Form 10-Q SILVER BULL RESOURCES, For: Apr 30
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E-mailU.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _________ TO _________. |
Commission File Number:
(Exact name of registrant as specified in its charter)
| State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code:
Securities registered pursuant to Section 12(b) of the Act:
777 Dunsmuir Street, Suite 1605
Vancouver, B.C., Canada V7Y 1K4
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ | |
| Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No
As of June 11, 2026, there were
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
TABLE OF CONTENTS
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PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
April 30, 2026 |
October 31, 2025 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash (Note 14) | ||||||||
| Other receivables | ||||||||
| Accounts receivable (Note 5) | ||||||||
| Prepaid expenses and deposits | ||||||||
| Due from related party (Note 7) | ||||||||
| Total Current Assets | ||||||||
| Value-added tax receivable, net of allowance for uncollectible taxes of $ | ||||||||
| Office and mining equipment, net (Note 9) | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued liabilities and expenses (Note 15) | ||||||||
| Income tax payable | ||||||||
| Warrant derivative liability (Note 13) | ||||||||
| TOTAL LIABILITIES | $ | $ | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 15) | ||||||||
| STOCKHOLDERS’ DEFICIENCY (Notes 11, 12 and 13) | ||||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Accumulated other comprehensive income | ||||||||
| Total Stockholders’ Deficiency | ( | ) | ( | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | $ | $ | ||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| 3 |
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
Three Months Ended April 30, |
Six Months Ended April 30, |
|||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUES | $ | $ | $ | $ | ||||||||||||
| EXPLORATION AND PROPERTY HOLDING COSTS | ||||||||||||||||
| Exploration and property holding costs | ||||||||||||||||
| Depreciation (Note 9) | ||||||||||||||||
| Funding Agreement reimbursement (contra expense) (Note 5) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| TOTAL EXPLORATION AND PROPERTY HOLDING COSTS | ||||||||||||||||
| GENERAL AND ADMINISTRATIVE EXPENSES | ||||||||||||||||
| Personnel | ||||||||||||||||
| Office and administrative | ||||||||||||||||
| Professional services | ||||||||||||||||
| Directors’ fees | ||||||||||||||||
| Provision for uncollectible value-added taxes (Note 8) | ||||||||||||||||
| Funding Agreement reimbursement (contra expense) (Note 5) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | ||||||||||||||||
| LOSS FROM OPERATIONS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| OTHER (EXPENSES) INCOME | ||||||||||||||||
| Interest income | ||||||||||||||||
| Foreign currency transaction loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Change in fair value of warrants derivative liability (Note 13) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| TOTAL OTHER EXPENSES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| LOSS BEFORE INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| INCOME TAX EXPENSE | ( | ) | ( | ) | ( | ) | ||||||||||
| NET AND COMPREHENSIVE LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| BASIC AND DILUTED NET LOSS PER COMMON SHARE (Note 6) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| 4 |
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIENCY) EQUITY (Unaudited)
| Common Stock | ||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit |
Accumulated Other Comprehensive Income |
Total Stockholders’ Equity |
|||||||||||||||||||
| Six months ended April 30, 2026 | ||||||||||||||||||||||||
| Balance, October 31, 2025 | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
| Stock option activity as follows: | ||||||||||||||||||||||||
| - Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12) | — | |||||||||||||||||||||||
| Net loss for the six-month period ended April 30, 2026 | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance, April 30, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
| Common Stock | ||||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit |
Accumulated Other Comprehensive Income |
Total Stockholders’ Equity |
|||||||||||||||||||
| Three months ended April 30, 2026 | ||||||||||||||||||||||||
| Balance, January 31, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
| Stock option activity as follows: | ||||||||||||||||||||||||
| Net loss for the three-month period ended April 30, 2026 | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance, April 30, 2026 | $ | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| 5 |
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued) (Unaudited)
|
Common Stock | |||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital |
Accumulated Deficit |
Other Comprehensive Income |
Total Stockholders’ Equity |
|||||||||||||||||||
| Six months ended April 30, 2025 | ||||||||||||||||||||||||
| Balance, October 31, 2024 | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
| Issuance of common stock as follows: | ||||||||||||||||||||||||
| - Exercise of warrants, net of issuance costs (Note 11) | $ | $ | $ | |||||||||||||||||||||
| Stock option activity as follows: | ||||||||||||||||||||||||
| - Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12) | — | |||||||||||||||||||||||
| Net loss for the six-month period ended April 30, 2025 | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance, April 30, 2025 | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
|
|
Common Stock | |||||||||||||||||||||||
| Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit |
Other Comprehensive Income |
Total Stockholders’ Equity |
|||||||||||||||||||
| Three months ended April 30, 2025 | ||||||||||||||||||||||||
| Balance, January 31, 2025 | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
| Issuance of common stock as follows: | ||||||||||||||||||||||||
| - Exercise of warrants, net of issuance costs (Note 11) | $ | $ | $ | |||||||||||||||||||||
| Stock option activity as follows: | ||||||||||||||||||||||||
| - Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 12) | — | |||||||||||||||||||||||
| Net loss for the three-month period ended April 30, 2025 | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance, April 30, 2025 | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| 6 |
SILVER BULL RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended April 30, |
||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used by operating activities: | ||||||||
| Depreciation | ||||||||
| Provision for uncollectible value-added taxes | ||||||||
| Foreign currency transaction loss | ||||||||
| Stock options issued for compensation (Note 12) | ||||||||
| Change in fair value of warrant derivative liability (Note 13) | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Value-added tax receivable | ( | ) | ( | ) | ||||
| Other receivables | ( | ) | ||||||
| Accounts receivables (Note 5) | ( | ) | ( | ) | ||||
| Prepaid expenses and deposits | ||||||||
| Due from related party (Note 7) | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Accrued liabilities and expenses | ||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payment of warrant exercise costs | ( | ) | ||||||
| Proceeds from warrant exercise, net of issuance costs (Notes 11 and 13) | ||||||||
| Net cash (used in) provided by financing activities | ( | ) | ||||||
| Net decrease in cash and cash equivalents | ( | ) | ( | ) | ||||
| Cash and cash equivalents beginning of period | ||||||||
| Cash and cash equivalents end of period | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOW DISCLOSURE: | ||||||||
| Income taxes paid | $ | $ | ||||||
| Interest paid | ||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| 7 |
NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN
Silver Bull Resources, Inc. (the “Company”) was incorporated in the State of Nevada on
The Company engages in the business of mineral exploration. The Company currently owns a number of property concessions in Mexico (collectively known as the “Sierra Mojada Property”). The Company conducts its operations in Mexico through its wholly owned subsidiary corporations, Minera Metalin S.A. de C.V. (“Minera Metalin”), Contratistas de Sierra Mojada S.A. de C.V. (“Contratistas”) and Minas de Coahuila SBR S.A. de C.V. (“Minas”). On August 26, 2021, Contratistas merged with and into Minera Metalin.
