[10-Q] Idaho Strategic Resources, Inc. Quarterly Earnings Report

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The Company occasionally receives grant income from various government agencies. Government grant income is recognized in earnings on a systematic basis in a manner that mirrors how the Company recognizes underlying costs for which the grant is intended to compensate. A grant receivable is recognized for expenses or losses already incurred but for which grant funding has not yet been received. Grant funding received in excess of expenses or losses incurred is recognized as deferred revenue. If a grant is received based solely on a capital expenditure, the amount of the asset is reduced by the amount received from the grant.

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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, 2025
	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. 001-41320

IDAHO STRATEGIC RESOURCES, INC

(Name of small business issuer in its charter)

Idaho		82-0490295
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification No.)

201 N. Third Street, Coeur d’Alene, ID 83814

(Address of principal executive offices) (zip code)

(208) 625-9001

Registrant’s telephone number, including area code

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

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.00 par value	IDR	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	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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 1, 2025, 14,505,392 shares of the registrant’s common stock were outstanding.

IDAHO STRATEGIC RESOURCES, INC

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD

ENDED JUNE 30, 2025

TABLE OF CONTENTS

PART I -FINANCIAL INFORMATION			3
	ITEM 1. Financial Statements		3
	ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
	ITEM 3. Quantitative and Qualitative Disclosures about Market Risk		16
	ITEM 4. Controls and Procedures		16
PART II OTHER INFORMATION			17
	ITEM 1. Legal Proceedings		17
	ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds		17
	ITEM 3. Defaults Upon Senior Securities		17
	ITEM 4. Mine Safety Disclosures		17
	ITEM 5. Other Information		17
	ITEM 6. Exhibits		18

2

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1: Financial Statements

Idaho Strategic Resources, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

		June 30, 2025				December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	2,444,476			$	1,106,901
Investments in US treasury notes			10,611,794				7,775,193
Gold sales receivable			2,641,438				1,578,694
Inventories			1,120,993				899,924
Joint venture receivable			1,108				2,892
Other current assets			366,137				378,469
Total current assets			17,185,946				11,742,073
Property, plant and equipment, net of accumulated depreciation			16,289,024				12,904,065
Mineral properties, net of accumulated amortization			11,598,167				10,573,349
Investment in Buckskin Gold and Silver, Inc			342,623				341,436
Investment in joint venture			435,000				435,000
Investments in US treasury notes, non-current			11,082,224				7,208,930
Reclamation bond			330,110				249,110
Deposits			436,166				567,667
Total assets		$	57,699,260			$	44,021,630
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	1,535,858			$	1,006,078
Accrued payroll and related payroll expenses			570,525				564,090
Notes payable, current portion			1,254,269				709,381
Total current liabilities			3,360,652				2,279,549
Asset retirement obligations			315,264				305,409
Notes payable, long term			2,025,399				1,023,358
Total long-term liabilities			2,340,663				1,328,767
Total liabilities			5,701,315				3,608,316
Commitments Note 5			-				-
Stockholders’ equity:
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding			-				-
Common stock, no par value, 200,000,000 shares authorized; June 30, 2025-14,058,339 and December 31, 2024- 13,665,058 shares issued and outstanding			53,296,323				46,059,318
Accumulated deficit			(3,997,516	)			(8,373,953	)
Total Idaho Strategic Resources, Inc stockholders’ equity			49,298,807				37,685,365
Non-controlling interest			2,699,138				2,727,949
Total stockholders' equity			51,997,945				40,413,314
Total liabilities and stockholders’ equity		$	57,699,260			$	44,021,630

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

3

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Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Six-Month Periods Ended June 30, 2025 and 2024   

		June 30, 2025								June 30, 2024
		Three Months				Six Months				Three Months				Six Months
Revenue:
Sales of products		$	9,476,739			$	16,755,275			$	6,125,382			$	12,024,320
Total revenue			9,476,739				16,755,275				6,125,382				12,024,320
Costs of Sales:
Cost of sales and other direct production costs			3,459,215				6,490,044				2,596,027				5,154,940
Depreciation and amortization			541,738				1,091,359				455,930				957,718
Total costs of sales			4,000,953				7,581,403				3,051,957				6,112,658
Gross profit			5,475,786				9,173,872				3,073,425				5,911,662
Other operating expenses:
Exploration			2,244,761				3,616,194				620,056				887,904
Management			268,214				532,959				90,313				199,413
Professional services			153,260				336,998				84,982				239,226
General and administrative			223,735				460,753				179,456				340,119
Loss on disposal of equipment			68,942				308,840				3,022				7,431
Total other operating expenses			2,958,912				5,255,744				977,829				1,674,093
Operating income			2,516,874				3,918,128				2,095,596				4,237,569
Other (income) expense:
Equity (income) loss on investment in Buckskin Gold and Silver, Inc			159				(1,187	)			1,589				(278	)
Timber revenue net of costs			(2,848	)			(6,704	)			(6,049	)			(19,406	)
Loss on investment in equity securities			-				-				-				453
Interest income			(220,409	)			(405,804	)			(60,468	)			(80,103	)
Interest expense			-				-				25,602				46,167
Total other (income) expense			(223,098	)			(413,695	)			(39,326	)			(53,167	)
Net income			2,739,972				4,331,823				2,134,922				4,290,736
Net loss attributable to non-controlling interest			(27,486	)			(44,614	)			(22,951	)			(38,246	)
Net income attributable to Idaho Strategic Resources, Inc.		$	2,767,458			$	4,376,437			$	2,157,873			$	4,328,982
Net income per common share-basic		$	0.20			$	0.32			$	0.17			$	0.34
Weighted average common share outstanding-basic			14,007,582				13,837,894				12,836,205				12,674,789
Net income per common share-diluted		$	0.20			$	0.31			$	0.17			$	0.34
Weighted average common shares outstanding- diluted			14,134,531				13,939,790				12,999,717				12,850,749

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

4

Table of Contents

Idaho Strategic Resources, Inc.

