Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 11, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33404 | |
Document Period End Date | Jun. 30, 2021 | |
Entity Registrant Name | WESTWATER RESOURCES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2212772 | |
Entity Address, Address Line One | 6950 S. Potomac Street, Suite 300 | |
Entity Address, City or Town | Centennial | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 531-0516 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | WWR | |
Security Exchange Name | NYSEAMER | |
Entity's Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,636,063 | |
Entity Central Index Key | 0000839470 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 119,138 | $ 50,315 |
Equity securities | 2,931 | 1,520 |
Prepaid and other current assets | 495 | 754 |
Total Current Assets | 122,564 | 52,589 |
Property, plant and equipment, at cost: | ||
Property, plant and equipment | 9,079 | 9,080 |
Less accumulated depreciation and depletion | (96) | (95) |
Net property, plant and equipment | 8,983 | 8,985 |
Operating lease right-of-use assets | 291 | 353 |
Restricted cash | 10 | |
Other long-term assets | 100 | |
Total Assets | 131,938 | 61,937 |
Current Liabilities: | ||
Accounts payable | 2,968 | 1,734 |
Accrued liabilities | 2,060 | 2,369 |
Operating lease liability - current | 151 | 149 |
Total Current Liabilities | 5,179 | 4,252 |
Operating lease liability, net of current | 150 | 214 |
Total Liabilities | 5,329 | 4,466 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Common stock, 100,000,000 shares authorized, $.001 par value; Issued shares - 33,536,476 and 19,172,020 respectively Outstanding shares - 33,536,315 and 19,171,859 respectively | 33 | 19 |
Paid-in capital | 461,717 | 383,723 |
Accumulated deficit | (334,883) | (326,013) |
Less: Treasury stock (161 shares), at cost | (258) | (258) |
Total Stockholders' Equity | 126,609 | 57,471 |
Total Liabilities and Stockholders' Equity | $ 131,938 | $ 61,937 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 33,536,476 | 19,172,020 |
Common stock, shares outstanding | 33,536,315 | 19,171,859 |
Treasury stock, shares | 161 | 161 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Expenses: | ||||
Product development expenses | $ (2,109) | $ (175) | $ (3,932) | $ (301) |
Exploration expenses | (384) | (6) | (529) | (6) |
General and administrative expenses | (2,198) | (1,226) | (4,282) | (2,588) |
Arbitration costs | (13) | (28) | (1,545) | (697) |
Depreciation and amortization | (1) | (2) | (2) | (4) |
Total operating expenses | (4,705) | (1,437) | (10,290) | (3,596) |
Non-Operating Income/(Expenses): | ||||
Unrealized investment gain | 1,218 | 1,411 | ||
Other income (expense) | 7 | 1 | 9 | (2) |
Total other income (expense) | 1,225 | 1 | 1,420 | (2) |
Net Loss from continuing operations | (3,480) | (1,436) | (8,870) | (3,598) |
Net Loss from discontinued operations | (1,031) | (2,156) | ||
Net Loss | $ (3,480) | $ (2,467) | $ (8,870) | $ (5,754) |
Other Comprehensive Income | ||||
LOSS PER SHARE FROM CONTINUING OPERATIONS | $ (0.11) | $ (0.25) | $ (0.29) | $ (0.74) |
LOSS PER SHARE FROM DISCONTINUED OPERATIONS | $ (0.18) | $ (0.44) | ||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 32,431,919 | 5,786,117 | 30,525,520 | 4,895,533 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL CASH FLOW - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities: | ||||
Net Loss | $ (3,480) | $ (2,467) | $ (8,870) | $ (5,754) |
Reconciliation of net loss to cash used in operations: | ||||
Non-cash lease expense | 2 | |||
Accretion of asset retirement obligations | 138 | |||
Costs incurred for restoration and reclamation activities | (167) | |||
Depreciation and amortization | 2 | 30 | ||
Stock compensation expense | 295 | 28 | ||
Unrealized (gain) on equity securities | (1,411) | |||
Gain on disposal of fixed assets | (21) | |||
Effect of changes in operating working capital items: | ||||
(Increase) in prepaids and other assets | (74) | (148) | ||
(Decrease)/Increase in payables and accrued liabilities | 925 | (173) | ||
Net Cash Used In Operating Activities | (9,133) | (6,065) | ||
Cash Flows From Investing Activities | ||||
Proceeds from PPP loan escrow | 333 | |||
Building deposit | (100) | |||
Capital expenditures | (87) | |||
Net Cash Provided By Investing Activities | 233 | (87) | ||
Cash Flows From Financing Activities: | ||||
Proceeds from note payable | 331 | |||
Net proceeds from common stock | 77,863 | 6,291 | ||
Payment of minimum withholding taxes on net share settlements of equity awards | (150) | |||
Net Cash Provided By Financing Activities | 77,713 | 6,622 | ||
Net increase in cash, cash equivalents and restricted cash | 68,813 | 470 | ||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 50,325 | 5,667 | ||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 119,138 | $ 6,137 | $ 119,138 | $ 6,137 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Common Stock | Paid-In Capital | Accumulated Deficit | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 3 | $ 319,758 | $ (302,439) | $ (258) | $ 17,064 |
Balance, shares at Dec. 31, 2019 | 3,339,541 | ||||
Net Loss | (5,754) | (5,754) | |||
Common stock issued, net of issuance costs | $ 4 | 6,287 | 6,291 | ||
Common stock issued, net of issuance costs (in shares) | 3,324,924 | ||||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes | 28 | 28 | |||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes (in shares) | 511 | ||||
Balance at Jun. 30, 2020 | $ 7 | 326,073 | (308,193) | (258) | 17,629 |
Balance, shares at Jun. 30, 2020 | 6,664,976 | ||||
Balance at Mar. 31, 2020 | $ 5 | 322,227 | (305,726) | (258) | 16,248 |
Balance, shares at Mar. 31, 2020 | 4,762,794 | ||||
Net Loss | (2,467) | (2,467) | |||
Common stock issued, net of issuance costs | $ 2 | 3,818 | 3,820 | ||
Common stock issued, net of issuance costs (in shares) | 1,902,182 | ||||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes | 28 | 28 | |||
Balance at Jun. 30, 2020 | $ 7 | 326,073 | (308,193) | (258) | 17,629 |
Balance, shares at Jun. 30, 2020 | 6,664,976 | ||||
Balance at Dec. 31, 2020 | $ 19 | 383,723 | (326,013) | (258) | 57,471 |
Balance, shares at Dec. 31, 2020 | 19,172,020 | ||||
Net Loss | (8,870) | (8,870) | |||
Common stock issued, net of issuance costs | $ 14 | 77,849 | 77,863 | ||
Common stock issued, net of issuance costs (in shares) | 14,307,270 | ||||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes | 295 | 295 | |||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes (in shares) | 57,186 | ||||
Minimum withholding taxes on net share settlements of equity awards | (150) | (150) | |||
Balance at Jun. 30, 2021 | $ 33 | 461,717 | (334,883) | (258) | 126,609 |
Balance, shares at Jun. 30, 2021 | 33,536,476 | ||||
Balance at Mar. 31, 2021 | $ 32 | 455,854 | (331,403) | (258) | 124,225 |
Balance, shares at Mar. 31, 2021 | 32,336,476 | ||||
Net Loss | (3,480) | (3,480) | |||
Common stock issued, net of issuance costs | $ 1 | 5,659 | 5,660 | ||
Common stock issued, net of issuance costs (in shares) | 1,200,000 | ||||
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes | 204 | 204 | |||
Balance at Jun. 30, 2021 | $ 33 | $ 461,717 | $ (334,883) | $ (258) | $ 126,609 |
