UNITED STATES ANTIMONY CORP - Quarter Report: 2021 June (Form 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 June 30, 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 August 16, 2021, the registrant had outstanding 106,005,234 shares of par value $0.01 common stock.

UNITED STATES ANTIMONY CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD

ENDED JUNE 30, 2021

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1:	Financial Statements (unaudited)	3

Item 2:	Management’s Discussion and Analysis of Results of Operations and Financial Condition	18

Item 3:	Quantitative and Qualitative Disclosure about Market Risk	23

Item 4:	Controls and Procedures	23

PART II – OTHER INFORMATION

Item 1:	Legal Proceedings	24

Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3:	Defaults upon Senior Securities	24

Item 4:	Mine Safety Disclosures	24

Item 5:	Other Information	24

Item 6:	Exhibits and Reports on Form 8-K	24

SIGNATURE		25

CERTIFICATIONS

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

Table of Contents

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

United States Antimony Corporation and Subsidiaries

Consolidated Balance Sheets (Unaudited)

June 30, 2021 and December 31, 2020

ASSETS
	June 30, 2021			December 31, 2020
Current assets:
Cash and cash equivalents	$	22,364,607		$	665,102
Certificates of deposit		44,028			254,212
Accounts receivable		601,315			238,634
Inventories		566,711			650,213
Total current assets		23,576,661			1,808,161

Properties, plants and equipment, net		10,898,313			11,225,594
Restricted cash for reclamation bonds		57,275			57,275
IVA receivable and other assets		223,874			208,472
Total assets	$	34,756,123		$	13,299,502

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Checks issued and payable	$	-		$	86,685
Accounts payable		1,357,304			1,876,874
Accrued liabilities		542,699			635,626
Payables to related party		16,994			227,432
Notes payable to bank		-			100,000
Export tax assessment payable		-			1,120,730
Hillgrove advances payable (Note 12)		-			378,074
Long-term debt, current portion		25,300			52,122
Total current liabilities		1,942,297			4,477,543

Long-term debt, net of current portion		33,200			34,304
Hillgrove advances payable (Note 12)		-			756,147
CARES Act note payable		-			443,400
Stock payable to directors for services		166,250			110,000
Asset retirement obligations and accrued reclamation costs		293,451			291,719
Total liabilities		2,435,198			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 $945,000and $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;
106,005,234 and 75,949,757 shares issued and outstanding, respectively		1,060,051			759,496
Additional paid-in capital		63,883,227			39,050,899
Accumulated deficit		(32,649,141	)		(32,650,794	)
Total stockholders' equity		32,320,925			7,186,389
Total liabilities and stockholders' equity	$	34,756,123		$	13,299,502

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

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United States Antimony Corporation and Subsidiaries
Consolidated Statements of Operations - Unaudited

	For the three months ended						For the six months ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020

REVENUES	$	2,275,562		$	1,585,191		$	3,528,849		$	3,328,182

COST OF REVENUES		2,079,164			1,601,252			3,120,294			3,243,066

GROSS PROFIT (LOSS)		196,398			(16,061	)		408,555			85,116

OPERATING EXPENSES:
General and administrative		290,111			117,959			460,161			319,922
Salaries and benefits		77,278			111,178			153,937			206,147
Other operating expenses		-			25			184,037			24,250
Professional fees		61,199			32,652			184,336			117,610
TOTAL OPERATING EXPENSES		428,588			261,814			982,471			667,929

INCOME (LOSS) FROM OPERATIONS		(232,190	)		(277,875	)		(573,916	)		(582,813	)

OTHER INCOME (EXPENSE):
Interest income		13,389			31			21,882			835
Interest expense		(880	)		(6,439	)		(3,135	)		(11,187	)
Gain on forgiveness of CARES Act debt (Note 14)		443,400			-			443,400			-
Grant income		-			10,000			-			10,000
Gain on settlement of Hillgrove advance (Note 12)		113,422			-			113,422			-
TOTAL OTHER INCOME (EXPENSE)		569,331			3,592			575,569			(352	)

