-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S7QCZQXOn/05EjjFWtoCcW6BmcsRdnN/RK/z9Y67tP5HO6mr2P4eoKEWvZromqGm gYrR5kySKjLzzTi4BM8Kgw== 0001072613-05-001996.txt : 20050812 0001072613-05-001996.hdr.sgml : 20050812 20050812164505 ACCESSION NUMBER: 0001072613-05-001996 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050630 FILED AS OF DATE: 20050812 DATE AS OF CHANGE: 20050812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED STATES ANTIMONY CORP CENTRAL INDEX KEY: 0000101538 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY SMELTING & REFINING OF NONFERROUS METALS [3330] IRS NUMBER: 810305822 STATE OF INCORPORATION: MT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-08675 FILM NUMBER: 051022277 BUSINESS ADDRESS: STREET 1: P O BOX 643 CITY: THOMPSON FALLS STATE: MT ZIP: 59873 BUSINESS PHONE: 4068273523 MAIL ADDRESS: STREET 1: PO BOX 643 CITY: THOMPSON FALLS STATE: MT ZIP: 59873-0643 FORMER COMPANY: FORMER CONFORMED NAME: AGAU MINES INC DATE OF NAME CHANGE: 19740728 10QSB 1 form10qsb_13754.txt FORM 10-QSB (JUNE 30, 2005) ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________ FORM 10-QSB _____________ (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2005 [_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ____________ to ____________ Commission file number 33-00215 UNITED STATES ANTIMONY CORPORATION ---------------------------------------------- (Name of small business issuer in its charter) MONTANA 81-0305822 - ------------------------------- ---------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) P.O. BOX 643, THOMPSON FALLS, MONTANA 59873 --------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (406) 827-3523 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] No [_] At August 11, 2005, the registrant had outstanding 32,592,483 shares of par value $0.01 common stock. ================================================================================ UNITED STATES ANTIMONY CORPORATION QUARTERLY REPORT ON FORM 10-QSB FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005 TABLE OF CONTENTS Page ---- PART I - FINANCIAL INFORMATION Item 1: Financial Statements..................................................1 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations...................................6 Item 3: Controls and Procedures...............................................9 PART II - OTHER INFORMATION Item 1: Legal Proceedings.....................................................9 Item 2: Changes in Securities.................................................9 Item 3: Defaults upon Senior Securities.......................................9 Item 4: Submission of Matters to a Vote of Security Holders...................9 Item 5: Other Information.....................................................9 Item 6: Exhibits and Reports on Form 8-K......................................9 SIGNATURE....................................................................10 CERTIFICATIONS...............................................................11 [The balance of this page has been intentionally left blank.] PART I-FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
(UNAUDITED) JUNE 30, DECEMBER 31, 2005 2004 ------------ ------------ ASSETS Current assets: Cash $ 113,764 $ 11,642 Accounts receivable, less allowance for doubtful accounts of $30,000 103,468 56,774 Inventories 234,368 237,806 ------------ ------------ Total current assets 451,600 306,222 Investment in USAMSA, net 1,763 3,527 Properties, plants and equipment, net 835,536 683,003 Restricted cash for reclamation bonds 89,417 91,512 Deferred financing costs, net amortization 18,750 22,500 ------------ ------------ Total assets $ 1,397,066 $ 1,106,764 ============ ============ LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 627,082 $ 441,085 Accrued payroll and related taxes 120,566 102,428 Other accrued liabilities 71,607 76,385 Deferred revenue 0 30,000 Accrued interest payable 45,470 30,890 Payable to related parties 293,250 287,687 Long-term debt, current 47,117 30,235 Accrued reclamation costs, current 71,250 100,000 ------------ ------------ Total current liabilities 1,276,342 1,098,710 Convertible notes payable 350,000 350,000 Long-term debt, noncurrent 644,955 636,695 Accrued reclamations costs, noncurrent 71,250 42,500 ------------ ------------ Total liabilities 2,342,547 2,127,905 ------------ ------------ Commitments and contingencies (Note 3) Stockholders' deficit: Preferred stock, $0.01 par value, 10,000,000 shares authorized: Series A: None and 4,500 shares issued and outstanding 0 45 Series B: 750,000 shares issued and outstanding 7,500 7,500 Series C: 177,904 shares issued and outstanding 1,779 1,779 