• Filing Date: 2017-03-31
  • Form Type: 10-K
  • Description: Annual report
v3.7.0.1
Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2016
Mar. 31, 2017
Jun. 30, 2016
Document And Entity Information      
Entity Registrant Name UNITED STATES ANTIMONY CORP    
Entity Central Index Key 0000101538    
Document Type 10-K    
Document Period End Date Dec. 31, 2016    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Is Entity a Well-known Seasoned Issuer? No    
Is Entity a Voluntary Filer? No    
Is Entity's Reporting Status Current? Yes    
Entity Filer Category Smaller Reporting Company    
Entity Public Float     $ 11,420,775
Entity Common Stock, Shares Outstanding   674,881,53.  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2016    
v3.7.0.1
Consolidated Balance Sheets - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash and cash equivalents $ 10,057 $ 133,543
Certificates of deposit 251,641 250,414
Accounts receivable, net 552,119 422,673
Inventories 855,637 1,094,238
Other current assets 23,101 235,458
Total current assets 1,692,555 2,136,326
Properties, plants and equipment, net 15,695,966 16,030,333
Restricted cash for reclamation bonds 63,274 76,012
Other assets 314,203 17,530
Total assets 17,765,998 18,260,201
Current liabilities:    
Checks issued and payable 35,682 0
Accounts payable 1,797,251 1,629,972
Due to factor 150,399 13,782
Accrued payroll, taxes and interest 213,695 221,446
Other accrued liabilities 122,968 141,545
Payables to related parties 14,525 32,396
Deferred revenue 78,730 78,730
Notes payable to bank 167,317 130,672
Income taxes payable (Note 13) 410,510 0
Long-term debt, current portion, net of discount 391,046 181,287
Total current liabilities 3,382,123 2,429,830
Long-term debt, net of discount and current portion 1,472,869 1,717,745
Hillgrove advances payable (Note 10) 1,134,221 1,254,846
Stock payable to directors for services 168,750 137,500
Asset retirement obligation and accrued reclamation costs 265,782 260,327
Total liabilities 6,423,745 5,800,248
Stockholders' equity:    
Preferred stock $0.01 par value, 10,000,000 shares authorized: Series A: -0- shares issued and outstanding 0 0
Series B: 750,000 shares issued and outstanding (liquidation preference $915,000 and $907,500 respectively) 7,500 7,500
Series C: 177,904 shares issued and outstanding (liquidation preference $97,847 both years) 1,779 1,779
Series D: 1,751,005 shares issued and outstanding (liquidation preference $4,920,178 and $4,879,029 respectively) 17,509 17,509
Common stock, $0.01 par value, 90,000,000 shares authorized; 67,066,278 and 66,316,278 shares issued and outstanding, respectively 670,662 663,162
Additional paid-in capital 36,074,733 35,890,733
Accumulated deficit (25,429,930) (24,120,730)
Total stockholders' equity 11,342,253 12,459,953
Total liabilities and stockholders' equity $ 17,765,998 $ 18,260,201
v3.7.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Stockholders' equity:    
Series A Preferred stock, par value $ 0.01 $ 0.01
Series A Preferred stock, authorized shares 10,000,000 10,000,000
Series A Preferred stock, issued shares 0 0
Series A Preferred stock, outstanding shares 0 0
Series B Preferred stock, par value $ 0.01 $ 0.01
Series B Preferred stock, authorized shares 10,000,000 10,000,000
Series B Preferred stock, issued shares 750,000 750,000
Series B Preferred stock, outstanding shares 750,000 750,000
Series B liquidation preference $ 915,000 $ 907,500
Series C Preferred stock, par value $ 0.01 $ 0.01
Series C Preferred stock, authorized shares 10,000,000 10,000,000
Series C Preferred stock, issued shares 177,904 177,904
Series C Preferred stock, outstanding shares 177,904 177,904
Series C liquidation preference $ 97,847 $ 97,847
Series D Preferred stock, par value $ 0.01 $ 0.01
Series D Preferred stock, authorized shares 10,000,000 10,000,000
Series D Preferred stock, issued shares 1,751,005 1,751,005
Series D Preferred stock, outstanding shares 1,751,005 1,751,005
Series D liquidation preference $ 4,920,178 $ 4,879,029
Common stock, par value $ 0.01 $ 0.01
Common stock, authorized shares 90,000,000 90,000,000
Common stock, issued shares 67,066,278 66,316,278
Common stock, outstanding shares 67,066,278 66,316,278
v3.7.0.1
Consolidated Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]    
REVENUES $ 11,890,135 $ 13,109,003
COST OF REVENUES 11,353,484 13,521,363
GROSS PROFIT (LOSS) 536,651 (412,360)
OPERATING EXPENSES:    
General and administrative 681,487 736,265
Salaries and benefits 483,937 436,897
Gain on liability adjustment (Note 3) 0 (914,770)
Hillgrove advance - earned credit (Note 9) (120,329) (142,170)
Professional fees 308,078 280,415
TOTAL OPERATING EXPENSES 1,353,173 396,637
INCOME (LOSS) FROM OPERATIONS (816,522) (808,997)
OTHER INCOME (EXPENSE):    
Gain on sale of equipment 0 5,200
Interest income 1,437 6,383
Interest expense (160,795) 0
Factoring expense (35,182) (41,117)
TOTAL OTHER INCOME (EXPENSE) (194,540) (29,534)
INCOME (LOSS) BEFORE INCOME TAXES (1,011,062) (838,531)
INCOME TAX PROVISION (298,138) 0
NET INCOME (LOSS) (1,309,200) (838,531)
Preferred dividends (48,649) (48,649)
Net income (loss) available to common shareholders $ (1,357,849) $ (887,180)
Net loss per share of common stock basic and diluted: $ (0.02) $ (0.01)
Weighted average shares outstanding basic and diluted: 66,781,757 66,207,241
v3.7.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
Preferred Stock
Common Stock
Additional Paid-in Capital
Notes Receivable for Stock Sales
Accumulated Deficit
Total
Beginning Balance - Shares at Dec. 31, 2014 2,678,909 66,027,453        
Beginning Balance - Amount at Dec. 31, 2014 $ 26,788 $ 660,274 $ 35,740,671 $ (150,000) $ (23,282,199) $ 12,995,534
Issuance of common stock to directors for services, Shares   183,825        
Issuance of common stock to directors for services, Amount   $ 1,838 123,162     125,000
Issuance of common stock to consultant for services and settlement agreement, Shares   105,000        
Issuance of common stock to consultant for services and settlement agreement, Amount   $ 1,050 56,900     57,950
Forgiveness of note receivable     (30,000) 30,000   0
Cash received on notes receivable       120,000   120,000
Net loss         (838,531) (838,531)
Ending Balance, Shares at Dec. 31, 2015 26,789,909 66,316,278        
Ending Balance, Amount at Dec. 31, 2015 $ 26,788 $ 663,162 35,890,733 0 (24,120,730) 12,459,953
Issuance of common stock to directors for services, Shares   550,000        
Issuance of common stock to directors for services, Amount   $ 5,500 132,000     137,500
Issuance of common stock to chief financial officer, Shares   200,000        
Issuance of common stock to chief financial officer, Amount   $ 2,000 52,000     54,000
Cash received on notes receivable           0
Net loss         (1,309,200) (1,309,200)
Ending Balance, Shares at Dec. 31, 2016 2,678,909 67,066,278        
Ending Balance, Amount at Dec. 31, 2016 $ 26,788 $ 670,662 $ 36,074,733 $ 0 $ (25,429,930) $ 11,342,253
v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash Flows From Operating Activities:    
Net income (loss) $ (1,309,200) $ (838,531)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:    
Depreciation and amortization 999,737 932,786
Amortization of debt discount 70,590 0
Gain on sale of equipment 0 (5,200)
Bad debt expense 0 18,668
Hillgrove advance earned credit (120,329) (142,170)
Accretion of asset retirement obligation 5,455 5,137
Common stock issued for services 54,000 57,950
Common stock payable for directors fees 168,750 137,500
Non-cash miscellaneous income (1,595) 0
Change in:    
Accounts receivable (129,446) 13,333
Inventories 238,601 339,301
Other current assets 212,356 (194,357)
Other assets (296,673) 49,382
Accounts payable 167,280 (191,701)
Accrued payroll, taxes and interest (7,751) 86,201
Other accrued liabilities (18,577) 66,115
Income taxes payable 410,510 0
Payables to related parties (17,871) 24,039
Net cash provided (used) by operating activities 425,837 358,453
Cash Flows From Investing Activities:    
Redemption of reclamation bonds 12,810 0
Proceeds from sale of equipment 0 5,200
Purchase of properties, plants and equipment (595,839) (1,709,237)
Net cash used by investing activities (583,029) (1,704,037)
Cash Flows From Financing Activities:    
Net proceeds from factor 136,617 468
Proceeds from Hillgrove advances 0 1,198,445
Proceeds from notes payable to bank 36,645 130,672
Principal paid notes to bank   0
Principal payments of long-term debt (175,238) (94,141)
Proceeds from long term debt   0
Proceeds from related party loans   0
Payments on related party loans   0
Checks issued and payable 35,682 0
Received on notes receivable for stock 0 120,000
Net cash provided by financing activities 33,706 1,355,444
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (123,486) 9,860
Cash and cash equivalents at beginning of year 133,543 123,683
Cash and cash equivalents at end of year 10,057 133,543
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid in cash (net of amount capitailzed) 14,694  
Income taxes paid in cash 13,090  
Noncash investing and financing activities:    
Properties, plants & equipment acquired with long-term debt 42,735 1,061,479
Properties, plants & equipment acquired with accrued liability 0 36,619
Imputed interest included in property, plant and equipment 26,796 57,088
Properties, plants & equipment acquired with other long term assets 0 586,893
Common stock payable issued to directors 137,500 125,000
Forgiveness of note receivable-stock $ 0 $ 30,000
v3.7.0.1
1. Background of Company and Basis of Presentation
12 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Background of Company and Basis of Presentation

AGAU Mines, Inc., predecessor of United States Antimony Corporation ("USAC" or "the Company"), was incorporated in June 1968 as a Delaware corporation to mine gold and silver. USAC was incorporated in Montana in January 1970 to mine and produce antimony products. In June 1973, AGAU Mines, Inc. was merged into USAC. In December 1983, the Company suspended its antimony mining operations when it became possible to purchase antimony raw materials more economically from foreign sources. The principal business of the Company has been the production and sale of antimony products.