NET INCOME (LOSS)		337,141			(274,283	)		1,653			(583,165	)
Preferred dividends		(12,162	)		(12,162	)		(24,325	)		(24,325	)

Net income (loss) available to common stockholders	$	324,979		$	(286,445	)	$	(22,672	)	$	(607,490	)

Net loss per share of common stock
Basic and diluted	Nil			$	(0.01	)	Nil			$	(0.01	)

Weighted average shares outstanding:
Basic		106,315,419			70,177,677			99,513,378			69,937,144
Diluted		108,696,704			70,177,677			99,513,378			69,937,144

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

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United States Antimony Corporation and Subsidiaries

Consolidated Statement of Changes in Stockholders' Equity

For the periods ended June 30, 2021 and June 30, 2020

(Unaudited)

	Total Preferred Stock				Common Stock				Additional Paid		Accumulated			Total Stockholders'
Three months ended June 30, 2021	Shares		Amount		Shares		Amount		In Capital		Deficit			Equity

Balances, April 1, 2021		2,678,909	$	26,788		105,963,567	$	1,059,634	$	63,856,560	$	(32,986,282	)	$	31,956,700
Common stock issued upon exercise of warrants		-		-		41,667		417		26,667		-			27,084
Net income		-		-		-		-		-		337,141			337,141
Balances, June 30, 2021		2,678,909	$	26,788		106,005,234	$	1,060,051	$	63,883,227	$	(32,649,141	)	$	32,320,925

	Total Preferred Stock				Common Stock				Additional Paid		Accumulated			Total Stockholders'
Three months ended June 30, 2020	Shares		Amount		Shares		Amount		In Capital		Deficit			Equity

Balances, April 1, 2020		2,678,909	$	26,788		69,911,436	$	699,114	$	37,167,730	$	(29,672,872	)	$	8,220,760
Issuance of common stock to Directors		-		-		295,463		2,954		127,529		-			130,483
Net loss		-		-		-		-		-		(274,283	)		(274,283	)
Balances, June 30, 2020		2,678,909	$	26,788		70,206,899	$	702,068	$	37,295,259	$	(29,947,155	)	$	8,076,960

	Total Preferred Stock				Common Stock				Additional Paid			Accumulated			Total Stockholders'
Six months ended June 30, 2021	Shares		Amount		Shares		Amount		In Capital			Deficit			Equity

Balances, January 1, 2021		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		-		-		3,765,477		37,655		1,753,048			-			1,790,703
Net income		-		-		-		-		-			1,653			1,653
Balances, June 30, 2021		2,678,909	$	26,788		106,005,234	$	1,060,051	$	63,883,227		$	(32,649,141	)	$	32,320,925

	Total Preferred Stock				Common Stock				Additional Paid		Accumulated			Total Stockholders'
Six months ended June 30, 2020	Shares		Amount		Shares		Amount		In Capital		Deficit			Equity

Balances, January 1, 2020		2,678,909	$	26,788		69,661,436	$	696,614	$	37,107,730	$	(29,363,990	)	$	8,467,142
Issuance of common stock upon exercise of warrants		-		-		250,000		2,500		60,000		-			62,500
Issuance of common stock to Directors		-		-		295,463		2,954		127,529		-			130,483
Net loss		-		-		-		-		-		(583,165	)		(583,165	)
Balances, June 30, 2020		2,678,909	$	26,788		70,206,899	$	702,068	$	37,295,259	$	(29,947,155	)	$	8,076,960

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

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United States Antimony Corporation and Subsidiaries
Consolidated Statements of Cash Flows - Unaudited

