HYCROFT MNG.HLDG.EQ. WARRT(HYMCZ) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides comprehensive financial data, including statements and detailed notes, offering insights into the company's financial position, performance, and cash flows ITEM 1. FINANCIAL STATEMENTS This section presents the unaudited condensed consolidated financial statements for Hycroft Mining Holding Corporation, including the balance sheets, statements of operations, cash flows, and stockholders' deficit, along with detailed notes explaining significant accounting policies, financial instrument components, debt, equity, and other financial commitments Condensed Consolidated Balance Sheets This statement provides a snapshot of the company's assets, liabilities, and stockholders' deficit at specific points in time Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets: | | | | Cash and cash equivalents | $68,768 | $49,560 | | Current assets | $74,797 | $54,600 | | Total assets | $162,147 | $140,135 | | Liabilities: | | | | Current liabilities | $2,899 | $5,794 | | Total liabilities | $177,406 | $173,550 | | Stockholders' deficit: | | | | Total stockholders' deficit | $(15,259) | $(33,415) | | Total liabilities and stockholders' deficit | $162,147 | $140,135 | - Total assets increased by $22.012 million from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents[14] - Total stockholders' deficit improved from $(33.415) million at December 31, 2024, to $(15.259) million at June 30, 2025[14] Unaudited Condensed Consolidated Statements of Operations This statement details the company's revenues, expenses, and net loss over specific reporting periods Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating expenses: | | | | | | General and administrative costs | $3,478 | $3,906 | $6,411 | $6,820 | | Mine site costs | $2,673 | $2,488 | $5,153 | $5,072 | | Exploration and development costs | $2,344 | $5,053 | $5,343 | $9,956 | | Depreciation and amortization | $498 | $567 | $1,032 | $1,183 | | Asset retirement obligation adjustments and accretion expense | $333 | $2,267 | $666 | $4,491 | | Gain on asset sales | $(11) | $(3,751) | $(68) | $(5,060) | | Loss from operations | $(9,315) | $(10,530) | $(18,537) | $(22,462) | | Non-operating income and (expense): | | | | | | Interest income | $687 | $1,058 | $1,400 | $2,353 | | Other income (loss) | $370 | $(490) | $507 | $(483) | | Interest expense | $(3,479) | $(3,218) | $(6,866) | $(13,338) | | Net loss | $(11,737) | $(13,180) | $(23,496) | $(33,930) | | Loss per share: Basic and diluted | $(0.43) | $(0.57) | $(0.89) | $(1.55) | | Weighted average shares outstanding: Basic and diluted | 27,584,548 | 22,983,276 | 26,273,721 | 21,903,372 | - Net loss for the six months ended June 30, 2025, decreased to $23.496 million from $33.930 million in the prior year period[16] - Loss per share improved to $(0.89) for the six months ended June 30, 2025, compared to $(1.55) for the same period in 2024[16] Unaudited Condensed Consolidated Statements of Cash Flows This statement summarizes the cash inflows and outflows from operating, investing, and financing activities Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,718) | $(20,331) | | Net cash (used in) provided by investing activities | $(329) | $1,268 | | Net cash provided by (used in) financing activities | $40,759 | $(28,004) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $21,712 | $(47,067) | | Cash, cash equivalents, and restricted cash, end of period | $98,769 | $85,483 | - Net cash provided by financing activities significantly increased to $40.759 million for the six months ended June 30, 2025, compared to cash used of $28.004 million in the prior year, primarily due to proceeds from common stock issuance[19] - Cash, cash equivalents, and restricted cash increased by $21.712 million to $98.769 million at June 30, 2025, from $77.057 million at the beginning of the period[19] Unaudited Condensed Consolidated Statements of Stockholders' Deficit This statement outlines changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit Unaudited Condensed Consolidated Statements of Stockholders' Deficit (in thousands, except share amounts) | | Shares (June 30, 2025) | Amount (June 30, 2025) | Additional Paid-in Capital (June 30, 2025) | Accumulated Deficit (June 30, 2025) | Total Stockholders' Deficit (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | 24,875,587 | $21 | $752,630 | $(786,066) | $(33,415) | | Issuance of common stock | 12,608,072 | $1 | $40,487 | — | $40,488 | | Stock-based compensation costs | — | — | $1,164 | — | $1,164 | | Net loss | — | — | — | $(23,496) | $(23,496) | | Balance at June 30, 2025 | 37,838,479 | $22 | $794,281 | $(809,562) | $(15,259) | | | | | | | | | Balance at January 1, 2024 | 20,736,612 | $21 | $737,810 | $(725,175) | $12,656 | | Issuance of common stock | 2,992,547 | — | $10,058 | — | $10,058 | | Stock-based compensation costs | — | — | $1,480 | — | $1,480 | | Net loss | — | — | — | $(33,929) | $(33,929) | | Balance at June 30, 2024 | 24,022,151 | $21 | $749,353 | $(759,104) | $(9,730) | - Total stockholders' deficit improved from $(33.415) million at January 1, 2025, to $(15.259) million at June 30, 2025, primarily due to common stock issuance[20] - Shares issued and outstanding increased significantly from 24,875,587 at January 1, 2025, to 37,838,479 at June 30, 2025[20] Notes to Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for Hycroft Mining Holding Corporation, including the balance sheets, statements of operations, cash flows, and stockholders' deficit, along with detailed notes explaining significant accounting policies, financial instrument components, debt, equity, and other financial commitments 1. Company Overview This note provides background information on Hycroft Mining Holding Corporation, its operations, and recent strategic initiatives - Hycroft Mining Holding Corporation is a U.S.-based gold and silver exploration and development company focused on the Hycroft Mine in Nevada[23] - The Company discontinued mining operations in November 2021 due to cost pressures and is currently prioritizing exploration drilling, technical studies, and strategic initiatives to determine the optimal processing method for sulfide ores[24] - In June 2025, the Company completed a public offering of 12,500,000 Units (common stock and warrants), generating net proceeds of $40.7 million for exploration, working capital, and general corporate purposes[26][27] 2. Summary of Significant Accounting Policies This note describes the key accounting principles and estimates used in preparing the financial statements - The financial statements are prepared in accordance with U.S. GAAP and SEC rules, with certain information condensed or omitted for interim reporting[28] - Management's estimates and assumptions are critical for areas like long-lived asset useful life, mining plans, environmental costs, and fair value measurements[31] - No impairment was deemed necessary for long-lived assets as of June 30, 2025, based on a market-based fair value approach[35] 3. Prepaids and Deposits This note details the components and changes in the company's prepaid expenses and deposits Components of Prepaids and Deposits (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaids and deposits, current: | | | | Surety bond fees | $1,320 | $553 | | Insurance | $1,244 | $1,215 | | Mining claims fees and permit fees | $280 | $564 | | License fees | $257 | $324 | | Other | $49 | $28 | | Deposits | $187 | $179 | | Total current | $3,337 | $2,863 | | Prepaids, non-current: | | | | Royalty - advance payment on Net Profits Royalty | $600 | $600 | | Insurance | $52 | — | | Total non-current | $652 | $600 | - Current prepaids and deposits increased to $3.337 million at June 30, 2025, from $2.863 million at December 31, 2024, primarily due to higher surety bond fees[38] 4. Equity Securities This note provides information on the company's equity investments and related fair value adjustments Components of Equity Securities (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity securities, current | $1,109 | $454 | | Equity securities, non-current | — | $151 | | Total | $1,109 | $605 | - Total equity securities increased to $1.109 million at June 30, 2025, from $0.605 million at December 31, 2024[39] - The Company recorded an unrealized gain of $0.5 million on equity securities for the six months ended June 30, 2025, compared to an unrealized loss of $0.5 million for the same period in 2024[39] 5. Property, Plant, and Equipment and Assets Held-For-Sale, Net This note outlines the composition and changes in the company's fixed assets and assets designated for sale Components of Property, Plant, and Equipment, Net (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total property, plant, and equipment, net | $50,999 | $51,588 | | Assets held-for-sale | $5,698 | $5,698 | | Total | $56,697 | $57,286 | - Depreciation and amortization expense decreased to $1.0 million for the six months ended June 30, 2025, from $1.2 million in the prior year period[41] - Assets held-for-sale remained constant at $5.7 million, consisting of unused mining equipment for which the Company is actively seeking buyers[42] 6. Restricted Cash This note explains the nature and changes in cash balances held for specific purposes, such as reclamation bonds Components of Restricted Cash (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Reclamation and other surety bond cash collateral | $29,948 | $27,445 | | Credit card collateral | $53 | $53 | | Total | $30,001 | $27,498 | - Restricted cash increased to $30.001 million at June 30, 2025, from $27.498 million at December 31, 2024, primarily for reclamation and other surety bond cash