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Westwater Resources (WWR)

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Jun. 30, 2020Aug. 05, 2020
Document And Entity Information
Document Type10-Q
Document Period End DateJun. 30,
2020
Entity Registrant NameWESTWATER RESOURCES, INC.
Entity's Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding7,564,815
Entity Central Index Key0000839470
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ2
Amendment Flagfalse

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Current Assets
Cash and cash equivalents $ 2,330 $ 1,870
Prepaid and other current assets639 491
Total Current Assets2,969 2,361
Property, plant and equipment, at cost:
Property, plant and equipment91,633 91,746
Less accumulated depreciation and depletion(71,219)(71,409)
Net property, plant and equipment20,414 20,337
Operating lease right-of-use assets424 484
Restricted cash3,807 3,797
Total Assets27,614 26,979
Current Liabilities:
Accounts payable1,141 852
Accrued liabilities1,308 1,770
Asset retirement obligations - current949 894
Operating lease liability - current154 153
Notes payable - current146
Total Current Liabilities3,698 3,669
Asset retirement obligations, net of current5,322 5,406
Other long-term liabilities500 500
Operating lease liability, net of current280 340
Notes payable, net of current185
Total Liabilities9,985 9,915
Commitments and Contingencies
Stockholders’ Equity:
Common stock, 100,000,000 shares authorized, $.001 par value; Issued shares – 6,664,976 and 3,339,541 respectively Outstanding shares - 6,664,815 and 3,339,380 respectively7 3
Paid-in capital326,073 319,758
Retained Earnings(308,193)(302,439)
Less: Treasury stock (161 and 161 shares, respectively), at cost(258)(258)
Total Stockholders’ Equity17,629 17,064
Total Liabilities and Stockholders’ Equity $ 27,614 $ 26,979

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / sharesJun. 30, 2020Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Common stock, shares authorized100,000,000 100,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued6,664,976 3,339,541
Common stock, shares outstanding6,664,815 3,339,380
Treasury stock, shares161 161

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Operating Expenses:
Mineral property expenses $ (576) $ (808) $ (1,178) $ (1,426)
Product development expenses(175)(16)(301)(32)
General and administrative expenses(1,659)(1,700)(3,438)(3,405)
Arbitration costs(28)(354)(697)(485)
Accretion of asset retirement obligations(32)(30)(138)(156)
Depreciation and amortization(17)(25)(30)(48)
Total operating expenses(2,487)(2,933)(5,782)(5,552)
Non-Operating Income/(Expenses):
Loss on sale of marketable securities(720)
Interest income168 334
Other income (expense)20 (10)28 (11)
Total other income (expense)20 158 28 (397)
Net Loss(2,467)(2,775)(5,754)(5,949)
Other Comprehensive Income
Transfer to realized loss upon sale of available for sale securities90
Comprehensive Loss $ (2,467) $ (2,775) $ (5,754) $ (5,859)
BASIC AND DILUTED LOSS PER SHARE $ (0.43) $ (1.81) $ (1.18) $ (3.95)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING5,786,117 1,532,802 4,895,533 1,505,668

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND SUPPLEMENTAL CASH FLOW INFORMATION (unaudited) - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Operating Activities:
Net loss $ (2,467) $ (2,775) $ (5,754) $ (5,949)
Reconciliation of net loss to cash used in operations:
Non-cash lease expense2 7
Accretion of asset retirement obligations32 30 138 156 $ 390
Costs incurred for restoration and reclamation activities(167)(333)
Amortization of note receivable discount(299)
Depreciation and amortization17 25 30 48
Stock compensation expense28 15
Gain on disposal of fixed assets(21)
Loss on sale of marketable securities720
Effect of changes in operating working capital items:
Decrease/(Increase) in prepaids and other assets(148)234
(Decrease)/Increase in payables and accrued liabilities(173)1,077
Net Cash Used In Operating Activities(6,065)(4,324)
Cash Flows From Investing Activities
Proceeds from disposal of uranium assets, net1,500
Proceeds from the sale of securities, net536
Proceeds from note receivable750
Capital expenditures(87)
Net Cash (Used In)/Provided By Investing Activities(87)2,786
Cash Flows From Financing Activities:
Proceeds from note payable331
Issuance of common stock, net6,291 1,154
Payment of minimum withholding taxes on net share settlements of equity awards(1)
Net Cash Provided By Financing Activities6,622 1,153
Net increase/(decrease) in cash, cash equivalents and restricted cash470 (385)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period5,667 5,309 5,309
Cash, Cash Equivalents and Restricted Cash, End of Period $ 6,137 $ 4,924 6,137 4,924 $ 5,667
Cash Paid During the Period for:
Interest $ 1 1
Supplemental Non-Cash Information with Respect to Investing and Financing Activities:
Securities received for payment of notes receivable – Laramide750
Total Non-Cash Investing and Financing Activities for the Period $ 750