 

During 2000, the Company formed a 75% owned subsidiary, Bear River Zeolite Company ("BRZ"), to mine and market zeolite and zeolite products from a mineral deposit in southeastern Idaho. In 2001, an operating plant was constructed at the zeolite site and zeolite production and sales commenced. During 2002, the Company acquired the remaining 25% of BRZ and continued to produce and sell zeolite products.

 

During 2005, the Company formed a 100% owned subsidiary, Antimonio de Mexico S.A. de C.V. (“AM”), to explore and develop potential antimony properties in Mexico.

 

During 2006, the Company acquired 100% ownership in United States Antimony, Mexico S.A. de C.V. (“USAMSA”), which became a wholly-owned subsidiary of the Company.

v3.7.0.1
2. Concentrations of Risk
12 Months Ended
Dec. 31, 2016
Risks and Uncertainties [Abstract]  
Concentrations of Risk

 

    For the Year Ended      

Sales to

Largest Customers

 

December 31,

2016

   

December 31,

2015

 
Mexichem Specialty Compounds Inc.   $ 2,108,998     $ 3,142,586  
East Penn Manufacturing Inc     1,147,854       1,236,250  
Kohler Corporation     1,474,854       1,736,914  
    $ 4,731,706     $ 6,115,750  
% of Total Revenues     39.80 %     46.70 %

 

Largest

Accounts Receivable

 

December 31,

2016

   

December 31,

2015

 
Gopher Resources         $ 141,570  
GE Lighting   $ 162,582          
Teck American Inc             80,946  
Kohler Corporation     151,500          
Wildfire Construction             43,327  
    $ 314,082     $ 265,843  
% of Total Receivables     83.90 %     62.90 %

 

The Company's revenues from antimony sales are strongly influenced by world prices for such commodities, which fluctuate and are affected by numerous factors beyond the Company's control, including inflation and worldwide forces of supply and demand. The aggregate effect of these factors is not possible to predict accurately.

 

v3.7.0.1
3. Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2016
Summary Of Significant Accounting Policies  
Summary of Significant Accounting Policies

Principles of Consolidation

 

The Company's consolidated financial statements include the accounts of BRZ, USAMSA and AM, all wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation.

  

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant and critical estimates include property, plant and equipment depreciation and impairment, accounts receivable allowance, deferred income taxes, income taxes payable, environmental remediation liabilities and asset retirement obligations. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

The Company considers cash in banks and investments with original maturities of three months or less when purchased to be cash equivalents.

 

Restricted Cash

 

Restricted cash at December 31, 2016 and 2015 consists of cash held for reclamation performance bonds, and is held as certificates of deposit with financial institutions.

 

Accounts Receivable

 

Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through an allowance for doubtful accounts. Changes to the allowance for doubtful accounts are based on management’s judgment, considering historical write-offs, collections and current credit conditions. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts receivable. Payments received on receivables subsequent to being written off are considered a bad debt recovery.

 

Inventories

 

Inventories at December 31, 2016 and 2015 consisted of finished antimony products, antimony metal, antimony concentrates, antimony ore, and finished zeolite products, and are stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight allocated based on production quantity. Stockpiled ore is carried at the lower of average cost or net realizable value. Since the Company's antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company's control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories. The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value.

 

Translations of Foreign Currencies

 

All amounts are presented in United States (US) Dollars, and the US Dollar is the functional currency of the Company and its foreign subsidiaries. All transactions are carried out in US Dollars, or translated at the time of the transaction.

 

Going Concern Consideration

 

At December 31, 2016, our financial statements show that we have negative working capital of approximately $1.7 million and accumulated deficit of approximately $25.4 million.  In addition, we have incurred losses for the prior three years.  These factors indicate that there may be doubt regarding our ability to continue as a going concern for the next twelve months. 

 

During the year ended December 31, 2016, we endured some of the lowest prices for antimony in the past seven years, with an average sales price for our products of only $2.98 per pound of metal contained.  As of late March 2017, the price for antimony metal contained is approximately $4.00 per pound.  While we experience an increase in our raw material cost in the United States as a result, most of the $1.02 market increase will result in increased cash flow.

 

In addition, we have cut costs for our labor at our Mexico locations which will result in a lower cost of raw material from Mexico. These cuts have resulted from not processing concentrates from Hillgrove Mines of Australia LTD in 2017. This has resulted in a large reduction in our work force at our Madero smelter, along with a significant decrease in our operating costs for fuel, natural gas, electricity, and reagents. Although our total production in Mexico will decrease due to the lack of Hillgrove concentrates, we are ramping up production from our own mining properties. We are currently on schedule to have seventeen small rotating furnaces in operation by the second quarter of 2017.

 

In addition, we have implemented wage and other cost reductions across at the corporate level that will decrease our administrative costs in 2017. We expect to continue paying a low cost for propane in Montana, which in years past has been a major operating cost.

 

In 2017, we have negotiated a reduced monthly lease cost for the Wadley mine of approximately $11,600 a decrease from $23,200 per month.  In addition, we paid the final installment to purchase mining concessions in the Los Juarez mining area.  In 2015 and 2016, we paid $100,000 and $68,600, respectively, for these concession rights.

 

We believe that our current circumstances and actions taken by management will enable us to be actively operating for the next twelve months.

 

Properties, Plants and Equipment

 

Properties, plants and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives of two to thirty years. Vehicles and office equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of three to twelve years. Maintenance and repairs are charged to operations as incurred. Betterments of a major nature are capitalized. Expenditures for new property, plant, equipment, and improvements that extend the useful life or functionality of the asset are capitalized. The Company capitalized $665,370 and $3,451,317 in plant construction and other capital costs for the years ended December 31, 2016 and 2015, respectively. These amounts include capitalized interest of $35,305 and $66,965, respectively. When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.

 

Mineral properties are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource.

 

Management of the Company periodically reviews the net carrying value of all of its long-lived assets. These reviews consider the net realizable value of each asset or group to determine whether a permanent impairment in value has occurred and the need for any asset write-down. An impairment loss is recognized when the estimated future cash flows (undiscounted and without interest) expected to result from the use of an asset are less than the carrying amount of the asset. Measurement of an impairment loss is based on the estimated fair value of the asset if the asset is expected to be held and used.

 

Mineral Rights

 

The costs to obtain the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits are capitalized as mineral rights in the year of acquisition. These capitalized costs are amortized on the statement of operations using the straight line method over the expected life of the mineral deposit when placed into production. Mineral rights are assessed for impairment when facts and circumstances indicate that the potential for impairment exists. No impairment has been indicated for the years ended December 31, 2016 or 2015 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned.

 

Exploration and Development

 

The Company records exploration costs as operating expenses in the period they occur, and capitalizes development costs on discrete mineralized bodies that have proven reserves in compliance with Securities and Exchange Commission Industry Guide 7, and are in development or production.

 

Asset Retirement Obligations and Reclamation Costs

 

All of the Company's mining operations are subject to reclamation and remediation requirements. Minimum standards for mine reclamation have been established by various governmental agencies. Costs are estimated based primarily upon environmental and regulatory requirements and are accrued. The liability for reclamation is classified as current or noncurrent based on the expected timing of expenditures. Reclamation differs from an asset retirement obligation in that no associated asset is recorded in the case of reclamation liabilities.

 

It is reasonably possible that because of uncertainties associated with defining the nature and extent of environmental contamination, application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation and reclamation could change in the future. The Company continually reviews its accrued liabilities for such remediation and reclamation costs as evidence becomes available indicating that its remediation and reclamation liability has changed.

 

The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of long-lived assets if it is probable that such costs will be incurred and they are reasonably estimable. A corresponding asset is also recorded and depreciated over the life of the assets on a straight line basis. After the initial measurement of the asset retirement obligation, the liability will be adjusted to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts included in determination of fair value is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates, and the Company’s credit-adjusted risk-free interest rates.

 

Revenue Recognition

 

Sales of antimony and zeolite products are recorded upon shipment and when title passes to the customer. Prepayments received from customers prior to the time that products are processed and shipped are recorded as deferred revenue. When the related products are shipped, the amount recorded as deferred revenue is recognized as revenue. The Company's sales agreements do not provide for product returns or allowances.

 

Sales of precious metals are recognized when pervasive evidence of an arrangement exists, the price is reasonably determinable, the product has been delivered, no obligations remain, and collection is reasonably assured.

 

Common Stock Issued for Consideration Other than Cash

 

All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the consideration received or the fair value of the common stock issued, whichever is more readily determinable.

 

Income Taxes

 

Income taxes are accounted for under the liability method. Under this method, deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

 

The Company applies generally accepted accounting principles for recognition of uncertainty in income taxes and prescribing a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return.