On April 16, 2010, Metalline Mining Delaware, Inc., a wholly owned subsidiary of the Company incorporated in the State of Delaware, was merged with and into Dome Ventures Corporation (“Dome”), a Delaware corporation. As a result, Dome became a wholly owned subsidiary of the Company. Dome has a wholly owned subsidiary Dome Asia Inc., which is incorporated in the British Virgin Islands.
On April 23, 2023, Nomad Minerals Ltd. (“Nomad Minerals”), a wholly owned subsidiary of the Company, was incorporated in British Columbia, Canada. On April 28, 2023, Nomad Metals Limited was incorporated at Astana International Financial Centre in Astana, Republic of Kazakhstan, as a wholly owned subsidiary of Nomad Minerals.
The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico. The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company’s investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities.
The Company has been pursuing an Arbitration Claim (the “Arbitration” or the “Claim”) against the United Mexican States (“Mexico”). The Arbitration arose from Mexico’s unlawful expropriation and other unlawful treatment of Silver Bull and its investments resulting from the illegal blockade of Silver Bull’s Sierra Mojada Property. The Arbitration hearing was held in Washington, D.C. in October 2025, and the Company submitted its post-hearing brief to the tribunal on November 21, 2025 and its costs on December 5, 2025. On May 29, 2026, the tribunal of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) rendered its final award dismissing the Claim, concluding that the tribunal did not have jurisdiction and/or was time-barred to hear the Company’s Claim (ICSID Case No. ARB/23/24). The Company is currently assessing the decision to determine whether there are grounds for annulment. The Company has 120 days from the date of the ruling to register for annulment, and the proceeding would be anticipated to take approximately 18 to 36 months from the date of registration. The Company is also evaluating its strategic options following the dismissal including seeking resolution of the ongoing blockade and/or identifying other exploration projects for potential development and investment.
Exploration Stage
The Company has established the existence of mineral resources for the Sierra Mojada Project. The Company has not established proven or probable reserves, as defined by the United States Securities and Exchange Commission (the “SEC”) subpart 1300 of Regulation S-K (“S-K 1300”), through the completion of a “final” or “bankable” feasibility study for Sierra Mojada Project. Furthermore, the Company has no plans to establish proven or probable reserves for Sierra Mojada Project. As a result, the Company remains an exploration stage company, as defined by the SEC.
Beginning with the Company’s Annual Report on Form 10-K for the year ended October 31, 2022, the Company reports its mineral resources in accordance with S-K 1300.
| 8 |
Going Concern
Since its inception in November 1993, the Company has not generated revenue and has incurred an accumulated deficit of $
Based on the Company’s constrained cash and cash equivalents, and history of losses, there exists a certain level of uncertainty regarding the Company’s ability to sustain its operation over the next 12 months as a going concern. While the Company entered into a Funding Agreement (as defined in Note 5) that covered arbitration legal costs and certain other costs, supplemental fundraising is essential to meet more extensive operational demands. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these plans
These condensed interim consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern. Such adjustments could be material.
NOTE 2 – BASIS OF PRESENTATION
The Company’s condensed interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules of the SEC regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures typically included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet at October 31, 2025, was derived from the audited consolidated financial statements. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025.
All figures are in United States dollars unless otherwise noted.
The condensed interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the condensed interim consolidated financial statements furnished herein include all adjustments, all of which are of a routine recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company’s condensed interim consolidated financial statements. Accordingly, operating results for the six months ended April 30, 2026, are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2026, or any future period.
NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025, filed with the SEC on January 28, 2026.
Recent Accounting Pronouncements Adopted
In December 2023, Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU expands public entities’ income tax disclosures by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU will be effective for fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The adoption of this ASU did not materially impact the Company’s condensed interim consolidated financial statements and disclosures.
In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements. This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The effort facilitates Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance and other minor improvements. While the amendments are not expected to result in significant changes for most entities, the FASB provided transition guidance since some entities could be affected. This ASU will be effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of this ASU did not materially impact the Company’s condensed interim consolidated financial statements and disclosures.
| 9 |
Recent Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included in a relevant expense caption on the face of the income statement. Specific costs and expenses that would be required to be disclosed include purchases of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied either prospectively or retrospectively at the option of the Company. The Company is currently evaluating the impact of adopting this ASU on its condensed interim consolidated financial statements and disclosures.
Other recent accounting pronouncements issued by FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a significant impact on the Company’s present or future consolidated financial statements.
NOTE 4 – ILLEGAL BLOCKADE OF SIERRA MOJADA PROPERTY AND ICSID ARBITRATION
The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally with respect to the Sierra Mojada Property located in Coahuila, Mexico.
On June 1, 2018, the Company and its subsidiaries Minera Metalin and Contratistas de Sierra Mojada S.A. de C.V. entered into an earn-in option agreement (the “South32 Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 was able to obtain an option to purchase
On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the South32 Option Agreement. Due to an illegal blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company halted all work on the Sierra Mojada Property. The notice of force majeure was issued because the Company and its subsidiary Minera Metalin were unable to perform their obligations under the South32 Option Agreement due to the blockade. Pursuant to the South32 Option Agreement, any time period provided for in the South32 Option Agreement was to be generally extended by a period equal to the period of delay caused by the event of force majeure.
On August 31, 2022, due to the ongoing blockade of the site, the South32 Option Agreement was mutually terminated by South32 and the Company.
| 10 |
No portion of the equity value of the Company was classified as temporary equity as the South32 Option had no intrinsic value. South32 paid $
As of June 11, 2026, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing, and the Company remains unable to access the Sierra Mojada Property.
On March 2, 2023, the Company filed the NAFTA Notice of Intent. The Company has been unable to access the property since the illegal blockade commenced in September 2019. Despite numerous demands and requests for action by the Company, Mexican governmental agencies have allowed this unlawful conduct to continue and, as such, failed to protect the Company’s investment.
The Company held a meeting with Mexican government officials in Mexico City on May 30, 2023, in an attempt to explore amicable settlement options and avoid arbitration. However, the 90-day period for amicable settlement under NAFTA expired on June 2, 2023, without a resolution.