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited)

For the Three and Six-Month Periods Ended June 30, 2025 and 2024

		Common Stock Shares				Common Stock Amount				Accumulated Deficit Attributable to Idaho Strategic Resources, Inc				Non-Controlling Interest				Stockholders’ Equity
Balance January 1, 2024			12,397,615			$	34,963,739			$	(17,210,638	)		$	2,782,497			$	20,535,598
Contribution from non-controlling interest in New Jersey Mill Joint Venture			-				-				-				1,598				1,598
Issuance of common stock for cash, net of offering costs			127,152				847,492				-				-				847,492
Issuance of common stock for warrants exercised			147,026				823,346				-				-				823,346
Issuance of common stock for stock options exercised			5,357				29,999				-				-				29,999
Issuance of common stock for cashless stock options exercised			5,887				-				-				-				-
Net income (loss)			-				-				2,171,109				(15,295	)			2,155,814
Balance March 31, 2024			12,683,037				36,664,576				(15,039,529	)			2,768,800				24,393,847
Contribution from non-controlling interest in New Jersey Mill Joint Venture			-				-				-				10,647				10,647
Issuance of common stock for cash, net of offering costs			137,864				1,313,392				-				-				1,313,392
Issuance of common stock for warrants exercised			29,763				166,673				-				-				166,673
Issuance of common stock for stock options exercise			21,429				120,002				-				-				120,002
Issuance of common stock for cashless stock options exercise			86,481				-				-				-				-
Net income (loss)			-				-				2,157,873				(22,951	)			2,134,922
Balance June 30, 2024			12,958,574			$	38,264,643			$	(12,881,656	)		$	2,756,496			$	28,139,483
Balance January 1, 2025			13,665,058				46,059,318				(8,373,953	)			2,727,949				40,413,314
Contribution from non-controlling interest in New Jersey Mill Joint Venture			-				-				-				1,927				1,927
Stock-based compensation			-				495,146				-				-				495,146
Issuance of common stock for cashless stock options exercised			3,722				-				-				-				-
Net income (loss)			-				-				1,608,979				(17,128	)			1,591,851
Balance March 31, 2025			13,668,780				46,554,464				(6,764,974	)			2,712,748				42,502,238
Contribution from non-controlling interest in New Jersey Mill Joint Venture			-				-				-				13,876				13,876
Stock-based compensation			-				495,146				-				-				495,146
Issuance of common stock for cash, net of offering costs			380,000				6,246,713				-				-				6,246,713
Issuance of common stock for cashless stock options exercise			9,559				-				-				-				-
Net income (loss)			-				-				2,767,458				(27,486	)			2,739,972
Balance June 30, 2025			14,058,339			$	53,296,323			$	(3,997,516	)		$	2,699,138			$	51,997,945

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

5

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Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six-Month Periods Ended June 30, 2025 and 2024

		June 30,
		2025				2024
Cash flows from operating activities:
Net income		$	4,331,823			$	4,290,736
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			1,091,359				957,718
Loss on disposal of equipment			308,840				7,431
Accretion of asset retirement obligation			9,855				9,226
Loss on investment in equity securities			-				453
Equity income on investment in Buckskin Gold and Silver, Inc			(1,187	)			(278	)
Stock-based compensation			990,292				-
Debt payments made by 3rd party			(44,951	)			-
Change in operating assets and liabilities:
Gold sales receivable			(1,062,744	)			(477,647	)
Inventories			(221,069	)			110,069
Joint venture receivable			1,784				667
Other current assets			12,332				42,939
Accounts payable and accrued expenses			529,780				248,611
Accrued payroll and related payroll expenses			6,435				19,517
Net cash provided by operating activities			5,952,549				5,209,442
Cash flows from investing activities:
Purchases of property, plant, and equipment			(2,436,596	)			(583,841	)
Deposits on equipment			(62,600	)			(345,907	)
Proceeds from sale of equipment			90,400				-
Additions to mineral property			(1,112,712	)			(960,388	)
Purchase of US treasury notes			(6,709,895	)			(6,309,340	)
Proceeds from sale of investment in equity securities			-				5,196
Purchase of reclamation bond			(81,000	)			(5,000	)
Net cash used by investing activities			(10,312,403	)			(8,199,280	)
Cash flows from financing activities:
Proceeds from sale of common stock, net of issuance cost			6,246,713				2,160,884
Proceeds from issuance of common stock for warrants exercised			-				990,019
Proceeds from issuance of common stock for stock options exercised			-				150,001
Principal payments on notes payable			(565,087	)			(795,530	)
Contributions from non-controlling interest			15,803				12,245
Net cash provided by financing activities			5,697,429				2,517,619
Net change in cash and cash equivalents			1,337,575				(472,219	)
Cash and cash equivalents, beginning of period			1,106,901				2,286,999
Cash and cash equivalents, end of period		$	2,444,476			$	1,814,780
Non-cash investing and financing activities:
Deposit on equipment applied to purchase		$	194,101			$	30,719
Notes payable for equipment purchase		$	2,156,967			$	559,752
Note payable for mineral property purchase		$	-			$	650,000

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

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. The Company and Significant Accounting Policies

These unaudited interim condensed consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc. (“IDR”, “Idaho Strategic” or the “Company”) in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair statement of the interim condensed consolidated financial statements have been included.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's consolidated financial position and results of operations. Operating results for the three and six-month periods ended June 30, 2025, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. Management estimates that the effective tax rate expected for the full year ended December 31, 2025 will be 0% due to the Company’s cumulative loss position, historical net operating losses (“NOLs”), and other available evidence related to the Company’s ability to generate taxable income. Accordingly, there is no income tax provision or benefit for the six month period ended June 30, 2025.

