DYNARESOURCE INC Files 2023 Annual Report on Form 10-K

TL;DR

<b>DYNARESOURCE INC has filed its 2023 10-K annual report detailing its financial performance and operational aspects.</b>

AI Summary

DYNARESOURCE INC (DYNR) filed a Annual Report (10-K) with the SEC on April 16, 2024. DYNARESOURCE INC filed its annual report for the fiscal year ending December 31, 2023. The filing is a 10-K report submitted on April 16, 2024. The company is engaged in Metal Mining (SIC code 1000). The filing includes details on various financial instruments and agreements, such as Preferred Stock, Stock Option Awards, and Land Lease Agreements. Key dates mentioned include events in 2021, 2022, 2023, and subsequent events in 2024.

Why It Matters

For investors and stakeholders tracking DYNARESOURCE INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of DYNARESOURCE INC's financial health, operational activities, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed disclosures within the 10-K are essential for regulatory compliance and transparency, offering insights into the company's assets, liabilities, equity, and any significant events or risks that may impact its business.

Risk Assessment

Risk Level: medium — DYNARESOURCE INC shows moderate risk based on this filing. The company's business involves mining, which is subject to significant operational, environmental, and commodity price risks, as indicated by the nature of its industry and the mention of specific assets like GoldSilver Concentrates.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand DYNARESOURCE INC's operational performance and potential challenges in the metal mining sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-04-16 — Filing Date (Date of submission)
• 10-K — Form Type (Type of filing)
• 000-30371 — SEC File Number (SEC filing identifier)
• 24845681 — Film Number (SEC film identifier)
• 1000 — SIC Code (Metal Mining industry classification)
• 2024-02-19 — Subsequent Event Date (Date of a significant event after year-end)

Key Players & Entities

• DYNARESOURCE INC (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-04-16 (date) — Filing date
• METAL MINING (industry) — Standard Industrial Classification
• DE (location) — State of incorporation
• IRVING (location) — Business address city
• 9728689066 (phone) — Business phone
• 2024-02-19 (date) — Subsequent event date

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risk due to reliance on a single customer for a significant portion of its revenue, as noted for the periods 2022 and 2023.
• Land Lease Agreement [medium — operational]: The company has land lease agreements, specifically mentioning DynaMineras, which could have operational implications.
• Notes Payable and Agreements [medium — financial]: The company has various notes payable and additional note agreements, including those from April/May 2013 and related to 2013/2014, indicating potential financial obligations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.

Key Financial Figures

• $0.01 — (g) of the Act: Common Stock, par value $0.01 per share Indicate by check mark if t
• $2.02 — 6,616,189 based on the closing price of $2.02 per share as reported on the OTCQX. For

Filing Documents

• dynr-20231231.htm (10-K) — 2981KB
• dynr-ex10_10.htm (EX-10.10) — 257KB
• dynr-ex23_1.htm (EX-23.1) — 9KB
• dynr-ex23_2.htm (EX-23.2) — 4KB
• dynr-ex31_1.htm (EX-31.1) — 13KB
• dynr-ex31_2.htm (EX-31.2) — 13KB
• dynr-ex32_1.htm (EX-32.1) — 10KB
• img243551218_0.jpg (GRAPHIC) — 83KB
• img243551218_1.jpg (GRAPHIC) — 97KB
• img243551218_2.jpg (GRAPHIC) — 51KB
• 0000950170-24-044527.txt (&nbsp;) — 11180KB
• dynr-20231231.xsd (EX-101.SCH) — 1343KB
• dynr-20231231_htm.xml (XML) — 1714KB

BUSINESS

BUSINESS 4 ITEM 1A.

RISK FACTORS

RISK FACTORS 7 ITEM 1B. UNRESOLVED STAFF COMMENTS 7 ITEM 1C. CYBERSECURITY 7 ITEM 2.

PROPERTIES

PROPERTIES 7 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 20 ITEM 4. MINE SAFETY DISCLOSURES 21 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 22 ITEM 6.

