10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2021
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission File No. 001-08675

UNITED STATES ANTIMONY CORPORATION

(Exact name of Registrant as specified in its charter)

Montana	81-0305822
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

P.O. Box 643, Thompson Falls, Montana

(Address of principal executive offices)

Registrant’s telephone number: (406 )827-3523

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	UAMY	NYSE American

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer ☐	Accelerated Filer ☐
Non-Accelerated Filer ☐	Small Reporting Company ☒ Emerging Growth Company ☐

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

At May 15, 2021, the registrant had outstanding 106,017,954 shares of par value $0.01 common stock.

UNITED STATES ANTIMONY CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD

ENDED MARCH 31, 2021

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION
Item 1: Financial Statements (unaudited)	1-15
Item 2: Management’s Discussion and Analysis of Results of Operations and Financial Condition	16-20
Item 3: Quantitative and Qualitative Disclosure about Market Risk	20
Item 4: Controls and Procedures	20
PART II – OTHER INFORMATION
Item 1: Legal Proceedings	21
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	21
Item 3: Defaults upon Senior Securities	21
Item 4: Mine Safety Disclosures	21
Item 5: Other Information	21
Item 6: Exhibits and Reports on Form 8-K	21
SIGNATURE	22
CERTIFICATIONS

[The balance of this page has been intentionally left blank.]

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

United States Antimony Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

March 31, 2021 and December 31, 2020

ASSETS
	March 31, 2021	December 31, 2020
Current assets:
Cash and cash equivalents	$23,042,330	$665,102
Certificates of deposit	254,873	254,212
Accounts receivable	537,567	238,634
Inventories	717,750	650,213
Other current assets	52,200	-
Total current assets	24,604,720	1,808,161
Properties, plants and equipment, net	11,026,428	11,225,594
Restricted cash for reclamation bonds	57,275	57,275
IVA receivable and other assets	206,818	208,472
Total assets	$35,895,241	$13,299,502
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued and payable	$-	$86,685
Accounts payable	1,294,514	1,876,874
Accrued liabilities	554,628	635,626
Payables to related party	6,294	227,432
Notes payable to bank	-	100,000
Export tax assessment payable	-	1,120,730
Hillgrove advances payable (Note 12)	1,134,221	378,074
Long-term debt, current portion	40,770	52,122
Total current liabilities	3,030,427	4,477,543
Long-term debt, net of current portion	33,138	34,304
Hillgrove advances payable (Note 12)	-	756,147
CARES Act note payable	443,400	443,400
Stock payable to directors for services	138,125	110,000
Asset retirement obligations and accrued reclamation costs	293,451	291,719
Total liabilities	3,938,541	6,113,113
Commitments and contingencies (Note 6 and 11)
Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized:
Series A: -0- shares issued and outstanding	-	-
Series B: 750,000 shares issued and outstanding
(liquidation preference $945,000 and $937,500
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 $5,084,770 and $5,043,622
respectively)	17,509	17,509
Common stock, $0.01 par value, 150,000,000 shares authorized;
105,963,567 and 75,949,757 shares issued and outstanding, respectively	1,059,634	759,496
Additional paid-in capital	63,856,560	39,050,899
Accumulated deficit	(32,986,282)	(32,650,794)
Total stockholders' equity	31,956,700	7,186,389
Total liabilities and stockholders' equity	$35,895,241	$13,299,502

The accompanying notes are an integral part of the consolidated financial statements.

1

United States Antimony Corporation and Subsidiaries

Consolidated Statements of Operations - Unaudited

	For the three months ended
	March 31, 2021	March 31, 2020
REVENUES	$1,253,287	$1,742,991
COST OF REVENUES	1,041,130	1,641,814
GROSS PROFIT	212,157	101,177
OPERATING EXPENSES:
General and administrative	170,050	199,971
Salaries and benefits	76,659	94,969
Other operating expenses	184,037	26,217
Professional fees	123,137	84,958
TOTAL OPERATING EXPENSES	553,883	406,115
INCOME (LOSS) FROM OPERATIONS	(341,726)	(304,938)
OTHER INCOME (EXPENSE):
Interest income	8,493	804
Interest expense	(2,255)	(4,748)
TOTAL OTHER INCOME (EXPENSE)	6,238	(3,944)
NET LOSS	(335,488)	(308,882)
Preferred dividends	(12,162)	(12,162)
Net loss available to common stockholders	$(347,650)	$(321,044)
Net loss per share of
common stock:
Basic and diluted	Nil	Nil
Weighted average shares outstanding:
Basic	92,711,336	69,697,150
Diluted	92,711,336	69,697,150

2

..

United States Antimony Corporation and Subsidiaries

Consolidated Statement of Changes in Stockholders' Equity

For the periods ended March 31, 2021 and March 31, 2020

(Unaudited)

	Total Preferred Stock		Common Stock		Additional		Total
					Paid	Accumulated	Stockholders'
Quarter ended March 31, 2021	Shares	Amount	Shares	Amount	In Capital	Deficit	Equity
Balances, December 31, 2020	2,678,909	$26,788	75,949,757	$759,496	$39,050,899	$(32,650,794)	$7,186,389
Issuance of common stock for cash	-	-	26,290,000	262,900	24,734,100	-	24,997,000
Common stock issuance costs	-	-	-	-	(1,654,820)	-	(1,654,820)
Common stock issued upon exercise of warrants	-	-	3,723,810	37,238	1,726,381	-	1,763,619
Net loss	-	-	-	-	-	(335,488)	(335,488)
Balances, March 31, 2021	2,678,909	$26,788	105,963,567	$1,059,634	$63,856,560	$(32,986,282)	$31,956,700

	Total Preferred Stock		Common Stock		Additional		Total
					Paid	Accumulated	Stockholders'
Quarter ended March 31, 2020	Shares	Amount	Shares	Amount	In Capital	Deficit	Equity
Balances, December 31, 2019	2,678,909	$26,788	69,661,436	$696,614	$37,107,730	$(29,363,990)	$8,467,142
Common stock issued upon exercise of warrants	-	-	250,000	2,500	60,000	-	62,500
Net loss	-	-	-	-	-	(308,882)	(308,882)
Balances, March 31, 2020	2,678,909	$26,788	69,911,436	$699,114	$37,167,730	$(29,672,872)	$8,220,760

The accompanying notes are an integral part of the consolidated financial statements.

3

United States Antimony Corporation and Subsidiaries

Consolidated Statements of Cash Flows - Unaudited

	For the three months ended
Cash Flows From Operating Activities:	March 31, 2021	March 31, 2020
Net income (loss)	$(335,488)	$(308,882)
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities:
Depreciation and amortization	222,464	226,281
Accretion of asset retirement obligation	1,732	2,654
Common stock payable for directors fees	28,125	28,125
Write-down of inventory to net realizable value	57,530	22,475
Other non-cash items	(661)	(660)
Change in:
Accounts receivable	(298,933)	54,761
Inventories	(125,067)	(39,124)
IVA receivable and other assets	(50,546)	2,083
Accounts payable	(582,360)	(24,528)
Accrued liabilities	(80,998)	(38,147)
Export tax assessment payable	(1,120,730)	23,774
Payables to related parties	(164,922)	14,923
Net cash (used) by operating activities	(2,449,854)	(36,265)
Cash Flows From Investing Activities:
Purchase of properties, plants and equipment	(23,298)	(96,271)
Net cash (used) by investing activities	(23,298)	(96,271)
Cash Flows From Financing Activities:
Change in checks issued and payable	(86,685)	56,102
Net borrowing from factor	-	6,347
Payments on advances from related party	(56,216)	(13,933)
Proceeds from issuance of common stock, net of issuance costs	23,342,180	-
Proceeds from exercise of warrants	1,763,619	-
Borrowing on notes payable to bank	-	2,488
Principal paid on notes payable to bank	(100,000)	-
Principal payments of long-term debt	(12,518)	(10,906)
Net cash provided by financing activities	24,850,380	40,098
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH	22,377,228	(92,438)
Cash and cash equivalents and restricted cash at beginning of period	722,377	172,767
Cash and cash equivalents and restricted cash at end of period	$23,099,605	$80,329
	57,275
NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for warrants	$-	$62,500

..

The accompanying notes are an integral part of the consolidated financial statements.

4

PART I - FINANCIAL INFORMATION, CONTINUED:

United States Antimony Corporation and Subsidiaries

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-Q. 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 March 31, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Going Concern Consideration

At March 31, 2021, the Company’s consolidated financial statements show working capital of approximately $21.6 million and an accumulated deficit of approximately $33 million. The Company has incurred losses for the past two years which are principally a result of the Company’s antimony operations due to both depressed antimony prices and production costs incurred in Mexico. To improve conditions, the Company continues searching for areas to reduce these production costs.