Series D: 1,899,672 shares issued and outstanding 18,996 18,996 Common stock, $0.01 par value, 50,000,000 shares authorized; 32,475,483 issued and outstanding 324,755 315,289 Additional paid-in capital 18,373,278 18,117,824 Accumulated deficit (19,671,789) (19,482,574) ------------ ------------ Total stockholders' deficit (945,481) (1,021,141) ------------ ------------ Total liabilities and stockholders' deficit $ 1,397,066 $ 1,106,764 ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 1 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED ---------------------------- ---------------------------- JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Revenues: Sales of antimony products $ 633,505 $ 510,324 $ 1,356,040 $ 1,092,739 Sales of zeolite products 377,689 342,013 687,678 537,099 ------------ ------------ ------------ ------------ 1,011,194 852,337 2,043,718 1,629,838 ------------ ------------ ------------ ------------ Cost of sales: Cost of antimony production 508,742 442,614 992,446 849,235 Antimony depreciation 10,300 10,300 20,600 20,600 Antimony freight and delivery 41,960 35,526 92,344 79,683 Cost of zeolite production 239,770 192,320 498,165 346,920 Zeolite depreciation 18,200 13,800 36,400 27,600 Zeolite freight and delivery 26,289 115,843 48,851 130,514 ------------ ------------ ------------ ------------ 845,261 810,403 1,688,806 1,454,552 ------------ ------------ ------------ ------------ Gross profit 165,933 41,934 354,912 175,286 ------------ ------------ ------------ ------------ Other operating expenses: Corporate general and administrative 45,639 48,316 127,076 129,944 Antimony general and administrative 33,694 13,688 39,927 22,600 Antimony sales expenses 13,219 11,805 26,985 25,873 Bear River Zeolite general and administrative 85,949 18,789 157,248 89,950 Bear River Zeolite sales expenses 44,517 15,428 63,986 34,592 ------------ ------------ ------------ ------------ 223,018 108,026 415,222 302,959 ------------ ------------ ------------ ------------ Other (income) expense: USAMSA expense 882 0 1,764 0 Interest expense 38,363 30,473 73,849 57,785 Factoring expense 25,686 20,964 53,945 40,243 Interest income and other (321) (1,977) (653) (2,463) ------------ ------------ ------------ ------------ 64,610 49,460 128,905 95,565 ------------ ------------ ------------ ------------ Net loss $ (121,695) $ (115,552) $ (189,215) $ (223,238) ============ ============ ============ ============ Basic net loss per share of common stock $ Nil $ Nil $ Nil $ Nil ============ ============ ============ ============ Basic weighted average shares outstanding 31,912,670 30,435,217 31,731,925 29,512,745 ============ ============ ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 2 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED ---------------------------- JUNE 30 JUNE 30, 2005 2004 ------------ ------------ Cash flows from operating activities: Net loss $ (189,215) $ (223,238) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Depreciation and amortization 62,514 52,750 Change in: Restricted cash 2,095 105,649 Accounts receivable (46,694) 8,530 Inventories 3,438 12,917 Accounts payable 185,997 (199,727) Accrued payroll and related taxes 18,138 (39,178) Other accrued liabilities (4,778) 2,239 Judgment payable 1,700 Deferred revenue (30,000) 0 Accrued interest payable 14,580 2,961 Payable to related parties 5,563 9,743 ------------ ------------ Net cash provided (used) by operating activities 21,638 (265,654) ------------ ------------ Cash flows from investing activities: Purchase of properties, plants and equipment (209,533) (127,289) ------------ ------------ Net cash used by investing activities (209,533) (127,289) ------------ ------------ Cash flows from financing activities: Proceeds from issuance of common stock and warrants 264,875 397,214 Principle payments on notes payable to bank (57,877) (142,090) Proceeds from notes payable to bank 58,019 122,121 Proceeds from related party note payable 25,000 0 Change in checks issued and payable 0 15,698 ------------ ------------ Net cash provided by financing activities 290,017 392,943 ------------ ------------ Net change in cash 102,122 0 Cash, beginning of period 11,642 0 ------------ ------------ Cash, end of period $ 113,764 $ 0 ============ ============ Supplemental disclosures: Non-cash investing activities: Series A preferred stock converted to common stock $ 45 ============ Non cash financing activities: Common stock issued in satisfaction of accounts payable $ 150,145 ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 3 PART I - FINANCIAL INFORMATION, CONTINUED: UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. BASIS OF PRESENTATION: The unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-QSB. