UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2024

 

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _____________ to ____________

 

Commission File No. 001-41320

 

IDAHO STRATEGIC RESOURCES, INC

(Name of small business issuer in its charter)

 

Idaho

 

82-0490295

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. employer identification No.)

 

201 N. Third Street, Coeur d’Alene, ID 83814

(Address of principal executive offices) (zip code)

 

(208) 625-9001

Registrant’s telephone number, including area code

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, $0.00 par value

IDR

NYSE American

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large Accelerated Filer

☐

Accelerated Filer 

☐

Non-Accelerated Filer   

☒

Small Reporting Company  

☒

 

 

Emerging Growth Company 

☐ 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes ☐  No ☒

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

At July 1, 2024, 12,958,574 shares of the registrant’s common stock were outstanding.

 

 

 

 

IDAHO STRATEGIC RESOURCES, INC

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD

ENDED JUNE 30, 2024

 

TABLE OF CONTENTS

 

PART I -FINANCIAL INFORMATION

3

 

 

 

 

 

ITEM 1.

Financial Statements

3

 

 

 

 

 

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

 

 

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

18

 

 

 

 

 

ITEM 4.

Controls and Procedures

18

 

 

 

 

PART II OTHER INFORMATION

19

 

 

 

 

 

ITEM 1.

Legal Proceedings

19

 

 

 

 

 

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

19

 

 

 

 

 

ITEM 3.

Defaults Upon Senior Securities

19

 

 

 

 

 

ITEM 4.

Mine Safety Disclosures

19

 

 

 

 

 

ITEM 5.

Other Information

19

 

 

 

 

 

ITEM 6.

Exhibits

20

 

 
2

Table of Contents

 

PART I - FINANCIAL INFORMATION

 

ITEM 1: FINANCIAL STATEMENTS

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

 

 

 

 

 

 

 

 

 

June 30,

2024

 

 

December 31,

2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$1,801,257

 

 

$2,286,999

 

Short term investments

 

 

6,344,725

 

 

 

-

 

Gold sales receivable

 

 

1,516,514

 

 

 

1,038,867

 

Inventories

 

 

766,612

 

 

 

876,681

 

Joint venture receivable

 

 

1,413

 

 

 

2,080

 

Investment in equity securities

 

 

-

 

 

 

5,649

 

Other current assets

 

 

172,036

 

 

 

236,837

 

Total current assets

 

 

10,602,557

 

 

 

4,447,113

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net of accumulated depreciation

 

 

10,492,298

 

 

 

10,233,640

 

Mineral properties, net of accumulated amortization

 

 

9,459,771

 

 

 

7,898,878

 

Investment in Buckskin Gold and Silver, Inc

 

 

339,047

 

 

 

338,769

 

Investment in joint venture

 

 

435,000

 

 

 

435,000

 

Reclamation bond

 

 

256,310

 

 

 

251,310

 

Deposits

 

 

600,267

 

 

 

285,079

 

Total assets

 

$32,185,250

 

 

$23,889,789

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$732,832

 

 

$484,221

 

Accrued payroll and related payroll expenses

 

 

286,187

 

 

 

266,670

 

Notes payable, current portion

 

 

745,132

 

 

 

978,246

 

Total current liabilities

 

 

1,764,151

 

 

 

1,729,137

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

295,874

 

 

 

286,648

 

Notes payable, long term

 

 

1,985,742

 

 

 

1,338,406

 

Total long-term liabilities

 

 

2,281,616

 

 

 

1,625,054

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

4,045,767

 

 

 

3,354,191

 

 

 

 

 

 

 

 

 

 

Commitments Notes 5 and 9

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding

 

 

-

 

 

 

-

 

Common stock, no par value, 200,000,000 shares authorized; June 30, 2024-12,958,574 and December 31, 2023- 12,397,615 shares issued and outstanding

 

 

38,264,643

 

 

 

34,963,739

 

Accumulated deficit

 

 

(12,881,656)

 

 

(17,210,638)

Total Idaho Strategic Resources, Inc stockholders’ equity

 

 

25,382,987

 

 

 

17,753,101

 

Non-controlling interest

 

 

2,756,496

 

 

 

2,782,497

 

Total stockholders' equity

 

 

28,139,483

 

 

 

20,535,598

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$32,185,250

 

 

$23,889,789

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
3

Table of Contents

 

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Six-Month Periods Ended June 30, 2024 and 2023

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Sales of products

 

$6,125,382

 

 

$12,024,320

 

 

$3,236,515

 

 

$6,578,111

 

Total revenue

 

 

6,125,382

 

 

 

12,024,320

 

 

 

3,236,515

 

 

 

6,578,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other direct production costs

 

 

2,596,027

 

 

 

5,154,940

 

 

 

2,099,890

 

 

 

4,247,850

 

Depreciation and amortization

 

 

455,930

 

 

 

957,718

 

 

 

343,042

 

 

 

671,079

 

Total costs of sales

 

 

3,051,957

 

 

 

6,112,658

 

 

 

2,442,932

 

 

 

4,918,929

 

Gross profit

 

 

3,073,425

 

 

 

5,911,662

 

 

 

793,583

 

 

 

1,659,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration

 

 

620,056

 

 

 

887,904

 

 

 

207,369

 

 

 

480,811

 

Management

 

 

90,313

 

 

 

199,413

 

 

 

55,568

 

 

 

124,479

 

Professional services

 

 

84,982

 

 

 

239,226

 

 

 

123,238

 

 

 

364,043

 

General and administrative

 

 

179,456

 

 

 

340,119

 

 

 

123,765

 

 

 

387,063

 

(Gain) loss on disposal of equipment

 

 

3,022

 

 

 

7,431

 

 

 

(6,344)

 

 

(224)

Total other operating expenses

 

 

977,829

 

 

 

1,674,093

 

 

 

503,596

 

 

 

1,356,172

 

Operating income

 

 

2,095,596

 

 

 

4,237,569

 

 

 

289,987

 

 

 

303,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (income) loss on investment in Buckskin Gold and Silver, Inc

 

 

1,589

 

 

 

(278)

 

 

(1,007)

 

 

(1,357)

Timber revenue net of costs

 

 

(6,049)

 

 

(19,406)

 

 

-

 

 

 

(20,724)

Loss on investment in equity securities

 

 

-

 

 

 

453

 

 

 

2,880

 

 

 

2,880

 

Gain on short term investments

 

 

(21,862)

 

 

(21,862)

 

 

-

 

 

 

-

 

Interest income

 

 

(38,606)

 

 

(58,241)

 

 

(18,756)

 

 

(37,693)

Interest expense

 

 

25,602

 

 

 

46,167

 

 

 

11,048

 

 

 

19,896

 

Total other (income) expense

 

 

(39,326)

 

 

(53,167)

 

 

(5,835)

 

 

(36,998)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

2,134,922

 

 

 

4,290,736

 

 

 

295,822

 

 

 

340,008

 

Net loss attributable to non-controlling interest

 

 

(22,951)

 

 

(38,246)

 

 

(31,971)

 

 

(48,384)

Net income attributable to Idaho Strategic Resources, Inc.