	For the six months ended
	June 30, 2021			June 30, 2020
Cash Flows From Operating Activities:
Net income (loss)	$	1,653		$	(583,165	)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization		442,408			449,648
Accretion of asset retirement obligation		1,732			4,386
Common stock payable for directors fees		56,250			61,733
Gain on settlement of Hillgrove advance		(113,422	)		-
Gain on forgiveness of Cares Act debt		(443,400	)		-
Write-down of inventory to net realizable value		66,054			-
Other non-cash items		-			(48	)
Change in:
Accounts receivable		(362,681	)		50,817
Inventories		17,448			39,890
IVA receivable and other assets		(15,402	)		(43,952	)
Accounts payable		(519,570	)		(256,368	)
Accrued liabilities		(92,927	)		(23,668	)
Export tax assessment payable		(1,120,730	)		-
Payables to related parties		(154,022	)		21,405
Net cash (used) by operating activities		(2,236,609	)		(279,322	)

Cash Flows From Investing Activities:
Proceeds from redemption of certificates of deposit		210,184			-
Purchase of properties, plants and equipment		(115,127	)		(200,166	)
Net cash provided (used) by investing activities		95,057			(200,166	)

Cash Flows From Financing Activities:
Change in checks issued and payable		(86,685	)		142,530
Payments on advances from related party		(56,416	)		(46,160	)
Proceeds from note payable-SBA		-			443,400
Proceeds from issuance of common stock, net of issuance costs		23,342,180			-
Proceeds from exercise of warrants		1,790,703			-
Payments on Hillgrove advances payable		(1,020,799	)		-
Borrowing on notes payable to bank		-			(31,135	)
Principal paid on notes payable to bank		(100,000	)		(21,238	)
Principal payments of long-term debt		(27,926	)		-
Net cash provided by financing activities		23,841,057			487,397
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS AND RESTRICTED CASH		21,699,505			7,909
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	$	22,421,882		$	180,676

NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock payable issued to directors	$	-		$	130,483
Payable to related party satisfied with exercise of stock	$	-		$	62,500

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

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PART I - FINANCIAL INFORMATION, CONTINUED:

United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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 and six month periods ended June 30, 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 June 30, 2021, the Company’s consolidated financial statements show working capital of approximately $21.6 million and an accumulated deficit of approximately $32.6 million. The Company has incurred losses for the past two fiscal 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 six months 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, 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.

Developments in Accounting Pronouncements

Accounting Standards Updates Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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.

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Developments in Accounting Pronouncements, Continued:

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.

Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption.

3.	Income (Loss) Per Common Share

	Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share reflects the potential dilution that could occur if stock warrants were exercised. The following is a reconciliation of the numerator and denominator used in the basic and diluted computation of net income (loss) per share:

	Three months ended June 30,					Six Months Ended June 30,
	2021		2020			2021			2020
Numerator:
Net income (loss) available to shareholders	$	324,979	$	(286,445	)	$	(22,672	)	$	(607,490

Denominator:
Basic weighted average shares outstanding		106,315,419		70,177,677			99,513,378			69,937,144
Incremental shares		2,381,285		-			-			-
Diluted weighted average shares outstanding		108,696,704		70,177,677			99,513,378			69,937,144

Net income (loss) per common share:
Basic EPS	$	Nil	$	(0.01	)	$	Nil		$	(0.01	)
Diluted EPS	$	Nil	$	(0.01	)	$	Nil		$	(0.01	)

For the three months ended June 30, 2021, common stock equivalent shares consisted of stock warrants and were included in the calculation of diluted earnings per share. For the six months ended June 30, 2021 and three and six month periods ended June 30, 2020, we had no common stock equivalent shares that were dilutive.