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of the Company's management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim financial statements have been included. Operating results for the three-month period ended June 30, 2005 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2005. Certain consolidated financial statement amounts for the three-month period ended June 30, 2004 have been reclassified to conform to the 2005 presentation. These reclassifications had no effect on the net loss or accumulated deficit as previously reported. For further information refer to the financial statements and footnotes thereto in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2004. 2. LOSS PER COMMON SHARE: The Company accounts for its income (loss) per common share according to Statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS No. 128"). Under the provisions of SFAS No. 128, primary and fully diluted earnings per share are replaced with basic and diluted earnings per share. Basic earnings per share is arrived at by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding, and does not include the impact of any potentially dilutive common stock equivalents. Common stock equivalents, including warrants to purchase the Company's common stock and common stock issuable upon the conversion of debentures, are excluded from the calculations when their effect is antidilutive. 3. COMMITMENTS AND CONTINGENCIES: Until 1989, the Company mined, milled and leached gold and silver in the Yankee Fork Mining District in Custer County, Idaho. In 1994, the U.S. Forest Service, under the provisions of the Comprehensive Environmental Response Liability Act of 1980 ("CERCLA"), designated the cyanide leach plant as a contaminated site. In 1996, the Idaho Department of Environmental Quality requested that the Company sign a consent decree related to completing the reclamation and remediation at the Preachers Cove mill. The Company has been diligently reclaiming the property and anticipates it will have the reclamation complete in the near term. In November of 2001, the Environmental Protection Agency ("EPA") listed two by-products of the Company's antimony oxide manufacturing process as hazardous wastes under subtitle C of the Resource Conservation and Recovery Act ("RCRA"), and emergency notification requirements for releases to the environment under CERCLA. On November 26, 2002, the Company received a notice of violation related to a hazardous waste discharge that was discovered during a hazardous waste compliance evaluation inspection conducted at the Company's Thompson Falls antimony facility. In response to the notice, the Company removed certain antimony materials from its production area and agreed to ensure that future releases of hazardous waste would not occur. At June 30, 2005, management believes that no additional liability will result from the violation. 4 UNITED STATES ANTIMONY CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED), CONTINUED: 3. COMMITMENTS AND CONTINGENCIES, CONTINUED: The Company's management believes that USAC is currently in substantial compliance with environmental regulatory requirements and that its accrued environmental reclamation costs are representative of management's estimate of costs required to fulfill its reclamation obligations. Such costs are accrued at the time the expenditure becomes probable and the costs can reasonably be estimated. The Company recognizes, however, that in some cases future environmental expenditures cannot be reliably determined due to the uncertainty of specific remediation methods, conflicts between regulating agencies relating to remediation methods and environmental law interpretations, and changes in environmental laws and regulations. Any changes to the Company's reclamation plans as a result of these factors could have an adverse affect on the Company's operations. The range of possible losses in excess of the amounts accrued cannot be reasonably estimated at this time. 4. BUSINESS SEGMENTS The Company has two operating segments, antimony and zeolite. Management reviews and evaluates the operating segments exclusive of interest and factoring expenses. Therefore, interest expense is not allocated to the segments. Selected information with respect to segments for the quarters ended June 30, 2005 and 2004 are as follows: 2005 2004 ------------ ------------ Revenues: Antimony $ 633,505 $ 510,324 Zeolite 377,689 342,013 ------------ ------------ $ 1,011,194 $ 852,337 ============ ============ Cost of sales: Production and freight and delivery: Antimony $ 550,702 $ 478,140 Zeolite 266,059 308,163 Depreciation: Antimony 10,300 10,300 Zeolite 18,200 13,800 ------------ ------------ $ 845,261 $ 810,403 ============ ============ Gross profit (loss) $ 165,933 $ 41,934 ============ ============ Other operating expenses: Sales expense: Antimony $ 13,219 $ 11,805 Zeolite 44,517 15,428 General and administrative expense: Corporate 45,639 48,316 Antimony 33,694 13,688 Zeolite 85,949 18,789 ------------ ------------ $ 223,018 $ 108,026 ============ ============ Capital expenditures: Antimony $ 0 $ 19,700 Zeolite 100,721 58,218 ------------ ------------ $ 100,721 $ 77,918 ============ ============ Properties, plant and equipment, net $ 835,536 $ 683,003 ============ ============ 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL This report contains both historical and prospective statements concerning the Company and its operations. Prospective statements (known as "forward-looking statements") may or may not prove true with the passage of time because of future risks and uncertainties. The Company cannot predict what factors might cause actual results to differ materially from those indicated by prospective statements. RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2005 COMPARED TO THE THREE-MONTH PERIOD ENDED JUNE 30, 2004 The Company's operations resulted in a net loss of $121,695 for the three-month period ended June 30, 2005, which is comparable with the net loss of $115,552 for the same period ended June 30, 2004. Total revenues from antimony product sales for the second quarter of 2005 were $ 633,505 compared with $510,324 for the comparable quarter of 2004, an increase of $123,181. During the three-month period ended June 30, 2005, 45% of the Company's antimony product sales were from sales to one customer (Kohler, Co.) and 18% were from sales to a second customer (Sarnafil). Sales of antimony products during the second quarter of 2005 consisted of 406,657 pounds at an average sale price of $1.56 per pound. During the second quarter of 2004 sales of antimony products consisted of 326,465 pounds at an average sale price of $1.56 per pound. Sales of zeolite products during the second quarter of 2005 were $377,689 compared with second quarter sales in 2004 of $342,013. The increase in sales for the second quarter of 2005 compared to the same quarter of 2004 was due to the Company's marketing efforts and a corresponding increase in the number of zeolite customers. During the three month period ended June 30, 2005 sales of zeolite products consisted of 4,108 tons compared to 1,976 tons for the same period in 2004. Gross profit from antimony and zeolite sales during the second quarter of 2005 was $165,933 compared with gross profit of $41,934 during the second quarter of 2004. The cost of antimony sales was $508,742, or $1.25 per pound sold, during the second quarter of 2005 compared to $442,614 or $1.36 per pound sold, during the second quarter of 2004. The increase was due to increased volume of production. The cost of zeolite sales was $239,770 for the second quarter of 2005 compared to $192,320 during the second quarter of 2004. The increase in cost of zeolite sales during the second quarter of 2005 is related to the increase in sales. Antimony depreciation for the second quarter of 2005 was $10,300 compared to $10,300 for the second quarter of 2004. Zeolite depreciation for the second quarter of 2005 was $18,200 compared to $13,800 for the second quarter of 2004. The increase in depreciation is due to the continued purchase of capital assets associated with zeolite production. Antimony freight and delivery for the second quarter of 2005 was $41,960 and was comparable to $35,526 of freight and delivery expense during the second quarter of 2004. Zeolite freight and delivery for the second quarter of 2005 was $26,289 compared to $115,843 for the second quarter of 2004. The decrease from 2004 to 2005 is due to customers transporting their own product as opposed to the Company paying to have it shipped. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, CONTINUED: During the second quarter of 2005, the Company incurred costs totaling $85,949 associated with general and administrative expenses of its 100% owned subsidiary, Bear River Zeolite Company, compared to $18,789 of such expenses in the comparable quarter of 2004. The increase is due to an increase in royalties that correspond to an increase in sales. Zeolite sales expenses were $44,517 during the second quarter of 2005 compared to $15,428 during the second quarter of 2004. General and administrative expenses in the antimony division were $33,694 during the second quarter of 2005 compared to $13,688 during the same quarter of 2004. Antimony sales expenses were $13,219 