Notes to Consolidated Financial Statements (Unaudited)
1. The Company and Significant Accounting Policies
These unaudited interim consolidated financial statements have been prepared by the management of Idaho Strategic Resources, Inc (IDR) (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 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 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 financial position and results of operations. Operating results for the three-month period ended March 31, 2022, is not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.
On December 6, 2021, New Jersey Mining Company changed its name to Idaho Strategic Resources Inc. and also finalized a 1 for 14 reverse stock split of its common stock as previously approved by shareholders at a Special Meeting of the Shareholders held on October 6, 2021. On the date of the reverse stock split, every fourteen (14) shares of New Jersey Mining Company were automatically converted into one issued and outstanding share of Idaho Strategic Resources, Inc. common stock without any change in the par value per share.
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, 2021, as filed with the Securities and Exchange Commission.
Principles of Consolidation
The 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 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 our 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. 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 our sales of products.
Other Revenue Recognition-Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of control 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.
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
1. The Company and Significant Accounting Policies (continued)
Mine Exploration and Development Costs
The Company expenses exploration costs as such in the period they occur. The mine 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 development stage are capitalized as deferred development costs and include such costs for drift, 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 development stage ends when the production stage of ore reserves (as defined by the SEC) begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces.
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 March 31, 2022, and December 31, 2021, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.
Accounting for Investments in Joint Ventures and Equity Method Investments
Investment in Joint Ventures
For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture 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 joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures 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 joint ventures and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in joint ventures 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 we have 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, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate 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 March 31, 2022, and December 31, 2021, the Company’s 37% common stock holding of Buckskin Gold and Silver, Inc. is accounted for using the equity method (Note 10).
At March 31, 2022 and December 31, 2021, the Company’s percentage ownership and method of accounting for each joint venture and equity method investment is as follows:
| | March 31, 2022 | | | | December 31, 2021 |
Joint Venture | | % Ownership | | Significant Influence? | | Accounting Method | | % Ownership | | Significant Influence? | | Accounting Method |
NJMJV | | 65% | | Yes | | Consolidated | | 65% | | Yes | | Consolidated |
Butte Highlands Joint Venture (“BHJV”) | | 50% | | No | | Cost | | 50% | | No | | Cost |
Buckskin Gold and Silver | | 37% | | Yes | | Equity | | 37% | | Yes | | Equity |
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
1. The Company and Significant Accounting Policies (continued)
Reclassifications
Certain prior period amounts have been reclassified to conform to the 2022 financial statement presentation. Reclassifications had no effect on net income (loss), stockholders’ equity, or cash flows as previously reported.
New Accounting Pronouncement
Accounting Standards Updates Adopted-In August 2020, the FASB issued ASU No. 2020-06 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. The adoption of this update on January 1, 2022, did not have a material impact on our consolidated financial statements.
2. Going Concern
The Company is currently producing from both the open-pit and 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 planned 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.
3. Inventories
At March 31, 2022 and December 31, 2021, the Company’s inventories consisted of the following:
| | March 31, 2022 | | | December 31, 2021 | |
Concentrate inventory | | | | | | |
In process | | $ | 26,437 | | | $ | 41,082 | |
Finished goods | | | 341,626 | | | | 97,074 | |
Total concentrate inventory | | | 368,063 | | | | 138,156 | |
| | | | | | | | |
Supplies inventory | | | | | | | | |
Mine parts and supplies | | | 184,919 | | | | 54,998 | |
Mill parts and supplies | | | 53,091 | | | | 20,568 | |
Total supplies inventory | | | 238,010 | | | | 75,566 | |
| | | | | | | | |
Total | | $ | 606,073 | | | $ | 213,722 | |
The carrying value of inventory is determined each period based on the lower of cost or net realizable value. At March 31, 2022 and December 31, 2021 gold concentrate is carried at cost.
4. Sales of Products
Our products consist of both gold flotation concentrates which we sell to a single broker (H&H Metal), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery. At March 31, 2022, metals that had been sold but not final settled thus exposed to future price changes totaled 1,205 ounces of gold. 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-month periods ended March 31, 2022, and 2021 were as follows:
| | March 31, | |
| | 2022 | | | 2021 | |
Gold | | $ | 2,183,024 | | | $ | 1,716,616 | |
Silver | | | 3,440 | | | | 5,080 | |
Less: Smelter and refining charges | | | (142,047 | ) | | | (135,069 | ) |
Total | | $ | 2,044,417 | | | $ | 1,586,627 | |
Sales by significant product type for the three-month periods ended March 31, 2022, and 2021 were as follows:
| | March 31, | |
| | 2022 | | | 2021 | |
Concentrate sales to H&H Metal | | $ | 2,044,417 | | | $ | 1,510,119 | |
Dore sales to refinery | | | - | | | | 76,508 | |
Total | | $ | 2,044,417 | | | $ | 1,586,627 | |
At March 31, 2022 and December 31, 2021, our gold sales receivable balance related to contracts with customers of $806,417 and $408,187, respectively, consist only of amounts due from H&H Metal. There is no allowance for doubtful accounts.