On June 28, 2023, the Company commenced international arbitration proceedings against Mexico under the United States-Mexico-Canada Agreement (“USMCA”) and NAFTA (the “Arbitration” or the “Claim”). The Arbitration was initiated under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States process, which falls under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”), to which Mexico is a signatory.
On June 17, 2024, the Company filed its Memorial submission with the ICSID detailing the claim against Mexico, and its Claimant’s Reply was filed on April 25, 2025. The reply responded to Mexico’s Counter Memorial and revised the damages estimate to the sum of $
On May 29, 2026, the ICSID tribunal rendered its final award dismissing the Claim on the basis that it did not have jurisdiction and/or was time-barred and ordered the Company to pay a portion of Mexico’s legal costs totaling approximately US$
NOTE 5 – ARBITRATION FINANCING
On September 5, 2023, the Company entered into a litigation funding agreement (“Funding Agreement” or the “LFA”) with Bench Walk, a third party that specializes in funding litigation and arbitration claims. Under the terms of the LFA, Bench Walk agreed to fund the Company with up to $
During the six months ended April 30, 2026, pursuant to the terms of the LFA, the Company received $
The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus
As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.
| 11 |
During the six months ended April 30, 2026 and 2025, the following is a summary of the Company’s expenditures that have been incurred and reimbursed or are expected to be reimbursed from Bench Walk.
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| April 30, | April 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Exploration and property holding costs | $ | $ | $ | $ | ||||||||||||
| Personnel | ||||||||||||||||
| Office and administrative | ||||||||||||||||
| Professional services | ||||||||||||||||
| Directors’ fees | ||||||||||||||||
| Income taxes | ||||||||||||||||
| Changes for the period | ( | ) | ( | ) | ||||||||||||
| Accounts receivable | $ | $ | $ | |||||||||||||
| Accounts receivable – October 31, 2025 | $ | |||
| Expenditure incurred during the six months ended April 30, 2026 | ||||
| Funding received | ( | ) | ||
| Accounts receivable – April 30, 2026 | $ |
NOTE 6 – NET LOSS PER SHARE
The Company had stock options and warrants outstanding at April 30, 2026 and 2025 that upon exercise were issuable into
NOTE 7 – DUE FROM RELATED PARTY
As of April 30, 2026, due from related party consists of $
NOTE 8 – VALUE-ADDED TAX RECEIVABLE
Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. As of April 30, 2026, the Company estimates a net VAT of $
| 12 |
A summary of the changes in the allowance for uncollectible VAT for the six months ended April 30, 2026, is as follows:
| Allowance for uncollectible VAT – October 31, 2025 | $ | |||
| Provision of VAT receivable allowance | ||||
| Foreign currency translation adjustment | ||||
| Allowance for uncollectible VAT –April 30, 2026 | $ | |||
NOTE 9 – OFFICE AND MINING EQUIPMENT
The following is a summary of the Company’s office and mining equipment at April 30, 2026 and October 31, 2025, respectively:
| April 30, | October 31, | |||||||
| 2026 | 2025 | |||||||
| Mining equipment | $ | $ | ||||||
| Vehicles | ||||||||
| Buildings and structures | ||||||||
| Computer equipment and software | ||||||||
| Well equipment | ||||||||
| Office equipment | ||||||||
| Less: Accumulated depreciation | ( | ) | ( | ) | ||||
| Less: Accumulated impairment | ( | ) | ( | ) | ||||
| Office and mining equipment, net | $ | $ | ||||||
NOTE 10 – PROPERTY CONCESSIONS
The following is a summary of the Company’s property concessions in Sierra Mojada, Mexico as at April 30, 2026, October 31, 2025 and 2024:
| Property concessions – October 31, 2024 | $ | |||||
| Impairment | ( | ) | ||||
| Property concessions – April 30, 2026 and October 31, 2025 | $ | |||||
During the fiscal year ended October 31, 2025, the Company recorded an impairment charge of $
As of April 30, 2026, the Company still maintains the mineral concession rights, but at a $ carrying value.
NOTE 11 – COMMON STOCK
shares of common stock were issued during the six months ended April 30, 2026.
On March 18, 2025,
The Company incurred costs of $
| 13 |
NOTE 12 – STOCK OPTIONS
The Company has one stock option plan under which equity securities are authorized for issuance to officers, directors, employees and advisors: the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). The 2019 Plan was amended on April 19, 2022 (the “Amended 2019 Plan”). Under the Amended 2019 Plan,
options were granted or exercised during the six months ended April 30, 2026 and 2025.
The expected volatility assumption is based on the historical volatility of the price of the common stock. The risk-free interest rate assumption is based on yield curves on government zero-coupon bonds with a remaining term equal to the stock options’ expected life. The Company has not paid and does not anticipate paying dividends on its common stock. Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, the Company applied the estimated forfeiture rate of
The following is a summary of stock option activity for the six months ended April 30, 2026:
| Options | Shares | Weighted Average Exercise Price ($CDN) | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||
| Outstanding at October 31, 2025 | $ | $ | ||||||||||||||
| Outstanding and exercisable at April 30, 2026 | $ | $ | ||||||||||||||
The Company recognized stock-based compensation costs for stock options of $
Summarized information about stock options outstanding and exercisable at April 30, 2026 is as follows:
| Options Outstanding | Options Exercisable | |||||||||||||||||||||
| Exercise Price ($CDN) | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price ($CDN) | Number Exercisable | Weighted Average Exercise Price ($CDN) | |||||||||||||||||
| $ | $ | $ | ||||||||||||||||||||
| $ | $ | $ | ||||||||||||||||||||
NOTE 13 – WARRANTS
A summary of warrant activity for the six months ended April 30, 2026 is as follows:
| Warrants | Shares | Weighted Average Exercise Price ($CDN) | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||
| Outstanding and exercisable at October 31, 2025 | $ | $ | ||||||||||||||
| Outstanding and exercisable at April 30, 2026 | $ | $ | ||||||||||||||
| 14 |
No warrants were issued or exercised during the six months ended April 30, 2026.
On March 18, 2025, the Company received gross proceeds of $
No warrants were issued during the six months ended April 30, 2025.