In the first quarter of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants. These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, a geochemical, geological, and geophysical study of the Los Juarez property, an analysis and survey of the tailings at its Puerto Blanco floatation mill, additional managerial staff at USAC and BRZ headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana. With the funds raised, management believes the Company has sufficient funds to sustain its operations and meet its financial obligations during the 12 months following the date of issuance of these consolidated financial statements.

2. 

Developments in Accounting Pronouncements

Accounting Standards Updates Adopted

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements.

5

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

2.

Developments in Accounting Pronouncements, Continued:

Accounting Standards Updates to Become Effective in Future Periods

In August 2020, the FASB issued ASU No.2019-12Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements.

3.                

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.

At March 31, 2021 and 2020, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

	March 31, 2021	March 31, 2020
Warrants	2,471,089	452,041
Convertible preferred stock	1,751,005	1,751,005
Total possible dilution	4,222,094	2,203,046

4. 

Revenue Recognition

Products consist of the following:

●

Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal

●

Zeolite: includes coarse and fine zeolite crushed in various sizes

●

Precious Metals: includes unrefined and refined gold and silver

6

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

4.       

Revenue Recognition, Continued:

Sales of products for the three month period ended March 31, 2021 and 2020, were as follows:

	Three Months Ended
	March 31,
	2021	2020
Antimony	$657,107	$1,121,425
Zeolite	519,947	559,360
Precious metals	76,233	62,206
	$1,253,287	$1,742,991

The following is sales information by geographic area based on the location of customers for the three month period ended March 31, 2021 and 2020:

	Three Months Ended
	March 31,
	2021	2020
United States	$1,165,513	$1,566,237
Canada	87,774	176,754
	$1,253,287	$1,742,991

Sales of products to significant customers were as follows for the three month period ended March 31, 2021 and 2020:

Sales to Three	For the Period Ended
Largest Customers	March 31, 2021	March 31, 2020
Zeo Inc.	$152,317	$-
GE Chaplin, Inc.	298,150	114,291
Nyacol Technologies	-	106,161
Mexichem Specialty Compounds	327,670	413,993
	$778,137	$634,445
% of Total Revenues	62.09%	36.40%

7

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

4.       

Revenue Recognition, Continued:

Accounts receivable from largest customers were as follows at March 31, 2021 and December 31, 2020:

Largest
Accounts Receivable	March 31, 2021	December 31, 2020
Mexichem Specialty Compounds	$185,804	$-
GE Chaplin, Inc.	102,408	-
Earth Innovations Inc.	-	68,055
	$288,212	$68,055
% of Total Receivables	53.61%	28.52%

Our trade accounts receivable balance related to contracts with customers was $537,567 at March 31, 2021 and $238,634 at December 31, 2020. Our products do not involve any warranty agreements and product returns are not typical.

5.

Inventories

Inventories at March 31, 2021 and December 31, 2020 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out 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. Inventories at March 31, 2021 and December 31, 2020 are as follows:

	March 31, 2021	December 31, 2020
Antimony Metal	$25,238	$268,100
Antimony Oxide	360,566	67,377
Antimony Ore	167,945	95,880
Total antimony	553,749	431,357
Zeolite	164,001	218,856
	$717,750	$650,213

Antimony oxide inventory consisted of finished product oxide held at the Company's plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material. The Company's zeolite inventory consists of salable zeolite material.

At March 31, 2021 and December 31, 2020, the antimony inventory in Mexico was valued at estimated net realizable value.

8

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

6. 

Commitments and Contingencies

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three month periods ended March 31, 2021 and 2020, the Company had royalty expense of $62,130 and $64,150, respectively. At March 31, 2021 and December 31, 2020, the Company had accrued royalties payable of $353,591 and $434,981, respectively, which is included in accrued liabilities. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

In June of 2013, the Company entered into a lease, as lessor, to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease called for a term of one year and required payments of $10,000, plus a tax of $1,700, per month. The lease was renewable each year with a 15 day notice to the lessor and agreement of terms. The lease renewal was scheduled for renewal in June 2020. In July 2020, the Company decided not to renew the lease due to the continuing low market price for antimony and to reduce Mexican antimony production while seeking other lower cost sources of antimony ore and concentrates. The Company wrote off $318,502 of assets at the Wadley mine during the year ended December 31, 2020.

7. 

Notes Payable to Bank

At March 31, 2021 and December 31, 2020, the Company had the following notes payable to bank:
	2021	2020
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	$-	$99,999
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	-	1
Total notes payable to the bank	$-	$100,000

The notes are paid in full as of March 31, 2021 and the lien on the Certificate of Deposit has been released.

9

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

8. 

Debt

Long-Term debt at March 31, 2021 and December 31, 2020 is as follows:	March 31,	December 31,
	2021	2020
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$58,500	$66,800
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.	15,408	17,480
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.	-	2,146
	73,908	86,426
Less current portion	(40,770)	(52,122)
Long-term portion	$33,138	$34,304

At March 31, 2021, principal payments on debt are due as follows:

12 Months Ending March 31,	Principal Payment
2022	40,770
2023	33,138
	$73,908

9. 

Related Party Transactions

The Company’s previous President and Chairman, John Lawrence, rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr. Lawrence owned. The amount due to Mr. Lawrence’s estate as of March 31, 2021 and December 31, 2020 was $6,094 and $171,017, respectively. During the three months ended March 31, 2021, the Company paid $164,922 to John Lawrence’s estate as reimbursement for these advances.

During 2019, Mr. Lawrence advanced funds to the Company that had a balance at December 31, 2020 of $56,216. During the three month period ended March 31, 2021, the Company paid First Security Bank on behalf of Mr. Lawrence $56,216. The balance of the advances due to Mr. Lawrence at March 31, 2021 is $0.

John C. Gustaven, Interim Chief Executive Officer of the Company, has an advance due from the Company of $200 at December 31, 2020. During the three month period ended March 31, 2021, the Company did not make any payments to Mr. Gustaven on these advances.

10

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

10. 

Stockholder’s Equity

During the three month period ended March 31, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the three month period ended March 31, 2021 and March 31, 2020, the Company accrued $28,125 and $28,125, respectively, in directors’ fees payable that will be paid in common stock.

During the three month period ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $1,763,619 in cash from the exercise of warrants. During the three month period ended March 31, 2020, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share were exercised by the Company’s previous President and Chairman, John Lawrence. The warrants were exercised in exchange for a reduction of $62,500 in an amount payable to Mr. Lawrence.

Warrants

Transactions in common stock purchase warrants for the three month period ended March 31, 2021 and the year ended December 31, 2020 are as follows:

	Number of Warrants	Exercise Prices
Balance December 31, 2019	702,041	$0.25 - $0.65
Issued	5,742,858	$0.46
Exercised	(250,000)	$0.25
Balance December 31, 2020	6,194,899	$0.46 - $0.65
Issued	-
Exercised	(3,723,810)	$0.46 - $0.65
Balance March 31, 2021	2,471,089	$0.46 - $0.65

These warrants expire as follows:

Shares	Exercise Price	Expiration  Date
185,374	$0.65	2022
2,285,715	$0.46	2025
2,471,089

11. 

Income and Other Taxes

Mexican Tax Assessment

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 was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The Company engaged accountants and tax attorneys in Mexico to defend its position. The assessment was settled in 2018 with no assessment against the Company.

11

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

11. 

Income and Other Taxes , Continued:

In early 2019, the Company was notified that SAT re-opened its audit of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $821,000 USD as of March 31, 2021. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. The Company engaged a tax attorney in Mexico to defend its position. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments. Management expects the appeal process to continue through 2021.

At March 31, 2021 and December 31, 2020, management assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorney in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at March 31, 2021 and December 31, 2020 relating to this potential tax liability. There can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position. If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its current net operating loss carryforward, or accrue penalties, interest, and tax associated with the assessment.

Other Taxes

In 2016, USAMSA imported coal from the United States to its smelter in Mexico to process Australian concentrates associated with the Hillgrove agreement (Note 12).  At that time, the Company applied for and was granted a Maquiladora (IMMEX), in accordance with a Manufacturing and Export Services Industry program offered by the Mexican government to attract and promote foreign investment in Mexico.  With the IMMEX, all imported goods to Mexico that are also exported in altered form are exempt from the requirement of paying the 16% tax (IVA).  The Company did not pay IVA on any of the imported coal used to process the Australian concentrates.   In 2020, the Company was informed by the SAT that it owed the 16% IVA money for all the coal imported for the processing of the Australian concentrates.  Additionally, there were penalties and fees that SAT added to the total amount.  In late 2020, the Company filed a motion before the Taxpayer's Defense Agency (PRODECON), but the motion was denied.  To avoid exorbitant penalties, the Company elected to pay the assessed amount in early 2021. For the year ended December 31, 2020, the Company recognized an export tax expense of $1,120,730 and accrued a liability for this assessment. The assessment was settled with a payment of $1,120,730 during the three month period ended March 31, 2021.