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
5. Related Party Transactions
At March 31, 2022 and December 31, 2021, the Company had the following note payable to related parties:
| | March 31, 2022 | | | December 31, 2021 | |
Ophir Holdings LLC, a company owned by two officers of the Company, 3.99% interest, monthly payments of $1,250 with a balloon payment of $85,016 in February 2024 | | $ | 106,408 | | | $ | 116,611 | |
Total | | | 106,408 | | | | 116,611 | |
Current portion | | | (10,957 | ) | | | (10,543 | ) |
Long term portion | | $ | 95,451 | | | $ | 106,068 | |
As of March 31, 2022 and December 31, 2021, there was no accrued interest payable to related parties. Related party interest expense for the three-months ended March 31, 2022 and 2021 is $1,129 and $3,181, respectively.
The Company leases office space from certain related parties on a month-to-month basis. $1,500 per month is paid to NP Depot, a company owned by the Company’s president, John Swallow. Payments under these short-term lease arrangements are included in general and administrative expenses on the Consolidated Statement of Operations and are as follows:
| | March 31, | |
| | 2022 | | | | |
| | | | | | |
| | $ | 6,217 | | | $ | 6,210 | |
6. Joint Ventures
New Jersey Mill Joint Venture Agreement
The Company owns 65% of the New Jersey Mill Joint Venture (JV) and has significant influence in its operations. Thus, the venture is included in the consolidated financial statements along with presentation of the non-controlling interest. At March 31, 2022 and December 31, 2021, an account receivable existed with Crescent Silver, LLC, the other joint venture participant (“Crescent”), for $2,828 and $4,442, respectively, for shared operating costs as defined in the JV agreement.
Butte Highlands JV, LLC (“BHJV”)
On January 29, 2016, the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. Highland Mining, LLC (“Highland”) is the other 50% owner and manager of the joint venture. 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 joint venture’s activities, it accounts for its investment on a cost basis.
7. Earnings per Share
For the three-month periods ended March 31, 2022, and 2021, potentially dilutive shares including outstanding stock options (Note 14), warrants (Note 13), and convertible debt (Note 15) were excluded from the computation of diluted loss per share because they were anti-dilutive due to net losses in those periods. For the three-month periods ended March 31, 2022, and 2021, potentially dilutive common stock equivalents excluded from the calculation of diluted earnings per share as their effect would have been anti-dilutive are as follows:
| | March 31, 2022 | | | March 31, 2021 | |
Stock options | | $ | 455,386 | | | $ | 401,786 | |
Stock purchase warrants | | | 646,410 | | | | 426,788 | |
Convertible debt | | | - | | | | 693,595 | |
Total | | $ | 1,101,796 | | | $ | 1,522,169 | |
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
8. Property, Plant, and Equipment
Property, plant and equipment at March 31, 2022 and December 31, 2021 consisted of the following:
| | March 31, 2022 | | | December 31, 2021 | |
Mill | | | | | | |
Land | | $ | 225,289 | | | $ | 225,289 | |
Building | | | 536,193 | | | | 536,193 | |
Equipment | | | 4,192,940 | | | | 4,192,940 | |
| | | 4,954,422 | | | | 4,954,422 | |
Less accumulated depreciation | | | (1,128,397 | ) | | | (1,085,730 | ) |
Total mill | | | 3,826,025 | | | | 3,868,692 | |
| | | | | | | | |
Building and equipment | | | | | | | | |
Buildings | | | 337,859 | | | | 324,075 | |
Equipment | | | 5,241,810 | | | | 5,042,915 | |
| | | 5,579,669 | | | | 5,366,990 | |
Less accumulated depreciation | | | (2,030,098 | ) | | | (1,847,191 | ) |
Total building and equipment | | | 3,549,571 | | | | 3,519,799 | |
| | | | | | | | |
Land | | | | | | | | |
Bear Creek | | | 266,934 | | | | 266,934 | |
BOW | | | 230,449 | | | | 230,449 | |
Eastern Star | | | 250,817 | | | | 250,817 | |
Gillig | | | 79,137 | | | | 79,137 | |
Highwater | | | 40,133 | | | | 40,133 | |
Total land | | | 867,470 | | | | 867,470 | |
Total | | $ | 8,243,066 | | | $ | 8,255,961 | |
9. Mineral Properties
Mineral properties at March 31, 2022 and December 31, 2021 consisted of the following:
| | March 31, 2022 | | | December 31, 2021 | |
Golden Chest | | | | | | |
Mineral Property | | $ | 1,590,672 | | | $ | 1,577,669 | |
Infrastructure | | | 1,235,146 | | | | 1,056,037 | |
Total Golden Chest | | | 2,825,818 | | | | 2,633,706 | |
New Jersey | | | 248,289 | | | | 248,289 | |
McKinley-Monarch | | | 200,000 | | | | 200,000 | |
Butte Potosi | | | 274,440 | | | | 274,440 | |
Alder Gulch | | | 2,473,066 | | | | 2,473,066 | |
Park Copper | | | 78,000 | | | | 78,000 | |
Less accumulated amortization | | | (68,949 | ) | | | (64,315 | ) |
Total | | $ | 6,030,664 | | | $ | 5,843,186 | |
For the three-month periods ended March 31, 2022, and 2021 $13,003 and $10,186, respectively of interest expense was capitalized in association with the ramp access project at the Golden Chest.
