þ |
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Montana
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81-0305822
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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P.O. Box 643, Thompson Falls, Montana
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59873
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(Address of principal executive offices)
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(Zip code)
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Large accelerated filer o
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Accelerated filer þ
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Non-accelerated filer o
(Do not check if a smaller reporting company)
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Smaller reporting company o
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Page | |||||
PART I – FINANCIAL INFORMATION | |||||
Item 1: | Financial Statements (unaudited) | 3 | |||
Item 2: | Management’s Discussion and Analysis of Results of Operations and Financial Condition | 13 | |||
Item 3: | Quantitative and Qualitative Disclosure about Market Risk | 15 | |||
Item 4: | Controls and Procedures | 15 | |||
PART II – OTHER INFORMATION | |||||
Item 1: | Legal Proceedings | 16 | |||
Item 2: | Unregistered Sales of Equity Securities and Use of Proceeds | 16 | |||
Item 3: | Defaults upon Senior Securities | 16 | |||
Item 4: | Mine Safety Disclosures | 16 | |||
Item 5: | Other Information | 17 | |||
Item 6: | Exhibits and Reports on Form 8-K | 17 | |||
SIGNATURE | 18 | ||||
CERTIFICATIONS |
(Unaudited)
|
||||||||
September 30, 2012
|
December 31, 2011
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 2,376,701 | $ | 5,427 | ||||
Certificates of deposit (Note 4)
|
242,800 | - | ||||||
Accounts receivable, less allowance for doubtful accounts of $4,031 and $7,600, respectively
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491,735 | 1,438,564 | ||||||
Inventories
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1,454,633 | 1,066,813 | ||||||
Other current assets
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57,659 | 56,208 | ||||||
Deferred tax asset
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470,869 | 396,558 | ||||||
Total current assets
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5,094,397 | 2,963,570 | ||||||
Properties, plants and equipment, net
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8,342,025 | 6,047,004 | ||||||
Restricted cash for reclamation bonds
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74,782 | 74,777 | ||||||
Other assets
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155,036 | 54,766 | ||||||
Total assets
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$ | 13,666,240 | $ | 9,140,117 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Checks issued and payable
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$ | - | $ | 113,908 | ||||
Deferred revenue
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31,668 | 43,760 | ||||||
Accounts payable
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970,845 | 994,940 | ||||||
Due to factor
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240,446 | 146,589 | ||||||
Accrued payroll, taxes and interest
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93,105 | 141,928 | ||||||
Other accrued liabilities
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32,434 | 119,292 | ||||||
Payables to related parties
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13,382 | 331,978 | ||||||
Long-term debt, current
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305,911 | 79,631 | ||||||
Total current liabilities
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1,687,791 | 1,972,026 | ||||||
Long-term debt, noncurrent
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136,993 | 158,218 | ||||||
Asset retirement and accrued reclamation costs
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247,530 | 241,500 | ||||||
Total liabilities
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2,072,314 | 2,371,744 | ||||||
Commitments and contingencies (Note 5)
|
||||||||
Stockholders' equity:
|
||||||||
Preferred stock $0.01 par value, 10,000,000 shares authorized:
|
||||||||
Series A: no shares issued and outstanding
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- | - | ||||||
Series B: 750,000 shares issued and outstanding
|
||||||||
(liquidation preference $877,500)
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7,500 | 7,500 | ||||||
Series C: 177,904 shares issued and outstanding
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||||||||
(liquidation preference $97,847)
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1,779 | 1,779 | ||||||
Series D: 1,751,005 shares issued and outstanding
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||||||||
(liquidation preference and cumulative dividends of $4,714,433)
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17,509 | 17,509 | ||||||
Common stock, $0.01 par vaue, 90,000,000 shares authorized;
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||||||||
61,786,822 and 59,349,300 shares issued and outstanding, respectively
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617,868 | 593,492 | ||||||
Additional paid-in capital
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30,723,895 | 25,635,129 | ||||||
Accumulated deficit
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(19,774,625 | ) | (19,487,036 | ) | ||||
Total stockholders' equity
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11,593,926 | 6,768,373 | ||||||
Total liabilities and stockholders' equity
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$ | 13,666,240 | $ | 9,140,117 |
United States Antimony Corporation and Subsidiaries
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Consolidated Statements of Operations (Unaudited)
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For the three months ended |
For the nine months ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2011
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September 30, 2012
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September 30, 2011
|
|||||||||||||
REVENUES
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$ | 2,655,123 | $ | 3,332,008 | $ | 9,206,978 | $ | 9,262,039 | ||||||||
COST OF REVENUES
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(2,517,497 | ) | (2,505,682 | ) | (8,659,703 | ) | (7,913,079 | ) | ||||||||
GROSS PROFIT
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137,626 | 826,326 | 547,275 | 1,348,960 | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
General and administrative
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239,093 | 28,582 | 655,077 | 198,186 | ||||||||||||
Professional fees
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54,722 | 34,764 | 187,366 | 160,604 | ||||||||||||
TOTAL OPERATING EXPENSES
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293,815 | 63,346 | 842,443 | 358,790 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS
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(156,189 | ) | 762,980 | (295,168 | ) | 990,170 | ||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
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2,789 | 248 | 6,337 | 4,326 | ||||||||||||
Interest expense
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(2,162 | ) | (2,569 | ) | (2,162 | ) | (4,204 | ) | ||||||||
Factoring expense
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(19,563 | ) | (52,586 | ) | (70,907 | ) | (126,000 | ) | ||||||||
TOTAL OTHER INCOME (EXPENSE)
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(18,936 | ) | (54,907 | ) | (66,732 | ) | (125,878 | ) | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES
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(175,125 | ) | 708,073 | (361,900 | ) | 864,292 | ||||||||||
INCOME TAX (EXPENSE) BENEFIT
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- | - | 74,311 | (24,426 | ) | |||||||||||
NET INCOME (LOSS)
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$ | (175,125 | ) | $ | 708,073 | $ | (287,589 | ) | $ | 839,866 | ||||||
Net income (loss) per share of
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||||||||||||||||
common stock:
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||||||||||||||||
Basic
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$ |
Nil
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$ | 0.01 | $ |
Nil
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$ | 0.01 | ||||||||
Diluted
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$ |
Nil
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$ | 0.01 | $ |
Nil
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$ | 0.01 | ||||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic
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61,786,822 | 59,150,784 | 61,051,943 | 58,157,638 | ||||||||||||
Diluted
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61,786,822 | 59,692,102 | 61,051,943 | 58,662,586 |
United States Antimony Corporation and Subsidiaries
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Consolidated Statements of Cash Flows (Unaudited)
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For the nine months ended
|
||||||||
September 30, 2012
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September 30, 2011
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|||||||
Cash Flows From Operating Activities:
|
||||||||
Net income (loss)
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$ | (287,589 | ) | $ | 839,866 | |||
Adjustments to reconcile net income (loss) to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization expense
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349,375 | 297,866 | ||||||
Accretion of asset retirement obligation
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6,030 | - | ||||||
Common stock issued to directors for services
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176,191 | - | ||||||
Deferred income tax expense (benefit)
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(74,311 | ) | 21,926 | |||||
Change in:
|
||||||||
Accounts receivable, net
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946,829 | (123,002 | ) | |||||
Inventories
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(387,820 | ) | (1,099,035 | ) | ||||
Other current assets
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250,737 | (279,193 | ) | |||||
Other assets
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(100,275 | ) | (88,196 | ) | ||||
Accounts payable
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(24,095 | ) | 627,752 | |||||
Accrued payroll, taxes and interest
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(48,823 | ) | (12,302 | ) | ||||
Other accrued liabilities
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(86,858 | ) | (36,324 | ) | ||||
Deferred revenue
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(12,092 | ) | - | |||||
Payables to related parties
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(318,596 | ) | 28,158 | |||||
Net cash provided by operating activities
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388,703 | 177,516 | ||||||
Cash Flows From Investing Activities:
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||||||||
Purchase of certificates of deposit
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(242,800 | ) | (9 | ) | ||||
Purchase of properties, plants and equipment
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(2,292,246 | ) | (1,744,892 | ) | ||||
Net cash used by investing activities
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(2,535,046 | ) | (1,744,901 | ) | ||||
Cash Flows From Financing Activities:
|
||||||||
Net proceeds from (payments to) factor
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93,857 | 497,300 | ||||||
Proceeds from sale of common stock, net of offering costs
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4,624,763 | 1,160,218 | ||||||
Issuance of common stock pursuant to exercise of warrants
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60,000 | - | ||||||
Principal payments on long-term debt
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(147,095 | ) | (110,487 | ) | ||||
Payments received on stock subscription agreements
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- | 82,563 | ||||||
Change in checks issued and payable
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(113,908 | ) | - | |||||
Net cash provided by financing activities
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4,517,617 | 1,629,594 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
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2,371,274 | 62,209 | ||||||
Cash and cash equivalents at beginning of period
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5,427 | 448,861 | ||||||
Cash and cash equivalents at end of period
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$ | 2,376,701 | $ | 511,070 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||||||
Noncash investing and financing activities:
|
||||||||
Properties, plants and equipment acquired with long-term debt
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$ | 352,150 | $ | 239,900 | ||||
Properties, plants and equipment acquired with accounts payable
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- | 89,654 | ||||||
Common stock issued for prepaid directors fees
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$ | 426,819 | - | |||||
Common stock issued pursuant to cashless exercise of warrants
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$ | 253 | - |
For the Three Months Ended
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For the NineMonths Ended
|
|||||||||||||||
September 30, 2012
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September 30, 2011
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September 30, 2012
|
September 30, 2011
|
|||||||||||||
Warrants
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1,776,917 | 1,776,917 | ||||||||||||||
Convertible preferred stock
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1,751,005 | 1,751,005 | 1,751,005 | 1,751,005 | ||||||||||||
Total possible dilution
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3,527,922 | 1,751,005 | 3,527,922 | 1,751,005 | ||||||||||||
Basic weighted shares
|
||||||||||||||||
outstanding
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61,786,822 | 59,150,784 | 61,051,943 | 58,157,638 | ||||||||||||
Warrants
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- | 541,318 | - | 504,948 | ||||||||||||
Basic and diluted weighted shares outstanding
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61,786,822 | 59,692,102 | 61,051,943 | 58,662,586 |
September 30, 2012
|
December 31, 2011
|
|||||||
Antimony Metal
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$ | 176,139 | $ | 152,026 | ||||
Antimony Oxide
|
175,982 | 180,404 | ||||||
Antimony Ore
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878,467 | 644,113 | ||||||
Total antimony
|
1,230,588 | 976,543 | ||||||
Zeolite
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224,045 | 90,270 | ||||||
$ | 1,454,633 | $ | 1,066,813 |
Accounts Receivable
|
September 30, 2012
|
December 31, 2011
|
||||||
Accounts receivable - non factored
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$ | 255,320 | $ | 1,299,575 | ||||
Accounts receivable - factored with recourse
|
240,446 | 146,589 | ||||||
Less allowance for doubtful accounts
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(4,031 | ) | (7,600 | ) | ||||
Accounts receivable - net
|
$ | 491,735 | $ | 1,438,564 |
2012
|
2011
|
|||||||
Note payable toThermoFisher financial Services, bearing interest
|
||||||||
at 5.67%; payable in monthly installments of $3522; maturing
|
||||||||
September 2013; collateralized by equipment.
|
$ | 41,000 | $ | - | ||||
Note payable to De Lage Landen financial Services, bearing interest
|
||||||||
at 5.3%; payable in monthly installments of $549; maturing
|
||||||||
March 2016; collateralized by equipment.
|
21,004 | - | ||||||
Note payable to Catepillar Finance, bearing interest
|
||||||||
at 6.15%; payable in monthly installments of $2,032; maturing
|
||||||||
June 2015; collateralized by equipment.