Balance, shares at Jun. 30, 2021 | 33,536,476 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements for Westwater Resources, Inc. (the “Company,” “we,” “us,” “WWR” or “Westwater”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying statements should be read in conjunction with the audited financial statements included in Westwater Resources, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments (which are of a normal, recurring nature) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for any other period including the full year ending December 31, 2021. Significant Accounting Policies Our significant accounting policies are detailed in Note 1, Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 became effective for interim and annual periods beginning after December 15, 2020. The adoption of ASU 2019-12 did not result in a material impact to our condensed consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 will change how companies account for credit losses for most financial assets and certain other instruments. For trade receivables, loans and held-to-maturity debt securities, companies will be required to estimate lifetime expected credit losses and recognize an allowance against the related instruments. For available for sale debt securities, companies will be required to recognize an allowance for credit losses rather than reducing the carrying value of the asset. The adoption of this update, if applicable, will result in earlier recognition of losses and impairments. ASU 2016-13 will be effective for interim and annual periods beginning after December 15, 2022. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to ASC 326, Financial Instruments – Credit Losses.” ASU 2016-13 introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. ASU 2018-19 is the final version of Proposed Accounting Standards Update 2018-270, which has been deleted. Additionally, the amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. ASU 2018-19 will be effective for interim and annual periods beginning after December 15, 2022. The Company is currently evaluating ASU 2016-13 and ASU 2018-19 for the potential impact of adopting this guidance on its financial reporting. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows. As of June 30, (thousands of dollars) 2021 2020 Cash and cash equivalents $ 119,138 $ 2,330 Restricted cash - pledged deposits for performance bonds — 3,807 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 119,138 $ 6,137 The Company’s restricted cash on June 30, 2020, consisted of funds held in money market accounts and used as collateral for performance obligation bonds related to the future restoration and reclamation of the Company’s South Texas uranium properties. The performance obligation bonds were required for future restoration and reclamation obligations for the Company’s South Texas uranium properties. With the divestiture of the Company’s uranium subsidiaries, all performance obligations and related restricted cash was transferred to enCore Energy Corp. (“enCore”) as of December 31, 2020. The funds were not available for the payment of general corporate expenses and were excluded from cash and cash equivalents as of June 30, 2020. |
LIQUIDITY
LIQUIDITY | 6 Months Ended |
Jun. 30, 2021 | |
LIQUIDITY | |
LIQUIDITY | 2. LIQUIDITY The Company last recorded revenues from operations in 2009. Since 2009, the Company has relied on equity financings, debt financings and asset sales to fund its operations. The Company expects to rely on debt and equity financing to fund its operations for the foreseeable future. The Company will also continue its cost reduction initiatives to identify ways to reduce its cash expenditures. In 2016, the Company began to expand its business plan into acquisition and development of energy-related materials. First, in 2016 the Company obtained lithium mineral leases in Nevada and Utah as an exploration opportunity. Then, in 2018 the Company acquired Alabama Graphite Corp. and its Coosa Graphite Project in Alabama for the purpose of developing a commercial sized graphite mineral deposit and processing the flake graphite into advanced graphite products for use in batteries. In the third quarter of 2020, the Company executed the strategic decision to focus its resources on the graphite business in Alabama, discontinuing its investment in its lithium mineral properties and selling its uranium business, located in Texas and New Mexico, to enCore. As discussed in Note 3, the sale to enCore closed on December 31, 2020, and included the elimination of a $9.3 million bonding liability, the elimination of $5.2 million in asset retirement obligations, and the elimination of more than $4.0 million in annual expenditures related to reclamation and compliance costs. The Company received approximately $1.8 million of enCore common stock and retained royalty interests on the New Mexico uranium properties as consideration for the sale. The Company also retained its uranium interests in Turkey, which are subject to ongoing international arbitration proceedings, in which the Company is seeking damages. During the first six months of 2021, the Company focused on graphite process development activities including operation of a pilot program for processing flake graphite into battery-grade graphite products and the initiation of a Definitive Feasibility Study (“DFS”) on the Coosa Graphite Project. The data generated and experience gained from operating the pilot program are being used to inform the DFS and will also inform the requirements and specifications for building a commercial graphite processing facility. On June 30, 2021, the Company’s cash balance was approximately $119.1 million. During the six months ended June 30, 2021, the Company sold 9.3 million shares of common stock for net proceeds of $47.3 million pursuant to its Controlled Equity Offering SM common stock registered for sale under the ATM Offering Agreement and has 10,800,000 of common stock available for future sales pursuant to the Lincoln Park December 2020 PA. Management believes the Company’s current cash balance is sufficient to fund its planned non-discretionary expenditures through 2022. The Company is evaluating the continued use of the Cantor and Lincoln Park financing facilities to support construction of the commercial graphite processing facility. While the Company has been successful in the past in raising funds through equity and debt financings as well as through the sale of non-core assets, no assurance can be given that additional financing will be available in amounts sufficient to meet its needs, or on terms acceptable to the Company. Stock price volatility and uncertain economic conditions caused by the COVID-19 pandemic and the recent emergence of variant strains of the virus could significantly impact the Company’s ability to raise funds through equity financing. Market conditions, including but not limited to, inflation, labor shortages and supply change disruptions could adversely impact the planned cost of the Company’s commercial graphite processing facility. Along with evaluating the continued use of the Cantor and Lincoln Park financing facilities, the Company may consider project financing to fund the construction of the commercial graphite processing facility. In the event funds are not available for project financing to complete construction of the commercial graphite processing facility in 2022, the Company expects to be able to fund its non-discretionary expenditures, however, the Company may be required to change its planned business development strategies. |