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

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

Sales of products for the three and six month periods ended June 30, 2021 and 2020 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Antimony	$	1,428,939	$	910,484	$	2,086,046	$	2,031,909
Zeolite		716,428		612,715		1,236,375		1,172,075
Precious metals		130,195		61,992		206,428		124,198
	$	2,275,562	$	1,585,191	$	3,528,849	$	3,328,182

The following is sales information by geographic area based on the location of customers for the three and six month periods ended June 30, 2021 and 2020:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
United States	$	1,983,443	$	1,436,047	$	3,148,956	$	3,002,284
Canada		292,119		149,144		379,893		325,898
	$	2,275,562	$	1,585,191	$	3,528,849	$	3,328,182

Sales of products to significant customers were as follows for the three and six month periods ended June 30, 2021 and 2020:

	For the Three Months Ended						For the Six Months Ended
Sales to	June 30,			June 30,			June 30,			June 30,
Largest Customers	2021			2020			2021			2020
Company A		191,421			176,081			489,571			290,372
Company B		702,597			-			702,597			213,322
Company C		190,557			-			518,226			523,660
Company D		194,247			-			194,247			-
	$	1,278,822		$	176,081		$	1,904,641		$	1,027,354
% of Total Revenues		56.20	%		11.11	%		53.97	%		30.87	%

At June 30, 2021, the Company had a sales order backlog of 1,922 tons of zeolite and 287,000 pounds of antimony.

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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 June 30, 2021 and December 31, 2020:


Largest Accounts Receivable	June 30, 2021			December 31, 2020
Company B	$	172,841		$	-
Company E		27,716			-
Company F		33,609			68,055
	$	234,166		$	68,055
% of Total Receivables		38.94	%		28.52	%

Our trade accounts receivable balance related to contracts with customers was $601,315 at June 30, 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 June 30, 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 June 30, 2021 and December 31, 2020 are as follows

	June 30, 2021		December 31, 2020
Antimony Metal	$	-	$	268,100
Antimony Oxide		216,020		67,377
Antimony Ore		185,123		95,880
Total antimony		401,143		431,357
Zeolite		165,568		218,856
	$	566,711	$	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 June 30, 2021 and December 31, 2020, the antimony inventory in Mexico was valued at estimated net realizable value.

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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 and six month periods ended June 30, 2021, the Company had royalty expense of $69,437 and $131,567, respectively. During the three and six month periods ended June 30, 2020, the Company had royalty expense of $61,468 and $125,618, respectively. At June 30, 2021 and December 31, 2020, the Company had accrued royalties payable of $348,734 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.

7.	Notes Payable to Bank

	At June 30, 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 June 30, 2021 and the lien on the Certificate of Deposit has been released. An amount of $210,184 of the Certificate of Deposit was released during the six months ended June 30, 2021 and the cash was transferred to the checking account, leaving a Certificate of Deposits balance of $44,028 at June 30, 2021 compared to $254,212 at December 31, 2020.

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

8.	Debt

	Long-Term debt at June 30, 2021 and December 31, 2020 is as follows:

	June 30,			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.		-			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
		58,500			86,426
Less current portion		(25,300	)		(52,122	)
Long-term portion	$	33,200		$	34,304

At June 30, 2021, principal payments on debt are due as follows:

12 Months Ending June 30,	Principal Payment
2022		25,300
2023		33,200
	$	58,500

Related Party Transactions

The Company’s previous President and Chairman rented equipment to the Company and charged the Company for lodging and meals provided to consultants, customers and other parties by an entity that he owned. The amount due to his estate as of June 30, 2021 and December 31, 2020 was $0 and $171,017. During the six months ended June 30, 2021, the Company paid off the full amount of $171,017 to his estate for reimbursement of these expenses.

During 2019, the Company’s previous President and Chairman advanced funds to the Company that had a balance at December 31, 2020 of $56,215. During the six month period ended June 30, 2021, the Company paid First Security Bank on behalf of the Company’s previous President and Chairman $56,215. The balance of the advances due to him at June 30 ,2021 is $0.

The Interim Chief Executive Officer of the Company has an advance due from the Company of $200 at December 31, 2020. During the six month period ended June 30, 2021, the Company paid $200 to him as reimbursement on these advances.

