U.S. GoldMining (USGO) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, the company recorded a net loss of $4,345,749 (or $0.35 per share), compared to a net loss of $3,160,702 (or $0.25 per share) for the same period in 2023, reflecting an increase in exploration costs [103]. - For the nine months ended September 30, 2024, the net loss was $6,795,401, a decrease of $308,880 compared to a net loss of $7,104,281 for the same period in 2023 [110]. Exploration Activities - Exploration expenses for the three months ended September 30, 2024, totaled $3,911,335, up from $2,506,032 in the same period of 2023, primarily due to the ongoing exploration program at the Whistler Project [105]. - The company completed four confirmatory drill holes totaling 2,234 meters in the 2023 Phase 1 Drilling Program at the Whistler Project, which was paused for winter break [94]. - Initial results from the 2023 drilling program confirmed a high-grade core at the Whistler deposit, with the best intercept being 547 meters at 1.06 grams per tonne (g/t) gold equivalent (AuEq) [95]. - The 2024 exploration program aims to further delineate and extend areas of high-grade mineralization at the Whistler Project, with drilling recommencing on June 27, 2024 [98]. - The company announced an updated mineral resource estimate for the Whistler Project, which included a 117% increase in indicated classified resources [100]. - The company plans to continue its exploration activities and is focused on obtaining necessary operational and environmental licenses for the Whistler Project [84]. Expenses and Cash Flow - General and administrative expenditures for the three months ended September 30, 2024, were $477,869, a decrease from $822,730 in the same period of 2023 [106]. - Exploration expenses for the nine months ended September 30, 2024, totaled $5,249,235, an increase of $1,996,678 from $3,252,557 in the same period of 2023 [111]. - General and administrative expenses decreased to $1,793,880 for the nine months ended September 30, 2024, down from $4,140,601 in the same period of 2023, a reduction of $2,346,721 [113]. - Depreciation expenses increased to $90,157 for the nine months ended September 30, 2024, compared to $12,743 for the same period in 2023, an increase of $77,414 [114]. - As of September 30, 2024, cash and cash equivalents were $4,401,101, down from $11,203,893 as of December 31, 2023 [116]. - Current liabilities increased to $665,859 as of September 30, 2024, compared to $475,378 as of December 31, 2023 [119]. - Net cash used in operating activities during the nine months ended September 30, 2024, was $6,640,446, a decrease from $6,903,791 in the same period of 2023 [123]. - Net cash used in investing activities was $171,835 for the nine months ended September 30, 2024, compared to $979,523 in the same period of 2023 [125]. - Net cash provided by financing activities was $10,202 for the nine months ended September 30, 2024, significantly lower than $21,267,418 in the same period of 2023 [126]. Agreements and Obligations - The company filed a shelf registration statement covering the offering of up to $40 million in various securities, including common stock, and entered into an At The Market Offering Agreement for the sale of up to $5.5 million in common stock [101]. - As of September 30, 2024, the company had not sold any shares under the At The Market Program, but subsequently sold 45,699 shares for gross proceeds of $476,609 [102]. - The company is required to make annual land payments of $230,605 in 2024 to keep the Whistler Project in good standing [127]. - The company entered into an agreement with Equity Geoscience for the Whistler Project, with an approved work order totaling $3,500,000 and an option for additional expenditures up to $2,000,000 for 2024 [131]. - As of September 30, 2024, the company has paid $4,900,000 towards the approved work order [131]. Shareholder Information - As of the date of the report, the company has 12,444,608 shares of Common Stock outstanding, with stock options for 185,550 shares at an exercise price of $10 and Warrants for 1,741,092 shares at an exercise price of $13 [138]. Regulatory and Compliance - The company is evaluating the impact of recently issued accounting standards updates, including ASU 2023-07 and ASU 2023-09, which will enhance segment disclosures and income tax disclosures, respectively [147][148]. - The company has not entered into any contracts or obligations with related parties other than those described in the report [136]. - The company continues to evaluate the benefits of relying on exemptions under the JOBS Act, which allows for reduced reporting requirements as an emerging growth company [151]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [152].