0001052918-18-000305.txt : 20180808 0001052918-18-000305.hdr.sgml : 20180808 20180808163918 ACCESSION NUMBER: 0001052918-18-000305 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 68 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20180808 DATE AS OF CHANGE: 20180808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTWATER RESOURCES, INC. CENTRAL INDEX KEY: 0000839470 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 752212772 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-33404 FILM NUMBER: 181001949 BUSINESS ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 BUSINESS PHONE: (303) 531-0470 MAIL ADDRESS: STREET 1: 6950 S. POTOMAC STREET STREET 2: SUITE 300 CITY: CENTENNIAL STATE: CO ZIP: 80112 FORMER COMPANY: FORMER CONFORMED NAME: URANIUM RESOURCES INC /DE/ DATE OF NAME CHANGE: 19920703 10-Q 1 wri10qaug7-18.htm WESTWATER RESOURCES, INC. FORM 10-Q Westwater Resources, Inc.



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q


x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


For the quarterly period ended June 30, 2018


Or


o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


For the transition period from to


Commission file number 001-33404


                    WESTWATER RESOURCES, INC.                  

(Exact Name of Issuer as Specified in Its Charter)


DELAWARE

 

75-2212772

(State of Incorporation)

 

(I.R.S. Employer Identification No.)


6950 S. Potomac Street, Suite 300, Centennial, Colorado 80112

(Address of Principal Executive Offices, Including Zip Code)


                                (303) 531-0416                         

(Issuer’s Telephone Number, Including Area Code)


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 x No o


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes x No o


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer o

 

Accelerated filer o

 

 

 

Non-accelerated filer o

 

Smaller reporting company x

(Do not check if a smaller reporting company)

 

 

 

 

Emerging growth company o


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.    o


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x


Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Title of Each Class of Common Stock

 

Number of Shares Outstanding

Common Stock, $0.001 par value

 

51,996,466 as of August 8, 2018






1





WESTWATER RESOURCES, INC.

TABLE OF CONTENTS


PART I — FINANCIAL INFORMATION

3

ITEM 1. FINANCIAL STATEMENTS

3

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

19

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

26

ITEM 4. CONTROLS AND PROCEDURES

26

PART II - OTHER INFORMATION

27

ITEM 1.  LEGAL PROCEEDINGS

27

ITEM 1A.  RISK FACTORS.

27

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

27

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

27

ITEM 4.  MINE SAFETY DISCLOSURES.

27

ITEM 5.  OTHER INFORMATION.

27

ITEM 6.  EXHIBITS.

28

SIGNATURES

29






2





PART I — FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS


WESTWATER RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(expressed in thousands of dollars, except share amounts)

(unaudited)

 

 

 

 

June 30,

 

December 31,

 

 

Notes

 

2018

 

2017

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

2,715

 

$

4,054 

Marketable securities

 

5

 

579

 

1,361 

Notes receivable – current

 

4

 

1,500

 

1,750 

Prepaid and other current assets

 

 

 

611

 

668 

Total Current Assets

 

 

 

5,405

 

7,833 

 

 

 

 

 

 

 

Property, plant and equipment, at cost:

 

 

 

 

 

 

Property, plant and equipment

 

 

 

92 014 

 

101,187 

Less accumulated depreciation, depletion and impairment

 

 

 

(65 668)

 

(65,778)

Net property, plant and equipment

 

6

 

26,346 

 

35,409 

 

 

 

 

 

 

 

Restricted cash

 

1,5

 

3,668 

 

3,668 

Notes receivable – non-current

 

4

 

1,242 

 

3,328 

Total Assets

 

 

 

$

36,661 

 

$

50,238 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

 

 

$

1,017 

 

$

538 

Accrued liabilities

 

 

 

1,642 

 

2,352 

Current portion of asset retirement obligations

 

8

 

526 

 

1,078 

Total Current Liabilities

 

 

 

3,185 

 

3,968 

 

 

 

 

 

 

 

Asset retirement obligations, net of current portion

 

8

 

5,118 

 

4,653 

Other long-term liabilities and deferred credits

 

 

 

500 

 

500 

Total Liabilities

 

 

 

8,803 

 

9,121 

 

 

 

 

 

 

 

Commitments and Contingencies

 

12

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

Common stock, 100,000,000 shares authorized, $.001 par value;

 

 

 

 

 

 

Issued shares – 47,170,957 and 27,790,324, respectively

 

 

 

 

 

 

Outstanding shares – 47,162,932 and 27,782,299, respectively

 

9

 

47 

 

28 

Paid-in capital

 

9,10

 

308,811 

 

297,250 

Accumulated other comprehensive (loss) income

 

 

 

(676)

 

287 

Accumulated deficit

 

 

 

(280,066)

 

(256,190)

Treasury stock (8,025 and 8,025 shares, respectively), at cost

 

 

 

(258)

 

(258)

Total Stockholders' Equity

 

 

 

 27,858

 

41,117 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

 

 

$

 36,661

 

$

50,238 

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




3







WESTWATER RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(expressed in thousands of dollars, except share and per share amounts)

(unaudited)

 

 

 

 

For the Three Months Ended

June 30,

 

For the Six Months Ended June 30,

 

 

Notes

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

Mineral property expenses

 

7

 

$

(969)

 

$  (1,552)

 

$

(1,751)

 

$

(2,321)

General and administrative expenses

 

 

 

(2,054)

 

  (1,608)

 

(3,859)

 

(3,276)

    Acquisition costs

 

3

 

422 

 

 - 

-

(333)

 

Accretion of asset retirement obligations

 

8

 

(134)

 

  (131)

 

(268)

 

(263)

Depreciation and amortization

 

 

 

(33)

 

  (39)

 

(67)

 

(77)

Impairment of uranium properties

 

6

 

(17,968)

 

 - 

 

(17,968)

 

        Total operating expenses

 

 

 

(20,736)

 

  (3,330)

 

(24,246)

 

(5,937)

 

 

 

 

 

 

 

 

 

 

 

Non-Operating Income/(Expenses):

 

 

 

 

 

 

 

 

 

 

Loss on sale of marketable securities

 

 

 

 

 

(93)

 

Loss on extinguishment of convertible debt

 

 

 

 

 

 

(39)

    Gain on sale of fixed assets

 

 

 

 

 

 

Gain on disposal of uranium properties

 

 

 

 

506 

 

 

4,927 

Interest income

 

4

 

172 

 

186 

 

346 

 

238 

Other income/(expense), net

 

 

 

99 

 

(1)

 

109 

 

16 

         Total other income

 

 

 

279 

 

691 

 

370 

 

5,142 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

 

 

$

(20,457)

 

$

(2,639)

 

$

(23,876)

 

$

(795)

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

Unrealized fair value decrease on marketable securities

 

 

 

$

(26)

 

$

(591)

 

$

(1,056)

 

$

(161)

Transfer to realized loss upon sale of available-for sale securities

 

 

 

 

 

93 

 

Comprehensive Loss

 

 

 

$

(20,483)

 

$

(3,230)

 

$

(24,839)

 

$

(956)

 

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER SHARE

 

$

(0.51)

 

$

(0.11)

 

$

(0.70)

 

$

(0.03)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

 

 

 

39,909,993 

 

24,614,723 

 

33,971,907 

 

23,116,608 


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



4






WESTWATER RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL CASH FLOW INFORMATION

(expressed in thousands of dollars)

(unaudited)

 

 

 

 

Six Months Ended June 30,

 

 

Notes

 

2018

 

2017

Operating Activities:

 

 

 

 

 

 

Net loss

 

 

 

$

(23,876)

 

$

(795)

Reconciliation of net loss to cash used in operations:

 

 

 

 

 

 

Accretion of asset retirement obligations

 

8

 

268 

 

263 

Amortization of debt discount

 

 

 

 

30 

Amortization of notes receivable discount

 

4

 

(337)

 

(363)

Amortization of non-cash investor relations fees

 

 

 

13 

 

100 

Loss on extinguishment of convertible debt

 

 

 

 

39 

Loss on sale of marketable securities

 

 

 

93 

 

Costs incurred for restoration and reclamation activities

 

8

 

(355)

 

(30)

Depreciation and amortization

 

 

 

67 

 

77 

Stock compensation expense

 

10

 

162 

 

38 

Common stock issued for purchase of lithium mineral interests

 

 

 

114 

 

Common stock issued for consulting services

 

 

 

95 

 

Gain on disposal of fixed assets

 

 

 

(8)

 

(4,927)

Impairment of uranium properties

 

6

 

17,968 

 

Effect of changes in operating working capital items:

 

 

 

 

 

 

Increase in receivables and other

 

 

 

(6)

 

(5)

Decrease in prepaids and other

 

 

 

202 

 

73 

Decrease in payables and deferred credits

 

 

 

(490)

 

(834)

Net Cash Used In Operating Activities

 

 

 

(6,090)

 

(6,334)

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Proceeds from the sale of securities, net

 

4

 

476 

 

Proceeds from disposal of property, plant and equipment

 

 

 

 

1,950 

Proceeds from note receivable

 

4

 

1,089 

 

Acquisition of Alabama Graphite, net of cash acquired

 

3

 

(1,547)

 

Net Cash Provided By Investing Activities

 

 

 

26 

 

1,950 

Cash Flows From Financing Activities:

 

 

 

 

 

 

Payments on borrowings

 

 

 

 

(5,500)

Issuance of common stock, net

 

9

 

4,730 

 

13,705 

Payment of minimum withholding taxes on net share settlements of equity awards

 

 

 

(5)

 

(1)

Net Cash Provided By Financing Activities

 

 

 

4,725 

 

8,204 

 

 

 

 

 

 

 

Net (decrease)/increase in cash, cash equivalents and restricted cash

 

 

 

(1,339)

 

3,820 

Cash, cash equivalents and restricted cash, beginning of period

 

 

 

7,722 

 

7,273 

Cash, Cash Equivalents and Restricted Cash, End of Period

 

 

 

$

6,383 

 

$

11,093 

Cash paid during the period for:

 

 

 

 

 

 

Interest

 

 

 

$

 

$

227 

Supplemental Non-Cash Information for Investing and Financing Activities:

 

 

 

 

 

 

Securities received for payment of notes receivable - Laramide

 

 

 

$

750 

 

$

Securities received for asset disposal - Laramide

 

 

 

 

568 

Common stock issued for acquisition of Alabama Graphite

 

 

 

6,394 

 

Stock options and warrants issued for acquisition of Alabama Graphite

 

 

 

89 

 

Common stock issued for consulting services

 

 

 

95 

 

Common stock issued for purchase of lithium mineral interests

 

 

 

114 

 

Total Non-Cash Investing and Financing Activities for the Period

 

 

 

$

7,442 

 

$

568 

  

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




5






WESTWATER RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(expressed in thousands of dollars, except share amounts)

(unaudited)

 

 

Common Stock

 

 

 

 

 

 

 

 

 

Shares

 

Amount

Paid-In Capital

Accumulated

  Other

Comprehensive

 Income (Loss)

 

Accumulated Deficit

 

Treasury

Stock

 

Total

Balances, January 1, 2018

27,790,324

 

$

28

$

297,250 

$

287 

 

$

(256,190)

 

$

(258)

 

$

41,117 

Net loss

-

 

-

 

(23,876)

 

 

(23,876)

Common stock issued, net of issuance costs

7,361,765

 

7

3,083 

 

 

 

3,090 

Prepaid warrant proceeds for common stock

-

 

-

1,640 

 

 

 

1,640 

Common stock, warrants and options issued for acquisition of Alabama Graphite

11,625,210

 

12

6,472 

 

 

 

6,484 

Common stock issued for consulting services

172,727

 

-

95 

 

 

 

95 

Common stock issued for purchase of lithium mineral interests

200,000

 

-

114 

 

 

 

114 

Stock compensation expense and related share

issuances, net of shares withheld for payment

of taxes

20,931

 

-

162 

 

 

 

162 

Minimum withholding taxes on net share settlements of equity awards

-

 

-

(5)

 

 

 

 

 

(5)

Unrealized holding loss on marketable securities

-

 

-

(1,056)

 

 

 

(1,056)

Transfer to realized loss upon sale of available for sale securities

-

 

-

93 

 

 

 

93 

Balances, June 30, 2018

47,170,957

 

$

47

$

308,811 

$

(676)

 

$

(280,066)

 

$

(258)

 

$

27,858 


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




6






1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements for Westwater Resources, Inc. (the “Company,” “we,” “us,” “WWR” or “Westwater”), formerly known as Uranium Resources, Inc., 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 2017 Annual Report on Form 10-K. 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, 2018 are not necessarily indicative of the results that may be expected for any other period including the full year ending December 31, 2018.

Recently Adopted Accounting Pronouncements

 

 In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows: Restricted Cash, which will require that a statement of cash flows explain the change during a period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU applies to all entities and is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adopting ASU 2016-18, the Company has included the restricted cash amount in its beginning-of-period and end-of-period reconciliations of cash on its statement of cash flows and has removed restricted cash releases of $23,000 from the investing activities section of the cash flow statement for the six months ended June 30, 2018.


 In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01), Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business when determining whether a company has acquired or sold a business. The ASU applies to all entities and is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted under certain circumstances.  The Company utilized the updated “Definition of a Business” in ASC 805 for the Alabama Graphite acquisition and determined that the transaction should be recorded as an asset acquisition under ASC 360.


Recently Issued Accounting Pronouncements

 

 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize all leases, including operating leases, unless the lease is a short-term lease or a land lease for mineral properties. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for interim periods and fiscal years beginning after December 15, 2018, and early application is permitted. Currently, the only affected leases the Company holds are for equipment, office space and storage space. The Company has gathered the necessary information for proper disclosure of the leases once the ASU is effective. The Company will continue to monitor any new leases to ensure that it has all the information necessary to handle the transition to the new standard and properly report the transactions. The Company does not anticipate the new standard will affect its net income materially but will result in additional fixed assets and the related lease liabilities.

Cash, Cash Equivalents and Restricted Cash


The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.


 

As of June 30,

(thousands of dollars)

2018

 

2017

Cash and cash equivalents

$

2,715

 

$

7,152

Restricted cash - pledged deposits for performance bonds

3,668

 

3,941

Cash, cash equivalents and restricted cash shown in the statement of cash flows

$

6,383

 

$

11,093

 

 

 

 

Funds deposited by the Company for collateralization of performance obligations are not available for the payment of general corporate obligations and are not included in cash equivalents.  Restricted cash consists of pledged certificates of deposit and money market accounts. The bonds are collateralized performance bonds required for future restoration and reclamation obligations related to the Company’s South Texas production properties.



7





Notes Receivable


These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.  Assets with lives beyond one year are carried at amortized cost using the effective interest method less any provision for impairment. Assets with lives under a year are undiscounted and carried at full cost. Management monitors these assets for credit quality and recoverability on a quarterly basis, including the value of any collateral. If the value of the collateral, less selling or recovery costs, exceeds the recorded investment in the asset, no impairment costs would be recorded.  


2. LIQUIDITY

At June 30, 2018, the Company had working capital of $2.2 million, an ATM Offering with $8.0 million remaining, of which $7.8 million was currently registered for sale and a non-current note receivable from Laramide for $2.0 million.  These sources, along with other anticipated financings, are expected to provide it with the necessary liquidity through September 30, 2019.  At December 31, 2017, the Company had working capital of $3.9 million.  The decrease in working capital of $1.7 million for the six months ended June 30, 2018 was primarily due to the following:

loan advances to Alabama Graphite to fund their pre-acquisition operating costs of $0.9 million.

a decrease of $1.0 million in the fair value of Laramide Resources Ltd. (“Laramide”) securities as of June 30, 2018.

During 2018 and 2017, the Company entered into the following financing agreements and anticipates funding from these sources to sustain operations through September 30, 2019:

Registered Direct Offering


On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital Fund, LLC (“Aspire Capital”) for net proceeds of $2.9 million.  The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021.  The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”) with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.


Controlled Equity Offering Sales Agreement


On April 14, 2017, the Company entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. (“Cantor”) acting as sales agent, pursuant to which the Company has registered the offer and sale from time to time of shares of its common stock having an aggregate offering price of up to $8.0 million (the “ATM Offering”), of which approximately $7.8 million is available for future sales as of August 8, 2018.  

The Company believes that its current working capital balance, the remaining registered shares of the ATM Offering, the non-current note receivable from Laramide and other anticipated financings will provide it with the necessary liquidity to fund operations through September 30, 2019.  The Company will also continue to explore additional opportunities to raise capital, further monetize its non-core assets and identify ways to reduce its cash expenditures.

While the Company has been successful in the past 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 to it in amounts sufficient to meet the Company’s needs or on terms acceptable to the Company.  In the event that funds are not available, the Company may be required to materially change its business plans.



   



8





3. ACQUISITIONS


Acquisition of Alabama Graphite


On April 23, 2018, the Company completed its acquisition of 100% of the outstanding securities of Alabama Graphite Corp. for total consideration of $8.9 million.  Alabama Graphite is a Canadian entity that indirectly holds a 100% interest in the Coosa graphite project located in Alabama.  The consideration was comprised of $2.4 million in cash used to fund Alabama Graphite’s operating activities prior to completion of the Alabama Graphite transaction and certain related transaction costs, $6.4 million in common stock of the Company and $89,000 for warrants and options in the Company.  Each Alabama Graphite ordinary share was exchanged for 0.08 common share of WWR.  Each warrant and option of Alabama Graphite was also exchanged for warrants and options exercisable for common shares of WWR on the same terms and conditions as were applicable prior to the Alabama Graphite transaction, except that the exercise price was converted for the 0.08 share exchange ratio and for the USD exchange rate on the agreement date which was $0.77809 (CAD to USD) on December 13, 2017.  As a result, the Company issued 11,625,210 new shares, 364,000 options and 2,144,378 warrants.  The value of the Company’s common stock issued as consideration was based upon the opening share price on April 23, 2018 of $0.55.  The operating results of Alabama Graphite are included in the Consolidated Statement of Operations commencing April 23, 2018.


The Alabama Graphite loan from WWR was $1,795,251 as of April 23, 2018 and was incorporated into the final acquisition accounting and therefore was eliminated as of June 30, 2018.  Acquisition related costs were $1.9 million as of June 30, 2018, of which, $0.6 million was capitalized as additional cash consideration at the acquisition date for certain transaction costs that were directly related to the asset acquisition.   Additionally, $0.4 million of the above mentioned capitalized costs were previously expensed resulting in an acquisition cost credit of $0.4 million for the three months ending June 30, 2018.

The acquisition of Alabama Graphite was accounted for as an asset acquisition in accordance with ASC 360 as “substantially all” of the purchase consideration was concentrated in a single identifiable asset for graphite mineral interests.  WWR controls the Board of Directors and senior management positions of Alabama Graphite and has overall control over the day-to-day activities of the acquired entity.

The following summarizes the preliminary allocation of purchase price to the fair value of assets acquired and liabilities assumed as of the acquisition date (in thousands):


Consideration:

 

 

     Cash

 

 $      2,397

     Issuance of 11,625,210 common shares for replacement of Alabama Graphite shares

 

6,394

     Issuance of 364,000 options for replacement of Alabama Graphite options

 

35

     Issuance of 2,144,378 warrants for replacement of Alabama Graphite warrants

 

54

 

 

$      8,880

 

 

 

The fair value of the consideration given was allocated as follows:

 

 

   Assets:

 

 

     Cash and cash equivalents

 

$           17

     Short-term receivables

 

113

     Prepaid expenses

 

42

     Property, plant, equipment and graphite mineral interests

 

8,973

        Total assets

 

9,145

   Liabilities:

 

 

     Accounts payable and accrued liabilities

 

265

        Total liabilities

 

265

Net assets

 

$      8,880

The carrying value of the current assets and liabilities assumed approximated the fair value due to the short-term nature of these items.  The fair value of the graphite mineral interests was estimated using a discounted cash flow approach and market comparables.  Key assumptions used in the discounted cash flow analysis include discount rates, mineral resources, future timing of production, recovery rates and future capital and operating costs.  