12. Hillgrove Advances Payable

On November 7, 2014, the Company entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) in which the Company was advanced funds from Hillgrove to build facilities to process Hillgrove antimony concentrate. The Company has not processed Hillgrove concentrate for more than two years. The agreement requires the Company to pay the advance balance after Hillgrove issues a stop notice. Payments would begin 90 days after the stop notice issue date and be made in six equal and quarterly installments. Hillgrove was acquired by Red River Resources LTD (“Red River”) during 2019. The total balance of the advance liability due was $1,134,221 at March 31, 2021 and December 31, 2020. After March 31, 2021, the Company successfully negotiated a settlement with Red River for an agreed upon amount of $1,020,799. This balance was paid on April 8, 2021.

12

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

13. 

Business Segments

The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. 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, although the Company does have a sales operation in Canada.

Segment disclosure regarding sales to major customers is located in Note 4.

Properties, plants	March 31,	December 31,
and equipment, net:	2021	2020
Antimony
United States	$1,629,846	$1,637,738
Mexico	7,495,331	7,635,410
Subtotal Antimony	9,125,177	9,273,148
Precious metals	924,707	933,885
Zeolite	976,544	1,018,561
Total	$11,026,428	$11,225,594

At March 31, 2021 and December 31, 2020, the Company had $739,435 and $755,978, respectively, of assets that were not yet placed in service and have not yet been depreciated.

	For the three months ended
Capital expenditures:	March 31, 2021	March 31, 2020
Antimony
United States	$-	$23,121
Mexico	4,872	26,765
Subtotal Antimony	4,872	49,886
Precious Metals	18,426	38,521
Zeolite	-	7,864
Total	$23,298	$96,271

13

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

13.  Business Segments, Continued:

Segment Operations for the three	Antimony	Antimony	Total	Precious	Bear River
months ended March 31, 2021	USAC	Mexico	Antimony	Metals	Zeolite	Totals
Total revenues	$657,107	$-	$657,107	$76,233	$519,947	$1,253,287
Depreciation and amortization	7,891	144,952	152,843	27,604	42,017	222,464
Income (loss) from operations	(218,669)	(238,568)	(457,237)	48,630	66,881	(341,726)
Other income (expense):	6,635	-	6,635	-	(397)	6,238
NET INCOME (LOSS)	$(212,034)	$(238,568)	$(450,602)	$48,630	$66,484	$(335,488)

Segment Operations for the three	Antimony	Antimony	Total	Precious	Bear River
months ended March 31, 2020	USAC	Mexico	Antimony	Metals	Zeolite	Totals
Total revenues	$1,121,425	$-	$1,121,425	$62,206	$559,360	$1,742,991
Depreciation and amortization	7,395	146,098	153,493	23,598	49,190	226,281
Income (loss) from operations	239,352	(719,066)	(479,714)	38,608	136,168	(304,938)
Other income (expense):	(2,915)	-	(2,915)	-	(1,029)	(3,944)
NET INCOME (LOSS)	$236,437	$(719,066)	$(482,629)	$38,608	$135,139	$(308,882)

14.  Note Payable-Small Business Administration Loan

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (the “CARES Act”) Act was signed into United States law.   

On April 20, 2020, the Company received a loan of $443,400 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 20, 2020 had a maturity date on April 19, 2022 and an interest rate of 1% per annum. It is anticipated that the loan will be forgiven under the provisions of the CARES Act because the Company used the funds for qualifying expenses. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. The amount of the PPP loan will be recognized as gain on forgiveness of the CARES Act loan in the period the Company receives formal notification of forgiveness. The application for forgiveness was submitted to the bank on January 24, 2021, and the bank submitted the application to the SBA on February 12, 2021. On April 26, 2021, the bank notified the Company that the amount had been paid in full by the SBA.

14

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

15.  Subsequent Events

The Company has been in contact with Midas Gold for over a decade regarding its potential interest in opening its Stibnite Mine in Idaho. On May 3, 2021, the Company signed a Collaboration Agreement with Perpetua Resources (“Perpetua”) (formerly Midas Gold) to study the feasibility of processing Perpetua’s concentrates at the Company’s Montana facilities. Perpetua is in the process of permitting an antimony and gold resource in Idaho.

15

ITEM 2.          

Management’s Discussion and Analysis of Results of Operations and Financial Condition

COVID-19 Coronavirus Pandemic Response and Impact

One of the principal recent challenges facing the Company in 2021 as a result of stimulus funding from Covid-19 has been the evaporation of available labor. This issue has seriously impacted both operations in Montana and at its zeolite operation in Idaho. The following measures are being taken in an attempt to obtain and retain laborers:

1.

The Company has raised the starting wage and as a result increased its labor costs for existing laborers.

2.

The Company has advertised on multiple job search platforms and is also advertising in two languages on conventional job search platforms as well as on multiple social media sites.

3.

The Company is investigating methods to obtain labor from Mexico.

4.

The Company is investigating hiring from alternative potential labor pools, including addiction recovery centers.

General

Certain matters discussed are forward-looking statements that involve risks and uncertainties, including the impact of antimony prices and production volatility, changing market conditions and the regulatory environment and other risks. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of this filing. We disclaim, however, any intent or obligation to update these forward-looking statements.

16

	Three Months	Three Months
	Ended	Ended
Antimony - Combined USA and Mexico	March 31, 2021	March 31, 2020
Lbs of Antimony Metal USA	181,969	166,908
Lbs of Antimony Metal Mexico:	-	128,545
Total Lbs of Antimony Metal Sold	181,969	295,453
Average Sales Price/Lb Metal	$3.61	$3.06
Net loss/Lb Metal	$(2.48)	$(1.63)
Gross antimony revenue - net of discount	657,107	902,746
Tri-sulfide revenue	-	218,679
Total revenue	$657,107	$1,121,425
Cost of sales - domestic	(543,322)	(533,289)
Cost of sales - Mexico	(26,318)	(684,061)
Operating expenses	(544,704)	(383,789)
Non-operating expenses	6,635	(2,915)
	(1,107,709)	(1,604,054)
Net loss - antimony	(450,602)	(482,629)
Depreciation,& amortization	152,843	153,493
EBITDA - antimony	$(297,759)	$(329,136)
Precious Metals
Ounces sold
Gold	7.28	15.00
Silver	3,354	5,048
Gross precious metals revenue	$76,233	$62,206
Production costs, royalties, and shipping costs	(27,604)	(23,598)
Net income - precious metals	48,629	38,608
Depreciation	27,604	23,598
EBITDA - precious metals	$76,233	$62,206
Zeolite
Tons sold	2,743	2,809
Average Sales Price/Ton	$189.55	$199.13
Net income (Loss)/Ton	$24.24	$48.11
Gross zeolite revenue	$519,947	$559,360
Cost of sales	(443,886)	(400,866)
Operating expenses	(9,179)	(22,326)
Non-operating expenses	(397)	(1,029)
Net income - zeolite	66,485	135,139
Depreciation	42,017	49,190
EBITDA - zeolite	$108,502	$184,329
Company-wide
Gross revenue	$1,253,287	$1,742,991
Production costs	(1,041,130)	(1,641,814)
Operating expenses	(553,883)	(406,115)
Non-operating expenses	6,238	(3,944)
Net income (loss)	(335,488)	(308,882)
Depreciation,& amortization	222,464	226,281
EBITDA	$(113,024)	$(82,601)

17

PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2.

Management’s Discussion and Analysis of Results of Operations and FinancialCondition, continued:

Company-Wide

For the first quarter of 2021, we recognized a net loss of $335,488 on sales of $1,253,287, after depreciation and amortization of $224,464. We reported a net loss of $308,882 in the first quarter of 2020 on sales of $1,742,991, after depreciation and amortization of $226,281.

For the three months ended March 31, 2021, EBITDA was a negative $113,024 compared to a negative $82,601 for the same period in 2020.

Net non-cash expense items totaled $309,190, for the three months ended March 31, 2021 and included $222,464 for depreciation and amortization, $28,125 for director compensation, $57,530 for the write-down of inventory and $1,071 for other items. Net non-cash expense items totaled $278,875 for the first three months of 2020 and included $226,281 for depreciation and amortization, $28,125 for director compensation, $22,475 for the write-down of and $1,994 for other items.

For the three months ended March 21, 2021, general and administrative expenses were $170,050 compared to $199,971 for the same period of 2020.

Antimony

For the three month period ended March 31, 2021, we sold 181,969 pounds of antimony compared to 295,453 pounds for the three month period ended March 31, 2020. The raw material received from our North American supplier increased by approximately 107,086 for the three month period ended March 31, 2021, compared to the same quarter for 2020. We had a decrease in raw material from Mexico of approximately 63,000 for the three month period ended March 31, 2021, compared to the same quarter for 2020.

The average sales price of antimony during the three month period ended March 31, 2021 was $3.61 per pound compared to $3.06 during the same period in 2020.

Precious Metals

The caustic leach of flotation concentrates from Los Juarez has been successful. The Company is delaying the processing of the ore from Los Juarez pending its survey and study of the property’s reserves and an analysis of its current flotation tailings. The impact of Covid-19 has forced a delay in the geological, geophysical, and geochemical study of the Los Juarez property but the Company plans to conduct the Los Juarez study as soon as practical given the current situation.

For the three month period ended March 31, 2021, income for precious metals from North American sources was $76,233 compared to $62,206 for the same periods of 2020.

18

Current and prior periods’ revenue from precious metals is as follows:

Precious Metal Sales Silver/Gold	For the three months ended March 31,
Montana	2021	2020
Ounces Gold Shipped (Au)	7.28	15.00
Ounces Silver Shipped (Ag)	3,354.00	5,048.00
Total Revenues	$76,233	$62,206

Bear River Zeolite (BRZ)

For the three month period ended March 31, 2021, BRZ sold 2,743 tons of zeolite compared to 2,809 tons in the same periods of 2020.

For the three month period ended March 31, 2021, BRZ realized net income of $66,485 after depreciation of $42,017 compared to a net income of $135,139 after depreciation of $49,190 for the same period of 2020.

A non-trivial portion of our zeolite sales have been generated by its use in swimming pools, and that activity is resuming now but was severely impacted by the pandemic. We expect resumption of normal sales in this sector this summer and in the future as the covid-19 restrictions are reduced. The Company has halted sales of low-volume product as its associated packaging and shipping costs did not justify them. It is concentrating on larger-volume sales and has received many orders recently from new clients. With the addition of improved management, the addition of an excellent sales person, and improvement in its crushing and sorting circuits, the Company anticipates substantial growth in zeolite sales.

BRZ realized an EBITDA for the three month period ended March 31, 2021 of $108,502 compared to $184,329 for the same periods in 2020.

Financial Position

Financial Condition and Liquidity	March 31, 2021	December 31, 2020
Current assets	$24,604,720	$1,808,161
Current liabilities	(3,030,427)	(4,477,543)
Net Working Capital	$21,574,293	$(2,669,382)

	For the Three Months Ended
	March 31, 2021	March 31, 2020
Cash provided (used) by operations	$(2,449,854)	$(36,265)
Cash provided by collection of note receivable
Cash provided (used) by investing:
Cash used for capital outlay	(23,298)	(96,271)
Cash provided (used) by financing:
Payments on notes payable to bank	(100,000)	-
Proceeds from notes payable to bank	-	2,488
Proceeds from common stock issued, net	23,342,180	62,500
Proceeds from exercise of warrants	1,763,619	-
Principal paid on long-term debt	(12,518)	(10,906)
Payments on advances from related party	(56,216)	-
Checks issued and payable	(86,685)	56,102
Net change in cash and restricted cash	$22,377,228	$(22,352)

19

Our net working capital increased by $24,243,675 from December 31, 2020 to March 31, 2021. Our cash and cash equivalents increased by $22,377,228 during the same period. We spent $23,298 for capital items, and our debt decreased by approximately $169,000 and our accrued liabilities decreased by approximately $1.9 million including $1,120,730 paid to eliminate our export tax assessment payable . During the quarter, we raised approximately $23.3 million from sale of shares of common stock and approximately $1.8 million for the exercise of warrants.

We have estimated commitments and improvements of less than $100,000 to finish building and installing the precious metals leach circuits. However, this funding will be implemented after its geological study of the Los Juarez property. The Company plans to conduct a proper study of the Los Juarez property and its tailings at its flotation plant and pending the results of these studies decide how to proceed regarding a drill program and/or mining of the property. The study may involve a partnership with a junior mining Company in order to assist US Antimony in the proper characterization of the deposit. Should the deposit be of great value, the Company will likely move the flotation plant closer to the mine. We believe that with our current cash balance, along with the future cash flow from operations and operating agreements, we have adequate liquid assets to meet these commitments and service our debt for the next twelve months.

At March 31, 2021, the Company’s consolidated financial statements show working capital of approximately $21.6 million and an accumulated deficit of approximately $33 million. With the exception of 2018, the Company has incurred losses for the past several years. The net income in 2018 was primarily due to non-recurring events which contributed approximately $2.5 million to net income. The continuing losses are principally a result of the Company’s antimony operations due to both depressed antimony prices and production costs incurred in Mexico. To improve conditions, the Company plans to continue searching for areas to reduce these production costs. Management expects improvement in cash flow in 2021 from the sale of antimony and zeolite.

In the first quarter of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants. These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, a geochemical, geological, and geophysical study of the Los Juarez property, an analysis and survey of the tailings at its Puerto Blanco floatation mill, additional managerial staff at USAC and BRZ headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana. With the funds raised, management believes the Company has sufficient funds to sustain its operations and meet its financial obligations during the 12 months following the date of issuance of these consolidated financial statements.

ITEM 3.

None

ITEM 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, as appropriate, to allow timely decisions regarding required disclosure. Our Interim President & Director conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of March 31, 2021. It was determined that there were material weaknesses affecting our disclosure controls and procedures and, as a result of those weaknesses, our disclosure controls and procedures were not effective as of March 31, 2021. These material weaknesses are as follows:

20

●

Inadequate design of internal control over the preparation of the financial statements and financial reporting processes;

●

Inadequate monitoring of internal controls over significant accounts and processes including controls associated with domestic and Mexican subsidiary operations and the period-end financial reporting process; and

●

The absence of proper segregation of duties within significant processes and ineffective controls over management oversight, including antifraud programs and controls.

We are aware of these material weaknesses and will develop procedures to ensure that independent review of material transactions is performed. The Interim President will develop internal control measures to mitigate the lack of inadequate documentation of controls and the monitoring of internal controls over significant accounts and processes including controls associated with the period-ending reporting processes, and to mitigate the segregation of duties within significant accounts and processes and the absence of controls over management oversight, including antifraud programs and controls.

We plan to consult with independent experts when complex transactions are entered into.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no significant changes made to internal controls over financial reporting for the quarter ended March 31, 2021.

PART II - OTHER INFORMATION

Item 1.                    LEGAL PROCEEDINGS

None

Item 2.                    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

Item 3.                    DEFAULTS UPON SENIOR SECURITIES

The registrant has no outstanding senior securities.

Item 4.                    MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503 (a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report.

Item 5.                    OTHER INFORMATION

None

Item 6.                    EXHIBITS AND REPORTS ON FORM 8-K

Certifications

Certifications Pursuant to the Sarbanes-Oxley Act

Reports on Form 8-K  None

21

SIGNATURES

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. Gustaven	Date: May 15, 2021
John C. Gustaven, Interim CEO

By: /s/ Russell C. Lawrence	Date: May 15, 2021
Russell C. Lawrence, Interim President & Director

22

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, John C. Gustaven, Interim Chief Executive Officer, certify that:

1.

I have reviewed this quarterly report on Form 10-Q 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 registrant as of, and for, the periods presented in this report;

4.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

I have disclosed, based on my most recent evaluation, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.

/s/ John C. Gustaven
Date:  May 15, 2021

John C. Gustaven

Interim CEO

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Russell C Lawrence, Interim President & Director, certify that:

1.

I have reviewed this quarterly report on Form 10-Q 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 registrant as of, and for, the periods presented in this report;

4.

I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))for the registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

I have disclosed, based on my most recent evaluation, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.

/s/ Russell C. Lawrence Date:   May 15, 2021

Russell C. Lawrence

Interim President & Director

EX-32.1

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. Gustaven, Interim 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-Q of the Company for the fiscal quarter ended March 31, 2021, 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.

/s/ John C. Gustaven
Date:  May 15, 2021

John C. Gustaven

Interim CEO

EX-32.2

EXHIBIT 32.2

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, Russell C. Lawrence, Interim President & Director 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-Q of the Company for the fiscal quarter ended March 31, 2021, 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.