 

$2,157,873

 

 

$4,328,982

 

 

$327,793

 

 

$388,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-basic

 

$0.17

 

 

$0.34

 

 

$0.03

 

 

$0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common share outstanding-basic

 

 

12,836,205

 

 

 

12,674,789

 

 

 

12,256,523

 

 

 

12,228,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

$0.17

 

 

$0.34

 

 

$0.03

 

 

$0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding- diluted

 

 

13,043,026

 

 

 

12,904,998

 

 

 

12,259,438

 

 

 

12,232,638

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
4

Table of Contents

 

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited)

For the Three and Six-Month Periods Ended June 30, 2024 and 2023

 

 

 

Common Stock Shares

 

 

Common Stock Amount

 

 

Accumulated Deficit Attributable to Idaho Strategic Resources, Inc

 

 

Non-Controlling Interest

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2023

 

 

12,098,070

 

 

$33,245,622

 

 

$(18,368,384)

 

$2,835,832

 

 

$17,713,070

 

Contribution from non-controlling interest in New Jersey Mill Joint Venture

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,601

 

 

 

1,601

 

Issuance of common stock for cash, net of offering costs

 

 

158,453

 

 

 

878,503

 

 

 

-

 

 

 

-

 

 

 

878,503

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

60,599

 

 

 

(16,413)

 

 

44,186

 

Balance March 31, 2023

 

 

12,256,523

 

 

 

34,124,125

 

 

 

(18,307,785)

 

 

2,821,020

 

 

 

18,637,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution from non-controlling interest in New Jersey Mill Joint Venture

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,409

 

 

 

16,409

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

327,793

 

 

 

(31,971)

 

 

295,822

 

Balance June 30, 2023

 

 

12,256,523

 

 

$34,124,125

 

 

$(17,979,992)

 

$2,805,458

 

 

$18,949,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2024

 

 

12,397,615

 

 

 

34,963,739

 

 

 

(17,210,638)

 

 

2,782,497

 

 

 

20,535,598

 

Contribution from non-controlling interest in New Jersey Mill Joint Venture

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,598

 

 

 

1,598

 

Issuance of common stock for cash, net of offering costs

 

 

127,152

 

 

 

847,492

 

 

 

-

 

 

 

-

 

 

 

847,492

 

Issuance of common stock for warrants exercised

 

 

147,026

 

 

 

823,346

 

 

 

-

 

 

 

-

 

 

 

823,346

 

Issuance of common stock for stock options exercise

 

 

5,357

 

 

 

29,999

 

 

 

-

 

 

 

-

 

 

 

29,999

 

Issuance of common stock for cashless stock options exercise

 

 

5,887

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

2,171,109

 

 

 

(15,295)

 

 

2,155,814

 

Balance March 31, 2024

 

 

12,683,037

 

 

 

36,664,576

 

 

 

(15,039,529)

 

 

2,768,800

 

 

 

24,393,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution from non-controlling interest in New Jersey Mill Joint Venture

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,647

 

 

 

10,647

 

Issuance of common stock for cash, net of offering costs

 

 

137,864

 

 

 

1,313,392

 

 

 

-

 

 

 

-

 

 

 

1,313,392

 

Issuance of common stock for warrants exercised

 

 

29,763

 

 

 

166,673

 

 

 

-

 

 

 

-

 

 

 

166,673

 

Issuance of common stock for stock options exercise

 

 

21,429

 

 

 

120,002

 

 

 

-

 

 

 

-

 

 

 

120,002

 

Issuance of common stock for cashless stock options exercise

 

 

86,481

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net income (loss)

 

 

-

 

 

 

-

 

 

 

2,157,873

 

 

 

(22,951)

 

 

2,134,922

 

Balance June 30, 2024

 

 

12,958,574

 

 

$38,264,643

 

 

$(12,881,656)

 

$2,756,496

 

 

$28,139,483

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
5

Table of Contents

 

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six-Month Periods Ended June 30, 2024 and 2023

 

 

 

June 30,

 

 

 

2024

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$4,290,736

 

 

$340,008

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

957,718

 

 

 

671,079

 

Loss on disposal of equipment

 

 

7,431

 

 

 

(224)

Accretion of asset retirement obligation

 

 

9,226

 

 

 

7,856

 

Loss on investment in equity securities

 

 

453

 

 

 

2,880

 

Gain on short term investments

 

 

(21,862)

 

 

-

 

Equity income on investment in Buckskin Gold and Silver, Inc

 

 

(278)

 

 

(1,357)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

Gold sales receivable

 

 

(477,647)

 

 

69,709

 

Inventories

 

 

110,069

 

 

 

(36,979)

Joint venture receivable

 

 

667

 

 

 

372

 

Other current assets

 

 

64,801

 

 

 

70,402

 

Accounts payable and accrued expenses

 

 

248,611

 

 

 

(36,703)

Accrued payroll and related payroll expenses

 

 

19,517

 

 

 

56,303

 

Net cash provided by operating activities

 

 

5,209,442

 

 

 

1,143,346

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(583,841)

 

 

(343,356)

Deposits on equipment

 

 

(345,907)

 

 

-

 

Proceeds from sale of equipment

 

 

-

 

 

 

8,500

 

Additions to mineral property

 

 

(960,388)

 

 

(523,785)

Purchase of reclamation bond

 

 

(5,000)

 

 

-

 

Purchase of short term investments

 

 

(6,322,863)

 

 

 -

 

Proceeds from sale of investment in equity securities

 

 

5,196

 

 

 

-

 

Investment in equity securities

 

 

-

 

 

 

(11,100)

Net cash used by investing activities

 

 

(8,212,803)

 

 

(869,741)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of common stock, net of issuance cost

 

 

2,160,884

 

 

 

878,503

 

Proceeds from issuance of common stock for warrants exercised

 

 

