Paramount Gold Nevada(PZG) - 2023 Q2 - Quarterly Report

Financial Performance - The net loss for the three months ended December 31, 2022, was $1,432,485, a decrease of 47% compared to a net loss of $2,702,425 for the same period in 2021[82] - For the six months ended December 31, 2022, the net loss was $3,272,701, down 29% from a net loss of $4,616,170 in the previous year[82] Exploration Expenses - Exploration expenses for the three months ended December 31, 2022, were $465,402, a decrease of 76% from $1,907,861 in the same period of 2021[84] - For the six months ended December 31, 2022, exploration expenses totaled $1,304,997, down 59% from $3,164,668 in the prior year[86] - Exploration expenses are recorded as incurred, with no proven or probable reserves established to date[108] Compensation and Professional Fees - Salary and benefits for the three-month period ended December 31, 2022, increased by 21% to $260,920 from $216,063 in the previous year[88] - Directors' compensation for the six months ended December 31, 2022, increased by 77% to $58,574 compared to $33,118 in the same period of 2021[91] - Professional fees for the three months ended December 31, 2022, were $135,295, an increase of $114,245 from $21,050 in the previous year[92] Cash and Financing - As of December 31, 2022, the company had cash and cash equivalents of $1,311,359, down from $2,484,156 as of June 30, 2022[96] - The company issued 455,099 shares under its equity offering program for net proceeds of $158,513 during the six months ended December 31, 2022[97] - The company borrowed $1,000,000 from Seabridge during the six months ended December 31, 2022, under a loan agreement with a principal amount of up to $1,500,000[98] - Cash used in operating activities for the six months ended December 31, 2022, was $2,301,310, primarily for permitting, exploration, salaries, and general administration costs[99] - The company anticipates requiring approximately $5.3 million in capital to repay convertible notes and a note payable due in September 2023[102] - Projected twelve-month cash expenditures include $3.2 million for corporate, land claim maintenance, and general expenses[102] - The company expects to fund operations with $3.0 million allocated to the Grassy Mountain Project and $0.25 million for the Sleeper Gold Project[103] - The company has historically relied on equity and debt financing, with no assurance of future financing availability[104] - The continuation of the company as a going concern is dependent on sufficient capital to maintain operations and repay debt due in September 2023[104] Management and Accounting Practices - Stock option grants are valued using a lattice approach and Monte Carlo simulation, with performance conditions for vesting[110] - The company is not currently involved in any off-balance sheet arrangements that could materially affect its financial condition[112] - Management evaluates estimates related to long-lived assets and asset retirement obligations, which may differ from actual results[111]