 

Income (Loss) Per Common Share

 

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock. Management has determined that the calculation of diluted earnings per share for the years ended December 31, 2016, and 2015, does not add any shares to basic weighted average shares.

 

As of December 31, 2016 and 2015, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows:

 

   

December 31,

2016

   

December 31,

2015

 
Warrants     250,000       250,000  
Convertible preferred stock     1,751,005       1,751,005  
Total possible dilution     2,001,005       2,001,005  

 

Fair Value of Financial Instruments

 

The Company’s financial instruments include cash and cash equivalents, certificates of deposits, restricted cash, due to factor, and long-term debt. The carrying value of these instruments approximates fair value based on their contractual terms.

 

Fair Value Measurements

 

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis.

 

Recent Accounting Pronouncements

 

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern. The provisions of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the ASU No. 2014-15 on December 31, 2016.

 

In May 2014, the FASB issued ASU No. 2014-09 Revenue Recognition, replacing guidance currently codified in Subtopic 605-10 Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The guidance establishes a new five step principle-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU No. 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017. We are in the process of evaluating this guidance and our method of adoption.

 

In July 2015, the FASB issued ASU 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. The update provides for inventory to be measured at the lower of cost and net realizable value, and is effective for the fiscal years beginning after December 15, 2016. We do not believe that this will have an impact on our consolidated financial statements when adopted.

 

In November 2015, the FASB issued ASU No. 2015-17 Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets into current and non-current amounts in a statement of financial position. The FASB has proposed the presentation of deferred income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position. The update is effective for fiscal years beginning after December 15, 2016. ASU No. 2015-17 is not expected to have a material impact on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this update on the consolidated financial statements.

 

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

 

Reclassifications

 

Certain reclassifications have been made to conform prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity (deficit) or cash flows.

 

v3.7.0.1
4. Accounts Receivable and Due to Factor
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Accounts Receivable and Due to Factor

The Company factors designated trade receivables pursuant to a factoring agreement with LSC Funding Group L.C., an unrelated factor (the “Factor”).  The agreement specifies that eligible trade receivables are factored with recourse. The performance of all obligations and payments to the factoring company is personally guaranteed by John C. Lawrence, the Company’s President and Chairman of the Board of Directors. Selected trade receivables are submitted to the factor, and the Company receives 85% of the face value of the receivable by wire transfer. Upon payment by the customer, the remainder of the amount due is received 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.  

 

Receivables, net of allowances, are presented as current assets and the amount potentially due to the Factor is presented as a secured financing in current liabilities.

 

Accounts Receivble  

December 31,

2016

   

December 31,

2015

 
Accounts receivable - non factored   $ 401,720     $ 412,922  
Accounts receivable - factored with recourse     150,399       13,782  
   less allowance for doubtful accounts     -       (4,031 )
      Accounts receivable - net   $ 552,119     $ 422,673  

 

Factoring fees paid by the Company during the years ended December 31, 2016 and 2015, were $35,182 and $41,117, respectively. For the years ended December 31, 2016 and 2015, net accounts receivable of approximately $1.80 million and $2.10 million, respectively, were sold under the agreement.

 

Proceeds from the sales were used to fund inventory purchases and operating expenses. The agreement is for a term of one year with automatic renewal for additional one-year terms.

 

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.

v3.7.0.1
6. Properties, Plants and Equipment
12 Months Ended
Dec. 31, 2016
Properties Plants And Equipment  
Properties, Plants and Equipment

The major components of the Company's properties, plants and equipment at December 31, 2016 and 2015 are shown below:

 

    Antimony Segment     Zeolite Segment        
2016   USAC     USAMSA     BRZ     TOTAL  
Plant & Equipment   $ 908,578     $ 7,943,686     $ 3,477,260     $ 12,329,524  
Buildings     247,210       900,992       349,946       1,498,148  
Mineral Rights and Interests     -       3,793,502       3,664       3,797,166  
Land & Other     3,274,572       2,529,294       15,310       5,819,176  
      4,430,360       15,167,474       3,846,180       23,444,014  
Accumulated Depreciation     (2,538,257 )     (2,836,164 )     (2,373,627 )     (7,748,048 )
    $ 1,892,103     $ 12,331,310     $ 1,472,553     $ 15,695,966  

 

2015   USAC     MEXICO     BRZ     TOTAL  
Plant & Equipment   $ 872,548     $ 7,497,791     $ 3,347,629     $ 11,717,968  
Buildings     247,210       900,992       349,946       1,498,148  
Mineral Rights and Interests     -       3,743,352       -       3,743,352  
Land & Other     3,274,572       2,529,294       15,310       5,819,176  
      4,394,330       14,671,429       3,712,885       22,778,644  
Accumulated Depreciation     (2,456,928 )     (2,131,624 )     (2,159,759 )     (6,748,311 )
    $ 1,937,402     $ 12,539,805     $ 1,553,126     $ 16,030,333  

 

At December 31, 2016 and 2015, the Company had $521,376 and $891,576, of assets that were considered to be construction in progress and had not yet been depreciated. The majority of this amount relates to equipment not yet placed in service.

v3.7.0.1
7. Asset Retirement Obligation
12 Months Ended
Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation

Changes to the Asset Retirement Obligation balance during 2016 and 2015 are as follows:

 

Asset Retirement Obligation      
   Balance December 31, 2014   $ 147,690  
   Accretion during 2015     5,137  
   Balance December 31, 2015     152,827  
   Accretion during 2016     5,455  
   Balance December 31, 2016   $ 158,282  

 

The Company’s total asset retirement obligation and accrued reclamation costs of $265,782 and $260,327, at December 31, 2016 and 2015, respectively, include reclamation obligations for the Idaho and Montana operations of $107,500.

 

v3.7.0.1
8. Long-Term Debt
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Long - Term Debt
Long-Term debt at December 31, 2016 and 2015, is as follows:   December 31,     December 31,  
    2016     2015  
Note payable to First Security Bank, bearing interest at 6%;            
payable in monthly installments of $917; maturing            
September 2018; collateralized by equipment.   $ 18,245     $ 27,845  
Note payable to Caterpillar Financial Services, bearing interest at 6%;                
payable in monthly installments of $1,300; maturing                
August 2019; collateralized by equipment.     40,556       -  
Note payable to Wells Fargo Bank, bearing interest at 4%;                
payable in monthly installments of $477; original maturity date of                
December 2016; collateralized by equipment.     473       5,399  
Note payable to De Lage Landen Financial Services,                
 bearing interest at 5.30%; payable in monthly installments of $549;                
original maturity date of March 2016; collateralized by equipment.     -       2,171  
Note payable to De Lage Landen Financial Services,                
bearing interest at 3.51%; payable in monthly installments of $655;                
maturing September 2019; collateralized by equipment.     20,581       27,587  
Note payable to De Lage Landen Financial Services,                
bearing interest at 3.51%; payable in monthly installments of $655;                
maturing December 2019; collateralized by equipment.     22,944       29,300  
Note payable to Phyllis Rice, bearing interest                
at 1%; payable in monthly installments of $2,000;                
original maturity date of March 2015; collateralized by equipment.     14,146       14,146  
Obligation payable for Soyatal Mine, non-interest bearing,                
 annual payments of $100,000 or $200,000 through 2019, net of discount.     776,319       820,272  
Obligation payable for Guadalupe Mine, non-interest bearing,                
 annual payments from $60,000 to $149,078 through 2026, net of discount.     970,651       972,312  
      1,863,915       1,899,032  
Less current portion     (391,046 )     (181,287 )
Long-term portion   $ 1,472,869     $ 1,717,745  

 

At December 31, 2016, principal payments on debt are due as follows:

 

Year Ending December 31,      
2017   $ 391,046  
2018     260,232  
2019     307,081  
2020     198,436  
2021     108,150  
Thereafter     598,970  
    $ 1,863,915  

 

Guadalupe Mine

On March 7, 2012 and on April 4, 2012, the Company entered into a supply agreement and a loan agreement, respectively, (“the Agreements”) with several individuals collectively referred to as ‘Grupo Roga’ or ‘Guadalupe.’ During the term of the supply agreement the Company funded certain of Guadalupe’s equipment purchases, tax payments, labor costs, milling and trucking costs, and other expenses incurred in the Guadalupe mining operations for approximately $112,000. In addition to the advances for mining costs, the Company purchased antimony ore from Guadalupe that failed to meet agreed upon antimony metal recoveries and resulted in approximately $475,000 of excess advances paid to Guadalupe.

 

The Agreements with Guadalupe granted the Company an option to purchase the concessions outright for $2,000,000. On September 29, 2015, the Company notified the owners of Guadalupe that it was exercising the option to purchase the Guadalupe property. The option exercise agreement allowed the Company to apply all amounts previously due the Company by Guadalupe of $586,893 to the purchase price consideration, resulting in a net obligation for the purchase of the Guadalupe mine of $1,413,107. The Company is obligated to make annual payments that vary from $60,000 to $149,077 annually through 2026. The debt payments are non-interest bearing. In 2015, the Company determined the net present value of the future contractual stream of payments to be $972,722 using a 6% discount rate. The Company recorded $972,722 as the cost of the concessions and the debt payable equal to total payments due of $1,413,107 less a discount of $440,385. The discount is being amortized to interest expense using the effective interest method over the life of the debt. During the years ended December 31, 2016 and 2015, the Company paid $60,000 and $15,000 on this debt, respectively, and amortized $58,339 and $14,591, respectively, of discount.

v3.7.0.1
9. Notes Payable to Bank
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Notes Payable to Bank

 

At December 31, 2016 and 2015, the Company had the following notes payable to bank:        
             
    December 31,     December 31,  
    2016     2015  
Promissory note payable to First Security Bank of Missoula,            
bearing interest at 3.150%, payable on demand, collateralized            
by a lien on Certificate of Deposit   $ 76,350     $ 36,881  
                 
                 
Promissory note payable to First Security Bank of Missoula,                
bearing interest at 3.150%, payable on demand, collateralized                
by a lien on Certificate of Deposit     90,967       93,791  
Total notes payable to the bank   $ 167,317     $ 130,672  

 

These notes are personally guaranteed by John C. Lawrence the Company’s President and Chairman of the Board of Directors. The maximum amount available for borrowing under each note is $99,998.

