Solaris Resources Inc.(SLSR) - 2025 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended September 30, 2025, was $12,229,000, compared to a net loss of $20,805,000 for the same period in 2024, indicating a 41.2% improvement[3] - Total comprehensive loss for the nine months ended September 30, 2025, was $34,503,000, down from $51,048,000 in 2024, a reduction of 32.3%[3] - The company reported a basic and diluted net loss per share of $0.20 for the nine months ended September 30, 2025, compared to $0.33 in 2024, a decrease of 39.4%[3] - The company incurred a net loss of $34,501,000 for the nine months ended September 30, 2025, compared to a net loss of $51,048,000 for the same period in 2024[6] Assets and Liabilities - Total assets increased to $61,909,000 as of September 30, 2025, up from $57,196,000 in December 2024, representing a growth of 4.8%[2] - Current liabilities decreased significantly to $5,951,000 from $13,055,000, a reduction of 54.4%[2] - Shareholders' deficit increased to $40,099,000 from $9,287,000, reflecting a decline in equity position[2] - Total equity increased to $20,882,000 as of September 30, 2025, up from $19,453,000 as of September 30, 2024[6] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $35,137,000, compared to $31,738,000 at the beginning of the period, reflecting an increase of 10.4%[5] - As of September 30, 2025, Solaris Resources Inc. reported cash and cash equivalents of $35,137,000[11] - As of September 30, 2025, the Company had a cash balance of $28,360, an increase from $15,858 as of December 31, 2024[67] Exploration and Evaluation - Exploration expenses for the nine months ended September 30, 2025, totaled $30,668,000, down from $42,236,000 in 2024, a decrease of 27.5%[3] - The Company’s exploration expenditures in Ecuador for the nine months ended September 30, 2025, were $26,200, down from $40,856 in 2024[61] - Exploration and evaluation assets totaled $19,991,000 as of September 30, 2025, slightly down from $20,179,000 as of December 31, 2024[30] Funding and Revenue - The company has a total cash consideration of $200,000,000 under the funding package with Royal Gold, with the first tranche of $100,000,000 already received[11] - The second tranche of $50,000,000 from the Royal Gold funding package is contingent upon the publication of the Pre-Feasibility Study and receipt of Environmental Impact Assessment approval[13] - The company expects to continue obtaining necessary funds primarily through the Royal Gold funding package and/or issuance of common shares[10] - The company had a deferred revenue of $91,174,000 as of September 30, 2025, indicating a significant increase in future revenue recognition[2] Shareholder Information - The weighted average number of shares outstanding increased to 164,589,426 for the nine months ended September 30, 2025, compared to 155,490,954 in 2024, an increase of 5.5%[3] - As of September 30, 2025, the Company had issued and fully paid 165,785,363 common shares, an increase from 163,234,932 shares as of December 31, 2024[55] - The weighted average exercise price per share of options exercised during the nine months ended September 30, 2025, was C$0.83[55] - The Company had 10,816,250 options outstanding as of September 30, 2025, with a weighted average exercise price of C$4.61[58] Costs and Expenses - Share-based compensation expenses for the three and nine months ended September 30, 2025, were $901 and $2,981, respectively, compared to $1,341 and $2,835 for the same periods in 2024[62] - The Company reported total costs related to shared arrangements of $2,161,000, down from $2,161,000 in the same period of 2024[73] - The company terminated its arrangement to share office space and services with related companies on January 1, 2025, incurring a settlement cost of $104,000[72] Going Concern and Uncertainties - Material uncertainty exists regarding the company's ability to continue as a going concern, dependent on successful execution of its business plan and raising additional capital[12] - The company has not yet determined whether its properties contain mineral reserves that are technically feasible and commercially viable[9] Reclamation and Environmental Provisions - The reclamation provision increased to $4,147,000 as of September 30, 2025, from $3,765,000 at the end of 2024, reflecting estimated costs for environmental restoration[37] - The total undiscounted estimated cash flows for reclamation obligations are $4,563,000 as of September 30, 2025[37] Errors and Reclassifications - The company identified an error related to a provision of $713,000 against salary and benefits, which did not impact the financial statements for the nine months ended September 30, 2025[75] - An error in foreign currency calculations related to deferred revenue and loan arrangement fees was identified, but it did not impact the financial statements for the nine months ended September 30, 2025[76] - Certain prior period amounts were reclassified for consistency with the current year presentation, with no effect on reported results[78]