Idaho Strategic Resources(IDR) - 2022 Q4 - Annual Report

Operations and Mining Activities - Idaho Strategic Resources, Inc. operates the Golden Chest Mine, which is the primary source of revenue, located in the Murray Gold Belt of northern Idaho[35] - The company has over 7,000 acres of patented and unpatented land, making it the largest private landholder in the area[40] - The New Jersey Mill, majority-owned by the company, can process gold and silver ore at a capacity of 360 tonnes per day[42] - The company resumed production at the Golden Chest Mine in October 2016 and has consolidated 100% ownership of the mine[45] - The company is expanding its exploration activities in the Murray Gold Belt, creating a solid foundation of real estate holdings[44] - The company is actively pursuing Rare Earth Element (REE) exploration, with significant properties recognized by the USGS, including the Diamond Creek and Roberts projects[41] - The company focuses on areas known to host significant mineral deposits to mitigate exploration risks[46] - The company is participating in the USGS Earth MRI program and the Idaho Department of Commerce's IGEM program for its REE projects[41] Financial Performance - Revenue from gold sales increased to $9,580,189 in 2022, up 25.6% from $7,630,416 in 2021[280] - Gross profit for 2022 was $1,553,921, compared to $487,877 in 2021, reflecting a significant improvement[280] - Total current assets increased from $2,937,312 in 2021 to $3,360,292 in 2022, reflecting a growth of approximately 14.4%[276] - Cash and cash equivalents decreased from $1,976,518 in 2021 to $1,638,031 in 2022, a decline of about 17.1%[276] - Gold sales receivable rose significantly from $408,187 in 2021 to $909,997 in 2022, an increase of approximately 123.5%[276] - The total assets of the Company increased from $17,919,201 in 2021 to $20,983,621 in 2022, representing a growth of approximately 17.5%[276] - Stockholders' equity increased to $17,713,070 in 2022, up from $13,063,802 in 2021, representing a growth of 35.5%[280] - Net loss attributable to Idaho Strategic Resources, Inc. was $2,535,429 in 2022, an improvement from a net loss of $3,160,169 in 2021[280] Capital and Investment Activities - The company issued common stock for cash totaling $3,681,107 in 2022, compared to $2,580,000 in 2021, indicating increased capital raising efforts[284] - The Company purchased a 50% interest in Butte Highlands JV, LLC for a total consideration of $435,000, with Highland Mining, LLC managing the joint venture and funding all future project exploration and mine development costs[349] - As of December 31, 2022, the Company holds a 37% equity stake in Buckskin Gold and Silver, Inc., accounted for using the equity method[293] - The Company has a 65% ownership in NJMJV and utilizes the consolidated method for accounting, reflecting significant influence[295] Liabilities and Financial Commitments - Total liabilities decreased to $3,270,551 in 2022 from $4,855,399 in 2021, a reduction of approximately 32.5%[280] - The Company has a reclamation bond of $327,020 as of 2022, up from $103,320 in 2021, indicating increased financial commitments[276] - Future principal payments of debt for 2023 are projected at $859,393, with total future payments amounting to $2,174,461[345] - The total reclamation bond balance increased to $327,020 by December 31, 2022, including new bonds for milling operations and exploration projects[323] Exploration and Development Costs - Exploration expenses rose to $2,110,137 in 2022, up from $1,417,605 in 2021, reflecting a focus on expanding mineral exploration[280] - The Company capitalizes exploration costs once ore reserves are identified, with amortization calculated using the units-of-production method[317] Regulatory and Compliance Issues - The Company is subject to extensive federal, state, and local regulations, which could impact operational effectiveness and costs[51] Stock and Equity Information - The Company granted 165,000 stock options in September 2022, with total stock-based compensation recognized of $505,476, and an additional 15,000 stock options with compensation of $41,799[362] - The balance of stock options increased from 507,175 in 2021 to 535,953 in 2022, with an intrinsic value of approximately $123,045 as of December 31, 2022[368] - The Company had a total of 289,294 stock purchase warrants outstanding as of December 31, 2022, with exercise prices ranging from $5.60 to $7.00[360] Future Outlook and Reporting - The Company plans to deliver an annual report to shareholders in 2023, which will include audited financial statements[63] - Management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months[325]