During the six months ended June 30, 2021, the Interim President of the Company incurred expenses of $16,994 for which he has not yet been reimbursed that are included in payables to related party on the consolidated balance sheet at June 30, 2021.

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

10.

Stockholder’s Equity

In February 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 cash issuance costs were incurred on these sales.

At June 30, 2021 and December 31, 2020, the Company accrued $166,250 and $110,000, respectively, in directors’ fees payable that will be paid in common stock.

During the three month period ended June 30, 2021, the Company issued 41,667 shares of common stock and received $27,084 in cash from the exercise of warrants; no warrants were exercised during the three month period ended June 30, 2020.

During the six-month period ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants. For the same period in 2020, the Company issued 250,000 shares of common stock in satisfaction of related party debt of $62,500 from the exercise of warrants.

Warrants

Concurrent with the February 3, 2021 sale of common stock, the Company sold warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent. These warrants expire in early 2026.

Transactions in common stock purchase warrants for the six month period ended June 30, 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		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance June 30, 2021		12,489,922		$0.46- $0.85

These warrants expire as follows:

Shares		Exercise Price		Expiration Date
	143,707	$	0.65	2022
	2,285,715	$	0.46	2026
	9,256,500	$	0.85	2026
	804,000	$	0.46	2026
	12,489,922

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

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.

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 $818,000 USD as of June 30, 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 June 30, 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 June 30, 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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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

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 balance of the advance liability due was $1,134,221 at December 31, 2020. In April 2021, the Company successfully negotiated a settlement with Red River for an agreed upon amount of $1,020,799 which was paid on paid on April 8, 2021. The Company recognized a gain on settlement of the advance in the amount of $113,422 during the three month period ended June 30, 2021.

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 and equipment, net:	June 30, 2021		December 31, 2020
Antimony
United States	$	1,621,955	$	1,637,738
Mexico		7,355,204		7,635,410
Subtotal Antimony		8,977,159		9,273,148
Precious metals		915,402		933,885
Zeolite		1,005,753		1,018,561
Total	$	10,898,313	$	11,225,594

At June 30, 2021 and December 31, 2020, the Company had $807,471 and $755,978, respectively, of assets that were not yet placed in service and have not yet been depreciated.

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

13.

Business Segments, Continued:

	For the Three Months Ended				For the Six Months Ended
Capital expenditures:	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Antimony
United States	$	-	$	9,327	$	-	$	32,448
Mexico		4,872		3,897		9,744		30,662
Subtotal Antimony		4,872		13,224		9,744		63,110
Precious Metals		18,921		82,324		37,347		120,845
Zeolite		68,036		8,347		68,036		16,211
Total	$	91,829	$	103,895	$	115,127	$	200,166

Segment Operations for the three	Antimony		Antimony			Total			Precious		Bear River
months ended June 30, 2021	USAC		Mexico			Antimony			Metals		Zeolite			Totals

Total revenues	$	1,428,939	$	-		$	1,428,939		$	130,195	$	716,428		$	2,275,562

Depreciation and amortization		7,893		144,999			152,892			28,226		38,826			219,944

Income (loss) from operations		99,642		(575,363	)		(475,721	)		101,969		141,562			(232,190	)

Other income (expense):		456,725		113,422			570,147			-		(816	)		569,331

NET INCOME (LOSS)	$	556,367	$	(461,941	)	$	94,426		$	101,969	$	140,746		$	337,141

Segment Operations for the three	Antimony		Antimony			Total			Precious		Bear River
months ended June 30, 2020	USAC		Mexico			Antimony			Metals		Zeolite			Totals

Total revenues	$	910,484	$	-		$	910,484		$	61,992	$	612,715		$	1,585,191

Depreciation and amortization		7,394		146,101			153,495			20,683		49,189			223,367

Income (loss) from operations		126,208		(559,575	)		(433,367	)		41,308		114,184			(277,875	)

Other income (expense):		4,739		-			4,739			-		(1,147	)		3,592

NET INCOME (LOSS)	$	130,947	$	(559,575	)	$	(428,628	)	$	41,308	$	113,037		$	(274,283	)

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United States Antimony Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited), Continued:

13.

