Idaho Strategic Resources(IDR) - 2021 Q4 - Annual Report

Financial Performance - Cash and cash equivalents decreased to $1,976,518 in 2021 from $2,539,945 in 2020, representing a decline of approximately 22%[225] - Gold sales receivable increased to $408,187 in 2021, up from $264,779 in 2020, indicating a growth of about 54%[225] - Revenue from gold sales increased to $7,630,416 in 2021, up 34.4% from $5,674,947 in 2020[229] - The company reported a history of losses and expects continued losses, highlighting ongoing financial challenges[13] - Net loss attributable to Idaho Strategic Resources, Inc. was $3,160,169 in 2021, compared to a loss of $642,876 in 2020, indicating a significant increase in losses[230] - Total liabilities increased to $4,855,399 in 2021, up from $3,404,897 in 2020, representing a rise of 42.7%[228] - Stockholders' equity grew to $13,063,802 in 2021, compared to $11,264,164 in 2020, marking an increase of 16.0%[228] - The company incurred total other operating expenses of $3,548,163 in 2021, significantly higher than $1,062,652 in 2020, reflecting an increase of 233.5%[230] - The company’s exploration expenses surged to $1,417,605 in 2021, compared to $303,291 in 2020, an increase of 367.5%[230] - For the year ended December 31, 2021, total sales amounted to $7,630,416, an increase of 34.4% from $5,674,947 in 2020[312] Assets and Liabilities - Total current assets decreased to $2,937,312 in 2021 from $3,435,501 in 2020, a reduction of about 14%[225] - Inventories decreased to $213,722 in 2021 from $402,537 in 2020, showing a decline of approximately 47%[225] - Total assets rose to $17,919,201 in 2021, compared to $14,669,061 in 2020, reflecting a growth of 22.9%[227] - The total notes payable increased from $1,048,776 in 2020 to $1,625,901 in 2021, which is an increase of about 55%[288] - The asset retirement obligation balance remained relatively stable, decreasing slightly from $173,001 in 2020 to $172,348 in 2021[290] - Total deferred tax assets increased to $5,562,100 in 2021 from $4,427,900 in 2020, with a valuation allowance of $4,017,800[297] Mineral Properties and Exploration - Mineral properties increased significantly to $5,843,186 in 2021 from $3,455,233 in 2020, reflecting a rise of approximately 69%[225] - The addition of 508 acres to the Alder Gulch property was made for $1,699,965, enhancing the company's mineral property portfolio[213] - The Company is expanding its focus on Critical Minerals, particularly Rare Earth Elements (REEs), with ongoing projects in Idaho included in the U.S. national REE inventory[236] - The Company evaluates long-lived assets for impairment whenever events indicate that the carrying value may not be recoverable, with estimated future cash flows calculated based on production and metals prices[263] - The Company capitalizes significant payments related to mineral properties and expenses exploration costs as incurred[257][260] Stock and Financing - The company issued common stock for cash and warrants net of issuance costs totaling $2,580,000 in 2021, compared to $2,906,896 in 2020[233] - The Company issued convertible promissory notes totaling $1,750,000 in March 2021, with an interest rate of 8.0% and a maturity date in March 2024, convertible at $4.90 per share[317] - The Company converted $835,000 in debt for 331,349 shares of common stock in 2021[315] - The outstanding principal of the convertible notes is collateralized by the Alder Gulch property and other unencumbered real property[317] - The Company closed a private placement in February 2022, selling 360,134 units at $7.50 per unit, resulting in net proceeds of $2,701,000[320] Stock Options and Compensation - Stock-based compensation recognized for stock options granted in 2021 totaled $604,571, with options exercisable at $5.60[302] - As of December 31, 2021, the outstanding stock options had an intrinsic value of approximately $1,108,000 and a weighted average remaining term of 2.2 years[304] - The company resumed stock-based compensation in 2021 after forgoing awards in 2020, indicating a strategic shift in employee incentives[213] Related Party Transactions - Related party transactions included a note payable to Ophir Holdings, LLC, with a balance of $116,611 as of December 31, 2021, down from $154,312 in 2020[305] Other Significant Information - The assessment of ore reserves is a critical audit matter, impacting the valuation of mineral properties and requiring significant management estimates[219] - The company has sufficient cash flows from operations and existing cash to meet contractual obligations for the next 12 months[269] - The company has the largest private land position in the Greater Coeur d'Alene Mining District, consolidating over 7,000 acres of patented and unpatented land[235] - The company has a joint venture agreement with Crescent Silver, LLC, which includes a milling fee of $2.50 per tonne milled[291] - The company holds a 37% stake in Buckskin Gold and Silver Inc., with equity income recognized on the investment amounting to $3,782 for the year ended December 31, 2021[293] - The Company began trading on the NYSE American exchange under the symbol IDR on March 11, 2022[321]