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59,851 | 77,040 | ||||||
Note payable to CNH Capital America, LLC, bearing interest
|
||||||||
at 4.5%; payable in monthly installments of $505; maturing
|
||||||||
June 2013; collateralized by equipment.
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4,454 | 8,648 | ||||||
Note payable to GE Capital, bearing interest at 2.25%; payable in
|
||||||||
monthly installments of $359; maturing July 2013; collateralized by
|
||||||||
equipment.
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3,552 | 6,531 | ||||||
Note payable to Robert and Phyllis Rice, bearing interest
|
||||||||
at 1%; payable in monthly installments of $2,000; maturing
|
||||||||
March 2015; collateralized by equipment.
|
63,206 | 80,882 | ||||||
Note payable to De Lage Landen Financial Services
|
||||||||
at 5.2%; payable in monthly installments of $709; maturing
|
||||||||
July 2014; collateralized by equipment.
|
14,183 | 19,229 | ||||||
Note payable to Catepillar Finance, bearing interest
|
||||||||
at 6.15%; payable in monthly installments of $766; maturing
|
||||||||
August 2014; collateralized by equipment.
|
16,590 | 21,990 | ||||||
Note payable to De Lage Landen Financial Services
|
||||||||
at 5.2%; payable in monthly installments of $697; maturing
|
||||||||
January 2015; collateralized by equipment.
|
18,360 | 23,529 | ||||||
Note payable to Catepillar Finance, bearing interest
|
||||||||
at 5.95%; payable in monthly installments of $827; maturing
|
||||||||
September 2015; collateralized by equipment.
|
27,210 | - | ||||||
Note payable for Corral Blanco land, bearing interest
|
||||||||
at 6%; payable in three installments; maturing
|
||||||||
May 1, 2013; collateralized by land.
|
173,494 | - | ||||||
Total debt
|
442,904 | 237,849 | ||||||
Less current portion
|
(305,911 | ) | (79,631 | ) | ||||
Noncurrent portion
|
$ | 136,993 | $ | 158,218 |
Debt outstanding will mature as follows:
|
Twelve months ending
|
September 30,
|
|||
2013
|
$ | 305,911 | ||
2014
|
83,928 | |||
2015
|
49,821 | |||
2016
|
3,244 | |||
$ | 442,904 |
For the Nine Months Ended
|
||||||||
Largest Customers
|
September 30, 2012
|
September 30, 2011
|
||||||
Customer A
|
$ | 2,038,378 | $ | 1,074,963 | ||||
Customer B
|
2,033,470 | 1,932,345 | ||||||
Customer C
|
1,091,079 | 1,856,991 | ||||||
$ | 5,162,927 | $ | 4,864,299 | |||||
% of total revenues
|
56.10 | % | 52.50 | % |
Number of
|
Exercise
|
|||||||
Warrants
|
Prices
|
|||||||
Balance, December 31, 2010
|
725,000 | $ | 0.20-$0.75 | |||||
Warrants exercised
|
(125,000 | ) | $ | 0.30-$0.40 | ||||
Balance, December 31, 2011
|
600,000 | $ | 0.30-$0.60 | |||||
Warrants granted
|
1,684,667 | $ | 2.50-$4.50 | |||||
Warrants exercised
|
(250,000 | ) | $ | 0.30-$2.50 | ||||
Warrants expired
|
(150,000 | ) | $ | 0.40 | ||||
Balance, September 30, 2012
|
1,884,667 | $ | 0.25-$4.50 |
The above common stock warrants expire as follows:
|
||||||||
Year Ended December 31:
|