For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2024, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 31, 2025.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the condensed consolidated balance sheets and statements of operations.

Revenue Recognition

Gold Revenue Recognition and Receivables-Sales of gold sold directly to customers are recorded as revenues and receivables upon completion of the performance obligations and transfer of control of the product to the customer. For concentrate sales, the performance obligation is met, the transaction price can be reasonably estimated, and revenue is recognized generally at the time of shipment at estimated forward prices for the anticipated month of settlement. Due to the time elapsed from shipment to the customer and the final settlement with the customer, prices at which sales of concentrates will be settled are estimated. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. The Company obtains the forward metals prices used for each period from Kitco For sales of doré and metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer by the refiner.

Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 4 for more information on the Company’s sales of products.

Other Revenue Recognition-Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of the timber have both been completed. Sales of timber found on the Company’s mineral properties are not a part of normal operations.

Inventories

Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value.

Mine Exploration and Development Costs

The Company expenses exploration costs as such in the period they occur. The exploration stage occurs up until the point ore reserves are identified. The pre-development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the pre-development stage are capitalized as deferred development costs and include such costs for drifts, ramps, and infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The pre-development stage ends when the production stage of ore reserves begins, thus entering the secondary development stage.

Drilling, and related costs are either classified as exploration, pre-development or secondary development, as defined above, and charged to operations as incurred, or capitalized, based on the following criteria:

	·	whether the costs are incurred to further define resources or exploration targets at and adjacent to existing reserve areas or intended to assist with mine planning within a reserve area;
	·	whether the drilling or development costs relate to an ore body that has been determined to be commercially mineable, and a decision has been made to put the ore body into commercial production; and
	·	whether, at the time the cost is incurred: (a) the expenditure embodies a probable future benefit that involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to future net cash inflows, (b) the Company can obtain the benefit and control others’ access to it, and (c) the transaction or event giving rise to the Company’s right to or control of the benefit has already occurred.

If all of these criteria are met, drilling, development and related costs are capitalized. Drilling and development costs not meeting all of these criteria are expensed as incurred. The following factors are considered in determining whether or not the criteria listed above have been met, and capitalization of drilling and development costs is appropriate:

· completion of a favorable economic study and mine plan for the ore body targeted;

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. The Company and Significant Accounting Policies (continued)

	·	authorization of development of the ore body by management and/or the Board of Directors; and
	·	there is a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues and/or contractual requirements necessary for the Company to have the right to or control of the future benefit from the targeted ore body have been met.

Amortization of development costs is calculated using the units-of-production method over the expected life as per the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35-4. This includes the cost to define proven and probable reserves and measured and indicated resources accessible via the Main Access Ramp (“MAR”). Measured resources are 90-100% interpolated, and indicated resources 75-80% interpolated, using a 2 grams per tonne gold cut-off grade at the diluted minimum mining width. Conservative estimation parameters (three samples within 25 meters for measured, two within 50 meters for indicated) and economic factors ensure viability. Inferred resources are excluded to reduce uncertainty, and therefore, the volumes are risk-adjusted. Assumptions are regularly evaluated, with material deviations disclosed to ensure a systematic and rational cost allocation. More information on the Company’s reserves and resources can be found in the Technical Report Summary For the Golden Chest Mine which was included as Exhibit 96.1 to the Company’s Form 10-K filed with the Securities and Exchange Commission on March 31, 2025.

Fair Value Measurements

When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At June 30, 2025 and December 31, 2024, the Company had no assets or liabilities that required measurement at fair value on a recurring basis other than its gold sales receivable.

Accounting for Investments in Joint Ventures (“JV”) and Equity Method Investments

Investment in JVs-For JVs where the Company holds more than 50% of the voting interest and has significant influence, the JV is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.

For JVs in which the Company does not have joint control or significant influence, the cost method is used. For those JVs in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in JVs and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in JVs for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.

Equity Method Investments-Investments in companies and joint ventures in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, the Company’s share of the net earnings or losses of the investee are included in net income (loss) in the condensed consolidated statements of operations. The Company evaluates equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At June 30, 2025, and December 31, 2024, the Company's 37% common stock holding of Buckskin Gold and Silver, Inc. (“Buckskin”) is accounted for using the equity method (Note 11).

At June 30, 2025 and December 31, 2024, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:

June 30, 2025

December 31, 2024

JV/Equity

% Ownership

Significant Influence?

Accounting Method

% Ownership

Significant Influence?

Accounting Method

NJMJV

65

%

Yes

Consolidated

65

%

Yes

Consolidated

Butte Highlands JV, LLC

50

%

No

Cost

50

%

No

Cost

Buckskin

37

%

Yes

Equity

37

%

Yes

Equity

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2025 financial statement presentation. Reclassifications had no effect on net income or stockholders’ equity as previously reported. Cash flows were reclassified due to the US treasury notes.

Investments in US Treasury Notes

The Company holds short term investments in United States Treasury notes and are classified as held to maturity based on management’s intent and ability to hold them to maturity. Such debt securities are stated at cost, adjusted for unamortized purchase premiums and discounts and are amortized using the interest method over the stated terms of the securities. Amortization of the premium or discount is included in interest income on the condensed consolidated statement of operations.

Segment Reporting

The Company operates as a single operating segment. All financial information is presented on a consolidated basis and reviewed by the Company’s Chief Executive Officer as the Chief Operating Decision Maker (“CODM”). The CODM uses consolidated net income, as presented in the condensed consolidated statement of operations, to assess segment performance and allocate resources. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets. 