collateral[43] - Interest income on restricted cash was $0.5 million for the six months ended June 30, 2025, compared to $0.6 million for the same period in 2024[44] 7. Accounts Payable, Accrued Expenses, and Other Liabilities This note details the various current and non-current liabilities of the company Components of Accounts Payable, Accrued Expenses, and Other Liabilities (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts payable and accrued expenses | $1,330 | $2,389 | | Accrued compensation and benefits | $1,293 | $3,116 | | Total current | $2,692 | $5,561 | | Operating lease liability, non-current | $23 | — | | Total non-current | $23 | — | - Total current accounts payable, accrued expenses, and other liabilities decreased significantly to $2.692 million at June 30, 2025, from $5.561 million at December 31, 2024[46] 8. Fair Value Measurements This note describes the valuation techniques and inputs used for assets and liabilities measured at fair value Assets and Liabilities Measured at Fair Value on a Recurring Basis (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Equity securities, current | $1,109 | $454 | | Equity securities, non-current | — | $151 | | Total | $1,109 | $605 | | 5-Year Private Warrants | — | $6 | - The estimated fair value of the Company's debt instruments was $110.5 million at June 30, 2025, compared to a carrying value of $131.0 million[48] - The fair value of 5-Year Private Warrants was nil as of June 30, 2025, due to their expiration on May 29, 2025[47] 9. Debt, Net This note provides a breakdown of the company's debt instruments, including terms, carrying values, and interest expenses Components of Debt, Net (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt, net, current: | | | | Notes payable | $28 | $54 | | Total current | $28 | $54 | | Debt, net, non-current: | | | | Sprott Credit Agreement, net | $13,415 | $13,087 | | Subordinated Notes | $117,870 | $112,190 | | Notes payable | $7 | $22 | | Less, debt issuance costs | $(285) | $(354) | | Total non-current | $131,007 | $124,945 | | Total debt, net | $131,035 | $125,000 | Recorded Interest Expense (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sprott Credit Agreement | $400 | $439 | $794 | $941 | | Subordinated Notes | $2,876 | $2,605 | $5,681 | $5,145 | | Amortization of original issue discount | $168 | $140 | $328 | $299 | | Amortization of debt issuance costs | $35 | $33 | $69 | $80 | | Accelerated amortization of original issue discount and issuance costs | — | — | — | $6,871 | | Total | $3,479 | $3,218 | $6,866 | $13,338 | - Total non-current debt, net, increased to $131.007 million at June 30, 2025, from $124.945 million at December 31, 2024[50] - Interest expense for the six months ended June 30, 2025, decreased to $6.866 million from $13.338 million in the prior year, primarily due to the absence of accelerated amortization of original issue discount and issuance costs recorded in 2024[51] 10. Asset Retirement Obligation This note explains the company's estimated costs for future environmental remediation and reclamation activities Changes in Asset Retirement Obligation (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Balance, beginning of period | $13,151 | $7,973 | | Accretion | $666 | $1,253 | | Spending | — | $(1,938) | | Change in estimates | — | $5,863 | | Balance, end of period | $13,817 | $13,151 | | Current | $179 | $179 | | Non-current | $13,638 | $12,972 | - The asset retirement obligation increased to $13.817 million at June 30, 2025, from $13.151 million at December 31, 2024[54] - No adjustments or changes in estimate were recorded for the six months ended June 30, 2025, compared to a $4.0 million adjustment in the prior year period[54] 11. Warrant Liabilities This note details the company's outstanding warrants, their classification, and changes in their fair value - 34,289,898 warrants expired unexercised on May 29, 2025, including 670,600 warrants classified as a warrant liability[56] Summary of 5-Year Private Warrants (in thousands, except warrant amounts) | Balance at December 31, 2024 | Adjustments | Expired 5-Year Public Warrants | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | | Warrants: 670,600 | Warrants: — | Warrants: (670,600) | Warrants: — | | Amount: $6 | Amount: $(5) | Amount: $(1) | Amount: $— | - The expiration of these warrants had no material impact on the Company's financial statements[56] 12. Stockholders' Equity This note provides information on the company's capital structure, including common stock, warrants, and equity transactions - The Company completed a public offering on June 13, 2025, issuing 12,500,000 Units (common stock and 2025 3-Year Warrants) and receiving net proceeds of $40.7 million[61][62] - Through the New ATM Program, the Company sold 108,072 shares of common stock for gross proceeds of $0.3 million during the six months