Contract Liabilities
As of December 31, 2023 and December 31, 2022, the Company’s Contract liabilities was comprised of deposits for equipment not-in-use of $1.6 million and $1.1 million, respectively. These deposits were received in accordance with the amended sales agreement for one SAG mill, one ball mill, and one sub-station transformer. In accordance with Topic 606, Revenue from Contracts with Customers, if the sale does not materialize by the deadline provided in the Agreement (June 30, 2024) and no further extensions are provided, then the contract is over and the nonrefundable deposit payments received will be recognized as Other income. See Note 7 – Assets Held for Sale for additional details.
Revenues
The table below is a summary of the Company’s gold and silver sales (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2023 | | 2022 |
| | Amount | | Ounces Sold | | Amount | | Ounces Sold |
| Gold sales | | $ | — | | | — | | | $ | 32,249 | | | 17,728 | |
| Silver sales | | — | | | — | | | 980 | | | 44,084 | |
| Total | | $ | — | | | | | $ | 33,229 | | | |
The Company’s gold and silver sales during the year ended December 31, 2023 and 2022, were attributable to the following customers:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2023 | | 2022 |
| | Amount | | Percentage | | Amount | | Percentage |
| Customer A | | $ | — | | | N/A | | $ | 12,159 | | | 36.6 | % |
| Customer B | | — | | | N/A | | 10,997 | | | 33.1 | % |
| Customer C | | — | | | N/A | | 10,073 | | | 30.3 | % |
| Total | | $ | — | | | N/A | | $ | 33,229 | | | 100.0 | % |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.