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA 22 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 27 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 28 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 60 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 60 ITEM 9B. OTHER INFORMATION 60 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 61 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 62 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 65 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 67 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 68 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 69 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 70 ITEM 16. FORM 10K SUMMARY 72

SIGNATURES

SIGNATURES 73 EXHIBIT INDEX Exhibit 31.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER, PURSUANT TO RULE 13A-14(A) OF THE EXCHANGE ACT, AS ENACTED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 Exhibit 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER, PURSUANT TO RULE 13A-14(A) OF THE EXCHANGE ACT, AS ENACTED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 Exhibit 32.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER, PURSUANT TO 18 UNITED STATES CODE SECTION 1350, AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 2 Table of Contents CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") relating to our mining business, including resource estimates, exploration efforts, results and expenditures, development initiatives at the San Jose de Gracia Project, estimated production and capacity, costs, capital expenditures, expenses, recoveries, gold prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, environmental, social and governance ("ESG") and human capital management initiatives, risk management strategies, including capital resources and use, cash flow maximization, mine life and other strategic initiatives. Such forward-looking statements are identified by the use of words such as "believes," "intends," "expects," "hopes," "may," "should," "plan," "projected," "contemplates," "anticipates" or similar words and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking information in this report includes, but is not limited to, statements regard

BUSINESS

ITEM 1. BUSINESS History and Organization The Company is a minerals investment, management, and exploration company, and currently conducting test mining and pilot milling activities through an operating subsidiary in Mxico, with specific focus on precious and base metals in Mxico. The Company was originally incorporated in the State of California on September 28, 1937, under the name West Coast Mines, Inc. In November 1998, the Company re-domiciled from California to Delaware and changed its name to DynaResource, Inc. ("DynaUSA"). Our common stock is traded on the OTCQX, the top tier of the OTC Markets Group under the symbol "DYNR". DynaUSA owns 100% of the outstanding shares of DynaResource de Mxico, S.A. de C.V. which owns 100% of the mining concessions, equipment, camp and related facilities which comprise the San Jose de Gracia mining project. We have one wholly owned subsidiary in the USA, DynaMexico US Holding LLC ("US Holding") and three in Mexico, DynaResource de Mexico S.A. de C.V. ("DynaMexico"), Mineras de DynaResource S.A. de C.V. ("DynaMineras") and DynaResource Operaciones, S.A. de C.V. ("DynaOperaciones") in Mexico, collectively referred to as "the Company". Although we consider the three Mexican subsidiaries to be wholly owned, each has issued one qualifying share to a second shareholder as required under Mexican law, with such qualifying shares held by either US Holding or DynaUSA's Chief Executive Officer. The Company currently conducts test mining and pilot milling operations, and other exploration activities of the San Jose de Graca Property ("SJG"), in northern Sinaloa State, Mxico. Product The end use product produced at our test mining and pilot milling operations at SJG is in the form of gold-silver concentrate. Gold-silver concentrate, or simply concentrate, is raw precious metals materials that has been crushed and ground finely to a sand-like product where gangue (waste) and non-precious metals are removed or reduced, thus conce

RISK FACTORS

ITEM 1A. RISK FACTORS Not applicable for smaller reporting companies.

UNRESO LVED STAFF COMMENTS

ITEM 1B. UNRESO LVED STAFF COMMENTS None.

CYBERSECURITY

ITEM 1C. CYBERSECURITY The Company has adopted processes designed to assess, identify, and manage material risks from cybersecurity threats that are integrated into the Company's overall risk management system. The Company's cybersecurity risk management processes are managed by Tuearis Cyber ("Tuearis") an outside contractor with significant experience and expertise in designing and implementing cybersecurity programs for corporate entities such as the Company. During the year ended December 31, 2023, the Company did not experience any risks from cybersecurity threats that materially affected or were reasonably likely to materially affect the Company's business strategy, results of operations, or financial condition. The Company's Board of Directors, through its Audit Committee (the "Committee"), working closely with the Company's corporate governance consultant, provides oversight of risks from cybersecurity threats by monitoring incident-based reports from Tuearis as to the existence and severity of such risks. When risks are identified, the Committee works with the Company's corporate governance consultant to develop appropriat

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