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (unaudited) - USD ($) $ in ThousandsCommon StockPaid In CapitalAccumulated Other Comprehensive Income (Loss)Accumulated DeficitTreasury StockTotal
Balance at Dec. 31, 2018 $ 1 $ 313,012 $ (90) $ (291,874) $ (258) $ 20,791
Balance, shares at Dec. 31, 20181,436,555
Net loss(5,949)(5,949)
Common stock issued, net of issuance costs $ 1 1,153 1,154
Common stock issued, net of issuance costs (in shares)221,263
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes15 15
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes (in shares)393
Minimum withholding taxes on net share settlements of equity awards(1)(1)
Transfer to realized loss upon sale of available for sale securities $ 90 90
Balance at Jun. 30, 2019 $ 2 314,179 (297,823)(258)16,100
Balance, shares at Jun. 30, 20191,658,211
Balance at Mar. 31, 2019 $ 1 313,435 (295,048)(258)18,130
Balance, shares at Mar. 31, 20191,494,153
Net loss(2,775)(2,775)
Common stock issued, net of issuance costs $ 1 738 739
Common stock issued, net of issuance costs (in shares)164,058
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes7 7
Minimum withholding taxes on net share settlements of equity awards(1)(1)
Balance at Jun. 30, 2019 $ 2 314,179 (297,823)(258)16,100
Balance, shares at Jun. 30, 20191,658,211
Balance at Dec. 31, 2019 $ 3 319,758 (302,439)(258)17,064
Balance, shares at Dec. 31, 20193,339,541
Net loss(5,754)(5,754)
Common stock and common stock purchase warrants issued, net of issuance costs $ 4 6,287 6,291
Common stock and common stock purchase warrants issued, net of issuance costs (in shares)3,324,924
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes28 28
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes (in shares)511
Balance at Jun. 30, 2020 $ 7 326,073 (308,193)(258)17,629
Balance, shares at Jun. 30, 20206,664,976
Balance at Mar. 31, 2020 $ 5 322,227 (305,726)(258)16,248
Balance, shares at Mar. 31, 20204,762,794
Net loss(2,467)(2,467)
Common stock issued, net of issuance costs $ 2 3,818 3,820
Common stock issued, net of issuance costs (in shares)1,902,182
Stock compensation expense and related share issuances, net of shares withheld for the payment of taxes28 28
Balance at Jun. 30, 2020 $ 7 $ 326,073 $ (308,193) $ (258) $ 17,629
Balance, shares at Jun. 30, 20206,664,976

BASIS OF PRESENTATION

BASIS OF PRESENTATION6 Months Ended
Jun. 30, 2020
BASIS OF PRESENTATION
BASIS OF PRESENTATION1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements for Westwater Resources, Inc. (the “Company,” “we,” “us,” “WWR” or “Westwater”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10‑Q and Rule 8‑03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying statements should be read in conjunction with the audited financial statements included in Westwater Resources, Inc.’s 2019 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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for any other period including the full year ending December 31, 2020.
Significant Accounting Policies
Our significant accounting policies are detailed in Note 1, Summary of Significant Accounting Policies , in the Notes to Consolidated Financial Statements within our Annual Report on Form 10‑K for the year ended December 31, 2019.
Recently Adopted Accounting Pronouncements
In August 2018, the FASB issued ASU 2018‑13, “Fair Value Measurement (ASC 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the disclosure requirements for fair value measurements by removing, modifying or adding disclosures. The Company adopted this pronouncement effective January 1, 2020. The adoption of ASU 2018-13 has not had a material impact on the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020.
In June 2016, the FASB issued ASU 2016‑13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016‑13 will change how companies account for credit losses for most financial assets and certain other instruments. For trade receivables, loans and held-to-maturity debt securities, companies will be required to estimate lifetime expected credit losses and recognize an allowance against the related instruments. For available for sale debt securities, companies will be required to recognize an allowance for credit losses rather than reducing the carrying value of the asset. The adoption of this update, if applicable, will result in earlier recognition of losses and impairments. ASU 2016-13 will be effective for interim and annual periods beginning after January 1, 2023.
In November 2018, the FASB issued ASU 2018‑19, “Codification Improvements to ASC 326, Financial Instruments – Credit Losses.” ASU 2016‑13 introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. ASU 2018‑19 is the final version of Proposed Accounting Standards Update 2018‑270, which has been deleted. Additionally, the amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326‑20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. ASU 2018-19 will be effective for interim and annual periods beginning after January 1, 2023.
The Company is currently evaluating ASU 2016‑13, ASU 2018‑19 and ASU 2019-12 for the potential impact of adopting this guidance on its financial reporting.
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the 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)
2020
2019
Cash and cash equivalents
$
2,330
$
1,156
Restricted cash - pledged deposits for performance bonds
3,807
3,768
Cash, cash equivalents and restricted cash shown in the statement of cash flows
$
6,137
$
4,924
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 money market accounts. The bonds are collateralized performance bonds required for future restoration and reclamation obligations primarily related to the Company’s South Texas production properties.