||||||||
2014
|
1,157,750 | |||||||
2015
|
476,917 | |||||||
Thereafter
|
250,000 | |||||||
1,884,667 |
September 30,
2012 |
As of
December 31, 2011 |
|||||||
Properties, plants and equipment, net:
|
||||||||
Antimony
|
||||||||
United States
|
$ | 1,774,326 | $ | 1,657,473 | ||||
Mexico
|
4,861,559 | 2,791,233 | ||||||
Subtotal Antimony
|
6,635,885 | 4,448,706 | ||||||
Zeolite
|
1,706,140 | 1,598,298 | ||||||
Total
|
$ | 8,342,025 | $ | 6,047,004 | ||||
Total Assets:
|
||||||||
Antimony
|
||||||||
United States
|
$ | 5,432,421 | $ | 2,387,425 | ||||
Mexico
|
5,960,744 | 4,291,187 | ||||||
Subtotal Antimony
|
11,393,165 | 6,678,612 | ||||||
Zeolite
|
2,273,075 | 2,461,505 | ||||||
Total
|
$ | 13,666,240 | $ | 9,140,117 |
For the three months ended
|
For the nine months ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2011
|
September 30, 2012
|
September 30, 2011
|
|||||||||||||
Capital expenditures:
|
||||||||||||||||
Antimony
|
||||||||||||||||
United States
|
$ | 96,206 | $ | 16,501 | $ | 158,644 | $ | 95,790 | ||||||||
Mexico
|
786,086 | 579,525 | 2,220,913 | 1,668,761 | ||||||||||||
Subtotal Antimony
|
882,292 | 596,026 | 2,379,557 | 1,764,551 | ||||||||||||
Zeolite
|
107,467 | 121,756 | 264,839 | 309,896 | ||||||||||||
Total
|
$ | 989,759 | $ | 717,782 | $ | 2,644,396 | $ | 2,074,447 |
For the three months ended
|
For the nine months ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2011
|
September 30, 2012
|
September 30, 2011
|
|||||||||||||
Revenues:
|
||||||||||||||||
Antimony
|
$ | 1,974,535 | $ | 2,649,889 | $ | 6,678,725 | $ | 7,337,484 | ||||||||
Precious metals
|
144,082 | 142,421 | 525,707 | 480,003 | ||||||||||||
Zeolite
|
536,506 | 539,698 | 2,002,546 | 1,444,552 | ||||||||||||
Total
|
$ | 2,655,123 | $ | 3,332,008 | $ | 9,206,978 | $ | 9,262,039 | ||||||||
For the three months ended
|
For the nine months ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2011
|
September 30, 2012
|
September 30, 2011
|
|||||||||||||
Gross profit:
|
||||||||||||||||
Antimony
|
$ | 156,059 | $ | 732,748 | $ | 421,037 | $ | 1,260,228 | ||||||||
Zeolite
|
(18,433 | ) | 93,578 | 126,238 | 88,732 | |||||||||||
Total
|
$ | 137,626 | $ | 826,326 | $ | 547,275 | $ | 1,348,960 | ||||||||
For the three months ended
|
For the nine months ended
|
|||||||||||||||
September 30, 2012
|
September 30, 2011
|
September 30, 2012
|
September 30, 2011
|
|||||||||||||
Depreciation and amortization:
|
||||||||||||||||
Antimony
|
$ | 76,914 | $ | 51,746 | $ | 192,020 | $ | 148,612 | ||||||||
Zeolite
|
55,077 | 53,617 | 157,355 | 149,254 | ||||||||||||
Total
|
$ | 131,991 | $ | 105,363 | $ | 349,375 | $ | 297,866 |
Results of Operations by Division
|
||||||||||||||||
Antimony - Combined USA and Mexico
|
3rd Qtr
|
3rd Qtr
|
Nine Months
|
Nine Months
|
||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Lbs of Antimony Metal USA
|
314,053 | 385,279 | 1,020,085 | 1,037,237 | ||||||||||||
Lbs of Antimony Metal Mexico:
|
