, 2021 (“Effective Date”), the Company entered into an Exploration Access and Option to Lease Agreement (the “Agreement”)
with a private-party landowner (the “Landowner”) whereby the Landowner granted the Company an option (the “Option”)
to lease and right of way on a property located in Laramie County, Wyoming. The Company may exercise the Option for five years (“Option
Term”) from the Effective Date. During the Option, the Landowner granted non-exclusive rights (the “Exploration Access Rights”)
to the Company to use the surface of the property for an annual exploration and access right payment of $
At
any time during the Option Term, the Company may exercise the Option by providing a written notice to the Landowner and the Company shall
pay a one-time right-of-way payment of $
In
consideration for the option rights, lease rights and right of way rights under this Agreement, the Company agreed to grant the Landowner
shares of the Company’s common stock worth $
At any time during the Option Term, the Company may terminate this Agreement by providing a written notice to the Landowner. Upon termination, the Landowner is entitled to retain any payments already made and the Company shall have no further obligation after the date of termination. The Agreement, including the Option and the Exploration Access Rights, may be extended for a period of five years upon written notice from the Company. In the absence of such notice, the Agreement shall automatically terminate at the end of the Option Term. Currently, the Company has not exercised the Option.
Legal Matters
From time to time the Company may be involved in claims and legal actions that arise in the ordinary course of business. To the Company’s knowledge, there are no material pending legal proceedings to which the Company is a party or of which any of the Company’s property is the subject.
NOTE 13 — SUBSEQUENT EVENTS
In
February 2025, the Company issued an aggregate of shares of common stock upon the exercise of
| 23 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The interim unaudited condensed consolidated financial statements included herein have been prepared by U.S. Gold Corp. (the “Company”, “we”, “us”, or “our”) without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosure normally included in interim unaudited consolidated financial statements prepared in accordance with U.S. GAAP, which are duplicate to the disclosures in the audited consolidated financial statements have been omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto in the Form 10-K for the fiscal year ended April 30, 2024, filed with the SEC on July 29, 2024.
In the opinion of management, all adjustments have been made consisting of normal recurring adjustments and consolidating entries, necessary to present fairly the unaudited interim condensed consolidated financial position of us and our subsidiaries as of January 31, 2025, the results of our unaudited interim condensed consolidated statements of operations and changes in stockholders’ equity for the nine months ended January 31, 2025 and 2024. The results of unaudited interim condensed consolidated operations for the interim periods are not necessarily indicative of the results for the full year.
The preparation of interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Forward-Looking Statements
In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See “Forward-Looking Statements” above. Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including the risk factors described in this report and in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024.
Overview
U.S. Gold Corp., formerly known as Dataram Corporation (the “Company,” “we,” “our,” or “us”), was originally incorporated in the State of New Jersey in 1967 and was subsequently re-incorporated under the laws of the State of Nevada in 2016. Effective June 26, 2017, the Company changed its legal name to U.S. Gold Corp. from Dataram Corporation. On May 23, 2017, the Company merged with Gold King Corp. (“Gold King”), in a transaction treated as a reverse acquisition and recapitalization, and the business of Gold King became the business of the Company. We are a gold and precious metals exploration company pursuing exploration and development properties. We own certain mining leases and other mineral rights comprising the CK Gold Project in Wyoming, the Keystone Project in Nevada and the Challis Gold Project in Idaho. We have established an estimate of proven and probable mineral reserves under S-K 1300 at our CK Gold Project, where we are conducting exploration and pre-development activities, and all of our activities on our other properties are exploratory in nature.
Summary of Activities for the Three months ended January 31, 2025
During the three months ended January 31, 2025, we focused primarily on advancing our CK Gold Project in Wyoming, and investor relations and awareness through the attendance of multiple mining investment conferences.
An overview of certain significant events follows:
| ● | On November 18, 2024, we announced that our wholly-owned subsidiary, Gold King Corp., received final permit approval from the Air Quality Division of the Wyoming Department of Environmental Quality. This approval satisfies the last of the three conditions required for the recently granted Surface Gold Mine Permit for the CK Gold Project. | |
| ● | On November 27, 2024, we announced that we entered into and executed a securities purchase agreement with certain investors, providing for the purchase and sale of 1,457,700 shares of our common stock at a price of $7.00 per share and warrants to purchase 728,850 shares of our common stock at an exercise price of $9.50 per share (the “Warrants”), in a registered direct offering (the “Transaction”), resulting in total gross proceeds of approximately $10.2 million. The Warrants will be exercisable six months following their issuance and will expire three years after their initial issuance date. The Transaction closed on December 6, 2024. |
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Recent Developments
| ● | Prefeasibility Study | |
|
On February 11, 2025, we released the results of our updated Pre-feasibility Study and published our Technical Summary Report in accordance with S-K 1300. |
Results of Operations
For the three and nine months ended January 31, 2025, compared to the three and nine months ended January 31, 2024:
Net Revenues
We are a development-stage company with no operations, and we did not generate any revenues for the three and nine months ended January 31, 2025 and 2024.