ended June 30, 2025[63] Outstanding Equity Classified Warrants (in thousands, except warrant amounts) | | Balance at December 31, 2024 | Warrant Issuances | Expired 5-Year Private Warrants | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | 5-Year Public Warrants | 33,619,298 ($29,554) | — | (33,619,298) ($(29,554)) | — | | Public Offering Warrants (5-Year) | 9,583,334 ($12,938) | — | — | 9,583,334 ($12,938) | | Private Placement Offering Warrants | 46,816,480 ($25,604) | — | — | 46,816,480 ($25,604) | | Public Offering Warrants (3-Year) | — | 7,187,500 ($6,294) | — | 7,187,500 ($6,294) | | Total | 90,019,112 ($68,096) | 7,187,500 ($6,294) | (33,619,298) ($(29,554)) | 63,587,314 ($44,836) | 13. Stock-Based Compensation This note describes the company's stock-based compensation plans and related expenses - As of June 30, 2025, 490,281 shares were available for issuance under the HYMC 2020 Performance and Incentive Pay Plan (PIPP)[67] Summary of Unvested and Outstanding Share Awards under PIPP | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Unvested at beginning of year | 678,071 | 607,099 | | Granted | 491,949 | 435,204 | | Canceled/forfeited | (15,304) | (20,014) | | Vested | (415,464) | (322,183) | | Unvested end of period | 739,252 | 700,106 | 14. Income Taxes This note outlines the company's income tax position, including deferred taxes and effective tax rates - The Company incurred nil net income tax expense or benefit for the six months ended June 30, 2025 and 2024[71] - The effective tax rate was nil for both periods, primarily due to changes in the valuation allowance offsetting net deferred tax assets[71] 15. Loss Per Share This note details the calculation of basic and diluted loss per share Basic and Diluted Loss Per Share Calculations (in thousands, except share and per share amounts) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(11,737) | $(13,180) | $(23,496) | $(33,930) | | Weighted average shares outstanding (Basic and diluted) | 27,584,548 | 22,983,276 | 26,273,721 | 21,903,372 | | Loss per common share, basic and diluted | $(0.43) | $(0.57) | $(0.89) | $(1.55) | - Loss per common share, basic and diluted, improved to $(0.89) for the six months ended June 30, 2025, from $(1.55) in the prior year period[72] - Common stock equivalents, including shares upon exercise of warrants and restricted stock units, were excluded from diluted EPS calculations due to their anti-dilutive effect[73] 16. Segment Information This note explains the company's operating segments and how performance is managed - The Company operates as a single reportable segment, focusing on exploration since discontinuing mining operations in November 2021[75] - The Chief Executive Officer, as the chief operating decision-maker, manages and evaluates performance on a consolidated basis[75] 17. Supplemental Cash Flow Information This note provides additional non-cash and cash flow details not directly presented in the main cash flow statement Supplemental Cash Flow Information (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Increase in debt from in-kind interest | $5,681 | $5,145 | | Accelerated amortization of original issue discount and issuance costs | $— | $6,871 | | Cash interest paid | $794 | $941 | - Cash interest paid decreased to $0.794 million for the six months ended June 30, 2025, from $0.941 million in the prior year period[76] 18. Commitments and Contingencies This note discloses the company's legal proceedings, contractual obligations, and off-balance sheet arrangements - The Company is a defendant in four pro se legal actions in Delaware Chancery Court related to alleged breaches of Warrant Agreements, with one individual action discontinued and two plaintiffs deemed inadequate class representatives[77] - No losses have been recorded for litigation or loss contingencies for the six months ended June 30, 2025 and 2024, as a loss was not deemed probable or reasonably estimable[78] - Off-balance sheet arrangements include a 4% net profit Crofoot Royalty and a perpetual 1.5% net smelter Sprott Royalty Agreement, with an estimated net present value of $146.7 million for the Sprott Royalty[82][83][84][85] 19. Related Party Transactions This note describes transactions and relationships with parties considered to be related to the company - AMC is classified as a related party due to its representative on the Company's Board of Directors[86] - The Company paid $0.04 million in director fees to AMC's board representative for both the six months ended June 30, 2025 and 2024[86] 20. Subsequent Events This note reports significant events that occurred after the balance sheet date but before the financial statements were issued - Subsequent to June 30, 2025, on July 11, 2025, underwriters partially exercised their over-allotment option to purchase 1,324,117 shares of common stock, generating $4.3 million in net proceeds[87] ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This section provides management's perspective on the Company's financial condition and operational results for the three and six months ended June 30, 2025. It covers the Company's strategic focus on exploration and development of the Hycroft Mine, recent financing activities, safety performance, and future outlook, alongside a detailed analysis of operating expenses, non-operating income/expense, and liquidity Introduction to the Company This section introduces Hycroft Mining Holding Corporation, its primary asset, and its current operational focus - Hycroft Mining Holding Corporation is a U.S.