Note 1 - Nature of Operations

12 Months Ended

Jul. 31, 2021

Notes to Financial Statements

Nature of Operations [Text Block]

NOTE

1:

         

NATURE OF OPERATIONS

Uranium Energy Corp. was incorporated in the State of Nevada on

May 16, 2003.

Uranium Energy Corp. and its subsidiary companies and a controlled partnership (collectively, the “Company”) are engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium and titanium concentrates, on projects located in the United States, Canada and Paraguay.

As at

July 31, 2021,

we had working capital of

$61.8

million including cash and cash equivalents of

$44.3

million and uranium inventory holdings of

$29.0

million. Subsequent to

July 31, 2021,

we received further cash proceeds of

$62.7

million under the

2021

ATM Offering (refer to Note

13:

Capital Stock).   During the year ended and subsequent to

July 31, 2021,

we entered into various uranium purchase agreements under our Physical Uranium Portfolio, under which

$22.0

million of uranium purchase commitments will become due in the next

12

months from the date that our audited consolidated financial statements are issued (refer to Note

3:

Inventories).   In addition, as at

July 31, 2021,

we had

$10.0

million of term debt with a maturity date on

January 31, 2022. 

We believe our existing cash resources will provide sufficient funds to fulfill our uranium inventory purchase commitments, repay our

$10.0

million principal debt amount when it becomes due, and carry out our planned operations for

12

months from the date that our audited consolidated financial statements are issued.  Our continuation as a going concern for a period beyond those

12

months will be dependent upon our ability to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial. 

Historically, we have been reliant primarily on equity financings from the sale of our common stock and on debt financing in order to fund our operations, and this reliance is expected to continue for the foreseeable future. Our continued operations, including the recoverability of the carrying values of our assets, are dependent ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations.