Idaho Strategic Resources(IDR) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2024 reached $5,898,938, a significant increase of 76% compared to $3,341,596 in Q1 2023[15] - Gross profit for Q1 2024 was $2,838,237, up from $865,599 in Q1 2023, reflecting a gross margin improvement[15] - Net income attributable to Idaho Strategic Resources, Inc. for Q1 2024 was $2,171,109, compared to $60,599 in Q1 2023, marking a substantial increase[15] - Operating income for Q1 2024 was $2,141,973, a significant increase from $13,023 in Q1 2023, reflecting increased revenue while maintaining a stable cost structure[84] - Net income for Q1 2024 was $2,155,814 compared to $44,186 in Q1 2023, marking a 35-fold increase year over year[84] Cash and Liquidity - Cash and cash equivalents increased to $5,295,457 as of March 31, 2024, up from $2,286,999 at the end of Q1 2023[12] - The company reported a net cash provided by operating activities of $2,579,853 for Q1 2024, compared to $160,762 in Q1 2023, indicating improved operational efficiency[19] - Cash and cash equivalents at the end of the period were $5,295,457, up from $2,013,804 at the end of Q1 2023, indicating improved liquidity[85] Assets and Liabilities - Total assets grew to $28,700,298 as of March 31, 2024, compared to $23,889,789 at the end of Q1 2023, indicating strong asset growth[12] - Total liabilities increased to $4,306,451 as of March 31, 2024, up from $3,354,191 in Q1 2023, primarily due to an increase in long-term notes payable[13] - The company’s accumulated deficit decreased to $(15,039,529) as of March 31, 2024, from $(17,210,638) at the end of Q1 2023, reflecting improved profitability[13] Shareholder Information - The company issued 127,152 shares of common stock for cash, netting $847,492 in Q1 2024[17] - The weighted average common shares outstanding for basic earnings per share increased to 12,513,374 in Q1 2024 from 12,200,857 in Q1 2023[16] - The company issued 123,365 shares at $5.50 and 35,088 shares at $5.70 in a private placement, generating net proceeds of $878,503 in the first quarter of 2024[55] - Subsequent to March 31, 2024, the company issued 29,763 shares for net proceeds of $166,673 in exchange for outstanding warrants[61] Sales and Production - For the three-month period ended March 31, 2024, total sales amounted to $5,898,938, a significant increase from $3,341,596 in the same period of 2023, representing a growth of approximately 76%[42] - Gold sales reached $6,121,129 for the three-month period ended March 31, 2024, compared to $3,484,034 in 2023, indicating a year-over-year increase of about 76%[42] - Gold production at the Golden Chest Mine totaled approximately 10,300 tonnes, with an average grade of 13.9 grams per tonne, contributing to a total of 3,620 tonnes mined[76] - The company processed 10,300 dry metric tonnes at the New Jersey mill with a flotation feed head grade of 10.31 grams per tonne and a gold recovery rate of 93.0%[76] Costs and Expenses - Cash cost per ounce decreased to $846.92 in Q1 2024 from $1,287.32 in Q1 2023, while all-in sustaining costs (AISC) per ounce decreased to $1,097.09 from $1,540.20[82] - The company capitalized interest expense of $19,377 for the three-month period ended March 31, 2024, down from $22,961 in the same period of 2023, a decrease of 15.3%[51] Investments and Development - The company has capitalized deferred development costs during the mine development stage, which includes costs for infrastructure improvements[29] - The company holds a 65% ownership in NJMJV, which is consolidated in the financial statements, and had an account receivable of $1,598 from Crescent Silver, LLC as of March 31, 2024[46] - The company has three REE exploration properties in Idaho, which are expected to benefit from anticipated demand in electrification and defense spending[67] - The company plans to initiate a core drilling exploration program at the Golden Chest starting in Q2 2024, which may increase AISC for the remainder of the year[84] Compliance and Regulatory - The Company has included mine safety disclosures as required by the Dodd-Frank Act, ensuring compliance with regulatory standards[98] - The Company has filed various certifications under the Sarbanes-Oxley Act, demonstrating adherence to financial reporting regulations[99] - The Company is committed to maintaining transparency and compliance with regulatory requirements through its filings and disclosures[101] Future Outlook - The company expects cash flows from operations and existing cash to be sufficient to conduct planned operations and meet contractual obligations for the next 12 months[40] - The company is evaluating the impact of new accounting standards issued by the FASB, including ASU 2023-07 and ASU 2023-09, which may affect future disclosures[37][38]