990,019

 

 

 

-

 

Proceeds from issuance of common stock for stock options exercised

 

 

150,001

 

 

 

-

 

Principal payments on notes payable

 

 

(795,530)

 

 

(502,948)

Principal payments on notes payable, related parties

 

 

-

 

 

 

(75,183)

Contributions from non-controlling interest

 

 

12,245

 

 

 

18,010

 

Net cash provided by financing activities

 

 

2,517,619

 

 

 

318,382

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(485,742)

 

 

591,987

 

Cash and cash equivalents, beginning of period

 

 

2,286,999

 

 

 

1,638,031

 

Cash and cash equivalents, end of period

 

$1,801,257

 

 

$2,230,018

 

 

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit on equipment applied to purchase

 

$30,719

 

 

$76,110

 

Notes payable for equipment

 

$559,752

 

 

 

1,110,737

 

Notes payable for mineral property purchase

 

$650,000

 

 

 

-

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 
6

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

1. The Company and Significant Accounting Policies

 

These unaudited interim condensed consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc. (“IDR”, “Idaho Strategic” or the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair statement of the interim condensed consolidated financial statements have been included.

 

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's consolidated financial position and results of operations. Operating results for the three and six-month periods ended June 30, 2024, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024.

 

For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2023, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 25, 2024.

 

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the consolidated balance sheets and statements of operations.

 

Revenue Recognition

Gold Revenue Recognition and Receivables-Sales of gold sold directly to customers are recorded as revenues and receivables upon completion of the performance obligations and transfer of control of the product to the customer. For concentrate sales, the performance obligation is met, the transaction price can be reasonably estimated, and revenue is recognized generally at the time of shipment at estimated forward prices for the anticipated month of settlement. Due to the time elapsed from shipment to the customer and the final settlement with the customer, prices at which sales of concentrates will be settled are estimated. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. For sales of doré and metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer by the refiner.

 

Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 4 for more information on our sales of products.

 

Other Revenue Recognition-Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of the timber have both been completed. Sales of timber found on the Company’s mineral properties are not a part of normal operations.

 

Inventories

Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value.

 

Mine Exploration and Development Costs

The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drift, ramps, raises, and related infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces.

 

Fair Value Measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2023, the Company had equity securities measured at fair value using level 1 quoted prices and no liabilities required measurement at fair value. At June 30, 2024, the Company had short term investments in treasury securities that were classified as Level 1 assets that required measurement at fair value and no liabilities that required measurement at fair value on a recurring basis.

 

 
7

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

1. The Company and Significant Accounting Policies (continued)

 

Accounting for Investments in Joint Ventures (“JV”) and Equity Method Investments

Investment in JVs-For JVs where the Company holds more than 50% of the voting interest and has significant influence, the JV is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

 

For JVs in which the Company does not have joint control or significant influence, the cost method is used. For those JVs in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in JVs and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in JVs for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.

 

Equity Method Investments-Investments in companies and joint ventures in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At June 30, 2024, and December 31, 2023, the Company's 37% common stock holding of Buckskin Gold and Silver, Inc. (“Buckskin”) is accounted for using the equity method (Note 10).

At June 30, 2024 and December 31, 2023, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

 

 

 

June 30, 2024

 

December 31, 2023

 

JV/Equity

 

% Ownership

 

 

Significant Influence?

 

Accounting Method

 

% Ownership

 

 

Significant Influence?

 

Accounting Method

 

NJMJV

 

 

65%

 

Yes

 

Consolidated

 

 

65%

 

Yes

 

Consolidated

 

Butte Highlands JV, LLC

 

 

50%

 

No

 

Cost

 

 

50%

 

No

 

Cost

 

Buckskin

 

 

37%

 

Yes

 

Equity

 

 

37%

 

Yes

 

Equity

 

 

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2024 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.

 

Investments in Equity Securities

Investments in equity securities are generally measured at fair value. Unrealized gains and losses for equity securities resulting from changes in fair value are recognized in current earnings. If an equity security does not have a readily determinable fair value, we may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. At the end of each reporting period, we reassess whether an equity investment security without a readily determinable fair value qualifies to be measured at cost less impairment, consider whether impairment indicators exist to evaluate if an equity investment security is impaired and, if so, record an impairment loss. At the end of each reporting period, unrealized gains and losses resulting from changes in fair value are recognized in current earnings. Upon sale of an equity security, the realized gain or loss is recognized in current earnings.

 

New Accounting Pronouncement

In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations. The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture. The guidance is applicable to all entities involved in the formation of a joint venture. The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective application of the amendments are permitted. We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. We are currently evaluating the impact of this update on our consolidated financial statements and disclosures.

 

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

 

 
8

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

2. Going Concern

 

The Company is currently producing profitably from underground mining at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its profitable production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

 

3. Inventories

 

At June 30, 2024 and December 31, 2023, the Company’s inventories consisted of the following:

 

 

 

June 30, 2024

 

 

December 31, 2023

 

Concentrate inventory

 

 

 

 

 

 

In process

 

$12,400

 

 

$28,778

 

Finished goods

 

 

180,711

 

 

 

239,361

 

Total concentrate inventory

 

 

193,111

 

 

 

268,139

 

 

 

 

 

 

 

 

 

 

Supplies inventory

 

 

 

 

 

 

 

 

Mine parts and supplies

 

 

412,451

 

 

 

374,456

 

Mill parts and supplies

 

 

85,366

 

 

 

158,402

 

Core drilling supplies and materials

 

 

75,684

 

 

 

75,684

 

Total supplies inventory

 

 

573,501

 

 

 

608,542

 

 

 

 

 

 

 

 

 

 

Total

 

$766,612

 

 

$876,681

 

 

4. Sales of Products

 

Our products consist of both gold flotation concentrates which we sell to a single broker (H&H Metals), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery (Cascade Refining). At June 30, 2024, metals that had been sold but not finally settled included 6,358 ounces of which 2,666 ounces were sold at a predetermined price with the remaining 3,692 exposed to future price changes. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. Sales of products by metal type for the three and six-month periods ended June 30, 2024 and 2023 were as follows:

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

Gold

 

$6,285,048

 

 

$12,410,268

 

 

$3,399,049

 

 

$6,883,110

 

Silver

 

 

27,596

 

 

 

54,985

 

 

 

13,824

 

 

 

23,346

 

Less: Smelter and refining charges

 

 

(187,262)

 

 

(440,933)

 

 

(176,358)

 

 

(328,345)

Total

 

$6,125,382

 

 

$12,024,320

 

 

$3,236,515

 

 

$6,578,111

 

 

Sales by significant product type for the three and six-month periods ended June 30, 2024, and 2023 were as follows:

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

Concentrate sales to H&H Metal

 

$5,852,389

 

 

$11,751,327

 

 

$3,236,515

 

 

$6,440,006

 

Dore sales to refinery

 

 

272,993

 

 

 

272,993

 

 

 

-

 

 

 

138,105

 

Total

 

$6,125,382

 

 

$12,024,320

 

 

$3,236,515

 

 

$6,578,111

 

 

At June 30, 2024 our gold sales receivable balance related to contracts with H&H Metals and Cascade Refining of $1,516,514. At December 31, 2023 our gold sales receivable balance of $1,038,867, consisted only of amounts due from H&H Metals. There is no allowance for doubtful accounts.