/s/ Russell C. Lawrence Date:   May 15, 2021

Russell C. Lawrence

Interim President & Director

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 15, 2021
Cover [Abstract]
Entity Registrant Name	UNITED STATES ANTIMONY CORP
Entity Central Index Key	0000101538
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	MT
Entity File Number	001-08675
Entity Common Stock, Shares Outstanding		106,017,954
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

XML

Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 23,042,330	$ 665,102
Certificates of deposit	254,873	254,212
Accounts receivable	537,567	238,634
Inventories	717,750	650,213
Other current assets	52,200	0
Total current assets	24,604,720	1,808,161
Properties, plants and equipment, net	11,026,428	11,225,594
Restricted cash for reclamation bonds	57,275	57,275
IVA receivable and other assets	206,818	208,472
Total assets	35,895,241	13,299,502
Current liabilities:
Checks issued and payable	0	86,685
Accounts payable	1,294,514	1,876,874
Accrued liabilities	554,628	635,626
Payables to related party	6,294	227,432
Notes payable to bank	0	100,000
Export tax assessment payable	0	1,120,730
Hillgrove advances payable (Note 12)	1,134,221	378,074
Long-term debt, current portion	40,770	52,122
Total current liabilities	3,030,427	4,477,543
Long-term debt, net of current portion	33,138	34,304
Hillgrove advances payable (Note 12)	0	756,147
CARES Act note payable	443,400	443,400
Stock payable to directors for services	138,125	110,000
Asset retirement obligations and accrued reclamation costs	293,451	291,719
Total liabilities	3,938,541	6,113,113
Commitments and contingencies (Note 6 and 11)
Stockholders' equity:
Common stock, $0.01 par value, 150,000,000 shares authorized; 105,963,567 and 75,949,757 shares issued and outstanding, respectively	1,059,634	759,496
Additional paid-in capital	63,856,560	39,050,899
Accumulated deficit	(32,986,282)	(32,650,794)
Total stockholders' equity	31,956,700	7,186,389
Total liabilities and stockholders' equity	35,895,241	13,299,502
Series A
Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized	0	0
Series B
Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized	7,500	7,500
Series C
Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized	1,779	1,779
Series D
Stockholders' equity:
Preferred stock $0.01 par value, 10,000,000 shares authorized	$ 17,509	$ 17,509

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Stockholders' equity:
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	150,000,000	150,000,000
Common stock, issued shares	105,963,567	75,949,757
Common stock, outstanding shares	105,963,567	75,949,757
Series A
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Series B
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	750,000	750,000
Preferred stock, outstanding shares	750,000	750,000
Preferred stock liquidation preference	$ 945,000	$ 937,500
Series C
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	177,904	177,904
Preferred stock, outstanding shares	177,904	177,904
Preferred stock liquidation preference	$ 97,847	$ 97,847
Series D
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	1,751,005	1,751,005
Preferred stock, outstanding shares	1,751,005	1,751,005
Preferred stock liquidation preference	$ 5,084,770	$ 5,043,622

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Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues	$ 1,253,287	$ 1,742,991
Cost of revenues	1,041,130	1,641,814
Gross profit	212,157	101,177
OPERATING EXPENSES:
General and administrative	170,050	199,971
Salaries and benefits	76,659	94,969
Other operating expenses	184,037	26,217
Professional fees	123,137	84,958
Total operating expenses	553,883	406,115
Income (loss) from operations	(341,726)	(304,938)
OTHER INCOME (EXPENSE):
Interest income	8,493	804
Interest expense	(2,255)	(4,748)
Total other income (expense)	6,238	(3,944)
Net loss	$ (335,488)	$ (308,882)
Preferred dividends	$ (12,162)	$ (12,162)
Net loss available to common stockholders	$ (347,650)	$ (321,044)
Net loss per share of common stock:
Basic and diluted	$ (0.00)	$ (0.00)
Weighted average shares outstanding:
Basic	92,711,336	69,697,150
Diluted	$ 92,711,336	$ 69,697,150

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Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Preferred Stock	Common Stock	Additional Paid In Capital	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2019	2,678,909	69,661,436
Beginning balance, amount at Dec. 31, 2019	$ 26,788	$ 696,614	$ 37,107,730	$ (29,363,990)	$ 8,467,142
Common stock issued upon exercise of warrants, shares		250,000
Common stock issued upon exercise of warrants, amount		$ 2,500	60,000		62,500
Net loss				(308,882)	(308,882)
Ending balance, shares at Mar. 31, 2020	2,678,909	69,911,436
Ending balance, amount at Mar. 31, 2020	$ 26,788	$ 699,114	37,167,730	(29,672,872)	8,220,760
Beginning balance, shares at Dec. 31, 2020	2,678,909	75,949,757
Beginning balance, amount at Dec. 31, 2020	$ 26,788	$ 759,496	39,050,899	(32,650,794)	7,186,389
Issuance of common stock for cash, shares		26,290,000
Issuance of common stock for cash, amount		$ 262,900	24,734,100		24,997,000
Common stock issuance costs			(1,654,820)		(1,654,820)
Common stock issued upon exercise of warrants, shares		3,723,810
Common stock issued upon exercise of warrants, amount		$ 37,238	1,726,381		1,763,619
Net loss				(335,488)	(335,488)
Ending balance, shares at Mar. 31, 2021	2,678,909	105,963,567
Ending balance, amount at Mar. 31, 2021	$ 26,788	$ 1,059,634	$ 63,856,560	$ (32,986,282)	$ 31,956,700

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows From Operating Activities:
Net income (loss)	$ (335,488)	$ (308,882)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization	222,464	226,281
Accretion of asset retirement obligation	1,732	2,654
Common stock payable for directors fees	28,125	28,125
Write-down of inventory to net realizable value	57,530	22,475
Other non-cash items	(661)	(660)
Change in:
Accounts receivable, net	(298,933)	54,761
Inventories	(125,067)	(39,124)
IVA receivable and other assets	(50,546)	2,083
Accounts payable	(582,360)	(24,528)
Accrued liabilities	(80,998)	(38,147)
Export tax assessment payable	(1,120,730)	23,774
Payables to related party	(164,922)	14,923
Net cash (used) by operating activities	(2,449,854)	(36,265)
Cash Flows From Investing Activities:
Purchase of properties, plants and equipment	(23,298)	(96,271)
Net cash (used) by investing activities	(23,298)	(96,271)
Cash Flows From Financing Activities:
Change in checks issued and payable	(86,685)	56,102
Net borrowing from factor	0	6,347
Payments on advances from related party	(56,216)	(13,933)
Proceeds from issuance of common stock and warrants, net of issuance costs	23,342,180	0
Proceeds from exercise of warrants	1,763,619	0
Borrowing on notes payable to bank	0	2,488
Principal paid on notes payable to bank	(100,000)	0
Principal payments of long-term debt	(12,518)	(10,906)
Net cash provided by financing activities	24,850,380	40,098
Net increase (decrease) in cash and cash equivalents and restricted cash	22,377,228	(92,438)
Cash and cash equivalents and restricted cash at beginning of period	722,377	172,767
Cash and cash equivalents and restricted cash at end of period	23,099,605	80,329
NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for warrants	$ 0	$ 62,500

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1. Basis of Presentation

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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-Q. 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 March 31, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Going Concern Consideration

At March 31, 2021, the Company’s consolidated financial statements show working capital of approximately $21.6 million and an accumulated deficit of approximately $33 million. The Company has incurred losses for the past two years which are principally a result of the Company’s antimony operations due to both depressed antimony prices and production costs incurred in Mexico. To improve conditions, the Company continues searching for areas to reduce these production costs.

In the first quarter of 2021, the Company raised net proceeds of approximately $23.3 million from sale of shares of its common stock and approximately $1.8 million from the exercise of stock purchase warrants. These funds have been and will continue to be used for general corporate purposes, working capital, hiring of additional labor, leverage for reducing legacy contracts, a geochemical, geological, and geophysical study of the Los Juarez property, an analysis and survey of the tailings at its Puerto Blanco floatation mill, additional managerial staff at USAC and BRZ headquarters, a revised website including measures aimed at increased visibility for advertising, more labor at its Mexican smelter, repair and improved infrastructure at the Mexican smelter, potential securement of additional antimony mine reserves in Mexico, and improvement of furnaces in Montana. With the funds raised, management believes the Company has sufficient funds to sustain its operations and meet its financial obligations during the 12 months following the date of issuance of these consolidated financial statements.

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2. Developments in Accounting Pronouncements

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Developments in Accounting Pronouncements

Accounting Standards Updates Adopted

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The update contains a number of provisions intended to simplify the accounting for income taxes. The update was adopted as of January 1, 2021, and its adoption did not have a material impact on the Company’s consolidated financial statements.

Accounting Standards Updates to Become Effective in Future Periods

In August 2020, the FASB issued ASU No.2019-12 Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles for certain financial instruments with characteristics of liabilities and equity. The update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years and with early adoption permitted. Management is evaluating the impact of this update on the Company’s consolidated financial statements.

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3. Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2021

Net loss per share of common stock:

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.