 

 

v3.7.0.1
10. Hillgrove Advances Payable
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
10. Hillgrove Advances Payable

On November 7, 2014, the Company entered into a loan and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) by which Hillgrove advanced the Company funds to be used to expand their smelter in Madero, Mexico, and in Thompson Falls, Montana, so that they may process antimony and gold concentrates produced by Hillgrove’s mine in Australia. The agreement required that the Company construct equipment so that it can process approximately 200 metric tons of concentrate initially shipped by Hillgrove, with a provision so that the Company may expand to process more than that. The parties agreed that the equipment will be owned by USAC and USAMSA. The agreement called for the Company to sell the final product for Hillgrove, and Hillgrove to have approval rights of the customers for their products. The agreement allows the Company to recover its operating costs at a rate approved by Hillgrove, and to charge a 7.5% processing fee and a 2.0% sales commission on each sale. The initial term of the agreement is five years; however, Hillgrove may suspend or terminate the agreement at its discretion. The Company may terminate the agreement and begin using the furnaces for their own production if Hillgrove fails to recommence shipments within 365 days of a suspension notice.

 

The terms of the agreement require payment upon Hillgrove’s issuance of a stop notice. If a stop notice was issued between one year and two years, there was a formula to prorate the repayment amount from 0% to 81.25%. If a stop order is issued after two years, the repayment obligation is 81.25% of the funds advanced at that point. No stop notice was issued during the initial two year period ended November 7, 2016, thus the Company’s obligation to Hillgrove is 81.25% of total advanced funds. Through December 31, 2016, Hillgrove advanced the Company a total of $1,396,721, resulting in a net liability of $1,134,221 which is 81.25% of monies advanced. The difference between the amount advanced and the amount payable of $262,500 was recorded as deferred earned credit and recognized ratably through the period ending November 7, 2016. During the year ended December 31, 2016 and 2015, $120,329 and $142,171 of the deferred earned credit was recognized. Based on conversations with Hillgrove, management does not anticipate receiving a stop notice in 2017 thus the entire amount is classified as long term.

 

v3.7.0.1
11. Stockholder's Equity
12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Stockholder's Equity

Issuance of Common Stock for Cash

 

The Company did not issue any common stock for cash in 2015 or 2016.

 

Issuance of Common Stock for Services to Directors and Consultants

 

On December 30, 2015, the Company awarded shares of unregistered common stock to be paid to its directors for services during 2015, having a fair value of $125,000, based on the stock price at the date declared. In March of 2016 the Company issued the Board members 550,000 shares of the Company’s common stock at $0.25 per share for services in 2015 with a value of $137,500.

 

During 2015, the Company issued 105,000 shares to Herbert Denton for investor relations services provided and in connection with the Settlement Agreement (Note 15). The shares estimated fair value at the time of issue was approximately $27,950.

 

In December of 2016, the Company issued Daniel Parks, the Company’s Chief Financial Officer, 200,000 shares of the Company’s common stock valued at $54,000 to retain his services for a two year period. As part of the agreement, Mr. Parks’ hours worked and normal compensation will be reduced.

 

During 2016, the Company awarded common stock with a value at December 31, 2016 of $168,750 to its Board of Directors as compensation for their services as directors. In connection with the issuances, the Company recorded $168,750 as director compensation expense and accrued stock payable. In March 2017, the directors were issued 421,875 shares for this award.

 

Common Stock Warrants

 

The Company's Board of Directors has the authority to issue stock warrants for the purchase of preferred or unregistered common stock to directors and employees of the Company.

 

At December 31, 2016 and 2015, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share are outstanding and have no expiration date. These warrants are owned by the Company’s president. During 2015, warrants for purchase of 476,917 shares of common stock for $4.50 expired.

 

Preferred Stock

 

The Company's Articles of Incorporation authorize 10,000,000 shares of $0.01 par value preferred stock available for issuance with such rights and preferences, including liquidation, dividend, conversion, and voting rights, as the Board of Directors may determine.

 

Series B

 

During 1993, the Board established a Series B preferred stock, consisting of 750,000 shares. The Series B preferred stock has preference over the Company's common stock and Series A preferred stock (none of which are outstanding); has no voting rights (absent default in payment of declared dividends); and is entitled to cumulative dividends of $0.01 per share per year, payable if and when declared by the Board of Directors. During the years ended December 31, 2016 and 2015 the Company recognized $7,500 in Series B preferred stock dividend. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series B preferred stockholders is $1.00 per share plus dividends in arrears. No dividends have been declared or paid with respect to the Series B preferred stock. The Series B Preferred stock is no longer convertible to shares of the Company’s common stock. At December 31, 2016 and 2015, cumulative dividends in arrears on the outstanding Series B shares were $165,000 and $157,500, respectively.

 

Series C

 

During 2000, the Board established a Series C preferred stock, consisting of 205,996 shares. In 2002, 28,092 shares were converted to common stock and cancelled, leaving 177,904 Series C preferred shares authorized and outstanding. The Series C preferred stock has preference over the Company’s common stock and has voting rights equal to that number of shares outstanding, but no conversion or dividend rights. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series C preferred stockholders is $0.55 per share.

 

Series D

 

During 2002, the Board established a Series D preferred stock, authorizing the issuance of up to 2,500,000 shares. The Series D preferred stock has preference over the Company’s common stock but is subordinate to the liquidation preferences of the holders of the Company’s outstanding Series A, Series B and Series C preferred stock. Series D preferred stock carries voting rights and is entitled to annual dividends of $0.0235 per share. The dividends are cumulative and payable after payment and satisfaction of the Series A, B and C preferred stock dividends. No dividends have been declared or paid with respect to the Series D preferred stock. At December 31, 2016 and 2015, the cumulative dividends in arrears on the 1,751,005 outstanding Series D shares were $542,664 and $501,515, respectively, payable if and when declared by the Board of Directors. In the event of dissolution or liquidation of the Company, the preferential amount payable to Series D preferred stockholders is $2.50 per share. At December 31, 2016 and 2015, the liquidation preference for Series D preferred stock was $4,920,178 and $4,879,029, respectively. Holders of the Series D preferred stock have the right, subject to the availability of authorized but unissued common stock, to convert their shares into shares of the Company's common stock on a one-to-one basis without payment of additional consideration and are not redeemable unless by mutual consent. The majority of Series D preferred shares are held by John Lawrence, president of the Company.

 

 

v3.7.0.1
12. 2000 Stock Plan
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
2000 Stock Plan

In January 2000, the Company's Board of Directors resolved to create the United States Antimony Corporation 2000 Stock Plan ("the Plan"). The purpose of the Plan is to attract and retain the best available personnel for positions of substantial responsibility and to provide additional incentive to employees, directors and consultants to promote the success of the Company's business. The maximum number of shares of common stock or options to purchase common stock that may be issued pursuant to the Plan is 500,000. At December 31, 2016 and 2015, 300,000 shares of the Company's common stock had been previously issued and are outstanding under the Plan. There were no issuances under the Plan during 2016 and 2015.

v3.7.0.1
13. Income Taxes
12 Months Ended
Dec. 31, 2016
Related Party Transactions [Abstract]  
Income Taxes

Domestic and foreign components of income (loss) from operations before income taxes for the years ended December 31, 2016 and 2015, are as follows:

 

    2016     2015  
Domestic   $ (263,652 )   $ 982,901  
Foreign     (747,410 )     (1,821,432 )
Total   $ (1,011,062 )   $ (838,531 )

 

At December 31, 2016 and 2015, the Company had net deferred tax assets as follows:

 

    2016     2015  
Deferred tax assets:            
Foreign exploration costs   $ 47,011     $ 87,494  
Foreign net operating loss carry forward     1,309,445       2,515,954  
Domestic net operating loss carry forward     465,145       185,472  
      Deferred tax assets     1,821,601       2,788,920  
                 
Valuation allowance (foreign)     (1,309,445 )     (2,515,954 )
Valuation allowance (domestic)     (299,522 )     (90,220 )
      Total deferred tax assets     212,634       182,746  
                 
Deferred tax liabilities:                
   Property, plant, and equipment     (210,912 )     (181,224 )
   Other     (1,722 )     (1,522 )
      Total deferred tax liabilities     (212,634 )     (182,746 )
Net Deferred Tax Assets   $ -     $ -  

 

At December 31, 2016, the Company has federal net operating loss (“NOL”) carry forwards of approximately $0.9 million that expire at various dates between 2026 and 2037. In addition, the Company has Montana state net operating loss carry forwards of approximately $2.9 million which expire between 2017 and 2023, and Idaho state net operating loss carry forwards of approximately $1.2 million, which expire between 2032 and 2037. The Company has approximately $4.3 million of Mexican net operating loss carry forwards which expire between 2023 and 2026.

