BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2024

BUSINESS SEGMENTS

BUSINESS SEGMENTS

NOTE 13 – BUSINESS SEGMENTS

The Company has two reportable segments: antimony and zeolite. Our antimony segment consists of:

· Our facility located in the Burns Mining District of Sanders County in Montana that processes ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals, and

· Our two facilities in our USAMSA subsidiary located in Mexico that process ore primarily into antimony metal and a lower grade of antimony oxide.

Our Montana facility processes ore containing antimony and precious metals, which consist of gold and silver. The gold and silver in this ore represent all precious metals processing and sales of the Company. Even though these are different types of metals, our precious metals operations and financial results are included in our antimony segment for several reasons. Our ore processing costs related to antimony, gold, and silver cannot be separated between antimony and precious metals. Also, our chief operating decision maker reviews the operating results of our Montana facility that includes both antimony and precious metals processing and sales. Therefore, our precious metals operations and financial results are included in our antimony segment.

Our zeolite segment consists of our facility located in Preston, Idaho that mines, processes, and sells zeolite.

The accounting policies of these segments are the same as those described in the basis of presentation and significant accounting policies in Note 2 of the Notes to Consolidated Financial Statements in this Annual Report.

The chief operating decision maker evaluates the performance of the Company’s reportable segments based on segment profit or loss from operations, which is inclusive of all respective expenses. The profitability target of each segment is at the profit or loss from operations level, which is how the chief operating decision maker assesses performance. The chief operating decision maker also uses profit or loss from operations to allocate capital and personnel to the segments, which is typically done to improve the efficiency and effectiveness of operations or for expansion of operations, and ultimately to increase profit from operations. Included in profit or loss from operations is an allocation of centralized costs based on each segment’s total expense relative to the Company’s total expense. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each business requires different expertise to ensure quality products are produced in an efficient manner and because each business has a different customer base. Both businesses started as separate units with management selected based on specific skill sets and knowledge related to the product and the industry. The Company’s chief operating decision maker is the chief executive officer.

The Company has no active operations at, nor any revenue being generated from the following four components of its business: Los Juarez, Mexico, Ontario, Canada, Alaska, and Philipsburg, Montana. Also, the chief operating decision maker does not regularly review the operating results of these components. Therefore, these components have been included in the “All Other” category for segment reporting. Total expense related to these components was $751,762 and $114,639 for the years ended December 31, 2024 and 2023, respectively. All expenses related to these components for the year end December 31, 2023 relate to Los Juarez, Mexico.

Prior year segment reporting was recast to conform to the current year segment reporting related to the following: precious metals, Los Jaurez, Mexico, and centralized costs. First, precious metals is included in the antimony segment for the year ended December 31, 2024, whereas precious metals was a reportable segment for the year ended December 31, 2023. Revenue related to the precious metals segment was $525,087 and $326,496 for the years ended December 31, 2024 and 2023, respectively. Second, our Los Juarez, Mexico component or location is included in the “All Other” category for the year ended December 31, 2024, whereas Los Juarez, Mexico was included in the antimony reportable segment for the year ended December 31, 2023. There was no revenue related to the Los Juarez, Mexico component for the years ended December 31, 2024 and 2023, and the Los Juarez, Mexico loss from operations was $104,785 and $114,639 for the years ended December 31, 2024 and 2023, respectively. Third, centralized costs were allocated to the segments for the year ended December 31, 2024, whereas centralized costs were included in the antimony reportable segment for the year ended December 31, 2023. For the year ended December 31, 2023, centralized costs in the antimony reportable segment decreased by $342,146 and centralized costs in the zeolite reportable segment and “All Other” category increased by $331,467 and $10,679, respectively.

Total assets by segment at December 31, 2024 and December 31, 2023 were as follows: 

Total Assets	December 31, 2024		December 31, 2023
Antimony segment:	$	27,230,312	$	21,429,671
Zeolite segment		5,604,003		5,474,010
All other		1,808,287		1,191,314
Total assets	$	34,642,602	$	28,094,995

Total capital expenditures by segment for the years ended December 31, 2024 and 2023 were as follows: 

	For the years ended
Capital expenditures	December 31, 2024		December 31, 2023
Antimony segment	$	81,405	$	244,172
Zeolite segment		291,016		1,284,500
All other		58,175		-
Total capital expenditures	$	430,596	$	1,528,672

The zeolite segment’s capital expenditures for the years ended December 31, 2024 excludes $402,722 related to a wheel loader purchased with a note payable.

Selected segment operational information for the years ended December 31, 2024 and 2023 were as follows:

For the year ended December 31, 2024	Antimony		Zeolite			All Other			Total
Total revenues	$	11,996,287	$	2,941,675		$	-		$	14,937,962
Depreciation and amortization	$	705,047	$	364,209		$	16,491		$	1,085,747
Income (loss) from operations	$	977,127	$	(2,616,177	)	$	(751,762	)	$	(2,390,812	)
Other income									$	660,408
Income tax expense										-
Net loss									$	(1,730,404	)

For the year ended December 31, 2023	Antimony			Zeolite			All Other			Total
Total revenues	$	6,230,976		$	2,462,179		$	-		$	8,693,155
Depreciation and amortization		684,644			258,741			16,060			959,445
Income (loss) from operations		(5,858,289	)		(1,096,073	)		(114,639	)		(7,069,001	)
Other income										$	720,714
Income tax expense											-
Net loss										$	(6,348,287	)