Business Segments, Continued:

Segment Operations for the six	Antimony			Antimony			Total			Precious		Bear River
months ended June 30, 2021	USAC			Mexico			Antimony			Metals		Zeolite			Totals

Total revenues	$	2,086,046		$	-		$	2,086,046		$	206,428	$	1,236,375		$	3,528,849

Depreciation and amortization		15,784			289,951			305,735			55,830		80,843			442,408

Income (loss) from operations		(119,027	)		(813,931	)		(932,958	)		150,598		208,444			(573,916	)

Other income (expense):		463,360			113,422			576,782			-		(1,213	)		575,569

NET INCOME (LOSS)	$	344,333		$	(700,509	)	$	(356,176	)	$	150,598	$	207,231		$	1,653

Segment Operations for the six	Antimony			Antimony			Total			Precious		Bear River
months ended June 30, 2020	USAC			Mexico			Antimony			Metals		Zeolite			Totals

Total revenues	$	2,031,909		$	-		$	2,031,909		$	124,198	$	1,172,075		$	3,328,182

Depreciation and amortization		14,789			292,199			306,988			44,281		98,379			449,648

Income (loss) from operations		365,559			(1,278,641	)		(913,082	)		79,917		250,352			(582,813	)

Other income (expense):		1,824			-			1,824			-		(2,176	)		(352	)

NET INCOME (LOSS)	$	367,383		$	(1,278,641	)	$	(911,258	)	$	79,917	$	248,176		$	(583,165	)

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. The loan was to be forgiven under the provisions of the CARES Act if the Company used the funds for qualifying expenses. Qualifying expenses included payroll costs, costs used to continue group health care benefits, rent, and utilities. During the three month period ended June 30, 2021, the Company received notification that the loan had been forgiven. The amount of the loan, $443,400, was recognized as gain on forgiveness of the CARES Act loan.

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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 both in Montana and Idaho 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 increasing capacity at the Mexican smelter where labor is not a problem.
	4.	The Company is investigating hiring from alternative potential labor pools.

It is difficult to hire people if they are getting paid more not to work, which is the reality in many cases but is hopeful that the situation(s) fueling this crisis will end soon.

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.

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	Three Months			Three Months			Six Months			Six Months
	Ended			Ended			Ended			Ended
Antimony - Combined USA and Mexico	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Lbs of Antimony Metal USA		329,117			119,559			511,086			286,467
Lbs of Antimony Metal Mexico:		10,000			114,139			10,000			242,684
Total Lbs of Antimony Metal Sold		339,117			233,698			521,086			529,151
Average Sales Price/Lb Metal	$	4.21		$	3.90		$	4.00		$	3.84
Net income (loss)/Lb Metal	$	0.28		$	(1.83	)	$	(0.68	)	$	(1.72	)

Gross antimony revenue - net of discount		1,428,939			910,484			2,086,046			2,031,909

Cost of sales - domestic		(951,790	)		(534,638	)		(1,495,112	)		(1,067,926	)
Cost of sales - Mexico		(539,371	)		(563,666	)		(565,689	)		(1,247,727	)
Operating expenses		(413,499	)		(245,549	)		(958,203	)		(629,338	)
Non-operating income (expenses)		570,147			4,739			576,782			1,824
		(1,334,513	)		(1,339,114	)		(2,442,222	)		(2,943,167	)

Net income (loss) - antimony		94,426			(428,630	)		(356,176	)		(911,258	)
Depreciation,& amortization		152,892			153,495			305,735			306,988
EBITDA - antimony	$	247,318		$	(275,135	)	$	(50,441	)	$	(604,270	)

Precious Metals
Ounces sold
Gold		14			10			22			24
Silver		6,221			3,983			9,608			9,031

