Going Concern	9 Months Ended
Sep. 30, 2025
Going Concern
Going Concern	4. Going Concern In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern, ("ASC 205-40"), the Company evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date on which this Quarterly Report on Form 10-Q is filed. The accompanying interim financial statements have been prepared assuming that the Company will continue as a going concern. Although the Company made some improvement in 2025, the Company’s financial position and operating results, along with the Company’s inability to achieve its production estimates through the third quarter of 2025, raise substantial doubt about the Company’s ability to continue as a going concern, as reflected by the year-to-date net losses of $24.5 million and the cash used in operations of $2.5 million. The interim financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. To improve its cash position, during the nine months ended September 30, 2025, the Company raised approximately $8.6 million through its ATM Program, after deducting the agent’s commissions and other expenses. The Company has raised gross proceeds of approximately $2.5 million through a registered direct offering in January. In September 2025, the Company closed on a second registered direct offering of $11.4 million for the sale of 25,315,954 shares of the Company’s common stock at a price of $0.45 per share. The Company issued 14,204,846 of these shares, for the fair value of approximately $6.4 million, to fully pay off the term loan received in June 2025 as a non-cash equity settlement, as further described in Note 14. In February 2025, the Company sold its interest in Green Light Metals for $0.9 million, and on May 7, 2025, the Company received the previously disclosed tax refund of 76 million pesos from the overpayment of Mexico taxes by DDGM in 2023, plus an inflation adjustment, for a total of 79.6 million pesos (approximately $4.0 million). In connection with the loan agreement described in Note 14, the Company has issued a common stock purchase warrant to an affiliate of one of the private investors for the purchase of up to 1,500,000 shares of the Company’s common stock at an exercise price per share of $0.65, the aggregate exercise proceeds of which may provide additional funds for the Company. For the nine months ended September 30, 2025, the Company has raised a net total of $27.2 million through these efforts. However, there can be no assurances that the mine revenue will be sufficient to generate profits and positive cash flows from operations in the future, and the Company may be compelled to place the mine on “care and maintenance” status and cease operations if additional sources of capital is required and not available at such time.

Going Concern

9 Months Ended

Sep. 30, 2025

4. Going Concern

In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern, ("ASC 205-40"), the Company evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date on which this Quarterly Report on Form 10-Q is filed. The accompanying interim financial statements have been prepared assuming that the Company will continue as a going concern. Although the Company made some improvement in 2025, the Company’s financial position and operating results, along with the Company’s inability to achieve its production estimates through the third quarter of 2025, raise substantial doubt about the Company’s ability to continue as a going concern, as reflected by the year-to-date net losses of $24.5 million and the cash used in operations of $2.5 million. The interim financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

To improve its cash position, during the nine months ended September 30, 2025, the Company raised approximately $8.6 million through its ATM Program, after deducting the agent’s commissions and other expenses. The Company has raised gross proceeds of approximately $2.5 million through a registered direct offering in January. In September 2025, the Company closed on a second registered direct offering of $11.4 million for the sale of 25,315,954 shares of the Company’s common stock at a price of $0.45 per share. The Company issued 14,204,846 of these shares, for the fair value of approximately $6.4 million, to fully pay off the term loan received in June 2025 as a non-cash equity settlement, as further described in Note 14. In February 2025, the Company sold its interest in Green Light Metals for $0.9 million, and on May 7, 2025, the Company received the previously disclosed tax refund of 76 million pesos from the overpayment of Mexico taxes by DDGM in 2023, plus an inflation adjustment, for a total of 79.6 million pesos (approximately $4.0 million). In connection with the loan agreement described in Note 14, the Company has issued a common stock purchase warrant to an affiliate of one of the private investors for the purchase of up to 1,500,000 shares of the Company’s common stock at an exercise price per share of $0.65, the aggregate exercise proceeds of which may provide additional funds for the Company.

For the nine months ended September 30, 2025, the Company has raised a net total of $27.2 million through these efforts. However, there can be no assurances that the mine revenue will be sufficient to generate profits and positive cash flows from operations in the future, and the Company may be compelled to place the mine on “care and maintenance” status and cease operations if additional sources of capital is required and not available at such time.