-based gold and silver exploration and development company owning the Hycroft Mine in Nevada[89] - The Company's focus is on exploring its 64,000 acres of claims and developing the project safely and cost-effectively[89] - Mining operations were halted in November 2021, and significant revenues from gold and silver sales are not anticipated until technical work is completed and operations resume[89] Health and Safety This section highlights the company's commitment to and performance in health and safety - The Company reported no lost time incidents during the six months ended June 30, 2025, maintaining a Total Recordable Injury Frequency Rate (TRIFR) of 0.00[91] - Hycroft was awarded the 2025 first place NVMA Operator Safety Award for small surface mines[91] Executive Summary This section provides a high-level overview of the company's key activities, financial performance, and strategic developments during the reporting period - During Q2 2025, the Company reviewed 2024 drill program results for high-grade silver zones and continued metallurgical and variability test work for a new technical report expected in Q4 2025[92] - The Company completed a public offering in June 2025, raising $40.7 million in net proceeds, with an additional $4.3 million from an over-allotment option exercised in July 2025[93][94][95] - Net proceeds from the offering are intended for further exploration, working capital, and general corporate purposes[95] Recent Developments This section outlines the latest operational and strategic advancements of the company Exploration drilling This subsection details the progress and focus of the company's exploration drilling activities - Focus during H1 2025 was on incorporating 2024 drill program results and refining the structural framework into an updated geologic model[97] - Work improved understanding of mineral domains and became the foundation for selecting targets in the Brimstone and Vortex areas[97] Metallurgical and variability test work This subsection describes the ongoing metallurgical and variability testing efforts to optimize processing methods - Metallurgical and engineering work for designing a sulfide milling operation advanced in H1 2025[98] - Crushing, grinding, and flotation tests showed significant improvements in gold and silver flotation recoveries compared to the current technical report[98] - Trade-off studies are planned to assess roasting technology versus pressure oxidation for optimal project economics[98] 2025 Outlook This section provides an overview of the company's strategic plans and anticipated activities for the remainder of 2025 - Key 2025 plans include assessing high-grade underground mining, evaluating rehandling and leaching ore in a historic leach pad, and expanding high-grade silver mineralization[99] - The 2025-2026 Exploration Drill Program, commencing in early August 2025, will focus on expanding high-grade silver systems with approximately 14,500 meters of core drilling[100] - Trade-off studies and alternative analyses will continue to optimize recoveries and explore by-product revenue streams, with an updated technical report anticipated in Q4 2025[103] Results of Operations This section analyzes the company's financial performance by comparing operating expenses and non-operating income/expense across reporting periods Operating Expenses (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | General and administrative costs | $3,478 | $3,906 | $6,411 | $6,820 | | Mine site costs | $2,673 | $2,488 | $5,153 | $5,072 | | Exploration and development costs | $2,344 | $5,053 | $5,343 | $9,956 | | Depreciation and amortization | $498 | $567 | $1,032 | $1,183 | | Asset retirement obligation adjustments and accretion expense | $333 | $2,267 | $666 | $4,491 | | Gain on asset sales | $(11) | $(3,751) | $(68) | $(5,060) | | Total | $9,315 | $10,530 | $18,537 | $22,462 | General and administrative costs This subsection analyzes the trends and drivers of the company's general and administrative expenses - General and administrative costs decreased to $6.4 million for the six months ended June 30, 2025, from $6.8 million in the prior year period, with activities remaining