Operating Expenses
Total operating expenses for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, were approximately $5,090,000 and $1,275,000, respectively. The approximate $3,815,000 increase in operating expenses for the three months ended January 31, 2025, as compared to the three months ended January 31, 2024, is comprised of (i) an increase in compensation of approximately $1,103,000 primarily due to an increase in stock-based compensation related to RSUs, DSUs and stock option grants to officers and employees during the current three-month period and annual bonus payments, (ii) an increase of approximately $554,000 in exploration expenses on our mineral properties due to the increase in exploration activities and related consulting expenses at our CK Gold property, (iii) an increase in professional and consulting fees of approximately $1,432,000 primarily due to an increase in general strategic and permitting consulting services of $526,000, an increase in stock-based consulting expenses of approximately $325,000, an increase in director fees, including stock-based director fees of approximately $591,000, an increase in legal fees of approximately $3,000, offset by a decrease in accounting fees of approximately $12,000 and a decrease in investor relation fees of approximately $1,000 and (iv) an increase in general and administrative expenses of approximately $726,000 due primarily to an increase in advertising expenses of approximately $603,000, insurance expense of approximately $76,000 and travel expenses of approximately $35,000.
Total operating expenses for the nine months ended January 31, 2025, as compared to the nine months ended January 31, 2024, were approximately $9,826,000 and $5,971,000, respectively. The approximate $3,855,000 increase in operating expenses for the nine months ended January 31, 2025, as compared to the nine months ended January 31, 2024, is comprised of (i) an increase in compensation of approximately $748,000 primarily due to an increase in stock-based compensation related to RSUs, DSUs and stock option grants to officers and employees during the current nine-month period and annual bonus payments, (ii) an increase of approximately $620,000 in exploration expenses on our mineral properties due to the increase in exploration activities and related consulting expenses at our CK Gold property, (iii) an increase in professional and consulting fees of approximately $705,000 primarily due to an increase in general strategic and permitting consulting services of $370,000, an increase in stock-based consulting expenses of approximately $239,000, an increase in director fees, including stock-based director fees, of approximately $591,000, offset by a decrease in legal fees of $28,000, a decrease in investor relation fees of $404,000 and a decrease in accounting fees of $63,000 and (iv) an increase in general and administrative expenses of approximately $1,782,000 due primarily to an increase in advertising expenses of approximately $1,596,000 and insurance expense of approximately $186,000.
Loss from Operations
We reported loss from operations of approximately $5,090,000 and $1,275,000 for the three months ended January 31, 2025 and 2024, respectively. We reported loss from operations of approximately $9,826,000 and $5,971,000 for the nine months ended January 31, 2025 and 2024, respectively.
Other Income (Loss)
We reported other income (loss) of approximately ($1,272,000) and ($410,000) for the three months ended January 31, 2025 and 2024, respectively. We reported a change in fair value of warrant liability of approximately ($1,331,000) and ($419,000) for the three months ended January 31, 2025 and 2024, respectively. We reported interest income of approximately $59,000 and $8,000 for the three months ended January 31, 2025 and 2024, respectively.
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We reported other income (loss) of approximately $(2,964,000) and $1,132,000 for the nine months ended January 31, 2025 and 2024, respectively. We reported a change in fair value of warrant liability of approximately $(3,065,000) and $1,091,000 for the nine months ended January 31, 2025 and 2024, respectively. We reported interest income of approximately $100,000 and $34,000 for the nine months ended January 31, 2025 and 2024, respectively. We reported a gain from the settlement of an asset retirement obligation of approximately $0 and $6,000, respectively, for the nine months ended January 31, 2025 and 2024, respectively.
Net Loss
We reported a net loss of approximately $6,362,000 and $1,686,000 for the three months ended January 31, 2025 and 2024, respectively. We reported a net loss of approximately $12,790,000 and $4,839,000 for the nine months ended January 31, 2025 and 2024, respectively.