At March 31, 2021 and 2020, the potentially dilutive common stock equivalents not included in the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:

	March 31, 2021		March 31, 2020
Warrants		2,471,089		452,041
Convertible preferred stock		1,751,005		1,751,005
Total possible dilution		4,222,094		2,203,046

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4. Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Products consist of the following:

● Antimony: includes antimony oxide, sodium antimonate, antimony trisulfide, and antimony metal

● Zeolite: includes coarse and fine zeolite crushed in various sizes

● Precious Metals: includes unrefined and refined gold and silver

Sales of products for the three month period ended March 31, 2021 and 2020, were as follows:

	Three Months Ended
	March 31,
	2021		2020
Antimony	$	657,107	$	1,121,425
Zeolite		519,947		559,360
Precious metals		76,233		62,206
	$	1,253,287	$	1,742,991

The following is sales information by geographic area based on the location of customers for the three month period ended March 31, 2021 and 2020:

	Three Months Ended
	March 31,
	2021		2020
United States	$	1,165,513	$	1,566,237
Canada		87,774		176,754
	$	1,253,287	$	1,742,991

Sales of products to significant customers were as follows for the three month period ended March 31, 2021 and 2020:

Sales to Three	For the Period Ended
Largest Customers	March 31, 2021			March 31, 2020
Zeo Inc.	$	152,317		$	-
GE Chaplin, Inc.		298,150			114,291
Nyacol Technologies		-			106,161
Mexichem Speciality Compounds		327,670			413,993
	$	778,137		$	634,445
% of Total Revenues		62.09	%		36.40	%

Accounts receivable from largest customers were as follows at March 31, 2021 and December 31, 2020:

Largest
Accounts Receivable	March 31, 2021			December 31, 2020
Mexichem Speciality Compounds	$	185,804		$	-
GE Chaplin, Inc.		102,408			-
Earth Innovations Inc.		-			68,055
	$	288,212		$	68,055
% of Total Receivables		53.61	%		28.52	%

Our trade accounts receivable balance related to contracts with customers was $537,567 at March 31, 2021 and $238,634 at December 31, 2020. Our products do not involve any warranty agreements and product returns are not typical.

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5. Inventories

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories at March 31, 2021 and December 31, 2020 consisted primarily of finished antimony products, antimony metal, antimony ore, and finished zeolite products that are stated at the lower of first-in, first-out 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. Inventories at March 31, 2021 and December 31, 2020 are as follows:

	March 31, 2021		December 31, 2020
Antimony Metal	$	25,238	$	268,100
Antimony Oxide		360,566		67,377
Antimony Ore		167,945		95,880
Total antimony		553,749		431,357
Zeolite		164,001		218,856
	$	717,750	$	650,213

Antimony oxide inventory consisted of finished product oxide held at the Company's plants in Montana and Mexico. Antimony concentrates and ore were held primarily at sites in Mexico and are essentially raw material. The Company's zeolite inventory consists of salable zeolite material.

At March 31, 2021 and December 31, 2020, the antimony inventory in Mexico was valued at estimated net realizable value.

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6. Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company pays various royalties on the sale of zeolite products. On a combined basis, royalties vary from 8%-13%. During the three month periods ended March 31, 2021 and 2020, the Company had royalty expense of $62,130 and $64,150, respectively. At March 31, 2021 and December 31, 2020, the Company had accrued royalties payable of $353,591 and $434,981, respectively, which is included in accrued liablities. The Company is currently in negotiations with certain royalty holders to modify the terms of the agreements.

In June of 2013, the Company entered into a lease, as lessor, to mine antimony ore from concessions located in the Wadley Mining district in Mexico. The lease called for a term of one year and required payments of $10,000, plus a tax of $1,700, per month. The lease was renewable each year with a 15 day notice to the lessor and agreement of terms. The lease renewal was scheduled for renewal in June 2020. In July 2020, the Company decided not to renew the lease due to the continuing low market price for antimony and to reduce Mexican antimony production while seeking other lower cost sources of antimony ore and concentrates. The Company wrote off $318,502 of assets at the Wadley mine during the year ended December 31, 2020.

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7. Notes Payable to Bank

3 Months Ended

Mar. 31, 2021

Notes Payable [Abstract]

Notes Payable to Bank

At March 31, 2021 and December 31, 2020, the Company had the following notes payable to bank:  

	2021		2020
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	$	-	$	99,999
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		-		1
Total notes payable to the bank	$	-	$	100,000

The notes are paid in full as of March 31, 2021 and the lien on the Certificate of Deposit has been released.

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8. Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

Long-Term debt at March 31, 2021 and December 31, 2020 is as follows:

	March 31,			December 31,
	2021			2020
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$	58,500		$	66,800
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.		15,408			17,480
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.		-			2,146
		73,908			86,426
Less current portion		(40,770	)		(52,122	)
Long-term portion	$	33,138		$	34,304

At March 31, 2021, principal payments on debt are due as follows:

12 Months Ending March 31,	Principal Payment
2022		40,770
2023		33,138
	$	73,908

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9. Related Party Transactions

3 Months Ended

Mar. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

The Company’s previous President and Chairman, John Lawrence, rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that Mr. Lawrence owned. The amount due to Mr. Lawrence’s estate as of March 31, 2021 and December 31, 2020 was $6,094 and $171,017, respectively. During the three months ended March 31, 2021, the Company paid $164,922 to John Lawrence’s estate as reimbursement for these advances.

During 2019, Mr. Lawrence advanced funds to the Company that had a balance at December 31, 2020 of $56,216. During the three month period ended March 31, 2021, the Company paid First Security Bank on behalf of Mr. Lawrence $56,216. The balance of the advances due to Mr. Lawrence at March 31, 2021 is $0.

John C. Gustaven, Interim Chief Executive Officer of the Company, has an advance due from the Company of $200 at December 31, 2020. During the three month period ended March 31, 2021, the Company did not make any payments to Mr. Gustaven on these advances.

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10. Stockholder's Equity

3 Months Ended

Mar. 31, 2021

Stockholders' equity:

Stockholder's Equity

During the three month period ended March 31, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the three month period ended March 31, 2021 and March 31, 2020, the Company accrued $28,125 and $28,125, respectively, in directors’ fees payable that will be paid in common stock.

During the three month period ended March 31, 2021, the Company issued 3,723,810 shares of common stock and received $1,763,619 in cash from the exercise of warrants. During the three month period ended March 31, 2020, warrants for purchase of 250,000 shares of the Company’s common stock for $0.25 per share were exercised by the Company’s previous President and Chairman, John Lawrence. The warrants were exercised in exchange for a reduction of $62,500 in an amount payable to Mr. Lawrence.

Warrants

Transactions in common stock purchase warrants for the three month period ended March 31, 2021 and the year ended December 31, 2020 are as follows:

	Number of Warrants			Exercise Prices
Balance December 31, 2019		702,041		$	0.25 - $0.65
Issued		5,742,858		$	0.46
Exercised		(250,000	)	$	0.25
Balance December 31, 2020		6,194,899		$	0.46 - $0.65
Issued		-
Exercised		(3,723,810	)	$	0.46 - $0.65
Balance March 31, 2021		2,471,089		$	0.46 - $0.65

These warrants expire as follows:

Shares		Exercise Price		Expiration  Date
	185,374	$	0.65		2022
	2,285,715	$	0.46		2025
	2,471,089

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11. Income and Other Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income and Other Taxes

Mexican Tax Assessment

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 was approximately $666,400 in U.S. Dollars (“USD”) as of December 31, 2016. SAT’s assessment was based on the disallowance of specific costs that the Company deducted on the 2013 USAMSA income tax return. The Company engaged accountants and tax attorneys in Mexico to defend its position. The assessment was settled in 2018 with no assessment against the Company.

In early 2019, the Company was notified that SAT re-opened its audit of USAMSA’s 2013 income tax return and, in November 2019, SAT assessed the Company $16.3 million pesos, which was approximately $821,000 USD as of March 31, 2021. Management reviewed the 2019 assessment notice from SAT and, similar to the earlier assessment, believes the findings have no merit. The Company engaged a tax attorney in Mexico to defend its position. An appeal was filed by the Company in November 2019 suspending SAT from taking immediate action regarding the assessment. The Company posted a guarantee of the amount in March 2020 as is required under the appeal process. In August 2020, the Company filed a lawsuit against SAT for resolution of the process and, in December 2020, filed closing arguments. Management expects the appeal process to continue through 2021.

At March 31, 2021 and December 31, 2020, management assessed the possible outcomes for this tax audit and believes, based on discussions with its tax attorney in Mexico, that the most likely outcome will be that the Company will be successful in its appeal resulting in no tax due. Management determined that no amount should be accrued at March 31, 2021 and December 31, 2020 relating to this potential tax liability. There can be no assurance that the Company’s ultimate liability, if any, will not have a material adverse effect on the Company’s results of operations or financial position. If an issue addressed during the SAT audit is resolved in a manner inconsistent with management expectations, the Company will adjust its current net operating loss carryforward, or accrue penalties, interest, and tax associated with the assessment.

Other Taxes

In 2016, USAMSA imported coal from the United States to its smelter in Mexico to process Australian concentrates associated with the Hillgrove agreement (Note 12).  At that time, the Company applied for and was granted a Maquiladora (IMMEX), in accordance with a Manufacturing and Export Services Industry program offered by the Mexican government to attract and promote foreign investment in Mexico.  With the IMMEX, all imported goods to Mexico that are also exported in altered form are exempt from the requirement of paying the 16% tax (IVA).  The Company did not pay IVA on any of the imported coal used to process the Australian concentrates.   In 2020, the Company was informed by the SAT that it owed the 16% IVA money for all the coal imported for the processing of the Australian concentrates.  Additionally, there were penalties and fees that SAT added to the total amount.  In late 2020, the Company filed a motion before the Taxpayer's Defense Agency (PRODECON), but the motion was denied.  To avoid exorbitant penalties, the Company elected to pay the assessed amount in early 2021. For the year ended December 31, 2020, the Company recognized an export tax expense of $1,120,730 and accrued a liability for this assessment. The assessment was settled with a payment of $1,120,730 during the three month period ended March 31, 2021.