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. The Company and Significant Accounting Policies (continued)

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. The Company does not believe there will be an impact from this update on its condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company's annual periods for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the ASU to determine the impact on its condensed consolidated financial statements and disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

2. Investments in US Treasury Notes

The table below provides the components of investments in US treasury notes held to maturity at amortized cost and fair value at June 30, 2025 and December 31, 2024.

June 30, 2025
		Amortized Cost				Gross Unrealized gains				Gross Unrealized losses				Fair value
US Treasury notes, current (Matures within 1 year)		$	10,611,794			$	25,206			$	-			$	10,637,000
US Treasury notes, non-current (Matures in 1-5 years)			11,082,224				114,776				-				11,197,000
Total		$	21,694,018			$	139,982			$	-			$	21,834,000

December 31, 2024
US Treasury notes, current (Matures within 1 year)		$	7,775,193			$	30,807			$	-			$	7,806,000
US Treasury notes, non-current (Matures in 1-5 years)			7,208,930				72,070				-				7,281,000
Total		$	14,984,123			$	102,877			$	-			$	15,087,000

Fair value of investments in US treasury notes is determined using Level 1 inputs.

3. Inventories

At June 30, 2025 and December 31, 2024, the Company’s inventories consisted of the following:

		June 30, 2025				December 31, 2024
Concentrate inventory:
Finished goods		$	513,580			$	334,033
Total concentrate inventory			513,580				334,033
Supplies inventory:
Mine parts and supplies			470,214				475,336
Mill parts and supplies			137,199				90,555
Total supplies inventory			607,413				565,891
Total		$	1,120,993			$	899,924

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

4. Sales of Products

The Company’s products consist of both gold flotation concentrates which are sold to a single broker (H&H Metals (“H&H”)), and an unrefined gold-silver product known as doré which is sold to a precious metal refinery (Cascade Refining). At June 30, 2025, gold concentrate that had been sold but not finally settled included 9,244 ounces of gold of which 2,258 ounces were sold at a predetermined price with the remaining 6,986 exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. Sales of products by metal type for the three and six-month periods ended June 30, 2025 and 2024 were as follows:

		June 30, 2025								June 30, 2024
		Three Months				Six Months				Three Months				Six Months
Gold		$	9,588,879			$	16,994,267			$	6,285,048			$	12,410,268
Silver			44,454				76,209				27,596				54,985
Less: Smelter and refining charges			(156,594	)			(315,201	)			(187,262	)			(440,933	)
Total		$	9,476,739			$	16,755,275			$	6,125,382			$	12,024,320

Sales by significant product type for the three and six-month periods ended June 30, 2025, and 2024 were as follows:

		June 30, 2025								June 30, 2024
		Three Months				Six Months				Three Months				Six Months
Concentrate sales to H&H Metal		$	9,476,739			$	16,755,275			$	5,852,389			$	11,751,327
Dore sales to refinery			-				-				272,993				272,993
Total		$	9,476,739			$	16,755,275			$	6,125,382			$	12,024,320

At June 30, 2025 and December 31, 2024 the gold sales receivable balance of $2,641,438, and $1,578,694, respectively, consisted only of amounts due from H&H. There is no allowance for doubtful accounts.

5. Related Party Transactions

The Company leases office space from certain related parties on a month-to-month basis. $2,000 per month is paid to NP Depot LLC, a company owned by the Company’s president, John Swallow and approximately $1,700 is paid quarterly to Mine Systems Design, Inc. which is partially owned by the Company’s vice president, Grant Brackebusch. Payments under these short-term lease arrangements are included in general and administrative expenses on the condensed consolidated statement of operations and for the three and six-month periods ended June 30, 2025 and 2024 are as follows:

June 30, 2025								June 30, 2024
Three Months				Six Months				Three Months				Six Months
$	7,688			$	15,376			$	7,688			$	15,308

6. JV Arrangements

NJMJV Agreement

The Company owns 65% of the NJMJV and has significant influence in its operations. Thus, the JV is included in the condensed consolidated financial statements along with presentation of the non-controlling interest. At June 30, 2025 and December 31, 2024, an account receivable existed with Crescent Silver, LLC (“Crescent”), the other JV participant, for $1,108 and $2,892, respectively, for shared operating costs as defined in the JV agreement. This account receivable is included in the condensed consolidated balance sheet as Joint venture receivable.

Butte Highlands JV, LLC

On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the JV. Under the agreement, Highland will fund all future project exploration and mine development costs. The agreement stipulates that Highland is manager of BHJV and will manage BHJV until such time as all mine development costs, less $2 million are distributed to Highland out of the proceeds from future mine production. The Company has determined that because it does not currently have significant influence over the JV’s activities, it accounts for its investment on a cost basis.

7. Earnings per Share

The following table presents the calculation of basic and diluted net income per common share for the three and six-month periods ended June 30, 2025 and 2024.

		June 30, 2025								June 30, 2024
		Three Months				Six Months				Three Months				Six Months
Net income		$	2,739,972			$	4,331,823			$	2,134,922			$	4,290,736
Weighted average shares-basic			14,007,582				13,837,894				12,836,205				12,674,789
Effect of dilutive potential common shares from stock options			126,949				101,896				125,446				129,410
Effect of dilutive potential common shares from warrants			-				-				38,066				46,550
Weighted average shares-diluted			14,134,531				13,939,790				12,999,717				12,850,749
Net income per share-basic		$	0.20			$	0.32			$	0.17			$	0.34
Net income per share-diluted		$	0.20			$	0.31			$	0.17			$	0.34

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

8. Property, Plant, and Equipment

Property, plant and equipment at June 30, 2025 and December 31, 2024 consisted of the following:

		June 30, 2025				December 31, 2024
Mine Equipment		$	10,461,808			$	8,223,596
Accumulated Depreciation			(4,092,648	)			(3,845,349	)
Total Mine Equipment			6,369,160				4,378,247
Mill Equipment			9,069,657				7,580,452
Accumulated Depreciation			(2,899,653	)			(2,453,673	)
Total Mill Equipment			6,170,004				5,126,779
Buildings			3,111,516				2,715,931
Accumulated Depreciation			(340,359	)			(295,595	)
Total Buildings			2,771,157				2,420,336
Land			978,703				978,703
Total		$	16,289,024			$	12,904,065

For the three and six-month periods ended June 30, 2025 and 2024, depreciation expense for property, plant, and equipment was as follows.