9






4. NOTES RECEIVABLE

 

Alabama Graphite Corp. Note Receivable

 

In conjunction with its entry into the arrangement agreement to acquire Alabama Graphite, on December 13, 2017, the Company executed a secured convertible loan agreement (the “Alabama Graphite Loan”), whereby the Company agreed to provide a non-revolving convertible loan facility of up to USD $2,000,000 to Alabama Graphite for the purpose of funding operations until the acquisition could be finalized. For six months ended June 30, 2018, advances under the loan were $949,280 and accrued interest was $12,227. As of April 23, 2018, the Company had advanced $1,781,794 on the Alabama Graphite Loan and had accrued interest receivable of $13,457. This represents the total advances prior to the closing of the acquisition.


With the completion of the acquisition on April 23, 2018 (as discussed in Note 3), the Alabama Graphite Loan became part of the consideration paid for the acquisition and was incorporated into the purchase price allocation to the assets and liabilities of the acquired company.  Due to the inclusion of the loan in the acquisition purchase price, the loan has been classified as a non-current asset at December 31, 2017 and has been eliminated with the acquisition accounting at June 30, 2018.


 

Laramide Note Receivable

 

As part of the consideration for the sale of Hydro Resources, Inc., the Company currently holds a $3.5 million promissory note, secured by a mortgage over the Churchrock and Crownpoint projects. The note has a three-year term and carries an initial interest rate of 5% which then increases to 10% upon Laramide’s decision regarding commercial production at the Churchrock project. Principal payment of $1.5 million is due and payable on January 5, 2019, with the balance of $2.0 million due and payable on January 5, 2020. Interest is payable on a quarterly basis. Laramide will have the right to satisfy up to half of each of these principal payments by delivering shares of its common stock to the Company, which shares will be valued by reference to the volume weighted average price (“VWAP”) for Laramide’s common stock for the 20 trading days before the respective anniversary of January 5, on which each payment is due. The fair value of the notes receivable was determined using the present value of the future cash receipts discounted at a market rate of 9.5%.


Laramide made the first required principal payment of $1.5 million on the promissory note in January 2018, consisting of $750,000 in cash and the issuance of 1,982,483 of Laramide’s common shares. Also, Laramide has made interest payments of $0.3 million in cash for the six months ending June 30, 2018.


The following tables show the notes receivable, accrued interest and unamortized discount on the Company’s notes receivable as of June 30, 2018 and December 31, 2017. 


 

 

June 30, 2018

(thousands of dollars)

 

Note
Amount

 

 

Plus Accrued
Interest

 

 

Less
Unamortized
Note
Discount

 

 

Note Balance
per Balance
Sheet

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable Laramide – current

 

$

1,500

 

 

$

 

 

$

 

 

$

1,500

Subtotal Notes Receivable – current

 

$

1,500

 

 

$

 

 

$

 

 

$

1,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable – Laramide – non-current

 

$

2,000

 

 

$

 

 

$

(758)

 

 

$

1,242

Total Notes Receivable – current and non-current

 

$

3,500

 

 

$

 

 

$

(758)

 

 

$

2,742

 

 

 




10






 

 

December 31, 2017

(thousands of dollars)

 

Note
Amount

 

 

Plus Accrued
Interest

 

 

Less
Unamortized
Note
Discount

 

 

Note Balance
per Balance
Sheet

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable Laramide – current

 

$

1,500

 

 

$

250

 

 

$

 

 

$

1,750

Subtotal Notes Receivable – current

 

$

1,500

 

 

$

250

 

 

$

 

 

$

1,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes receivable – Laramide – non-current

 

$

3,500

 

 

$

-

 

 

$

(1,005)

 

 

$

2,495

Notes receivable – Alabama Graphite Corp.

 

 

832

 

 

 

1

 

 

 

 

 

 

833

Subtotal Notes Receivable – non-current

 

$

4,332

 

 

$

1

 

 

$

(1,005)

 

 

$

3,328

Total Notes Receivable – current and non-current

 

$

5,832

 

 

$

251

 

 

$

(1,005)

 

 

$

5,078


5. 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 assumptions 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 approximate 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, 2018 and December 31, 2017 and indicate the fair value hierarchy.


 

 

June 30, 2018

 

(thousands of dollars)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term available-for-sale investments

 

$

579

 

 

$

-

 

 

$

-

 

 

$

579

 

Total current assets recorded at fair value

 

$

579

 

 

$

-

 

 

$

-

 

 

$

579

 

Non-current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

$

3,668

 

 

$

-

 

 

 

-

 

 

$

3,668

 

Total non-current assets recorded at fair value

 

$

3,668

 

 

$

-

 

 

$

-

 

 

$

3,668

 


 

 

December 31, 2017

 

(thousands of dollars)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term available-for-sale investments

 

$

1,361

 

 

$

-

 

 

$

-

 

 

$

1,361

 

Total current assets recorded at fair value

 

$

1,361

 

 

$

-

 

 

$

-

 

 

$

1,361

 

Non-current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

$

3,668

 

 

$

-

 

 

 

-

 

 

$

3,668

 

Total non-current assets recorded at fair value

 

$

3,668

 

 

$

-

 

 

$

-

 

 

$

3,668

 

Assets that are measured on a recurring basis include the Company’s marketable securities and restricted cash.  



11






6. PROPERTY, PLANT AND EQUIPMENT

 

Net Book Value of Property, Plant and Equipment at June 30, 2018

(thousands of dollars)

Turkey

 

Texas

 

Alabama

 

New Mexico

 

Corporate

 

Total

Uranium plant

$

-

 

$

8,303

 

$

-

 

$

-

 

$

-

 

$

8,303

Mineral rights and properties

-

 

-

 

8,972

 

7,806

 

-

 

16,778

Other property, plant and equipment

8

 

1,069

 

1

 

-

 

187

 

1,265

       Total

$

8

 

$

9,372

 

$

8,973

 

$

7,806

 

$

187

 

$

26,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value of Property, Plant and Equipment at December 31, 2017

 

 

(thousands of dollars)

Turkey

 

Texas

 

Alabama

 

New Mexico

 

Corporate

 

Total

Uranium plant

$

-

 

$

8,304

 

$

-

 

$

-

 

$

-

 

$

8,304

Mineral rights and properties

17,968

 

-

 

-

 

7,806

 

-

 

25,774

Other property, plant and equipment

11

 

1,109

 

-

 

-

 

211

 

1,331

       Total

$

17,979

 

$

9,413

 

$

-

 

$

7,806

 

$

211

 

$

35,409

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of Temrezli and Sefaatli Projects

On June 20, 2018, the General Directorate of Mining Affairs, a department of the Turkish Ministry of Energy and Natural Resources, notified the Company that the mining and exploration licenses for its Temrezli and Sefaatli projects located in Turkey have been revoked and potential compensation has been proffered. While the Company is investigating the legality of this action and what remedies, including compensation, might be available to the Company, the Company has determined that it is more likely than not that the Company will be unable to explore, develop, mine or otherwise benefit from the mineral properties. Therefore, the Company has determined that all of the uranium mineral holding property assets located in Turkey were fully impaired. The Company will recognize compensation for the mining and exploration licenses when the amount of the full and fair compensation is fixed and determinable and the ability to collect is probable.

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.


7. MINERAL PROPERTY EXPENDITURES


Mineral property expenditures by geographical location for the three and six months ended June 30, 2018 and 2017 are as follows:


 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2018

 

2017

 

2018

 

2017

 

 

(thousands of dollars)

Temrezli project, Turkey

 

$

17 

 

$

24

 

$

96

 

$

123

     Total Turkey projects

 

17 

 

24

 

96

 

123

 

 

 

 

 

 

 

 

 

Kingsville Dome project, Texas

 

172 

 

155

 

423

 

418

Rosita project, Texas

 

158 

 

172

 

355

 

284

Vasquez project, Texas

 

97 

 

114

 

331

 

283

Other projects, Texas

 

(6)

 

1

 

1

 

2

     Total Texas projects

 

421 

 

442

 

1,110

 

987

 

 

 

 

 

 

 

 

 

Cebolleta project, New Mexico

 

389 

 

538

 

389

 

538

Juan Tafoya project, New Mexico

 

 

312

 

9

 

318

     Total New Mexico projects

 

392 

 

850

 

398

 

856

 

 

 

 

 

 

 

 

 

Columbus Basin project, Nevada

 

120 

 

74

 

122

 

191



12








Railroad Valley project, Nevada

 

12 

 

155

 

16

 

158

     Total Nevada projects

 

132 

 

229

 

138

 

349

 

 

 

 

 

 

 

 

 

Sal Rica project, Utah

 

(2)

 

7

 

-

 

6

     Total Utah projects

 

(2)

 

7

 

-

 

6

 

 

 

 

 

 

 

 

 

Coosa project, Alabama

 

 

-

 

9

 

-

     Total Alabama Projects

 

 

-

 

9

 

-

     

 

 

 

 

 

 

 

 

Total expense for the period

 

$

969 

 

1,552

 

$

1751

 

$

2,321

8. ASSET RETIREMENT OBLIGATIONS  

The following table summarizes the changes in the reserve for future restoration and reclamation costs on the balance sheet:

 

 

June 30,

 

December 31,

 

 

2018

 

2017

(thousands of dollars)

 

 

 

 

Balance, beginning of period

 

$

5,731 

 

$

4,789 

Liabilities settled

 

(355)

 

(97)

Accretion expense

 

268 

 

1,039 

Balance, end of period

 

5,644 

 

5,731 

     Less: Current portion

 

(526)

 

(1,078)

Non-current portion

 

$

5,118 

 

$

4,653 

The Company is currently performing plugging and surface reclamation activities at its Rosita and Vasquez projects located in Duval County, Texas.  The Company’s current liability of $0.5 million consists of the estimated costs associated with current reclamation activities through June 2019 at the Company’s Rosita and Vasquez projects.  

9. COMMON STOCK

Common Stock Issued, Net of Issuance Costs

Registered Direct Offering


On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital for net proceeds of $2.9 million.  The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021.  The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”) with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.



Controlled Equity Offering Sales Agreement with Cantor Fitzgerald (“Cantor”)

 

On April 14, 2017, the Company entered into the ATM Offering with Cantor acting as sales agent. Under the ATM Offering, the Company may from time to time sell shares of its common stock having an aggregate offering amount up to $30.0 million in “at-the-market” offerings, $8.0 million of which shares are registered for sale under a registration statement on Form S-3, which was declared effective on March 9, 2017. The Company pays Cantor a commission of up to 2.5% of the gross proceeds from the sale of any shares pursuant to the ATM Offering. As of August 8, 2018, the Company had sold 1,742,749 shares of common stock for net proceeds of $1.6 million under the ATM Offering, of which, 1,068,896 shares of common stock and net proceeds of $0.5 million was sold in the six months ended June 30, 2018. As a result, the Company had approximately $28.4 million remaining available for future sales under the ATM Offering, of which $7.8 million has been registered for sale.

 



13






Common Stock Purchase Agreement (“CSPA”) with Aspire Capital

 

On September 25, 2017, the Company entered into the CSPA with Aspire Capital to place up to $22.0 million in the aggregate of the Company’s common stock on an ongoing basis when required by the Company over a term of 30 months. As consideration for Aspire Capital entering into the purchase agreement, the Company issued 880,000 shares of its common stock to Aspire Capital.


On September 27, 2017, pursuant to the CSPA and after satisfaction of certain commencement conditions, Aspire Capital made an initial purchase of 1,428,571 shares of common stock for which the Company received net proceeds of $2.0 million. Additionally, through its termination on June 14, 2018 in connection with the registered direct offering described above, Aspire Capital purchased an additional 2,725,096 shares of common stock for which the Company received net proceeds of $1.5 million.

Common Stock Issued for Acquisition of Alabama Graphite

As discussed in Note 3 above, the Company issued 11,625,210 shares of common stock in exchange for 100% of the outstanding shares of Alabama Graphite as part of the purchase consideration paid to acquire Alabama Graphite.  

Common Stock Issued for Purchase of Lithium Properties

On April 18, 2018, the Company issued 200,000 shares of common stock, with a fair value on the date of issuance of $114,000 for an option agreement to purchase a block of unpatented placer mining claims covering an area of approximately 3,000 acres within the Columbus Salt Marsh area of Esmeralda County, Nevada.

Common Stock Issued for Consulting Services

On May 3, 2018, the Company issued 172,727 shares of common stock, with a fair value on the date of issuance of $95,000 for consideration of consulting services that will be provided to the Company over the ensuing twelve months.

10. STOCK-BASED COMPENSATION

Stock-based compensation awards consist of stock options, restricted stock units, restricted stock awards and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan”); the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”); and the 2004 Stock Incentive Plan (the “2004 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, the Company’s stockholders approved an amendment to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 1.0 million shares and re-approve the material terms of the performance goals under such plan. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards (“RSAs”), 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. The maximum number of the Company’s common stock that may be reserved for issuance under the 2013 Plan is 1,083,333 shares of common stock, plus unissued shares under the prior plans. 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, 2018, 462,594 shares were available for future issuances under the 2013 Plan.  For the three months ending June 30, 2018 and 2017, the Company recorded stock-based compensation expense of $81,569 and $15,890, respectively.  For the six months ending June 30, 2018 and 2017, the Company recorded stock-based compensation expense of $162,242 and $38,078, 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 Anatolia Energy Limited in November 2015, the Company issued 374,749 replacement options and performance shares to the option holders and performance shareholders of Anatolia Energy Limited.  The number of replacement options and performance shares was based upon the Black-Scholes value with the exercise prices of the replacement options and performance shares determined using the exchange rate of 0.00548.  The options and performance shares were issued with the same terms and conditions as were applicable prior to the acquisition of Anatolia Energy Limited. As of June 30, 2018, there were 85,233 replacement options outstanding and no performance shares outstanding.



14





In addition to the plans above, upon closing of the Company’s acquisition of Alabama Graphite in April 2018, the Company issued 2,508,378 replacement options and warrants to the option and warrant holders of Alabama Graphite.  The number of replacement options and warrants shares was determined using the arrangement exchange rate of 0.08.  The exercise prices for the option and warrant shares were first converted for the exchange rate of 0.08 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, 2018, there were 336,000 replacement options and 1,348,872 replacement warrants outstanding.

Stock Options

The following table summarizes stock options outstanding and changes for the six-month periods ending June 30, 2018 and 2017:

 

 

June 30, 2018

 

June 30, 2017

 

 

Number of Stock Options

 

Weighted Average Exercise Price

 

Number of Stock Options

 

Weighted Average Exercise Price

Stock options outstanding at beginning of period

 

286,174 

 

$

5.53

 

110,828 

 

$

18.24

Granted

 

364,000 

 

1.68

 

 

-

Expired

 

(34,012)

 

9.33

 

(5,583)

 

11.04

Stock options outstanding at end of period

 

616,162 

 

$

3.05

 

105,245 

 

$

18.62

Stock options exercisable at end of period

 

612,162 

 

$

3.06

 

105,139 

 

$

18.60

he following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2018:

 

 

Outstanding Stock Options

 

Exercisable Stock Options

Stock Option Plan

 

Number of Outstanding Stock Options

 

Weighted Average Exercise  Price

 

Number of

Exercisable

Stock Options

 

Weighted Average Exercise  Price

2004 Plan

 

4,792

 

$

35.14

 

4,792

 

$

35.14

2004 Directors’ Plan

 

556

 

186.00

 

556

 

186.00

2013 Plan

 

189,581

 

1.48

 

189,581

 

1.48

Replacement Stock Options-Alabama Graphite

 

336,000

 

1.70

 

332,000

 

1.70

Replacement Stock Options-Anatolia Energy

 

85,233

 

8.87

 

85,233

 

8.87

 

 

616,162

 

$

3.05

 

612,162

 

$

3.06

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.



15





The following table summarizes RSU activity for the six-month periods ended June 30, 2018 and 2017:

 

 

June 30,

 

June 30,

 

 

2018

 

2017

 

 

Number of RSUs

 

Weighted-Average Grant Date Fair Value

 

Number of RSUs

 

Weighted-Average Grant Date Fair Value

Unvested RSUs at beginning of period

 

178,897 

 

$

1.40

 

8,649 

 

$

43.71

Forfeited

 

(9,429)

 

1.40

 

 

-

Vested

 

 

-

 

(3,625)

 

31.32

Unvested RSUs at end of period

 

169,468 

 

$

1.40

 

5,024 

 

$

52.64


11. 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 7,622,353 were excluded from the calculation of earnings per share because the effect on the basic income per share would be anti-dilutive for the three and six months ended June 30, 2018.

12. COMMITMENTS AND CONTINGENCIES

The Company’s uranium recovery operations are subject to federal and state regulations for the protection of the environment, including water quality.  Future closure and reclamation costs are provided for as each pound of uranium is produced on a unit-of-production basis. The Company reviews its reclamation obligations each year and determines the appropriate unit charge. The Company also evaluates the status of current environmental laws and their potential impact on their accrual for 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 its financial position, results of operations or cash flows.

13. GEOGRAPHIC AND SEGMENT INFORMATION

The Company currently operates in three reportable segments, which are uranium, lithium and graphite mining activities, including exploration, standby operations and restoration and reclamation activities.  As a part of these activities, the Company also explores, evaluates and, if warranted, permits uranium, lithium and graphite properties.  The Company’s long-term assets were $31.3 million and $42.4 million as of June 30, 2018 and December 31, 2017, respectively. The long-term assets located in the United States totaled $31.3 million or 100% and $24.4 million or 58% of total long-term assets as of June 30, 2018 and December 31, 2017, respectively.  The Company reported no revenues during the three and six months ended June 30, 2018 and June 30, 2017.

The reportable segments are those operations whose operating results are reviewed by the Chief Executive Officer to make decisions about resources to be allocated to the segment and assess its performance provided those operations pass certain quantitative thresholds.  Operations whose revenues, earnings or losses or assets exceed or are expected to exceed 10% of the total consolidated revenue, earnings or losses or assets are reportable segments.  Information about current assets and liabilities of the segments has not been provided because the information is not used to assess performance.



16





The table below provides a breakdown of the long-term assets by geographic segments as of June 30, 2018 and December 31, 2017:


 

 

June 30, 2018

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment

 

$

187

 

$

17,186

 

$

-

 

$

8,973

 

$

26,346

Restricted cash

 

-

 

3,668

 

-

 

-

 

3,668

Notes receivable, non-current

-

 

1,242

 

-

 

-

 

1,242

Total long-term assets

 

$

187

 

$

22,096

 

$

-

 

$

8,973

 

$

31,256


 

 

December 31, 2017

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

 

 

 

 

 

 

 

 

 

 

 

Net property, plant and equipment

 

$

211

 

$

35,198

 

$

-

 

$

-

 

$

35,409

Restricted cash

 

-

 

3,668

 

-

 

-

 

3,668

Notes receivable, non-current

834

 

2,494

 

-

 

-

 

3,328

Total long-term assets

 

$

1,045

 

$

41,360

 

$

-

 

$

-

 

$

42,405

The table below provides a breakdown of the geographic segments for the three months ended June 30, 2018 and June 30, 2017.  Non-mining activities and other administrative operations are reported in the Corporate column.



 

Three Months Ended

June 30, 2018

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

Statement of Operations

 

 

 

 

 

 

 

 

 

 

Mineral property expenses

 

$

 

$

830 

 

$

130 

 

$

 

$

969 

General and administrative expenses

 

1,364 

 

453 

 

 

237 

 

2,054 

Acquisition costs

 

(422)

 

 

 

 

(422)

Accretion of asset retirement costs

 

 

134 

 

 

 

134 

Impairment of uranium properties

 

 

17,968 

 

 

 

17,968 

Depreciation and amortization

 

 

31 

 

 

 

33 

 

 

943 

 

19,416 

 

130 

 

247 

 

20,736 

Loss from operations

 

(943)

 

(19,416)

 

(130)

 

(247)

 

(20,736)

Other income

 

172 

 

107 

 

 

 

279 

Loss before taxes

 

$

(771)

 

$

(19,309)

 

$

(130)

 

$

(247)

 

$

(20,457)

 

 

 

 

 



 

Three Months Ended

June 30, 2017

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

Statement of Operations

 

 

 

 

 

 

 

 

 

 

Mineral property expenses

 

$

 

$

1,323 

 

$

229 

 

$

-

 

$

1,552 

General and administrative

 

1,207 

 

401 

 

 

-

 

1,608 

Accretion of asset retirement costs

 

 

131 

 

 

-

 

131 

Depreciation and amortization

 

 

39 

 

 

-

 

39 

 

 

1,207 

 

1,894 

 

229 

 

-

 

3,330 

Loss from operations

 

(1,207)

 

(1,894)

 

(229)

 

-

 

(3,330)

Other income

 

239 

 

452 

 

 

-

 

691 

Loss before taxes

 

$

(968)

 

$

(1,442)

 

$

(229)

 

$

-

 

$

(2,639)



17








The table below provides a breakdown of the geographic segments for the six months ended June 30, 2018 and June 30, 2017.  Non-mining activities and other administrative operations are reported in the Corporate column.