Summarized information about warrants outstanding and exercisable at April 30, 2026 is as follows:
| Warrants Outstanding and Exercisable | ||||||||||||||
| Exercise Price ($CDN) | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price ($CDN) | |||||||||||
| $ | $ | |||||||||||||
During the year ended October 31, 2023, the Company issued
The following is a summary of the Company’s warrant derivative liability at April 30, 2026:
| Warrant derivative liability at October 31, 2025 | $ | |||
| Foreign currency translation adjustment | ||||
| Change in fair value of warrant derivative liability | ||||
| Warrant derivative liability at April 30, 2026 | $ | |||
The fair value of the warrants issued in the $CDN
NOTE 14 – FINANCIAL INSTRUMENTS
All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when they are incurred, unless they are directly attributable to the acquisition of financial assets or the assumption of liabilities carried at amortized cost, in which case the transaction costs adjust the carrying amount.
The three levels of the fair value hierarchy are as follows:
| Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
| Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and |
| Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, due from related party, accounts payable and warrant derivative liability.
| 15 |
The carrying amounts of cash and cash equivalents, accounts receivable, due from related party and accounts payable approximate fair value at April 30, 2026 and October 31, 2025 due to the short maturities of these financial instruments. There were no transfers between Levels 1, 2 and 3 during the six months ended April 30, 2026 and 2025.
Warrant Derivative liability
The Company accounts for its warrants as either equity or liabilities based upon the characteristics and provisions of each instrument. Warrants classified as derivative liabilities require separate accounting as liabilities are recorded on the Company’s consolidated balance sheets at their fair value on the date of issuance and will be revalued on each subsequent balance sheet date until such instruments are exercised or expire, with any changes in the fair value between reporting periods recorded as other income or expense. The Company has used the Black-Scholes pricing model to fair value the warrants (Note 13). Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility and may be adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend yield is expected to be none as the Company has not paid dividends nor does the Company anticipate paying any dividend in the foreseeable future.
The derivative is not traded in an active market, and the fair value is determined using valuation techniques. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the condensed interim consolidated statement of operations and comprehensive loss each reporting period. This is considered to be a Level 3 financial instrument.
The Company has the following liabilities under the fair value hierarchy measured at fair value on a recurring basis:
| April 30, 2026 | ||||||||||||
| Liability | Level 1 | Level 2 | Level 3 | |||||||||
| Warrant derivative liability | $ | $ | $ | |||||||||
| October 31, 2025 | ||||||||||||
| Liability | Level 1 | Level 2 | Level 3 | |||||||||
| Warrant derivative liability | $ | $ | $ | |||||||||
Credit Risk
Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has established policies to ensure liquidity of funds and ensure that counterparties demonstrate minimum acceptable credit worthiness.
The Company maintains its U.S. dollar and $CDN cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN
| 16 |
As at April 30, 2026 and October 31, 2025, cash and cash equivalents consist of guaranteed investment certificates of $
The Company also maintains cash in bank accounts in Mexico. These accounts are denominated in the local currency and are considered uninsured. As of April 30, 2026 and 2025, the U.S. dollar equivalent balance for these accounts was $
Other receivables, accounts receivable and due from related party comprise receivables from GST refunds, Bench Walk and a related party and proceeds from warrant exercises. Receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to impairment is not significant. At April 30, 2026 and October 31, 2025, none of the Company’s receivables are impaired. All receivables are normally settled between 30 to 90 days.
Liquidity Risk
Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they fall due. The Company’s approach to managing its liquidity risk is to ensure, as much as possible, that it will have sufficient liquid funds to meet its liabilities when due.
At April 30, 2026, the Company has $
Interest Rate Risk
The Company holds substantially all of its cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the six months ended April 30, 2026, a
Foreign Currency Exchange Risk
Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, $MXN or other currencies. As a result, currency exchange fluctuations may impact the costs of the Company’s operations. Specifically, the appreciation of the $MXN or $CDN against the U.S. dollar may result in an increase in operating expenses and capital costs in U.S. dollar terms. The Company currently does not engage in any currency hedging activities.
Based on the net exposures as at April 30, 2026, a
NOTE 15 – COMMITMENTS AND CONTINGENCIES
Compliance with Environmental Regulations
The Company’s exploration activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties, but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a project, and cause changes or delays in the Company’s activities.
Property Concessions in Mexico
To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.
| 17 |
Royalty
The Company has agreed to pay a
Litigation and Claims
Mineros Norteños Case
On May 20, 2014, Mineros Norteños filed an action in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin breached an agreement regarding the development of the Sierra Mojada Property. Mineros Norteños sought payment of the Royalty, including interest at a rate of
ICSID Arbitration
On March 2, 2023, the Company filed the NAFTA Notice of Intent (Note 4). As is required by Article 1118 of NAFTA, the Company sought to settle this dispute with Mexico through consultations. On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, but, notwithstanding the Company’s good faith efforts to resolve the dispute amicably, no settlement was reached. Accordingly, the Company filed a request for arbitration with the ICSID on June 28, 2023. On July 20, 2023, ICSID registered the request. On June 17, 2024, the Company filed its Memorial submission with the ICSID detailing the claim against Mexico as well as damages for the sum of $
On May 29, 2026, the ICSID tribunal rendered its final award dismissing the Claim on the basis that it did not have jurisdiction and/or was time-barred and ordered the Company to pay a portion of Mexico’s legal costs totaling approximately US$
To support the legacy NAFTA claim, the Company engaged an arbitration consultant, who, upon a successful arbitration ruling, is to receive an arbitration fee amounting to
As succeeding in collecting any amount is unlikely, the Company has not accrued any amounts in the condensed interim consolidated financial statements with respect to this claim.
| 18 |
Valdez Case
On February 15, 2016, Messrs. Jaime Valdez Farias and Maria Asuncion Perez Alonso (collectively, “Valdez”) filed an action before the Local First Civil Court of Torreon, State of Coahuila, Mexico (“Civil Court”), against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin had breached an agreement regarding the development of the Sierra Mojada Property. Valdez sought payment in the amount of $
Due to this recent ruling, continued consultation with the legal counsel and the continued inability to access the property, the Company recorded a litigation accrual of $
General
From time to time, the Company is involved in other disputes, claims, proceedings and legal actions arising in the ordinary course of business. The Company intends to vigorously defend all claims against the Company and pursue its full legal rights in cases where the Company has been harmed. Although the ultimate outcome of these proceedings cannot be accurately predicted due to the inherent uncertainty of litigation, in the opinion of management, based upon current information, no other currently pending or overtly threatened proceeding is expected to have a material adverse effect on the Company’s business, financial condition or results of operations.
