SVBL Silver Bull Resources Inc (QB)

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

Commission File Number: 001-33125

SILVER BULL RESOURCES, INC.

(Exact name of registrant as specified in its charter)

777 Dunsmuir Street, Suite 1605

Vancouver, B.C., Canada V7Y 1K4

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (604)-687-5800

Securities registered pursuant to Section 12(b) of the Act: None

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.

Yes ☒ No ☐

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).

Yes ☒ No ☐

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.

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 13, 2024, there were 47,365,652 shares of the registrant’s $0.01 par value common stock outstanding, the registrant’s only outstanding class of voting securities.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

TABLE OF CONTENTS

[The balance of this page has been intentionally left blank.]

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED BALANCE SHEETS

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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, 2023.

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 the Company’s existing cash resources to enable it 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;
• Plans at the Sierra Mojada Project in 2024 and beyond;
• Whether any part of the Sierra Mojada Project will ever be confirmed or converted into “proven or probable mineral reserves” as defined under Item 1300 of Regulation S-K;
• The requirement of additional power supplies for the Sierra Mojada Project if a mining operation is determined to be feasible;
• The Company’s ability to obtain and hold additional concessions in the Sierra Mojada Project areas;
• Whether the Company will be required to obtain additional surface rights if a mining operation is determined to be feasible;
• 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;
• Testing of the impact of the fine bubble flotation test work on the recovery of minerals and initial rough concentrate grade;
• The impact of recent accounting pronouncements on financial position, results of operations or cash flows and disclosures;
• The impact of changes to current state or federal laws and regulations on estimated capital expenditures, the economics of a particular project and/or activities;

• The Company’s ability to raise additional capital and/or pursue additional strategic options, and the potential impact on the 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 concessions 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;
• 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.

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, 2023, including without limitation, risks associated with the following:

• 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 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, including those described in PART II, ITEM 1A RISK FACTORS;
• 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 our activities;
• The Company’s ability to retain key management, consultants and experts necessary to successfully operate and grow the 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.

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, 2023.

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. If successful in the Arbitration, the Company will take appropriate steps to enforce and recover such an arbitral award (“Award”). The execution and enforcement of an Award may present material challenges and take a number of years.

Silver Bull’s principal office is located at 777 Dunsmuir Street, Suite 1605 Vancouver, BC, Canada V7Y 1K4, and the telephone number is 604-687-5800. 

Properties Concessions and Outlook

Sierra Mojada Property

The focus of the Company for the 2024 calendar year is continuing with the Arbitration process. If the blockade and the Arbitration proceedings are resolved, 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 seek out other exploration projects for potential development and investment.

Results of Operations

Three Months Ended April 30, 2024 and April 30, 2023

For the three months ended April 30, 2024, the Company recorded a net loss of $19,000, or approximately $nil per share, compared to a net loss of $478,000, or approximately $0.01 per share, during the comparable period last year. The $459,000 decrease in net loss was primarily due to a $17,000 decrease in exploration and property holding costs and a $391,000 decrease in administrative expenses, which was partially offset by a $37,000 in other income compared to a $16,000 in other expenses in the same period last year as described below.

Exploration and Property Holding Costs

Exploration and property holding costs decreased $17,000 to $25,000 for the three months ended April 30, 2024, compared to $42,000 for the comparable period last year. This decrease was mainly due to a $31,000 reimbursement from Bench Walk pursuant to the litigation Funding Agreement in the three months ended April 30, 2024 and a $16,000 concessions’ impairment in the same period last year, of which was offset by a $17,000 increased in property holding costs. As the Funding Agreement was entered into in September 2023, there is no comparable amount in the same period last year.

General and Administrative Expenses

General and administrative expenses decreased by $391,000 to $30,000 in the three months ended April 30, 2024 from $421,000 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 $18,000 in stock-based compensation included in general and administrative expense for the three months ended April 30, 2024 compared to $4,000 in stock-based compensation recovery for the comparable period last year as a result of stock options were granted and vested to employees, directors and consultants.

