LEASES

12 Months Ended

Dec. 31, 2025

LEASES

LEASES

NOTE 8 – LEASES

Philipsburg Operating Lease

In September 2024, the Company executed a contract to lease a metals concentration facility located in Philipsburg, Montana. The Company amended this lease in March 2025 by extending the term of the lease to September 2, 2026 and modifying the fixed monthly lease payments to $10,000 per month through the month of June 2025, $20,000 per month during the months of July 2025 to October 2025, and $95,000 per month thereafter to the end of the lease term. The $95,000 per month payment included a fixed monthly fee of $45,000 and a minimum milling fee of $50,000 per month. An additional payment of $50 per ton was to be paid each month in the last twelve months of the lease for all milling in excess of 1,000 tons per month. The Company did not include any milling fee payments above the minimum in its lease liability as it was not deemed probable at that time. The Company recorded the present value of the original fixed lease cost in September 2024 over the lease term as a lease liability and ROU asset. As a result of the amendment in March 2025, the Company reduced the ROU asset and corresponding lease liability by $37,448. The Company used its incremental borrowing rate of 3.49% when determining the present value of future payments of this operating lease as the rate implicit in the lease was not readily determinable.

During the years ended December 31, 2025 and 2024, the Company recognized lease expense, including initial direct costs (“IDC”), related to this lease of $389,542 and $235,280, respectively, within “Cost of Revenues” in the Consolidated Statements of Operations. Cash paid for this lease was $100,000 and $45,000 for the years ended December 31, 2025 and 2024, respectively, all of which are classified within operating cash flows. The Company paid $10,000 of IDC at the inception of the original lease agreement.

On September 22, 2025, the lessor terminated the Philipsburg operating lease agreement one year early. This event resulted in derecognition of the associated account balances, specifically reducing operating lease liabilities by $631,690, right-of-use assets by $151,868, and prepaid rent by $10,000. The resulting difference was a non-cash gain on lease termination of $469,822, which was included in the Consolidated Statements of Operations as a separate item within the Operating Expenses section. In addition, no termination penalties were incurred or incentives received in connection with the lease termination. Machinery and equipment with a net book value of $29,621, which had been used at the Philipsburg location, was transferred to a different operating site and unpaid operating charges, such as utility and labor costs incurred through the termination date, were recognized separately as ordinary operating expenses and not included in the calculation of the gain.

Dallas Operating Lease

In the first quarter of 2025, the Company executed a contract to lease office space for its corporate headquarters located in Dallas, Texas with a lease term of 24 months and total fixed payments during the term of $3,945 per month, or $94,680 in total. The Company is amortizing the lease on a straight-line basis over the term of the lease. The Company recorded the present value of the lease payments over the term as a lease liability and an ROU asset. The Company’s incremental borrowing rate of 3.49% was used as the discount rate since the rate implicit in the lease was not readily determinable. The lease does not include any transfer of ownership of the office space at the end of the lease, nor any option to extend the lease or purchase the facility, nor any residual value guarantees. The Company

cannot terminate the lease without cause and must provide the office space to the lessor at the end of the lease in the same condition as it was received.

The lease liability related to this operating lease, which represents the present value of the lease payments, and corresponding ROU asset were both $63,416 at inception of the lease and $27,887 as of December 31, 2025. During 2025, the Company recognized $43,395 of lease expense related to this lease in “General and administrative” in the Consolidated Statements of Operations. Cash paid for this lease was $43,395, all of which was classified within operating cash flows. The Company made a security deposit payment of $3,945 at the inception of the lease. There were no payments made or expense recorded for this lease in 2024.

Canada Operating Lease

On October 1, 2025, the Company leased office space located in Sudbury, Ontario, Canada with a lease term of 60 months that expires on September 30, 2030. The Company is required to make monthly base rent payments of $1,050 in Canadian dollars which are converted to U.S. dollars using the spot exchange rate in effect on the payment date. The Company recorded $22,772 in U.S. dollars as the present value of the rent payments as a lease liability and corresponding ROU asset and is amortizing the lease on a straight-line basis over the term of the lease. Since the monthly rent payments are made in Canadian dollars, the lease liability was initially measured using the spot exchange rate in effect on the lease commencement date and is remeasured into U.S. dollars at each reporting date with any resulting foreign currency transaction gains or losses recognized in earnings. The Company’s incremental borrowing rate of 3.49% was used as the discount rate since the rate implicit in the lease was not readily determinable. The lease does not include any transfer of ownership of the office space at the end of the lease, nor any option to purchase the facility, nor any residual value guarantees. The Company has the option to renew or extend the lease for one additional term of five years, provided written notice is given to the landlord at least six months prior to the lease expiring. The Company did not consider the additional lease term covered by the renewal option in the initial lease liability since exercise of the renewal option was not reasonably certain at lease commencement.

During 2025, the Company recorded lease expense in U.S. dollars of $2,711 for this lease in “General and administrative” in the Consolidated Statements of Operations. Lease payments totaling $2,750 were made and included in operating cash flows. The Company also made a security deposit payment of $1,223 at the inception of the lease. There were no payments made or expense recorded for this lease in 2024.

The following table summarizes expense and cash payments for operating leases during the periods noted:

	Years ended
	December 31,
	2025		2024
Operating lease expense	$	435,648	$	235,280
Cash paid for operating lease liability		146,145		45,000
Cash paid for security deposit		5,168		10,000

The following table contains the weighted average remaining lease term and discount rate for operating leases as of the end of the period:

	As of December 31,
	2025
Remaining lease term - operating lease	31 months
Discount rate - operating lease	3.49	%

The table below presents a maturity analysis of the future minimum lease payments for operating leases as of December 31, 2025:

Twelve months ending December 31,	Total
2026	$	58,273
2027		14,878
2028		10,933
2029		10,933
2030		8,198
Total operating lease payments		103,215
Less: discount on lease liability		(55,109)
Total operating lease liability		48,106
Less: current portion of operating lease liability		(34,103)
Noncurrent operating lease liability	$	14,003