Arbitration Financing
On September 5, 2023, the Company entered into the LFA with Bench Walk (Note 5). Under the terms of the LFA, Bench Walk agreed to fund the Company with up to $
The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim Proceeds of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus
As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the Claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing (refer to Note 5).
| 19 |
Management Retention Agreement and Salaries
The Company established a Management Retention Agreement (the “MRA”), which is a long-term incentive program to retain key personnel of the Company who have important historical information and knowledge to contribute with respect to the Arbitration. The MRA provides that if the Company is successful and the Company receives damages proceeds,
Additionally, management of the Company has agreed to defer a portion of its salaries, as well as an annual bonuses granted, with the deferred amounts only being paid in the event that the Company is successful in its Arbitration proceedings and the Company having sufficient funds to pay the deferred amounts after discharging amounts owed to priority creditors, such as Bench Walk. Deferred amounts owed to management will accrue interest at a rate of
As the outcome of the Arbitration was not determinable as at April 30, 2026, no expense was recorded in relation to the above.
NOTE 16 – SEGMENT INFORMATION
The Company operates in a reportable segment: the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico.
Geographic information is approximately as follows:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| April 30, | April 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Mexico | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Canada | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Kazakhstan | ( | ) | ( | ) | ( | ) | ||||||||||
| Net Loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
The following table details the allocation of assets included in the accompanying balance sheet at April 30, 2026:
| Canada | Mexico | Total | ||||||||||
| Cash and cash equivalents | $ | $ | $ | |||||||||
| Restricted cash | ||||||||||||
| Other receivables | ||||||||||||
| Accounts receivables | ||||||||||||
| Prepaid expenses and deposits | ||||||||||||
| Due from related party | ||||||||||||
| Value-added tax receivable, net | ||||||||||||
| Office and mining equipment, net | ||||||||||||
| $ | $ | $ | ||||||||||
The following table details the allocation of assets included in the accompanying balance sheet at October 31, 2025:
| Canada | Mexico | Total | ||||||||||
| Cash and cash equivalents | $ | $ | $ | |||||||||
| Restricted cash | ||||||||||||
| Other receivables | ||||||||||||
| Accounts receivables | ||||||||||||
| Prepaid expenses and deposits | ||||||||||||
| Due from related party | ||||||||||||
| Value-added tax receivable, net | ||||||||||||
| Office and mining equipment, net | ||||||||||||
| $ | $ | $ | ||||||||||
| 20 |
The Company has significant assets in Coahuila, Mexico. Although Mexico is generally considered economically stable, unanticipated events in Mexico, such as the blockade, can, and may in the future, disrupt the Company’s operations. The Mexican government does not require foreign entities to maintain cash reserves in Mexico.
The following table details the allocation of exploration and property holding costs for the exploration properties:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| April 30, | April 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Exploration and property holding costs for the period | ||||||||||||||||
| Mexico | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Kazakhstan | ( | ) | ( | ) | ( | ) | ||||||||||
| $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
NOTE 17 – SUBSEQUENT EVENTS
On May 1, 2026, the Company received a payment of $
On May 29, 2026, the ICSID tribunal issued its final award in ICSID Case No. ARB/23/24, dismissing the Company’s Claim on the basis that it lacked jurisdiction and/or that the claim was time-barred and ordered the Company to pay a portion of Mexico’s legal costs totaling approximately US$
On June 3, 2026,
Following the unfavorable award issued by the ICSID tribunal, Bench Walk terminated the Funding Agreement, and the Company wrote off the related account balance of $
| 21 |
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
When using the terms “Silver Bull,” or the “Company,” management is referring to Silver Bull Resources, Inc. and its subsidiaries, unless the context otherwise requires. Management has included technical terms important to an understanding of the Company’s business under “Glossary of Common Terms” in its Annual Report on Form 10-K for the fiscal year ended October 31, 2025.
Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the U.S. Private Securities Litigation Reform Act of 1995, and “forward-looking information” within the meaning of applicable Canadian securities legislation. Management uses words such as “anticipate,” “continue,” “likely,” “estimate,” “expect,” “may,” “will,” “projection,” “should,” “believe,” “potential,” “could,” or similar words suggesting future outcomes (including negative and grammatical variations) to identify forward-looking statements. Forward-looking statements include statements the Company makes regarding:
- The sufficiency of existing cash resources to enable the Company to continue operations for the next 12 months as a going concern;
- The prospects of the claim process, or award, under the North American Free Trade Agreement (“NAFTA”);
- The Funding Agreement (as defined in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section), and continued payment of legal, tribunal and external expert costs, and reimbursement of corporate operating expenses, under its terms;
- Prospects of entering the development or production stage with respect to any of the Company’s projects;
- The possible impact on the Company’s operations of the blockade by a cooperative of miners on the Sierra Mojada property;
- The potential acquisition of additional mineral properties or property concessions;
- The impact of changes to current state or federal laws and regulations on estimated capital expenditures, the economics of a particular project and/or the Company’s activities;
- The Company’s ability to raise additional capital and/or pursue additional strategic options, and the potential impact on its business, financial condition and results of operations of doing so or not;
- The impact of changing foreign currency exchange rates on the Company’s financial condition;
- The impairment of concession and likelihood of further impairment of other long-lived assets;
- Whether using major financial institutions with high credit ratings mitigates credit risk;
- The impact of changing economic conditions on interest rates;
- The planned activities at the Sierra Mojada Project in 2026 and beyond;
- Whether any part of the Sierra Mojada Project will ever be confirmed or converted into SEC S-K 1300-compliant mineral reserves;
- The ability to obtain and hold additional concessions in the Sierra Mojada Project area;
- Whether the Company will be required to obtain additional surface rights if a mining operation is determined to be feasible;
- Testing of the impact of the fine bubble flotation test work on the recovery of minerals and initial rough concentrate grade;
- The requirement of additional power supplies for the Sierra Mojada Project if a mining operation is determined to be feasible;
- Expectations regarding future recovery of value-added taxes (“VAT”) paid in Mexico; and
- The merits of any claims in connection with, and the expected timing of any, ongoing legal proceedings.
| 22 |
These statements are based on certain assumptions and analyses made by us in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, and the actual results could differ from those expressed or implied in these forward-looking statements as a result of the factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, including without limitation, risks associated with the following:
- The ability of the Company to obtain additional financial resources on acceptable terms to (i) maintain its property concessions in Mexico and (ii) maintain general and administrative expenditures at acceptable levels;
- The Company’s ability to acquire additional mineral properties or property concessions;
- The ability of the Company to maintain its assets in Mexico given the performance of the Mexican government at various levels;
- Worldwide economic and political events affecting (i) the market prices for silver, zinc, lead, copper and other minerals that may be found on the Company’s exploration properties (ii) interest rates and (iii) foreign currency exchange rates;
- The amount and nature of future capital and exploration expenditures;
- Volatility in the Company’s stock price;
- The Company’s inability to obtain required permits;
- Competitive factors, including exploration-related competition;
- Timing of receipt and maintenance of government approvals;
- Unanticipated title issues;
- Changes in tax laws;
- Changes in regulatory frameworks or regulations affecting the Company’s activities;
- The ability to obtain additional financial resources on acceptable terms to (i) maintain its property concessions in Mexico and (ii) maintain general and administrative expenditures at acceptable levels;
- The Company’s ability to retain key management, consultants and experts necessary to successfully operate and grow its business; and
- Political and economic instability in Mexico and other countries in which the Company conducts its business, and future potential actions of the governments in such countries with respect to nationalization of natural resources or other changes in mining or taxation policies.