Personnel costs decreased $29,000 to $78,000 for the three months ended April 30, 2024 as compared to $107,000 for the comparable period last year. This decrease was mainly due to a $nil bonus recorded in the three months ended April 30, 2024 compared to $68,000 bonus in the same period last year. The decrease was offset by a $17,000 increase in salaries due to revised agreements with the Company’s management in September 2023 and a $18,000 increase in stock-based compensation compared to the same period last year.

Office and administrative expenses of $62,000 for the three months ended April 30, 2024 was similar to the $66,000 in such costs for the comparable period last year.

Professional fees decreased $168,000 to $51,000 for the three months ended April 30, 2024 compared to $219,000 for the comparable period last year. This decrease was mainly due to arbitration related costs incurred in relation to the legacy NAFTA claim (as described in the “Recent Developments” section) in the same period last year, of which was offset by a $16,000 increase in legal costs.

Directors’ fees of $30,000 for the three months ended April 30, 2024 was similar to the $26,000 in such costs for the comparable period last year.

The Company recorded a $10,000 recovery of uncollectible VAT for the three months ended April 30, 2024 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, 2024, the Company recorded a contra expense of $181,000 in the general and administrative expenses which is comprised of funds from the Litigation Funding Agreement. Bench Walk is funding the Company’s legal, tribunal and external expert costs and defined corporate operating expenses. This is a nonrecourse 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 their investment return. As the Funding Agreement was entered into in September 2023, there is no comparable amount in the same period last year.

During the three months ended April 30, 2024, the Arbitration lawyers incurred $430,784 in legal costs, all of which were paid by Bench Walk directly.

Other Income (Expenses)

The Company recorded other income of $37,000 for the three months ended April 30, 2024 as compared to other expenses of $16,000 for the comparable period last year. The significant factor contributing to other income in the three months ended April 30, 2024 was $18,000 interest income and $16,000 gain from sale of equipment. The significant factor contributing to other expenses was $19,000 other costs related to the certain years’ VAT and corporate taxes disputes with Mexican tax authorities for the three months ended April 30, 2023.

Six Months Ended April 30, 2024 and April 30, 2023

For the six months ended April 30, 2024, the Company had a net loss of $212,000, or approximately $nil per share, compared to a net loss of $824,000, or approximately $0.02 per share, during the comparable period last year. The $612,000 decrease in net loss was primarily due to a $113,000 decrease in exploration and property holding costs, a $513,000 decrease in administrative expenses and a $6,000 decrease in other expenses as described below. .

Exploration and Property Holding Costs

Exploration and property holding costs decreased $113,000 to $85,000 for the six months ended April 30, 2024, compared to $178,000 for the comparable period last year. This decrease was mainly due to a $107,000 reimbursement from Bench Walk pursuant to the litigation Funding Agreement in the six months ended April 30, 2024 and a $16,000 concessions’ impairment in the same period last year. As the Funding Agreement was entered into in September 2023, there is no comparable amount in the same period last year.

General and Administrative Expenses

General and administrative expenses decreased by $513,000 to $120,000 in the six months ended April 30, 2024 from $633,000 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 $78,000 in stock-based compensation included in general and administrative expense for the six months ended April 30, 2024 compared to $49,000 for the comparable period last year as a result of stock options were granted and vested to employees, directors and consultants in the six months ended April 30, 2024.

Personnel costs decreased $19,000 to $177,000 for the six months ended April 30, 2024 as compared to $196,000 for the comparable period last year. This decrease was mainly due to a $nil bonus recorded in the six months ended April 30, 2024 compared to $68,000 bonus in the same period last year. The decrease was offset by a $26,000 increase in salaries due to revised agreements with the Company’s management in September 2023, a $6,000 increase in accrued vacation and a $13,000 increase in stock-based compensation compared to the same period last year.

Office and administrative costs increased $25,000 to $125,000 for the six months ended April 30, 2024 as compared to $100,000 for the comparable period last year. This increase was primarily due to increased travel costs.

Professional fees decreased $145,000 to $121,000 for the six months ended April 30, 2024 compared to $266,000 for the comparable period last year. This decrease was mainly due to arbitration related costs incurred in relation to the legacy NAFTA claim (as described in the “Recent Developments” section) in the same period last year, of which was offset by a $19,000 increase in legal costs and a $9,000 increase in accounting costs.

