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LEASES | 12 Months Ended
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Dec. 31, 2024
LEASES |
LEASE | NOTE 7 – LEASES In September 2024, the Company leased a metals concentration facility located in Philipsburg, Montana, which was accounted for as an operating lease (also called “Philipsburg Lease”). The Philipsburg Lease has a term of 18 months with fixed cash payments in advance in the first six months of the lease of $10,000 per month, or $60,000 in total, and fixed cash payments in advance in the last twelve months of the lease of $95,000 per month, or $1.14 million in total, which consists of a fixed monthly fee of $45,000 and a minimum milling fee of $50,000 per month. An additional payment of $50 per ton is due each month in the last twelve months of the lease for all milling in excess of 1,000 tons per month. The Company has not included any milling fee payments above the minimum in its calculation of the lease liability as it is not deemed probable at this time. $10,000 was paid upon signing the lease, which is being accounted for as an initial direct cost ("IDC"). The Company is amortizing the undiscounted fixed lease cost and the IDC on a straight-line basis over the term of the lease. The Company recorded the present value of the fixed lease cost over the lease term as an operating lease liability and Right of Use ("ROU") asset. The Company used its incremental borrowing rate of 3.49% as of the date of initial possession of the leased asset when determining the present value of future payments of this operating lease as the rate implicit in the lease was not readily determinable. The lease includes provisions for the Company to use the existing mill building and all contents related to its use and to process owned and non-owned ore containing antimony and other minerals. The lease does not include any transfer of ownership of the facility at the end of the lease, nor any option to extend the lease or purchase the facility, nor any residual value guarantees. The Company can terminate the lease without cause with thirty days’ notice and must provide the facility to the lessor at the end of the lease in the same condition as it was received. The lease liability related to this operating lease, which represents the present value of the lease payments, was $787,477 at inception and $755,569 and $nil at December 31, 2024 and December 31, 2023, respectively. The ROU asset, which includes the unamortized portions of the IDC and is adjusted for any accrued or prepaid lease, was $565,289 and $nil at December 31, 2024 and December 31, 2023, respectively. During the years ended December 31, 2024 and 2023, the Company recorded $235,280 and $nil, respectively, of lease expense related to this lease and IDC in "Cost of Revenues" in the Consolidated Statements of Operations. IDC paid upon signing this lease was $10,000 and $nil and lease payments were $45,000 and $nil during the years ended December 31, 2024 and 2023, respectively, which were included in operating cash flows. The following table summarizes expense and cash payments for operating leases during the periods noted:
|  | For the years ended |
|  | December 31, 2024 |  |  | December 31, 2023 |
Operating lease expense |  | $ | 235,280 |  |  | $ | - |
Cash paid for operating lease liability |  | $ | 45,000 |  |  | $ | - |
Cash paid for initial direct cost |  | $ | 10,000 |  |  | $ | - |
The following table contains the remaining lease term and discount rate as of the end of the period:
|  | December 31, 2024 |
Remaining lease term - operating lease |  | 14.5 months |
Discount rate - operating lease |  |  | 3.49 | %
The table below is a maturity analysis of the future minimum lease payments as of December 31, 2024.
Twelve months ending December 31, |  |  |
2025 |  | $ | 1,012,500 |
2026 |  |  | 142,500 |
Total undiscounted future minimum lease payments |  |  | 1,155,000 |
Less: discount on lease liability |  |  | (399,431 | )
Total discounted lease liability at December 31, 2024 |  |  | 755,569 |
Less: current portion of operating lease liability |  |  | (626,562 | )
Noncurrent operating lease liability |  | $ | 129,007 |
See Note 14 of the Notes to Consolidated Financial Statements in this Annual Report for further details on the Philipsburg Lease.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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