 

Six Months Ended

June 30, 2018

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

Statement of Operations

 

 

 

 

 

 

 

 

 

 

Mineral property expenses

 

$

 

$

1,604 

 

$

138 

 

$

 

$

1,751 

General and administrative expenses

 

2,717 

 

905 

 

 

237 

 

3,859 

Acquisition costs

 

333 

 

 

 

 

333 

Accretion of asset retirement costs

 

 

268 

 

 

 

268 

Impairment of uranium properties

 

 

17,968 

 

 

 

17,968 

Depreciation and amortization

 

 

64 

 

 

 

67 

 

 

3,052 

 

20,809 

 

138 

 

247 

 

24,246 

Loss from operations

 

(3,052)

 

(20,809)

 

(138)

 

(247)

 

(24,246)

Other income

 

253 

 

117 

 

 

 

370 

Loss before taxes

 

$

(2,799)

 

$

(20,692)

 

$

(138)

 

$

(247)

 

$

(23,876)

 

 

 

 

 



 

Six Months Ended

June 30, 2017

(thousands of dollars)

 

Corporate

 

Uranium

 

Lithium

 

Graphite

 

Total

Statement of Operations

 

 

 

 

 

 

 

 

 

 

Mineral property expenses

 

$

 

$

1,971 

 

$

350 

 

$

-

 

$

2,321 

General and administrative expenses

 

2,519 

 

757 

 

 

-

 

3,276 

Accretion of asset retirement costs

 

 

263 

 

 

-

 

263 

Depreciation and amortization

 

 

76 

 

 

-

 

77 

 

 

2,520 

 

3,067 

 

350 

 

-

 

5,937 

Loss from operations

 

(2,520)

 

(3,067)

 

(350)

 

-

 

(5,937)

Other income

 

199 

 

4,943 

 

 

-

 

5,142 

Loss before taxes

 

$

(2,321)

 

$

1,876 

 

$

(350)

 

$

-

 

$

(795)

 

 

 

 

 


14. SUBSEQUENT EVENT

Aspire Capital - Exercise of Prepaid Warrants

On August 7, 2018, Aspire Capital exercised their prepaid warrant option to purchase 4,968,518 common shares at $0.01 per share in accordance with the terms and conditions of the Registered Direct Offering agreement dated June 14, 2018.  Additionally, Aspire Capital chose to utilize the “net share exercise” method, which resulted in the Company issuing 4,825,509 common shares on August 7, 2018.





18





ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following management’s discussion and analysis of the consolidated financial results and condition of WWR for the three and six months ended June 30, 2018 has been prepared based on information available to us as of August 8, 2018. This discussion should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto included herewith and the audited Consolidated Financial Statements of WWR for the period ended December 31, 2017 and the related notes thereto filed with our Annual Report on Form 10-K, which have been prepared in accordance with U.S. GAAP. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.  Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth elsewhere in this report. See “Cautionary Note Regarding Forward-Looking Statements.”

INTRODUCTION

 

WWR is an energy minerals exploration and energy-related materials development company. The Company’s battery materials projects include lithium and graphite mineral properties. We established our lithium business in 2016 and currently control mineral rights encompassing approximately 36,730 acres across three prospective lithium brine basins in Nevada and Utah. We have continued exploration activities as well as geological evaluation of these properties in 2018 for potential development of lithium resources that may be discovered.  We established our graphite business with the acquisition of Alabama Graphite on April 23, 2018 and its Coosa Graphite Project along with the associated Coosa Graphite Mine located across 41,900 acres in east-central Alabama.  


The Company maintains optionality on future rising uranium prices with significant uranium property holdings located in Texas and New Mexico.  In Texas, the Company has two licensed and currently idled uranium processing facilities and approximately 11,000 acres (4,400 ha) of prospective in-situ recovery uranium projects. In New Mexico, the Company controls mineral rights encompassing approximately 188,700 acres (76,394 ha) in the prolific Grants Mineral Belt, which is one of the largest concentrations of sandstone-hosted uranium deposits in the world. Incorporated in 1977 as Uranium Resources, Inc., WWR also owns an extensive uranium information database of historic drill hole logs, assay certificates, maps and technical reports for the Western United States.


Lithium, Graphite and Uranium Listed as Critical Materials


A Presidential Executive Order on a Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals was issued on December 20, 2017, which we believe will accelerate important energy related mineral development in the United States.  In conjunction with Professional Paper 1802, published by the US Geological Service (“USGS”), where 23 minerals are identified as critical to the Country’s security and economy, WWR believes these actions are important steps in support of domestic minerals development.  One of the important steps outlined in the Executive Order required a list of critical minerals to be provided by the US Secretary of the Interior.  This list was provided and included all three of WWR’s contemplated portfolio products.  Comments are being solicited at this time, and a report is to be delivered to the President by August 17, 2018 that includes recommendations to streamline permitting and leasing processes, and to support domestic refining of those critical materials.  


WWR is involved in the development of three of the critical minerals identified by the US Secretary of the Interior:   graphite, lithium, and uranium.  Lithium and graphite, in particular, are critical to the development of batteries and other energy storage systems essential to the electric vehicle, solar and wind power industries.


RECENT DEVELOPMENTS


 Impairment of Temrezli and Sefaatli Projects


On June 20, 2018, the General Directorate of Mining Affairs, a department of the Turkish Ministry of Energy and Natural Resources, notified the Company that the mining and exploration licenses for its Temrezli and Sefaatli projects located in Turkey have been revoked and potential compensation has been proffered. While the Company is investigating the legality of this action and what remedies, including compensation, might be available to the Company, the Company has determined that it is more likely than not that the Company will be unable to explore, develop, mine or otherwise benefit from the mineral properties. Therefore, the Company has determined that all of the uranium mineral holding property assets located in Turkey were fully impaired. The amount of the impairment charge reflects the accounting net book value for the uranium holding property assets and does not reflect fair market value of the assets.  The Company will recognize compensation for the mining and exploration licenses when the amount of the full and fair compensation is fixed and determinable and the ability to collect is probable.



19





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.


Acquisition of Alabama Graphite

 

On December 13, 2017, the Company entered into a binding arrangement agreement to acquire all of the issued and outstanding securities of Alabama Graphite Corp. through the issuance of new securities in the Company by way of a court-sanctioned plan of arrangement under the Business Corporation Act of British Columbia. Eligible shareholders of Alabama Graphite were offered .08 shares of the Company’s common stock for every one share of Alabama Graphite they owned.  Alabama Graphite’s shareholders approved the arrangement on March 9, 2018, and on March 19, 2018, the Supreme Court of British Columbia granted orders approving the Alabama Graphite plan of arrangement implementing the acquisition. On April 19, 2018, the Company’s stockholders approved the arrangement. Following customary Canadian regulatory approvals, the Company closed the acquisition on April 23, 2018.  At closing, the Company issued 11,625,210 shares of its common stock to the stockholders of Alabama Graphite who received approximately 28% of the combined company and current stockholders of the Company retained approximately 72%. The Company also issued replacement options and warrants for 2,508,378 shares of its common stock to the previous option and warrant holders of Alabama Graphite.


On April 23, 2018, Westwater completed the acquisition of Alabama Graphite as part of a strategic decision to refocus the Company to supply battery manufacturers with low-cost, advanced, high-quality, and high-margin graphite products. The principal asset acquired is the Coosa Graphite Project (“Coosa Project”), which includes the Coosa Graphite mine located near Sylacauga, Alabama, 50 miles southeast of Birmingham. The Coosa mine is located in an area that has been a past producer of graphite, utilizing a geology trend spanning tens of thousands of acres, known as the “Alabama Graphite Belt.” The State of Alabama remains a friendly business jurisdiction, exemplified by successfully securing a $1 billion commitment from Daimler Benz to build a lithium-ion battery factory near its automobile assembly plant in the state.


WWR believes that graphite has an important strategic place in the global economy as a high-demand commodity as electric automobiles and the batteries that power them increase production.  WWR is working with over 30 potential customers, several of which have qualification samples in hand as a first step towards potential sales.


Major components of Westwater’s graphite business plan include constructing a processing facility that purifies readily available graphite concentrates to 99.95% pure carbon.  The proposed construction is planned for 2020 based upon pilot-plant operating data that will be developed in 2019 using industry standard processes.   Once the graphite is purified, the material is further processed into the three component products which provide graphite materials with enhanced conductivity performance for battery manufacturers: Purified Micronized Graphite (PMG), Delaminated Expanded Graphite (DEXDG), and Coated Spherical Purified Graphite (CSPG).


At the same time, the Company will be developing the Coosa Graphite mine (planned for start-up 2026) on its 40,000-plus-acre mineral-rights holdings that can serve as a hedge against future feedstock costs and provide in-house quality assurance and quality control (QA/QC) for raw-material inputs.  


A detailed business plan for the Coosa Project is posted to the Westwater Resources, Inc website for your further information at http://www.westwaterresources.net.



Lithium Business

  

Option Agreement for Lithium Brine Claims

 

On March 24, 2017, the Company’s wholly owned subsidiary Lithium Holdings Nevada LLC entered into an option agreement to purchase a block of unpatented placer mining claims covering an area of approximately 3,000 acres within the Columbus Salt Marsh area of Esmeralda County, Nevada. The claims adjoin a portion of the Company’s current property holdings at its Columbus Basin project, expanding the project area within the basin to approximately 14,200 acres. On March 24, 2018, the Company exercised the option and acquired the mineral property claims in exchange for 200,000 shares of WWR common stock, which were issued on April 18, 2018 and a 1% net smelter return royalty on the claims.

 






20





Equity Financings

  

Registered Direct Offering


On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital for net proceeds of $2.9 million.  The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021.  The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”) with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.


Controlled Equity Offering Sales Agreement with Cantor Fitzgerald  


On April 14, 2017, the Company entered into the ATM Offering with Cantor acting as sales agent. Under the ATM Offering, the Company may from time to time sell shares of its common stock having an aggregate offering amount up to $30.0 million in “at-the-market” offerings, $8.0 million of which shares are registered for sale under a registration statement on Form S-3, which was declared effective on March 9, 2017. The Company pays Cantor a commission of up to 2.5% of the gross proceeds from the sale of any shares pursuant to the ATM Offering. As of August 8, 2018, the Company had sold 1,742,749 shares of common stock for net proceeds of $1.6 million under the ATM Offering. As a result, the Company had approximately $28.4 million remaining available for future sales under the ATM Offering, of which $7.8 million has been registered for sale.

 

Common Stock Purchase Agreement (“CSPA”) with Aspire Capital

 

On September 25, 2017, the Company entered into the CSPA with Aspire Capital to place up to $22.0 million in the aggregate of the Company’s common stock on an ongoing basis when required by the Company over a term of 30 months. As consideration for Aspire Capital entering into the purchase agreement, the Company issued 880,000 shares of its common stock to Aspire Capital. On September 27, 2017, pursuant to the CSPA and after satisfaction of certain commencement conditions, Aspire Capital made an initial purchase of 1,428,571 shares of common stock for which the Company received net proceeds of $2.0 million. Additionally, through its termination on June 14, 2018 in connection with the registered direct offering described above, Aspire Capital purchased an additional 2,725,096 shares of common stock for which the Company received net proceeds of $1.5 million.

 

Results of Operations

Summary

Our consolidated net loss for the three months ended June 30, 2018 was $20.4 million, or $0.51 per share, as compared with a consolidated net loss of $2.6 million, or $0.11 per share for the same period in 2017.  For the three months ended June 30, 2018, the increase in our consolidated net loss from the respective prior period was primarily the result of the impairment charge for the Temrezli and Sefaatli uranium mineral interests.  

Our consolidated net loss for the six months ended June 30, 2018 was $23.9 million, or $0.70 per share, as compared with $0.8 million, or $0.03 per share for the same period in 2017.  For the six months ended June 30, 2018, the increase in our consolidated net loss of $23.1 million from the respective prior period was the result of an impairment charge for the Temrezli and Sefaatli uranium mineral interests, an increase in acquisition related costs of $0.3 million and an increase in general and administrative expenses of $0.6 million.  These amounts were partially offset by a decrease in mineral property expenses of $0.6 million.  Additionally, there was a one-time gain on the disposal of our Churchrock and Crownpoint projects of $4.9 million in the six months ended June 30, 2017.



21





Mineral Property Expenses

The following table details our mineral property expenses for the three and six months ended June 30, 2018 and 2017:

 

For the Three Months Ended

June 30,

 

For the Six Months Ended

June 30,

 

2018

 

2017

 

2018

 

2017

 

(thousands of dollars)

Restoration/Recovery expenses

 

 

 

 

 

 

 

     Rosita Project

$

67

 

$

51

 

$

167

 

$

90

     Vasquez Project

17

 

-

 

101

 

-

          Total restoration/recovery expenses

84

 

51

 

268

 

90

 

 

 

 

 

 

 

 

Standby care and maintenance expenses

 

 

 

 

 

 

 

     Kingsville Dome Project

156

 

153

 

314

 

323

     Rosita Project

86

 

115

 

178

 

184

     Vasquez Project

64

 

100

 

138

 

192

     Temrezli Project

17

 

24

 

96

 

123

          Total standby care and maintenance expenses

323

 

392

 

726

 

822

 

 

 

 

 

 

 

 

Exploration and evaluation costs

11

 

76

 

21

 

185

 

 

 

 

 

 

 

 

Land maintenance and holding costs

551

 

1,033

 

736

 

1,224

 

 

 

 

 

 

 

 

Total mineral property expenses

$

969

 

$

1,552

 

$

1,751

 

$

2,321

For the three and six months ended June 30, 2018, mineral property expenses decreased by $0.6 million from the corresponding periods during 2017.  For both the three and six-month periods in 2018, the decreases were mostly the result of decreases in land maintenance and holding costs of $0.5 million for the Juan Tafoya and Cebolleta uranium mineral properties. Additionally, there was an increase of $0.1 million for increased reclamation activities for the Vasquez project, and was mostly offset by the decrease in exploration activities in the Lithium projects of $0.2 million during 2018.

General and Administrative Expenses

Significant expenditures for general and administrative expenses for the three and six months ended June 30, 2018 and 2017 were:

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2018

 

2017

 

2018

 

2017

 

 

(thousands of dollars)

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

$

82

 

$

16

 

$

162

 

$

38

Salaries and payroll burden

 

646

 

572

 

1,375

 

1,182

Legal, accounting, public company expenses

722

 

760

 

1,399

 

1,533

Insurance and bank fees

 

136

 

99

 

277

 

221

Consulting and professional services

 

300

 

9

 

315

 

23

Office expenses

 

114

 

109

 

237

 

216

Other expenses

 

54

 

43

 

94

 

63

Total

 

$

2,054

 

$

1,608

 

$

3,859

 

$

3,276

For the three months ended June 30, 2018, general and administrative charges increased by $0.4 million as compared with the corresponding period in 2017.  This increase was primarily due to increases in salaries and payroll burden of $0.1 and consulting and professional expenses of $0.3 million primarily related to post-acquisition Alabama Graphite operations.

For the six months ended June 30, 2018, general and administrative charges increased by $0.6 million as compared with the corresponding period in 2017.  This increase was due to increases in stock compensation expense of $0.1 million, salaries and payroll burden of $0.2 million and consulting and professional expenses of $0.3 million primarily related to post-acquisition Alabama Graphite operations.



22





Other Income and Expenses

During the three months ended June 30, 2018, the Company received proceeds of $0.1 million from the sale of scrap metal at our Texas uranium facility.  There were no such sales of scrap metal in the 2017 periods.

Financial Position

Operating Activities

Net cash used in operating activities was $6.1 million for the six months ended June 30, 2018, as compared with $6.3 million for the same period in 2017. The decrease of $0.2 million in cash used is primarily due to a decrease in cash used for general working capital requirements for the six months ending June 30, 2018.  

Investing Activities

Net cash provided by investing activities was $26,000 for the six months ended June 30, 2018, as compared with $2.0 million of cash provided by investing activities for the six months ended June 30, 2017.  For the 2018 period, the Company received note and related interest payments on the Laramide note in the amount of $1.1 million in cash.  Additionally, the Company received net proceeds of $0.5 million from the sale of Laramide securities.  These increases were mostly offset by cash used for note advances to Alabama Graphite of $0.9 million and related transaction costs of $0.6 million.  For the 2017 period, cash provided of $2.0 million relates to initial proceeds from the sale of our wholly-owned subsidiary, HRI to Laramide which closed on January 5, 2017.

Financing Activities

Net cash provided by financing activities was $4.7 million for the six months ended June 30, 2018.  For the six months ended June 30, 2018, the Company received net cash proceeds of $1.3 million, $2.9 million and $0.5 million from the sale of common stock sold through the Company’s Aspire CSPA, Aspire RDO and Cantor ATM Offering agreements, respectively.

Net cash provided by financing activities was $8.2 million for the six months ended June 30, 2017.  For the six months ended June 30, 2017, net cash proceeds of $8.9 million and $4.5 million were received upon equity financings completed in January and February 2017, respectively, and $0.3 million was received from the sale of common stock sold through the Company’s ATM Offering.  This increase was offset by the repayment of $5.5 million outstanding under the RCF Loan.

Liquidity and Capital Resources

At June 30, 2018, the Company had working capital of $2.2 million, an ATM Offering with $8.0 million remaining, of which $7.8 million was currently registered for sale and a non-current note receivable from Laramide for $2.0 million.  These sources, along with other anticipated financings, are expected to provide it with the necessary liquidity through September 30, 2019.  At December 31, 2017, the Company had working capital of $3.9 million.  The decrease in working capital of $1.7 million for the six months ended June 30, 2018 was primarily due to the following:

loan advances to Alabama Graphite to fund their pre-acquisition operating costs of $0.9 million.

a decrease of $1.0 million in the fair value of Laramide securities as of June 30, 2018.

During 2017 and 2018, the Company entered into the following financing agreements and anticipates funding from these sources to sustain operations through September 30, 2019:

Registered Direct Offering


On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital for net proceeds of $2.9 million.  The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021.  The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”) with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.



23






Controlled Equity Offering Sales Agreement


On April 14, 2017, the Company entered into a Controlled Equity Offering Sales Agreement with Cantor acting as sales agent, pursuant to which the Company has registered the offer and sale from time to time of shares of its common stock having an aggregate offering price of up to $8.0 million, of which approximately $7.8 million is available for future sales as of August 8, 2018.  


The Company believes that its current working capital balance, the remaining registered shares of the ATM Offering, the non-current note receivable from Laramide and other anticipated financings, will provide it with the necessary liquidity to fund operations through September 30, 2019.  The Company will also continue to explore additional opportunities to raise capital, further monetize its non-core assets and identify ways to reduce its cash expenditures.

While the Company has been successful in the past 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 to it in amounts sufficient to meet the Company’s needs or on terms acceptable to the Company.  In the event that funds are not available, the Company may be required to materially change its business plans.

Off- Balance Sheet Arrangements

We have no off-balance sheet arrangements.



24





CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

With the exception of historical matters, the matters discussed in this report are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding the adequacy of funding, liquidity, the timing or occurrence of any future drilling or production from the Company’s properties, the ability of the Company to acquire additional properties or partner with other companies, the potential improvements contained in the Company’s initial optimization study of the Coosa Graphite Project, the future production of graphite, including on a pilot scale, and the Company’s anticipated cash burn rate and capital requirements. Words such as “may,” “could,” “should,” “would,” “believe,” “estimate,” “expect,” “anticipate,” “plan,” “forecast,” “potential,” “intend,” “continue,” “project” and variations of these words, comparable words and similar expressions generally indicate forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, among others:

the availability of capital to WWR;

the spot price and long-term contract price of graphite, uranium and lithium;

risks associated with our foreign and domestic operations;

the ability of WWR to enter into and successfully close acquisitions, dispositions or other material transactions, and to successfully integrate acquired businesses, including Alabama Graphite;

government and tribal regulation of the graphite industry, uranium industry and lithium industry and the power industry;

operating conditions at our mining projects;

the world-wide supply and demand of graphite, uranium and lithium;

weather conditions;

unanticipated geological, processing, regulatory and legal or other problems we may encounter;

the results of our exploration activities, and the possibility that future exploration results may be materially less promising than initial exploration result;

any graphite, lithium or uranium discoveries not being in high enough concentration to make it economic to extract the metals;

currently pending or new litigation or arbitration; and

our ability to maintain and timely receive mining and other permits from regulatory agencies

as well as other factors described elsewhere in this Quarterly Report on Form 10-Q, our 2017 Annual Report on Form 10-K and the other reports we file with the SEC. Most of these factors are beyond our ability to predict or control. Future events and actual results could differ materially from those set forth herein, contemplated by or underlying the forward-looking statements. Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements made herein, except as required by law.




