Atlas Lithium Corp (ATLX)

[AC7880]

Doing some research.

https://ih.advfn.com/stock-market/USOTC/brazil-minerals-inc-BMIX/stock-news/79956288/quarterly-report-10-q

https://ih.advfn.com/stock-market/USOTC/brazil-minerals-inc-BMIX/stock-news/79701359/annual-report-10-k

I am impressed by the level of detail in the quarter and especially annual report. Better details provided than most OTC stocks. Some points that stood out:

Seasonality:
Our ability to mine for diamonds and gold is highly seasonal. The local rainy season lasts from December through April during which time open sky mining is reduced or stopped depending on the severity of the rains and storms. We expect that during this period our revenues will be substantially lower than during other periods.

Employees and Independent Contractors
As of April 10, 2019, we had 8 full-time employees. We also retain consultants

Our ability to execute our business plan depends primarily on the continuation of a favorable mining environment in Brazil.
Mining operations in Brazil are heavily regulated. Any significant change in mining legislation or other changes in Brazil's current mining environment may slow down or alter our business prospects.

We may be unable to find sources of funding if and when needed, resulting in the failure of our business.

As of today, we need additional equity or debt financing beyond our existing cash to operate. This additional financing may not become available and, if available, may not be available on terms that are acceptable to us. If we do obtain acceptable funding, the terms and conditions of receiving such capital would likely result in further dilution. If we are not successful in raising capital or sufficient capital, we will have to modify our business plans and substantially reduce or eliminate operations, or as an extreme measure seek reorganization. In these events, the holders of our securities could lose a substantial part or all of their investment.

Our convertible debt securities outstanding may adversely affect the market price for our common stock.

To the extent that any remaining convertible debt securities are converted into our common stock, the existing stockholder percentage ownership will be diluted and any sales in the public market of the common stock underlying such options may adversely affect prevailing market prices for our common stock. A similar situation occurs if our outstanding options and warrants are exercised.

We may seek to raise additional funds, finance acquisitions or develop strategic relationships by issuing capital stock that would dilute your ownership.

We may largely finance our operations by issuing equity securities, which would materially reduce the percentage ownership of our existing stockholders. Furthermore, any newly issued securities could have rights, preferences, and privileges senior to those of our existing common stock. Moreover, any issuances by us of equity securities may be at or below the prevailing market price of our stock and in any event may have a dilutive impact on ownership interest of existing common stockholders, which could cause the market price of stock to decline. We may also raise additional funds through the incurrence of debt or the issuance or sale of other securities or instruments senior to our common shares. The holders of any debt securities or instruments we may issue could have rights superior to the rights of our common stockholders.

Results of Operations

Fiscal Year Ended December 31, 2018 Compared to Fiscal Year Ended December 31, 2017

In 2018, we had revenues of $19,716, as compared to revenues of $43,253 in 2017, a decrease of 54.4%. The decrease was primarily due to the fact that we mined a lesser number of months, and opted to wait for the licensing of a new high-quality area for production in 2019 and beyond.

Our consolidated cost of goods sold in 2018 was $126,217, comprised primarily of labor and fuel expenses, as well as machine maintenance. Our consolidated cost of goods sold in 2017 was $208,840. The decrease of 39.6% between 2018 and 2017 for the consolidated cost of goods sold is explained by lesser mining performed.

Our gross margin in 2018 was ($106,501). By comparison, our gross margin in 2017 was ($165,587). The increase of 35.7% between 2018 and 2017 for the gross margin is explained by lower cost of goods sold in 2018.

We had an aggregate of $1,052,830 in operating expense in 2018, as compared to an aggregate of $1,217,217 in operating expenses in 2017, a decrease of $164,387 or 13.5%. This decrease was mostly due to lower stock-based compensation costs, offset in part by an increase in general and administrative expenses.

In 2018, we had total other expenses of $689,341, as compared to $508,103 in total other expenses in 2017, an increase of $181,238 or 35.7%. This increase was mostly due to higher amortization of debt discounts and other fees, in addition to slightly higher interest expenses incurred on promissory notes.

In 2018, we experienced a net loss attributable to Brazil Minerals, Inc. of $1,666,200, as compared to a net loss attributable to Brazil Minerals, Inc. of $1,691,433 in 2017, a decrease of $25,233 or 1.5%. On a per share basis (both basic and diluted), the 2018 net loss attributable to Brazil Minerals, Inc. was $0.01 versus $0.02 in 2017.

Total 2018 assets: 987,357
Total 2018 liabilities: 2,261,987

Share Count
All share and per share amounts have been restated to give effect to a 1-for-500 reverse split of the Company's common stock which became effective on January 27, 2017.

As of December 31, 2018, if all holders of preferred stock, convertible notes payable, options and warrants exercised their right to convert their securities to common stock, the common stock issuable would be in excess of the Company's authorized, but unissued shares of common stock. The Company increased its authorized share count on March 15, 2018 to rectify such situation. (note: A issue once again July 14, 2019)

Still looking for the OS monthly average percentage increases.