Liquidity and Capital Resources
The following table summarizes total current assets, liabilities and working capital at January 31, 2025, compared to April 30, 2024, and the changes between those periods:
| January 31, 2025 | April 30, 2024 | Increase (decrease) | ||||||||||
| Current Assets | $ | 10,022,168 | $ | 6,523,111 | $ | 3,499,057 | ||||||
| Current Liabilities | $ | 800,414 | $ | 452,790 | $ | 347,624 | ||||||
| Working Capital | $ | 9,221,754 | $ | 6,070,321 | $ | 3,151,433 | ||||||
As of January 31, 2025, we had working capital of $9,221,754, as compared to working capital of $6,070,321 as of April 30, 2024, an increase of $3,151,433.
We are obligated to file annual, quarterly and current reports with the SEC pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In addition, the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”) and the rules subsequently implemented by the SEC and the Public Company Accounting Oversight Board have imposed various requirements on public companies, including requiring changes in corporate governance practices. We expect to spend between $175,000 and $250,000 in legal and accounting expenses annually to comply with our reporting obligations and Sarbanes-Oxley. These costs could affect profitability and our results of operations.
Our unaudited condensed consolidated financial statements are prepared using the accrual method of accounting in accordance with U.S. GAAP and have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. For the nine months ended January 31, 2025 and 2024, we incurred net losses in the amounts of approximately $12,790,000 and $4,838,000, respectively. For the nine months ended January 31, 2025, cash used in operating activities was approximately $7,153,000. As of January 31, 2025, we had cash of approximately $9,138,000, working capital of approximately $9,221,754, and an accumulated deficit of approximately $85,638,000. Our primary source of operating funds since inception has been equity financings. As of January 31, 2025, we may have sufficient cash to fund our corporate activities and general and administrative costs and currently undertaken project activities related to permitting and engineering studies over the next twelve months. However, in order to advance any of our projects past the aforementioned objectives, we do not have sufficient cash and will need to raise additional funds. These matters raise substantial doubt about our ability to continue as a going concern for the twelve months following the issuance of these financial statements.
Cash Used in Operating Activities
Net cash used in operating activities totaled approximately $7,153,000 and $5,186,000 for the nine months ended January 31, 2025 and 2024, respectively. Net cash used in operating activities during the nine months ended January 31, 2025, increased primarily due to the (i) increase in net loss of approximately $7,951,000 as compared to the nine months ended January 31, 2024, offset by (ii) increase in non-cash items of approximately $5,433,000 as compared to the nine months ended January 31, 2024, primarily due to the change in fair value of warrant liability and increase stock-based compensation and (iii) increase in changes in operating assets and liabilities of approximately $551,000 as compared to the nine months ended January 31, 2024, primarily due to changes in prepaid expenses and other current assets and changes in accounts payable and accrued liabilities.
Cash Used in Investing Activities
The Company used approximately $6,000 in cash for investing activities for the nine months ended January 31, 2025 for purchase of property and equipment as compared to $0 for the previous period.
Cash Provided by Financing Activities
Net cash provided by financing activities totaled approximately $10,723,000 for the nine months ended January 31, 2025 primarily due to the sale of our common stock and warrants for approximately $10,147,000 in December 2024, net of offering costs and proceeds received from the exercise of stock warrants of approximately $576,000 as compared to $0 for the previous period.
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Off-Balance Sheet Arrangements
As of January 31, 2025, we did not have, and do not have any present plans to implement, any off-balance sheet arrangements.
Recently Issued Accounting Pronouncements
See Note 2, Summary of Significant Accounting Policies, to the unaudited condensed consolidated financial statements for a summary of recently issued accounting pronouncements.
Critical Accounting Estimates
There have been no changes to our critical accounting estimates during the nine months ended January 31, 2025. Critical accounting estimates made in accordance with our significant accounting policies are regularly discussed with the Audit Committee of the Company’s board of directors. Our critical accounting estimates are discussed under “Critical Accounting Estimates” in our “Management’s Discussion and Analysis of the Financial Condition and Results of Operations” included in Item 7, and our significant accounting policies are discussed in Note 2 to our consolidated financial statements thereto, included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2024, filed with the SEC on July 29, 2024.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a smaller reporting company, we are not required to include disclosure under this item.