25






ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide this information in our Quarterly Reports.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its filings with the Securities and Exchange Commission (“SEC”) is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management has recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply judgment in evaluating the Company’s controls and procedures.

During the fiscal period covered by this report, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of June 30, 2018.

Changes in Internal Controls

During the three months ended June 30, 2018, no changes have been made in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



26






PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Information regarding reportable legal proceedings is contained in Part I, Item 3, “Legal Proceedings,” in our Annual Report on Form 10-K for the year ended December 31, 2017 and in Part II, Item 1, “Legal Proceedings,” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.  There have been no material changes to the legal proceedings previously disclosed in the Annual Report on Form 10-K, as updated in the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018.

DISPUTE WITH DOUGLAS C. BOLTON

On May 15, 2018, Alabama Graphite Corp. (“AGC”) was named as a defendant in a lawsuit filed in the Superior Court of Justice in Ontario, Canada and styled Bolton & Bolton, Inc. v. Alabama Graphite Corp., CV-18-00597888.  The plaintiff in the lawsuit is the corporate entity for Douglas C. Bolton (“Bolton”) who served as AGC’s Chief Financial Officer from September 2015 until January 2018.  The statement of claim alleges that the original consulting agreement between Bolton and AGC was supposedly amended in the August-September 2017 time frame to provide for a 12-month severance payment that was allegedly owed as a result of AGC’s termination of Bolton in January 2018.  The statement of claim seeks $108,349.45 in damages, pre-judgment and post-judgment interest, Bolton’s legal costs and other relief as may be just and proper.  On June 21, 2018, AGC filed a request to inspect documents that are identified by reference in the statement of claim.  Bolton has not yet responded to the request to inspect documents; therefore, AGC is not required to and has not answered the statement of claim.

ITEM 1A.  RISK FACTORS.

There have been no material changes from those risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2017, except for the following:


The timing and amount of compensation relating to the revocation of the mining and exploration licenses for our Temrezli and Sefaatli projects is uncertain.


On June 20, 2018, the General Directorate of Mining Affairs, a department of the Turkish Ministry of Energy and Natural Resources, notified the Company that the mining and exploration licenses for its Temrezli and Sefaatli projects located in Turkey have been revoked and potential compensation has been proffered. The Company is investigating the legality of this action and its potential remedies. While the Company intends to seek full and fair compensation for the licenses, the timing of such compensation is currently uncertain. In addition, the Company can provide no assurance about the amount of any compensation and an adverse result could have an adverse impact on the Company’s financial conditions and results of operations.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

On April 18, 2018, the Company issued 200,000 shares of common stock, with a fair value on the date of issuance of $114,000 for an option agreement to purchase a block of unpatented placer mining claims covering an area of approximately 3,000 acres within the Columbus Salt Marsh area of Esmeralda County, Nevada. In addition, on May 3, 2018, the Company issued 172,727 shares of common stock, with a fair value on the date of issuance of $95,000, for consideration of consulting services that will be provided to the Company over the ensuing twelve months. All such shares were issued pursuant to the exemption from registration set forth in Section 4(a)(2) of the Securities Act of 1933, as amended.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.  MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.  OTHER INFORMATION.

None



27





ITEM 6.  EXHIBITS.


Exhibit Number

 

Description

 

 

 

4.1

 

Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on June 15, 2018).

 

 

 

10.1

 

Securities Purchase Agreement, dated June 13, 2018, between Westwater Resources, Inc. and Aspire Capital Fund, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 15, 2018).

 

 

 

31.1

 

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

31.2

 

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

 

32.1

 

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

32.2

 

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

101.INS:

 

XBRL Instance Document

 

 

 

101.SCH:

 

XBRL Taxonomy Extension Schema Document

 

 

 

101.CAL:

 

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

 

101.DEF:

 

XBRL Taxonomy Extension Definition Linkbase Document

 

 

 

101.LAB:

 

XBRL Taxonomy Extension Label Linkbase Document

 

 

 

101.PRE:

 

XBRL Taxonomy Extension Presentation Linkbase Document





28






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.


 

WESTWATER RESOURCES, INC.

 

 

Dated: August 8, 2018

By:

/s/ Christopher M. Jones

 

 

Christopher M. Jones

 

 

President and Chief Executive Officer

(Principal Executive Officer)

 

 

 

Dated: August 8, 2018

By:

/s/ Jeffrey L. Vigil

 

 

Jeffrey L. Vigil

 

 

Vice President - Finance and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)







29


EX-31 2 ex31-1.htm CERTIFICATION Converted by EDGARwiz

Exhibit 31.1


Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, Christopher M. Jones, certify that:


1. I have reviewed this Quarterly Report on Form 10-Q of Westwater Resources, Inc.;


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and


5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):


(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and


(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.


Date: August 8, 2018



 

/s/ Christopher M. Jones

 

Title: President and Chief Executive Officer





EX-31 3 ex31-2.htm CERTIFICATION Converted by EDGARwiz

Exhibit 31.2


Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002


I, Jeffrey L. Vigil, certify that:


1. I have reviewed this Quarterly Report on Form 10-Q of Westwater Resources, Inc.;


2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.


4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and


5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):


(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and


(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.


Date:  August 8, 2018



 

/s/ Jeffrey L. Vigil

 

Title: Vice President - Finance and Chief Financial Officer




EX-32 4 ex32-1.htm CERTIFICATION Converted by EDGARwiz

Exhibit 32.1



CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


I, Christopher M. Jones, President and Chief Executive Officer of Westwater Resources, Inc. (the Company), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:


(1) The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2018 (the Report), which this certification accompanies, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.





/s/ Christopher M. Jones

 

Christopher M. Jones

 

President and Chief Executive Officer

 

August 8, 2018

 







EX-32 5 ex32-2.htm CERTIFICATION Converted by EDGARwiz

Exhibit 32.2



CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


I, Jeffrey L. Vigil, Vice President - Finance and Chief Financial Officer of Westwater Resources, Inc. (the Company), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:


(1) The Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2018 (the Report), which this certification accompanies, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.





/s/ Jeffrey L. Vigil

 

Jeffrey L. Vigil

 

Vice President - Finance and Chief Financial Officer

 

August 8, 2018

 




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Disclosure - Stock-Based Compensation - Summary of Status of Non-vested Restricted Shares (Details) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Earnings Per Share (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000050 - Disclosure - Geographic and Segment Information (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000051 - Disclosure - Geographic and Segment Information - Schedule of Segment Reporting Information (Details) link:presentationLink link:calculationLink link:definitionLink 00000052 - Disclosure - Subsequent Event (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 wwr-20180630_cal.xml EX-101.DEF 9 wwr-20180630_def.xml EX-101.LAB 10 wwr-20180630_lab.xml Property, Plant and Equipment, Type [Axis] Uranium Plant [Member] Mineral Rights and Properties [Member] Other Property Plant and Equipment [Member] Geographical [Axis] Turkey [Member] Plan Name [Axis] Replacement Stock Options - Anatolia Energy [Member] 2004 Plan [Member] 2004 Directors' Plan [Member] 2013 Plan [Member] Texas [Member] New Mexico [Member] Corporate [Member] Business Acquisition [Axis] Anatoila Energy Limited [Member] Equity Components [Axis] Common Stock [Member] Paid-In Capital [Member] Accumulated Other Comprehensive Income (Loss) [Member] Accumulated Deficit [Member] Treasury Stock [Member] Related Party [Axis] Laramide Resources Ltd [Member] Fair Value, Hierarchy [Axis] Fair Value, Inputs, Level 1 [Member] Fair Value, Inputs, Level 2 [Member] Fair Value, Inputs, Level 3 [Member] Cantor Fitzgerald & Co [Member] Award Type [Axis] ATM Offering [Member] Type of Arrangement and Non-arrangement Transactions [Axis] Common Stock Purchase Agreement [Member] Legal Entity [Axis] Aspire Capital Fund LLC [Member] Name of Property [Axis] Temrezli Project, Turkey [Member] Total Turkey Projects [Member] Kingsville Dome Project, Texas [Member] Rosita Project, Texas [Member] Vasquez Project, Texas [Member] Other Projects, Texas [Member] Total Texas Projects [Member] Juan Tafoya Project, New Mexico [Member] Total New Mexico Projects [Member] Columbus Basin Project, Nevada [Member] Total Nevada Projects [Member] Sal Rica Project, Utah [Member] Total Utah Projects [Member] 2013 Omnibus Incentive Plan [Member] Range [Axis] Maximum [Member] United States [Member] Railroad Valley, Nevada [Member] Alabama Graphite Corp. [Member] Debt Instrument [Axis] Notes Receivable - Alabama Graphite [Member] Scenario [Axis] January 5, 2020 [Member] Notes Receivable Laramide [Member] Restricted Stock Units [Member] Geographic Distribution [Axis] Long Term Assets [Member] Uranium [Member] Lithium [Member] Operating Results [Member] Alabama Graphite [Member] January 5, 2019 [Member] Laramide Resources Ltd [Member] Award Date [Axis] August 8, 2018 [Member] Common Stock Warrants [Member] Alabama [Member] Warrants and Options [Member] Cash [Member] Common Shares for Replacement of Alabama Graphite Shares [Member] Options for Replacement of Alabama Graphite Options [Member] Warrants for Replacement of Alabama Graphite Warrants [Member] Cebolleta project, New Mexico [Member] Coosa project, Alabama [Member] Total Alabama Projects [Member] Option Agreement [Member] Currency [Axis] CAD [Member] Replacement Stock Options - Alabama Graphite [Member] Graphite [Member] Options [Member] Warrant [Member] Subsequent Event Type [Axis] Subsequent Event [Member] Sale of Stock [Axis] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Entity Filer Category Entity Common Stock, Shares Outstanding Trading Symbol Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Current Assets: Cash and cash equivalents Marketable securities Notes receivable - current Prepaid and other current assets Total Current Assets Property, plant and equipment, at cost: Property, plant and equipment Less accumulated depreciation, depletion and impairment Net property, plant and equipment Restricted cash Notes receivable - non-current Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued liabilities Current portion of asset retirement obligations Total Current Liabilities Asset retirement obligations, net of current portion Other long-term liabilities and deferred credits Total Liabilities Commitments and Contingencies Stockholders' Equity: Common stock, 100,000,000 shares authorized, $.001 par value; Issued shares - 47,170,957 and 27,790,324, respectively Outstanding shares - 47,162,932 and 27,782,299, respectively Paid-in capital Accumulated other comprehensive (loss) income Accumulated deficit Treasury stock (8,025 and 8,025 shares, respectively), at cost Total Stockholders' Equity Total Liabilities and Stockholders' Equity Common stock, shares authorized Common stock par value Common stock, shares issued Common stock, shares outstanding Treasury stock, shares Income Statement [Abstract] Operating Expenses: Mineral property expenses General and administrative expenses Acquisition costs Accretion of asset retirement obligations Depreciation and amortization Impairment of uranium properties Total operating expenses Non-Operating Income/(Expenses): Loss on sale of marketable securities Loss on extinguishment of convertible debt Gain on sale of fixed assets Gain on disposal of uranium properties Interest income Other income/(expense), net Total other income Net Loss Other Comprehensive Loss Unrealized fair value decrease on marketable securities Transfer to realized loss upon sale of available-for sale securities Comprehensive Loss BASIC AND DILUTED LOSS PER SHARE WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING Statement of Cash Flows [Abstract] Operating Activities: Net loss Reconciliation of net loss to cash used in operations: Accretion of asset retirement obligations Amortization of debt discount Amortization of notes receivable discount Amortization of non-cash investor relations fees Loss on extinguishment of convertible debt Loss on sale of marketable securities Costs incurred for restoration and reclamation activities Depreciation and amortization Stock compensation expense Common stock issued for purchase of lithium mineral interests Common stock issued for consulting services Gain on disposal of fixed assets Impairment of uranium properties Effect of changes in operating working capital items: Increase in receivables and other Decrease in prepaids and other Decrease in payables and deferred credits Net Cash Used In Operating Activities Cash Flows From Investing Activities: Proceeds from the sale of securities, net Proceeds from disposal of property, plant and equipment Proceeds from note receivable Acquisition of Alabama Graphite, net of cash acquired Net Cash Provided By Investing Activities Cash Flows From Financing Activities: Payments on borrowings Issuance of common stock, net Payment of minimum withholding taxes on net share settlements of equity awards Net Cash Provided By Financing Activities Net (decrease)/increase in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, beginning of period Cash, Cash Equivalents and Restricted Cash, End of Period Cash paid during the period for: Interest Supplemental Non-Cash Information for Investing and Financing Activities: Securities received for payment of notes receivable - Laramide Securities received for asset disposal - Laramide Common stock issued for acquisition of Alabama Graphite Stock options and warrants issued for acquisition of Alabama Graphite Common stock issued for consulting services Common stock issued for purchase of lithium mineral interests Total Non-Cash Investing and Financing Activities for the Period Statement [Table] Statement [Line Items] Balance Balance, shares Common stock issued, net of issuance costs Common stock issued, net of issuance costs, shares Prepaid warrant proceeds for common stock Common stock, warrants and options issued for acquisition of Alabama Graphite Common stock, warrants and options issued for acquisition of Alabama Graphite, shares Common stock issued for consulting services Common stock issued for consulting services, shares Common stock issued for purchase of lithium mineral interests Common stock issued for 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Segment Reporting Information Payments to acquire cash restricted investments Restricted cash - pledged deposits for performance bonds Cash, cash equivalents and restricted cash shown in the statement of cash flows Working capital Net proceeds from direct offering Value of currently registered for sale Notes receivable, non-current Decrease in working capital Pre-acquisition operating cost Decrease in fair value of securities Number of shares issued during period Shares issued price per share Proceeds from issuance of common stock Number of warrants issued for common stock Prefunded warrants price per share Proceeds from issuance of warrant Warrant exercise price Warrant exercisable term Agreement termination date, description Available for future sales Percentage of acquisition of outstanding securities Total consideration Acquisition of transaction cost Common stock price per share Debt instrument conversion price per share Number of shares issued during period for acquisition Acquisition share price Due from related party Acquisition related costs Total consideration received Cash and cash equivalents Short-term receivables Prepaid expenses Property, plant, equipment and graphite mineral interests Total assets Accounts payable and accrued liabilities Total liabilities Net assets Issuance of common stock for replacements Issuance of option for replacements Issuance of warrants for replacement Secured loan Debt instrument fair value of principal Accrued interest receivable Promissory debt Debt instrument, term Debt interest rate Debt principal amount due Cash receipts discounted at market rate Number of issuance of common shares Debt interest payments Note Amount, current Plus Accrued interest, current Less Unamortized Note Discount, current Note Balance per Balance Sheet, current Note Amount, non-current Plus Accrued interest, non-current Less Unamortized Note Discount, non-current Note Balance per Balance Sheet, non-current Note Amount, current and 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Arrangements by Share-based Payment Award [Table] Share-based Compensation Arrangement by Share-based Payment Award [Line Items] Number of common stock shares reserved for future issuance Stock option vesting period Stock-based compensation expense Number of replacement options issued Sale of stock price per share Number of replacement options outstanding Number of replacement options and warrants Replacement options and warrants shares exchange rate Exercise prices for the option and warrant shares Number of replacement warrants outstanding Number of stock options outstanding, Beginning of period Number of stock options outstanding, Granted Number of stock options outstanding, Expired Number of stock options outstanding, End of period Number of stock options Exercisable, End of period Weighted average exercise price, Beginning of period Weighted average exercise price, Granted Weighted average exercise price, Expired Weighted average exercise price, End of period Weighted average exercise price Exercisable, End of period Outstanding Stock Options, Number of Outstanding Stock Options Outstanding Stock Options, Weighted Average Exercise Price Exercisable Stock Options, Number of Exercisable Stock Options Exercisable Stock Options, Weighted Average Exercise Price Number of restricted stock, Unvested Beginning of period Number of restricted stock, Forfeited Number of restricted stock, Vested Number of restricted stock, Unvested End of period Weighted Average Grant Date Fair Value, Unvested Beginning of period Weighted Average Grant Date Fair Value, Forfeited Weighted Average Grant Date Fair Value, Vested Weighted Average Grant Date Fair Value, Unvested End of period Potentially dilutive shares Number of reportable operating segment Long-term assets Long-term assets percentage Revenues Concentration risk percentage Total long-term assets Mineral property expenses General and administrative expenses Accretion of asset retirement costs Loss from operations Other income Loss before taxes Warrants to purchase common stock Warrant exercised price per shares ASX [Member] Represents the ATM Sales Agreement entered into by the entity pursuant to which the entity may sell shares of its common stock through an at-the-market share offering program. Additional Shares Termination Payments [Member] Alabama Graphite Corp [Member] Alabama Graphite [Member] All Exchanges [Axis] Alta Mesa Este Project [Member] Amortization of non-cash investor relations fees. Amortization of notes receivable discount. Anatolia Energy Limited [Member] Anatolia Energy [Member] Anatolia [Member] AnatoliaTransaction [Member] April 23, 2018 [Member] April 2018 [Member] Aspire Capital Fund LLC [Member] Aspire Capital [Member] ATM Offering [Member] Australia [Member] Australian [Member] Represents the information pertaining to BTIG, LLC. Board of Directors [Member] Butler Ranch Exploration Project [Member] Butler Ranch Project [Member] Butler Ranch Project Texas [Member] CDN [Member] Cantor Fitzgerald &amp; Co [Member] Cash, Less Transaction Costs [Member] Cebolleta Juan Tafoya Property [Member] Cebolleta Project New Mexico [Member] Cebolleta Project [Member] This element represents the project and activities related to the Cebolleta Property. Churchrock Project [Member] Churchrock Project New Mexico [Member] Churchrock Properties [Member] Columbus Basin Project [Member] Columbus Basin Project, Nevada [Member] Columbus Basin Project [Member] Columbus Salt Marsh [Member] Commitment Shares [Member] Common Stock Purchase Agreement [Member] Crownpoint Project [Member] Crownpoint Project New Mexico [Member] Total current assets recorded at fair value. Data Purchase Agreement [Member] Drop Of Acreage [Member] Energy Fuels Inc Common Stock [Member] Energy Fuels In [Member] Energy Fuels [Member] Esousa [Member] First Anniversary Date Of Closing [Member] First Five Year [Member] General Directorate [Member] Itochu Corporation [Member] Jack Pump Project [Member] January 5 In Each of 2018 and 2019 [Member] January 5, 2018 [Member] January 5, 2019[Member] January 5, 2020 [Member] January 5, 2018 [Member] January 5, 2020 [Member] January 5, 2018 [Member] January 2018 [Member] JuanTafoya Project New Mexico [Member] Juan Tafoya Project [Member] Juan Tafoya Property [Member] July and September 2016 [Member] July 18, 2017 [Member] June [Member] This element represents the project and activities related to Kingsville Dome. Kingsville Dome Project Texas [Member] Kingsville Dome project [Member] La Jara Mesa [Member] La Jara Mesa Project [Member] Lance Uranium In-situ Recovery Project [Member] Laramide Common Stock [Member] Laramide Common Stock Purchase Warrants [Member] Laramide Resources Ltd [Member] Laramide Resources [Member] Laramide&amp;#8217;s La Sal [Member] Laramide's La Sal Project [Member] Listed Options for Replacement of Anatolia Energy listed Options [Member] Lithium Holdings Nevada LLC [Member] Lithium [Member] Loan Agreement [Member] Long Term Assets [Member] Long-term assets percentage. March 1, 2018 [Member] March 01, 2018 [Member] March &amp;#8226;, 2017 [Member] May 7, 2018 [Member] May 10, 2018 [Member] Mesa SPA [Member] Mineral Property Expenditures [Text Block] Mineral Property [Member] Mineral Rights and Properties [Member] Mineral Rights and Properties Uranium [Member] NSR Royalty [Member] NASDAQ [Member] Nell Project [Member] Represents information pertaining to Neutron Energy, Inc. an acquiree of the entity. Nevada Projects [Member] New Mexico [Member] New Mexico Project [Member] Total non-current assets recorded at fair value. Notes, loans and financing receivable, gross, current and noncurrent. Notes, loans and financing receivable, net, current and noncurrent. NotesReceivable - Alabama Graphite [Member] Notes receivable Laramide [Member] November 9, 2017 [Member] Number of replacement options issued. Number of replacement options outstanding. Operating Results [Member] Option Agreement [Member] Options for Replacement of Anatolia Energy Options [Member] Other Project [Member] Other Projects, Nevada [Member] Other Projects New Mexico [Member] Other Projects Texas [Member] Other Property Plant And Equipment [Member] Performance Shares to Replace Anatolia Energy [Member] RCF Loan [Member] Railroad Valley [Member] Railroad Valley Project [Member] Railroad Valley Project, Nevada [Member] Recently Adopted Accounting Pronouncements [Policy Text Block] Registered Direct Offerings [Member] Represents the information pertaining to Resource Capital Fund V L.P. Restricted Stock Awards [Member] Restricted Stock Units [Member] Roca Honda Project [Member] Represents information pertaining to the project and activities related to the Rosita Project and Rosita South Property. Rosita Project [Member] Rosita Project Texas [Member] Rosita South Property [Member] Royalties Payable [Member] Sal Rica Project [Member] Sal Rica Project, Utah [Member] Sales commission percentage. Schedule of Cash , Cash Equivalents and Restricted Cash [Table Text Block] Schedule of Mineral Property Expenses [Table Text Block] Second Five Year [Member] Section 4 of Township 16 North [Member] Section 17 [Member] Sections 8 of Township 13 North [Member] Sections 17 of Township 13 North [Member] Represents information pertaining to the secured convertible loan facility. Securities received for asset disposal. Securities received for payment of notes receivable. Sejita Dome Project [Member] Seven Mineral Leases [Member] Common Shares for Replacement of Anatolia Energy [Member] Temrezli [Member] Temrezli Project [Member] Temrezli Project Turkey [Member] Texas [Member] Texas Project [Member] Texas Properties [Member] Total Nevada Projects [Member] Total New Mexico Projects [Member] Total Texas Projects [Member] Total Turkey Projects [Member] Total Utah Projects [Member] Turkey [Member] Turkey Project [Member] 2004 Directors Plan [Member] Two Thousand Four Stock Option Plan [Member]. 2013 Omnibus Incentive Plan [Member] 2013 Stock Option Plan [Member] UG U.S.A Inc [Member] UNC [Member] UNC Purchase Contract [Member]. U.S. [Member] Unamortized debt discount, current and noncurrent. Unamortized debt discount, current. Unamortized debt discount, noncurrent. United States [Member] Uranium [Member] Uranium Plant [Member] UsaInc [Member] Utah Projects [Member] Vasquez Project [Member] Vasquez Project Texas [Member] Vasquez, Rosita or Kingsville Properties [Member] Stock options and warrants issued for acquisition. Common stock issued for purchase of lithium mineral interests. Non cash investing and financing activities. Common stock, warrants and options issued for shares. Common Stock Warrants [Member] August 8, 2018 [Member] Alabama [Member] Warrants for Replacement of Alabama Graphite Warrants [Member] Payments to acquire cash restricted investments. Working capital. Decrease in working capital. Amount of consideration transferred, consisting of acquisition-date fair value of assets transferred by the acquirer, liabilities incurred by the acquirer, and equity interest issued by the acquirer. Issuance of common stock for replacements. Issuance of option for replacements. Issuance of warrants for replacement. Coosa project, Alabama [Member] Total Alabama Projects [Member] Prefunded warrants price per share. Replacement options and warrants shares exchange rate. Exercise prices for the option and warrant shares. Number of replacement warrants outstanding. Number of replacement options and warrants. Replacement Stock Options - Alabama Graphite [Member] Replacement Stock Options - Anatolia Energy [Member] Graphite [Member] Common stock issued for purchase of lithium mineral interests. Stock Issued During Period Value For Acquisition Of Business.. Common stock, warrants and options issued for acquisition. Pre-acquisition operating cost. Warrants and Options [Member] Options [Member] Agreement termination date, description. Railroad Valley, Nevada [Member] Gain on disposal of fixed assets. Remaining working capital. San Mateo [Member] Assets, Current Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Assets Liabilities, Current Liabilities Treasury Stock, Value Stockholders' Equity Attributable to Parent Liabilities and Equity Operating Expenses Other Comprehensive Income (Loss), Net of Tax Asset Retirement Obligation, Liabilities Settled Increase (Decrease) in Receivables Increase (Decrease) in Prepaid Expense and Other Assets Net Cash Provided by (Used in) Operating Activities Payments to Acquire Businesses, Net of Cash Acquired Net Cash Provided by (Used in) Investing Activities Repayments of Debt and Capital Lease Obligations Payments Related to Tax Withholding for Share-based Compensation Net Cash Provided by (Used in) Financing Activities Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents CommonStockIssuedForPurchaseOfLithiumMineralInterests Shares, Outstanding Stock Issued During Period, Value, Purchase of Assets Adjustments Related to Tax Withholding for Share-based Compensation Additional Area of Land in which Fee Interest Acquired by Entity Commitments and Contingencies Disclosure [Text Block] Receivables, Policy [Policy Text Block] Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents Asset Retirement Obligation Asset Retirement Obligation, Liabilities Incurred Proceeds from Sale of Available-for-sale Securities, Equity Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value Disposal Group, Including Discontinued Operation, Assets, Noncurrent Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest EX-101.PRE 11 wwr-20180630_pre.xml XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Aug. 08, 2018
Document And Entity Information    
Entity Registrant Name WESTWATER RESOURCES, INC.  
Entity Central Index Key 0000839470  
Document Type 10-Q  
Document Period End Date Jun. 30, 2018  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   51,996,466
Trading Symbol WWR  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2018  
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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current Assets:    
Cash and cash equivalents $ 2,715 $ 4,054
Marketable securities 579 1,361
Notes receivable - current 1,500 1,750
Prepaid and other current assets 611 668
Total Current Assets 5,405 7,833
Property, plant and equipment, at cost:    
Property, plant and equipment 92,014 101,187
Less accumulated depreciation, depletion and impairment (65,668) (65,778)
Net property, plant and equipment 26,346 35,409
Restricted cash 3,668 3,668
Notes receivable - non-current 1,242 3,328
Total Assets 36,661 50,238
Current Liabilities:    
Accounts payable 1,017 538
Accrued liabilities 1,642 2,352
Current portion of asset retirement obligations 526 1,078
Total Current Liabilities 3,185 3,968
Asset retirement obligations, net of current portion 5,118 4,653
Other long-term liabilities and deferred credits 500 500
Total Liabilities 8,803 9,121
Commitments and Contingencies
Stockholders' Equity:    
Common stock, 100,000,000 shares authorized, $.001 par value; Issued shares - 47,170,957 and 27,790,324, respectively Outstanding shares - 47,162,932 and 27,782,299, respectively 47 28
Paid-in capital 308,811 297,250
Accumulated other comprehensive (loss) income (676) 287
Accumulated deficit (280,066) (256,190)
Treasury stock (8,025 and 8,025 shares, respectively), at cost (258) (258)
Total Stockholders' Equity 27,858 41,117
Total Liabilities and Stockholders' Equity $ 36,661 $ 50,238
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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Common stock, shares authorized 100,000,000 100,000,000
Common stock par value $ 0.001 $ 0.001
Common stock, shares issued 47,170,957 27,790,324
Common stock, shares outstanding 47,162,932 27,782,299
Treasury stock, shares 8,025 8,025
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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Operating Expenses:        
Mineral property expenses $ (969) $ (1,552) $ (1,751) $ (2,321)
General and administrative expenses (2,054) (1,608) (3,859) (3,276)
Acquisition costs 422 (333)
Accretion of asset retirement obligations (134) (131) (268) (263)
Depreciation and amortization (33) (39) (67) (77)
Impairment of uranium properties (17,968) (17,968)
Total operating expenses (20,736) (3,330) (24,246) (5,937)
Non-Operating Income/(Expenses):        
Loss on sale of marketable securities (93)
Loss on extinguishment of convertible debt (39)
Gain on sale of fixed assets 8 8
Gain on disposal of uranium properties 506 4,927
Interest income 172 186 346 238
Other income/(expense), net 99 (1) 109 16
Total other income 279 691 370 5,142
Net Loss (20,457) (2,639) (23,876) (795)
Other Comprehensive Loss        
Unrealized fair value decrease on marketable securities (26) (591) (1,056) (161)
Transfer to realized loss upon sale of available-for sale securities 93
Comprehensive Loss $ (20,483) $ (3,230) $ (24,839) $ (956)
BASIC AND DILUTED LOSS PER SHARE $ (0.51) $ (0.11) $ (.70) $ (0.03)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 39,909,993 24,614,723 33,971,907 23,116,608
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Condensed Consolidated Statements of Cash Flows and Supplemental Cash Flow Information (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Operating Activities:    
Net loss $ (23,876) $ (795)
Reconciliation of net loss to cash used in operations:    
Accretion of asset retirement obligations 268 263
Amortization of debt discount 30
Amortization of notes receivable discount (337) (363)
Amortization of non-cash investor relations fees 13 100
Loss on extinguishment of convertible debt 39
Loss on sale of marketable securities 93
Costs incurred for restoration and reclamation activities (355) (30)
Depreciation and amortization 67 77
Stock compensation expense 162 38
Common stock issued for purchase of lithium mineral interests 114
Common stock issued for consulting services 95
Gain on disposal of fixed assets (8) (4,927)
Impairment of uranium properties 17,968
Effect of changes in operating working capital items:    
Increase in receivables and other (6) (5)
Decrease in prepaids and other 202 73
Decrease in payables and deferred credits (490) (834)
Net Cash Used In Operating Activities (6,090) (6,334)
Cash Flows From Investing Activities:    
Proceeds from the sale of securities, net 476
Proceeds from disposal of property, plant and equipment 8 1,950
Proceeds from note receivable 1,089
Acquisition of Alabama Graphite, net of cash acquired (1,547)
Net Cash Provided By Investing Activities 26 1,950
Cash Flows From Financing Activities:    
Payments on borrowings (5,500)
Issuance of common stock, net 4,730 13,705
Payment of minimum withholding taxes on net share settlements of equity awards (5) (1)
Net Cash Provided By Financing Activities 4,725 8,204
Net (decrease)/increase in cash, cash equivalents and restricted cash (1,339) 3,820
Cash, cash equivalents and restricted cash, beginning of period 7,722 7,273
Cash, Cash Equivalents and Restricted Cash, End of Period 6,383 11,093
Cash paid during the period for:    
Interest 3 227
Supplemental Non-Cash Information for Investing and Financing Activities:    
Securities received for payment of notes receivable - Laramide 750
Securities received for asset disposal - Laramide 568
Common stock issued for acquisition of Alabama Graphite 6,394
Stock options and warrants issued for acquisition of Alabama Graphite 89
Common stock issued for consulting services 95
Common stock issued for purchase of lithium mineral interests 114
Total Non-Cash Investing and Financing Activities for the Period $ 7,442 $ 568
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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($)
$ in Thousands
Common Stock [Member]
Paid-In Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Deficit [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2017 $ 28 $ 297,250 $ 287 $ (256,190) $ (258) $ 41,117
Balance, shares at Dec. 31, 2017 27,790,324          
Net loss (23,876) (23,876)
Common stock issued, net of issuance costs $ 7 3,083 3,090
Common stock issued, net of issuance costs, shares 7,361,765          
Prepaid warrant proceeds for common stock 1,640 1,640
Common stock, warrants and options issued for acquisition of Alabama Graphite $ 12 6,472 6,484
Common stock, warrants and options issued for acquisition of Alabama Graphite, shares 11,625,210          
Common stock issued for consulting services 95 95
Common stock issued for consulting services, shares 172,727          
Common stock issued for purchase of lithium mineral interests 114 114
Common stock issued for purchase of lithium mineral interests, shares 200,000          
Stock compensation expense and related share issuances, net of shares withheld for payment of taxes 162 162
Stock compensation expense and related share issuances, net of shares withheld for payment of taxes, shares 20,931          
Minimum withholding taxes on net share settlements of equity awards (5) (5)
Unrealized holding loss on marketable securities (1,056) (1,056)
Transfer to realized loss upon sale of available for sale securities 93 93
Balance at Jun. 30, 2018 $ 47 $ 308,811 $ (676) $ (280,066) $ (258) $ 27,858
Balance, shares at Jun. 30, 2018 47,170,957          
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
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”), formerly known as Uranium Resources, Inc., 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 2017 Annual Report on Form 10-K. 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, 2018 are not necessarily indicative of the results that may be expected for any other period including the full year ending December 31, 2018.