substantially consistent[105] Mine site costs This subsection examines the company's expenses related to maintaining and managing its mine site - Mine site costs remained substantially consistent year-over-year, totaling $5.2 million for the six months ended June 30, 2025, compared to $5.1 million in the prior year period[106] Exploration and development costs This subsection details the expenditures incurred for exploration and development activities - Exploration and development costs decreased to $5.3 million for the six months ended June 30, 2025, from $10.0 million in the prior year period, as drilling was paused for geologic model refinement[107] Depreciation and amortization This subsection analyzes the depreciation and amortization expenses recognized during the period - Depreciation and amortization expense decreased to $1.0 million for the six months ended June 30, 2025, from $1.2 million in the prior year period, primarily due to certain assets becoming fully depreciated[108] Asset retirement obligation adjustments and accretion expense This subsection discusses the adjustments and accretion expenses related to the company's asset retirement obligations - Asset retirement obligation adjustments and accretion expense decreased to $0.7 million for the six months ended June 30, 2025, from $4.5 million in the prior year period[109] - No adjustments or changes in estimate were recorded in the current period, compared to a $4.0 million adjustment in the prior year[109] Gain on asset sales This subsection reports the gains realized from the sale of company assets - Gain on asset sales decreased to $0.1 million for the six months ended June 30, 2025, from $5.1 million in the prior year period, due to reduced asset sales[111] Non-operating income (expense) This subsection details the income and expenses not directly related to the company's primary operations Non-operating Income (Expense) (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Interest income | $687 | $1,058 | $1,400 | $2,353 | | Other income (loss) | $370 | $(490) | $507 | $(483) | | Interest expense | $(3,479) | $(3,218) | $(6,866) | $(13,338) | | Total non-operating income and (expense) | $(2,422) | $(2,650) | $(4,959) | $(11,468) | Interest income This sub-subsection reports the interest earned on the company's cash and investments - Interest income decreased to $1.4 million for the six months ended June 30, 2025, from $2.4 million in the prior year, primarily due to a reduction in invested cash[113] Other income (loss) This sub-subsection details other miscellaneous income or losses not categorized elsewhere - Other income totaled $0.5 million for the six months ended June 30, 2025, primarily due to unrealized gains on equity securities, compared to an unrealized loss of $0.5 million in the prior year[114] Interest expense This sub-subsection reports the costs incurred from the company's debt obligations - Interest expense decreased to $6.9 million for the six months ended June 30, 2025, from $13.3 million in the prior year, mainly due to the absence of $6.9 million in accelerated amortization of original issue discount and issuance costs recorded in January 2024[115] Liquidity and Capital Resources This section assesses the company's ability to meet its short-term and long-term financial obligations and its sources of funding General This subsection provides a general overview of the company's liquidity position and capital-raising activities - The Company's unrestricted cash position was $68.8 million at June 30, 2025, up from $49.6 million at December 31, 2024[116] - For the six months ended June 30, 2025, the Company raised cash through a public equity offering ($40.7 million net proceeds) and the New ATM Program ($0.3 million gross proceeds)[116] - The Company does not expect to generate net positive cash from operations for the foreseeable future and is dependent on unrestricted cash and other financing sources[117] Cash and liquidity This subsection details the company's cash balances and other liquid assets available to meet its financial needs Projected Sources of Future Liquidity (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $68,768 | $49,560 | | Assets held-for-sale | $5,698 | $5,698 | | Equity securities | $1,109 | $454 | | Receivables | $272 | $369 | | Total projected sources of future liquidity | $75,847 | $56,081 | - Total projected sources of future liquidity increased to $75.847 million at June 30, 2025, from $56.081 million at December 31, 2024[120] - $97.5 million gross sales price of common stock remained available for issuance under the New ATM Program as of June 30, 2025[122] Six months ended June 30, 2025 compared to six months ended June 30, 2024 This subsection provides a comparative analysis of the company's cash flows and liquidity between the current and prior year periods Sources and