tango ORE(CTGO) - 2022 Q1 - Quarterly Report

PART I – FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial information and related disclosures Item 1. Financial Statements This section presents Contango ORE, Inc.'s unaudited condensed consolidated financial statements and detailed notes for Q3 2021 Condensed Consolidated Balance Sheets This statement presents the company's financial position, including assets, liabilities, and equity, at specific dates Condensed Consolidated Balance Sheets | Metric | September 30, 2021 | June 30, 2021 | | :------------------------- | :----------------- | :------------ | | Cash | $26,757,297 | $35,220,588 | | Total Current Assets | $27,828,212 | $35,934,349 | | Property & Equipment, net | $13,633,639 | $36,531 | | Total Assets | $41,461,851 | $35,970,880 | | Total Current Liabilities | $7,241,008 | $222,105 | | Total Non-Current Liabilities | $3,265,990 | $1,200,000 | | Total Liabilities | $10,506,998 | $1,422,105 | | Total Shareholders' Equity | $30,954,853 | $34,548,775 | - Total Assets increased by 15.27% to $41,461,851 as of September 30, 2021, from $35,970,880 at June 30, 2021, primarily driven by a significant increase in Property & Equipment, net[6] - Total Liabilities saw a substantial increase of 6388.39% to $10,506,998 from $1,422,105, mainly due to a new note payable of $6,250,000 and a contingent consideration liability of $1,847,063[6] - Total Shareholders' Equity decreased by 10.40% to $30,954,853 as of September 30, 2021, from $34,548,775 at June 30, 2021[6] Condensed Consolidated Statements of Operations This statement presents the company's financial performance, including revenues, expenses, and net income or loss Condensed Consolidated Statements of Operations | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :----------------------------------------- | :------------------------------ | :------------------------------ | | Claim rental expense | $(149,810) | $(20,828) | | Exploration expense | $(946,245) | $0 | | Depreciation expense | $(4,782) | $0 | | General and administrative expense | $(1,970,269) | $(3,524,992) | | Total expenses | $(3,071,106) | $(3,545,820) | | Interest income | $497 | $214 | | Interest expense | $(56,604) | $0 | | Loss from equity investment in Peak Gold, LLC | $(1,445,000) | $(247,800) | | Gain on sale of a portion of equity investment | $0 | $39,642,857 | | Total other income/(expense) | $(1,501,107) | $39,395,271 | | INCOME/(LOSS) BEFORE TAXES | $(4,572,213) | $35,849,451 | | Income tax (expense)/benefit | $0 | $(2,406,826) | | NET INCOME/(LOSS) | $(4,572,213) | $33,442,625 | | Basic and diluted EPS | $(0.68) | $5.09 | - The company reported a net loss of $(4,572,213) for the three months ended September 30, 2021, a significant decrease from a net income of $33,442,625 in the same period of 2020, primarily due to the absence of a large gain on sale of equity investment seen in the prior year[8] - Basic and diluted loss per share was $(0.68) for Q3 2021, compared to earnings per share of $5.09 for Q3 2020[8] - Exploration expense increased from $0 in Q3 2020 to $(946,245) in Q3 2021, reflecting increased exploration activities on 100% owned properties[8] Condensed Consolidated Statements of Cash Flows This statement presents the company's cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :----------------------------------------- | :------------------------------ | :------------------------------ | | Net cash used in operating activities | $(1,552,681) | $(740,131) | | Net cash provided/(used) by investing activities | $(6,636,050) | $30,952,200 | | Net cash provided/(used) by financing activities | $(43,560) | $3,165,622 | | NET INCREASE/(DECREASE) IN CASH | $(8,232,291) | $33,377,691 | | CASH, BEGINNING OF PERIOD | $35,220,588 | $3,011,918 | | CASH AND RESTRICTED CASH, END OF PERIOD | $26,988,297 | $36,389,609 | - Net cash used in operating activities increased to $(1,552,681) in Q3 2021 from $(740,131) in Q3 2020[10] - Net cash from investing activities shifted from a $30,952,200 inflow in Q3 2020 (due to the sale of Peak Gold JV interest) to a $(6,636,050) outflow in Q3 2021 (due to the acquisition of Alaska Gold Torrent, LLC)[10] - The company experienced a net decrease in cash of $(8,232,291) in Q3 2021, contrasting with a net increase of $33,377,691 in Q3 2020[10] Condensed Consolidated Statement of Shareholders' Equity This statement presents changes in the company's equity, including common stock, paid-in capital, and accumulated deficit Condensed Consolidated Statement of Shareholders' Equity | Metric | June 30, 2021 | September 30, 2021 | | :----------------------------------- | :------------ | :----------------- | | Common Shares Outstanding | 6,675,746 | 6,685,746 | | Common Stock Amount | $66,757 | $66,857 | | Additional Paid-In Capital | $69,509,606 | $70,487,797 | | Accumulated Deficit | $(35,027,588) | $(39,599,801) | | Total Shareholders' Equity | $34,548,775 | $30,954,853 | - Total Shareholders' Equity decreased by $3,593,922 to $30,954,853 at September 30, 2021, primarily due to a net loss of $(4,572,213) for the period[12] - Stock-based compensation increased additional paid-in capital by $1,021,851 for the three months ended September 30, 2021[12] Notes to the Unaudited Condensed Consolidated Financial Statements These notes provide detailed explanations and additional information for the condensed consolidated financial statements - The notes provide detailed explanations for the financial statements, covering the company's organization, significant accounting policies, and specific transactions[14] - Key areas include the investment in Peak Gold JV, acquisition of Lucky Shot Property, related party transactions, stock-based compensation, and commitments and contingencies[14] 1. Organization and Business This note describes the company's primary business activities and organizational structure, focusing on Alaskan gold exploration - Contango ORE, Inc. (CORE) engages in gold ore and associated minerals exploration in Alaska through a 30.0% interest in Peak Gold, LLC (Manh Choh Project), wholly-owned Alaska Gold Torrent, LLC (Lucky Shot Property), and wholly-owned Contango Minerals Alaska, LLC (various State of Alaska mining claims)[15] - The Peak Gold JV approved an $18.3 million budget for calendar