ACQUISITIONS AND DISPOSALS
ACQUISITIONS AND DISPOSALS | 6 Months Ended |
Jun. 30, 2021 | |
ACQUISITIONS AND DISPOSALS. | |
ACQUISITIONS AND DISPOSALS | 3. ACQUISITIONS AND DISPOSALS Sale of Uranium Business to enCore Energy On December 31, 2020, Westwater, and its wholly owned subsidiary URI Neutron Holdings II, Inc. (“Neutron Holdings”), entered into a securities purchase agreement with enCore (the “Purchase Agreement”) to sell their subsidiaries engaged in the uranium business in Texas and New Mexico (the “Uranium Subsidiaries”) to enCore. The transaction closed December 31, 2020. At the closing of the transaction, enCore delivered $0.7 million in cash and issued $1.8 million worth of its common shares to Westwater, and Westwater and Neutron Holdings transferred all of the equity interests in the Uranium Subsidiaries to enCore along with a database relating to the Grants Mineral Belt located in New Mexico. In addition, enCore delivered to Westwater a 2% net smelter return royalty (“NSR Royalty”) on production from the uranium properties held by Uranco, Inc. in New Mexico, and a 2.5% net profits interest (“NPI”) in the profits from operations of Neutron Energy, Inc.’s Juan Tafoya and Cebolleta Projects. Pursuant to the terms of the Purchase Agreement, enCore has also agreed to replace the indemnification obligations of Westwater for certain reclamation surety bonds held in the name of URI, Inc., and Westwater transferred to enCore all rights to $3.8 million in cash collateral held to secure such indemnity obligations. Also, at closing, in accordance with the terms of the Side Letter executed by the parties to the Purchase Agreement, Westwater delivered $0.3 million in cash to enCore, which amount was to be delivered in escrow upon the request of the lender, Celtic Bank, under the loan made to URI, Inc. in May 2020 pursuant to the Small Business Administration (“SBA”) Paycheck Protection Program (the “PPP Loan”). The escrowed amount was to be released to Westwater upon, and subject to, forgiveness of the PPP Loan under the terms of the CARES Act. The PPP Loan forgiveness application was filed on January 25, 2021, and Westwater received a notification from the SBA on March 31, 2021 that 100% of the loan had been forgiven. As a result, on March 31, 2021, the escrowed funds were returned to Westwater. The divestiture of the uranium business was accounted for as an asset disposal and the non-cash consideration received from enCore was recorded at fair value. In accordance with the terms of the Purchase Agreement, non-cash consideration included the receipt of shares of enCore common stock valued in the amount of $1.8 million. The number of shares issued at closing was 2,571,598. The number of shares was determined by a pricing formula based on the volume weighted average price (“VWAP”) of enCore’s common shares for the ten Finally, due to the high degree of uncertainties surrounding future mine development and uranium prices, as well as limited marketability, the Company determined the fair value of the NSR Royalty and NPI to be of nil value. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL INSTRUMENTS | |
FINANCIAL INSTRUMENTS | 4. FINANCIAL INSTRUMENTS Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and establishes a fair-value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority): ● Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are observable at the measurement date. ● Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). ● Level 3 includes unobservable inputs that reflect management’s assessment about what factors market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including internal data. The Company believes that the fair value of its assets and liabilities approximates their reported carrying amounts. The following table presents information about assets that were recorded at fair value on a recurring and non-recurring basis as of June 30, 2021, and December 31, 2020, and indicates the fair value hierarchy. June 30, 2021 (thousands of dollars) Level 1 Level 2 Level 3 Total Current Assets Equity securities $ 2,931 $ — $ — $ 2,931 Total current assets recorded at fair value $ 2,931 $ — $ — $ 2,931 December 31, 2020 (thousands of dollars) Level 1 Level 2 Level 3 Total Current Assets Equity securities $ — $ — $ 1,520 $ 1,520 Total current assets recorded at fair value $ — $ — $ 1,520 $ 1,520 Non-current Assets Restricted cash $ 10 $ — — $ 10 Total non-current assets recorded at fair value $ 10 $ — $ — $ 10 Assets that are measured on a recurring basis include the Company’s marketable securities and restricted cash. Equity securities on the balance sheet at December 31, 2020, and June 30, 2021, consist solely of shares of common stock received as partial consideration for the sale of uranium assets to enCore (see Note 3). Further, the sale of the enCore shares was restricted and resulted in the Company applying a discount for the lack of marketability prior to May 1, 2021. As of June 30, 2021, the restrictions on the sale of enCore stock have expired and the shares are currently available for sale. The fair value of the securities now reflects the unadjusted market price of enCore shares as of June 30, 2021. With the lifting of restrictions and no anticipated lack of marketability, the measurement in equity securities is now considered a Level 1 input. The Company recognized a $1.4 million increase in the fair value of the equity securities in net income for the six-month period ended June 30, 2021. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT. | |
PROPERTY, PLANT AND EQUIPMENT | 5. PROPERTY, PLANT AND EQUIPMENT Net Book Value of Property, Plant and Equipment at June 30, 2021 (thousands of dollars) Alabama Corporate Total Mineral rights and properties 8,972 — 8,972 Other property, plant and equipment — 11 11 Total $ 8,972 $ 11 $ 8,983 Net Book Value of Property, Plant and Equipment at December 31, 2020 (thousands of dollars) Alabama Corporate Total Mineral rights and properties 8,972 — 8,972 Other property, plant and equipment — 13 13 Total $ 8,972 $ 13 $ 8,985 Impairment of Property, Plant and Equipment The Company reviews and evaluates its long-lived assets for impairment on an annual basis or more frequently when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. For the six months ended June 30, 2021, no events or changes in circumstance are believed to have impacted recoverability of the Company’s long-lived assets. Accordingly, it was determined that no interim impairment was necessary. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 6. DISCONTINUED OPERATIONS In the third quarter of 2020, the Company executed the strategic decision to focus its resources on its graphite business, as further discussed above, and discontinue its investment in its lithium business. On December 31, 2020, the Company entered into a Purchase Agreement pursuant to which it agreed to sell its subsidiaries engaged in the Uranium Subsidiaries to enCore. The transaction closed on December 31, 2020. The Company’s lithium business included mineral leases and water rights in Nevada and Utah. The Company elected not to renew the annual lease rentals on the mineral properties, which also voids the water rights. In accordance with ASC 205-20 – “Discontinued Operations,” The results of the Company’s uranium and lithium business segments included in discontinued operations for the three and six months ended June 30, 2020, were as follows: For the Three Months Ended For the Six Months Ended (thousands of dollars) June 30, 2020 June 30, 2020 Mineral property expenses $ (570) $ (1,172) General and administrative expenses (433) (850) Accretion of asset retirement obligations (32) (138) Depreciation and amortization (15) (26) Other income (expense) 19 30 Net Loss from Discontinued Operations $ (1,031) $ (2,156) Our cash flow information for the six months ended June 30, 2020, included the following activities related to discontinued operations: For the Six Months Ended (thousands of dollars) June 20, 2020 Depreciation and amortization $ 26 Capital Expenditures (87) Accretion of asset retirement obligations 138 |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK. | |
COMMON STOCK | 7. COMMON STOCK Common Stock Issued, Net of Issuance Costs December 2020 Purchase Agreement with Lincoln Park Capital Fund, LLC On December 4, 2020, the Company entered into a Purchase Agreement with Lincoln Park (the “December 2020 PA”) to place up to $100.0 million in the aggregate of the Company's common stock on an ongoing basis when required by the Company over a term of 36 months. The Company controls the timing and amount of any sales to Lincoln Park, and Lincoln Park is obligated to make purchases in accordance with the December 2020 PA. Any common stock that is sold to Lincoln Park will occur at a purchase price that is based on an agreed upon fixed discount to the Company's prevailing market prices at the time of each sale and with no upper limits to the price Lincoln Park may pay to purchase common stock. The agreement may be terminated by the Company at any time, in its sole discretion, without any additional cost or penalty. The December 2020 PA specifically provides that the Company may not issue or sell any shares of its common stock under the agreement if such issuance or sale would breach any applicable rules of the NYSE American Stock Exchange (“NYSE American”). In particular, NYSE American General Rule 713(a) provides that the Company may not issue or sell more than 19.99% of the number of shares of the Company’s common stock that were outstanding immediately prior to the execution of the December 2020 PA unless (i) shareholder approval is obtained or (ii) the average price of all applicable sales of common stock to Lincoln Park under the December 2020 PA, equals or exceeds $6.15. The Company held its 2021 Annual Shareholders Meeting on May 21, 2021 and obtained shareholder approval for the issuance of more than 19.99% of the shares of the Company’s common stock outstanding. Lincoln Park has no right to require the Company to sell any shares of common stock to Lincoln Park, but Lincoln Park is obligated to make purchases as the Company directs, subject to certain conditions. In all instances, the Company may not sell shares of its common stock to Lincoln Park under the December 2020 PA if it would result in Lincoln Park beneficially owning more than 9.99% of its common stock at any one point in time. During the three and six months ended June 30, 2021, pursuant to the December 2020 PA with Lincoln Park, the Company sold 1.2 million and 5.0 million shares of common stock respectively, for net proceeds of $5.7 million and $30.6 million, respectively. These shares were sold pursuant to a Form S-3 registration statement filed pursuant to Rule 424(b)(3) and declared effective by the Securities and Exchange Commission on December 4, 2020. ATM Offering Agreement with Cantor On April 14, 2017, the Company entered into a Controlled Equity Offering SM During the six months ended June 30, 2021, the Company sold 9.3 million shares of common stock for net proceeds of $47.3 million pursuant to the ATM Offering Agreement with Cantor. These shares were sold pursuant to a prospectus supplement filed on December 4, 2020, pursuant to Rule 424(b)(5) as a takedown off the Company’s shelf registration statement which had been declared effective by the Securities and Exchange Commission on December 1, 2020. The Company did not sell any shares of common stock pursuant to the ATM Offering Agreement for the three months ended June 30, 2021. As of June 30, 2021, the Company has no shares of common stock registered for sale under the ATM Offering Agreement. Warrants The following table summarizes warrants outstanding and changes for the six-month periods ending June 30, 2021, and 2020: June 30, 2021 June 30, 2020 Number of Number of Warrants Warrants Warrants outstanding at beginning of period — 197,622 Issued — — Expired — (11,440) Warrants outstanding at end of period — 186,182 On October 6, 2020, a warrant holder of 182,515 warrants provided notice of exercise. The warrant holder elected the cashless exercise method to convert the warrants to shares of common stock. Based on the cashless exercise formula, the Company issued the warrant holder 118,799 shares of common stock. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | 8. STOCK-BASED COMPENSATION Stock-based compensation awards consist of stock options, restricted stock units and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan”) and the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”). Upon approval of the 2013 Plan by the Company’s stockholders on June 4, 2013, the Company’s authority to grant new awards under all plans other than the 2013 Plan was terminated. On July 18, 2017, April 18, 2019, April 28, 2020, and May 21, 2021, the Company’s stockholders approved amendments to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 20,000 shares, 66,000, 350,000, and 1,500,000 shares, respectively, and in 2017 re-approved the material terms of the performance goals under the plan. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to eligible persons. Equity awards under the 2013 Plan are granted from time to time at the discretion of the Compensation Committee of the Board (the “Committee”), with vesting periods and other terms as determined by the Committee with a maximum term of 10 years. The 2013 Plan is administered by the Committee, which can delegate the administration to the Board, other Committees or to such other officers and employees of the Company as designated by the Committee and permitted by the 2013 Plan. As of June 30, 2021, 1,279,774 shares were available for future issuances under the 2013 Plan. For the three and six months ended June 30, 2021, the Company recorded stock-based compensation expense of $0.2 million and $0.3 million, respectively. Stock compensation expense is recorded in general and administrative expenses. In addition to the plans above, upon closing of the Company’s acquisition of Alabama Graphite in April 2018, the Company issued 50,168 replacement options and warrants to the option and warrant holders of Alabama Graphite. The number of replacement options and warrants was determined using the arrangement exchange rate of 0.0016. The exercise prices for the option and warrant shares were first converted for the exchange rate of 0.0016 and then converted to USD using the exchange rate on December 13, 2017, of 0.77809 (CAD to USD). The options and warrant shares were issued with the same terms and conditions as were applicable prior to the acquisition of Alabama Graphite. As of June 30, 2021, all replacement options and warrants had expired. Stock Options The following tables summarize stock options outstanding and changes for the six-month periods ending June 30, 2021, and 2020: June 30, 2021 June 30, 2020 Weighted Weighted Number of Average Number of Average Stock Exercise Stock Exercise Options Price Options Price Stock options outstanding at beginning of period 185,054 $ 7.99 37,786 $ 37.42 Granted 94,522 3.91 125,804 1.59 Expired (2,000) 73.54 (1,693) 101.64 Stock options outstanding at end of period 277,576 $ 6.18 161,897 $ 8.91 Stock options exercisable at end of period 183,054 $ 7.35 36,093 $ 34.41 The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2021: Outstanding Stock Options Exercisable Stock Options Number of Weighted Number of Weighted Outstanding Average Stock Options Average Stock Option Plan Stock Options Exercise Price Exercisable Exercise Price 2004 Plan 92 $ 1,638.00 92 $ 1,638.00 2004 Directors’ Plan 3 10,380.00 3 10,380.00 2013 Plan 277,481 5.67 182,959 6.29 277,576 $ 6.18 183,054 $ 7.35 Restricted Stock Units Time-based and performance-based RSUs are valued using the closing share price of the Company’s common stock on the date of grant. The final number of shares issued under performance-based RSUs is generally based on the Company’s prior year performance as determined by the Compensation Committee of the Board of Directors at each vesting date, and the valuation of such awards assumes full satisfaction of all performance criteria. The following tables summarizes RSU activity for the six-month periods ended June 30, 2021, and 2020: June 30, June 30, 2021 2020 Weighted- Weighted- Average Average Number of Grant Date Number of Grant Date RSUs Fair Value RSUs Fair Value Unvested RSUs at beginning of period 236,403 $ 2.10 — $ — Granted 184,290 4.13 211,497 2.03 Forfeited — — — — Vested (78,801) 2.10 — — Unvested RSUs at end of period 341,892 $ 3.08 211,497 $ 2.03 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 9. EARNINGS PER SHARE Basic and diluted loss per common share have been calculated based on the weighted-average shares outstanding during the period. Additionally, potentially dilutive shares of 619,468 were excluded from the calculation of earnings per share because the effect on the basic income per share would be anti-dilutive for the six months ended June 30, 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Future operations on the Company’s properties are subject to federal and state regulations for the protection of the environment, including water quality. The Company evaluates the status of current environmental laws and their potential impact on current operating costs and accrual for future costs. The Company believes its operations are materially compliant with current environmental regulations. At any given time, the Company may enter into negotiations to settle outstanding legal proceedings and any resulting accruals will be estimated based on the relevant facts and circumstances applicable at that time. We do not expect that such settlements will, individually or in the aggregate, have a material effect on our financial position, results of operations or cash flows. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | 11. LEASES The Company’s lease portfolio consists of operating leases for corporate offices, storage space and equipment. The leases have remaining lease terms of 1.3 years to 2.1 years, one of which includes an option to extend The Company is party to several leases that are for under one year in length. These include leases for land used in exploration and mining activities, office equipment, machinery, office space, storage and other. The Company has elected the short-term lease exemptions allowed under the new leasing standards, whereby leases with initial terms of one year or less are not capitalized and instead expensed on a straight-line basis over the lease term. In addition, the Company holds several leases related to mineral exploration and production to which it has not applied the new leasing standard. Leases to explore or use minerals and similar nonregenerative resources are specifically excluded by ASC 842-10. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities were recognized at the commencement date of the lease based on the present value of lease payments over the lease term using a discount rate of 9.5%. This rate is the Company’s estimated incremental borrowing rate at the lease commencement date. The components of lease expense are as follows: For the Six Months Ended June 30, (thousands of dollars) 2021 2020 Operating lease cost $ 77 $ 81 Supplemental cash flow information related to the Company’s operating leases is as follows: For the Six Months Ended June 30, (thousands of dollars) 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 77 $ 79 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 291 $ 424 Supplemental balance sheet information related to the Company’s operating leases is as follows: June 30, December 31, (thousands of dollars, except lease term and discount rate) 2021 2020 Operating Leases Operating lease right-of-use assets $ 291 $ 353 Current portion of lease liabilities $ 151 $ 149 Operating lease liabilities – long term portion 150 214 Total operating lease liabilities $ 301 $ 363 Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows: For the Three Months Ended June 30, 2021 2020 Weighted Average Remaining Lease Term (in years) 2.0 3.2 Discount Rate 9.5 % 9.5 % Maturities of lease liabilities for the Company’s operating leases are as follows: Lease payments by year June 30, (In thousands) 2021 2021 (remainder of year) $ 79 2022 158 2023 92 Total lease payments 329 Less imputed interest (28) Total $ 301 As of June 30, 2021, the Company has $0.3 million in right-of-use assets and $0.3 million in related lease liabilities ($0.2 million of which is current). The most significant operating lease is for the Company’s corporate office in Centennial, Colorado, with $0.3 million remaining in undiscounted cash payments through the end of the lease term in 2023. The total undiscounted cash payments remaining on operating leases through the end of their respective terms is $0.3 million. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 became effective for interim and annual periods beginning after December 15, 2020. The adoption of ASU 2019-12 did not result in a material impact to our condensed consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 will change how companies account for credit losses for most financial assets and certain other instruments. For trade receivables, loans and held-to-maturity debt securities, companies will be required to estimate lifetime expected credit losses and recognize an allowance against the related instruments. For available for sale debt securities, companies will be required to recognize an allowance for credit losses rather than reducing the carrying value of the asset. The adoption of this update, if applicable, will result in earlier recognition of losses and impairments. ASU 2016-13 will be effective for interim and annual periods beginning after December 15, 2022. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to ASC 326, Financial Instruments – Credit Losses.” ASU 2016-13 introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. ASU 2018-19 is the final version of Proposed Accounting Standards Update 2018-270, which has been deleted. Additionally, the amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. ASU 2018-19 will be effective for interim and annual periods beginning after December 15, 2022. The Company is currently evaluating ASU 2016-13 and ASU 2018-19 for the potential impact of adopting this guidance on its financial reporting. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the statement of cash flows. As of June 30, (thousands of dollars) 2021 2020 Cash and cash equivalents $ 119,138 $ 2,330 Restricted cash - pledged deposits for performance bonds — 3,807 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 119,138 $ 6,137 The Company’s restricted cash on June 30, 2020, consisted of funds held in money market accounts and used as collateral for performance obligation bonds related to the future restoration and reclamation of the Company’s South Texas uranium properties. The performance obligation bonds were required for future restoration and reclamation obligations for the Company’s South Texas uranium properties. With the divestiture of the Company’s uranium subsidiaries, all performance obligations and related restricted cash was transferred to enCore Energy Corp. (“enCore”) as of December 31, 2020. The funds were not available for the payment of general corporate expenses and were excluded from cash and cash equivalents as of June 30, 2020. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
Schedule of Cash, Cash Equivalents and Restricted Cash | As of June 30, (thousands of dollars) 2021 2020 Cash and cash equivalents $ 119,138 $ 2,330 Restricted cash - pledged deposits for performance bonds — 3,807 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 119,138 $ 6,137 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FINANCIAL INSTRUMENTS | |
Schedule of Fair Value on Recurring and Non-recurring Basis | June 30, 2021 (thousands of dollars) Level 1 Level 2 Level 3 Total Current Assets Equity securities $ 2,931 $ — $ — $ 2,931 Total current assets recorded at fair value $ 2,931 $ — $ — $ 2,931 December 31, 2020 (thousands of dollars) Level 1 Level 2 Level 3 Total Current Assets Equity securities $ — $ — $ 1,520 $ 1,520 Total current assets recorded at fair value $ — $ — $ 1,520 $ 1,520 Non-current Assets Restricted cash $ 10 $ — — $ 10 Total non-current assets recorded at fair value $ 10 $ — $ — $ 10 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PROPERTY, PLANT AND EQUIPMENT. | |
Net Book Value of Property, Plant and Equipment | Net Book Value of Property, Plant and Equipment at June 30, 2021 (thousands of dollars) Alabama Corporate Total Mineral rights and properties 8,972 — 8,972 Other property, plant and equipment — 11 11 Total $ 8,972 $ 11 $ 8,983 Net Book Value of Property, Plant and Equipment at December 31, 2020 (thousands of dollars) Alabama Corporate Total Mineral rights and properties 8,972 — 8,972 Other property, plant and equipment — 13 13 Total $ 8,972 $ 13 $ 8,985 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DISCONTINUED OPERATIONS | |
Schedule of Discontinued Operations | The results of the Company’s uranium and lithium business segments included in discontinued operations for the three and six months ended June 30, 2020, were as follows: For the Three Months Ended For the Six Months Ended (thousands of dollars) June 30, 2020 June 30, 2020 Mineral property expenses $ (570) $ (1,172) General and administrative expenses (433) (850) Accretion of asset retirement obligations (32) (138) Depreciation and amortization (15) (26) Other income (expense) 19 30 Net Loss from Discontinued Operations $ (1,031) $ (2,156) Our cash flow information for the six months ended June 30, 2020, included the following activities related to discontinued operations: For the Six Months Ended (thousands of dollars) June 20, 2020 Depreciation and amortization $ 26 Capital Expenditures (87) Accretion of asset retirement obligations 138 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK. | |
Warrants Outstanding | June 30, 2021 June 30, 2020 Number of Number of Warrants Warrants Warrants outstanding at beginning of period — 197,622 Issued — — Expired — (11,440) Warrants outstanding at end of period — 186,182 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
STOCK BASED COMPENSATION | |
Summary of Stock Options Outstanding | June 30, 2021 June 30, 2020 Weighted Weighted Number of Average Number of Average Stock Exercise Stock Exercise Options Price Options Price Stock options outstanding at beginning of period 185,054 $ 7.99 37,786 $ 37.42 Granted 94,522 3.91 125,804 1.59 Expired (2,000) 73.54 (1,693) 101.64 Stock options outstanding at end of period 277,576 $ 6.18 161,897 $ 8.91 Stock options exercisable at end of period 183,054 $ 7.35 36,093 $ 34.41 |
Summary of Stock Options Outstanding and Exercisable by Stock Option Plan | Outstanding Stock Options Exercisable Stock Options Number of Weighted Number of Weighted Outstanding Average Stock Options Average Stock Option Plan Stock Options Exercise Price Exercisable Exercise Price 2004 Plan 92 $ 1,638.00 92 $ 1,638.00 2004 Directors’ Plan 3 10,380.00 3 10,380.00 2013 Plan 277,481 5.67 182,959 6.29 277,576 $ 6.18 183,054 $ 7.35 |
Summary of RSU Activity | June 30, June 30, 2021 2020 Weighted- Weighted- Average Average Number of Grant Date Number of Grant Date RSUs Fair Value RSUs Fair Value Unvested RSUs at beginning of period 236,403 $ 2.10 — $ — Granted 184,290 4.13 211,497 2.03 Forfeited — — — — Vested (78,801) 2.10 — — Unvested RSUs at end of period 341,892 $ 3.08 211,497 $ 2.03 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Components of lease expense | For the Six Months Ended June 30, (thousands of dollars) 2021 2020 Operating lease cost $ 77 $ 81 |
Schedule of Supplemental Cash Flow Information Related to Leases | For the Six Months Ended June 30, (thousands of dollars) 2021 2020 Cash paid for amounts included in lease liabilities: Operating cash flows from operating leases $ 77 $ 79 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 291 $ 424 |
Schedule of Supplemental Balance Sheet Information Relating to Leases | June 30, December 31, (thousands of dollars, except lease term and discount rate) 2021 2020 Operating Leases Operating lease right-of-use assets $ 291 $ 353 Current portion of lease liabilities $ 151 $ 149 Operating lease liabilities – long term portion 150 214 Total operating lease liabilities $ 301 $ 363 |