June 30, 2025								June 30, 2024
Three Months				Six Months				Three Months				Six Months
$	488,183			$	1,003,465			$	431,598			$	908,223

9. Mineral Properties

Mineral properties at June 30, 2025 and December 31, 2024 consisted of the following:

		June 30, 2025				December 31, 2024
Golden Chest
Mineral Property		$	5,159,084			$	5,159,084
Infrastructure			5,835,040				4,722,328
Total Golden Chest			10,994,124				9,881,412
New Jersey			256,768				256,768
McKinley-Monarch			200,000				200,000
Potosi			150,385				150,385
Park Copper/Gold			78,000				78,000
Eastern Star			250,817				250,817
Oxford			40,000				40,000
Accumulated Amortization			(371,927	)			(284,033	)
Total		$	11,598,167			$	10,573,349

For the three and six-month periods ended June 30, 2025 and 2024, amortization expense for mineral properties was as follows.

June 30, 2025								June 30, 2024
Three Months				Six Months				Three Months				Six Months
$	53,555			$	87,894			$	24,332			$	49,495

For the three and six-month periods ended June 30, 2025 and 2024, interest expense was capitalized in association with infrastructure at the Golden Chest Mine as follows.

June 30, 2025								June 30, 2024
Three Months				Six Months				Three Months				Six Months
$	52,552			$	95,939			$	23,797			$	43,174

10. Notes Payable

At June 30, 2025 and December 31, 2024, notes payable are as follows:

		June 30, 2025				December 31, 2024
Mine Equipment
Monthly payments of $107,574 and $55,803 as of June 30, 2025 and December 31, 2024, respectively		$	2,451,508			$	962,384
Mill Equipment
Monthly payments of $15,621 and $11,498 as of June 30, 2025 and December 31, 2024, respectively			606,299				540,773
Buildings/Land
Monthly payments of $2,500 and $2,500 as of June 30, 2025 and December 31, 2024, respectively			221,861				229,582
Total notes payable			3,279,668				1,732,739
Due within one year			1,254,269				709,381
Due after one year		$	2,025,399			$	1,023,358

All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at June 30, 2025 are as follows:

7/1/2025 – 6/30/2026		$	1,254,269
7/1/2026 – 6/30/2027			1,022,795
7/1/2027 – 6/30/2028			511,630
7/1/2028 – 6/30/2029			331,468
7/1/2029 – 6/30/2030			159,506
Total		$	3,279,668

11. Investment in Buckskin

The investment in Buckskin is being accounted for using the equity method and resulted in a change in equity from the loss of $159 and income of $1,187 for the respective three and six-month periods ended June 30, 2025 and a loss of $1,589 and income of $278 for the respective three and six-month periods ended June 30, 2024. The Company makes an annual payment of $12,000 to Buckskin per a mineral lease covering 218 acres of patented mining claims. As of June 30, 2025, the Company holds 37% of Buckskin’s outstanding shares.

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Idaho Strategic Resources, Inc

Notes to Condensed Consolidated Financial Statements (Unaudited)

12. Stockholders’ Equity

Stock Issuance Activity

In the first six months of 2025 the Company issued common stock as follows:

	·	Sold 380,000 shares of common stock at an average price of $16.95 per share for net proceeds of $6,246,713.
	·	Issued 13,281 shares of common stock for outstanding stock options via cashless exercises by employees.

Stock Purchase Warrants Outstanding

There was no activity in the Company’s stock purchase warrants since December 31, 2024, therefore there were no stock purchase warrants outstanding at June 30, 2025. Activity in stock purchase warrants is as follows:

		Number of Warrants				Exercise Prices
Balance December 31, 2023			289,294			$	5.60-7.00
Exercised			(147,026	)		$	5.60
Balance March 31, 2024			142,268			$	5.60-7.00
Exercised			(29,763	)		$	5.60
Balance June 30, 2024			112,505			$	5.60-7.00
Exercised			(112,505	)		$	5.60-7.00
Balance December 31, 2024 and June 30, 2025			-			$	-

13. Stock Options

On January 15, 2025, the Company granted 400,000 stock options to employees with an exercise price of $11.50. These options expire on January 15, 2028, and vest equally on June 30, 2025, December 31, 2025, June 30, 2026 and December 31, 2026. The stock-based compensation expense recognized for these options for the three and six-month periods ended June 30, 2025 was $495,146 and $990,292, respectively. Future expense for this stock option grant will be $257,476 for Q3 and Q4 2025 each, $138,641 for Q1 and Q2 2026 each, and $59,418 for Q3 and Q4 2026 each. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

Fair value		$	1,901,360
Options issued			400,000
Exercise price		$	11.50
Expected term (in years)			3.0
Risk-free rate			4.34	%
Volatility			64.2	%

Activity in the Company’s stock options is as follows:

		Number of Options				Weighted Average Exercise Prices
Balance December 31, 2024			77,000			$	5.17
Granted			400,000			$	11.50
Exercised			(20,000	)		$	5.25
Outstanding at June 30, 2025			457,000			$	10.71

In the three and six-month periods ended June 30, 2025, 14,000 options were exchanged for 9,559 shares, and 20,000 options were exchanged for 13,281 shares, respectively, in cashless exercises by employees. The intrinsic value of these options was $160,355 and $211,831 for the three and six-month periods ended June 30, 2025, respectively. At June 30, 2025, outstanding stock options have a weighted average remaining term of approximately 2.25 years and have an intrinsic value of $1,084,250.