 

Recently Adopted Accounting Pronouncements

 

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows: Restricted Cash, which will require that a statement of cash flows explain the change during a period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU applies to all entities and is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adopting ASU 2016-18, the Company has included the restricted cash amount in its beginning-of-period and end-of-period reconciliations of cash on its statement of cash flows and has removed restricted cash releases of $23,000 from the investing activities section of the cash flow statement for the six months ended June 30, 2018.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01), Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business when determining whether a company has acquired or sold a business. The ASU applies to all entities and is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted under certain circumstances. The Company utilized the updated “Definition of a Business” in ASC 805 for the Alabama Graphite acquisition and determined that the transaction should be recorded as an asset acquisition under ASC 360.

 

Recently Issued Accounting Pronouncements

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize all leases, including operating leases, unless the lease is a short-term lease or a land lease for mineral properties. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for interim periods and fiscal years beginning after December 15, 2018, and early application is permitted. Currently, the only affected leases the Company holds are for equipment, office space and storage space. The Company has gathered the necessary information for proper disclosure of the leases once the ASU is effective. The Company will continue to monitor any new leases to ensure that it has all the information necessary to handle the transition to the new standard and properly report the transactions. The Company does not anticipate the new standard will affect its net income materially but will result in additional fixed assets and the related lease liabilities.

 

Cash, Cash Equivalents and Restricted Cash

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.

 

    As of June 30,  
(thousands of dollars)   2018     2017  
Cash and cash equivalents   $ 2,715     $ 7,152  
Restricted cash - pledged deposits for performance bonds     3,668       3,941  
Cash, cash equivalents and restricted cash shown in the statement of cash flows   $ 6,383     $ 11,093  

 

Funds deposited by the Company for collateralization of performance obligations are not available for the payment of general corporate obligations and are not included in cash equivalents. Restricted cash consists of pledged certificates of deposit and money market accounts. The bonds are collateralized performance bonds required for future restoration and reclamation obligations related to the Company’s South Texas production properties.

 

Notes Receivable

 

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Assets with lives beyond one year are carried at amortized cost using the effective interest method less any provision for impairment. Assets with lives under a year are undiscounted and carried at full cost. Management monitors these assets for credit quality and recoverability on a quarterly basis, including the value of any collateral. If the value of the collateral, less selling or recovery costs, exceeds the recorded investment in the asset, no impairment costs would be recorded.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Liquidity
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity

2. LIQUIDITY

At June 30, 2018, the Company had working capital of $2.2 million, an ATM Offering with $8.0 million remaining, of which $7.8 million was currently registered for sale and a non-current note receivable from Laramide for $2.0 million. These sources along with other anticipated financings is expected to provide it with the necessary liquidity through September 30, 2019. At December 31, 2017, the Company had working capital of $3.9 million. The decrease in working capital of $1.7 million for the six months ended June 30, 2018 was primarily due to the following:

loan advances to Alabama Graphite to fund their pre-acquisition operating costs of $0.9 million.
a decrease of $1.0 million in the fair value of Laramide Resources Ltd. (“Laramide”) securities as of June 30, 2018.

During 2018 and 2017, the Company entered into the following financing agreements and anticipates funding from these sources to sustain operations through September 30, 2019:

Registered Direct Offering

 

On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital Fund, LLC (“Aspire Capital”) for net proceeds of $2.9 million. The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021. The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”) with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.

 

Controlled Equity Offering Sales Agreement

 

On April 14, 2017, the Company entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. (“Cantor”) acting as sales agent, pursuant to which the Company has registered the offer and sale from time to time of shares of its common stock having an aggregate offering price of up to $8.0 million (the “ATM Offering”), of which approximately $7.8 million is available for future sales as of August 8, 2018.

The Company believes that its current working capital balance, the remaining registered shares of the ATM Offering, the non-current note receivable from Laramide and other anticipated financings will provide it with the necessary liquidity to fund operations through September 30, 2019. The Company will also continue to explore additional opportunities to raise capital, further monetize its non-core assets and identify ways to reduce its cash expenditures.

While the Company has been successful in the past 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 to it in amounts sufficient to meet the Company’s needs or on terms acceptable to the Company. In the event that funds are not available, the Company may be required to materially change its business plans.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Acquisitions

3. ACQUISITIONS

 

Acquisition of Alabama Graphite

 

On April 23, 2018, the Company completed its acquisition of 100% of the outstanding securities of Alabama Graphite Corp. for total consideration of $8.9 million. Alabama Graphite is a Canadian entity that indirectly holds a 100% interest in the Coosa graphite project located in Alabama. The consideration was comprised of $2.4 million in cash used to fund Alabama Graphite’s operating activities prior to completion of the Alabama Graphite transaction and certain related transaction costs, $6.4 million in common stock of the Company and $89,000 for warrants and options in the Company. Each Alabama Graphite ordinary share was exchanged for 0.08 common share of WWR. Each warrant and option of Alabama Graphite was also exchanged for warrants and options exercisable for common shares of WWR on the same terms and conditions as were applicable prior to the Alabama Graphite transaction, except that the exercise price was converted for the 0.08 share exchange ratio and for the USD exchange rate on the agreement date which was $0.77809 (CAD to USD) on December 13, 2017. As a result, the Company issued 11,625,210 new shares, 364,000 options and 2,144,378 warrants. The value of the Company’s common stock issued as consideration was based upon the opening share price on April 23, 2018 of $0.55. The operating results of Alabama Graphite are included in the Consolidated Statement of Operations commencing April 23, 2018.

 

The Alabama Graphite loan from WWR was $1,795,251 as of April 23, 2018 and was incorporated into the final acquisition accounting and therefore was eliminated as of June 30, 2018. Acquisition related costs were $1.9 million as of June 30, 2018, of which, $0.6 million was capitalized as additional cash consideration at the acquisition date for certain transaction costs that were directly related to the asset acquisition. Additionally, $0.4 million of the above mentioned capitalized costs were previously expensed resulting in an acquisition cost credit of $0.4 million for the three months ending June 30, 2018.

 

The acquisition of Alabama Graphite was accounted for as an asset acquisition in accordance with ASC 360 as “substantially all” of the purchase consideration was concentrated in a single identifiable asset for graphite mineral interests. WWR controls the Board of Directors and senior management positions of Alabama Graphite and has overall control over the day-to-day activities of the acquired entity.

 

The following summarizes the preliminary allocation of purchase price to the fair value of assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

Consideration:      
Cash   $ 2,397  
Issuance of 11,625,210 common shares for replacement of Alabama Graphite shares     6,394  
Issuance of 364,000 options for replacement of Alabama Graphite options     35  
Issuance of 2,144,378 warrants for replacement of Alabama Graphite warrants     54  
    $ 8,880  

 

The fair value of the consideration given was allocated as follows:      
Assets:        
Cash and cash equivalents   $ 17  
Short-term receivables     113  
Prepaid expenses     42  
Property, plant, equipment and graphite mineral interests     8,973  
Total assets     9,145  
Liabilities:        
Accounts payable and accrued liabilities     265  
Total liabilities     265  
Net assets   $ 8,880  

 

The carrying value of the current assets and liabilities assumed approximated the fair value due to the short-term nature of these items. The fair value of the graphite mineral interests was estimated using a discounted cash flow approach and market comparables. Key assumptions used in the discounted cash flow analysis include discount rates, mineral resources, future timing of production, recovery rates and future capital and operating costs.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Receivable
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Notes Receivable

4. NOTES RECEIVABLE

 

Alabama Graphite Corp. Note Receivable

 

In conjunction with its entry into the arrangement agreement to acquire Alabama Graphite, on December 13, 2017, the Company executed a secured convertible loan agreement (the “Alabama Graphite Loan”), whereby the Company agreed to provide a non-revolving convertible loan facility of up to USD $2,000,000 to Alabama Graphite for the purpose of funding operations until the acquisition could be finalized. For six months ended June 30, 2018, advances under the loan were $949,280 and accrued interest was $12,227. As of April 23, 2018, the Company had advanced $1,781,794 on the Alabama Graphite Loan and had accrued interest receivable of $13,457. This represents the total advances prior to the closing of the acquisition.

