U.S. GoldMining (USGO) - 2024 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2024, the net loss was $1,487,203 ($0.12 per share), a decrease of $1,432,115 compared to a net loss of $2,919,318 ($0.25 per share) for the same period in 2023[75]. - The net loss for the six months ended June 30, 2024, was $2,449,652 ($0.20 per share), compared to a net loss of $3,943,579 ($0.36 per share) for the same period in 2023, reflecting a decrease of 37.9%[82]. - General and administrative expenses decreased to $653,110 for the three months ended June 30, 2024, from $2,426,591 in the same period of 2023, a reduction of $1,773,481[75]. - General and administrative expenses for the six months ended June 30, 2024, were $1,316,011, down from $3,317,871 in the same period of 2023, a decrease of 60.3%[84]. - Net cash used in operating activities during the six months ended June 30, 2024, was $2,819,802, a decrease from $4,440,947 in the same period of 2023[89]. - Net cash provided by financing activities during the six months ended June 30, 2024, was $6,985, significantly lower than $21,235,524 in the same period of 2023[92]. Exploration and Development - Exploration expenses for the three months ended June 30, 2024, totaled $923,403, an increase of $302,083 from $621,320 in the same period of 2023[76]. - Exploration expenses for the six months ended June 30, 2024, increased to $1,337,900 from $746,525 in the same period of 2023, an increase of 79.0%[83]. - The best intercept of continuous mineralization at the Whistler Project was recorded at 547 meters with a grade of 1.06 grams per tonne gold equivalent[72]. - The company completed four confirmatory drill holes totaling 2,234 meters by mid-November 2023 during the Phase 1 Drilling Program[70]. - The company plans to focus on additional confirmatory infill and step-out drilling within the Whistler and Raintree West deposits during the 2024 field season[73]. - A work order totaling $3,500,000 has been approved for an exploration program for the Whistler Project, with an option for additional expenditures up to $2,000,000 for the period of January 1, 2024, to December 31, 2024[96]. Assets and Liabilities - As of June 30, 2024, cash and cash equivalents were $8,220,444, down from $11,203,893 as of December 31, 2023, a decrease of 26.5%[87]. - Total assets as of June 30, 2024, were $10,498,891, compared to $12,776,013 as of December 31, 2023, a decrease of 17.9%[85]. - The company has a 1.0% net smelter return royalty obligation on the Whistler Project to Gold Royalty Corp[94]. - The company has a 2.75% NSR royalty obligation over the Whistler Project area as per a prior agreement with MF2, LLC[95]. Ownership and Corporate Structure - The company has a 79.7% ownership by GoldMining Inc., which holds 9,878,261 shares of common stock[67]. - The fiscal year end was changed from November 30 to December 31, effective January 1, 2024[69]. Other Financial Information - The company did not sell any shares under the At-The-Market Program during the six months ended June 30, 2024[74]. - The company recorded depreciation expenses of $54,721 for the six months ended June 30, 2024, compared to nil for the same period in 2023[85]. - Net cash used in investing activities during the six months ended June 30, 2024, was $171,836, compared to $679,705 in the same period of 2023[91]. - The company is required to make annual land payments of $230,605 starting in 2024 to maintain the Whistler Project in good standing[93]. - An annual labor requirement of $135,200 is also mandated for 2024 and thereafter, with excess labor carry forwards of $167,674 expiring in 2026 and $1,766,156 expiring in 2027[93]. - The company has outstanding stock options to purchase 181,550 shares at an exercise price of $10 per share and warrants to purchase 1,741,292 shares at an exercise price of $13 per share[99]. - For the six months ended June 30, 2024, the company incurred $139,513 in general and administrative costs paid to Blender Media Inc.[97]. - Share-based compensation costs for the three and six months ended June 30, 2024, were $2,109 and $5,100, respectively[98]. - The company repaid GoldMining $1,680,925 in May 2023, representing the full amount of the outstanding loan at that time[97]. Regulatory and Compliance - Management is currently evaluating the impact of new accounting standards and climate disclosure rules on the financial statements[107][110].