Schedule of Weighted-average Remaining Lease Term and Discount Rate for Operating Leases | For the Three Months Ended June 30, 2021 2020 Weighted Average Remaining Lease Term (in years) 2.0 3.2 Discount Rate 9.5 % 9.5 % |
Schedule of Maturities of Lease Liabilities for Operating Leases | Lease payments by year June 30, (In thousands) 2021 2021 (remainder of year) $ 79 2022 158 2023 92 Total lease payments 329 Less imputed interest (28) Total $ 301 |
BASIS OF PRESENTATION - Cash, C
BASIS OF PRESENTATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
BASIS OF PRESENTATION | |||
Cash and cash equivalents | $ 119,138 | $ 50,315 | $ 2,330 |
Restricted cash - pledged deposits for performance bonds | 3,807 | ||
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 119,138 | $ 6,137 |
LIQUIDITY (Details)
LIQUIDITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash balances | $ 119,138 | $ 119,138 | $ 2,330 | $ 50,315 |
Proceeds from issuance of common stock | $ 77,863 | $ 6,291 | ||
Registered share available for future sales | 0 | 0 | ||
Cantor | Controlled Equity Offering Sales Agreement | ||||
Number of common stock issued | 9,300,000 | |||
Proceeds from issuance of common stock | $ 47,300 | |||
Lincoln Park | December 2020 PA | ||||
Number of common stock issued | 1,200,000 | 5,000,000 | ||
Proceeds from issuance of common stock | $ 5,700 | $ 30,600 | ||
Registered share available for future sales | 10,800,000 | 10,800,000 | ||
enCore | ||||
Elimination of bonding liability | 9,300 | |||
Elimination of asset retirement obligations | 5,200 | |||
Annual expenditures related to reclamation and compliance costs | 4,000 | |||
Common stock received and royalty interest retained | $ 1,800 |
ACQUISITIONS AND DISPOSALS (Det
ACQUISITIONS AND DISPOSALS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Sale of Uranium Business to enCore Energy and Disposals | |
Fair value of the NSR Royalty and NPI | $ 0 |
Securities Purchase Agreement with Lincoln Park | Uranium business | |
Sale of Uranium Business to enCore Energy and Disposals | |
Consideration received | 700 |
Cash collateral held to secure such indemnity obligations | 3,800 |
Escrow deposit | $ 300 |
Expected loan forgiveness, percent | 100.00% |
Securities Purchase Agreement with Lincoln Park | Uranium business | NSR Royalty on production from the uranium properties held by Uranco, Inc. | |
Sale of Uranium Business to enCore Energy and Disposals | |
Percentage of net smelter return royalty | 2.00% |
Securities Purchase Agreement with Lincoln Park | Uranium business | NPI on the profits from operations of Neutron Energy, Inc.'s Juan Tafoya and Cebolleta Projects | |
Sale of Uranium Business to enCore Energy and Disposals | |
Percentage of net profits interest | 2.50% |
Common Stock | Securities Purchase Agreement with Lincoln Park | Uranium business | |
Sale of Uranium Business to enCore Energy and Disposals | |
Consideration received | $ 1,800 |
enCore | Securities Purchase Agreement with Lincoln Park | Uranium business | |
Sale of Uranium Business to enCore Energy and Disposals | |
Number of shares issued at closing | shares | 2,571,598 |
Pricing formula, number of trading days | 10 days |
Sale of stock price per share | $ / shares | $ 0.698 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Current Assets: | ||
Equity securities | $ 2,931 | $ 1,520 |
Total current assets recorded at fair value | 2,931 | $ 1,520 |
Non-current Assets | ||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:DisposalGroupIncludingDiscontinuedOperationAssetsNoncurrent | |
Restricted cash | $ 10 | |
Total non-current assets recorded at fair value | 10 | |
Increase in fair value of equity securities | 1,400 | |
Level 1 | ||
Current Assets: | ||
Equity securities | 2,931 | |
Total current assets recorded at fair value | $ 2,931 | |
Non-current Assets | ||
Restricted cash | 10 | |
Total non-current assets recorded at fair value | 10 | |
Level 3 | ||
Current Assets: | ||
Equity securities | 1,520 | |
Total current assets recorded at fair value | $ 1,520 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Net Book Value of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | $ 8,983 | $ 8,985 |
Impairment | 0 | |
Mineral rights and properties | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | 8,972 | 8,972 |
Other property, plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | 11 | 13 |
Alabama | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | 8,972 | 8,972 |
Alabama | Mineral rights and properties | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | 8,972 | 8,972 |
Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | 11 | 13 |
Corporate | Other property, plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment | $ 11 | $ 13 |
DISCONTINUED OPERATIONS - Busin
DISCONTINUED OPERATIONS - Business segments included in discontinued operations (Details) - Uranium And Lithium Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Mineral property expenses | $ (570) | $ (1,172) |
General and administrative expenses | (433) | (850) |
Accretion of asset retirement obligations | (32) | (138) |
Depreciation and amortization | (15) | (26) |
Other income (expense) | 19 | 30 |
Net Loss from Discontinued Operations | $ (1,031) | $ (2,156) |
DISCONTINUED OPERATIONS - Cash
DISCONTINUED OPERATIONS - Cash flow information (Details) - Uranium And Lithium Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 15 | $ 26 |
Capital Expenditures | (87) | |
Accretion of asset retirement obligations | $ 32 | $ 138 |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issued, Net of Issuance Costs (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 04, 2020 | Apr. 14, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Common stock outstanding after the effect of reverse stock spilt conversion | 33,536,315 | 33,536,315 | 19,171,859 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Net proceeds from common stock | $ 77,863 | $ 6,291 | |||||
Registered share available for future sales | 0 | 0 | |||||
ATM Offering Agreement | |||||||
Number of common stock sold | 0 | ||||||
Registered share available for future sales | 0 | 0 | |||||
Common Stock | |||||||
Number of common stock issued | 1,200,000 | 1,902,182 | 14,307,270 | 3,324,924 | |||
Cantor Fitzgerald & Co | ATM Offering Agreement | |||||||
Number of common stock issued | 9,300,000 | ||||||
Net proceeds from common stock | $ 47,300 | ||||||
Cantor Fitzgerald & Co | Maximum | ATM Offering Agreement | |||||||
Sales commission percentage | 2.50% | ||||||
December 2020 PA | |||||||
Maximum aggregate offering price | $ 100,000 | ||||||
Period for financing from common stock | 36 months | ||||||
Threshold average sale price per share of common stock | $ 6.15 | ||||||
December 2020 PA | Lincoln Park | |||||||
Number of common stock issued | 1,200,000 | 5,000,000 | |||||
Net proceeds from common stock | $ 5,700 | $ 30,600 | |||||
Registered share available for future sales | 10,800,000 | 10,800,000 | |||||
2019 Purchase Agreement with Lincoln Park | Maximum | |||||||
Percentage of common stock issuable | 19.99% | ||||||