 

At December 31 2016 and 2015, the Company had deferred tax assets arising principally from net operating loss carry forwards for income tax purposes. As management cannot determine that it is more likely than not the benefit of the net deferred tax asset will be realized, a valuation allowance equal to 100% of the net deferred tax asset has been recorded at December 31, 2016 and 2015.

 

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax loss for the years ended December 31, 2016 and 2015, due to the following:

 

    2016     2015  
Tax benefit at federal statutory rate   $ (353,872 )   $ (293,486 )
State income tax effect     (21,754 )     (32,283 )
Foreign income tax effect     37,371       91,072  
Non-deductible items     3,263       -  
Percentage depletion     (40,976 )     -  
Change in valuation allowance - Domestic     151,745       (311,732 )
Change in valuation allowance - Foreign     224,223       546,429  
Foreign tax assessment     285,048       -  
Alternative minimum tax - Domestic     13,090       -  
   Total   $ 298,138     $ -  

 

Change in valuation allowance is comprised of the following:        
             
    2016     2015  
Domestic            
Change in deferred tax asset for current year   $ (151,745 )   $ (166,547 )
Adjustment for prior year tax estimate to actual     (57,557 )     (145,185 )
    $ (209,302 )   $ (311,732 )
Foreign                
Change in deferred tax asset for current year   $ (224,223 )   $ 589,613  
Adjustment for impact of tax assessment     285,048       -  
Impact on change in foreign exchange rate     421,643       366,591  
Adjustment for prior year tax estimates to actual     724,041       (409,775 )
    $ 1,206,509     $ 546,429  

 

In 2015, the Mexican tax authority (“SAT”) initiated an audit of the USAMSA’s 2013 income tax return. In October 2016, as a result of its audit, SAT assessed the Company $13.8 million pesos, which is approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. Approximately $285,000 USD of the total assessment is interest and penalties. SAT’s assessment is based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. These disallowed costs were incurred by the Company for USAMSA’s business operations. SAT claims that the costs were not deductible or were not supported by appropriate documentation.

 

Management has reviewed the assessment notice from SAT and believes numerous findings have no merit. The Company has engaged accountants and tax attorneys in Mexico to defend its position. An appeal has been filed which is expected to be completed during 2017.

 

At December 31, 2016, management has estimated possible outcomes for this assessment and believes it will ultimately pay an amount ranging from 30% of the total assessment to the total assessed amount. The Company’s agreement with the tax professionals is that the professionals will receive 30% of the amount of tax relief they are able to achieve. At December 31, 2016, we have accrued a potential liability of $410,510 USD of which $285,048 is for unpaid income taxes, $75,510 is for interest expense, and $49,952 is for penalties. The amount accrued represents management’s best estimate of the amount that will ultimately be paid. The outcome could vary from this estimate. In addition, fluctuation in exchange rates have an ongoing impact on the amount the Company will pay in U.S. dollars. At March 17, 2017, the assessed amount is approximately $712,000 in U.S dollars.

 

If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its net operating loss carryforward, or accrue any additional penalties, interest, and tax associated with the audit. Our tax professionals in Mexico have reviewed and filed tax returns with the SAT for 2014 and 2015, and have advised us that they do not expect us to have a tax liability for those years relating to similar issues.

 

During the years ended December 31, 2016 and 2015, there were no material uncertain tax positions taken by the Company. The Company United States income tax filings are subject to examination for the years 2014 through 2016, and 2013 through 2016 in Mexico. The Company charges penalties on assessments to general and administrative expense and charges interest to interest expense.

 

v3.7.0.1
14. Related Party Transactions
12 Months Ended
Dec. 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions

The Company’s President and Chairman, John Lawrence, rents equipment and an aircraft to the Company and charges the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr. Lawrence owns. The amount due to Mr. Lawrence as of December 31, 2016 and 2015 was $14,525 and $32,396, respectively. Expenses paid to Mr. Lawrence for the years ended December 31, 2016 and 2015 were $16,791 and $30,844, respectively.

v3.7.0.1
15. Commitments and Contingencies
12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

In 2005, Antimonio de Mexico, S. A. (“AM”) signed an option agreement that gives AM the exclusive right to explore and develop the San Miguel I and San Miguel II concessions for annual payments. Total payments will not exceed $1,430,344, reduced by taxes paid. During the years ended December 31, 2016 and 2015, $65,000 and $127,500, respectively, was paid and capitalized as mineral rights in accordance with the Company’s accounting policies. At December 31, 2016, the Company has made all of the required payments under the agreement.

 

In June of 2013, the Company entered into a lease to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease calls for a mandatory term of one year and requires payments of $10,500 plus IVA tax per month. The lease is renewable each year with a 15 day notice to the lessor, and agreement of terms. The lease was renewed in June of 2016.

 

From time to time, the Company is assessed fines and penalties by the Mine Safety and Health Administration (“MSHA”). Using appropriate regulatory channels, management may contest these proposed assessments. At December 31, 2016 and 2015, the Company has no accruals relating to such assessments.

 

In prior years, the Company utilized Providence Capital, Inc., a Delaware corporation (“Providence”), and Herbert A. Denton to provide investor relations services.  On April 1, 2015, we entered into an agreement with Providence to provide us services as our Investor Relations Representative.  We terminated this agreement in May 2015, and signed a Settlement Agreement dated July 27, 2015, and a Supplemental Settlement Agreement dated August 1, 2015.  These agreements provided for a payment to Mr. Denton of 100,000 shares of the Company’s common stock and $25,000 to be paid in five equal installments. On August 31, 2015, we issued 100,000 shares of common stock valued at $0.55 per share or $55,000 to Mr. Denton.  On October 12, 2015, we served Mr. Denton with a notice of material breach of the termination agreements and suspended the remaining payments of $15,000. We have subsequently filed an action in federal court to force Mr. Denton to comply with the terms of the termination agreements and for damages related to his non-compliance.  Subsequent to the Company’s filing, Mr. Denton filed a counterclaim against the Company seeking an award for damages for breach of contract, conversion, defamation of character, failure to exercise business judgement and intentional infliction of emotional duress and damage to reputation. We have settled with Mr. Denton for a cash payment of $10,000 and the removal of all restrictions on the 100,000 shares of common stock we previously issued to him.

 

v3.7.0.1
16. Business Segments
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Business Segments

The Company is currently organized and managed by four segments, which represent the three operating units: United States antimony operations, Mexican antimony operations and United States zeolite operations, and separate segment for revenue received from the sale of precious metals recovered from the antimony process. The Company’s precious metals segment was added as a new reporting segment in 2016. The precious metals activity has been reclassified from the antimony segment for 2015. The Company’s Other operating costs include general and administrative expenses, freight and delivery, and other non-production related costs. Other income and expense consists primarily of interest income and expense and factoring expense.

 

The Madero smelter and Puerto Blanco mill at the Company’s Mexico operation brings antimony up to an intermediate stage, which is then shipped to the United States operation for finishing and sales at the Thompson Falls, Montana plant. The Zeolite operation produces Zeolite near Preston, Idaho. Almost all of the sales of products from the United States antimony and Zeolite operations are to customers in the United States. Precious metal revenues are from sales to customers in the United States and Canada.

 

Segment disclosures regarding sales to major customers and for property, plant, and equipment are located in Notes 2 and 6, respectively.

 

Properties, plants    December 31,     December 31,  
  and equipment, net:     2016       2015  
Antimony            
United States   $ 1,892,103     $ 1,937,402  
Mexico     12,331,310       12,539,805  
Subtotal Antimony     14,223,413       14,477,207  
Zeolite     1,472,553       1,553,126  
   Total   $ 15,695,966     $ 16,030,333  
                 

 

Total Assets:  

December 31,

2016

   

December 31,

2015

 
Antimony            
United States   $ 2,693,614     $ 2,676,263  
Mexico     13,027,952       13,400,895  
Subtotal Antimony     15,721,566       16,077,158  
Zeolite     2,044,432       2,183,043  
   Total   $ 17,765,998     $ 18,260,201  

 

 

    For the year ended     For the year ended  
Capital expenditures:  

December 31,

2016

   

December 31,

2015

 
Antimony            
United States   $ 36,028     $ 33,028  
Mexico     496,046       3,435,002  
Subtotal Antimony     532,074       3,468,030  
Zeolite     133,296       196,238  
   Total   $ 665,370     $ 3,664,268  

 

Segment Operations for the   Antimony     Antimony     Precious     Bear River        
Year ended December 31, 2016   USA     Mexico     Metals     Zeolite     Totals  
                               
Total revenues   $ 8,740,602     $ 3,568     $ 672,871     $ 2,473,094     $ 11,890,135  
                                         
Depreciation and amortization     81,328       704,541       -       213,868       999,737  
                                         
Income (loss) from operations     4,048,193       (5,109,734 )     -       245,019       (816,522 )
                                         
Income tax expense     (13,090 )     (285,048 )     -       -       (298,138 )
                                         
Other income (expense)     (34,262 )     (149,165 )     -       (11,113 )     (194,540 )
                                         
NET INCOME (LOSS)   $ 2,859,972     $ (5,133,439 )   $ 672,871     $ 233,907     $ (1,309,200 )

 

Segment Operations for the   Antimony     Antimony     Precious     Bear River        
Year ended December 31, 2015   USAC     Mexico     Metals     Zeolite     Totals  
                               
Total revenues   $ 9,856,398     $ 7,535     $ 491,426     $ 2,753,644     $ 13,109,003  
                                         
Depreciation and amortization     61,819       649,526       -       221,441       932,786  
                                         
Income (loss) from operations     4,990,865       (6,311,265 )     -       511,403       (808,997 )
                                         
Other income (expense):     (24,280 )     -       -       (5,255 )     (29,534 )
                                         
NET INCOME (LOSS)   $ 4,475,160     $ (6,311,265 )   $ 491,426     $ 506,148     $ (838,531 )

 

 

v3.7.0.1
3. Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2016
Summary Of Significant Accounting Policies Policies  
Principles of Consolidation

The Company's consolidated financial statements include the accounts of BRZ, USAMSA and AM, all wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant and critical estimates include property, plant and equipment depreciation and impairment, accounts receivable allowance, deferred income taxes, income taxes payable, environmental remediation liabilities and asset retirement obligations. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers cash in banks and investments with original maturities of three months or less when purchased to be cash equivalents.