 

With the completion of the acquisition on April 23, 2018 (as discussed in Note 3), the Alabama Graphite Loan became part of the consideration paid for the acquisition and was incorporated into the purchase price allocation to the assets and liabilities of the acquired company. Due to the inclusion of the loan in the acquisition purchase price, the loan has been classified as a non-current asset at December 31, 2017 and has been eliminated with the acquisition accounting at June 30, 2018.

 

Laramide Note Receivable

 

As part of the consideration for the sale of Hydro Resources, Inc., the Company currently holds a $3.5 million promissory note, secured by a mortgage over the Churchrock and Crownpoint projects. The note has a three-year term and carries an initial interest rate of 5% which then increases to 10% upon Laramide’s decision regarding commercial production at the Churchrock project. Principal payment of $1.5 million is due and payable on January 5, 2019, with the balance of $2.0 million due and payable on January 5, 2020. Interest is payable on a quarterly basis. Laramide will have the right to satisfy up to half of each of these principal payments by delivering shares of its common stock to the Company, which shares will be valued by reference to the volume weighted average price (“VWAP”) for Laramide’s common stock for the 20 trading days before the respective anniversary of January 5, on which each payment is due. The fair value of the notes receivable was determined using the present value of the future cash receipts discounted at a market rate of 9.5%.

 

Laramide made the first required principal payment of $1.5 million on the promissory note in January 2018, consisting of $750,000 in cash and the issuance of 1,982,483 of Laramide’s common shares. Also, Laramide has made interest payments of $0.3 million in cash for the six months ending June 30, 2018.

 

The following tables show the notes receivable, accrued interest and unamortized discount on the Company’s notes receivable as of June 30, 2018 and December 31, 2017.

 

    June 30, 2018  
(thousands of dollars)   Note
Amount
    Plus Accrued
Interest
    Less
Unamortized
Note
Discount
    Note Balance
per Balance
Sheet
 
Current Assets                                
Notes receivable Laramide – current   $ 1,500     $ -     $ -     $ 1,500  
Subtotal Notes Receivable – current   $ 1,500     $ -     $ -     $ 1,500  
                                 
Non-current Assets                                
Notes receivable – Laramide – non-current   $ 2,000     $ -     $ (758 )   $ 1,242  
Total Notes Receivable – current and non-current   $ 3,500     $ -     $ (758 )   $ 2,742  

 

    December 31, 2017  
(thousands of dollars)   Note
Amount
    Plus Accrued
Interest
    Less
Unamortized
Note
Discount
    Note Balance
per Balance
Sheet
 
Current Assets                                
Notes receivable Laramide – current   $ 1,500     $ 250     $ -     $ 1,750  
Subtotal Notes Receivable – current   $ 1,500     $ 250     $ -     $ 1,750  
                                 
Non-current Assets                                
Notes receivable – Laramide – non-current   $ 3,500     $ -     $ (1,005 )   $ 2,495  
Notes receivable – Alabama Graphite Corp.     832       1       -       833  
Subtotal Notes Receivable – non-current   $ 4,332     $ 1     $ (1,005 )   $ 3,328  
Total Notes Receivable – current and non-current   $ 5,832     $ 251     $ (1,005 )   $ 5,078  

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments
6 Months Ended
Jun. 30, 2018
Investments, All Other Investments [Abstract]  
Financial Instruments

5. 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 assumptions 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 approximate 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, 2018 and December 31, 2017 and indicate the fair value hierarchy.

 

    June 30, 2018  
(thousands of dollars)   Level 1     Level 2     Level 3     Total  
Current Assets                                
Short-term available-for-sale investments   $ 579     $ -     $ -     $ 579  
Total current assets recorded at fair value   $ 579     $ -     $ -     $ 579  
Non-current Assets                                
Restricted cash   $ 3,668     $ -       -     $ 3,668  
Total non-current assets recorded at fair value   $ 3,668     $ -     $ -     $ 3,668  

 

 

  December 31, 2017  
(thousands of dollars)   Level 1     Level 2     Level 3     Total  
Current Assets                                
Short-term available-for-sale investments   $ 1,361     $ -     $ -     $ 1,361  
Total current assets recorded at fair value   $ 1,361     $ -     $ -     $ 1,361  
Non-current Assets                                
Restricted cash   $ 3,668     $ -       -     $ 3,668  
Total non-current assets recorded at fair value   $ 3,668     $ -     $ -     $ 3,668  

Assets that are measured on a recurring basis include the Company’s marketable securities and restricted cash.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

6. PROPERTY, PLANT AND EQUIPMENT

 

    Net Book Value of Property, Plant and Equipment at June 30, 2018  
(thousands of dollars)   Turkey     Texas     Alabama     New Mexico     Corporate     Total  
Uranium plant   $ -     $ 8,303     $ -     $ -     $ -     $ 8,303  
Mineral rights and properties     -       -       8,972       7,806       -       16,778  
Other property, plant and equipment     8       1,069       1       -       187       1,265  
Total   $ 8     $ 9,372     $ 8,973     $ 7,806     $ 187     $ 26,346  

 

    Net Book Value of Property, Plant and Equipment at December 31, 2017  
(thousands of dollars)   Turkey     Texas     Alabama     New Mexico     Corporate     Total  
Uranium plant   $ -     $ 8,304     $ -     $ -     $ -     $ 8,304  
Mineral rights and properties     17,968       -       -       7,806       -       25,774  
Other property, plant and equipment     11       1,109       -       -       211       1,331  
Total   $ 17,979     $ 9,413     $ -     $ 7,806     $ 211     $ 35,409  

 

Impairment of Temrezli and Sefaatli Projects

 

On June 20, 2018, the General Directorate of Mining Affairs, a department of the Turkish Ministry of Energy and Natural Resources, notified the Company that the mining and exploration licenses for its Temrezli and Sefaatli projects located in Turkey have been revoked and potential compensation has been proffered. While the Company is investigating the legality of this action and what remedies, including compensation, might be available to the Company, the Company has determined that it is more likely than not that the Company will be unable to explore, develop, mine or otherwise benefit from the mineral properties. Therefore, the Company has determined that all of the uranium mineral holding property assets located in Turkey were fully impaired. The Company will recognize compensation for the mining and exploration licenses when the amount of the full and fair compensation is fixed and determinable and the ability to collect is probable.

 

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.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Mineral Property Expenditures
6 Months Ended
Jun. 30, 2018
Mineral Property Expenditures  
Mineral Property Expenditures

7. MINERAL PROPERTY EXPENDITURES

 

Mineral property expenditures by geographical location for the three and six months ended June 30, 2018 and 2017 are as follows:

 

    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2018     2017     2018     2017  
    (thousands of dollars)  
Temrezli project, Turkey   $ 17     $ 24     $ 96     $ 123  
Total Turkey projects     17       24       96       123  
                                 
Kingsville Dome project, Texas     172       155       423       418  
Rosita project, Texas     158       172       355       284  
Vasquez project, Texas     97       114       331       283  
Other projects, Texas     (6 )     1       1       2  
Total Texas projects     421       442       1,110       987  
                                 
Cebolleta project, New Mexico     389       538       389       538  
Juan Tafoya project, New Mexico     3       312       9       318  
Total New Mexico projects     392       850       398       856  
                                 
Columbus Basin project, Nevada     120       74       122       191  
Railroad Valley project, Nevada     12       155       16       158  
Total Nevada projects     132       229       138       349  
                                 
Sal Rica project, Utah     (2 )     7       -       6  
Total Utah projects     (2 )     7       -       6  
                                 
Coosa project, Alabama     9       -       9       -  
Total Alabama Projects     9       -       9       -  
                                 
Total expense for the period   $ 969       1,552        $ 1 751     $ 2,321  

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Asset Retirement Obligations
6 Months Ended
Jun. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

8. ASSET RETIREMENT OBLIGATIONS

 

The following table summarizes the changes in the reserve for future restoration and reclamation costs on the balance sheet:

 

    June 30, 2018     December 31, 2017  
(thousands of dollars)            
Balance, beginning of period   $ 5,731     $ 4,789  
Liabilities settled     (355 )     (97 )
Accretion expense     268       1,039  
Balance, end of period     5,644       5,731  
Less: Current portion     (526 )     (1,078 )
Non-current portion   $ 5,118     $ 4,653  

 

The Company is currently performing plugging and surface reclamation activities at its Rosita and Vasquez projects located in Duval County, Texas. The Company’s current liability of $0.5 million consists of the estimated costs associated with current reclamation activities through June 2019 at the Company’s Rosita and Vasquez projects.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Common Stock
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Common Stock

9. COMMON STOCK

Common Stock Issued, Net of Issuance Costs

Registered Direct Offering

 

On June 14, 2018, the Company completed a registered direct offering of securities with Aspire Capital for net proceeds of $2.9 million. The securities consisted of 3,717,773 shares of common stock at a price of $0.34 per share for net proceeds of $1.3 million and 4,968,518 pre-funded common stock warrants at a price of $0.33 per warrant for net proceeds of $1.6 million. The exercise price of the warrants is $0.01 per share and the warrants are exercisable at any time and from time to time through June 14, 2021. The Company did not incur underwriting discounts or commissions with this offering. The previous Common Stock Purchase Agreement (“CSPA”), with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.

 

 

Controlled Equity Offering Sales Agreement with Cantor Fitzgerald (“Cantor”)

 

On April 14, 2017, the Company entered into the ATM Offering with Cantor acting as sales agent. Under the ATM Offering, the Company may from time to time sell shares of its common stock having an aggregate offering amount up to $30.0 million in “at-the-market” offerings, $8.0 million of which shares are registered for sale under a registration statement on Form S-3, which was declared effective on March 9, 2017. The Company pays Cantor a commission of up to 2.5% of the gross proceeds from the sale of any shares pursuant to the ATM Offering. As of August 8, 2018, the Company had sold 1,742,749 shares of common stock for net proceeds of $1.6 million under the ATM Offering, of which, 1,068,896 shares of common stock and net proceeds of $0.5 million was sold in the six months ended June 30, 2018. As a result, the Company had approximately $28.4 million remaining available for future sales under the ATM Offering, of which $7.8 million has been registered for sale.

 

Common Stock Purchase Agreement (“CSPA”) with Aspire Capital

 

On September 25, 2017, the Company entered into the CSPA with Aspire Capital to place up to $22.0 million in the aggregate of the Company’s common stock on an ongoing basis when required by the Company over a term of 30 months. As consideration for Aspire Capital entering into the purchase agreement, the Company issued 880,000 shares of its common stock to Aspire Capital.

 

On September 27, 2017, pursuant to the CSPA and after satisfaction of certain commencement conditions, Aspire Capital made an initial purchase of 1,428,571 shares of common stock for which the Company received net proceeds of $2.0 million. Additionally, through its termination on June 14, 2018 in connection with the registered direct offering described above, Aspire Capital purchased an additional 2,725,096 shares of common stock for which the Company received net proceeds of $1.5 million.

Common Stock Issued for Acquisition of Alabama Graphite

As discussed in Note 3 above, the Company issued 11,625,210 shares of common stock in exchange for 100% of the outstanding shares of Alabama Graphite as part of the purchase consideration paid to acquire Alabama Graphite.

Common Stock Issued for Purchase of Lithium Properties

On April 18, 2018, the Company issued 200,000 shares of common stock, with a fair value on the date of issuance of $114,000 for an option agreement to purchase a block of unpatented placer mining claims covering an area of approximately 3,000 acres within the Columbus Salt Marsh area of Esmeralda County, Nevada.

Common Stock Issued for Consulting Services

On May 3, 2018, the Company issued 172,727 shares of common stock, with a fair value on the date of issuance of $95,000 for consideration of consulting services that will be provided to the Company over the ensuing twelve months.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

10. STOCK-BASED COMPENSATION

 

Stock-based compensation awards consist of stock options, restricted stock units, restricted stock awards and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan”); the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan”); and the 2004 Stock Incentive Plan (the “2004 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, the Company’s stockholders approved an amendment to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 1.0 million shares and re-approve the material terms of the performance goals under such plan. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards (“RSAs”), 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. The maximum number of the Company’s common stock that may be reserved for issuance under the 2013 Plan is 1,083,333 shares of common stock, plus unissued shares under the prior plans. 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, 2018, 462,594 shares were available for future issuances under the 2013 Plan. For the three months ending June 30, 2018 and 2017, the Company recorded stock-based compensation expense of $81,569 and $15,890, respectively. For the six months ending June 30, 2018 and 2017, the Company recorded stock-based compensation expense of $162,242 and $38,078, 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 Anatolia Energy Limited in November 2015, the Company issued 374,749 replacement options and performance shares to the option holders and performance shareholders of Anatolia Energy Limited. The number of replacement options and performance shares was based upon the Black-Scholes value with the exercise prices of the replacement options and performance shares determined using the exchange rate of 0.00548. The options and performance shares were issued with the same terms and conditions as were applicable prior to the acquisition of Anatolia Energy Limited. As of June 30, 2018, there were 85,233 replacement options outstanding and no performance shares outstanding.

 

In addition to the plans above, upon closing of the Company’s acquisition of Alabama Graphite in April 2018, the Company issued 2,508,378 replacement options and warrants to the option and warrant holders of Alabama Graphite. The number of replacement options and warrants shares was determined using the arrangement exchange rate of 0.08. The exercise prices for the option and warrant shares were first converted for the exchange rate of 0.08 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, 2018, there were 336,000 replacement options and 1,348,872 replacement warrants outstanding.

 

Stock Options

 

The following table summarizes stock options outstanding and changes for the six-month periods ending June 30, 2018 and 2017:

 

    June 30, 2018     June 30, 2017  
    Number of
Stock
Options
    Weighted Average
Exercise
Price
    Number of
Stock
Options
    Weighted Average
Exercise
Price
 
Stock options outstanding at beginning of period     286,174     $ 5.53       110,828     $ 18.24  
Granted     364,000       1.68       -       -  
Expired     (34,012 )     9.33       (5,583 )     11.04  
Stock options outstanding at end of period     616,162     $ 3.05       105,245     $ 18.62  
Stock options exercisable at end of period     612,162     $ 3.06       105,139     $ 18.60  

 

The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2018:

 

    Outstanding Stock Options     Exercisable Stock Options  
Stock Option Plan   Number of Outstanding Stock Options     Weighted Average Exercise Price    

Number of

Exercisable

Stock Options

    Weighted Average
Exercise Price
 
2004 Plan     4,792     $ 35.14       4,792     $ 35.14  
2004 Directors’ Plan     556       186.00       556       186.00  
2013 Plan     189,581       1.48       189,581       1.48  
Replacement Stock Options-Alabama Graphite     336,000       1.70       332,000       1.70  
Replacement Stock Options-Anatolia Energy     85,233       8.87       85,233       8.87  
      616,162     $ 3.05       612,162     $ 3.06  

 

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 table summarizes RSU activity for the six-month periods ended June 30, 2018 and 2017:

 

    June 30, 2018     June 30, 2017  
    Number of RSUs     Weighted-
Average
Grant Date
Fair Value
    Number of
RSUs
    Weighted-
Average
Grant Date
Fair Value
 
Unvested RSUs at beginning of period     178,897     $ 1.40       8,649     $ 43.71  
Forfeited     (9,429 )     1.40       -       -  
Vested     -       -       (3,625 )     31.32  
Unvested RSUs at end of period     169,468     $ 1.40       5,024     $ 52.64  

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share

11. 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 7,622,353 were excluded from the calculation of earnings per share because the effect on the basic income per share would be anti-dilutive for the three and six months ended June 30, 2018.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

12. COMMITMENTS AND CONTINGENCIES

 

The Company’s uranium recovery operations are subject to federal and state regulations for the protection of the environment, including water quality. Future closure and reclamation costs are provided for as each pound of uranium is produced on a unit-of-production basis. The Company reviews its reclamation obligations each year and determines the appropriate unit charge. The Company also evaluates the status of current environmental laws and their potential impact on their accrual for 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 its financial position, results of operations or cash flows.

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Geographic and Segment Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Geographic and Segment Information

13. GEOGRAPHIC AND SEGMENT INFORMATION

The Company currently operates in three reportable segments, which are uranium, lithium and graphite mining activities, including exploration, standby operations and restoration and reclamation activities. As a part of these activities, the Company also explores, evaluates and, if warranted, permits uranium, lithium and graphite properties. The Company’s long-term assets were $31.3 million and $42.4 million as of June 30, 2018 and December 31, 2017, respectively. The long-term assets located in the United States totaled $31.3 million or 100% and $24.4 million or 58% of total long-term assets as of June 30, 2018 and December 31, 2017, respectively. The Company reported no revenues during the three and six months ended June 30, 2018 and June 30, 2017.

The reportable segments are those operations whose operating results are reviewed by the Chief Executive Officer to make decisions about resources to be allocated to the segment and assess its performance provided those operations pass certain quantitative thresholds. Operations whose revenues, earnings or losses or assets exceed or are expected to exceed 10% of the total consolidated revenue, earnings or losses or assets are reportable segments. Information about current assets and liabilities of the segments has not been provided because the information is not used to assess performance.

The table below provides a breakdown of the long-term assets by geographic segments as of June 30, 2018 and December 31, 2017:

 

   June 30, 2018 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
                     
Net property, plant and equipment  $187   $17,186   $  -   $8,973   $26,346 
Restricted cash   -    3,668    -    -    3,668 
Notes receivable, non-current   -    1,242    -    -    1,242 
Total long-term assets  $187   $22,096   $-   $8,973   $31,256 

 

   December 31, 2017 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
                     
Net property, plant and equipment  $211   $35,198   $     -   $  -   $35,409 
Restricted cash   -    3,668    -    -    3,668 
Notes receivable, non-current   834    2,494    -    -    3,328 
Total long-term assets  $1,045   $41,360   $-   $-   $42,405 

The table below provides a breakdown of the geographic segments for the three months ended June 30, 2018 and June 30, 2017. Non-mining activities and other administrative operations are reported in the Corporate column.

 

   Three Months Ended June 30, 2018 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $830   $130   $9   $969 
General and administrative expenses   1,364    453    -    237    2,054 
Acquisition costs   (422)   -    -    -    (422)
Accretion of asset retirement costs   -    134    -    -    134 
Impairment of uranium properties   -    17,968    -    -    17,968 
Depreciation and amortization   1    31    -    1    33 
    943    19,416    130    247    20,736 
Loss from operations   (943)   (19,416)   (130)   (247)   (20,736)
Other income   172    107    -    -    279 
Loss before taxes  $(771)  $(19,309)  $(130)  $(247)  $(20,457)

 

   Three Months Ended June 30, 2017 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,323   $229   $  -   $1,552 
General and administrative   1,207    401    -    -    1,608 
Accretion of asset retirement costs   -    131    -    -    131 
Depreciation and amortization   -    39    -        -    39 
    1,207    1,894    229    -    3,330 
Loss from operations   (1,207)   (1,894)   (229)   -    (3,330)
Other income   239    452    -    -    691 
Loss before taxes  $(968)  $(1,442)  $(229)  $-   $(2,639)

 

The table below provides a breakdown of the geographic segments for the six months ended June 30, 2018 and June 30, 2017. Non-mining activities and other administrative operations are reported in the Corporate column.

