Paramount Gold Nevada(PZG) - 2023 Q3 - Quarterly Report

Financial Performance - The net loss for the three months ended March 31, 2023, was $1,647,760, an increase of 22% compared to a net loss of $1,347,036 for the same period in 2022[87]. - For the nine months ended March 31, 2023, the net loss was $4,920,461, a decrease of 17% from a net loss of $5,963,204 in the prior year[87]. - Cash used in operating activities for the nine months ended March 31, 2023, amounted to $3,287,339, primarily for permitting, exploration activities, and general administrative costs[104]. - The Company expects to continue incurring losses due to ongoing costs related to property maintenance and general administrative expenses[106]. - The Company has substantial doubt about its ability to continue as a going concern within twelve months after the issuance of its financial statements[108]. Exploration and Permitting Activities - Exploration expenses for the three months ended March 31, 2023, were $597,315, representing a 9% increase from $549,368 in the same period of 2022[89]. - For the nine months ended March 31, 2023, exploration expenses decreased by 49% to $1,902,312 from $3,714,035 in the prior year[91]. - The Oregon State Technical Review Team accepted the Cultural Resources final baseline data report, a key condition for the company's permit application[79]. - The Federal Bureau of Land Management accepted the Plan of Operation for the proposed underground Grassy Mountain gold mine, initiating the Environmental Impact Statement process[79]. - The company expects to continue with state and federal permitting activities for the Grassy Mountain Project, with a drafting permits process that must be completed within 225 days[82]. - Exploration expenses are recorded as incurred, with no proven or probable reserves established to date[112]. Financial Position and Capital Needs - As of March 31, 2023, the company had cash and cash equivalents of $590,505, down from $2,484,156 as of June 30, 2022[101]. - The company has negative working capital of approximately $8.0 million, primarily due to current convertible notes and reclamation obligations[101]. - The Company anticipates needing approximately $5.3 million in capital to repay convertible notes and the note payable to Seabridge due in September 2023[107]. - Projected twelve-month cash expenditures include $3.2 million for corporate and general expenses, $3.0 million for permitting activities at the Grassy Mountain Project, and $3.0 million for E-Cell conversions at the Sleeper Gold Project[107]. - The Company plans to fund operations through equity and debt financing, as well as the sale of royalties, but there is no assurance that additional financing will be available[108]. Share Issuance and Borrowing - The company issued 1,393,757 shares under its equity offering program for net proceeds of $473,688 during the nine months ended March 31, 2023[102]. - The Company borrowed a total of $1,500,000 from Seabridge, with $1,000,000 borrowed during the nine months ended March 31, 2023, and an additional $500,000 borrowed subsequently[103]. Stock Options and Financial Arrangements - The Company utilizes a Monte Carlo simulation to value stock options granted, which are generally granted with an exercise price equal to the market price at the date of grant[113]. - The Company is not currently involved in any off-balance sheet arrangements that could materially affect its financial condition[117].