Restricted Cash

Restricted cash at December 31, 2016 and 2015 consists of cash held for reclamation performance bonds, and is held as certificates of deposit with financial institutions.

Accounts Receivable

Accounts receivable are stated at the amount that management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through an allowance for doubtful accounts. Changes to the allowance for doubtful accounts are based on management’s judgment, considering historical write-offs, collections and current credit conditions. Balances which remain outstanding after management has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts receivable. Payments received on receivables subsequent to being written off are considered a bad debt recovery.

Inventories

Inventories at December 31, 2016 and 2015 consisted of finished antimony products, antimony metal, antimony concentrates, antimony ore, and finished zeolite products, and are stated at the lower of first-in, first-out weighted average cost or estimated net realizable value. Finished antimony products, antimony metal and finished zeolite products costs include raw materials, direct labor and processing facility overhead costs and freight allocated based on production quantity. Stockpiled ore is carried at the lower of average cost or net realizable value. Since the Company's antimony inventory is a commodity with a sales value that is subject to world prices for antimony that are beyond the Company's control, a significant change in the world market price of antimony could have a significant effect on the net realizable value of inventories. The Company periodically reviews its inventories to identify excess and obsolete inventories and to estimate reserves for obsolete inventories as necessary to reflect inventories at net realizable value.

Translations of Foreign Currencies

All amounts are presented in United States (US) Dollars, and the US Dollar is the functional currency of the Company and its foreign subsidiaries. All transactions are carried out in US Dollars, or translated at the time of the transaction.

Going Concern Consideration

At December 31, 2016, our financial statements show that we have negative working capital of approximately $1.7 million and accumulated deficit of approximately $25.4 million.  In addition, we have incurred losses for the prior three years.  These factors indicate that there may be doubt regarding our ability to continue as a going concern for the next twelve months. 

 

During the year ended December 31, 2016, we endured some of the lowest prices for antimony in the past seven years, with an average sales price for our products of only $2.98 per pound of metal contained.  As of late March 2017, the price for antimony metal contained is approximately $4.00 per pound.  While we experience an increase in our raw material cost in the United States as a result, most of the $1.02 market increase will result in increased cash flow.

 

In addition, we have cut costs for our labor at our Mexico locations which will result in a lower cost of raw material from Mexico. These cuts have resulted from not processing concentrates from Hillgrove Mines of Australia LTD in 2017. This has resulted in a large reduction in our work force at our Madero smelter, along with a significant decrease in our operating costs for fuel, natural gas, electricity, and reagents. Although our total production in Mexico will decrease due to the lack of Hillgrove concentrates, we are ramping up production from our own mining properties. We are currently on schedule to have seventeen small rotating furnaces in operation by the second quarter of 2017.

 

In addition, we have implemented wage and other cost reductions across at the corporate level that will decrease our administrative costs in 2017. We expect to continue paying a low cost for propane in Montana, which in years past has been a major operating cost.

 

In 2017, we have negotiated a reduced monthly lease cost for the Wadley mine of approximately $11,600 a decrease from $23,200 per month.  In addition, we paid the final installment to purchase mining concessions in the Los Juarez mining area.  In 2015 and 2016, we paid $100,000 and $68,600, respectively, for these concession rights.

 

We believe that our current circumstances and actions taken by management will enable us to be actively operating for the next twelve months.

Properties, Plants and Equipment

Properties, plants and equipment are stated at historical cost and are depreciated using the straight-line method over estimated useful lives of two to thirty years. Vehicles and office equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of three to twelve years. Maintenance and repairs are charged to operations as incurred. Betterments of a major nature are capitalized. Expenditures for new property, plant, equipment, and improvements that extend the useful life or functionality of the asset are capitalized. The Company capitalized $665,370 and $3,451,317 in plant construction and other capital costs for the years ended December 31, 2016 and 2015, respectively. These amounts include capitalized interest of $35,305 and $66,965, respectively. When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in operations.

 

Mineral properties are amortized over the estimated economic life of the mineral resource using the straight-line method, based upon estimated lives of the properties, or the units-of-production method, based upon estimated units of mineral resource.

 

Management of the Company periodically reviews the net carrying value of all of its long-lived assets. These reviews consider the net realizable value of each asset or group to determine whether a permanent impairment in value has occurred and the need for any asset write-down. An impairment loss is recognized when the estimated future cash flows (undiscounted and without interest) expected to result from the use of an asset are less than the carrying amount of the asset. Measurement of an impairment loss is based on the estimated fair value of the asset if the asset is expected to be held and used.

Mineral Rights

The costs to obtain the legal right to explore, extract and retain at least a portion of the benefits from mineral deposits are capitalized as mineral rights in the year of acquisition. These capitalized costs are amortized on the statement of operations using the straight line method over the expected life of the mineral deposit when placed into production. Mineral rights are assessed for impairment when facts and circumstances indicate that the potential for impairment exists. No impairment has been indicated for the years ended December 31, 2016 or 2015 as a result of this assessment. Mineral rights are subject to write down in the period the property is abandoned.

Exploration and Development

The Company records exploration costs as operating expenses in the period they occur, and capitalizes development costs on discrete mineralized bodies that have proven reserves in compliance with Securities and Exchange Commission Industry Guide 7, and are in development or production.

Asset Retirement Obligations and Reclamation Costs

All of the Company's mining operations are subject to reclamation and remediation requirements. Minimum standards for mine reclamation have been established by various governmental agencies. Costs are estimated based primarily upon environmental and regulatory requirements and are accrued. The liability for reclamation is classified as current or noncurrent based on the expected timing of expenditures. Reclamation differs from an asset retirement obligation in that no associated asset is recorded in the case of reclamation liabilities.

 

It is reasonably possible that because of uncertainties associated with defining the nature and extent of environmental contamination, application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation and reclamation could change in the future. The Company continually reviews its accrued liabilities for such remediation and reclamation costs as evidence becomes available indicating that its remediation and reclamation liability has changed.

 

The Company records the fair value of an asset retirement obligation as a liability in the period in which the Company incurs a legal obligation for the retirement of long-lived assets if it is probable that such costs will be incurred and they are reasonably estimable. A corresponding asset is also recorded and depreciated over the life of the assets on a straight line basis. After the initial measurement of the asset retirement obligation, the liability will be adjusted to reflect changes in the estimated future cash flows underlying the obligation. Determination of any amounts included in determination of fair value is based upon numerous estimates and assumptions, including future retirement costs, future inflation rates, and the Company’s credit-adjusted risk-free interest rates.

Revenue Recognition

Sales of antimony and zeolite products are recorded upon shipment and when title passes to the customer. Prepayments received from customers prior to the time that products are processed and shipped are recorded as deferred revenue. When the related products are shipped, the amount recorded as deferred revenue is recognized as revenue. The Company's sales agreements do not provide for product returns or allowances.

 

Sales of precious metals are recognized when pervasive evidence of an arrangement exists, the price is reasonably determinable, the product has been delivered, no obligations remain, and collection is reasonably assured.

Common Stock Issued for Consideration Other than Cash

All transactions in which goods or services are received for the issuance of shares of the Company’s common stock are accounted for based on the fair value of the consideration received or the fair value of the common stock issued, whichever is more readily determinable.

Income Taxes

Income taxes are accounted for under the liability method. Under this method, deferred income tax liabilities or assets are determined at the end of each period using the tax rate expected to be in effect when the taxes are actually paid or recovered. A valuation allowance is recognized on deferred tax assets when it is more likely than not that some or all of these deferred tax assets will not be realized.

 

The Company applies generally accepted accounting principles for recognition of uncertainty in income taxes and prescribing a recognition threshold and measurement attribute for the recognition and measurement of a tax position taken or expected to be taken in a tax return.

 

Income (Loss) Per Common Share

Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents, including warrants to purchase the Company's common stock and convertible preferred stock. Management has determined that the calculation of diluted earnings per share for the years ended December 31, 2016, and 2015, does not add any shares to basic weighted average shares.

 

As of December 31, 2016 and 2015, potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share are as follows:

 

   

December 31,

2016

   

December 31,

2015

 
Warrants     250,000       250,000  
Convertible preferred stock     1,751,005       1,751,005  
Total possible dilution     2,001,005       2,001,005  
Fair Value of Financial Instruments

The Company’s financial instruments include cash and cash equivalents, certificates of deposits, restricted cash, due to factor, and long-term debt. The carrying value of these instruments approximates fair value based on their contractual terms.

 

Fair Value Measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period are included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. The Company has no financial assets or liabilities that are adjusted to fair value on a recurring basis.

Recent Accounting Pronouncements

 

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern. The provisions of ASU No. 2014-15 require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The Company adopted the ASU No. 2014-15 on December 31, 2016.