57,545 | 45,918 | 233,163 | 166,789 | ||||||||||||
Total Lbs of Antimony Metal Sold
|
371,598 | 431,197 | 1,253,248 | 1,204,026 | ||||||||||||
Sales Price/Lb Metal
|
$ | 5.31 | $ | 6.15 | $ | 5.33 | $ | 6.09 | ||||||||
EBITDA/Lb Metal
|
$ | 0.62 | $ | 1.82 | $ | 0.49 | $ | 1.17 | ||||||||
Operating Income/Lb Metal
|
$ | 0.42 | $ | 1.70 | $ | 0.34 | $ | 1.05 | ||||||||
Gross antimony revenue - net of discount
|
$ | 1,974,535 | $ | 2,649,889 | $ | 6,678,725 | $ | 7,337,484 | ||||||||
Precious metals revenue
|
144,082 | 142,421 | 525,707 | 480,003 | ||||||||||||
Production costs - USA
|
(1,173,827 | ) | (1,639,741 | ) | (4,200,298 | ) | (5,128,984 | ) | ||||||||
Product cost - Mexico
|
(268,735 | ) | (214,437 | ) | (1,088,871 | ) | (778,905 | ) | ||||||||
Direct sales and freight
|
(63,225 | ) | (87,500 | ) | (277,204 | ) | (200,612 | ) | ||||||||
General and administrative
|
(246,148 | ) | (56,487 | ) | (702,626 | ) | (171,702 | ) | ||||||||
Mexico non-production costs
|
(135,049 | ) | (9,651 | ) | (316,346 | ) | (128,444 | ) | ||||||||
EBITDA
|
231,633 | 784,494 | 619,087 | 1,408,840 | ||||||||||||
Depreciation & amortization
|
(75,574 | ) | (51,746 | ) | (198,050 | ) | (148,612 | ) | ||||||||
Operating income - antimony
|
$ | 156,059 | $ | 732,748 | $ | 421,037 | $ | 1,260,228 | ||||||||
Zeolite
|
||||||||||||||||
Tons sold
|
2,260 | 2,819 | 8,960 | 8,662 | ||||||||||||
Sales Price/Ton
|
$ | 237.39 | $ | 191.45 | $ | 223.50 | $ | 166.77 | ||||||||
EBITDA/Ton
|
$ | 237.39 | $ | 191.45 | $ | 223.50 | $ | 166.77 | ||||||||
Operating Income (Loss)/Ton
|
$ | (8.16 | ) | $ | 33.20 | $ | 14.09 | $ | 10.24 | |||||||
Gross zeolite revenue
|
$ | 536,506 | $ | 539,698 | $ | 2,002,546 | $ | 1,444,552 | ||||||||
Production costs
|
(402,165 | ) | (262,645 | ) | (1,380,675 | ) | (835,758 | ) | ||||||||
Direct sales and freight
|
(39,659 | ) | (42,610 | ) | (129,378 | ) | (129,691 | ) | ||||||||
Royalties
|
(47,945 | ) | (24,266 | ) | (176,992 | ) | (121,317 | ) | ||||||||
General and administrative
|
(10,093 | ) | (62,982 | ) | (31,908 | ) | (119,800 | ) | ||||||||
EBITDA
|
36,644 | 147,195 | 283,593 | 237,986 | ||||||||||||
Depreciation
|
(55,077 | ) | (53,617 | ) | (157,355 | ) | (149,254 | ) | ||||||||
Operating income (Loss) - zeolite
|
$ | (18,433 | ) | $ | 93,578 | $ | 126,238 | $ | 88,732 | |||||||
Company-wide
|
||||||||||||||||
Gross revenue
|
$ | 2,655,123 | $ | 3,332,008 | $ | 9,206,978 | $ | 9,262,039 | ||||||||
Production costs
|
(1,844,727 | ) | (2,116,823 | ) | (6,669,844 | ) | (6,743,647 | ) | ||||||||
Other operating costs
|
(542,119 | ) | (283,496 | ) | (1,634,454 | ) | (871,566 | ) | ||||||||
EBITDA
|
268,277 | 931,689 | 902,680 | 1,646,826 | ||||||||||||
Depreciation & amortization
|
(130,651 | ) | (105,363 | ) | (355,405 | ) | (297,866 | ) | ||||||||
Operating income
|
137,626 | 826,326 | 547,275 | 1,348,960 | ||||||||||||
Net interest
|
627 | (2,321 | ) | 4,175 | 122 | |||||||||||
General and administrative costs
|