10. Investment in Buckskin
In August 2021, the Company exchanged 45,940 shares of the Company’s common stock for 22% of Buckskin Gold and Silver Inc. The Company’s closing share price on the date of the agreement (August 18, 2021) was recorded as the cost basis for the property. In October 2021 the Company exchanged an additional 30,358 shares of the Company’s common stock for an additional 15% of Buckskin. The Company’s closing share price on the date of the exchange (October 15, 2021) was recorded as the cost basis for the investment addition. This investment in Buckskin is being accounted for using the equity method and resulted in recognition of equity income on the investment of $331 during the first quarter of 2022. The Company makes an annual payment of $12,000 to Buckskin per a lease covering 218 acres of patented mining claims. As of March 31, 2022, the Company holds 37% of Buckskin’s outstanding shares.
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
11. Notes Payable
At March 31, 2022 and December 31, 2021, notes payable are as follows:
| | March 31, 2022 | | | December 31, 2021 | |
Resimin Muki Bolter, 36-month note payable, 7.00% interest payable monthly through January 2025, monthly payments of $2,176 | | $ | 66,942 | | | $ | - | |
Paus 2 yrd. LHD, 48-month note payable, 4.78% interest rate payable through September 2024, monthly payments of $5,181 | | | 150,790 | | | | 164,422 | |
Paus 2 yrd. LHD, 60-month note payable, 3.45% interest rate payable through July 2024, monthly payments of $4,847 | | | 130,232 | | | | 143,547 | |
Compressor, 48-month note payable, 5.25% interest rate payable monthly through January 2022, monthly payments of $813 | | | - | | | | 410 | |
CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through June 2024, monthly payments of $627 | | | 16,066 | | | | 17,752 | |
CarryAll transport, 36-month note payable, 4.5% interest rate payable monthly through February 2024, monthly payments of $303 | | | 6,673 | | | | 7,501 | |
Atlas Copco loader, 60-month note payable, 10.5% interest rate payable monthly through June 2023, monthly payments of $3,550 | | | 49,687 | | | | 58,866 | |
Sandvik LH203 LHD, 36-month note payable, 4.5% interest payable monthly through May 2027, monthly payments of $10,352 | | | 255,989 | | | | 283,955 | |
Doosan Compressor, 36-month note payable, 6.99% interest payable monthly through July 2024, monthly payments of $602 | | | 15,544 | | | | 17,064 | |
Caterpillar 306 excavator, 48-month note payable, 4.6% interest payable monthly through November 2024, monthly payments of $1,512 | | | 45,438 | | | | 49,421 | |
Caterpillar 938 loader, 60-month note payable, 6.8% interest rate payable monthly through August 2023, monthly payments of $3,751 | | | 60,626 | | | | 70,734 | |
Caterpillar R1600 LHD, 48-month note payable, 4.5% interest rate payable through January 2025, monthly payments of $17,125 | | | 545,646 | | | | 590,535 | |
Caterpillar AD22 underground truck, 48-month note payable, 6.45% interest rate payable through June 2023, monthly payments of $12,979 | | | 186,215 | | | | 221,694 | |
2022 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,152 | | | 71,759 | | | | - | |
2016 Dodge Ram, 75-month note payable, 5.99% interest rate payable monthly through June 2028, monthly payments of $1,190 | | | 74,101 | | | | - | |
Total notes payable | | | 1,675,708 | | | | 1,625,901 | |
Due within one year | | | 714,401 | | | | 664,153 | |
Due after one year | | $ | 961,307 | | | $ | 961,748 | |
All notes are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at March 31, 2022 are as follows:
12 months ended March 31, | | | |
2023 | | $ | 714,401 | |
2024 | | | 575,588 | |
2025 | | | 302,911 | |
2026 | | | 23,788 | |
2027 | | | 25,254 | |
2028 | | | 26,809 | |
2029 | | | 6,957 | |
Total | | $ | 1,675,708 | |
12. Small Business Administration Loans and Grant
In the second quarter of 2020 the Company received loans of $159,900 pursuant to the Small Business Act Section 7(b). The loan which was in the form of a Note dated May 16, 2020, matures May 16, 2050, and bears interest at a rate of 3.75% per annum. Payments of $731 are due monthly and will begin in April 2022. At March 31, 2022, and December 31, 2021 accrued interest on the loan was $10,902 and $9,311, respectively and is included in the Small Business Administration Loan balance on the consolidated balance sheet.