Uses of Cash (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(23,496) | $(33,930) | | Net cash used in operating activities | $(18,718) | $(20,331) | | Net cash (used in) provided by investing activities | $(329) | $1,268 | | Net cash provided by (used in) financing activities | $40,759 | $(28,004) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $21,712 | $(47,067) | | Cash, cash equivalents, and restricted cash, end of period | $98,769 | $85,483 | Cash used in operating activities This sub-subsection analyzes the cash outflows from the company's core business operations - Cash used in operating activities decreased to $18.7 million for the six months ended June 30, 2025, from $20.3 million in the prior year, primarily due to a lower net loss[124][125] - Non-cash interest expense was $6.1 million in H1 2025, compared to $12.4 million in H1 2024, which included accelerated amortization[124][125] Cash (used in) provided by investing activities This sub-subsection examines the cash flows related to the acquisition and disposal of long-term assets - Investing activities used $0.3 million of cash in H1 2025, primarily for property, plant, and equipment additions, partially offset by asset sales[126] - In contrast, investing activities generated $1.3 million in H1 2024, mainly from asset sales[126] Cash provided by (used in) financing activities This sub-subsection analyzes the cash flows from debt and equity transactions - Financing activities provided $40.8 million in net cash in H1 2025, primarily from common stock issuance through the public offering and New ATM Program[127] - In H1 2024, financing activities used $28.0 million, mainly due to $38.1 million in debt principal payments, including a voluntary prepayment of first lien debt[128] Future capital and cash requirements This sub-subsection outlines the company's anticipated capital expenditures and cash needs for future operations and projects Gross Contractual Cash Obligations as of June 30, 2025 (in thousands) | | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating activities: | | | | | | | Sprott Royalty Agreement | $241,199 | $— | $— | $— | $241,199 | | Remediation and reclamation expenditures | $110,963 | $179 | $9,944 | $— | $100,840 | | Interest payments | $3,382 | $1,764 | $1,618 | $— | $— | | Crofoot Royalty | $4,344 | $— | $— | $— | $4,344 | | Financing activities: | | | | | | | Repayments of debt principal | $164,775 | $29 | $164,746 | $— | $— | | Total | $524,663 | $1,972 | $176,308 | $— | $346,383 | - Total gross contractual cash obligations are estimated at $524.663 million, with the largest portion ($346.383 million) due in more than 5 years, primarily from the perpetual Sprott Royalty Agreement[129] - The Company increased cash collateral for reclamation bonds by $2.0 million in April 2025 and is evaluating alternatives to manage cash collateral requirements[129] Debt covenants This section confirms the company's compliance with the terms and conditions of its debt agreements - The Company was in compliance with all financial covenants under its debt agreements as of June 30, 2025[131] - The Sprott Credit Agreement requires maintaining Working Capital of at least $10.0 million and Unrestricted Cash of at least $15.0 million[131] Off-balance sheet arrangements This section discloses the company's contractual obligations and commitments not recognized on the balance sheet - Off-balance sheet arrangements as of June 30, 2025, consisted of a net profit royalty arrangement (Crofoot Royalty) and a net smelter royalty arrangement (Sprott Royalty Agreement)[134] Critical Accounting Estimates This section highlights the accounting policies that require significant judgment and estimation by management - The preparation of financial statements requires significant assumptions, estimates, and judgments affecting reported amounts[135] - Information on critical accounting estimates is detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[135] Cautionary Statement Regarding Forward-Looking Statements This section advises readers about the inherent uncertainties and risks associated with forward-looking information presented in the report - The report contains forward-looking statements identified by words like 'expect,' 'anticipate,' 'plan,' and 'will,' subject to risks and uncertainties[136][137] - Actual results may differ materially from forward-looking statements due to known and unknown risks, and the Company undertakes no obligation to update these statements[138][139] ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK As a smaller reporting company, Hycroft Mining Holding Corporation is not required to provide quantitative and qualitative disclosures about market risk in this filing, and such information has been omitted - The Company qualifies as a smaller reporting company under Item 10(f) of Regulation