14. Subsequent Events

Subsequent to June 30, 2025:

	·	399,687 shares of common stock have been issued for net proceeds of $7,045,108.
	·	Issued 9,500 shares of common stock upon the exercise of outstanding stock options for $56,750.
	·	Issued 37,866 shares of common stock upon the exercise of 68,250 outstanding stock options in cashless exercises by employees.

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Forward-Looking Statements

Certain statements contained in this Form 10-Q, including in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s forward-looking statements include current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization. The Company has tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions. These forward-looking statements are based on information currently available to the Company and are expressed in good faith and believed to have a reasonable basis. However, these forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

These risks, uncertainties and other factors include, but are not limited to, those set forth under Part I, Item 1A.–Risk Factors in the Company’s 2024 Form 10-K and in Part II, Item 1.A.-Risk Factors in this Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to Idaho Strategic or to persons acting on the Company’s behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, the Company does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Plan of Operation

Idaho Strategic is a gold producer and critical minerals/rare earth element (“REE”) exploration company focused on a diversified asset base and cash flows from operations. Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Thorium Belt located near the city of Salmon in central Idaho.

The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and exploration for REEs.

The Company’s gold properties include: the Golden Chest Mine (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Eastern Star exploration property and other less advanced properties. The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties.

In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Lemhi Pass, Diamond Creek, and Mineral Hill. Following observation of industry dynamics and in early response to events impacting long-term domestic critical mineral supply and demand trends, the Company’s strategic expansion into REE’s also aids in diversifying its holdings. The Company believes the anticipated demand for these elements in the electrification of motorized vehicles, defense spending, and a renewed focus on the United States’ domestic critical minerals supply chain security may benefit domestic holders of such assets. The Company also believes it has a first-mover advantage with its addition of recognized REE land holdings in Idaho. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include drilling, trenching, sampling, and mapping of certain areas within the Company’s 19,090-acre landholdings.

Idaho Strategic has been able to demonstrate and utilize its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts. Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.' domestic REE supply chain.

Critical Accounting Estimates

The Company has three critical accounting estimates. The ounces of gold contained in process and concentrate inventory is based on assays taken at the time the ore is processed and the ounces of gold contained in shipped concentrate which is based upon assays taken prior to shipment, however, subject to final assays at the refinery, these shipments are also subject to the fluctuation in gold prices between shipment date and estimated and actual final settlement date. Additionally, the reclamation bond obligation on the Company’s balance sheet is based on an estimate of the future cost to recover and remediate its properties as required by permits upon cessation of operations and may differ when operations are actually ceased. Finally, the amortization of development costs at the Golden Chest Mine is based on an estimate of reserves and measured and indicated resources calculated annually by the Company’s mine engineers.

The Company’s concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, the Company can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in the Company’s concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for the concentrate receivable will occur upon final settlement of the lots. As such, the Company uses the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At June 30, 2025, metals that had been sold but not finally settled included 9,244 ounces of which 2,258 ounces were sold at a predetermined price with the remaining 6,986 exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.

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The asset retirement obligation and asset on the Company’s balance sheet is based on an estimate of the future cost to recover and remediate its properties as required by permits upon cessation of operations and may differ when operations are actually ceased. At June 30, 2025 the Company reviewed its December 31, 2024 estimate that the cost of the machine and man hours probable to be needed to put its properties in the condition required by permits once operations are ceased. The June 30, 2025 estimated costs would be $104,000 for the Golden Chest Mine property and $224,000 for the New Jersey Mine and Mill. For purposes of the estimate, the Company evaluated the expected life in years and costs that, initially, are comparable to rates that it would incur at the present. An expected present value technique is used to estimate the fair value of the liability. This includes inflating the estimated costs in today’s dollars using a reasonable inflation rate up to the date of expected retirement and discounting the inflated costs using a credit-adjusted risk-free rate. Upon initial recognition of the liability, the carrying amount of the related long-lived asset is increased by the same amount. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is amortized over the life of the related asset. The Company is adding to the liability each year, and amortizing the asset over the estimated life, which decreases net income in total each year. Changes resulting from revisions to the timing or amount of the original estimate of undiscounted cash flows are recognized as either an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. Upward revisions of the amount of undiscounted estimated cash flows are discounted using the current credit-adjusted risk-free rate. Downward revisions in the amount of undiscounted estimated cash flows are discounted using the credit-adjusted risk-free rate that existed when the original liability was recognized. The Company reviews, on an annual basis, unless otherwise deemed necessary, the asset retirement obligations. Separately, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and able to be reasonably estimated.

Amortization of development costs is calculated using the units-of-production method over the expected life as per the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 360-10-35-4. This includes the cost to define proven and probable reserves and measured and indicated resources accessible via the Main Access Ramp (“MAR”). Measured resources are 90-100% interpolated, and indicated resources 75-80% interpolated, using a 2 grams per tonne gold cut-off grade at the diluted minimum mining width. Conservative estimation parameters (three samples within 25 meters for measured, two within 50 meters for indicated) and economic factors ensure viability. Inferred resources are excluded to reduce uncertainty, and therefore, the volumes are risk-adjusted. Assumptions are regularly evaluated, with material deviations disclosed to ensure a systematic and rational cost allocation. More information on the Company’s reserves and resources can be found in the Technical Report Summary For the Golden Chest Mine which was included as Exhibit 96.1 to the Company’s Form 10-K filed with the Securities and Exchange Commission on March 31, 2025.