Idaho Strategic Resources, Inc
Notes to Consolidated Financial Statements (Unaudited)
13. Stockholders’ Equity
Stock issuance activity
The Company closed a private placement in February 2022. Under the private placement, the Company sold 360,134 units at $7.50 per unit for net proceeds of $2,701,000. Each unit consisted of one share of the Company’s common stock. In the first quarter of 2022 the Company issued 3,572 shares of common stock at $9.05 per share for services provided for a total value of $32,326.
Stock Purchase Warrants Outstanding
In the first quarter of 2022, 23,057 shares were issued in exchange for outstanding warrants for net proceeds of $68,006.
The activity in stock purchase warrants is as follows: | | Number of Warrants | | | Exercise Prices | |
Balance December 31, 2020 | | | 426,788 | | | $2.52-5.60 | |
Issued | | | 289,294 | | | $5.60-7.00 | |
Exercised | | | (46,615 | ) | | | $2.52 | |
Balance December 31, 2021 | | | 669,467 | | | $2.52-7.00 | |
Exercised | | | (23,057 | ) | | $2.52-5.60 | |
Balance March 31, 2022 | | | 646,410 | | | $2.52-7.00 | |
| | | | | | | | | |
These warrants expire as follows: | | Shares | | | Exercise Price | | | Expiration Date | |
| | | 13,228 | | | $ | 2.52 | | | April 21, 2022 | |
| | | 343,888 | | | $ | 5.60 | | | August 28, 2022 | |
| | | 235,722 | | | $ | 5.60 | | | October 14, 2023 | |
| | | 53,572 | | | $ | 7.00 | | | November 12, 2023 | |
| | | 646,410 | | | | | | | | |
14. Stock Options
In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,571. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. No options were granted in the first quarter of 2022. 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:
| | February 11, 2021 | | | March 15, 2021 | |
Fair value | | $ | 604,572 | | | $ | 9,860 | |
Options issued | | | 283,936 | | | | 3,572 | |
Exercise price | | $ | 5.60 | | | $ | 5.60 | |
Expected term (in years) | | | 3.0 | | | | 3.0 | |
Risk-free rate | | | 0.19 | % | | | 0.33 | % |
Volatility | | | 97.9 | % | | | 99.3 | % |
In the first quarter of 2022, 51,789 options were exercised in exchange for 28,981 shares at an average price of $9.72 per share in a cashless warrant exercise. Activity in the Company’s stock options is as follows:
| | Number of Options | | | Exercise Prices | |
Balance December 31, 2020 | | | 150,000 | | | $ | 1.40-1.96 | |
Granted | | | 469,674 | | | $ | 5.60 | |
Exercised | | | (101,786 | ) | | $ | 1.40-1.96 | |
Forfeited | | | (10,713 | ) | | $ | 1.96-5.60 | |
Balance December 31, 2021 | | | 507,175 | | | $ | 1.96-5.60 | |
Exercised | | | (51,789 | ) | | $ | 1.96-5.60 | |
Balance March 31, 2022 | | | 455,386 | | | $ | 1.96-5.60 | |
Outstanding and exercisable at March 31, 2022 | | | 455,386 | | | $ | 1.96-5.60 | |
At March 31, 2022, outstanding stock options have a weighted average remaining term of approximately 2.02 years and an intrinsic value of approximately $2,317,000. Intrinsic value of the options exercised for the three-month period ended March 31, 2022, was $134,360.
15. Convertible Debt
The balance of convertible debt at December 31, 2021 consisted of $200,000 convertible to Common shares at a price of $5.60 per share (35,715 shares) and $1,750,000 convertible to Common shares at a price of $4.90 per share (357,151 shares). All of this debt was converted to Common shares as provided in the respective agreements in March 2022.