 

   Six Months Ended June 30, 2018 
(thousands of dollars)  Corporate     Uranium     Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,604   $138   $9   $1,751 
General and administrative expenses   2,717    905    -    237    3,859 
Acquisition costs   333    -    -    -    333 
Accretion of asset retirement costs   -    268    -    -    268 
Impairment of uranium properties   -    17,968    -    -    17,968 
Depreciation and amortization   2    64    -    1    67 
    3,052    20,809    138    247    24,246 
Loss from operations   (3,052)   (20,809)   (138)   (247)   (24,246)
Other income   253    117    -    -    370 
Loss before taxes  $(2,799)  $(20,692)  $(138)  $(247)  $(23,876)

 

  

Six Months Ended June 30, 2017

(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,971   $350   $-   $2,321 
General and administrative expenses   2,519    757    -    -    3,276 
Accretion of asset retirement costs   -    263    -    -    263 
Depreciation and amortization   1    76    -       -    77 
    2,520    3,067    350    -    5,937 
Loss from operations   (2,520)   (3,067)   (350)   -    (5,937)
Other income   199    4,943    -    -    5,142 
Loss before taxes  $(2,321)  $1,876   $(350)  $-   $(795)

 

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Event
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Event

14. Subsequent Event

Aspire Capital - Exercise of Prepaid Warrants

On August 7, 2018, Aspire Capital exercised their prepaid warrant option to purchase 4,968,518 common shares at $0.01 per share in accordance with the terms and conditions of the Registered Direct Offering agreement dated June 14, 2018. Additionally, Aspire Capital chose to utilize the “net share exercise” method, which resulted in the Company issuing 4,825,509 common shares on August 7, 2018.

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

 

In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows: Restricted Cash, which will require that a statement of cash flows explain the change during a period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU applies to all entities and is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adopting ASU 2016-18, the Company has included the restricted cash amount in its beginning-of-period and end-of-period reconciliations of cash on its statement of cash flows and has removed restricted cash releases of $23,000 from the investing activities section of the cash flow statement for the six months ended June 30, 2018.

 

In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01), Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business when determining whether a company has acquired or sold a business. The ASU applies to all entities and is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted under certain circumstances. The Company utilized the updated “Definition of a Business” in ASC 805 for the Alabama Graphite acquisition and determined that the transaction should be recorded as an asset acquisition under ASC 360.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize all leases, including operating leases, unless the lease is a short-term lease or a land lease for mineral properties. ASU 2016-02 also requires additional disclosures regarding leasing arrangements. ASU 2016-02 is effective for interim periods and fiscal years beginning after December 15, 2018, and early application is permitted. Currently, the only affected leases the Company holds are for equipment, office space and storage space. The Company has gathered the necessary information for proper disclosure of the leases once the ASU is effective. The Company will continue to monitor any new leases to ensure that it has all the information necessary to handle the transition to the new standard and properly report the transactions. The Company does not anticipate the new standard will affect its net income materially but will result in additional fixed assets and the related lease liabilities.

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 consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.

 

    As of June 30,  
(thousands of dollars)   2018     2017  
Cash and cash equivalents   $ 2,715     $ 7,152  
Restricted cash - pledged deposits for performance bonds     3,668       3,941  
Cash, cash equivalents and restricted cash shown in the statement of cash flows   $ 6,383     $ 11,093  

 

Funds deposited by the Company for collateralization of performance obligations are not available for the payment of general corporate obligations and are not included in cash equivalents. Restricted cash consists of pledged certificates of deposit and money market accounts. The bonds are collateralized performance bonds required for future restoration and reclamation obligations related to the Company’s South Texas production properties.

Notes Receivable

Notes Receivable

 

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Assets with lives beyond one year are carried at amortized cost using the effective interest method less any provision for impairment. Assets with lives under a year are undiscounted and carried at full cost. Management monitors these assets for credit quality and recoverability on a quarterly basis, including the value of any collateral. If the value of the collateral, less selling or recovery costs, exceeds the recorded investment in the asset, no impairment costs would be recorded.

XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Tables)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Schedule of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.

 

    As of June 30,  
(thousands of dollars)   2018     2017  
Cash and cash equivalents   $ 2,715     $ 7,152  
Restricted cash - pledged deposits for performance bonds     3,668       3,941  
Cash, cash equivalents and restricted cash shown in the statement of cash flows   $ 6,383     $ 11,093  

XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions (Tables)
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Schedule of Fair Value of Assets Acquired and Liabilities Assumed

The following summarizes the preliminary allocation of purchase price to the fair value of assets acquired and liabilities assumed as of the acquisition date (in thousands):

 

Consideration:      
Cash   $ 2,397  
Issuance of 11,625,210 common shares for replacement of Alabama Graphite shares     6,394  
Issuance of 364,000 options for replacement of Alabama Graphite options     35  
Issuance of 2,144,378 warrants for replacement of Alabama Graphite warrants     54  
    $ 8,880  

 

The fair value of the consideration given was allocated as follows:      
Assets:        
Cash and cash equivalents   $ 17  
Short-term receivables     113  
Prepaid expenses     42  
Property, plant, equipment and graphite mineral interests     8,973  
Total assets     9,145  
Liabilities:        
Accounts payable and accrued liabilities     265  
Total liabilities     265  
Net assets   $ 8,880  

XML 35 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Receivable (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Notes Receivable

The following tables show the notes receivable, accrued interest and unamortized discount on the Company’s notes receivable as of June 30, 2018 and December 31, 2017.

 

    June 30, 2018  
(thousands of dollars)   Note
Amount
    Plus Accrued
Interest
    Less
Unamortized
Note
Discount
    Note Balance
per Balance
Sheet
 
Current Assets                                
Notes receivable Laramide – current   $ 1,500     $ -     $ -     $ 1,500  
Subtotal Notes Receivable – current   $ 1,500     $ -     $ -     $ 1,500  
                                 
Non-current Assets                                
Notes receivable – Laramide – non-current   $ 2,000     $ -     $ (758 )   $ 1,242  
Total Notes Receivable – current and non-current   $ 3,500     $ -     $ (758 )   $ 2,742  

 

    December 31, 2017  
(thousands of dollars)   Note
Amount
    Plus Accrued
Interest
    Less
Unamortized
Note
Discount
    Note Balance
per Balance
Sheet
 
Current Assets                                
Notes receivable Laramide – current   $ 1,500     $ 250     $ -     $ 1,750  
Subtotal Notes Receivable – current   $ 1,500     $ 250     $ -     $ 1,750  
                                 
Non-current Assets                                
Notes receivable – Laramide – non-current   $ 3,500     $ -     $ (1,005 )   $ 2,495  
Notes receivable – Alabama Graphite Corp.     832       1       -       833  
Subtotal Notes Receivable – non-current   $ 4,332     $ 1     $ (1,005 )   $ 3,328  
Total Notes Receivable – current and non-current   $ 5,832     $ 251     $ (1,005 )   $ 5,078  

XML 36 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Investments, All Other Investments [Abstract]  
Schedule of Fair Value on Recurring and Non-recurring Basis

The following table presents information about assets that were recorded at fair value on a recurring and non-recurring basis as of June 30, 2018 and December 31, 2017 and indicate the fair value hierarchy.

 

    June 30, 2018  
(thousands of dollars)   Level 1     Level 2     Level 3     Total  
Current Assets                                
Short-term available-for-sale investments   $ 579     $ -     $ -     $ 579  
Total current assets recorded at fair value   $ 579     $ -     $ -     $ 579  
Non-current Assets                                
Restricted cash   $ 3,668     $ -       -     $ 3,668  
Total non-current assets recorded at fair value   $ 3,668     $ -     $ -     $ 3,668  

 

 

  December 31, 2017  
(thousands of dollars)   Level 1     Level 2     Level 3     Total  
Current Assets                                
Short-term available-for-sale investments   $ 1,361     $ -     $ -     $ 1,361  
Total current assets recorded at fair value   $ 1,361     $ -     $ -     $ 1,361  
Non-current Assets                                
Restricted cash   $ 3,668     $ -       -     $ 3,668  
Total non-current assets recorded at fair value   $ 3,668     $ -     $ -     $ 3,668  
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

    Net Book Value of Property, Plant and Equipment at June 30, 2018  
(thousands of dollars)   Turkey     Texas     Alabama     New Mexico     Corporate     Total  
Uranium plant   $ -     $ 8,303     $ -     $ -     $ -     $ 8,303  
Mineral rights and properties     -       -       8,972       7,806       -       16,778  
Other property, plant and equipment     8       1,069       1       -       187       1,265  
Total   $ 8     $ 9,372     $ 8,973     $ 7,806     $ 187     $ 26,346  

 

    Net Book Value of Property, Plant and Equipment at December 31, 2017  
(thousands of dollars)   Turkey     Texas     Alabama     New Mexico     Corporate     Total  
Uranium plant   $ -     $ 8,304     $ -     $ -     $ -     $ 8,304  
Mineral rights and properties     17,968       -       -       7,806       -       25,774  
Other property, plant and equipment     11       1,109       -       -       211       1,331  
Total   $ 17,979     $ 9,413     $ -     $ 7,806     $ 211     $ 35,409  

XML 38 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Mineral Property Expenditures (Tables)
6 Months Ended
Jun. 30, 2018
Mineral Property Expenditures  
Schedule of Mineral Property Expenditures

Mineral property expenditures by geographical location for the three and six months ended June 30, 2018 and 2017 are as follows:

 

    For the Three Months Ended June 30,     For the Six Months Ended June 30,  
    2018     2017     2018     2017  
    (thousands of dollars)  
Temrezli project, Turkey   $ 17     $ 24     $ 96     $ 123  
Total Turkey projects     17       24       96       123  
                                 
Kingsville Dome project, Texas     172       155       423       418  
Rosita project, Texas     158       172       355       284  
Vasquez project, Texas     97       114       331       283  
Other projects, Texas     (6 )     1       1       2  
Total Texas projects     421       442       1,110       987  
                                 
Cebolleta project, New Mexico     389       538       389       538  
Juan Tafoya project, New Mexico     3       312       9       318  
Total New Mexico projects     392       850       398       856  
                                 
Columbus Basin project, Nevada     120       74       122       191  
Railroad Valley project, Nevada     12       155       16       158  
Total Nevada projects     132       229       138       349  
                                 
Sal Rica project, Utah     (2 )     7       -       6  
Total Utah projects     (2 )     7       -       6  
                                 
Coosa project, Alabama     9       -       9       -  
Total Alabama Projects     9       -       9       -  
                                 
Total expense for the period   $ 969       1,552        $ 1 751     $ 2,321  

XML 39 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Asset Retirement Obligations (Tables)
6 Months Ended
Jun. 30, 2018
Asset Retirement Obligation Disclosure [Abstract]  
Summary of Asset Retirement Obligations

The following table summarizes the changes in the reserve for future restoration and reclamation costs on the balance sheet:

 

    June 30, 2018     December 31, 2017  
(thousands of dollars)            
Balance, beginning of period   $ 5,731     $ 4,789  
Liabilities settled     (355 )     (97 )
Accretion expense     268       1,039  
Balance, end of period     5,644       5,731  
Less: Current portion     (526 )     (1,078 )
Non-current portion   $ 5,118     $ 4,653  

XML 40 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Options Outstanding

The following table summarizes stock options outstanding and changes for the six-month periods ending June 30, 2018 and 2017:

 

    June 30, 2018     June 30, 2017  
    Number of
Stock
Options
    Weighted Average
Exercise
Price
    Number of
Stock
Options
    Weighted Average
Exercise
Price
 
Stock options outstanding at beginning of period     286,174     $ 5.53       110,828     $ 18.24  
Granted     364,000       1.68       -       -  
Expired     (34,012 )     9.33       (5,583 )     11.04  
Stock options outstanding at end of period     616,162     $ 3.05       105,245     $ 18.62  
Stock options exercisable at end of period     612,162     $ 3.06       105,139     $ 18.60  

Summary of Stock Options Outstanding and Exercisable by Stock Option Plan

The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2018:

 

    Outstanding Stock Options     Exercisable Stock Options  
Stock Option Plan   Number of Outstanding Stock Options     Weighted Average Exercise Price    

Number of

Exercisable

Stock Options

    Weighted Average
Exercise Price
 
2004 Plan     4,792     $ 35.14       4,792     $ 35.14  
2004 Directors’ Plan     556       186.00       556       186.00  
2013 Plan     189,581       1.48       189,581       1.48  
Replacement Stock Options-Alabama Graphite     336,000       1.70       332,000       1.70  
Replacement Stock Options-Anatolia Energy     85,233       8.87       85,233       8.87  
      616,162     $ 3.05       612,162     $ 3.06  

Summary of Status of Non-vested Restricted Shares

The following table summarizes RSU activity for the six-month periods ended June 30, 2018 and 2017:

 

    June 30, 2018     June 30, 2017  
    Number of RSUs     Weighted-
Average
Grant Date
Fair Value
    Number of
RSUs
    Weighted-
Average
Grant Date
Fair Value
 
Unvested RSUs at beginning of period     178,897     $ 1.40       8,649     $ 43.71  
Forfeited     (9,429 )     1.40       -       -  
Vested     -       -       (3,625 )     31.32  
Unvested RSUs at end of period     169,468     $ 1.40       5,024     $ 52.64  

XML 41 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Geographic and Segment Information (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information

The table below provides a breakdown of the long-term assets by geographic segments as of June 30, 2018 and December 31, 2017:

 

   June 30, 2018 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
                     
Net property, plant and equipment  $187   $17,186   $  -   $8,973   $26,346 
Restricted cash   -    3,668    -    -    3,668 
Notes receivable, non-current   -    1,242    -    -    1,242 
Total long-term assets  $187   $22,096   $-   $8,973   $31,256 

 

   December 31, 2017 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
                     
Net property, plant and equipment  $211   $35,198   $     -   $  -   $35,409 
Restricted cash   -    3,668    -    -    3,668 
Notes receivable, non-current   834    2,494    -    -    3,328 
Total long-term assets  $1,045   $41,360   $-   $-   $42,405 

The table below provides a breakdown of the geographic segments for the three months ended June 30, 2018 and June 30, 2017. Non-mining activities and other administrative operations are reported in the Corporate column.

 

   Three Months Ended June 30, 2018 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $830   $130   $9   $969 
General and administrative expenses   1,364    453    -    237    2,054 
Acquisition costs   (422)   -    -    -    (422)
Accretion of asset retirement costs   -    134    -    -    134 
Impairment of uranium properties   -    17,968    -    -    17,968 
Depreciation and amortization   1    31    -    1    33 
    943    19,416    130    247    20,736 
Loss from operations   (943)   (19,416)   (130)   (247)   (20,736)
Other income   172    107    -    -    279 
Loss before taxes  $(771)  $(19,309)  $(130)  $(247)  $(20,457)

 

   Three Months Ended June 30, 2017 
(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,323   $229   $  -   $1,552 
General and administrative   1,207    401    -    -    1,608 
Accretion of asset retirement costs   -    131    -    -    131 
Depreciation and amortization   -    39    -        -    39 
    1,207    1,894    229    -    3,330 
Loss from operations   (1,207)   (1,894)   (229)   -    (3,330)
Other income   239    452    -    -    691 
Loss before taxes  $(968)  $(1,442)  $(229)  $-   $(2,639)

 

The table below provides a breakdown of the geographic segments for the six months ended June 30, 2018 and June 30, 2017. Non-mining activities and other administrative operations are reported in the Corporate column.

 

   Six Months Ended June 30, 2018 
(thousands of dollars)  Corporate     Uranium     Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,604   $138   $9   $1,751 
General and administrative expenses   2,717    905    -    237    3,859 
Acquisition costs   333    -    -    -    333 
Accretion of asset retirement costs   -    268    -    -    268 
Impairment of uranium properties   -    17,968    -    -    17,968 
Depreciation and amortization   2    64    -    1    67 
    3,052    20,809    138    247    24,246 
Loss from operations   (3,052)   (20,809)   (138)   (247)   (24,246)
Other income   253    117    -    -    370 
Loss before taxes  $(2,799)  $(20,692)  $(138)  $(247)  $(23,876)

 

  

