ATHENA GOLD CORP MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS. (Form 10-K)

We use the terms “Athena”, “we”, “us” and “our” to refer to
The following discussion should be read in conjunction with our financial statements, including the accompanying notes, appearing elsewhere in this report. The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future.
Forward-Looking Statements
Some of the information presented in this Form 10-K constitutes “forward-looking statements”. These forward-looking statements include, but are not limited to, statements that include words such as “may”, “will”, “intend”, “anticipate”, “estimate”, “expect” , “continue”, “believe”, “plan”, etc., as well as all statements that are not historical facts. Although we believe that our expectations are based on reasonable assumptions within the limits of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from expectations.
All forward-looking statements speak only as of the date they are made. We undertake no obligation to update these statements to reflect events that occur or circumstances that exist after the date on which they are made.
Results of Operations:
Results of operations for the years ended
Here is a summary of our operating results:
Twelve Months Ended12/31/21 12/31/20
Operating expenses Exploration, evaluation and project expenses
General and administrative expenses
614,478 187,556 Total operating expenses 752,461 277,106 Net operating loss (752,461 ) (277,106 ) Interest expense - related party - (112,140 ) Interest expense (12,192 ) (20,822 ) Gain on extinguishment of debt 3,880 - Revaluation of warrant liability (269,482 ) - Net loss$ (1,030,255 ) $ (410,068 ) 29
For the twelve months ending
Twelve months ending 12/31/2021 12/31/2020 Variance
Legal fees and other professional fees
Share-based compensation and RSU
158,000 - 158,000 Stock exchange fees 68,000 23,000 45,000 Other general expenses 18,000 24,000 (6,000 ) Total$ 614,000 $ 188,000 $ 426,000 · The increase in legal and professional fees increase is associated with the acquisition and maintenance of theExcelsior Springs project and our listing on theCanadian Stock Exchange ("CSE"). · OnMarch 22, 2021 , the Company issued a total of 2,000,000 non-statutory stock options to four individuals, three of which are Directors of the Company, the other an independent technical consultant. Upon vesting, each option is exercisable to purchase one share of common stock at a price of$0.09 per share. The options vest 50% upon issuance, and 25% on each of the first and second anniversaries of the grant date. The Company recognized share-based compensation expense related to the stock options of$128,000 for 2021. · OnMarch 22, 2021 the Company agreed to issue a total of 300,000 restricted stock units at a price of$0.10 per share to the independent technical consultant helping design our 2021 exploration programs atExcelsior Springs . As such, we have recorded stock-based compensation in the amount of$30,000 . · The increase in stock exchange fees was a result of listing on the CSE and other compliance reporting.
For the year ended
For the year ended
At
At
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Cash and capital resources:
The Company has no revenue-generating activities from which it can generate funds internally. To date, the Company’s day-to-day operations have been financed by the sale of its equity securities through public offerings, private placements and the exercise of incentive stock options and warrants. share subscription. The Company believes that it will be able to secure additional private placements and public financings in the future, although it cannot predict the size or price of such financings. It is unlikely that this situation will change until the Company can develop a bankable feasibility study on one of its projects.
At
Going Concern
Our financial statements have been prepared on a going concern basis, which assumes that we will be able to meet our obligations and continue our operations over the next fiscal year. The realizable values of assets may differ significantly from the carrying values shown in our consolidated financial statements and do not take into account the adjustments that would be necessary to the carrying values of assets and liabilities if we were unable to continue our business.
Liquidity
From
The Company anticipates that it will operate at a loss for the foreseeable future and believes that current cash and cash equivalents and working capital will be sufficient to maintain its currently owned properties, fund its planned exploration activities and fund its general expenses. and administrative currently anticipated. costs for at least the next 12 months from the date of this report. However, the Company expects to need to raise additional funds through public or private financing in the future in order to continue its activities in the future beyond the immediate 12 month period. If such funding is not available within this timeframe, the Company will be required to curtail its activities and will not be able to complete all of its exploration and, if warranted, development activities on its current schedule. foreseen.
Capital Management
The Company’s objectives with respect to capital management are to preserve the Company’s ability to continue operations in order to pursue the development and exploration of its mineral properties and to maintain a flexible capital structure, which optimizes the costs of capital at an acceptable risk.
From
Off-balance sheet arrangements
We do not engage in any activity involving variable interest entities or off-balance sheet arrangements.
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Significant Accounting Policies and Use of Estimates
The preparation of financial statements in accordance with
We believe that the significant estimates, assumptions and judgments used in accounting for items and matters such as capitalized mining rights, asset valuations, asset recoverability, asset impairments, taxes and other allowances were reasonable, based on the information available at the time they were manufactured. Actual results could differ from these estimates, making it possible that a change in these estimates could occur in the short term.
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