S-K[141] - Quantitative and qualitative disclosures about market risk are not required and are omitted from this filing[141] ITEM 4. CONTROLS AND PROCEDURES This section details the Company's evaluation of its disclosure controls and procedures and internal control over financial reporting, concluding that they were effective as of June 30, 2025, with no significant changes during the quarter Evaluation of Disclosure Controls and Procedures This subsection describes the assessment of the effectiveness of the company's disclosure controls and procedures - Management, with CEO and CFO participation, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025[143] - The CEO and CFO concluded that disclosure controls and procedures were effective to provide reasonable assurance for timely and accurate financial reporting[144] - Control systems, despite being well-designed, have inherent limitations and can only provide reasonable, not absolute, assurance[145] Changes in Internal Control Over Financial Reporting This subsection reports any material changes in the company's internal control over financial reporting during the period - There were no significant changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[146] PART II. OTHER INFORMATION This section contains additional disclosures and information not covered in the financial statements, including legal, risk, and control matters ITEM 1. LEGAL PROCEEDINGS This section states that there were no material developments in legal proceedings during the quarter ended June 30, 2025, beyond what was disclosed in the Company's previous annual report - No material developments occurred in legal proceedings during the quarter ended June 30, 2025[147] - Legal proceedings status remains as disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[147] ITEM 1A. RISK FACTORS As a smaller reporting company, Hycroft Mining Holding Corporation is not required to include risk factors in its quarterly report, and therefore, this section is omitted - The Company qualifies as a smaller reporting company under Item 10(f) of Regulation S-K[148] - Risk factors are not required in a Quarterly Report and are omitted from this filing[148] ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS This section indicates that there were no unregistered sales of equity securities or use of proceeds to report for the quarter - No unregistered sales of equity securities and use of proceeds to report[149] ITEM 3. DEFAULTS UPON SENIOR SECURITIES This section confirms that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred during the reporting period[150] ITEM 4. MINE SAFETY DISCLOSURES The Company emphasizes its commitment to mine safety through continuous improvement, mandatory programs, and a goal of zero workplace injuries. Detailed disclosures are provided in Exhibit 95.1 - The Company prioritizes mine safety with a philosophy of continuous improvement and a goal of zero workplace injuries or occupational illnesses[151] - Mandated mine safety and health programs include employee and contractor training, risk management, workplace inspection, and emergency response[151] - Information on mine safety violations and regulatory matters is included in Exhibit 95.1[152] ITEM 5. OTHER INFORMATION This section reports no material changes to procedures for recommending Board nominees and no adoption or termination of Rule 10b5-1 trading arrangements by directors or officers during the quarter - No material changes to procedures for security holders to recommend Board nominees[153] - No director or officer adopted or terminated a Rule 10b5-1(c) trading arrangement during the quarter ended June 30, 2025[153] ITEM 6. EXHIBITS This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including warrant agreements, certifications, mine safety disclosures, and Inline XBRL documents List of Exhibits | Exhibit Number | Description | | :--- | :--- | | 4.1 | Warrant Agency Agreement dated June 13, 2025 | | 4.2 | Form of Warrant dated June 12, 2025 | | 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) | | 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) | | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | | 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | | 95.1 | Mine Safety Disclosures | | 101.INS | Inline XBRL Instance Document | | 101.SCH | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104 | Cover Page Interactive Data File | SIGNATURES This section contains the required signatures of the registrant's authorized officers, including the President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, certifying the filing of the report - The report is duly signed on behalf of Hycroft Mining Holding Corporation by Diane R. Garrett, President and Chief Executive Officer, and Stanton Rideout, Executive Vice President and Chief Financial Officer, on July 31, 2025[157][158][159]