Paramount Gold Nevada(PZG) - 2025 Q3 - Quarterly Report

PART I FINANCIAL INFORMATION Financial Statements Unaudited interim financials show decreased assets, increased net losses, and reduced cash, raising going concern doubts Condensed Consolidated Interim Balance Sheets Total assets decreased to $52.6 million from $56.4 million, driven by reduced cash, with equity declining Balance Sheet Summary | | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Current Assets | $2,843,630 | $6,742,802 | | Total Assets | $52,619,457 | $56,361,612 | | Total Current Liabilities | $661,422 | $683,806 | | Total Liabilities | $18,580,027 | $18,206,172 | | Total Stockholders' Equity | $34,039,430 | $38,155,440 | Condensed Consolidated Interim Statements of Operations Net loss increased to $2.62 million for the quarter and $6.22 million for nine months, driven by higher interest expense Statements of Operations Summary | | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Expenses | $2,196,170 | $2,201,155 | $4,819,726 | $6,842,486 | | Net Loss | $2,618,307 | $1,814,045 | $6,221,934 | $5,462,764 | | Basic and diluted EPS | $0.04 | $0.03 | $0.09 | $0.09 | Condensed Consolidated Interim Statements of Stockholders' Equity Stockholders' equity declined to $34.04 million due to a $6.22 million net loss, partially offset by financing - The number of common shares issued and outstanding increased from 65,044,305 at June 30, 2024, to 70,874,776 at March 31, 2025, due to shares issued for financing, payment of interest, and stock-based compensation[16] Condensed Consolidated Interim Statement of Cash Flows Net cash used in operations was $3.56 million, resulting in a $3.28 million decrease in cash, ending at $2.14 million Statement of Cash Flows Summary | | Nine Months Ended March 31, 2025 | Nine Months Ended March 31, 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(3,564,009) | $(3,064,814) | | Cash used in investing activities | $(159,098) | $(100,000) | | Cash provided by financing activities | $439,564 | $9,352,259 | | Change in cash during period | $(3,283,543) | $6,187,445 | | Cash at end of period | $2,139,516 | $7,012,365 | Notes to Condensed Consolidated Interim Financial Statements Notes detail business, going concern doubt due to losses, and specifics on debenture, fair value, and mineral costs - The company has not generated revenue and has incurred losses since inception. Management has concluded there is substantial doubt about the Company's ability to continue as a going concern for twelve months after the financial statements are issued[26][27][30] - In December 2023, the company closed a $15 million Secured Royalty Convertible Debenture with Sprott, bearing 10% annual interest. The debenture is convertible into a 4.75% gross revenue royalty on the Grassy Mountain Gold Mine[58] Mineral Property Costs | Mineral Property | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Sleeper and other Nevada based Projects | $25,783,685 | $25,733,685 | | Grassy Mountain and other Oregon based Projects | $23,435,728 | $23,335,728 | | Total | $49,219,413 | $49,069,413 | - The company has an obligation to Seabridge Gold Inc., which holds a put option to sell its Net Profit Interest (NPI) in the Grassy Mountain Project to Paramount for C$10 million upon a positive production decision[80] Management's Discussion and Analysis of Financial Condition and Results of Operations MD&A details increased net losses, decreased reclamation expenses, and significant liquidity concerns, reiterating going concern risk - A key operational highlight was the approval of the Environmental Evaluation (EE) for the Grassy Mountain project by Oregon's Technical Review Team, which initiated a 225-day timeline for the state to draft permits[87] Net Loss Comparison | Period | Net Loss (2025) | Net Loss (2024) | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended Mar 31 | $2,618,307 | $1,814,045 | +44% | | Nine Months Ended Mar 31 | $6,221,934 | $5,462,764 | +14% | - Reclamation expenses for the nine months ended March 31, 2025, decreased by 97% to $84,550 from $2,469,126 in the prior year, as a one-time pond conversion project was substantially completed[96] - As of March 31, 2025, the company had cash of $2,139,516 and working capital of approximately $2,182,208. It continues to utilize its 'at the market' (ATM) equity offering program to raise capital, generating net proceeds of $439,564 during the nine-month period[106][107] - Anticipated cash expenditures for the next twelve months include $3 million for corporate and maintenance costs and a discretionary $2.5 million for Grassy Mountain permitting, subject to available cash[112] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as the company qualifies as a smaller reporting company - The company is a smaller reporting company and is not required to provide the information under this item[123] Controls and Procedures Management concluded disclosure controls and procedures were effective with no material changes in internal control - Management evaluated the effectiveness of disclosure controls and procedures and determined they were effective as of the end of the period covered by the report[124] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[125] PART II OTHER INFORMATION Risk Factors No material changes to risk factors were reported from the Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the Annual Report on Form 10-K for the year ended June 30, 2024[128] Mine Safety Disclosures This section is not applicable to the company for this reporting period - This item is not applicable[130] Exhibits This section indexes exhibits, including CEO/CFO certifications and Inline XBRL financial data files - The exhibits filed with this report include: * Certifications from the CEO and CFO pursuant to Sarbanes-Oxley Sections 302 and 906 * Inline XBRL Instance Document and related taxonomy files[133] Signatures