Paramount Gold Nevada(PZG) - 2026 Q2 - Quarterly Report

Financial Performance - The net loss for the three months ended December 31, 2025, was $4,426,937, an increase of 118% compared to a net loss of $2,031,489 for the same period in 2024[91]. - For the six months ended December 31, 2025, the net loss was $8,751,275, representing a 143% increase from a net loss of $3,603,627 in the prior year[91]. Expenses - Exploration expenses for the three months ended December 31, 2025, were $739,808, a 96% increase from $377,112 in the same period of 2024[93]. - Professional fees for the three months ended December 31, 2025, increased to $222,324 from $85,234 in the same period of 2024, reflecting an increase of $137,090[103]. - General and administration expenses for the three months ended December 31, 2025, rose by 66% to $297,047 from $178,949 in the previous year[104]. - The company expects to incur $3.4 million in corporate, land claim maintenance, and general expenses over the next twelve months[112]. - The company anticipates spending $1.5 million on state and federal permitting activities for the Grassy Mountain Project in the next twelve months[112]. Cash and Financing - The company had cash and cash equivalents of $3,536,859 as of December 31, 2025, compared to $1,351,001 as of June 30, 2025[107]. - The company issued 2,853,916 shares under its equity offering program for net proceeds of $2,714,477 during the six months ended December 31, 2025[108]. - The company received cash from financing activities of $4,714,477 during the six months ended December 31, 2025, primarily from sales under the ATM program[109]. Accounting and Valuation - The Company prepares its consolidated financial statements in accordance with U.S. GAAP, requiring management to make estimates that affect reported assets, liabilities, revenue, and expenses[115]. - Mineral property acquisition costs are capitalized and amortized over the useful life of the property once production commences, or expensed if no future economic value is determined[116]. - The fair value of the Company's asset retirement obligation (ARO) is measured by discounting expected cash flows, with significant judgments made in estimating its fair value[119]. - Convertible debt and derivative liabilities are assessed for separate accounting as derivatives, with fair value changes recognized in the Statement of Operations[120]. - Warrants are classified as either equity or liability based on specific terms, with changes in fair value recognized as unrealized gains or losses[121][122]. - The amounts recorded as mineral properties reflect actual costs incurred and do not indicate any present or future value of economically recoverable reserves[118]. - The Company evaluates estimates related to reclamation and environmental obligations on an ongoing basis[115]. Market Risk - There are no applicable quantitative and qualitative disclosures about market risk as the Company is classified as a smaller reporting company[125]. Off-Balance Sheet Arrangements - The Company is not currently involved in any off-balance sheet arrangements that could materially affect its financial condition[123].