Six Months Ended June 30, 2017

(thousands of dollars)  Corporate   Uranium   Lithium   Graphite   Total 
Statement of Operations                    
Mineral property expenses  $-   $1,971   $350   $-   $2,321 
General and administrative expenses   2,519    757    -    -    3,276 
Accretion of asset retirement costs   -    263    -    -    263 
Depreciation and amortization   1    76    -       -    77 
    2,520    3,067    350    -    5,937 
Loss from operations   (2,520)   (3,067)   (350)   -    (5,937)
Other income   199    4,943    -    -    5,142 
Loss before taxes  $(2,321)  $1,876   $(350)  $-   $(795)
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation (Details Narrative)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Accounting Policies [Abstract]  
Payments to acquire cash restricted investments $ 23
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Basis of Presentation - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Accounting Policies [Abstract]        
Cash and cash equivalents $ 2,715 $ 4,054 $ 7,152  
Restricted cash - pledged deposits for performance bonds 3,668   3,941  
Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 6,383 $ 7,722 $ 11,093 $ 7,273
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Liquidity (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 14, 2018
Jun. 14, 2018
Sep. 27, 2017
Sep. 25, 2017
Apr. 14, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Working capital           $ 2,200   $ 3,900
Value of currently registered for sale           7,800    
Notes receivable, non-current           1,242   $ 3,328
Decrease in working capital           1,700    
Proceeds from issuance of common stock           4,730 $ 13,705  
Cantor Fitzgerald & Co [Member] | ATM Offering [Member]                
Net proceeds from direct offering         $ 8,000      
Cantor Fitzgerald & Co [Member] | ATM Offering [Member] | August 8, 2018 [Member]                
Available for future sales         $ 7,800      
Laramide Resources Ltd [Member]                
Notes receivable, non-current           2,000    
Decrease in fair value of securities           1,000    
Alabama Graphite Corp. [Member]                
Pre-acquisition operating cost           900    
Aspire Capital Fund LLC [Member]                
Net proceeds from direct offering $ 2,900              
Number of shares issued during period 3,717,773              
Shares issued price per share $ 0.34 $ 0.34            
Proceeds from issuance of common stock $ 1,300              
Warrant exercise price $ 0.01 $ 0.01            
Warrant exercisable term Jun. 14, 2021              
Aspire Capital Fund LLC [Member] | Common Stock Purchase Agreement [Member]                
Net proceeds from direct offering       $ 22,000        
Number of shares issued during period   2,725,096 1,428,571 880,000        
Proceeds from issuance of common stock   $ 1,500 $ 2,000          
Agreement termination date, description The previous Common Stock Purchase Agreement ("CSPA") with Aspire Capital dated September 25, 2017 was terminated on June 14, 2018 concurrently with the launch of the registered direct offering.              
Aspire Capital Fund LLC [Member] | Common Stock Warrants [Member]                
Number of warrants issued for common stock 4,968,518 4,968,518            
Prefunded warrants price per share $ 0.33 $ 0.33            
Proceeds from issuance of warrant $ 1,600              
ATM Offering [Member]                
Net proceeds from direct offering           $ 8,000    
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions (Details Narrative) - USD ($)
3 Months Ended 6 Months Ended
Apr. 23, 2018
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 13, 2017
Acquisition of transaction cost   $ 600,000   $ 600,000    
Acquisition share price $ 0.55          
Acquisition related costs   422,000 (333,000)  
Alabama Graphite Corp. [Member]            
Percentage of acquisition of outstanding securities 100.00%          
Total consideration $ 8,900,000          
Common stock price per share $ 0.08          
Debt instrument conversion price per share $ 0.08         $ 0.77809
Number of shares issued during period for acquisition 11,625,210          
Due from related party $ 1,795,251          
Acquisition related costs   $ 400,000   $ 1,900,000    
Alabama Graphite Corp. [Member] | Common Stock [Member]            
Acquisition of transaction cost 6,400,000          
Alabama Graphite Corp. [Member] | Warrants and Options [Member]            
Acquisition of transaction cost $ 89,000          
Alabama Graphite Corp. [Member] | Options [Member]            
Number of shares issued during period for acquisition 364,000          
Alabama Graphite Corp. [Member] | Warrant [Member]            
Number of shares issued during period for acquisition 2,144,378          
Alabama Graphite Corp. [Member] | Alabama [Member]            
Percentage of acquisition of outstanding securities 100.00%          
Total consideration $ 2,400,000          
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details)
6 Months Ended
Jun. 30, 2018
USD ($)
Total consideration received $ 8,880
Cash and cash equivalents 17
Short-term receivables 113
Prepaid expenses 42
Property, plant, equipment and graphite mineral interests 8,973
Total assets 9,145
Accounts payable and accrued liabilities 265
Total liabilities 265
Net assets 8,880
Cash [Member]  
Total consideration received 2,397
Common Shares for Replacement of Alabama Graphite Shares [Member]  
Total consideration received 6,394
Options for Replacement of Alabama Graphite Options [Member]  
Total consideration received 35
Warrants for Replacement of Alabama Graphite Warrants [Member]  
Total consideration received $ 54
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) (Parenthetical) - Alabama Graphite [Member]
6 Months Ended
Jun. 30, 2018
shares
Issuance of common stock for replacements 11,625,210
Issuance of option for replacements 364,000
Issuance of warrants for replacement 2,144,378
XML 48 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Receivable (Details Narrative) - USD ($)
6 Months Ended
Jun. 30, 2018
Apr. 23, 2018
Jan. 31, 2018
Dec. 31, 2017
Dec. 13, 2017
Accrued interest receivable     $ 251,000  
Laramide Resources Ltd [Member]          
Promissory debt $ 3,500,000        
Debt instrument, term 3 years        
Debt interest rate 5.00%        
Debt principal amount due $ 750,000   $ 1,500,000    
Cash receipts discounted at market rate 9.50%        
Number of issuance of common shares 1,982,483        
Debt interest payments $ 300,000        
January 5, 2019 [Member] | Laramide Resources Ltd [Member]          
Debt principal amount due 1,500,000        
January 5, 2020 [Member] | Laramide Resources Ltd [Member]          
Debt principal amount due $ 2,000,000        
Maximum [Member] | Laramide Resources Ltd [Member]          
Debt interest rate 10.00%        
Alabama Graphite Corp. [Member]          
Debt instrument fair value of principal $ 949,280 $ 1,781,794      
Accrued interest receivable $ 12,227 $ 13,457      
Alabama Graphite Corp. [Member] | Maximum [Member]          
Secured loan         $ 2,000,000
XML 49 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Notes Receivable - Schedule of Notes Receivable (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Note Amount, current $ 1,500 $ 1,500
Plus Accrued interest, current 250
Less Unamortized Note Discount, current
Note Balance per Balance Sheet, current 1,500 1,750
Note Amount, non-current   4,332
Plus Accrued interest, non-current   1
Less Unamortized Note Discount, non-current   (1,005)
Note Balance per Balance Sheet, non-current 1,242 3,328
Note Amount, current and non-current 3,500 5,832
Plus Accrued interest, current and non-current 251
Less Unamortized Note Discount, current and non-current (758) (1,005)
Note Balance per Balance Sheet, current and non-current 2,742 5,078
Notes Receivable Laramide [Member]    
Note Amount, current 1,500 1,500
Plus Accrued interest, current 250
Less Unamortized Note Discount, current
Note Balance per Balance Sheet, current 1,500 1,750
Note Amount, non-current 2,000 3,500
Plus Accrued interest, non-current
Less Unamortized Note Discount, non-current (758) (1,005)
Note Balance per Balance Sheet, non-current $ 1,242 2,495
Notes Receivable - Alabama Graphite [Member]    
Note Amount, non-current   832
Plus Accrued interest, non-current   1
Less Unamortized Note Discount, non-current  
Note Balance per Balance Sheet, non-current   $ 833
XML 50 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments - Schedule of Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Short-term available-for-sale investments $ 579 $ 1,361
Total current assets recorded at fair value 579 1,361
Restricted cash 3,668 3,668
Total non-current assets recorded at fair value 3,668 3,668
Fair Value, Inputs, Level 1 [Member]    
Short-term available-for-sale investments 579 1,361
Total current assets recorded at fair value 579 1,361
Restricted cash 3,668 3,668
Total non-current assets recorded at fair value 3,668 3,668
Fair Value, Inputs, Level 2 [Member]    
Short-term available-for-sale investments
Total current assets recorded at fair value
Restricted cash
Total non-current assets recorded at fair value
Fair Value, Inputs, Level 3 [Member]    
Short-term available-for-sale investments
Total current assets recorded at fair value
Restricted cash
Total non-current assets recorded at fair value
XML 51 R40.htm IDEA: XBRL DOCUMENT v3.10.0.1
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Net property, plant and equipment $ 26,346 $ 35,409
Turkey [Member]    
Net property, plant and equipment 8 17,979
Texas [Member]    
Net property, plant and equipment 9,372 9,413
Alabama [Member]    
Net property, plant and equipment 8,973
New Mexico [Member]    
Net property, plant and equipment 7,806 7,806
Corporate [Member]    
Net property, plant and equipment 187 211
Uranium Plant [Member]    
Net property, plant and equipment 8,303 8,304
Uranium Plant [Member] | Turkey [Member]    
Net property, plant and equipment
Uranium Plant [Member] | Texas [Member]    
Net property, plant and equipment 8,303 8,304
Uranium Plant [Member] | Alabama [Member]    
Net property, plant and equipment
Uranium Plant [Member] | New Mexico [Member]    
Net property, plant and equipment
Uranium Plant [Member] | Corporate [Member]    
Net property, plant and equipment
Mineral Rights and Properties [Member]    
Net property, plant and equipment 16,778 25,774
Mineral Rights and Properties [Member] | Turkey [Member]    
Net property, plant and equipment 17,968
Mineral Rights and Properties [Member] | Texas [Member]    
Net property, plant and equipment
Mineral Rights and Properties [Member] | Alabama [Member]    
Net property, plant and equipment 8,972
Mineral Rights and Properties [Member] | New Mexico [Member]    
Net property, plant and equipment 7,806 7,806
Mineral Rights and Properties [Member] | Corporate [Member]    
Net property, plant and equipment
Other Property Plant and Equipment [Member]    
Net property, plant and equipment 1,265 1,331
Other Property Plant and Equipment [Member] | Turkey [Member]    
Net property, plant and equipment 8 11
Other Property Plant and Equipment [Member] | Texas [Member]    
Net property, plant and equipment 1,069 1,109
Other Property Plant and Equipment [Member] | Alabama [Member]    
Net property, plant and equipment 1
Other Property Plant and Equipment [Member] | New Mexico [Member]    
Net property, plant and equipment
Other Property Plant and Equipment [Member] | Corporate [Member]    
Net property, plant and equipment $ 187 $ 211
XML 52 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
Mineral Property Expenditures - Schedule of Mineral Property Expenditures (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Total expense for the period $ 969 $ 1,552 $ 1,751 $ 2,321
Temrezli Project, Turkey [Member]        
Total expense for the period 17 24 96 123
Total Turkey Projects [Member]        
Total expense for the period 17 24 96 123
Kingsville Dome Project, Texas [Member]        
Total expense for the period 172 155 423 418
Rosita Project, Texas [Member]        
Total expense for the period 158 172 355 284
Vasquez Project, Texas [Member]        
Total expense for the period 97 114 331 283
Other Projects, Texas [Member]        
Total expense for the period (6) 1 1 2
Total Texas Projects [Member]        
Total expense for the period 421 442 1,110 987
Cebolleta project, New Mexico [Member]        
Total expense for the period 389 538 389 538
Juan Tafoya Project, New Mexico [Member]        
Total expense for the period 3 312 9 318
Total New Mexico Projects [Member]        
Total expense for the period 392 850 398 856
Columbus Basin Project, Nevada [Member]        
Total expense for the period 120 74 122 191
Railroad Valley, Nevada [Member]        
Total expense for the period 12 155 16 158
Total Nevada Projects [Member]        
Total expense for the period 132 229 138 349
Sal Rica Project, Utah [Member]        
Total expense for the period (2) 7 6
Total Utah Projects [Member]        
Total expense for the period (2) 7 6
Coosa project, Alabama [Member]        
Total expense for the period 9 9
Total Alabama Projects [Member]        
Total expense for the period $ 9 $ 9
XML 53 R42.htm IDEA: XBRL DOCUMENT v3.10.0.1
Asset Retirement Obligations (Details Narrative) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]    
Asset retirement obligation current $ 526 $ 1,078
XML 54 R43.htm IDEA: XBRL DOCUMENT v3.10.0.1
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]          
Balance, beginning of period     $ 5,731 $ 4,789 $ 4,789
Liabilities settled     (355)   (97)
Accretion expense $ 134 $ 131 268 $ 263 1,039
Balance, end of period 5,644   5,644   5,731
Less: Current portion (526)   (526)   (1,078)
Non-current Portion $ 5,118   $ 5,118   $ 4,653
XML 55 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Common Stock (Details Narrative)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 14, 2018
USD ($)
$ / shares
shares
Jun. 14, 2018
USD ($)
$ / shares
shares
May 03, 2018
USD ($)
shares
Apr. 18, 2018
USD ($)
a
shares
Sep. 27, 2017
USD ($)
shares
Sep. 25, 2017
USD ($)
shares
Apr. 14, 2017
USD ($)
Mar. 09, 2017
USD ($)
Jun. 30, 2018
USD ($)
shares
Jun. 30, 2017
USD ($)
Proceeds from common stock                 $ 4,730 $ 13,705
Fair value of shares issued                 95
Number of shares issued for services | shares     172,727              
Number of shares issued for services, value     $ 95           95  
Option Agreement [Member]                    
Number of common stock issued | shares       200,000            
Fair value of shares issued       $ 114            
Mining claims covering area | a       3,000            
ATM Offering [Member]                    
Net proceeds from direct offering             $ 30,000 $ 8,000 $ 500  
Sales commission percentage             2.50%      
Number of common stock sold | shares                 1,068,896  
Available for future sales             $ 28,400   $ 7,800  
ATM Offering [Member] | August 8, 2018 [Member]                    
Net proceeds from direct offering                 $ 1,600  
Number of common stock sold | shares                 1,742,749  
Aspire Capital Fund LLC [Member]                    
Net proceeds from direct offering $ 2,900                  
Number of common stock issued | shares 3,717,773                  
Average price per shares issued | $ / shares $ 0.34 $ 0.34                
Proceeds from common stock $ 1,300                  
Warrant purchase price per share | $ / shares $ 0.01 $ 0.01                
Warrant exercisable term Jun. 14, 2021                  
Aspire Capital Fund LLC [Member] | Common Stock Purchase Agreement [Member]                    
Net proceeds from direct offering           $ 22,000        
Number of common stock issued | shares   2,725,096     1,428,571 880,000        
Proceeds from common stock   $ 1,500     $ 2,000          
Aspire Capital Fund LLC [Member] | Common Stock Warrants [Member]                    
Number of warrants issued for common stock | shares 4,968,518 4,968,518                
Prefunded warrants price per share | $ / shares $ 0.33 $ 0.33                
Net proceeds of warrants $ 1,600                  
Alabama Graphite [Member]                    
Number of common stock issued | shares                 11,625,210  
Ownership percentage                 100.00%  
XML 56 R45.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Nov. 30, 2015
Apr. 30, 2018
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 13, 2017
Jul. 18, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Stock-based compensation expense     $ 81,569 $ 15,890 $ 162,242 $ 38,078    
Number of replacement options outstanding         85,233      
Anatoila Energy Limited [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of replacement options issued 374,749              
Sale of stock price per share $ 0.00548              
Alabama Graphite [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of replacement options outstanding         336,000      
Number of replacement options and warrants   2,508,378            
Replacement options and warrants shares exchange rate   $ 0.08            
Exercise prices for the option and warrant shares             $ 0.77809  
Number of replacement warrants outstanding         1,348,872      
Alabama Graphite [Member] | CAD [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Exercise prices for the option and warrant shares   $ 0.08            
2013 Omnibus Incentive Plan [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of common stock shares reserved for future issuance     462,594   462,594      
2013 Omnibus Incentive Plan [Member] | Maximum [Member]                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of common stock shares reserved for future issuance     1,083,333   1,083,333     1,000,000
Stock option vesting period         10 years      
XML 57 R46.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation - Summary of Stock Options Outstanding (Details) - $ / shares
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Number of stock options outstanding, Beginning of period 286,174 110,828
Number of stock options outstanding, Granted 364,000
Number of stock options outstanding, Expired (34,012) (5,583)
Number of stock options outstanding, End of period 616,162 105,245
Number of stock options Exercisable, End of period 612,162 105,139
Weighted average exercise price, Beginning of period $ 5.53 $ 18.24
Weighted average exercise price, Granted 1.68
Weighted average exercise price, Expired 9.33 11.04
Weighted average exercise price, End of period 3.05 18.62
Weighted average exercise price Exercisable, End of period $ 3.06 $ 18.60
XML 58 R47.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation - Summary of Stock Options Outstanding and Exercisable by Stock Option Plan (Details) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Outstanding Stock Options, Number of Outstanding Stock Options 616,162 286,174 105,245 110,828
Outstanding Stock Options, Weighted Average Exercise Price $ 3.05 $ 5.53 $ 18.62 $ 18.24
Exercisable Stock Options, Number of Exercisable Stock Options 612,162   105,139  
Exercisable Stock Options, Weighted Average Exercise Price $ 3.06   $ 18.60  
2004 Plan [Member]        
Outstanding Stock Options, Number of Outstanding Stock Options 4,792      
Outstanding Stock Options, Weighted Average Exercise Price $ 35.14      
Exercisable Stock Options, Number of Exercisable Stock Options 4,792      
Exercisable Stock Options, Weighted Average Exercise Price $ 35.14      
2004 Directors' Plan [Member]        
Outstanding Stock Options, Number of Outstanding Stock Options 556      
Outstanding Stock Options, Weighted Average Exercise Price $ 186.00      
Exercisable Stock Options, Number of Exercisable Stock Options 556      
Exercisable Stock Options, Weighted Average Exercise Price $ 186.00      
2013 Plan [Member]        
Outstanding Stock Options, Number of Outstanding Stock Options 189,581      
Outstanding Stock Options, Weighted Average Exercise Price $ 1.48      
Exercisable Stock Options, Number of Exercisable Stock Options 189,581      
Exercisable Stock Options, Weighted Average Exercise Price $ 1.48      
Replacement Stock Options - Alabama Graphite [Member]        
Outstanding Stock Options, Number of Outstanding Stock Options 336,000      
Outstanding Stock Options, Weighted Average Exercise Price $ 1.70      
Exercisable Stock Options, Number of Exercisable Stock Options 332,000      
Exercisable Stock Options, Weighted Average Exercise Price $ 1.70      
Replacement Stock Options - Anatolia Energy [Member]        
Outstanding Stock Options, Number of Outstanding Stock Options 85,233      
Outstanding Stock Options, Weighted Average Exercise Price $ 8.87      
Exercisable Stock Options, Number of Exercisable Stock Options 85,233      
Exercisable Stock Options, Weighted Average Exercise Price $ 8.87      
XML 59 R48.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation - Summary of Status of Non-vested Restricted Shares (Details) - Restricted Stock Units [Member] - $ / shares
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Number of restricted stock, Unvested Beginning of period 178,897 8,649
Number of restricted stock, Forfeited (9,429)
Number of restricted stock, Vested (3,625)
Number of restricted stock, Unvested End of period 169,468 5,024
Weighted Average Grant Date Fair Value, Unvested Beginning of period $ 1.40 $ 43.71
Weighted Average Grant Date Fair Value, Forfeited 1.40
Weighted Average Grant Date Fair Value, Vested 31.32
Weighted Average Grant Date Fair Value, Unvested End of period $ 1.40 $ 52.64
XML 60 R49.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings Per Share (Details Narrative) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Earnings Per Share [Abstract]    
Potentially dilutive shares 7,622,353 7,622,353
XML 61 R50.htm IDEA: XBRL DOCUMENT v3.10.0.1
Geographic and Segment Information (Details Narrative)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
ReportableSegments
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Number of reportable operating segment | ReportableSegments     3    
Long-term assets $ 31,300   $ 31,300   $ 42,400
Revenues  
Concentration risk percentage     10.00%    
United States [Member]          
Long-term assets $ 31,300   $ 31,300   $ 24,400
Long-term assets percentage 100.00%   100.00%   58.00%
XML 62 R51.htm IDEA: XBRL DOCUMENT v3.10.0.1
Geographic and Segment Information - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Net property, plant and equipment $ 26,346   $ 26,346   $ 35,409
Restricted cash 3,668   3,668   3,668
Notes receivable, non-current 1,242   1,242   3,328
Mineral property expenses 969 $ 1,552 1,751 $ 2,321  
General and administrative expenses 2,054 1,608 3,859 3,276  
Acquisition costs 422 (333)  
Accretion of asset retirement costs 134 131 268 263 1,039
Impairment of uranium properties (17,968) (17,968)  
Depreciation and amortization 33 39 67 77  
Total operating expenses (20,736) (3,330) (24,246) (5,937)  
Other income 279 691 370 5,142  
Long Term Assets [Member]          
Net property, plant and equipment 26,346   26,346   35,409
Restricted cash 3,668   3,668   3,668
Notes receivable, non-current 1,242   1,242   3,328
Total long-term assets 31,256   31,256   42,405
Operating Results [Member]          
Mineral property expenses 969 1,552 1,751 2,321  
General and administrative expenses 2,054 1,608 3,859 3,276  
Acquisition costs (422)   333    
Accretion of asset retirement costs 134 131 268 263  
Impairment of uranium properties 17,968   17,968    
Depreciation and amortization 33 39 67 77  
Total operating expenses 20,736 3,330 24,246 5,937  
Loss from operations (20,736) (3,330) (24,246) (5,937)  
Other income 279 691 370 5,142  
Loss before taxes (20,457) (2,639) (23,876) (795)  
Corporate [Member] | Long Term Assets [Member]          
Net property, plant and equipment 187   187   211
Restricted cash    
Notes receivable, non-current     834
Total long-term assets 187   187   1,045
Corporate [Member] | Operating Results [Member]          
Mineral property expenses  
General and administrative expenses 1,364 1,207 2,717 2,519  
Acquisition costs (422)   333    
Accretion of asset retirement costs  
Impairment of uranium properties      
Depreciation and amortization 1 2 1  
Total operating expenses 943 1,207 3,052 2,520  
Loss from operations (943) (1,207) (3,052) (2,520)  
Other income 172 239 253 199  
Loss before taxes (771) (968) (2,799) (2,321)  
Uranium [Member] | Long Term Assets [Member]          
Net property, plant and equipment 17,186   17,186   35,198
Restricted cash 3,668   3,668   3,668
Notes receivable, non-current 1,242   1,242   2,494
Total long-term assets 22,096   22,096   41,360
Uranium [Member] | Operating Results [Member]          
Mineral property expenses 830 1,323 1,604 1,971  
General and administrative expenses 453 401 905 757  
Acquisition costs      
Accretion of asset retirement costs 134 131 268 263  
Impairment of uranium properties 17,968   17,968    
Depreciation and amortization 31 39 64 76  
Total operating expenses 19,416 1,894 20,809 3,067  
Loss from operations (19,416) (1,894) (20,809) (3,067)  
Other income 107 452 117 4,943  
Loss before taxes (19,309) (1,442) (20,692) 1,876  
Lithium [Member] | Long Term Assets [Member]          
Net property, plant and equipment    
Restricted cash    
Notes receivable, non-current    
Total long-term assets    
Lithium [Member] | Operating Results [Member]          
Mineral property expenses 130 229 138 350  
General and administrative expenses  
Acquisition costs      
Accretion of asset retirement costs  
Impairment of uranium properties      
Depreciation and amortization  
Total operating expenses 130 229 138 350  
Loss from operations (130) (229) (138) (350)  
Other income  
Loss before taxes (130) (229) (138) (350)  
Graphite [Member] | Long Term Assets [Member]          
Net property, plant and equipment 8,973   8,973  
Restricted cash    
Notes receivable, non-current    
Total long-term assets 8,973   8,973  
Graphite [Member] | Operating Results [Member]          
Mineral property expenses 9 9  
General and administrative expenses 237 237  
Acquisition costs      
Accretion of asset retirement costs  
Impairment of uranium properties      
Depreciation and amortization 1 1  
Total operating expenses 247 247  
Loss from operations (247) (247)  
Other income  
Loss before taxes $ (247) $ (247)  
XML 63 R52.htm IDEA: XBRL DOCUMENT v3.10.0.1
Subsequent Event (Details Narrative) - Aspire Capital Fund LLC [Member] - $ / shares
Aug. 07, 2018
Jun. 14, 2018
Warrant exercised price per shares   $ 0.01
Number of common stock issued   3,717,773
Subsequent Event [Member]    
Warrants to purchase common stock 4,968,518  
Warrant exercised price per shares $ 0.01  
Number of common stock issued 4,825,509  
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