United States Antimony (UAMY) - 2025 Q1 - Quarterly Report

PART I Financial Statements For the first quarter of 2025, United States Antimony Corporation reported a significant financial turnaround, shifting from a net loss to a net income of $546,524, driven by a 128% year-over-year revenue increase to $7.0 million Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $39.5 million from $34.6 million at year-end 2024, primarily due to growth in cash, accounts receivable, and a significant rise in inventories Balance Sheet Highlights | Balance Sheet Highlights | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $24,838,415 | $20,678,569 | | Inventories | $3,991,111 | $1,245,724 | | Total Assets | $39,496,778 | $34,642,602 | | Total Current Liabilities | $4,718,226 | $4,006,389 | | Total Liabilities | $6,905,442 | $6,041,929 | | Total Stockholders' Equity | $32,591,336 | $28,600,673 | Condensed Consolidated Statements of Operations The company achieved a significant turnaround in Q1 2025, reporting a net income of $546,524, compared to a net loss of $322,768 in Q1 2024, driven by a 128% surge in revenues to $7.0 million and a 302% increase in gross profit to $2.4 million Income Statement Highlights | Income Statement Highlights | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $7,000,005 | $3,072,067 | | Gross Profit | $2,371,730 | $589,485 | | Income (Loss) from Operations | $357,992 | ($470,454) | | Net Income (Loss) | $546,524 | ($322,768) | Condensed Consolidated Statements of Cash Flows In Q1 2025, the company experienced a net cash usage of $1.7 million from operating activities, largely due to a $2.7 million increase in inventories, offset by a strong inflow of $3.2 million from financing activities, resulting in a net increase in cash of $0.6 million Cash Flow Summary | Cash Flow Summary | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | ($1,729,291) | $65,027 | | Net Cash Used in Investing Activities | ($862,011) | ($2,031) | | Net Cash Provided by (Used in) Financing Activities | $3,166,123 | ($21,273) | | Net Increase in Cash | $574,821 | $41,723 | Notes to Condensed Consolidated Financial Statements The notes detail the company's operations, accounting policies, and key financial components, highlighting significant revenue growth, inventory build-up, strategic acquisitions, and substantial financing activities including a new line of credit and expansion plans - The company sells antimony, zeolite, and precious metals, expanding its portfolio in 2024 and 2025 by acquiring mining claims in Alaska and Ontario, Canada, and leasing a metals concentration facility in Montana[13] Revenue by Product (Q1 2025 vs Q1 2024) | Revenue by Product (Q1 2025 vs Q1 2024) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Antimony | $5,925,848 | $2,469,062 | | Zeolite | $1,094,696 | $603,005 | | Total Revenues | $7,000,005 | $3,072,067 | - In Q1 2025, the company raised capital through the sale of 1,107,923 shares in an "at the market offering" for gross proceeds of $2.44 million and issued 948,750 shares from warrant exercises for proceeds of $806,438[53][65] - Subsequent to quarter-end, in April 2025, the company secured a $5 million line of credit and executed a contract with WSP USA Inc. for the expansion of its Thompson Falls, Montana smelting operations, with estimated capital expenditures under $15 million[73][75] Management's Discussion and Analysis (MD&A) Management attributes the strong Q1 2025 performance to a significant increase in the average sales price for antimony and higher sales volume for zeolite, with $18.7 million in cash and equivalents supporting liquidity and growth initiatives Results of Operations The company's operational performance improved dramatically in Q1 2025, with Antimony segment revenue increasing by 140% to $5.9 million due to a 232% rise in average sales price, and Zeolite segment revenue growing 82% to $1.1 million from increased volume and price Antimony Segment Performance | Antimony Segment Performance | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $5,925,848 | $2,469,062 | 140% | | Gross Profit | $2,423,616 | $907,978 | 167% | | Pounds Sold | 362,647 | 502,046 | (28%) | | Avg. Sales Price / lb | $16.34 | $4.92 | 232% | Zeolite Segment Performance | Zeolite Segment Performance | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1,094,696 | $603,005 | 82% | | Gross Profit (Loss) | $179,086 | ($292,833) | 161% | | Tons Sold | 3,802 | 2,273 | 67% | | Avg. Sales Price / ton | $288 | $265 | 9% | Capital Resources and Liquidity The company's liquidity position strengthened, with working capital increasing to $20.1 million, supported by $3.2 million in financing activities, and management believes its $18.7 million in cash and equivalents is sufficient for the next 12 months - Working capital increased to $20.1 million at March 31, 2025, from $16.7 million at December 31, 2024[111] - Net cash from financing activities in Q1 2025 was $3,166,123, driven by proceeds from stock sales ($2,392,317) and warrant exercises ($806,438)[113] - The company had cash and cash equivalents of $18,746,429 as of March 31, 2025, and believes these funds are sufficient to cover requirements for the next 12 months[117] Controls and Procedures Management concluded that the company's disclosure controls and procedures were not effective as of the end of the quarter due to material weaknesses from the small accounting staff, with remediation efforts underway including new management hires - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025[119] - The ineffectiveness is attributed to material weaknesses due to the small size of the accounting staff[120] - Remediation efforts include hiring a management-level employee for Sarbanes-Oxley compliance and another for SEC reporting in April 2025[120] PART II Risk Factors The company highlights several key risks, including potential adverse impacts from U.S. trade policy changes, the economic viability of mining exploration given properties lack defined mineral reserves, and the risk that processing ore from new sources may not be profitable - Changes in U.S. trade policies, including tariffs, could adversely impact the business by increasing costs and reducing demand[132] - A significant risk is that the company's properties do not contain mineral reserves as defined by S-K 1300, which increases the uncertainty and risk of economic and technical failure[132] - The company faces the risk that processing and selling ore from new suppliers and its own internal sources may not be economically viable[132] Other Information Items (Legal, Securities, Mine Safety) The company confirms it is not a party to any material legal proceedings, reports no recent sales of unregistered securities or defaults on senior securities, and provides mine safety disclosures in Exhibit 95 of the report - The company is not a party to any material legal proceedings[123] - There were no recent sales of unregistered securities or defaults upon senior securities[126][127] - Mine safety disclosures required by the Dodd-Frank Act are included in Exhibit 95 to the report[128]