These factors are not intended to represent a complete list of the general or specific factors that could affect the Company.
| 23 |
All forward-looking statements speak only as of the date made. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements. Except as required by law, management undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Readers should not place undue reliance on these forward-looking statements.
Cautionary Note Regarding Exploration Stage Companies
Silver Bull is an exploration stage company and does not currently have any known reserves and cannot be expected to have reserves unless and until a feasibility study is completed for the Sierra Mojada concessions that shows proven and probable reserves. There can be no assurance that these concessions contain proven and probable reserves, and investors may lose their entire investment. See the sections titled “Risk Factors” in this Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.
Business Overview
Silver Bull, incorporated in Nevada, is an exploration stage company, engaged in the business of mineral exploration, and its primary objective is to define sufficient mineral reserves on the Sierra Mojada Property to justify the development of a mechanized mining operation. The Company conducts its operations in Mexico through its wholly owned Mexican subsidiaries, Minera Metalin S.A. de C.V. (“Minera Metalin”) and Minas de Coahuila SBR S.A. de C.V. On August 26, 2021, the wholly owned Mexican subsidiary, Contratistas de Sierra Mojada S.A. de C.V. merged with and into Minera Metalin. As noted above, the Company has not established any reserves at the Sierra Mojada Property, and it is in the exploration stage, and may never enter the development or production stage.
On April 23, 2023, Nomad Minerals Ltd. (“Nomad Minerals"), a wholly owned subsidiary of the Company, was incorporated in British Columbia, Canada. On April 28, 2023, Nomad Metals Limited was incorporated at Astana International Financial Centre in Astana, Republic of Kazakhstan, as a wholly owned subsidiary of Nomad Minerals.
On June 28, 2023, the Company filed a request for arbitration (the “Arbitration”) before the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) against the United Mexican States (“Mexico”) under the United States-Mexico-Canada Agreement (the “USMCA”) and NAFTA, (together with the USMCA, the “Treaties”). Since the arbitration request, the Arbitration has become the Company’s core focus. The Arbitration seeks compensation for the losses resulting from the Mexican State’s wrongful conduct and its breaches of the Treaties’ protections, including expropriation, breach of the fair and equitable treatment standard, discrimination, and other unlawful treatment in respect of the Sierra Mojada Property. On June 17, 2024, the Company filed its Memorial submission with ICSID detailing the claim against Mexico, and its Claimant’s Reply was filed on April 25, 2025. The reply responded to Mexico’s Counter Memorial, and revised the damages estimate to the sum of $315 million, plus pre-award interest accruing from the valuation date, June 30, 2020. The Arbitration hearing was held in Washington, D.C. in October 2025, and the Company submitted its post-hearing brief to the tribunal on November 21, 2025 and its costs on December 5, 2025. On May 29, 2026, the ICSID tribunal rendered its final award dismissing the Claim concluding that it did not have jurisdiction and/or was time-barred to hear the Company’s Claim (ICSID Case No. ARB/23/24). The Company is currently assessing the decision to determine whether there are grounds for annulment. The Company has 120 days from the date of the ruling to register for annulment, and the proceeding would be anticipated to take approximately 18 to 36 months from the date of registration. The Company is also evaluating its strategic options following the dismissal, including seeking resolution of the ongoing blockade and/or identifying other exploration projects for potential development and investment.
Silver Bull’s principal office is located at 999 West Hastings Street, Suite 1508, Vancouver, BC, Canada V6C 2W2, and the telephone number is 604-687-5800.
Properties Concessions and Outlook
Sierra Mojada Property
The focus of the Company for the 2026 calendar year will be to continue with the Arbitration process. If the Arbitration proceedings are resolved in favour of the Company, the Company would be unlikely to pursue the development of Sierra Mojada Property. If the blockade is resolved without a favourable ruling in the Arbitration, any continued exploration of the Sierra Mojada Property ultimately may require the Company to raise additional capital, identify other sources of funding or identify a strategic partner, or other strategic alternatives. The Company is also continuing to investigate other exploration projects for potential development and investment.
| 24 |
Results of Operations
Three Months Ended April 30, 2026 and 2025
For the three months ended April 30, 2026, the Company recorded a net loss of $1,117,000, or approximately $0.02 per share, compared to a net loss of $70,000, or approximately $nil per share, during the comparable period last year. The $1,047,000 increase in net loss was primarily due to a $1,041,000 increase in other expenses and an $11,000 increase in administrative expenses, which was offset by a $7,000 decrease in exploration and property holding costs in the same period last year as described below.
Exploration and Property Holding Costs
Exploration and property holding costs decreased by $7,000 to $3,000 for the three months ended April 30, 2026, compared to $10,000 for the comparable period last year. This decrease was mainly due to a $7,000 decrease in exploration and property holding costs in the three months ended April 30, 2026 due to the reduced activities at Sierra Mojada Property. During the three months ended April 30, 2026, the Company recorded a contra expense of $29,000 in exploration and property holding costs compared to $31,000 in the same period last year, which is comprised of funds from the litigation funding agreement entered into on September 5, 2023, with Bench Walk, a third party that specializes in funding litigation and arbitration claims (the “Funding Agreement” or the “LFA”)
General and Administrative Expenses
The Company recorded $23,000 general and administrative expenses in the three months ended April 30, 2026 compared to $12,000 general and administrative expenses in the same period last year as described below.
Stock-based compensation was a factor in the fluctuations in general and administrative expenses. The Company recorded $nil in stock-based compensation included in general and administrative expense for the three months ended April 30, 2026 compared to $7,000 in stock-based compensation for the comparable period last year as a result of stock options that were granted and vested to employees, directors and consultants. There were no options granted during the three months ended April 30, 2026 and 2025.
Personnel costs of $66,000 in the three months ended April 30, 2026 were similar to the $65,000 in such costs in the same period last year.