 

5. Related Party Transactions

 

At June 30, 2024 and December 31, 2023, there were no notes payable to related parties. On May 10, 2023, the Company paid the remaining amount due to Ophir Holdings, a company owned by two officers and one former officer of the Company.

The Company leases office space from certain related parties on a month-to-month basis. $2,000 per month is paid to NP Depot LLC, a company owned by the Company’s president, John Swallow and approximately $1,700 is paid quarterly to Mine Systems Design, Inc. which is partially owned by the Company’s vice president, Grant Brackebusch. Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and for the three and six-month periods ended June 30, 2024 and 2023 are as follows:

 

June 30, 2024

 

 

June 30, 2023

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

$

7,688

 

 

$15,308

 

 

$6,040

 

 

$12,435

 

  

 
9

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

6. JV Arrangements

 

NJMJV Agreement 

The Company owns 65% of the NJMJV and has significant influence in its operations. Thus, the JV is included in the consolidated financial statements along with presentation of the non-controlling interest. At June 30, 2024 and December 31, 2023, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $1,413 and $2,080, respectively, for shared operating costs as defined in the JV agreement.

 

Butte Highlands JV, LLC

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the JV. Under the agreement, Highland will fund all future project exploration and mine development costs. The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the JV’s activities, it accounts for its investment on a cost basis.

 

7. Earnings per Share

 

Net income (loss) per share is computed by dividing the net amount excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. Such common stock equivalents are included or excluded from the calculation of diluted net income (loss) per share for each period as follows:

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

Incremental shares included in diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

125,446

 

 

 

129,410

 

 

 

2,915

 

 

 

3,794

 

Stock purchase warrants

 

 

38,066

 

 

 

46,550

 

 

 

-

 

 

 

-

 

 

 

 

163,512

 

 

 

175,960

 

 

 

2,915

 

 

 

3,794

 

Potentially dilutive shares excluded from diluted net income per share as inclusion would have an antidilutive effect:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

-

 

 

 

-

 

 

 

332,164

 

 

 

332,164

 

Stock purchase warrants

 

 

-

 

 

 

-

 

 

 

289,294

 

 

 

289,294

 

 

 

 

-

 

 

 

-

 

 

 

621,458

 

 

 

621,458

 

 

8. Property, Plant, and Equipment

 

Property, plant and equipment at June 30, 2024 and December 31, 2023 consisted of the following:

 

 

 

June 30, 2024

 

 

December 31, 2023

 

Mill

 

 

 

 

 

 

Land

 

$225,289

 

 

$225,289

 

Building

 

 

536,193

 

 

 

536,193

 

Equipment

 

 

4,192,940

 

 

 

4,192,940

 

 

 

 

4,954,422

 

 

 

4,954,422

 

Less accumulated depreciation

 

 

(1,527,563)

 

 

(1,430,323)

Total mill

 

 

3,426,859

 

 

 

3,524,099

 

 

 

 

 

 

 

 

 

 

Building and equipment

 

 

 

 

 

 

 

 

Buildings

 

 

624,657

 

 

 

624,657

 

Equipment

 

 

9,940,382

 

 

 

8,786,492

 

 

 

 

10,565,039

 

 

 

9,411,149

 

Less accumulated depreciation

 

 

(4,253,015)

 

 

(3,455,023)

Total building and equipment

 

 

6,312,024

 

 

 

5,956,126

 

 

 

 

 

 

 

 

 

 

Land

 

 

 

 

 

 

 

 

Bear Creek

 

 

266,934

 

 

 

266,934

 

BOW

 

 

230,449

 

 

 

230,449

 

Gillig

 

 

79,137

 

 

 

79,137

 

Highwater

 

 

40,133

 

 

 

40,133

 

Salmon property

 

 

136,762

 

 

 

136,762

 

Total land

 

 

753,415

 

 

 

753,415

 

 

 

 

 

 

 

 

 

 

Total

 

$10,492,298

 

 

$10,233,640

 

 

 
10

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

9. Mineral Properties

 

Mineral properties at June 30, 2024 and December 31, 2023 consisted of the following:

 

 

 

June 30, 2024

 

 

December 31, 2023

 

Golden Chest

 

 

 

 

 

 

Mineral Property

 

$4,234,362

 

 

$4,191,189

 

Infrastructure

 

 

3,346,469

 

 

 

2,814,164

 

Total Golden Chest

 

 

7,580,831

 

 

 

7,005,353

 

New Jersey

 

 

256,768

 

 

 

256,768

 

McKinley-Monarch

 

 

200,000

 

 

 

200,000

 

Butte Gulch

 

 

1,158,964

 

 

 

124,055

 

Potosi

 

 

150,385

 

 

 

150,385

 

Park Copper/Gold

 

 

78,000

 

 

 

78,000

 

Eastern Star

 

 

250,817

 

 

 

250,817

 

Less accumulated amortization

 

 

(215,994)

 

 

(166,500)

Total

 

$9,459,771

 

 

$7,898,878

 

 

In February 2024 the Company purchased the surface rights and subsequently cancelled the NSR from the previous agreement with the seller for a 169-acre parcel known as Butte Gulch adjacent to the Golden Chest. The Company had already owned the mineral rights to this property. The purchase price was $1,001,000 of which $351,000 was paid in cash and the remaining $650,000 is payable to the seller (monthly interest only payments of $2,750 at 5% interest, for three years with a balloon payment of $650,000 at the end of the term).

 

For the three and six-month periods ended June 30, 2024 and 2023, interest expense was capitalized in association with the ramp access project at the Golden Chest Mine as follows.

