UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period
Commission File Number:
(Exact Name of Registrant as Specified in its Charter)
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code:
(
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
None |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
As of August 19, 2024, there were
TABLE OF CONTENTS
PART I. |
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ITEM 1. |
Unaudited Condensed Interim Consolidated Financial Statements |
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3 |
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Notes to Unaudited Condensed Interim Consolidated Financial Statements |
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8 |
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ITEM 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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24 |
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ITEM 3. |
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28 |
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ITEM 4. |
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PART II. |
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ITEM 1. |
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30 |
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ITEM 2. |
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30 |
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ITEM 3. |
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30 |
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ITEM 4. |
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30 |
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ITEM 5. |
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30 |
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ITEM 6. |
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31 |
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CERTIFICATIONS
EXHIBIT 31.1 |
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CHIEF EXECUTIVE OFFICER CERTIFICATION |
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EXHIBIT 31.2 |
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CHIEF FINANCIAL OFFICER CERTIFICATION |
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EXHIBIT 32.1 |
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CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 |
2
DYNARESOURCE, INC.
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
JUNE 30, 2024 AND DECEMBER 31, 2023
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2024 |
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2023 |
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(Unaudited) |
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(Audited) |
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ASSETS |
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Current assets |
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Cash |
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$ |
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$ |
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Accounts receivable |
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Inventories |
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Foreign tax receivable |
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Other current assets |
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Total current assets |
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Property and equipment (net of accumulated |
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depreciation and amortization of $ |
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Right-of-use assets, net |
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Mining concessions |
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Deferred tax asset, net |
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Foreign tax receivable |
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Other assets |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Current liabilities |
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Accounts payable |
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$ |
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$ |
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Accrued expenses |
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Derivative liabilities |
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Note payable |
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Current portion of operating lease payable |
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Installment notes payable |
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Total current liabilities |
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Operating lease payable, less current portion |
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Deferred tax liability |
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Asset retirement obligation |
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TOTAL LIABILITIES |
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TEMPORARY EQUITY |
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Series C Senior Convertible Preferred Stock, $ |
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Series D Senior Convertible Preferred Stock, $ |
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STOCKHOLDERS’ EQUITY (DEFICIT) |
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Common Stock, $ |
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Series E Senior Convertible Preferred Stock, $ |
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Preferred rights |
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Additional paid-in-capital |
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Treasury stock, |
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Accumulated other comprehensive income |
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Accumulated deficit |
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TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) |
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TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
3
DYNARESOURCE, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)
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Three Months |
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Three Months |
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Six Months |
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Six Months |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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REVENUE |
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$ |
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$ |
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COSTS AND EXPENSES OF MINING OPERATION |
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Mine production costs |
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Mine exploration costs |
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Production cost applicable to sales |
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Camp, warehouse and facilities |
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Transportation costs |
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Property holding costs |
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Facilities expansion costs |
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Exploration drilling |
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General and administrative |
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Stock Compensation Expense |
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Accretion expense |
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Depreciation and amortization |
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TOTAL OPERATING EXPENSES |
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NET OPERATING LOSS |
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OTHER INCOME (EXPENSE) |
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Foreign currency gains |
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Interest expense |
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Derivative mark-to-market gain |
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Other income |
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TOTAL OTHER INCOME (EXPENSE) |
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NET LOSS BEFORE TAXES |
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INCOME TAXES BENEFIT |
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NET LOSS |
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$ |
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$ |
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$ |
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$ |
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DEEMED DIVIDEND FOR SERIES C & D PREFERRED |
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NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
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$ |
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$ |
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$ |
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$ |
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LOSS PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC. |
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Basic loss per common share |
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$ |
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$ |
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$ |
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Weighted average shares outstanding – Basic |
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Diluted loss per common share |
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$ |
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$ |
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$ |
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Weighted average shares outstanding – Diluted |
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OTHER COMPREHENSIVE INCOME |
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Unrealized foreign currency translation gain (loss) |
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TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
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TOTAL COMPREHENSIVE LOSS |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
4
DYNARESOURCE, INC.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(Unaudited)
5
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Preferred A |
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Preferred E |
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Common |
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Preferred |
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Preferred |
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Paid In |
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Treasury |
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Treasury |
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Other Comp |
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Accumulated |
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Shares |
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Amount |
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Shares |
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Amount |
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Shares |
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Amount |
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Rights |
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Amount |
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Capital |
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Shares |
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Amount |
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Income |
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Deficit |
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Totals |
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THREE MONTHS ENDED JUNE 30, 2023 |
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Balance March 31, 2023 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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Purchase of Series A Preferred Stock |
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Cancellation of Series A Preferred Stock |
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Acquisition of Treasury Stock |
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Other Comprehensive Income |
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Net Income |
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Balance, June 30, 2023 |
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$ |
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$ |
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$ |
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SIX MONTHS ENDED JUNE 30, 2023 |
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Balance January 1, 2023 |
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$ |
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Purchase of Series A Preferred Stock |
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Cancellation of Series A Preferred Stock |
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Acquisition of Treasury Stock |
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Other Comprehensive Income |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
||||||||||||||
|
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|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
||||||||||||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
( |
) |
|
( |
) |
||||||||||||
|
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|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, June 30, 2023 |
|
— |
|
$ |
|
|
— |
|
$ |
— |
|
|
|
$ |
|
|
|
$ |
|
$ |
|
|
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
THREE MONTHS ENDED JUNE 30, 2024 |
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance March 31, 2024 |
|
— |
|
$ |
- |
|
|
— |
|
$ |
— |
|
|
|
$ |
|
|
|
$ |
|
$ |
|
|
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales of Series E Preferred Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales Issued for Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock Compensation - Vesting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, June 30, 2024 |
|
- |
|
$ |
- |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
$ |
|
|
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
SIX MONTHS ENDED JUNE 30, 2024 |
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance January 1, 2024 |
|
— |
|
$ |
- |
|
|
— |
|
$ |
— |
|
|
|
$ |
|
|
|
$ |
|
$ |
|
|
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales of Series E Preferred Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales Issued for Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stock Compensation - Vesting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, June 30, 2024 |
|
- |
|
$ |
- |
|
|
|
$ |