Highlights during the second quarter of 2025 include:

REE Exploration

	·	During the quarter the Company executed a long-term lease agreement for the mineral claims comprising approximately 1,500 acres of various in-holdings within the Company’s Mineral Hill and Lemhi Pass REE projects. Key prospects covered by the mineral claims leased by the Company include Cardinal (Mineral Hill), Lucky Horseshoe (Lemhi Pass, Idaho), Silver Queen (Lemhi Pass, Idaho), Last Chance (Lemhi Pass, Montana), Trapper (Lemhi Pass, Montana), and other prospects.
	·	The Company announced the signing of a Memorandum of Understanding with Clean Core Thorium Energy, Inc. (“CCTE”) to evaluate the feasibility of thorium mining, processing, and fuel fabrication the facilitate a “Made in America” thorium-based nuclear fuel supply chain utilizing thorium from the Company’s Lemhi Pass project and CCTE’s ANEEL fuel- an advanced nuclear fuel comprised of thorium and high assay low-enriched uranium for use in existing nuclear reactors.

Golden Chest/Operations

	·	At the Golden Chest, ore mined from underground stopes totaled approximately 10,240 tonnes with all of the tonnage coming from H-Vein stopes.
	·	During the quarter, a total of 92 meters of development was completed in the MAR while most of the development effort was spent driving attack ramps to the 754 and 742 stopes. A total of 3,460 cubic meters of backfilling was completed during the quarter and operational improvements made by the miners significantly reduced the time to fill a stope from 20 shifts to 10 shifts. Four boreholes designed to deliver paste backfill from the surface to various areas within the mine were completed during the quarter as work continued on the paste backfill plant.
	·	For the quarter ended June 30, 2025, a total of 10,240 dry metric tonnes (“dmt”) were processed at the Company’s New Jersey Mill with a flotation feed head grade of 9.97 gpt gold and gold recovery of 92.6%.
	·	The construction of the tailings filtration circuit at the New Jersey Mill was completed and commissioning of the circuit was also completed. The haulage of tailings back to the Golden Chest mine commenced in the second quarter as well.
	·	An exploration program consisting of surface and underground core drilling was continued during the second quarter at the Golden Chest and a surface core drilling program commenced in the Murray Gold Belt. A total of 2,176 meters of drilling was completed at the Golden Chest targeting the Paymaster, the Red Star, and the H-vein. A total of 1,687 meters of drilling was completed in the Murray Gold Belt targeting two prospects, the Buckskin and the King Mine.
	·	The Company completed its first core drilling program at the Eastern Star project near Elk City, Idaho. A total of 1,956 meters were drilled in April and May targeting three areas, the Carter, the Bema Zone, and the Alberta. Quartz veining was intercepted in many of the holes with assays pending from the laboratory, and some core remaining to be logged.

Results of Operations

Idaho Strategic’s financial performance during the quarter is summarized below:

	·	Revenue increased 54.7% for the three-month period ended June 30, 2025 when compared to the same period in the prior year. For the six-month period ended June 30, 2025, revenue increased 39.3% when compared to the same period in the prior year. The increase in revenue for both the three and six-month periods was due to the increased average gold price realized on ounces sold which was $3,223.38 for the three-month period and $3,049.19 for the six-month period ended June 30,2025. For the three and six-month periods ended June 30, 2024 it was $2,043.84 and $2,102.89, respectively.
	·	Gross profit as a percentage of sales increased slightly from 50.2% in the three-month period ended June 30, 2024 to 57.8% in the three-month period ended June 30, 2025. When comparing the six-month periods ended June 30, 2025 and 2024 gross profit as a percentage of sales increased from 49.2% to 54.8%.
	·	Exploration expense increased $1,624,705 and $2,728,290 when comparing the three and six-month periods ended June 30, 2025 and 2024, respectively. The increase is due to increased core drilling activity this year compared to last. This quarterly exploration expense is expected to continue, and may increase, throughout the remainder of 2025 as the Company continues to invest in the future of the Golden Chest and advance other exploration properties.

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	·	Operating income for the three-month period ended June 30, 2025 was $2,516,874 which is an increase of 20.1% from the same period in 2024. Operating income for the six-month period ended June 30, 2025 was $3,918,128 which is a decrease of 7.5%. The small increase in the three-month period and decrease in the six-month period is due to the planned increase in exploration expense this year compared to last.
	·	Other income increased $183,772 and $360,528 for the three and six-month periods ended June 30, 2025, respectively, when compared to the same periods in the prior year. The increase was from increased interest income and gains on US treasuries from the company’s short term investment account which was opened mid Q2 2024.
	·	Net income for the three-month period ended June 30, 2025 was $2,739,972 which is a 28.3% increase compared to the same period in 2024. Net income for the six-month period ended June 30, 2025 was $4,331,823 which is a 1.0% increase compared to the same period in 2024. The small increase in net income is due to the large increase in exploration expense, as well as the stock-based compensation expense of $495,146 and $990,292 in the three and six-month periods ended June 30, 2025 and none in the same periods in 2024.
	·	The consolidated net income for the six-month periods ended June 30, 2025 and 2024 included non-cash charges as follows: depreciation and amortization of $1,091,359 ($957,718 in 2024), loss on sale of equipment of $308,840 ($7,431 in 2024), accretion of asset retirement obligation of $9,855 ($9,226 in 2024), loss on investment in equity securities of $0 ($453 in 2024), equity income on investment in Buckskin of $1,187 ($278 in 2024), and stock-based compensation expense of $990,292 (none in 2024).
	·	Cash cost per ounce for the three and six-month periods ended June 30, 2025 increased $160.01 and $82.75 per ounce, respectively, compared to the same periods in 2024.
	·	All in sustaining cost per ounce increased during the three and six-month periods ended June 30, 2025 compared to the same periods in 2024 due to an increase in exploration costs from underground and surface drilling at the Golden Chest Mine as well as increased exploration costs across many of the Company’s projects. Adjusted all in sustaining costs without exploration expenses were $1,313.31 and $1,156.50 per ounce for the three and six-month periods ended June 30, 2025, respectively and $1,197.99 and $1,155.08 for the three and six-month periods ended June 30, 2024, respectively.