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12. Hillgrove Advances Payable

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Hillgrove Advances Payable

On November 7, 2014, the Company entered into an advance and concentrate processing agreement with Hillgrove Mines Pty Ltd of Australia (Hillgrove) in which the Company was advanced funds from Hillgrove to build facilities to process Hillgrove antimony concentrate. The Company has not processed Hillgrove concentrate for more than two years. The agreement requires the Company to pay the advance balance after Hillgrove issues a stop notice. Payments would begin 90 days after the stop notice issue date and be made in six equal and quarterly installments. Hillgrove was acquired by Red River Resources LTD (“Red River”) during 2019. The total balance of the advance liability due was $1,134,221 at March 31, 2021 and December 31, 2020. After March 31, 2021, the Company successfully negotiated a settlement with Red River for an agreed upon amount of $1,020,799. This balance was paid on April 8, 2021.

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13. Business Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Business Segments

The Company is currently organized and managed by four segments, which represent our operating units: United States antimony operations, Mexican antimony operations, precious metals recovery and United States zeolite operations.

The Puerto Blanco mill and the Madero smelter at the Company’s Mexico operation bring antimony up to an intermediate or finished stage, which may be sold directly or shipped to the United States operation for finishing at the Thompson Falls, Montana plant. The Puerto Blanco mill in Mexico is the site of our crushing and flotation plant, and a cyanide leach plant which will recover precious metals after the ore goes through the crushing and flotation cycles. A precious metals recovery plant is operated in conjunction with the antimony processing plant at Thompson Falls, Montana, where a 99% precious metals mix will be produced. 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, although the Company does have a sales operation in Canada.

Segment disclosure regarding sales to major customers is located in Note 4.

Properties, plants and equipment, net:	March 31, 2021		December 31, 2020
Antimony
United States	$	1,629,846	$	1,637,738
Mexico		7,495,331		7,635,410
Subtotal Antimony		9,125,177		9,273,148
Precious metals		924,707		933,885
Zeolite		976,544		1,018,561
Total	$	11,026,428	$	11,225,594

At March 31, 2021 and December 31, 2020, the Company had $739,435 and $755,978, respectively, of assets that were not yet placed in service and have not yet been depreciated.

	For the three months ended
Capital expenditures:	March 31, 2021		March 31, 2020
Antimony
United States	$	-	$	23,121
Mexico		4,872		26,765
Subtotal Antimony		4,872		49,886
Precious Metals		18,426		38,521
Zeolite		-		7,864
Total	$	23,298	$	96,271

Segment Operations for the three	Antimony			Antimony			Total			Precious		Bear River
months ended March 31, 2021	USAC			Mexico			Antimony			Metals		Zeolite			Totals
Total revenues	$	657,107		$	-		$	657,107		$	76,233	$	519,947		$	1,253,287
Depreciation and amortization		7,891			144,952			152,843			27,604		42,017			222,464
Income (loss) from operations		(218,669	)		(238,568	)		(457,237	)		48,630		66,881			(341,726	)
Other income (expense):		6,635			-			6,635			-		(397	)		6,238
NET INCOME (LOSS)	$	(212,034	)	$	(238,568	)	$	(450,602	)	$	48,630	$	66,484		$	(335,488	)

Segment Operations for the three	Antimony			Antimony			Total			Precious		Bear River
months ended March 31, 2020	USAC			Mexico			Antimony			Metals		Zeolite			Totals
Total revenues	$	1,121,425		$	-		$	1,121,425		$	62,206	$	559,360		$	1,742,991
Depreciation and amortization		7,395			146,098			153,493			23,598		49,190			226,281
Income (loss) from operations		239,352			(719,066	)		(479,714	)		38,608		136,168			(304,938	)
Other income (expense):		(2,915	)		-			(2,915	)		-		(1,029	)		(3,944	)
NET INCOME (LOSS)	$	236,437		$	(719,066	)	$	(482,629	)	$	38,608	$	135,139		$	(308,882	)

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14. Note Payable-Small Business Administration Loans and Grant

3 Months Ended

Mar. 31, 2021

Loans Payable [Abstract]

Note Payable-Small Business Administration Loans and Grant

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (the “CARES Act”) Act was signed into United States law.   

On April 20, 2020, the Company received a loan of $443,400 pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The loan, which was in the form of a Note dated April 20, 2020 had a maturity date on April 19, 2022 and an interest rate of 1% per annum. It is anticipated that the loan will be forgiven under the provisions of the CARES Act because the Company used the funds for qualifying expenses. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. The amount of the PPP loan will be recognized as gain on forgiveness of the CARES Act loan in the period the Company receives formal notification of forgiveness. The application for forgiveness was submitted to the bank on January 24, 2021, and the bank submitted the application to the SBA on February 12, 2021. On April 26, 2021, the bank notified the Company that the amount had been paid in full by the SBA.

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15. Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

The Company has been in contact with Midas Gold for over a decade regarding its potential interest in opening its Stibnite Mine in Idaho. On May 3, 2021, the Company signed a Collaboration Agreement with Perpetua Resources (“Perpetua”) (formerly Midas Gold) to study the feasibility of processing Perpetua’s concentrates at the Company’s Montana facilities. Perpetua is in the process of permitting an antimony and gold resource in Idaho.

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3. Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Net loss per share of common stock:

Antidilutive securities excluded from computation of earnings per share

	March 31, 2021		March 31, 2020
Warrants		2,471,089		452,041
Convertible preferred stock		1,751,005		1,751,005
Total possible dilution		4,222,094		2,203,046

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4. Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

	Three Months Ended
	March 31,
	2021		2020
Antimony	$	657,107	$	1,121,425
Zeolite		519,947		559,360
Precious metals		76,233		62,206
	$	1,253,287	$	1,742,991

Revenue by geographic area

	Three Months Ended
	March 31,
	2021		2020
United States	$	1,165,513	$	1,566,237
Canada		87,774		176,754
	$	1,253,287	$	1,742,991

Sales of products to significant customers

Sales to Three	For the Period Ended
Largest Customers	March 31, 2021			March 31, 2020
Zeo Inc.	$	152,317		$	-
GE Chaplin, Inc.		298,150			114,291
Nyacol Technologies		-			106,161
Mexichem Speciality Compounds		327,670			413,993
	$	778,137		$	634,445
% of Total Revenues		62.09	%		36.40	%

Accounts receivable from largest customers

Largest
Accounts Receivable	March 31, 2021			December 31, 2020
Mexichem Speciality Compounds	$	185,804		$	-
GE Chaplin, Inc.		102,408			-
Earth Innovations Inc.		-			68,055
	$	288,212		$	68,055
% of Total Receivables		53.61	%		28.52	%

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5. Inventories (Tables)

3 Months Ended

Mar. 31, 2021

Inventory Disclosure [Abstract]

Inventories

	March 31, 2021		December 31, 2020
Antimony Metal	$	25,238	$	268,100
Antimony Oxide		360,566		67,377
Antimony Ore		167,945		95,880
Total antimony		553,749		431,357
Zeolite		164,001		218,856
	$	717,750	$	650,213

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7. Notes Payable to Bank (Tables)

3 Months Ended

Mar. 31, 2021

Notes Payable [Abstract]

Notes payable to bank

	2021		2020
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	$	-	$	99,999
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		-		1
Total notes payable to the bank	$	-	$	100,000

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8. Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Long-term debt

Long-Term debt at March 31, 2021 and December 31, 2020 is as follows:	March 31,			December 31,
	2021			2020
Note payable to Zeo Inc., non interest bearing,
payable in 11 quarterly installments of $8,300 with a final payment of $8,700;
maturing December 2022; uncollateralized.	$	58,500		$	66,800
Note payable to Cat Financial Services, bearing interest at 6%;
payable in monthly installments of $778; maturing
December 2022; collateralized by equipment.		15,408			17,480
Note payable to Phyllis Rice, bearing interest
at 1%; payable in monthly installments of $2,000; originally maturing
March 2015; collateralized by equipment.		-			2,146
		73,908			86,426
Less current portion		(40,770	)		(52,122	)
Long-term portion	$	33,138		$	34,304

Principal payments on debt

12 Months Ending March 31,	Principal Payment
2022		40,770
2023		33,138
	$	73,908

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10. Stockholder's Equity (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' equity:

Common stock warrant activity

	Number of Warrants			Exercise Prices
Balance December 31, 2019		702,041		$	0.25 - $0.65
Issued		5,742,858		$	0.46
Exercised		(250,000	)	$	0.25
Balance December 31, 2020		6,194,899		$	0.46 - $0.65
Issued		-
Exercised		(3,723,810	)	$	0.46 - $0.65
Balance March 31, 2021		2,471,089		$	0.46 - $0.65

