• Filing Date: 2017-03-31
  • Form Type: 10-K
  • Description: Annual report
v3.7.0.1
5. Inventories
12 Months Ended
Dec. 31, 2016
Inventory Disclosure [Abstract]  
Inventories

The major components of the Company's inventories at December 31, 2016 and 2015 were as follows:

 

    2016     2015  
Antimony Metal   $ 112,300     $ 102,207  
Antimony Oxide     326,126       332,068  
Antimony Concentrates     30,815       133,954  
Antimony Ore     181,815       319,631  
     Total antimony     651,056       887,860  
Zeolite     204,581       206,378  
    $ 855,637     $ 1,094,238  

 

At December 31, 2016 and 2015, antimony metal consisted principally of recast metal from antimony-based compounds, and metal purchased from foreign suppliers. Antimony oxide inventory consisted of finished product oxide held at the Company's plant. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material, carried at cost. At December 31, 2015, antimony inventory was valued at net realizable value. The Company's zeolite inventory consists of salable zeolite material held at BRZ's Idaho mining and production facility, and is carried at cost.

 

Gain on Liability Adjustment

 

During the first quarter of 2015, we noted that the amounts we were being invoiced by our Canadian supplier did not appear to be in compliance with our understanding of what we should be paying for the raw material supplied by them. We determined that since April of 2012 the supplier had been billing us for the entire amount of pounds of antimony delivered to us, even though we believed that we should only pay for 90% of the delivered antimony since we lose approximately 10% in processing. We contacted the supplier, and after a mutual review and modification of information that we had supplied to them, the supplier proposed a settlement of $914,770 to be credited against amounts we owed them. We agreed to the settlement amount and recorded it as a reduction of an account payable to the supplier and recognized a gain on liability adjustment in our statement of operations.