 

June 30, 2024

 

 

June 30, 2023

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

$

23,797

 

 

$43,174

 

 

$19,374

 

 

$42,335

 

 

 
11

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

10. Notes Payable

 

At June 30, 2024 and December 31, 2023, notes payable are as follows:

 

 

 

June 30,

2024

 

 

December 31,

2023

 

Building in Salmon, Idaho, 60-month note payable, 7.00% interest payable monthly through June 2027, monthly payments of $2,500 with a balloon payment of $260,886 in July 2027

 

$292,565

 

 

$297,230

 

Butte Gulch vacant mineral property, 5.00% interest payable monthly through January 2027, monthly interest only payments of $2,750 with a balloon payment of $650,000 in February 2027

 

 

650,000

 

 

 

-

 

Resemin Muki Bolter, 36-month note payable, 7.00% interest payable monthly through January 2025, monthly payments of $14,821, Paid off early

 

 

-

 

 

 

186,557

 

Paus 2 yd LHD, 60-month note payable, 4.78% interest rate payable through September 2024, monthly payments of $5,181

 

 

20,498

 

 

 

50,672

 

Paus 2 yd LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847

 

 

4,833

 

 

 

33,541

 

CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303

 

 

-

 

 

 

604

 

CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627

 

 

-

 

 

 

3,713

 

Two CarryAll transports, 36-month note payable, 6.3% interest rate payable monthly through May 2025, monthly payments of $1,515

 

 

16,159

 

 

 

24,591

 

CarryAll transport, 36-month note payable, 6.3% interest rate payable monthly through June 2025, monthly payments of $866

 

 

10,051

 

 

 

14,843

 

Two CarryAll transports, 48-month note payable, 5.9% interest rate payable monthly through June 2027, monthly payments of $1,174

 

 

38,644

 

 

 

44,447

 

CarryAll transport, 48-month note payable, 5.9% interest rate payable monthly through April 2028, monthly payments of $576

 

 

23,642

 

 

 

-

 

Sandvik LH203 LHD, 36-month note payable, 4.5% interest payable monthly through May 2024, monthly payments of $10,352

 

 

-

 

 

 

51,182

 

Sandvik LH202 LHD, 36-month note payable, 6.9% interest payable monthly through August 2025, monthly payments of $4,933

 

 

66,174

 

 

 

92,948

 

Doosan Compressor, 36-month note payable, 6.99% interest payable monthly through July 2024, monthly payments of $602

 

 

600

 

 

 

4,126

 

Komatsu WX04 LHD, 24-month note payable, 8.24% interest rate payable monthly through April 2026, monthly payments of $16,642

 

 

338,729

 

 

 

-

 

Caterpillar 306 excavator, 48-month note payable, 4.6% interest payable monthly through November 2024, monthly payments of $1,512

 

 

7,471

 

 

 

16,251

 

Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125, Paid off early

 

 

-

 

 

 

216,880

 

Caterpillar R1600 LHD bucket, 24-month note payable, 2.06% interest rate payable monthly through April 2026, monthly payments of $4,572

 

 

94,228

 

 

 

-

 

Caterpillar AD30 underground truck, 40-month note payable, 8.01% interest rate payable through October 2026, monthly payments of $29,656

 

 

755,108

 

 

 

899,417

 

Caterpillar 259D3 skid steer, 36-month note payable, 8.50% interest rate payable monthly through December 2026, monthly payments of $1,836

 

 

49,460

 

 

 

58,156

 

SBA Economic Injury Disaster (“EIDL”) Loan 30 year note payable, 3.75% interest payable monthly through December 2054, monthly payments of $731

 

 

158,543

 

 

 

160,123

 

2022 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,152

 

 

49,069

 

 

 

54,418

 

2016 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,190

 

 

50,670

 

 

 

56,194

 

2020 Ford Transit Van, 72-month note payable, 9.24% interest rate payable monthly through December 2028, monthly payments of $1,060

 

 

46,669

 

 

 

50,759

 

2024 Dodge Ram, 60-month note payable, 9.94% interest rate payable monthly through February 2029, monthly payments of $1,293

 

 

57,761

 

 

 

-

 

Total notes payable

 

 

2,730,874

 

 

 

2,316,652

 

Due within one year

 

 

745,132

 

 

 

978,246

 

Due after one year

 

$1,985,742

 

 

$1,338,406

 

 

All notes except the SBA EIDL loan are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at June 30, 2024 are as follows:

 

12 months ended June 30,

 

 

 

2025

 

$745,132

 

2026

 

 

640,470

 

2027

 

 

1,121,377

 

2028

 

 

61,367

 

2029

 

 

19,503

 

2030

 

 

3,468

 

Thereafter

 

 

139,557

 

Total

 

$2,730,874

 

 

 
12

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

11. Investment in Buckskin

 

The investment in Buckskin is being accounted for using the equity method and resulted in recognition of change of equity value on the investment of loss of $1,589 and income of $278 for the respective three and six-month periods ended June 30, 2024 and income of $1,007 and $1,357 for the respective three and six-month periods ended June 30, 2023. The Company makes an annual payment of $12,000 to Buckskin per a mineral lease covering 218 acres of patented mining claims. As of June 30, 2024, the Company holds 37% of Buckskin’s outstanding shares.

 

12. Stockholders’ Equity

 

Stock Issuance Activity

 

In the first six months of 2024 the Company issued common stock as follows:

 

 

·

Sold 265,016 shares of common stock at an average price of $8.15 per share for net proceeds of $2,160,884.

 

·

Issued 176,789 shares of common stock in exchange for outstanding warrants for $990,019.

 

·

Issued 26,786 shares of common stock in exchange for outstanding stock options for $150,001.

 

·

Issued 92,368 shares of common stock for outstanding stock options via cashless exercise.

 

Stock Purchase Warrants Outstanding

 

The activity in stock purchase warrants is as follows:

 

Number of

Warrants

 

 

Exercise Prices

 

Balance December 31, 2022 and 2023

 

 

289,294

 

 

$5.60-7.00

 

Exercised

 

 

(147,026)

 

 

$5.60

 

Balance March 31, 2024

 

 

142,268

 

 

$5.60-7.00

 

Exercised

 

 

(29,763)

 

 

$5.60

 

Balance June 30, 2024

 

 

112,505

 

 

$5.60-7.00

 

 

These warrants expire as follows:

 

Shares

 

 

Exercise Price

 

 

Expiration Date

 

 

 

 

58,933

 

 

$5.60

 

 

October 15, 2024

 

 

 

 

53,572

 

 

$7.00

 

 

November 12, 2024

 

 

 

 

112,505

 

 

 

 

 

 

 

 

 

13. Stock Options

 

There were no stock options granted during the six-months ended June 30, 2024 and 2023.