ITEM 4. CONTROLS AND PROCEDURES
| (a) | Evaluation of Disclosure Controls and Procedures |
At the end of the period covered by this Form 10-Q, an evaluation was carried out under the supervision of, and with the participation of, the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a–15(e) and Rule 15d–15(e) of the Exchange Act). Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Form 10-Q, the Company’s disclosure controls and procedures were effective at the reasonable assurance level, in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
| (b) | Changes in Internal Control Over Financial Reporting |
There have been no changes in our internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II: OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
From time to time, we may be involved in claims and legal actions that arise in the ordinary course of business. To our knowledge, there are no material pending legal proceedings to which we are a party or of which any of our property is the subject.
Item 1A. RISK FACTORS.
As a smaller reporting company, we are not required to include disclosure under this item.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
There were no sales of unregistered securities during the fiscal quarter ended January 31, 2025, that were not previously reported on a Current Report on Form 8-K.
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Item 3. DEFAULTS UPON SENIOR SECURITIES.
None.
Item 4. MINE SAFETY DISCLOSURES
Pursuant to Section 1503(a) of the Dodd-Frank Act and subpart 104 of Regulation S-K, issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose specified information about mine health and safety in their periodic reports. These reporting requirements are based on the safety and health requirements applicable to mines under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) which is administered by the U.S. Department of Labor’s Mine Safety and Health Administration (“MSHA”). During the nine months ended January 31, 2025, the Company and its properties or operations were not subject to regulation by MSHA under the Mine Act and thus no disclosure is required under Section 1503(a) of the Dodd-Frank Act or subpart 104 of Regulation S-K.
Item 5. OTHER INFORMATION.
Insider Trading Arrangements and Policies
During
the three months ended January 31, 2025, none of our directors or executive officers
Item 6. EXHIBITS.
EXHIBIT INDEX
| Exhibit No. | Description | |
| 31.1 | Rule 13a-14(a) Certification of Chief Executive Officer | |
| 31.2 | Rule 13a-14(a) Certification of Chief Financial Officer | |
| 32.1* | Section 1350 Certification of Chief Executive Officer (Furnished not Filed) | |
| 32.2* | Section 1350 Certification of Chief Financial Officer (Furnished not Filed) | |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Furnished herewith
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| U.S. GOLD CORP. | ||
| Date: March 17, 2025 | By: | /s/ George M. Bee |
| George M. Bee | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| Date: March 17, 2025 | By: | /s/ Eric Alexander |
Eric Alexander Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) | ||
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Exhibit 31.1
Rule 13a-14(a) Certification
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, George M. Bee, certify that:
1. I have reviewed this quarterly report on Form 10-Q of U.S. Gold Corp.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: March 17, 2025 | /s/ George M. Bee |
| George M. Bee, | |
| Chief Executive Officer | |
| (Principal Executive Officer) |
Exhibit 31.2
Rule 13a-14(a) Certification
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Eric Alexander, certify that:
1. I have reviewed this quarterly report on Form 10-Q of U.S. Gold Corp.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
| Date: March 17, 2025 | /s/ Eric Alexander |
Eric Alexander Chief Financial Officer | |
| (Principal Financial and Accounting Officer) |
Exhibit 32.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
In connection with the Quarterly Report of U.S. Gold Corp., a Nevada corporation (the “Company”), on Form 10-Q for the fiscal quarter ended January 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), George M. Bee, Chief Executive Officer of the Company, does hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: March 17, 2025 | /s/ George M. Bee |
| George M. Bee | |
| Chief Executive Officer | |
| (Principal Executive Officer) |
[A signed original of this written statement required by Section 906 has been provided to U.S. Gold Corp. and will be retained by U.S. Gold Corp. and furnished to the Securities and Exchange Commission or its staff upon request.]
Exhibit 32.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
In connection with the Quarterly Report of U.S. Gold Corp., a Nevada corporation (the “Company”), on Form 10-Q for the fiscal quarter ended January 31, 2025, as filed with the Securities and Exchange Commission (the “Report”), Eric Alexander, Principal Financial and Accounting Officer of the Company, does hereby certify, pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), that to his knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
| Date: March 17, 2025 | /s/ Eric Alexander |
| Eric Alexander | |
Chief Financial Officer (Principal Financial and Accounting Officer) |
[A signed original of this written statement required by Section 906 has been provided to U.S. Gold Corp. and will be retained by U.S. Gold Corp. and furnished to the Securities and Exchange Commission or its staff upon request.]