Office and administrative costs of $62,000 in the three months ended April 30, 2026 were similar to the $64,000 in such costs in the same period last year.
Professional fees increased by $2,000 to $23,000 for the three months ended April 30, 2026 compared to $21,000 for the comparable period last year. This increase was mainly due to increases in accounting fees and arbitration-related costs, which were offset by a $3,000 decrease in legal fees compared to the same period last year.
Directors’ fees decreased by $3,000 to $21,000 for the three months ended April 30, 2026 as compared to $24,000 for the comparable period last year. This decrease was primarily due to a $3,000 decrease in stock-based compensation compared to the same period last year.
The Company recorded a $3,000 provision for uncollectible VAT for the three months ended April 30, 2026 as compared to a $2,000 provision for uncollectible VAT in the comparable period last year. The allowance for uncollectible VAT was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.
During the three months ended April 30, 2026, the Company recorded a contra expense of $152,000 in general and administrative expenses compared to $165,000 in the same period last year, which is comprised of funds from the Funding Agreement. Bench Walk is funding the Company’s legal, tribunal and external expert costs and defined corporate operating expenses. This is a non-recourse agreement, and the Company has no obligation to repay any funds received under the agreement. In the event of a favorable outcome, Bench Walk would recover disbursed funding as part of its investment return.
| 25 |
During the three months ended April 30, 2026, the Arbitration lawyers incurred $nil in legal costs compared to $494,000 in the same period last year all of which was paid by Bench Walk directly.
Other (Expenses) Income
The Company recorded other expenses of $1,090,000 for the three months ended April 30, 2026 as compared to other expenses of $49,000 for the comparable period last year. The significant factor contributing to other expenses in the three months ended April 30, 2026 was a $1,048,000 expense from the change in fair value of the warrant derivative liability due to an increase in the fair value of warrants with a $CDN exercise price from January 31, 2026 to April 30, 2026 and a $50,000 foreign currency transaction expense. This was offset by $7,000 of interest income. The significant factor contributing to other expenses in the three months ended April 30, 2025 was a $37,000 expense from the change in fair value of the warrant derivative liability due to an increase in the fair value of warrants with a $CDN exercise price from January 31, 2025 to April 30, 2025 and a $15,000 foreign currency transaction expense, which was offset by $3,000 in interest income.
Six Months Ended April 30, 2026 and April 30, 2025
For the six months ended April 30, 2026, the Company had a net loss of $1,237,000, or approximately $0.03 per share, compared to a net loss of $173,000, or approximately $nil per share, during the comparable period last year. The $1,064,000 increase in net loss was primarily due to a $1,114,000 increase in other expenses, which was offset by a $4,000 decrease in exploration and property holding costs.
Exploration and Property Holding Costs
Exploration and property holding costs decreased by $4,000 to $78,000 for the six months ended April 30, 2026, compared to $82,000 for the comparable period last year. This decrease was mainly due to a $4,000 decrease in depreciation costs. During the six months ended April 30, 2026, the Company recorded a contra expense of $68,000 in exploration and property holding costs compared to $68,000 in the same period last year, which is comprised of funds from the Funding Agreement.
General and Administrative Expenses
General and administrative expenses increased by $1,000 to $44,000 in the six months ended April 30, 2026 from $43,000 in the same period last year as described below.
Stock-based compensation was a factor in the fluctuations in general and administrative expenses. The Company recorded $4,000 in stock-based compensation included in general and administrative expense for the six months ended April 30, 2026 compared to $21,000 for the comparable period last year as a result of stock options that were granted and vested to employees, directors and consultants in the six months ended April 30, 2025.
Personnel costs of $132,000 in the six months ended April 30, 2026 were similar to the $131,000 in such costs in the same period last year.
Office and administrative costs increased $6,000 to $107,000 for the six months ended April 30, 2026 as compared to $101,000 for the comparable period last year. This increase was primarily due to increased travel costs and listing costs.
Professional fees increased $31,000 to $95,000 for the six months ended April 30, 2026 compared to $64,000 for the comparable period last year. This increase was mainly due to an increase in accounting and legal costs.
Directors’ fees decreased $8,000 to $44,000 for the six months ended April 30, 2026 as compared to $52,000 for the comparable period last year. This decrease was primarily due to a $7,000 decrease in stock-based compensation compared to the same period last year.
The Company recorded a $5,000 provision for uncollectible VAT for the six months ended April 30, 2026 as compared to a $4,000 provision for uncollectible VAT in the comparable period last year. The allowance for uncollectible taxes was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.
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During the six months ended April 30, 2026, the Company recorded a contra expense of $339,000 in the general and administrative expenses compared to $309,000 in the same period last year, which is comprised of funds from the Funding Agreement. Bench Walk is funding the Company’s legal, tribunal and external expert costs and defined corporate operating expenses. This is a non-recourse agreement, and the Company has no obligation to repay any funds received under the agreement. In the event of a favorable outcome, Bench Walk would recover disbursed funding as part of its investment return.
During the six months ended April 30, 2026, the Arbitration lawyers incurred $192,000 in legal costs compared to $1,347,000 in the same period last year all of which were paid by Bench Walk directly.
Other (Expenses) Income
The Company recorded other expenses of $1,114,000 for the six months ended April 30, 2026 as compared to other expenses of $45,000 for the comparable period last year. The significant factor contributing to other expenses in the six months ended April 30, 2026 was a $1,118,000 expense from the change in fair value of the warrant derivative liability due to an increase in the fair value of warrants with a $CDN exercise price from October 31, 2025 to April 30, 2026 and a $10,000 foreign currency transaction expense, which was offset by $15,000 in interest income. The significant factor contributing to other expenses in the six months ended April 30, 2025 was a $44,000 expense from the change in fair value of the warrant derivative liability due to an increase in the fair value of warrants with a $CDN exercise price from October 31, 2024 to April 30, 2025 and a $8,000 foreign currency transaction expense, which was offset by $7,000 in interest income.
Material Changes in Financial Condition; Liquidity and Capital Resources
Funding Agreement
As noted above, pursuant to the Funding Agreement, Bench Walk is paying up to an aggregate of $9.5 million to fund legal costs and other expenses incurred by the Company in connection with the Claim, including an amount for reasonably incurred day-to-day operating expenses of the Company. During the six months ended April 30, 2026, the Company received funding of $200,000 as reimbursement of corporate operating costs incurred.
The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus 30% of the Claim Proceeds).