 

Activity in the Company’s stock options is as follows:

 

 

 

Number of

Options

 

 

Weighted Average Exercise Prices

 

Balance December 31, 2022

 

 

535,953

 

 

$5.47

 

Forfeited

 

 

(58,504)

 

$5.47

 

Balance December 31, 2023

 

 

477,449

 

 

$5.47

 

Exercised

 

 

(22,073)

 

$5.50

 

Forfeited

 

 

(10,144)

 

$5.50

 

Balance March 31, 2024

 

 

445,232

 

 

$5.47

 

Exercised

 

 

(218,867)

 

$5.52

 

Outstanding and exercisable at June 30, 2024

 

 

226,365

 

 

$5.42

 

 

In the three and six-month periods ending June 30, 2024, 197,438 and 214,154 options were exchanged for 86,481 and 92,386 shares in a cashless exercise by employees. The intrinsic value of these options was $854,761 and $919,990 for the three and six-month periods ending June 30, 2024. At June 30, 2024, outstanding stock options have a weighted average remaining term of approximately 0.68 years and have an intrinsic value of $1,005,415.

 

 
13

Table of Contents

 

Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

14. Fair Value Measurements

 

The Company accounts for its financial instruments under ASC 820 Fair Value Measurement. During the six months ended June 30, 2024, there were no reclassifications in financial assets or liabilities between Level 1, 2 or 3 categories.

 

The following is a listing of the Company’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of June 30, 2024:

 

 

 

Level 1  

 

 

Level 2  

 

 

Level 3

 

 

Total  

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$6,344,725

 

 

$-

 

 

$-

 

 

$6,344,725

 

 

The following is a listing of the Company’s financial assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the hierarchy as of December 31, 2023:

 

 

 

Level 1  

 

 

Level 2  

 

 

Level 3

 

 

Total  

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment in equity securities

 

$5,649

 

 

$-

 

 

$-

 

 

$5,649

 

 

15. Subsequent Events

 

Subsequent to June 30, 2024, 50,000 shares of common stock have been issued for net proceeds of $520,506. Additionally, subsequent to June 30, 2024, 25,073 options were exchanged for 12,767 shares in a cashless exercise by employees.

  

 
14

Table of Contents

 

Forward-Looking Statements 

Certain statements contained in this Form 10-Q, including in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization. We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

 

These risks, uncertainties and other factors include, but are not limited to, those set forth under Part I, Item 1A.–Risk Factors in our 2023 Form 10-K and in Part II, Item 1.A.-Risk Factors in this Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Idaho Strategic or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Plan of Operation 

Idaho Strategic is a gold producer and critical minerals/rare earth element (“REE”) exploration company focused on a diversified asset base and cash flows from operations. Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Thorium Belt located near the city of Salmon in central Idaho.

 

The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and exploration for REEs.

 

The Company’s gold properties include: the Golden Chest Mine (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Eastern Star exploration property and other less advanced properties. The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties.

 

In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Lemhi Pass, Diamond Creek, and Mineral Hill. Following observation of industry dynamics and in early response to events impacting long-term domestic critical mineral supply and demand trends, the Company’s strategic expansion into REE’s also aids in diversifying its holdings. The Company believes the anticipated demand for these elements in the electrification of motorized vehicles, defense spending, and a renewed focus on the United States’ domestic critical minerals supply chain security may benefit domestic holders of such assets. The Company also believes it has a first-mover advantage with its addition of recognized REE land holdings in Idaho. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include drilling, trenching, sampling, and mapping of certain areas within the Company’s 19,090-acre landholdings.

 

Idaho Strategic has been able to demonstrate and utilize its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts. Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.' domestic REE supply chain.

 

Critical Accounting Estimates 

We have, besides our estimates of the amount of depreciation on our assets, two critical accounting estimates. The ounces of gold contained in our process and concentrate inventory is based on assays taken at the time the ore is processed and the ounces of gold contained in shipped concentrate which is based upon assays taken prior to shipment however subject to final assays at the refinery, these shipments are also subject to the fluctuation in gold prices between our shipment date and estimated and actual final settlement date. Also, the reclamation bond obligation on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations and may differ when we cease operations.

 

Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, we can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for the concentrate receivable will occur upon final settlement of the lots. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At June 30, 2024, metals that had been sold but not finally settled included 6,358 ounces of which 2,666 ounces were sold at a predetermined price with the remaining 3,692 exposed to future price changes. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.

 

 
15

Table of Contents

 

The asset retirement obligation and asset on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations and may differ when we cease operations. At June 30, 2024 we reviewed our December 31, 2023 estimate that the cost of the machine and man hours probable to be needed to put our properties in the condition required by our permits once we cease operations. The June 30, 2024 estimated costs would be $104,000 for the Golden Chest Mine property and $224,000 for the New Jersey Mine and Mill. For purposes of the estimate, we evaluated the expected life in years and costs that, initially, are comparable to rates that we would incur at the present. An expected present value technique is used to estimate the fair value of the liability. This includes inflating the estimated costs in today’s dollars using a reasonable inflation rate up to the date of expected retirement and discounting the inflated costs using a credit-adjusted risk-free rate. Upon initial recognition of the liability, the carrying amount of the related long-lived asset is increased by the same amount. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is amortized over the life of the related asset. We are adding to the liability each year, and amortizing the asset over the estimated life, which decreases our net income in total each year. Changes resulting from revisions to the timing or amount of the original estimate of undiscounted cash flows are recognized as either an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. Upward revisions of the amount of undiscounted estimated cash flows are discounted using the current credit-adjusted risk-free rate. Downward revisions in the amount of undiscounted estimated cash flows are discounted using the credit-adjusted risk-free rate that existed when the original liability was recognized. The Company reviews, on an annual basis, unless otherwise deemed necessary, the asset retirement obligations. Separately, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and able to be reasonably estimated.

 

Highlights during the second quarter of 2024 include:

 

REE Exploration

 

 

·

Continued discussions with various laboratories, universities, and partners to advance our understanding of Idaho’s rare earth mineralogy and broader mineral endowment.

 

Golden Chest/Operations

 

 

·

At the Golden Chest, ore mined from underground stopes totaled approximately 11,500 tonnes with all of the tonnage coming from H-Vein stopes.