Directors’ fees increased $16,000 to $76,000 for the six months ended April 30, 2024 as compared to $60,000 for the comparable period last year. This increase was primarily due to a $16,000 increase in stock-based compensation compared to the same period last year.

The Company recorded a $4,000 recovery of uncollectible VAT for the six months ended April 30, 2024 as compared to a $10,000 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.

During the six months ended April 30, 2024, the Company recorded a contra expense of $376,000 in the general and administrative expenses which is comprised of funds from the Litigation Funding Agreement. Bench Walk is funding the Company’s legal, tribunal and external expert costs and defined corporate operating expenses. This is a nonrecourse 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 their investment return. As the Funding Agreement was entered into in September 2023, there is no comparable amount in the same period last year.

During the six months ended April 30, 2024, the Arbitration lawyers incurred $636,040 in legal costs, all of which were paid by Bench Walk directly.

Other Expenses

Other expenses of $6,000 were incurred for the six months ended April 30, 2024 as compared to other expenses of $12,000 for the comparable period last year. The significant factor contributing to other expenses in the six months ended April 30, 2024 was a $66,000 expense from change in fair value of the warrant derivative liability, which was offset by $21,000 interest income, a $9,000 foreign currency transaction income and a $31,000 in miscellaneous income on partial forgiveness of the Company’s Canada Emergency Business Account (“CEBA”) loan and a gain from sale of equipment, respectively. The $66,000 expense from change in fair value of the warrant derivative liability was due to an increase in the fair value of warrants with a $CDN exercise price from October 31, 2023 to April 30, 2024. The significant factor contributing to other expenses for the comparable period last year was a $19,000 other costs related to the certain years’ VAT and corporate taxes disputes with Mexican tax authorities, which was offset by a $13,000 interest income.

Material Changes in Financial Condition; Liquidity and Capital Resources

Cash Flows

During the six months ended April 30, 2024, cash and cash equivalents were primarily utilized to fund general and administrative expenses. As a result of the general and administrative expenses, cash and cash equivalents decreased from $1,009,000 at October 31, 2023 to $448,000 at April 30, 2024.

Cash flows used in operating activities for the six months ended April 30, 2024 were $547,000, as compared to $389,000 for the comparable period in 2023. This increase was mainly due to the timing of certain payments and the timing of the accounts receivable collection.

Cash flows provided by investing activities for the six months ended April 30, 2024 were proceeds of $16,000 from the sale of equipment, which was offset by $1,000 purchase of equipment. Cash flows provided by investing activities for the six months ended April 30, 2023 were $nil.

Cash flows used by financing activities for the six months ended April 30, 2024 were $29,000 as the Company repaid the payable portion of the CEBA loan. Cash flows used by financing activities for the six months ended April 30, 2023 were $nil.

Capital Resources

As of April 30, 2024, the Company had cash and cash equivalents of $448,000, as compared to cash and cash equivalents of $1,009,000 as of October 31, 2023. The decrease in liquidity and working capital were primarily the result of the net repayment of accounts payable of $403,000, increased the accounts receivable and due from related party, general and administrative expenses and payments, which were partially offset by the Arbitration funding during the six months ended April 30, 2024.

Since the Company’s inception in November 1993, it has not generated revenue and has incurred an accumulated deficit of $138,857,000. 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 will result in dilution to Silver Bull’s existing shareholders. 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 will require the Company to incur significant expense and devote significant resources. The outcome of the Arbitration claim and the process for recovering funds, even if there is a successful outcome, can be lengthy and unpredictable.

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 13, 2024, the Company had approximately $0.4 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.

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, 2023 filed with the SEC on January 26, 2024.

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.

Not applicable.

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, 2024. 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, 2024.

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.

During the quarter ended April 30, 2024, 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

See Note 16 – Commitments and Contingencies to the Company’s financial statements (Part I, Item 1 of this Quarterly Report on Form 10-Q) for information regarding legal proceedings in which it is involved.

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, 2023.

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.

None.

Not applicable.

None

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.