0001104659-26-061193
SEC filingRevenue decreased 3% YoY with a net loss of $11.3M, driven by higher costs and operating expenses.
For the three months ended March 31, 2026, the Company reported total revenues of $6.78 million, a 3% decrease from $7.00 million in the prior-year period. Gross profit fell 53% to $1.11 million, with gross margin contracting from 33.9% to 16.4%. The decline was driven by higher input costs and lower volumes in both segments. Operating expenses surged to $8.63 million from $2.01 million, primarily due to $4.8 million in share-based compensation and an unrealized loss of $4.1 million on equity securities. Consequently, the Company reported an operating loss of $7.52 million versus income of $0.36 million a year ago. Net loss totaled $11.29 million compared to net income of $0.55 million in the prior period.
Antimony Segment: Revenue decreased 6% year-over-year to $5.55 million, as a 23% decline in pounds sold (278,797 vs. 362,647) was partially offset by a 22% increase in average selling price to $19.92 per pound. Gross profit fell 58% to $1.02 million, with gross profit per pound dropping 45% to $3.65. The margin compression was driven by a 69% increase in average cost per pound to $16.28, reflecting the recognition of higher-cost ore inventory through cost of sales. Precious metals revenue (gold and silver) totaled $213,213, compared to $(20,539) in the prior year.
Zeolite Segment: Revenue declined 7% to $1.02 million as average selling price per ton fell 4% to $276 and tons sold slipped 3% to 3,681. Gross profit swung to a loss of $(100,096) from a gain of $179,096 a year earlier, driven by a 26% rise in average cost per ton to $303 and higher freight costs.
Management expects to fund cash requirements from existing cash ($3.2 million), debt securities ($20.5 million), operations, and capital raises. The Company is executing a vertical integration strategy, highlighted by the January 2026 acquisition of a flotation facility in Radersburg, Montana for $4.8 million, and the purchase of 36 mining claims in Alaska for $1.3 million. A $27.0 million U.S. Department of War grant was awarded, with $12.8 million in initial milestones approved. The Company also has no borrowings on a $19.0 million margin credit line. Capital expenditures of $12.6 million included the Radersburg mill and Thompson Falls expansion. Future government funding applications total $274 million, though no assurance is provided. The Company remains focused on increasing production, reducing costs, and growing revenue profitably, with liquidity viewed as sufficient for the next 12 months.
Net cash used in operating activities was $(12.06M) in Q1 2026, a dramatic deterioration from $(1.73M) in Q1 2025. The primary driver was a net loss of $(11.29M) versus net income of $0.55M in the prior year. Non-cash charges were significant: share-based compensation of $4.83M (up from $0.25M) and an unrealized loss on equity securities of $4.06M. However, these were more than offset by a massive $9.67M increase in inventories (compared to $2.75M in Q1 2025), reflecting a large working capital outflow. Accounts receivable provided $1.70M (versus a $0.82M use), and accounts payable swung to a $2.22M use from a $1.66M source.
Capital expenditures (capex) amounted to $12.58M, up sharply from $0.86M, indicating heavy investment in property, plant, and equipment. Free cash flow (not explicitly stated) would be deeply negative when combining operating cash flow and capex.
Financing activities used $2.63M, compared to providing $3.17M a year ago. The main changes were $4.98M in treasury stock acquired (zero in Q1 2025) and proceeds from warrant exercises of $0.99M (versus $0.81M).
Overall, cash generation was poor, with a large net loss and inventory buildup consuming cash, while heavy capex and share buybacks further drained liquidity. The company ended the period with $3.38M in cash and equivalents, down from $30.66M at the start of the period.