Solitario(US:XPL)2023-11-08 21:42Financial Performance - Net loss for the three months ended September 30, 2023, was $1,292,000, compared to a net loss of $1,057,000 for the same period in 2022, representing a 22.2% increase in losses[19]. - The company reported a basic and diluted loss per common share of $0.02 for the three months ended September 30, 2023, unchanged from the same period in 2022[19]. - The company reported a net loss of $1,292,000 or $0.02 per share for Q3 2023, compared to a net loss of $1,057,000 or $0.02 per share in Q3 2022[14]. - For the nine months ended September 30, 2023, the net loss was $2,712,000 or $0.04 per share, an improvement from a net loss of $3,262,000 or $0.05 per share in the same period of 2022[86]. Assets and Liabilities - Total assets as of September 30, 2023, increased slightly to $22,111,000 from $22,034,000 as of December 31, 2022, reflecting a growth of 0.35%[13][16]. - Current liabilities rose to $327,000 from $263,000, marking an increase of 24.4%[15]. - Total shareholders' equity slightly decreased to $21,599,000 from $21,646,000, a reduction of 0.22%[16]. - Cash and cash equivalents decreased to $168,000 as of September 30, 2023, down from $316,000 at the beginning of the period, a decline of 47%[20]. - Cash and short-term investments totaled $4,132,000 as of September 30, 2023, with $1,391,000 in USTS and $2,573,000 in a money market account[95]. - Working capital was $4,952,000 as of September 30, 2023, slightly down from $4,991,000 at the end of 2022, indicating sufficient liquidity for expected expenditures[97]. Exploration and Expenses - Exploration expenses for the nine months ended September 30, 2023, totaled $1,748,000, a decrease of 4.6% from $1,832,000 in the same period of 2022[19]. - Exploration expenses for Q3 2023 totaled $918,000, an increase of 40% from $655,000 in Q3 2022; total exploration costs for the nine months ended September 30, 2023, were $1,748,000, down from $1,832,000 in the same period of 2022[37]. - The company budgeted approximately $2,000,000 for full-year exploration expenditures in 2023, expecting to exceed 2022's exploration expenditures[76]. - Net exploration expense decreased to $1,748,000 for the nine months ended September 30, 2023, down from $1,832,000 for the same period in 2022, primarily due to reduced expenditures at the Lik project and reconnaissance exploration[87]. Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2023, was $2,684,000, compared to $1,948,000 for the same period in 2022, indicating a 37.7% increase in cash outflow[20]. - Net cash used in operations increased to $2,684,000 for the nine months ended September 30, 2023, compared to $1,948,000 in the same period of 2022, primarily due to pre-payment to a joint venture partner and increased administrative expenses[103]. - The company anticipates continued use of funds from operations through the remainder of 2023, primarily for exploration activities related to the Golden Crest and Lik projects[103]. Shareholder Equity and Stock Options - Shareholders' equity as of September 30, 2023, totaled $21,599,000, with a net loss of $1,292,000 for the quarter[61]. - The 2023 Solitario Stock and Incentive Plan reserves 5,000,000 shares for awards, with no awards granted as of September 30, 2023[55]. - As of September 30, 2023, there were options outstanding under the 2013 Plan for 5,195,000 shares, with an intrinsic value of $765,000[56]. - During the nine months ended September 30, 2023, Solitario recorded stock option compensation expense of $184,000, down from $271,000 in the same period of 2022[60]. Marketable Securities and Investments - Marketable equity securities at fair value increased to $910,000 as of September 30, 2023, from $949,000 at December 31, 2022, with a cumulative unrealized loss of $491,000[41]. - During the nine months ended September 30, 2023, Solitario sold no marketable equity securities, while realizing a net loss of $141,000 in Q3 2023[41][42]. - The company recorded a non-cash unrealized loss on marketable equity securities of $141,000 in Q3 2023, compared to an unrealized gain of $13,000 in Q3 2022[79]. - An unrealized loss on marketable equity securities was recorded at $39,000 for the nine months ended September 30, 2023, compared to a loss of $142,000 in the same period of 2022[90]. Private Placements and Financing - On July 31, 2023, Solitario completed a private placement of 4,166,667 shares at $0.60 per share, resulting in net proceeds of $2,422,000[63]. - On October 13, 2023, Solitario completed a private placement of 8,631,818 shares at $0.55 per share, generating total net proceeds of $4,747,500[66]. - The company received net proceeds of $2,422,000 from a private placement to Newmont during the nine months ended September 30, 2023, compared to $2,023,000 from the issuance of common stock under the ATM Program in the same period of 2022[106]. General and Administrative Costs - General and administrative costs decreased to $282,000 in Q3 2023 from $435,000 in Q3 2022, with a notable reduction in salaries and benefits[14]. - General and administrative costs increased to $889,000 during the nine months ended September 30, 2023, compared to $828,000 in the same period of 2022, driven by higher salary and benefit expenses[88]. Other Financial Information - A valuation allowance fully offsets Solitario's net deferred tax assets as of September 30, 2023, indicating uncertainty in realizing these assets[51]. - The company did not record any mineral property write-downs during the three and nine months ended September 30, 2023 and 2022[111]. - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2023[124].