United States Antimony (UAMY) - 2024 Q2 - Quarterly Report

Company Operations and Subsidiaries - The Company plans to sell its USAMSA subsidiary, which was shut down on March 11, 2024, and is actively seeking buyers for its operations and/or assets[72] - The Company has initiated an active search for buyers of its USAMSA operations and/or assets following the shutdown of its processing plants in Mexico[80] - The Company plans to sell its USAMSA subsidiary, which has generated cumulative losses since inception, to improve cash flow[105] Market Position and Products - The Company estimates its current share of the domestic market for antimony oxide products is approximately 4% and less than 1% in the international market[79] - The Company has the only operating, permitted antimony smelter located in the U.S., which enhances its competitive position[80] - The zeolite produced by the Company is regarded as one of the best in the world due to its high cation exchange capacity (CEC) of approximately 180-220 meq/100 gr[83] - The Company has a reputation for quality products delivered on a timely basis, which supports its competitive edge in the market[79] Financial Performance - Revenues for the three months ended June 30, 2024, increased to $2,813,780 from$2,265,117 for the same period in 2023, representing a growth of 24.2%[87] - Antimony revenue for the six months ended June 30, 2024, was $4,043,163, up$1,078,819 or 36.4% compared to $2,964,344 in the same period of 2023[89] - Gross profit for antimony for the six months ended June 30, 2024, increased by$1,585,030, reaching $1,980,802, a 400.5$395,772 in the prior year[90] - Zeolite revenue for the six months ended June 30, 2024, was $1,597,391, an increase of$328,207 or 25.9% compared to $1,269,184 in the same period of 2023[92] - Precious metals revenue for the three months ended June 30, 2024, dropped to$4,616 from $126,321 in the same period of 2023, a decline of 96.3$5.22 for the three months ended June 30, 2024, compared to $4.85 in the same period of 2023[88] - Total assets as of June 30, 2024, were$22,434,861, an increase from $21,547,455 as of December 31, 2023[88] - The company reported a loss from operations of$213,604 for the three months ended June 30, 2024, compared to a loss of $197,335 in the same period of 2023[87] - Average gross profit per pound of antimony increased to$2.47 for the three months ended June 30, 2024, from $0.50 in the same period of 2023, a rise of 390.6$(39,538,595) as of June 30, 2024, from $(39,418,619) as of December 31, 2023[88] - EBITDA from continuing operations for the six months ended June 30, 2024, was$253,122, down from $431,257 for the same period in 2023[96] - Antimony revenue for the three months ended June 30, 2024, increased by 34.3$1,814,778 compared to $1,351,705 in 2023[96] - Gross profit for Antimony segment improved significantly to$859,211, a 511.0% increase from the previous year[96] - Zeolite revenue for the three months ended June 30, 2024, was $994,386, reflecting a 26.3$787,091 in 2023[97] - Consolidated revenue for the six months ended June 30, 2024, was $2,813,780, up 24.2$2,265,117 in 2023[98] - Antimony segment's income from operations for the six months ended June 30, 2024, was $304,504, a turnaround from a loss of$307,430 in 2023[100] - EBITDA for the Antimony segment for the six months ended June 30, 2024, was $657,985, a 480.2$113,397 in 2023[100] - Zeolite segment reported an operating loss of $579,761 for the six months ended June 30, 2024, compared to a loss of$40,753 in 2023, indicating a significant decline[100] - Total operating expenses for the Antimony segment increased by 138.4% to $1,676,298 for the six months ended June 30, 2024[100] - The company reported a consolidated net loss of$55,704 for the six months ended June 30, 2024, compared to a loss of $23,032 in 2023, representing a 141.9$5,645,170 compared to $4,475,961 for the same period in 2023[101] - Gross profit for the six months ended June 30, 2024, was$1,731,545, a 121.6% increase from $781,402 in the prior year[101] - Operating income loss for the six months ended June 30, 2024, was$(282,350), worsening by 140.4% from $(117,459) in 2023[101] - Net cash provided by operating activities improved by$1,604,091 for the six months ended June 30, 2024, totaling $435,663 compared to$(1,168,428) in 2023[103] - Cash flow used by investing activities improved by $1,095,495 for the six months ended June 30, 2024, totaling$(100,039) compared to $(1,195,534) in 2023[104] - As of June 30, 2024, the company had cash and cash equivalents of$12,391,431, which is expected to cover cash requirements for the next 12 months[107] - Working capital increased to $13,454,756 as of June 30, 2024, up from$12,963,081 at December 31, 2023[102] - Interest expense decreased by 67.6% to $2,092 for the six months ended June 30, 2024, down from$6,450 in the prior year[101] - Depreciation and amortization increased by 42.8% to $220,633 for the six months ended June 30, 2024, compared to$154,458 in 2023[101] Internal Controls and Legal Matters - The Company identified material weaknesses in its internal controls due to the small size of its accounting staff, which may hinder adequate controls in the future[108] - No changes occurred in the Company's internal controls over financial reporting during the quarter ended June 30, 2024, that materially affected internal controls[109] - The Company is not involved in any material legal proceedings, and no significant legal issues were reported as of June 30, 2024[110] Regulatory Compliance and Safety - The Company aims to achieve excellence in mine safety and health performance while ensuring compliance with environmental regulations and health and safety standards[74] - During the six months ended June 30, 2024, Bear River Zeolite Company received four significant citations from MSHA, all of which have been rectified[111]