Gross precious metals revenue	$	130,195		$	61,992		$	206,428		$	124,198
Production costs, royalties, and shipping costs		(28,226	)		(20,683	)		(55,830	)		(44,281	)
Net income (loss) - precious metals		101,969			41,309			150,598			79,917
Depreciation		28,226			20,683			55,830			44,281
EBITDA - precious metals	$	130,195		$	61,992		$	206,428		$	124,198

Zeolite
Tons sold		3,305			3,045			5,778			5,854
Average Sales Price/Ton	$	216.77		$	201.22		$	213.98		$	200.22
Net income (Loss)/Ton	$	42.59		$	37.12		$	35.87		$	42.39

Gross zeolite revenue	$	716,428		$	612,715		$	1,236,375		$	1,172,075
Cost of sales		(559,777	)		(482,265	)		(1,003,663	)		(883,132	)
Operating expenses		(15,089	)		(16,265	)		(24,268	)		(38,591	)
Non-operating income (expenses)		(816	)		(1,147	)		(1,213	)		(2,176	)
Net income (loss) - zeolite		140,746			113,038			207,231			248,176
Depreciation		38,826			49,189			80,843			98,379
EBITDA - zeolite	$	179,572		$	162,227		$	288,074		$	346,555

Company-wide
Gross revenue	$	2,275,562		$	1,585,191		$	3,528,849		$	3,328,182
Production costs		(2,079,164	)		(1,601,252	)		(3,120,294	)		(3,243,066	)
Operating expenses		(428,588	)		(261,814	)		(982,471	)		(667,929	)
Non-operating income (expenses)		569,331			3,592			575,569			(352	)
Net income (loss)		337,141			(274,283	)		1,653			(583,165	)
Depreciation,& amortization		219,944			223,367			442,408			449,648
EBITDA	$	557,085		$	(50,916	)	$	444,061		$	(133,517	)

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PART I - FINANCIAL INFORMATION, CONTINUED:

ITEM 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition, continued:

Company-Wide

For the second quarter of 2021, we recognized net income of $337,141 on sales of $2,275,562 and other income of $569,331, after depreciation and amortization of $219,944. We reported a net loss of $274,283 in the second quarter of 2020 on sales of $1,585,191, after depreciation and amortization of $223,367.

For the first six months of 2021, we recognized net income of $1,653 on sales of $3,528,849 and other income of $575,569, after depreciation and amortization of $442,408. We reported a net loss of $583,165 for the first six months of 2020 on sales of $3,328,182, after depreciation and amortization of $449,648.

For the three and six months ended June 30, 2021, EBITDA was a positive $557,085 and $444,061 compared to a negative $50,916 and $133,517 for the same periods in 2020.

Non-cash items included in net income was a net gain of $299,568 and a net gain of $442,208 for the three and six months ended June 30, 2021.

Non-cash expense items totaled $258,707 and $223,367 for the three and six months ended June 30, 2020.

For the three and six months ended June 30, 2021, general and administrative expenses were $290,111 and $460,161 compared to $117,959 and $319,922 for the same periods of 2020.

Antimony

For the three and six month periods ended June 30, 2021, we sold 339,117 and 521,086 of antimony compared to 233,698 and 529,151 pounds for the three and six month periods ended June 30, 2020. The raw material received from our North American supplier increased by approximately 117,053 and 174,118 for the three and six month periods ended June 30, 2021, compared to the same periods for 2020. We had a decrease in raw material from Mexico of approximately 63,002 for the three month period and an increase of 34,975 for the six month period ended June 30, 2021, compared to the same periods for 2020.

The average sales price of antimony during the three an six month periods ended June 30, 2021 was $4.21 and $4.00 per pound compared to $3.90 and $3.84 during the same periods 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. The impact of Covid-19 has forced a delay in the geological, geophysical, and geochemical study of the Los Juarez property, however the Company has sent data to a junior mining company with expertise in exploration. The Company is awaiting their review of this material as a potential exists for a partnership wherein another company would conduct the geological evaluation of the Los Juarez property.