(239,093 | ) | (28,582 | ) | (443,059 | ) | (198,186 | ) | ||||||||
Board of Directors compensation
|
(212,018 | ) | ||||||||||||||
Professional fees
|
(54,722 | ) | (34,764 | ) | (187,366 | ) | (160,604 | ) | ||||||||
Factoring expense
|
(19,563 | ) | (52,586 | ) | (70,907 | ) | (126,000 | ) | ||||||||
Income tax benefit (expense)
|
74,311 | (24,426 | ) | |||||||||||||
Net income (loss)
|
$ | (175,125 | ) | $ | 708,073 | $ | (287,589 | ) | $ | 839,866 |
Silver/Gold
|
2009
|
2010
|
2011
|
2012 YTD
|
||||||||||||
Ounces Gold Shipped
|
31.797 | 101.127 | 161.711 | 72.609 | ||||||||||||
Ounces Silver Shipped
|
6,870.10 | 31,545.22 | 17,472.99 | 16,370.15 |
Financial Condition and Liquidity
|
||||||||
September 30, 2012
|
December 31, 2011
|
|||||||
Current Assets
|
$ | 5,094,397 | $ | 2,963,570 | ||||
Current liabilities
|
(1,687,791 | ) | (1,972,026 | ) | ||||
Net Working Capital
|
$ | 3,406,606 | $ | 991,544 | ||||
Cash provided (used) by operations
|
$ | 482,560 | $ | 564,041 | ||||
Cash (used) by investing
|
(2,535,046 | ) | (2,239,441 | ) | ||||
Cash provided (used) by financing:
|
||||||||
Principal paid on long-term debt
|
(147,095 | ) | (124,722 | ) | ||||
Sale of Stock
|
4,684,763 | 1,242,780 | ||||||
Other
|
(113,908 | ) | 113,908 | |||||
Net change in cash
|
$ | 2,371,274 | $ | (443,434 | ) |
●
|
The Company lacks proper segregation of duties. As with any company the size of ours, this lack of segregation of duties is due to limited resources. The president authorizes the majority of the expenditures and signs checks.
|
●
|
During its year-end audit, our independent registered accountants discovered material misstatements in our financial statements that required audit adjustments.
|
Mine
|
Mine Act §104 Violations (1)
|
Mine Act §104(b) Orders (2)
|
Mine Act §104(d) Citations and Orders (3)
|
Mine Act §(b)(2) Violations (4)
|
Mine Act §107(a) Orders (5)
|
Proposed Assessments from MSHA (In dollars$)
|
Mining Related Fatalities
|
Mine Act §104(e) Notice (yes/no) (6)
|
Pending Legal Action before Federal Mine Saftey and Health Review Commission (yes/no)
|
||||||||||||||||||||||
Bear River Zeolite
|
0 | 0 | 0 | 0 | 0 | $ | 2,282.00 | 0 |
No
|
No
|
By: | /s/ John C. Lawrence | Date: | |||
John C. Lawrence, Director and President | |||||
(Principal Executive) | |||||
By: | /s/ Daniel L. Parks | Date: | |||
Daniel L. Parks, Chief Financial Officer |
1.
|
I have reviewed this quarterly report on Form 10-Q of United States Antimony Corporation.
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
I have disclosed, based on my most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ John C. Lawrence | Date: | ___________________ | |
John C. Lawrence
President and Chief Executive Officer
|
6.
|
I have reviewed this quarterly report on Form 10-Q of United States Antimony Corporation.
|
7.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
8.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
9.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
10.