 

 

 

 

·

A total of 3,230 cubic meters of cemented rockfill (“CRF”) were placed during the quarter which is a new quarterly record. The Main Access Ramp (“MAR”) and associated drifts and raises were advanced by about 100 meters during the quarter.

 

 

 

 

·

For the quarter ended June 30, 2024, a total of 9,260 dry metric tonnes (“dmt”) were processed at the Company’s New Jersey mill with a flotation feed head grade of 10.29 gpt gold and gold recovery of 93.6%.

 

 

 

 

·

An exploration program consisting of both underground and surface core drilling was started in the second quarter. Underground drilling was focused on exploring the Klondike area and the projected northerly strike of the H-vein. Surface drilling was started in Butte Gulch with plans to move to the northern area of the Golden Chest in the third quarter.

 

Results of Operations

 

Our financial performance during the quarter is summarized below:

 

 

·

Revenue increased 89.3% from $3,236,515 to $6,125,382 for the three-month periods ended June 30, 2023 and 2024, respectively, Year to date revenue increased 82.8% from $6,578,111 to $12,024,320 for the six-month periods ended June 30, 2023 and 2024, respectively. The increase in revenue is largely due to the increased gold production compared to previous periods as well as a higher average gold price recognized on ounces produced. Gold production is expected to remain at approximately this level for the remainder of the year as mining on the H-Vein continues.

 

 

 

 

·

Gross profit as a percentage of sales increased from 24.5% in the second quarter of 2023 to 50.2% in the second quarter of 2024. For the six-month periods ending June 30, 2024 and 2023 gross profit as a percentage of sales increased to 49.2% from 25.2%.

 

 

 

 

·

Exploration expense increased in both the three-month and six-month periods ending June 30, 2024, when compared to the same periods in 2023, due to an increase in surface and underground drilling activity at the Company’s Golden Chest Mine. Drilling is expected to continue throughout the third quarter which may result in an increased exploration expense when compared to prior periods.

 

 

 

 

·

Operating income for the three-month period ended June 30, 2024 was $2,095,596 which is an increase of $1,805,609 from operating income of $289,987 in the second quarter of 2023. For the six-month period ending June 30, 2024, operating income of $4,237,569 increased by $3,934,559 over the same period in 2023.

 

 

 

 

·

Other income increased $33,491 from $5,835 in the second quarter of 2023, to $39,326 in the same period in 2024. Other income increased $16,169 from $36,998 in the six months ending June 30, 2023, to $53,167 in the same period in 2024.The increase was from increased interest income and gains on treasuries from the company’s short term investment account due to having a higher cash balance.

 

 

16

Table of Contents

 

 

·

Net income increased $1,839,100 from net income of $295,822 for the three-month period ended June 30, 2023 to net income of $2,134,922 for the three-month period ending June 30, 2024. Net income increased $3,950,728 from net income of $340,008 in the six-month period ending June 30, 2023, to net income of $4,290,736 in the same period in 2024.

 

 

 

 

·

The consolidated net income for the six-month periods ending June 30, 2024 and June 30, 2023 included non-cash charges as follows: depreciation and amortization of $957,718 ($671,079 in 2023), loss on disposal of equipment of $7,431 (gain of $224 in 2023), accretion of asset retirement obligation of $9,226 ($7,856 in 2023), loss on investment in equity securities of $453 ($2,880 in 2023), gain on short term investment of $21,862 (none in 2023) and equity income on investment in Buckskin of $278 ($1,357 in 2023).

 

 

 

 

·

Cash cost per ounce for the three-month period ending June 30, 2024 remained relatively flat compared to the same period in 2023. For the six month-period ending June 30, 2024, cash cost per ounce decreased significantly due to a 55.2% increase in ounces produced when compared to the six-month period ending June 30, 2023.

 

 

 

 

·

All in sustaining cost per ounce increased during the three-month period ending June 30, 2024 compared to the same period in 2023 due to an increase in exploration costs from underground and surface drilling at the Golden Chest Mine, as well as higher sustaining capital from deposits on paste backfill plant equipment. For the six-month period ending June 30, 2024, all in sustaining costs decreased slightly as the increased exploration and sustaining capital was largely made up for by the increased production when compared to the six-month period ending June 30, 2023.

  

Cash Costs and All In Sustaining Costs (“AISC”) Reconciliation to Generally Accepted Accounting Principles (“GAAP”)

 

Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and AISC per ounce (non-GAAP).

 

The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce and all in sustaining costs per ounce for the Company’s gold production in the three and six-month periods ended June 30, 2024, and 2023.

 

Cash cost per ounce is an important operating measure that we utilize to measure operating performance. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all of the expenditures incurred to discover, develop, and sustain gold production.

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three Months

 

 

Six Months

 

 

Three Months

 

 

Six Months

 

Cost of sales and other direct production costs and depreciation and amortization

 

$3,051,957

 

 

$6,112,658

 

 

$2,442,932

 

 

$4,918,929

 

Depreciation and amortization

 

 

(455,930)

 

 

(957,718)

 

 

(343,042)

 

 

(671,079)

Change in concentrate inventory

 

 

30,224

 

 

 

110,069

 

 

 

(109,648)

 

 

(36,979)

Cash Cost

 

$2,626,251

 

 

$5,265,009

 

 

$1,990,242

 

 

$4,210,871

 

Exploration

 

 

620,056

 

 

 

887,904

 

 

 

207,369

 

 

 

480,811

 

Less REE exploration costs

 

 

(70,381)

 

 

(157,526)

 

 

(122,760)

 

 

(334,358)

Sustaining capital

 

 

484,092

 

 

 

929,748

 

 

 

214,107

 

 

 

334,856

 

General and administrative

 

 

179,456

 

 

 

340,119

 

 

 

123,765

 

 

 

387,063

 

Less stock-based compensation and other non-cash items

 

 

(9,262)

 

 

(16,832)

 

 

514

 

 

 

(9,155)

AISC

 

$3,830,212

 

 

$7,248,422

 

 

$2,413,237

 

 

$5,070,088

 

Divided by ounces produced

 

 

2,903

 

 

 

6,019

 

 

 

2,152

 

 

 

3,877

 

Cash cost per ounce

 

$904.67

 

 

$874.73

 

 

$924.83

 

 

$1,086.12

 

AISC per ounce

 

$1,319.40

 

 

$1,204.26

 

 

$1,121.39

 

 

$1,307.73

 

 

Financial Condition and Liquidity

 

 

 

For the Six-Months Ended June 30,

 

Net cash provided (used) by:

 

2024

 

 

2023

 

Operating activities

 

$5,209,442

 

 

$1,143,346

 

Investing activities

 

 

(8,212,803)

 

 

(869,741)

Financing activities

 

 

2,517,619

 

 

 

318,382

 

Net change in cash and cash equivalents

 

 

(485,742)

 

 

591,987

 

Cash and cash equivalents, beginning of period

 

 

2,286,999

 

 

 

1,638,031

 

Cash and cash equivalents, end of period

 

$1,801,257

 

 

$2,230,018

 

 

The Company is currently producing profitably from underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its profitable production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

 

 
17

Table of Contents

 

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not required for small reporting companies.