 

In May 2014, the FASB issued ASU No. 2014-09 Revenue Recognition, replacing guidance currently codified in Subtopic 605-10 Revenue Recognition-Overall with various SEC Staff Accounting Bulletins providing interpretive guidance. The guidance establishes a new five step principle-based framework in an effort to significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. ASU No. 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2017. We are in the process of evaluating this guidance and our method of adoption.

 

In July 2015, the FASB issued ASU 2015-11 Inventory (Topic 330): Simplifying the Measurement of Inventory. The update provides for inventory to be measured at the lower of cost and net realizable value, and is effective for the fiscal years beginning after December 15, 2016. We do not believe that this will have an impact on our consolidated financial statements when adopted.

 

In November 2015, the FASB issued ASU No. 2015-17 Income Taxes - Balance Sheet Classification of Deferred Taxes (Topic 740). The update is designed to reduce complexity of reporting deferred income tax liabilities and assets into current and non-current amounts in a statement of financial position. The FASB has proposed the presentation of deferred income taxes, changes to deferred tax liabilities and assets be classified as non-current in the statement of financial position. The update is effective for fiscal years beginning after December 15, 2016. ASU No. 2015-17 is not expected to have a material impact on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update provides guidance on classification for cash receipts and payments related to eight specific issues. The update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of implementing this update on the consolidated financial statements.

 

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

 

Reclassifications

Certain reclassifications have been made to conform prior year’s data to the current year’s presentation. These reclassifications have no effect on previously reported operations, stockholders’ equity (deficit) or cash flows.

 

v3.7.0.1
2. Concentration of Risk (Tables)
12 Months Ended
Dec. 31, 2016
Concentration Of Risk Tables  
Major Customers Revenue Details

 

    For the Year Ended      

Sales to

Largest Customers

 

December 31,

2016

   

December 31,

2015

 
Mexichem Specialty Compounds Inc.   $ 2,108,998     $ 3,142,586  
East Penn Manufacturing Inc     1,147,854       1,236,250  
Kohler Corporation     1,474,854       1,736,914  
    $ 4,731,706     $ 6,115,750  
% of Total Revenues     39.80 %     46.70 %

 

Largest

Accounts Receivable

 

December 31,

2016

   

December 31,

2015

 
Gopher Resources         $ 141,570  
GE Lighting   $ 162,582          
Teck American Inc             80,946  
Kohler Corporation     151,500          
Wildfire Construction             43,327  
    $ 314,082     $ 265,843  
% of Total Receivables     83.90 %     62.90 %
v3.7.0.1
3. Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
   

December 31,

2016

   

December 31,

2015

 
Warrants     250,000       250,000  
Convertible preferred stock     1,751,005       1,751,005  
Total possible dilution     2,001,005       2,001,005  
v3.7.0.1
4. Accounts Receivable and Due to Factor (Tables)
12 Months Ended
Dec. 31, 2016
Accounts Receivable And Due To Factor Tables  
Account Receivables
Accounts Receivble  

December 31,

2016

   

December 31,

2015

 
Accounts receivable - non factored   $ 401,720     $ 412,922  
Accounts receivable - factored with recourse     150,399       13,782  
   less allowance for doubtful accounts     -       (4,031 )
      Accounts receivable - net   $ 552,119     $ 422,673  
v3.7.0.1
5. Inventories (Tables)
12 Months Ended
Dec. 31, 2016
Inventory Disclosure [Abstract]  
Inventories
    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  
v3.7.0.1
6. Properties, Plants and Equipment (Tables)
12 Months Ended
Dec. 31, 2016
Properties Plants And Equipment Tables  
Properties, Plants and Equipment

 

    Antimony Segment     Zeolite Segment        
2016   USAC     USAMSA     BRZ     TOTAL  
Plant & Equipment   $ 908,578     $ 7,943,686     $ 3,477,260     $ 12,329,524  
Buildings     247,210       900,992       349,946       1,498,148  
Mineral Rights and Interests     -       3,793,502       3,664       3,797,166  
Land & Other     3,274,572       2,529,294       15,310       5,819,176  
      4,430,360       15,167,474       3,846,180       23,444,014  
Accumulated Depreciation     (2,538,257 )     (2,836,164 )     (2,373,627 )     (7,748,048 )
    $ 1,892,103     $ 12,331,310     $ 1,472,553     $ 15,695,966  

 

2015   USAC     MEXICO     BRZ     TOTAL  
Plant & Equipment   $ 872,548     $ 7,497,791     $ 3,347,629     $ 11,717,968  
Buildings     247,210       900,992       349,946       1,498,148  
Mineral Rights and Interests     -       3,743,352       -       3,743,352  
Land & Other     3,274,572       2,529,294       15,310       5,819,176  
      4,394,330       14,671,429       3,712,885       22,778,644  
Accumulated Depreciation     (2,456,928 )     (2,131,624 )     (2,159,759 )     (6,748,311 )
    $ 1,937,402     $ 12,539,805     $ 1,553,126     $ 16,030,333  

 

v3.7.0.1
7. Asset Retirement Obligation (Tables)
12 Months Ended
Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Asset Retirement Obligations
Asset Retirement Obligation      
   Balance December 31, 2014   $ 147,690  
   Accretion during 2015     5,137  
   Balance December 31, 2015     152,827  
   Accretion during 2016     5,455  
   Balance December 31, 2016   $ 158,282  
v3.7.0.1
8. Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Long - Term Debt
Long-Term debt at December 31, 2016 and 2015, is as follows:   December 31,     December 31,  
    2016     2015  
Note payable to First Security Bank, bearing interest at 6%;            
payable in monthly installments of $917; maturing            
September 2018; collateralized by equipment.   $ 18,245     $ 27,845  
Note payable to Caterpillar Financial Services, bearing interest at 6%;                
payable in monthly installments of $1,300; maturing                
August 2019; collateralized by equipment.     40,556       -  
Note payable to Wells Fargo Bank, bearing interest at 4%;                
payable in monthly installments of $477; original maturity date of                
December 2016; collateralized by equipment.     473       5,399  
Note payable to De Lage Landen Financial Services,                
 bearing interest at 5.30%; payable in monthly installments of $549;                
original maturity date of March 2016; collateralized by equipment.     -       2,171  
Note payable to De Lage Landen Financial Services,                
bearing interest at 3.51%; payable in monthly installments of $655;                
maturing September 2019; collateralized by equipment.     20,581       27,587  
Note payable to De Lage Landen Financial Services,                
bearing interest at 3.51%; payable in monthly installments of $655;                
maturing December 2019; collateralized by equipment.     22,944       29,300  
Note payable to Phyllis Rice, bearing interest                
at 1%; payable in monthly installments of $2,000;                
original maturity date of March 2015; collateralized by equipment.     14,146       14,146  
Obligation payable for Soyatal Mine, non-interest bearing,                
 annual payments of $100,000 or $200,000 through 2019, net of discount.     776,319       820,272  
Obligation payable for Guadalupe Mine, non-interest bearing,                
 annual payments from $60,000 to $149,078 through 2026, net of discount.     970,651       972,312  
      1,863,915       1,899,032  
Less current portion     (391,046 )     (181,287 )
Long-term portion   $ 1,472,869     $ 1,717,745  
Principal payments on debt
Year Ending December 31,      
2017   $ 391,046  
2018     260,232  
2019     307,081  
2020     198,436  
2021     108,150  
Thereafter     598,970  
    $ 1,863,915  
v3.7.0.1
9. Notes Payable to Bank (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Summary of notes payable to bank
At December 31, 2016 and 2015, the Company had the following notes payable to bank:        
             
    December 31,     December 31,  
    2016     2015  
Promissory note payable to First Security Bank of Missoula,            
bearing interest at 3.150%, payable on demand, collateralized            
by a lien on Certificate of Deposit   $ 76,350     $ 36,881  
                 
                 
Promissory note payable to First Security Bank of Missoula,                
bearing interest at 3.150%, payable on demand, collateralized                
by a lien on Certificate of Deposit     90,967       93,791  
Total notes payable to the bank   $ 167,317     $ 130,672  
v3.7.0.1
13. Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Taxes Tables  
Schedule of Components of Income Tax Expense (Benefit)
    2016     2015  
Tax benefit at federal statutory rate   $ (353,872 )   $ (293,486 )
State income tax effect     (21,754 )     (32,283 )
Foreign income tax effect     37,371       91,072  
Non-deductible items     3,263       -  
Percentage depletion     (40,976 )     -  
Change in valuation allowance - Domestic     151,745       (311,732 )
Change in valuation allowance - Foreign     224,223       546,429  
Foreign tax assessment     285,048       -  
Alternative minimum tax - Domestic     13,090       -  
   Total   $ 298,138     $ -  
Domestic and foreign components of income (loss) from operations before income taxes
    2016     2015  
Domestic   $ (263,652 )   $ 982,901  
Foreign     (747,410 )     (1,821,432 )
Total   $ (1,011,062 )   $ (838,531 )
Deferred tax assets
    2016     2015  
Deferred tax assets:            
Foreign exploration costs   $ 47,011     $ 87,494  
Foreign net operating loss carry forward     1,309,445       2,515,954  
Domestic net operating loss carry forward     465,145       185,472  
      Deferred tax assets     1,821,601       2,788,920  
                 
Valuation allowance (foreign)     (1,309,445 )     (2,515,954 )
Valuation allowance (domestic)     (299,522 )     (90,220 )
      Total deferred tax assets     212,634       182,746  
                 