Cash Costs and All In Sustaining Costs (“AISC”) Reconciliation to Generally Accepted Accounting Principles (“GAAP”)

Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and AISC per ounce (non-GAAP).

The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce and AISC per ounce for the Company’s gold production in the three and six-month periods ended June 30, 2025, and 2024.

Cash cost per ounce is an important operating measure that is utilized to measure operating performance. AISC per ounce is an important measure that is utilized to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all of the expenditures incurred to discover, develop, and sustain gold production. During 2024, the Company changed the way sustaining capital is calculated to better reflect actual costs required to sustain mining operations. Prior periods have been restated in the table below to reflect this change. Idaho Strategic calculates sustaining capital by including depreciation and amortization as an estimate of property, plant, and equipment wear and tear necessary to maintain production capacity, plus Golden Chest capitalized development costs, net of current period amortization, to reflect expenses for sustaining mine access and gold production.

		June 30, 2025								June 30, 2024
		Three Months				Six Months				Three Months				Six Months
Cost of sales and other direct production costs and depreciation and amortization		$	4,000,953			$	7,581,403			$	3,051,957			$	6,112,658
Less depreciation, depletion, amortization and stock-based compensation			(846,872	)			(1,701,627	)			(455,930	)			(957,718	)
Change in concentrate inventory			50,601				(221,069	)			30,224				110,069
Cash Cost		$	3,204,682			$	5,658,707			$	2,626,251			$	5,265,009
Exploration			2,244,761				3,616,194				620,056				887,904
Less REE exploration costs			(236,790	)			(340,462	)			(70,381	)			(157,526	)
Sustaining capital			788,722				1,412,966				681,321				1,364,148
General and administrative			223,735				460,753				179,456				340,119
Less stock-based compensation and other non-cash items			(264,081	)			(697,532	)			(9,262	)			(16,832	)
AISC		$	5,961,029			$	10,110,626			$	4,027,441			$	7,682,822
Divided by ounces produced			3,010				5,910				2,903				6,019
Cash cost per ounce		$	1,064.68			$	957.48			$	904.67			$	874.73
AISC per ounce		$	1,980.41			$	1,710.77			$	1,387.34			$	1,276.43

Financial Condition and Liquidity

		For the Six-Months Ended June 30,
Net cash provided (used) by:		2025				2024
Operating activities		$	5,952,549			$	5,209,442
Investing activities			(10,312,403	)			(8,199,280	)
Financing activities			5,697,429				2,517,619
Net change in cash and cash equivalents			1,337,575				(472,219	)
Cash and cash equivalents, beginning of period			1,106,901				2,286,999
Cash and cash equivalents, end of period		$	2,444,476			$	1,814,780

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The Company is currently producing profitably from underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its profitable production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for small reporting companies.

ITEM 4: CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At June 30, 2025, the Company’s President, who serves as Chief Executive Officer, and the Company’s Vice President, who serves as Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), which disclosure controls and procedures are designed to insure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified by the Securities and Exchange Commission rules and forms.

Based upon that evaluation, it was concluded that the Company’s disclosure controls were effective as of June 30, 2025, to ensure timely reporting with the Securities and Exchange Commission. Specifically, the Company’s corporate governance and disclosure controls and procedures provided reasonable assurance that required reports were timely and accurately reported in periodic reports filed with the Securities and Exchange Commission.

Changes in internal control over financial reporting

There was no material change in internal control over financial reporting in the quarter ended June 30, 2025.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

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

Neither the constituent instruments defining the rights of the Company’s securities filers nor the rights evidenced by the Company’s outstanding common stock have been modified, limited or qualified.

In the second quarter of 2025, 9,559 shares of common stock were issued in exchange for outstanding stock options via cashless exercises by employees.

During the second quarter of 2024, 29,763 shares of common stock were issued in exchange for outstanding warrants for net proceeds of $166,673. 21,429 shares of common stock were issued in exchange for outstanding stock options for net proceeds of $120,002 and 86,481 shares of common stock were issued for outstanding stock options via cashless exercises by employees.

The Company relied on the transaction exemption afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D Rule 506(b). The common shares are restricted securities which may not be publicly sold unless registered for resale with the Securities and Exchange Commission or exempt from the registration requirements of the Securities Act of 1933, as amended.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company 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 report.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibits

3.1	Amended and Restated Articles of Incorporation, incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021
3.2	Amended and Restated By-laws of Idaho Strategic Resources, Inc., incorporated by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on October 27, 2021
10.1	Registrant’s Grant of Options to Employees and Directors of the Company dated January 15, 2025, incorporated herein by reference to the Company’s Form 8-K as filed with the Securities and Exchange Commission on January 17, 2025.
19*	Insider trading policy
31.1*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95*	Mine safety information listed in Section 1503 of the Dodd-Frank Act.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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SIGNATURES

Pursuant to the requirements 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.

	IDAHO STRATEGIC RESOURCES, INC
	By:	/s/ John Swallow
		John Swallow,
		its: President and Chief Executive Officer
		Date August 7, 2025
	By:	/s/ Grant Brackebusch
		Grant Brackebusch,
		its: Vice President and Chief Financial Officer
		Date: August 7, 2025

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