in the second quarter of 2005 and were comparable with $11,805 during the second quarter of 2004. Interest expense of $38,363 was incurred during the second quarter of 2005 compared to $30,473 during the second quarter of 2004. Accounts receivable factoring expense was $25,686 during the second quarter of 2005 compared to $20,964 during the second quarter of 2004. The increase was primarily due to an increase in sales. Interest and other income decreased from $1,977 during the second quarter of 2004 to $321 during the second quarter of 2005. The decrease was the result of less funds invested during the second quarter of 2005. FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 COMPARED TO THE SIX-MONTH PERIOD ENDED JUNE 30, 2004 The Company's operations resulted in a net loss of $189,215 for the six-month period ended June 30, 2005 compared with a net loss of $223,238 for the six-month period ended June 30, 2004. The decrease in net loss for the first six months of 2005 as compared to the first six months of 2004 is due to increased sales prices of antimony oxide and an increase in sales of zeolite during the first six months of 2005. Total revenues from antimony product sales for the first six months of 2005 were $1,356,040 compared with $1,092,739 for the comparable period of 2004, an increase of $263,301. During the six-month period ended June 30, 2005, 54% of the Company's revenues from antimony products sales were from sales to one customer (Kohler Co.). Sales of zeolite products during the first six months of 2005 were $687,678 compared with the first six months of 2004 of $537,099. The increase in sales for the first six months in 2005 compared to the same period of 2004 was due to the Company's marketing efforts and a corresponding increase in the number of zeolite customers. During the six-month period ended June 30, 2005 sales of zeolite products consisted of 7,682 tons compared to 4,441 tons for the same period in 2004. Gross profit from antimony and zeolite sales during the first six months of 2005 was $354,912 compared with gross profit of $175,286 during the first six months of 2004. The cost of antimony sales was $992,446 during the first six months of 2005 compared to $849,235, during the first six months of 2004. The increase was due to increased volume of production and sales. The cost of zeolite sales was $498,165 for the first six months of 2005 compared to $346,920 during the first six months of 2004. The increase in cost of zeolite sales during 2005 is related to the increase in sales. Antimony depreciation for the first six months of 2005 was $20,600 compared to $20,600 for the first six months of 2004. Zeolite depreciation for the first six months of 2005 was $36,400 compared to $27,600 for the first six months of 2004. The increase in depreciation is due to the continued purchase of capital assets associated with zeolite production. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION, CONTINUED: Antimony freight and delivery for the first six months of 2005 was $92,344 compared to $79,683 of freight and delivery expense during the first six months of 2004. The increase corresponds to the increase in antimony sales and an increase in fuel prices. Zeolite freight and delivery for the first six months of 2005 was $48,851 compared to $130,514 for the first six months of 2004. The decrease from 2004 to 2005 is due to customers transporting their own product as opposed to the Company paying to have it shipped. During the first six months of 2005, the Company incurred costs totaling $157,248 associated with general and administrative expenses of its 100% owned subsidiary, Bear River Zeolite Company, compared to $89,950 of such expenses in the comparable period of 2004. The increase is due to royalties included in the general and administrative expenses during 2005. Zeolite sales expenses were $63,986 during the first six months of 2005 compared to $34,592 during the first six months of 2004. The increase corresponds to the increase in sales. General and administrative expenses in the antimony division were $39,927 during the first six months of 2005 compared to $22,600 during the same period of 2004. The increase is due to expenses related to researching a new antimony operations in Coaluila, Mexico. Antimony sales expenses were $26,985 in the first six months of 2005 and were comparable with $25,873 during the first six months of 2004. Interest expense of $73,849 was incurred during the first six months of 2005 compared to $57,785 during the first six months of 2004. The increase corresponds to an increase in the amount of debt the Company has outstanding. Accounts receivable factoring expense was $53,945 during the first six months of 2005 compared to $40,243 during the first six months of 2004. The increase was primarily due to an increase in sales. Interest and other income decreased from $2,463 during the first six months of 2004 to $653 during the first six months of 2005. The decrease was the result of less funds invested during the first six months of 2005. FINANCIAL CONDITION AND LIQUIDITY At June 30, 2005, Company assets totaled $1,397,066, and there was a stockholders' deficit of $945,481. The stockholders' deficit decreased $75,660 from December 31, 2004. At June 30, 2005 the Company's total current liabilities exceeded its total current assets by $824,742. Due to the Company's operating losses, negative working capital, and stockholders' deficit, the Company's independent accountants included a paragraph in the Company's 2004 financial statements relating to a going concern uncertainty. To continue as a going concern the Company must generate profits from its antimony and zeolite sales and acquire additional capital resources through the sale of its securities or from short and long-term debt financing. Without financing and profitable operations, the Company may not be able to meet its obligations, fund operations and continue in existence. While management is optimistic that the Company will be able to sustain profitable operations and meet its financial obligations, there can be no assurance of such. Cash provided by operating activities during the first six months of 2005 was $21,638. 8 Cash used in investing activities during the first six months of 2005 was $209,533 and related to the construction of capital assets at the Bear River Zeolite facility. Net cash provided by financing activities was $290,017 during the first six months of 2005, and was primarily generated from an increase in proceeds from the issuance of common stock and warrants. ITEM 3. CONTROLS AND PROCEDURES An evaluation was performed by the Company's president and principal financial officer of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that evaluation, the Company's president and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2005, in ensuring that all material information required to be filed in this quarterly report has been made known to him in a timely fashion. There has been no change in our internal controls over financial reporting during the quarter ended June 30, 2005 that has materially affected, or is reasonable likely to materially affect, our internal controls over financial reporting. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES Neither the constituent instruments defining the rights of the registrant's securities filers nor the rights evidenced by the registrant's outstanding common stock have been modified, limited or qualified. ITEM 3. DEFAULTS UPON SENIOR SECURITIES The registrant has no outstanding senior securities. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K None Reports on Form 8-K None 9 SIGNATURE --------- Pursuant to the requirements of Section 13 or 15(b) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNITED STATES ANTIMONY CORPORATION (Registrant) By: /s/ John C. Lawrence Date: August 12, 2005 ----------------------------------------------------- John C. Lawrence, Director and President (Principal Executive, Financial and Accounting Officer) 10 EX-31 2 exh31_13754.txt 302 CERTIFICATION EXHIBIT 31.1 ------------ CERTIFICATIONS I, John C. Lawrence, President and Chief Executive Officer, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of United States Antimony Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report; 4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Not required; (c) Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and 5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting. Date: August 12, 2005 /s/John C. Lawrence - ------------------------------------------------------- John C. Lawrence, President and Chief Executive Officer EX-32 3 exh32_13754.txt 906 CERTIFICATION EXHIBIT 32.1 ------------ CERTIFICATION PURSUANT TO THE SARBANES-OXLEY ACT 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, John C. Lawrence, President, and Chief Executive Officer of United States Antimony Corporation ("the Company") do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: This Quarterly Report on Form 10-QSB of the Company for the fiscal quarter ended June 30, 2005, as filed with the Securities and Exchange Commission (the "report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: August 12, 2005 /s/ John C. Lawrence - ------------------------------------- John C. Lawrence President and Chief Executive Officer -----END PRIVACY-ENHANCED MESSAGE-----