Paramount Gold Nevada(PZG) - 2024 Q2 - Quarterly Report

Financing and Capital Structure - Paramount closed a $15 million financing with Sprott through the issuance of a Debenture to fund the permitting of the Grassy Mountain Gold Mine and repay outstanding debt[84]. - The company issued 3,761,515 shares under its equity offering program for net proceeds of$1,140,652 during the six months ended December 31, 2023[102]. - The company expects to fund operations through equity and debt financing, with substantial doubt about its ability to continue as a going concern within twelve months after the financial statements are issued[108]. - The company has existing cash on hand and working capital, along with an ATM program with Cantor Fitzgerald & Co. and Canaccord Genuity LLC[110]. Financial Performance - For the three months ended December 31, 2023, the net loss was $1,574,559, an increase of 10$1,432,485 in the same period of 2022[87]. - Exploration expenses for the three months ended December 31, 2023 were $1,773,930, representing an increase of 281$465,402 in the same period of 2022[89]. - For the six months ended December 31, 2023, exploration expenses totaled $3,033,720, an increase of 132$1,304,997 in the same period of 2022[91]. - Directors' compensation expenses for the three months ended December 31, 2023 increased by 25% to $28,951 from$23,233 in the same period of 2022[95]. - General and administration expenses decreased by 16% to $181,012 for the three months ended December 31, 2023, down from$214,365 in the same period of 2022[99]. - Cash used in operating activities amounted to $1,527,019, primarily for permitting and exploration activities, employee salaries, and general administration costs[109]. Exploration and Development - The company expects to incur losses for the foreseeable future as it continues with planned exploration and development programs[88]. - The company spent$1.1 million on the Grassy Mountain Project for state and federal permitting activities, and $1.0 million for E-Cell conversions at the Sleeper Gold Project[110]. - The company has not established any proven or probable reserves and continues to expense exploration costs as incurred[113]. Cash Flow and Expenditures - The company anticipates twelve-month cash expenditures of$4.2 million on corporate, land claim maintenance, and general expenses[107]. - Cash used in investing activities was $50,000 for the payment on the agreement to purchase the Bald Peak claims[109]. Accounting and Financial Reporting - The fair value of the company's asset retirement obligation is estimated using a discount factor that reflects the credit-adjusted risk-free rate of interest and inflation[114]. - The company accounts for convertible notes with conversion features in accordance with ASC 815, with fair value changes recognized in the Statement of Operations[115]. - There are currently no off-balance sheet arrangements that could materially affect the company's financial condition or results[116]. - Management considers critical accounting policies related to mineral property acquisition costs, exploration and development costs, and foreign currency translation[109].