For the three and six month periods ended June 30, 2021, income for precious metals from North American sources was $130,195 and $206,428 compared to $61,992 and $124,198 for the same periods of 2020.

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

Precious Metal Sales Silver/Gold	For the three months ended June 30,				For the six months ended June 30,
Montana	2021		2020		2021		2020
Ounces Gold Shipped (Au)		14.14		9.80		21.52		24.71
Ounces Silver Shipped (Ag)		6,220.79		3,983.46		9,607.98		9,031.12
Total Revenues	$	130,195	$	61,992	$	206,428	$	124,198

Bear River Zeolite (BRZ)

For the three and six month periods ended June 30, 2021, BRZ sold 3,305 and 5,778 tons of zeolite compared to 3,045 and 5,854 tons in the same periods of 2020.

For the three and six month periods ended June 30, 2021, BRZ realized net income of $140,746 and $207,231 after depreciation of $38,826 and $80,843 compared to a net income of $113,038 and $248,176 after depreciation of $49,189 and $98,379 for the same period of 2020.

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, the installation of a new hammermill, the addition of an on-site manager and an on-demand mechanic for its rolling stock, improvement in its crushing and sorting circuits, and the improvement in its dust-collection systems, the Company anticipates substantial growth in zeolite sales.

BRZ realized an EBITDA for the three and six month periods ended June 30, 2021 of $179,572 and $288,074 compared to $162,227 and $346,555 for the same periods in 2020.

Financial Position

Financial Condition and Liquidity	June 30, 2021			December 31, 2020

Current assets	$	23,576,661		$	1,808,161
Current liabilities		(1,942,297	)		(4,477,543	)
Net Working Capital	$	21,634,364		$	(2,669,382	)

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	For the Three Months Ended
	June 30, 2021			June 30, 2020
Cash provided (used) by operations	$	(2,236,609	)	$	(279,322	)
Cash provided by collection of note receivable
Cash provided (used) by investing:
Cash used for capital outlay		(115,127	)		(200,166	)
Proceeds from redemption of certificates of deposit		210,184			-
Cash provided (used) by financing:
Payments on notes payable to bank		(100,000	)		(31,135	)
Payments on Hillgrove advances payable		(1,020,799	)		-
Proceeds from common stock issued, net		23,342,180			-
Proceeds from exercise of warrants		1,790,703			-
Principal paid on long-term debt		(27,926	)		(21,238	)
Payments on advances from related party		(56,416	)		(46,160	)
Proceeds from note payable-SBA		-			443,400
Change in checks issued and payable		(86,685	)		142,530
Net change in cash, cash equivalents and restricted cash	$	21,699,505		$	7,909

Our net working capital increased by $24,303,746 from December 31, 2020 to June 30, 2021. Our cash and cash equivalents increased by $21,699,505 during the same period. We spent $115,127 for capital items, our debt decreased by $1,672,347 including $1,020,799 paid to Hillgrove, and our accrued liabilities decreased by $1,943,665 including $1,120,730 paid to eliminate our export tax assessment payable. During the first six months of 2021, 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 June 30, 2021, the Company’s consolidated financial statements show working capital of approximately $21.6 million and an accumulated deficit of approximately $32.7 million. The Company continues to search for areas to reduce production costs, and expects improvement in cash flow for the remainder of the year from the sale of antimony and zeolite along with the increased price of antimony as the price of antimony has been increasing during the past 6 months.

In the first half 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, 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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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 June 30, 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 June 30, 2021. These material weaknesses are as follows:

	•	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 & Director 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 June 30, 2021.

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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

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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: August 16, 2021
	John C. Gustaven, Interim CEO (Principal Executive)

By:	/s/ Russell Lawrence	Date: August 16, 2021
	Russell C. Lawrence, Interim President & Director