10-Q: Patriot Gold Corp. Reports Strong Q2 2026 with Revenue Surge

Patriot Gold Corp. has transitioned from a net loss to a significant net income in Q2 2026, primarily driven by the resolution of royalty payment disputes and a substantial increase in revenue.

Summary

• Patriot Gold Corp. reported a net income of $1,284,517 for the three months ended June 30, 2026, a significant improvement from a net loss of ($574,930) in the same period of 2025. For the six months ended June 30, 2026, net income was $1,011,496, compared to a net loss of ($975,036) in the prior year.
• Revenue for the three and six months ended June 30, 2026, was $1,777,840, a substantial increase from $0 in the comparable periods of 2025, attributed to the resumption of royalty payments from the Moss Mine.
• Total assets increased to $981,663 as of June 30, 2026, with cash comprising $573,666, marketable securities $54,101, and royalty receivables $302,228.
• Total liabilities were $1,813,649 as of June 30, 2026, primarily consisting of accounts payable, accrued liabilities, and a convertible note payable to a related party.
• The company anticipates needing approximately $1,000,000 to fund operations for the next twelve months, including exploration, working capital, and administrative expenses.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development due to the significant increase in revenue and net income, driven by the resolution of royalty payment issues, despite ongoing operational costs and the need for potential future funding.

Positives

• Significant turnaround in financial performance, with net income of $1,284,517 for Q2 2026 compared to a net loss in Q2 2025.
• Substantial increase in revenue to $1,777,840 for Q2 2026, driven by the resolution of royalty payment issues related to the Moss Mine.
• Positive resolution of litigation with Golden Vertex regarding Moss Mine royalty payments, with royalties expected to continue.
• Cash position improved significantly, with cash and cash equivalents at $573,666 as of June 30, 2026, up from $57,294 at December 31, 2025.
• Decrease in general and administrative expenses by approximately $166,000 for the six-month period ended June 30, 2026, compared to the prior year, largely due to reduced legal fees.

Negatives

• Total liabilities of $1,813,649 as of June 30, 2026, exceed total assets of $981,663.
• The company anticipates needing additional funding of approximately $1,000,000 for the next twelve months, indicating potential future capital requirements.
• The company's ability to continue as a going concern is still subject to doubt, despite the resumption of royalty payments, due to the need to develop natural resource properties and achieve profitable operations.
• A significant portion of liabilities includes accounts payable and accrued liabilities related to parties ($605,272) and a convertible note payable to a related party ($950,446).

Risks

• The company's ability to continue as a going concern is dependent on its ability to develop its natural resource properties and achieve profitable operations.
• The company expects to need approximately $1,000,000 to fund operations during the next twelve months, and current cash and anticipated royalty revenue may not be sufficient.
• The company has no agreements in place to obtain funds through bank loans, lines of credit, or other sources, suggesting reliance on other means for future funding.
• The value of the Vanadium Oxide royalty interest is uncertain due to the lack of a defined timeline for production, and the asset has been fully impaired.

Future Outlook

The company anticipates needing approximately $1,000,000 to fund operations for the year ending December 31, 2026, covering exploration, working capital, and administrative expenses. Management estimates that current cash and anticipated royalty revenue may not be sufficient to fund planned operations for 2026, suggesting a potential need for additional funding.

Management Comments

• Management believes that all applicable estimates and adjustments are appropriate, but actual results could differ from those estimates.
• Management expects that the Company will need approximately $1,000,000 to fund its operations during the next twelve months.
• The Company is pleased the matter (Moss Mine royalty litigation) is resolved and is confident that the Moss Mine will continue to be a successful producer well into the future.
• Based on the evaluation of disclosure controls and procedures as of June 30, 2026, the Chief Executive Officer concluded that they were effective.
• Management strengthened internal controls regarding the information and communication of the expense obligations of the Company during the quarter.

Industry Context

StockSavvy.ai notes that the significant revenue increase and shift to profitability for Patriot Gold Corp. are directly tied to the resolution of a royalty dispute, a common occurrence in the natural resources sector where contractual obligations and production can lead to complex financial situations. The company's focus on exploration and development aligns with industry trends, but its reliance on a single major royalty stream highlights a concentration risk.

Comparison to Industry Standards

• The transition from a net loss to net income is a positive indicator, but the company's overall financial health (liabilities exceeding assets) and stated need for future funding suggest it is still in an early-stage or turnaround phase compared to more established, profitable mining companies.
• The resolution of the royalty dispute and subsequent revenue generation is a critical step, but the company's operational costs and exploration expenses need to be managed effectively to achieve sustainable profitability, a benchmark for mature mining operations.
• The company's reliance on a single significant royalty stream (Moss Mine) is a point of concern when compared to diversified mining companies that generate revenue from multiple projects and commodities.

Legal Proceedings

• Patriot Gold Corp. initiated litigation against Golden Vertex in April 2024 for outstanding royalty payments.
• Golden Vertex requested a stay of creditor claims under chapter 15 of the US Bankruptcy Code.
• On October 22, 2025, the Court granted Patriot's motions for partial summary judgment, confirming Patriot's real property interest in Moss Mine minerals and proceeds.
• On December 22, 2025, the Court granted Patriot's request for a preliminary injunction requiring Golden Vertex to provide monthly royalty calculations and segregate funds.
• Subsequent to June 30, 2026, a settlement agreement was reached with Golden Vertex regarding the Moss Mine royalty litigation, with the royalty remaining intact.

Related Party Transactions

• Accounts payable and accrued liabilities related to parties totaled $605,272 as of June 30, 2026.
• Convertible note payable to a related party had a carrying amount of $950,446 as of June 30, 2026.
• Mr. Trevor Newton, President, CFO, Secretary, Treasurer, and Director, provided consulting services, with fees of $0 for the six months ended June 30, 2026, and $46,500 for the six months ended June 30, 2025.
• Directors' fees totaled $105,000 for the six months ended June 30, 2026 and 2025.
• The company owns 2,760,260 shares of common stock of Strata Power Corp., a related party through Trevor Newton.
• In October 2025, the Board approved the issuance of 7,621,951 shares at $0.032 per share for $243,902 of services received from a related party.

Stakeholder Impact

• Shareholders benefit from the significant improvement in net income and the resolution of the royalty dispute, which should positively impact future valuations.
• Creditors and lenders may be concerned by the company's liabilities exceeding assets and the stated need for future funding.
• Employees and consultants may see increased stability due to improved financial performance, though the need for future funding could introduce uncertainty.

Next Steps

• Continue exploration and development of natural resource properties.
• Seek additional funding to support operations for the next twelve months.
• Effect the 1-for-10 reverse stock split, which is currently underway.
• Continue to monitor and manage royalty receivables and related party transactions.

Key Dates

Recommendation

The company has shown a significant improvement in financial results, driven by the resolution of a key legal dispute and a substantial increase in revenue. However, the company's liabilities still exceed its assets, and it anticipates needing substantial additional funding in the near future. While the positive operational shift is encouraging, the ongoing financial precariousness and reliance on future capital necessitate a cautious 'hold' stance until a more stable financial footing is established.

Keywords

Patriot Gold Corp, 10-Q, Moss Mine, Royalty, Nevada, Arizona, Exploration, Financial Statements