|
I have disclosed, based on my most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Daniel L. Parks | Date: | ___________________ | |
Daniel L. Parks
Chief Financial Officer
|
/s/ John C. Lawrence | Date: | ___________________ | |
John C. Lawrence
President and Chief Executive Officer
|
/s/ Daniel L. Parks | Date: | ___________________ | |
Daniel L. Parks
Chief Financial Officer
|
9. Stockholder's Equity (Details) (Warrant [Member], USD $)
|
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
|
Beginning balance, shares | 600,000 | 725,000 |
Warrants granted, shares | 1,684,667 | |
Warrants exercised, shares | (250,000) | (125,000) |
Warrants expired, shares | (150,000) | |
Ending balance, shares | 1,884,667 | 600,000 |
2014 | 1,157,750 | |
2015 | 476,917 | |
Thereafter | 250,000 | |
Total | 1,884,667 | |
Minimum [Member]
|
||
Beginning balance, Exercise Prices | 0.20 | |
Warrants granted, Exercise Prices | 2.50 | |
Warrants exercised, Exercise Prices | 0.30 | 0.30 |
Ending balance Exercise Prices | 0.25 | 0.30 |
Maximum [Member]
|
||
Beginning balance, Exercise Prices | 0.75 | |
Warrants granted, Exercise Prices | 4.50 | |
Warrants exercised, Exercise Prices | 2.50 | 0.40 |
Warrants expired, Exercise Prices | 0.40 | |
Ending balance Exercise Prices | 4.50 | 0.60 |
2. Income (Loss) Per Common Share (Details)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Net income (loss) per share of common stock: | ||||
Warrants | 1,776,917 | 1,776,917 | ||
Convertible preferred stock | 1,751,005 | 1,751,005 | 1,751,005 | 1,751,005 |
Total possible dilution | 3,527,922 | 1,751,005 | 3,527,922 | 1,751,005 |
Outstanding | 61,786,822 | 59,150,784 | 61,051,943 | 58,157,638 |
Warrants | 541,318 | 504,948 | ||
Basic and diluted weighted shares outstanding | 61,786,822 | 59,692,102 | 61,051,943 | 58,662,586 |
10. Business Segments (Details 2) (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Gross profit: | $ (156,189) | $ 762,980 | $ (295,168) | $ 990,170 |
MajorCustomers [Member]
|
||||
Revenues: | 2,655,123 | 3,332,008 | 9,206,978 | 9,262,039 |
Gross profit: | 137,626 | 826,326 | 547,275 | 1,348,960 |
Depreciation and amortization: | 131,991 | 105,363 | 349,375 | 297,866 |
Antimony [Member]
|
||||
Revenues: | 1,974,535 | 2,649,889 | 6,678,725 | 7,337,484 |
Gross profit: | 156,059 | 732,748 | 421,037 | 1,260,228 |
Depreciation and amortization: | 76,914 | 51,746 | 192,020 | 148,612 |
Precious Metals [Member]
|
||||
Revenues: | 144,082 | 142,421 | 525,707 | 480,003 |
Zeolite [Member]
|
||||
Revenues: | 536,506 | 539,698 | 2,002,546 | 1,444,552 |
Gross profit: | (18,433) | 93,578 | 126,238 | 88,732 |
Depreciation and amortization: | $ 55,077 | $ 53,617 | $ 157,355 | $ 149,254 |
4. Accounts Receivable and Due to Factor
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Due to Factor |
The Company factors designated trade receivables pursuant to a factoring agreement with LSQ Funding Group L.C., an unrelated factor (the Factor). The agreement specifies that eligible trade receivables are factored with recourse. We submit selected trade receivables to the factor, and receive 85% of the face value of the receivable by wire transfer. Upon payment by the customer, we receive the remainder of the amount due from the factor, less a one-time servicing fee of 2% for the receivables factored. This servicing fee is recorded on the consolidated statement of operations in the period of sale to the factor.
Trade receivables assigned to the Factor are carried at the original invoice amount less an estimate made for doubtful accounts. Under the terms of the recourse provision, the Company is required to reimburse the Factor, upon demand, for factored receivables that are not paid on time. Accordingly, these receivables are accounted for as a secured financing arrangement and not as a sale of financial assets. The allowance for doubtful accounts is based on managements regular evaluation of individual customers receivables and consideration of a customers financial condition and credit history. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Interest is not charged on past due accounts.
We present the receivables, net of allowances, as current assets and we present the amount potentially due to the Factor as a secured financing in current liabilities.
|