Solitario(XPL) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION This part presents Solitario's unaudited condensed consolidated financial statements, management's discussion, market risk disclosures, and controls and procedures Item 1. Financial Statements This section presents Solitario's unaudited financial statements, detailing Q2 2025 increased net loss and six-month period performance Condensed Consolidated Balance Sheets This section details Solitario's financial position, including assets, liabilities, and equity as of June 30, 2025 | (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Assets | | | | Cash and cash equivalents | $195 | $81 | | Short-term investments | $8,823 | $4,523 | | Marketable equity securities | $401 | $1,322 | | Total current assets | $9,648 | $5,992 | | Mineral properties | $16,701 | $16,701 | | Total assets | $26,663 | $23,040 | | Liabilities | | | | Accounts payable | $461 | $258 | | Kinross call option liability | $- | $67 | | Total current liabilities | $490 | $368 | | Total liabilities | $635 | $520 | | Shareholders' Equity | | | | Common stock | $900 | $816 | | Additional paid-in capital | $89,592 | $84,714 | | Accumulated deficit | $(64,464) | $(63,010) | | Total shareholders' equity | $26,028 | $22,520 | - Total assets increased by $3,623,000 (15.7%) from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and short-term investments[13][14] - Total current liabilities increased by $122,000 (33.1%) from December 31, 2024, to June 30, 2025, mainly due to an increase in accounts payable and the elimination of the Kinross call option liability[14][15] - Total shareholders' equity increased by $3,508,000 (15.6%) from December 31, 2024, to June 30, 2025, largely due to additional paid-in capital from stock issuances[16] Condensed Consolidated Statements of Operations This section outlines Solitario's financial performance for the three and six months ended June 30, 2025 and 2024 | (in thousands of U.S. dollars, 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 | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration expense | $671 | $487 | $910 | $841 | | General and administrative | $388 | $656 | $878 | $1,128 | | Total operating expense | $1,066 | $1,149 | $1,802 | $1,982 | | Interest and dividend income | $52 | $106 | $98 | $201 | | Loss on derivative instruments | $(130) | $(21) | $(336) | $(21) | | Realized and unrealized gain on sale of marketable equity securities | $201 | $302 | $586 | $310 | | Total other income (loss) | $123 | $387 | $348 | $490 | | Net loss | $(943) | $(762) | $(1,454) | $(1,492) | | Loss per common share (Basic and diluted) | $(0.01) | $(0.01) | $(0.02) | $(0.02) | - Net loss increased by $181,000 (23.7%) for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to higher exploration expense and derivative losses[18] - Net loss decreased by $38,000 (2.5%) for the six months ended June 30, 2025, compared to the same period in 2024, mainly driven by lower general and administrative expenses and higher realized gains on marketable equity securities[18] Condensed Consolidated Statements of Cash Flows This section presents Solitario's cash flows from operating, investing, and financing activities | (in thousands of U.S. dollars) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(1,401) | $(1,570) | | Net cash (used) provided by investing activities | $(3,196) | $414 | | Net cash provided by financing activities | $4,711 | $1,232 | | Net increase in cash and cash equivalents and restricted cash | $114 | $76 | | Cash, cash equivalents and restricted cash, end of period | $425 | $276 | - Net cash used in operating activities decreased by $169,000 (10.8%) for the six months ended June 30, 2025, compared to the same period in 2024[20] - Net cash used in investing activities significantly increased to $(3,196,000) for the six months ended June 30, 2025, from a net cash provided of $414,000 in the prior year, primarily due to net purchases of short-term investments[20] - Net cash provided by financing activities increased by $3,479,000 (282.4%) for the six months ended June 30, 2025, mainly driven by common stock issuances from private placements[20] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the unaudited financial statements 1. Business and Significant Accounting Policies This note describes Solitario's business operations and significant accounting policies - Solitario Resources Corp. is an exploration stage company focused on acquiring and exploring precious metal, zinc, and other base metal mineral properties, primarily in North and South America[21][22][77][78] - Core mineral property assets include the Florida Canyon zinc project in Peru, the Lik zinc project in Alaska, and the Golden Crest project in South Dakota, along with the early-stage Cat Creek project in Colorado[24][78] - The company adopted ASU 2023-05 (Joint Venture Formations) and ASU 2023-09 (Income Tax Disclosures) in Q1 2025, neither of which had a material impact on financial position or results[28][29] - Solitario is assessing the impact of ASU 2024-03 (Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2026[30][31] 2. Mineral Properties This note provides details on Solitario's mineral property assets and associated exploration expenditures | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Lik Project | $15,611 | $15,611 | | Golden Crest Project | $1,078 | $1,078 | | Cat Creek Project | $12 | $12 | | Total exploration mineral properties | $16,701 | $16,701 | | (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 | | :------------- | :----------------