Cash Flows
During the six months ended April 30, 2026, cash and cash equivalents were primarily utilized to fund the exploration activities and general and administrative expenses. As a result of the exploration activities and general and administrative expenses, cash and cash equivalents decreased from $1,136,000 at October 31, 2025 to $918,000 at April 30, 2026.
Cash flows used in operating activities for the six months ended April 30, 2026 were $206,000. Cash flows provided by operating activities for the six months ended April 30, 2025 were $177,000. This increase in cash used was mainly due to the timing of certain payments and the timing of the collection of accounts receivable.
Cash flows used by investing activities for the six months ended April 30, 2026 and 2025 were $nil.
Cash flows used in financing activities for the six months ended April 30, 2026 were $8,000, which was due to the payment of expenses relating to the warrant exercises in the 2025 fiscal year. Cash flows provided by financing activities for the six months ended April 30, 2025 were net proceeds of $6,000 from the exercise of 21,500 warrants at an exercise price of $0.59 per share, net of $0.25 per share paid to Arras.
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Capital Resources
As of April 30, 2026, the Company had cash and cash equivalents of $918,000 and working capital deficiency of $6,283,000, excluding the warrant derivative liability, as compared to cash and cash equivalents of $1,136,000 and working capital deficiency of $6,202,000, excluding the warrant derivative liability as of October 31, 2025. The decrease in liquidity and working capital were primarily the result of increased accounts receivable and increased general and administrative expenses, which was offset by increased payable and accrued liabilities during the six months ended April 30, 2026.
Since the Company’s inception in November 1993, it has not generated revenue and has incurred an accumulated deficit of $153,153,000. Accordingly, the Company has not generated cash flows from operations, and since inception has relied primarily upon proceeds from private placements and registered direct offerings of its equity securities, warrant exercises, the sale of investments and funding from Bench Walk and South32 as the primary sources of financing to fund operations.
Despite the arbitration finance in place, based on the Company’s constrained cash and cash equivalents, and history of losses, there exists a certain level of uncertainty regarding the Company’s ability to sustain its operation over the next 12 months as a going concern. While the Company entered into a Funding Agreement aimed at covering arbitration legal costs and certain other costs, supplemental fundraising will be essential to meet more extensive operational demands. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing, and the exercising of warrants by warrantholders. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these plans.
Any future additional financing in the near term will likely be in the form of the issuance of equity securities, which would result in dilution to Silver Bull’s existing stockholders. Moreover, the Company may incur significant fees and expenses in the pursuit of a financing or other strategic transaction, which will increase the rate at which its cash and cash equivalents are depleted.
Capital Requirements and Liquidity; Need for Additional Funding
The Company’s management and board of directors monitor overall costs, expenses, and financial resources and, if necessary, will adjust planned operational expenditures in an attempt to ensure that the Company has sufficient operating capital. Management continues to evaluate the Company’s costs and planned expenditures, including for the Sierra Mojada Property, as discussed below.
The aforementioned Arbitration process has required the Company to incur significant expense and devote significant resources.
If the blockade is resolved, and exploration of the Sierra Mojada project is restarted, the Company will require significant amounts of additional capital. As of June 11, 2026, the Company had approximately $1.0 million in cash and cash equivalents. The continued exploration of the Sierra Mojada Property ultimately would require the Company to raise additional capital, identify other sources of funding, identify a strategic partner or other strategic alternatives.
The Company will continue to evaluate its ability to obtain additional financial resources, and will attempt to reduce or limit expenditures on the Sierra Mojada Property as well as general and administrative costs if it is determined that additional financial resources are unavailable or available on terms that it determines are unacceptable. However, it may not be possible to reduce costs, and even if the Company is successful in reducing costs, it still may not be able to continue operations for the next 12 months as a going concern. Debt or equity financing may not be available on acceptable terms, if at all. Equity financing, if available, may result in substantial dilution to existing stockholders. If the Company is unable to fund future operations by way of financings, including public or private offerings of equity or debt securities, its business, financial condition and results of operations will be adversely impacted.
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Critical Accounting Policies
The critical accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025 filed with the SEC on January 28, 2026.
Other recent accounting pronouncements issued by the Financial Accounting Standards Board (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future consolidated financial statements.
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
Not applicable.
| ITEM 4. | CONTROLS AND PROCEDURES. |
| (a) | Evaluation of Disclosure Controls and Procedures. |
Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management has carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of April 30, 2026. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of April 30, 2026.
The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
| (b) | Changes in Internal Control over Financial Reporting |
During the quarter ended April 30, 2026, there have not been any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II – OTHER INFORMATION
| ITEM 1. | LEGAL PROCEEDINGS. |
See Note 15– Commitments and Contingencies to the Company’s condensed interim consolidated financial statements (Part I, Item 1 of this Quarterly Report on Form 10-Q) for information regarding legal proceedings in which it is involved.
| ITEM 1A. | RISK FACTORS. |
There have been no material changes from the risk factors included in the Company’s Annual Report on Form 10-K for the year ended October 31, 2025.
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Recent Sales of Unregistered Securities
No sales of unregistered equity securities occurred during the period covered by this report.
Purchases of Equity Securities by the Company and Affiliated Purchasers
No purchases of equity securities were made by or on behalf of Silver Bull or any “affiliated purchaser” within the meaning of Rule 10b-18 under the Exchange Act during the period covered by this report.
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| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
None.
| ITEM 4. | MINE SAFETY DISCLOSURES. |
Not applicable.
| ITEM 5. | OTHER INFORMATION. |
During the fiscal quarter ended April 30, 2026, none of the Company’s directors or executive officers
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| ITEM 6. | EXHIBITS. |
| X | Filed herewith | |||||||
| XX | Furnished herewith
|
| * | The following financial information from Silver Bull Resources, Inc.’s Quarterly Report on Form 10-Q for the six months ended April 30, 2026, is formatted as Inline XBRL (Extensible Business Reporting Language): Condensed Interim Consolidated Balance Sheets, Condensed Interim Consolidated Statements of Operations and Comprehensive Loss, Interim Condensed Consolidated Statements of Stockholders’ Equity, Interim Condensed Consolidated Statements of Cash Flows. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SILVER BULL RESOURCES, INC. | ||
| Dated: June 11, 2026 | By: | /s/ Timothy Barry |
| Timothy Barry | ||
| President and Chief Executive Officer | ||
(Principal Executive Officer)
| ||
| Dated: June 11, 2026 | By: | /s/ Christopher Richards |
| Christopher Richards | ||
| Chief Financial Officer | ||
| (Principal Financial Officer and Principal Accounting Officer) | ||
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ATTACHMENTS / EXHIBITS
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