Warrants outstanding

Shares		Exercise Price		Expiration  Date
	185,374	$	0.65		2022
	2,285,715	$	0.46		2025
	2,471,089

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13. Business Segments (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment information

Properties, plants and equipment, net:	March 31, 2021		December 31, 2020
Antimony
United States	$	1,629,846	$	1,637,738
Mexico		7,495,331		7,635,410
Subtotal Antimony		9,125,177		9,273,148
Precious metals		924,707		933,885
Zeolite		976,544		1,018,561

	For the three months ended
Capital expenditures:	March 31, 2021		March 31, 2020
Antimony
United States	$	-	$	23,121
Mexico		4,872		26,765
Subtotal Antimony		4,872		49,886
Precious Metals		18,426		38,521
Zeolite		-		7,864
Total	$	23,298	$	96,271

Segment Operations for the three	Antimony			Antimony			Total			Precious		Bear River
months ended March 31, 2021	USAC			Mexico			Antimony			Metals		Zeolite			Totals
Total revenues	$	657,107		$	-		$	657,107		$	76,233	$	519,947		$	1,253,287
Depreciation and amortization		7,891			144,952			152,843			27,604		42,017			222,464
Income (loss) from operations		(218,669	)		(238,568	)		(457,237	)		48,630		66,881			(341,726	)
Other income (expense):		6,635			-			6,635			-		(397	)		6,238
NET INCOME (LOSS)	$	(212,034	)	$	(238,568	)	$	(450,602	)	$	48,630	$	66,484		$	(335,488	)

Segment Operations for the three	Antimony			Antimony			Total			Precious		Bear River
months ended March 31, 2020	USAC			Mexico			Antimony			Metals		Zeolite			Totals
Total revenues	$	1,121,425		$	-		$	1,121,425		$	62,206	$	559,360		$	1,742,991
Depreciation and amortization		7,395			146,098			153,493			23,598		49,190			226,281
Income (loss) from operations		239,352			(719,066	)		(479,714	)		38,608		136,168			(304,938	)
Other income (expense):		(2,915	)		-			(2,915	)		-		(1,029	)		(3,944	)
NET INCOME (LOSS)	$	236,437		$	(719,066	)	$	(482,629	)	$	38,608	$	135,139		$	(308,882	)

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1. Basis of Presentation (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital deficit	$ (21,600,000)
Accumulated deficit	(32,986,282)		$ (32,650,794)
Issuance of common stock for cash, amount	24,997,000
Common stock issued upon exercise of warrants, amount	$ 1,763,619	$ 62,500

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3. Income (Loss) Per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total possible dilution	4,222,094	2,203,046
Warrants
Total possible dilution	2,471,089	452,041
Convertible Preferred Stock
Total possible dilution	1,751,005	1,751,005

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4. Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues	$ 1,253,287	$ 1,742,991
Antimony
Revenues	657,107	1,121,425
Zeolite
Revenues	519,947	559,360
Precious Metals
Revenues	$ 76,233	$ 62,206

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4. Revenue Recognition (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues	$ 1,253,287	$ 1,742,991
United States
Revenues	1,165,513	1,566,237
Canada
Revenues	$ 87,774	$ 176,754

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4. Revenue Recognition (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Sales to three major customers	$ 778,137	$ 634,445
Total percentage of revenue	62.09%	36.40%
Zeo, Inc.
Sales to three major customers	$ 152,317	$ 0
GE Chaplin, Inc.
Sales to three major customers	298,150	114,291
Nyacol Technologies
Sales to three major customers	0	106,161
Mexichem Speciality Compounds Inc.
Sales to three major customers	$ 327,670	$ 413,993

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4. Revenue Recognition (Details 3) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Accounts receivable of three largest customers	$ 288,212	$ 68,055
Total percentage of accounts receivable	53.61%	28.52%
Mexichem Speciality Compounds Inc.
Accounts receivable of three largest customers	$ 185,804	$ 0
GE Chaplin, Inc.
Accounts receivable of three largest customers	102,408	0
Earth Innovations Inc.
Accounts receivable of three largest customers	$ 0	$ 68,055

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4. Revenue Recognition (Details Narrative) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Trade accounts receivable balance related to contracts with customers	$ 537,567	$ 238,634

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5. Inventories (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Inventories	$ 717,750	$ 650,213
Antimony Metal
Inventories	25,238	268,100
Antimony Oxide
Inventories	360,566	67,377
Antimony Ore
Inventories	167,945	95,880
Antimony
Inventories	553,749	431,357
Zeolite
Inventories	$ 164,001	$ 218,856

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6. Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Royalty expense	$ 62,130	$ 64,150
Accrued royalties payable	$ 353,591		$ 434,981

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7. Notes Payable to Bank (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Note payable to bank	$ 0	$ 100,000
Promissory Note Payable 1
Note payable to bank	0	99,999
Promissory Note Payable 2
Note payable to bank	$ 0	$ 1

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8. Debt (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Total debt	$ 73,908	$ 86,426
Less current portion	(40,770)	(52,122)
Long-term portion	33,138	34,304
Zeo Inc.
Total debt	58,500	66,800
Cat Financial Services
Total debt	15,408	17,480
Phyllis Rice
Total debt	$ 0	$ 2,146

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8. Debt (Details 1) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2022	$ 40,770
2023	33,138
Total	$ 73,908	$ 86,426

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9. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Due to related parties	$ 6,294	$ 227,432
Mr. Lawrence
Due to related parties	6,094	$ 171,017
Reibursment for equipment	$ 164,922

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10. Stockholder's Equity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of warrants, beginning	6,194,899	702,041
Issued	0	5,742,858
Exercised	(3,723,810)	(250,000)
Number of warrants, ending	2,471,089	6,194,899
Warrants exercise price, beginning
Issued	0.00	0.46
Exercised		0.25
Warrants exercise price, ending
Minimum
Warrants exercise price, beginning	0.46	0.25
Issued
Exercised	0.46
Warrants exercise price, ending	0.46	0.46
Maximum
Warrants exercise price, beginning	0.65	0.65
Issued
Exercised	0.65
Warrants exercise price, ending	$ 0.65	$ 0.65

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10. Stockholder's Equity (Details 1) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares	2,471,089	6,194,899	702,041
Exercise price
Warrant 1
Shares	185,374
Expiration date	Dec. 31, 2022
Warrant 2
Shares	2,285,715
Expiration date	Dec. 31, 2025

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12. Hillgrove Advances Payable (Details Narrative) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Notes to Financial Statements
Hillgrove advances payable, current	$ 1,134,221	$ 378,074
Hillgrove advances payable, long-term	$ 0	$ 756,147

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13. Business Segments (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Properties, plants and equipment, net	$ 11,026,428	$ 11,225,594
United States Antimony
Properties, plants and equipment, net	1,629,846	1,637,738
Mexico Antimony
Properties, plants and equipment, net	7,495,331	7,635,410
Subtotal Antimony
Properties, plants and equipment, net	9,125,177	9,273,148
Precious Metals
Properties, plants and equipment, net	924,707	933,885
Zeolite
Properties, plants and equipment, net	$ 976,544	$ 1,018,561

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13. Business Segments (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Capital expenditures	$ 23,298	$ 96,271
United States Antimony
Capital expenditures	0	23,121
Mexico Antimony
Capital expenditures	4,872	26,765
Subtotal Antimony
Capital expenditures	4,872	49,886
Precious Metals
Capital expenditures	18,426	38,521
Zeolite
Capital expenditures	$ 0	$ 7,864

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13. Business Segments (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total revenues	$ 1,253,287	$ 1,742,991
Depreciation and amortization	222,464	226,281
Income (loss) from operations	(341,726)	(304,938)
Other income (expense)	6,238	(3,944)
Net income (loss)	(335,488)	(308,882)
United States Antimony
Total revenues	657,107	1,121,425
Depreciation and amortization	7,891	7,395
Income (loss) from operations	(218,669)	239,352
Other income (expense)	6,635	(2,915)
Net income (loss)	(212,034)	236,437
Mexico Antimony
Total revenues	0	0
Depreciation and amortization	144,952	146,098
Income (loss) from operations	(238,568)	(719,066)
Other income (expense)	0	0
Net income (loss)	(238,568)	(719,066)
Subtotal Antimony
Total revenues	657,107	1,121,425
Depreciation and amortization	152,843	153,493
Income (loss) from operations	(457,237)	(479,714)
Other income (expense)	6,635	(2,915)
Net income (loss)	(450,602)	(482,629)
Precious Metals
Total revenues	76,233	62,206
Depreciation and amortization	27,604	23,598
Income (loss) from operations	48,630	38,608
Other income (expense)	0	0
Net income (loss)	48,630	38,608
Zeolite
Total revenues	519,947	559,360
Depreciation and amortization	42,017	49,190
Income (loss) from operations	66,881	136,168
Other income (expense)	(397)	(1,029)
Net income (loss)	$ 66,484	$ 135,139