Deferred tax liabilities:                
   Property, plant, and equipment     (210,912 )     (181,224 )
   Other     (1,722 )     (1,522 )
      Total deferred tax liabilities     (212,634 )     (182,746 )
Net Deferred Tax Assets   $ -     $ -  
Schedule of Effective Income Tax Rate Reconciliation
Change in valuation allowance is comprised of the following:        
             
    2016     2015  
Domestic            
Change in deferred tax asset for current year   $ (151,745 )   $ (166,547 )
Adjustment for prior year tax estimate to actual     (57,557 )     (145,185 )
    $ (209,302 )   $ (311,732 )
Foreign                
Change in deferred tax asset for current year   $ (224,223 )   $ 589,613  
Adjustment for impact of tax assessment     285,048       -  
Impact on change in foreign exchange rate     421,643       366,591  
Adjustment for prior year tax estimates to actual     724,041       (409,775 )
    $ 1,206,509     $ 546,429  
v3.7.0.1
16. Business Segments (Tables)
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information

 

Properties, plants    December 31,     December 31,  
  and equipment, net:     2016       2015  
Antimony            
United States   $ 1,892,103     $ 1,937,402  
Mexico     12,331,310       12,539,805  
Subtotal Antimony     14,223,413       14,477,207  
Zeolite     1,472,553       1,553,126  
   Total   $ 15,695,966     $ 16,030,333  
                 

 

Total Assets:  

December 31,

2016

   

December 31,

2015

 
Antimony            
United States   $ 2,693,614     $ 2,676,263  
Mexico     13,027,952       13,400,895  
Subtotal Antimony     15,721,566       16,077,158  
Zeolite     2,044,432       2,183,043  
   Total   $ 17,765,998     $ 18,260,201  

 

    For the year ended     For the year ended  
Capital expenditures:  

December 31,

2016

   

December 31,

2015

 
Antimony            
United States   $ 36,028     $ 33,028  
Mexico     496,046       3,435,002  
Subtotal Antimony     532,074       3,468,030  
Zeolite     133,296       196,238  
   Total   $ 665,370     $ 3,664,268  

 

Segment Operations for the   Antimony     Antimony     Precious     Bear River        
Year ended December 31, 2016   USA     Mexico     Metals     Zeolite     Totals  
                               
Total revenues   $ 8,740,602     $ 3,568     $ 672,871     $ 2,473,094     $ 11,890,135  
                                         
Depreciation and amortization     81,328       704,541       -       213,868       999,737  
                                         
Income (loss) from operations     4,048,193       (5,109,734 )     -       245,019       (816,522 )
                                         
Income tax expense     (13,090 )     (285,048 )     -       -       (298,138 )
                                         
Other income (expense)     (34,262 )     (149,165 )     -       (11,113 )     (194,540 )
                                         
NET INCOME (LOSS)   $ 2,859,972     $ (5,133,439 )   $ 672,871     $ 233,907     $ (1,309,200 )

 

Segment Operations for the   Antimony     Antimony     Precious     Bear River        
Year ended December 31, 2015   USAC     Mexico     Metals     Zeolite     Totals  
                               
Total revenues   $ 9,856,398     $ 7,535     $ 491,426     $ 2,753,644     $ 13,109,003  
                                         
Depreciation and amortization     61,819       649,526       -       221,441       932,786  
                                         
Income (loss) from operations     4,990,865       (6,311,265 )     -       511,403       (808,997 )
                                         
Other income (expense):     (24,280 )     -       -       (5,255 )     (29,534 )
                                         
NET INCOME (LOSS)   $ 4,475,160     $ (6,311,265 )   $ 491,426     $ 506,148     $ (838,531 )

 

v3.7.0.1
2. Concentrations of Risk (Details) - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Sales to Three Largest Customers $ 4,731,706 $ 6,115,750
Total percentage of revenue 39.80% 46.70%
Mexichem Specialty Compounds Inc.    
Sales to Three Largest Customers $ 2,108,998 $ 3,142,586
East Penn Manufacturing Inc    
Sales to Three Largest Customers 1,147,854 1,236,250
KohlerCorporation [Member]    
Sales to Three Largest Customers $ 1,474,854 $ 1,736,914
v3.7.0.1
2. Concentrations of Risk (Details 1) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Accounts Receivable $ 314,082 $ 265,843
Total percentage of receivables 83.90% 62.90%
Gopher Resources    
Accounts Receivable $ 0 $ 141,570
GE Lighting [Member]    
Accounts Receivable 162,582 0
Teck American Inc    
Accounts Receivable 0 80,946
KohlerCorporation [Member]    
Accounts Receivable 151,500 0
Wildfire Construction    
Accounts Receivable $ 0 $ 43,327
v3.7.0.1
3. Summary of Significant Accounting Policies (Details) - shares
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Total possible dilution 2,001,005 2,001,005
Warrant [Member]    
Total possible dilution 250,000 250,000
Convertible preferred stock    
Total possible dilution 1,751,005 1,751,005
v3.7.0.1
4. Accounts Receivable and Due to Factor (Details) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Accounts Receivable And Due To Factor Tables    
Accounts receivable - non factored $ 401,720 $ 412,922
Accounts receivable - factored with recourse 150,399 13,782
Less allowance for doubtful accounts 0 (4,031)
Accounts receivable - net $ 552,119 $ 422,673
v3.7.0.1
4. Accounts Receivable and Due to Factor (Details Narrative) - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Accounts Receivable And Due To Factor Details Narrative    
Factoring Expense $ 35,182 $ 41,117
Net accounts receivable factored during the year $ 1,800,000 $ 2,100,000
v3.7.0.1
5. Inventories (Details) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Inventories $ 855,637 $ 1,094,238  
Antimony Metal [Member]      
Inventories 112,300 102,207  
Antimony Oxide [Member]      
Inventories 326,126 332,068  
Antimony Concentrates      
Inventories 30,815   $ 133,954
Antimony Ore [Member]      
Inventories 181,815 319,631  
Antimony [Member]      
Inventories 651,056 887,860  
Zeolite (Member)      
Inventories $ 204,581 $ 206,378  
v3.7.0.1
6. Properties, Plants and Equipment (Details) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Plant and equipment $ 12,329,524 $ 11,717,968
Buildings 1,498,148 1,498,148
Mineral Rights 3,797,166 3,743,352
Land & Other 5,819,176 5,819,176
Total 23,444,014 22,778,644
Accumulated Depreciation (7,748,048) (6,748,311)
Properties, plants and equipment, net 15,695,966 16,030,333
USAC    
Plant and equipment 908,578 872,548
Buildings 247,210 247,210
Mineral Rights 0 0
Land & Other 3,274,572 3,274,572
Total 4,430,360 4,394,330
Accumulated Depreciation (2,538,257) (2,456,928)
Properties, plants and equipment, net 1,892,103 1,937,402
MEXICO    
Plant and equipment 7,943,686 7,497,791
Buildings 900,992 900,992
Mineral Rights 3,793,502 3,743,352
Land & Other 2,529,294 2,529,294
Total 15,167,474 14,671,429
Accumulated Depreciation (2,836,164) (2,131,624)
Properties, plants and equipment, net 12,331,310 12,539,805
BRZ    
Plant and equipment 3,477,260 3,347,629
Buildings 349,946 349,946
Mineral Rights 3,664 0
Land & Other 15,310 15,310
Total 3,846,180 3,712,885
Accumulated Depreciation (2,373,627) (2,159,759)
Properties, plants and equipment, net $ 1,472,553 $ 1,553,126
v3.7.0.1
7. Asset Retirement Obligation (Details) - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Asset Retirement Obligation Disclosure [Abstract]      
Beginning Balance $ 152,827 $ 147,690 $ 150,080
Accretion during the year 5,455 5,137 (2,390)
Ending Balance $ 158,282 $ 152,827 $ 147,690
v3.7.0.1
7. Asset Retirement Obligation (Details Narrative) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Asset Retirement Obligation Details Narrative    
Asset retirement obligation liability with reclamation obligations $ 265,782 $ 260,327
v3.7.0.1
8. Long-Term Debt (Details) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Total debt $ 1,863,915 $ 1,899,032
Less current portion (391,046) (181,287)
Noncurrent portion 1,472,869 1,717,745
First Security Bank [Member]    
Total debt 18,245 27,845
Catepillar Finance [Member]    
Total debt 40,556 0
Wells Fargo Bank [Member]    
Total debt 473 5,399
De Lage Landen Financial Services [Member]    
Total debt 0 2,171
De Lage Landen Financial Services 1 [Member]    
Total debt 20,581 0
De Lage Landen Financial Services 2 [Member]    
Total debt 22,944 27,587
PhyllisRice [Member]    
Total debt 14,146 14,146
SoyatalMine [Member]    
Total debt 776,319 820,272
Guadalupe Mine [Member]    
Total debt 970,651 972,312
Western States Equipment Co [Member]    
Total debt 0 0
BMT Leasing [Member]    
Total debt 0 0
De Lage Landen Financial Services 3 [Member]    
Total debt $ 0 $ 29,300
v3.7.0.1
8. Long-Term Debt (Details 1)
Dec. 31, 2016
USD ($)
Long-term Debt Details 1  
2017 $ 391,046
2018 260,232
2019 307,081
2020 198,436
2021 108,150
Thereafter 598,970
Long Term Debt Total $ 1,863,915
v3.7.0.1
9. Notes Payable to Bank (Details) - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Notes payable to bank $ 167,317 $ 130,672
Promissory note payable CD 48614    
Notes payable to bank 76,350 36,881
Promissory note payable CD 48615    
Notes payable to bank $ 90,967 $ 93,791