 

ITEM 4: CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures 

At June 30, 2024, our Vice President who also serves as our Chief Accounting Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), which disclosure controls and procedures are designed to insure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified by the Securities & Exchange Commission rules and forms.

 

Based upon that evaluation, it was concluded that our disclosure controls were effective as of June 30, 2024, to ensure timely reporting with the Securities and Exchange Commission. Specifically, the Company’s corporate governance and disclosure controls and procedures provided reasonable assurance that required reports were timely and accurately reported in our periodic reports filed with the Securities and Exchange Commission.

 

Changes in internal control over financial reporting 

There was no material change in internal control over financial reporting in the quarter ended June 30, 2024.

 

 
18

Table of Contents

 

PART II - OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Neither the constituent instruments defining the rights of the Company’s securities filers nor the rights evidenced by the Company’s outstanding common stock have been modified, limited or qualified.

 

During the second quarter of 2024, 29,763 shares of common stock were issued in exchange for outstanding warrants for net proceeds of $166,673. 21,429 shares of common stock were issued in exchange for outstanding stock options for net proceeds of $120,002 and 86,481 shares of common stock were issued for outstanding stock options via cashless exercise.

 

The Company relied on the transaction exemption afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D Rule 506(b). The common shares are restricted securities which may not be publicly sold unless registered for resale with the Securities and Exchange Commission or exempt from the registration requirements of the Securities Act of 1933, as amended.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

The Company has no outstanding senior securities.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this report.

 

ITEM 5. OTHER INFORMATION

 

None.

 

19

Table of Contents

 

ITEM 6. EXHIBITS

 

Exhibits

 

3.1

 

Amended and Restated Articles of Incorporation, incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021

3.2

 

Amended and Restated By-laws of Idaho Strategic Resources, Inc., incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021

10.1

 

Purchase and Sale Agreement dated January 16th, 2024, Promissory Note, Mortgage, and Termination of Royalty Deed and Warranty Deed, dated February 7th, 2024, by and among the Registrant and Bell Run Properties, L.L.C., filed as Exhibit 10.1 to the Company’s Form 10-Q as filed with the Securities and Exchange Commission on May 6, 2024, and incorporated herein by reference.

31.1*

 

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*

 

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*

 

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*

 

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

95*

 

Mine safety information listed in Section 1503 of the Dodd-Frank Act.

101.INS*

 

XBRL Instance Document

101.SCH*

 

XBRL Taxonomy Extension Schema Document

101.CAL*

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE*

 

XBRL Taxonomy Extension Presentation Linkbase Document

 

* Filed herewith.

 

20

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 IDAHO STRATEGIC RESOURCES, INC
    
By:/s/ John Swallow

 

 

John Swallow, 
  its: President and Chief Executive Officer 
  Date July 30, 2024 

 

 

 

 

 

By: 

/s/ Grant Brackebusch

 

 

 

Grant Brackebusch,

 

 

 

its: Vice President and Chief Financial Officer

 

 

 

Date: July 30, 2024

 

 

 
21

 

nullnullnullnullnullv3.24.2
Cover - shares
 6 Months Ended
Jun. 30, 2024
Jul. 01, 2024
Cover [Abstract]    
Entity Registrant Name IDAHO STRATEGIC RESOURCES, INC  
Entity Central Index Key 0001030192  
Document Type 10-Q  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Small Business true  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Document Period End Date Jun. 30, 2024  
Entity Filer Category Non-accelerated Filer  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2024  
Entity Common Stock Shares Outstanding   12,958,574
Entity File Number 001-41320  
Entity Incorporation State Country Code ID  
Entity Tax Identification Number 82-0490295  
Entity Address Address Line 1 201 N. Third Street  
Entity Address City Or Town Coeur d’Alene  
Entity Address State Or Province ID  
Entity Address Postal Zip Code 83814  
City Area Code 208  
Local Phone Number 625-9001  
Security 12b Title Common Stock, $0.00 par value  
Trading Symbol IDR  
Security Exchange Name NYSE  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
v3.24.2
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 1,801,257 $ 2,286,999
Short term investments 6,344,725 0
Gold sales receivable 1,516,514 1,038,867
Inventories 766,612 876,681
Joint venture receivable 1,413 2,080
Investment in equity securities 0 5,649
Other current assets 172,036 236,837
Total current assets 10,602,557 4,447,113
Property, plant and equipment, net of accumulated depreciation 10,492,298 10,233,640
Mineral properties, net of accumulated amortization 9,459,771 7,898,878
Investment in Buckskin Gold and Silver, Inc 339,047 338,769
Investment in joint venture 435,000 435,000
Reclamation bond 256,310 251,310
Deposits 600,267 285,079
Total assets 32,185,250 23,889,789
Current liabilities:    
Accounts payable and accrued expenses 732,832 484,221
Accrued payroll and related payroll expenses 286,187 266,670
Notes payable, current portion 745,132 978,246
Total current liabilities 1,764,151 1,729,137
Asset retirement obligations 295,874 286,648
Notes payable, long term 1,985,742 1,338,406
Total long-term liabilities 2,281,616 1,625,054
Total liabilities 4,045,767 3,354,191
Commitments Notes 5 and 9 0 0
Stockholders' equity:    
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding 0 0
Common stock, no par value, 200,000,000 shares authorized; June 30, 2024-12,958,574 and December 31, 2023- 12,397,615 shares issued and outstanding 38,264,643 34,963,739
Accumulated deficit (12,881,656) (17,210,638)
Total Idaho Strategic Resources, Inc stockholders' equity 25,382,987 17,753,101
Non-controlling interest 2,756,496 2,782,497
Total stockholders' equity 28,139,483 20,535,598
Total liabilities and stockholders' equity $ 32,185,250 $ 23,889,789