2019 Purchase Agreement with Lincoln Park | Lincoln Park | |||||||
Minimum percentage considered for not to sale common stock | 9.99% |
COMMON STOCK - Warrants (Detail
COMMON STOCK - Warrants (Details) - shares | Oct. 06, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Warrants | |||
Warrants outstanding at beginning of period | 0 | 197,622 | |
Issued | 0 | 0 | |
Expired | 0 | (11,440) | |
Warrants outstanding at end of period | 0 | 186,182 | |
Lincoln Park | |||
Warrants | |||
Issued | 118,799 | ||
Exercised | 182,515 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2021 | May 21, 2021 | Apr. 28, 2020 | Apr. 18, 2019 | Dec. 13, 2017 | Jul. 18, 2017 | |
Alabama Graphite | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of replacement options and warrants | 50,168 | |||||||
Replacement options and warrants shares exchange rate | $ 0.0016 | |||||||
Exercise prices for the option and warrant shares | $ 0.77809 | |||||||
Alabama Graphite | CAD Currency | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Replacement options and warrants shares exchange rate | $ 0.0016 | |||||||
2013 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock shares reserved for future issuance | 1,279,774 | 1,279,774 | ||||||
Stock-based compensation expense | $ 0.2 | $ 0.3 | ||||||
2013 Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock shares reserved for future issuance | 1,500,000 | 350,000 | 66,000 | 20,000 | ||||
Stock option vesting period | 10 years |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Options Outstanding (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
STOCK BASED COMPENSATION | ||
Number of stock options outstanding, Beginning of period | 185,054 | 37,786 |
Number of stock options outstanding, Granted | 94,522 | 125,804 |
Number of stock options outstanding, Expired | (2,000) | (1,693) |
Number of stock options outstanding, End of period | 277,576 | 161,897 |
Number of stock options Exercisable, End of period | 183,054 | 36,093 |
Weighted average exercise price, Beginning of period | $ 7.99 | $ 37.42 |
Weighted average exercise price, Granted | 3.91 | 1.59 |
Weighted average exercise price, Expired | 73.54 | 101.64 |
Weighted average exercise price, End of period | 6.18 | 8.91 |
Weighted average exercise price Exercisable, End of period | $ 7.35 | $ 34.41 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of Stock Options Outstanding and Exercisable by Stock Option Plan (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Stock Options, Number of Outstanding Stock Options | 277,576 | 185,054 | 161,897 | 37,786 |
Outstanding Stock Options, Weighted Average Exercise Price | $ 6.18 | $ 7.99 | $ 8.91 | $ 37.42 |
Exercisable Stock Options, Number of Exercisable Stock Options | 183,054 | 36,093 | ||
Exercisable Stock Options, Weighted Average Exercise Price | $ 7.35 | $ 34.41 | ||
2004 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Stock Options, Number of Outstanding Stock Options | 92 | |||
Outstanding Stock Options, Weighted Average Exercise Price | $ 1,638 | |||
Exercisable Stock Options, Number of Exercisable Stock Options | 92 | |||
Exercisable Stock Options, Weighted Average Exercise Price | $ 1,638 | |||
2004 Directors Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Stock Options, Number of Outstanding Stock Options | 3 | |||
Outstanding Stock Options, Weighted Average Exercise Price | $ 10,380 | |||
Exercisable Stock Options, Number of Exercisable Stock Options | 3 | |||
Exercisable Stock Options, Weighted Average Exercise Price | $ 10,380 | |||
2013 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding Stock Options, Number of Outstanding Stock Options | 277,481 | |||
Outstanding Stock Options, Weighted Average Exercise Price | $ 5.67 | |||
Exercisable Stock Options, Number of Exercisable Stock Options | 182,959 | |||
Exercisable Stock Options, Weighted Average Exercise Price | $ 6.29 |
STOCK BASED COMPENSATION - Su_3
STOCK BASED COMPENSATION - Summary of RSU Activity (Details) - Restricted Stock Units - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs, Unvested beginning of period | 236,403 | 0 |
Number of RSUs, Granted | 184,290 | 211,497 |
Number of RSUs, Forfeited | 0 | 0 |
Number of RSUs, Vested | (78,801) | 0 |
Number of RSUs, Unvested end of period | 341,892 | 211,497 |
Weighted Average Grant Date Fair Value, Unvested RSUs beginning of period | $ 2.10 | $ 0 |
Weighted Average Grant Date Fair Value, Granted | 4.13 | 2.03 |
Weighted Average Grant Date Fair Value, Forfeited | 0 | 0 |
Weighted Average Grant Date Fair Value, Vested | 2.10 | 0 |
Weighted Average Grant Date Fair Value, Unvested RSUs end of period | $ 3.08 | $ 2.03 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) | 6 Months Ended |
Jun. 30, 2021shares | |
EARNINGS PER SHARE | |
Potentially dilutive shares | 619,468 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Right-of-use lease asset | $ 291 | $ 353 | |
Lease liability | 301 | 363 | |
Current portion of lease liabilities | $ 151 | 149 | |
Lease term using a discount rate | 9.50% | ||
Lease expense: | |||
Operating lease cost | $ 77 | $ 81 | |
Supplemental cash flow information related to leases: | |||
Cash flows from operating leases | 77 | 79 | |
Operating leases | 291 | $ 424 | |
Supplemental balance sheet information related to leases: | |||
Operating lease right-of-use assets | 291 | 353 | |
Current portion of lease liabilities | 151 | 149 | |
Operating lease liabilities - Long term portion | 150 | 214 | |
Total operating lease liabilities | $ 301 | $ 363 | |
Weighted Average Remaining Lease Term (in years) | 2 years | 3 years 2 months 12 days | |
Discount Rate | 9.50% | 9.50% | |
Corporate office | |||
Lessee, Lease, Description [Line Items] | |||
Variable lease terms | Because these amounts are variable from year to year and not specifically set in the lease terms, they are not included in the measurement of the right-of-use asset and related lease liability, but rather expensed in the period incurred. | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Option to extend, renewal term | 3 years | ||
Minimum | Corporate offices, storage space and equipment | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year 3 months 18 days | ||
Maximum | Corporate offices, storage space and equipment | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 2 years 1 month 6 days | ||
Maximum | Land used in exploration and mining activities, office equipment, machinery, office space, storage and other | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 1 year |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Undiscounted cash payments: | ||
2021 (remainder of year) | $ 79 | |
2022 | 158 | |
2023 | 92 | |
Total lease payments | 329 | |
Less imputed interest | (28) | |
Total operating lease liabilities | 301 | $ 363 |
Centennial, Colorado | ||
Undiscounted cash payments: | ||
Total lease payments | $ 300 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Lake Martin Area Industrial Development Authority - Subsequent Event - Alabama Graphite $ in Millions | Jul. 23, 2021USD ($)a |
Subsequent Event [Line Items] | |
Acres of land under lease | a | 70 |
Term of lease | 10 years |
Fair value of land | $ | $ 1.4 |