LIQUIDITY AND GOING CONCERN

LIQUIDITY AND GOING CONCERN6 Months Ended
Jun. 30, 2020
LIQUIDITY AND GOING CONCERN.
LIQUIDITY AND GOING CONCERN2. LIQUIDITY AND GOING CONCERN
The interim Condensed Consolidated Financial Statements of the Company have been prepared on a “going concern” basis, which means that the continuation of the Company is presumed even though events and conditions exist that, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern because it is possible that the Company will be required to adversely change its current business plan or may be unable to meet its obligations as they become due within one year after the date that these financial statements were issued.
The Company last recorded revenues from operations in 2009 and expects to continue to incur losses as a result of costs and expenses related to maintaining its properties and general and administrative expenses. Since 2009, the Company has relied on equity financings, debt financings and asset sales to fund its operations and the Company expects to rely on these forms of financing to fund its operations into the near future. The Company will also continue to identify ways to reduce its cash expenditures.
The Company’s current business plan requires working capital to fund non-discretionary expenditures for uranium reclamation activities, mineral property holding costs, early stage graphite battery-material product development costs and administrative costs. The Company is pursuing project financing to support execution of the graphite business plan, including discretionary capital expenditures associated with ongoing graphite battery-material product development costs, construction of pilot plant facilities and construction of commercial production facilities. The Company’s current lithium business plan will be funded by working capital; however, the Company is pursuing project financing including possible joint venture partners to fund discretionary greenfield exploration activities.
At June 30, 2020 the Company’s cash balances were $2.3 million and the Company had a working capital deficit balance of $1.0 million. The Company’s cash balance at July 31, 2020 is $2.9 million. Subsequent to July 31, 2020, the Company expects to fund operations as follows:
·
The Purchase Agreement with Lincoln Park Capital, LLC (“Lincoln Park”) dated as of May 21, 2020 and as amended on May 29, 2020 (the “2020 Purchase Agreement”), the issuance of shares pursuant to which was approved by the Company’s shareholders at the annual shareholders meeting on April 28, 2020. Pursuant to the 2020 Purchase Agreement, the Company may place up to $12.0 million in the aggregate of the Company's common stock on an ongoing basis when required by the Company over a term of 24-months ending in May 2022. As of July 31, 2020, the Company has 722,279 registered shares for resale by Lincoln Park on a current Form S-1 and $9.7 million remaining sales capacity under the 2020 Purchase Agreement, subject to periodic registration of shares on Form S-1.
·
The Controlled Equity Offering Sales Agreement (the “ATM Offering Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) which currently has $19.5 million remaining sales capacity, subject to periodic registration of shares on Form S-3. The Company is currently eligible to, and intends to, register the sale of additional shares under the agreement on Form S-3 pursuant to the SEC’s shelf registration rules.
·
Other possible debt and equity financings and asset sales.
While the Company has been successful in the past in raising funds through equity and debt financings as well as through the sale of non-core assets, no assurance can be given that additional financing will be available to it in amounts sufficient to meet its needs, or on terms acceptable to the Company. Stock price volatility and uncertain economic conditions caused by the recent Covid-19 pandemic could significantly impact the Company’s ability to raise funds through equity financing . In the event that we are unable to raise sufficient additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition, long-term prospects and ability to continue as a viable business. Considering all of the factors above, the Company believes there is substantial doubt regarding its ability to continue as a going concern.

NOTES RECEIVABLE

NOTES RECEIVABLE6 Months Ended
Jun. 30, 2020
NOTES RECEIVABLE
NOTES RECEIVABLE3. NOTES RECEIVABLE
Laramide Note Receivable
As part of the consideration for the sale of Hydro Resources, Inc. (HRI) in January 2017, the Company received a promissory note in the amount of $5.0 million, secured by a mortgage over the Churchrock and Crownpoint properties owned by Laramide Resources Ltd. (“Laramide”). The note had a three-year term and carried an initial interest rate of 5%. The Company received the first two installment payments of $1.5 million each in January 2018 and January 2019. The final principal payment of $2.0 million was due and payable on January 5, 2020. Interest was payable on a quarterly basis during the final year. Laramide had the right to satisfy up to half of the principal payments by delivering shares of its common stock to the Company, which shares were valued by reference to the volume weighted average price (“VWAP”) for Laramide’s common stock for the 20 trading days before their respective anniversaries of the initial issuance date in January. The fair value of this note receivable was determined using the present value of the future cash receipts discounted at a market rate of 9.5%.
On August 30, 2019, the Company sold the promissory note (Note 4). Prior to August 30, 2019, the Company had received three tranches of Laramide common shares as partial consideration for the sale, which had resulted in the receipt of 2,218,133, 1,982,483 and 2,483,034 Laramide common shares in January 2017, January 2018 and January 2019, respectively. These share payments represented the initial consideration from the January 2017 sale of HRI and two note installments in January 2018 and January 2019. The first note installment in the amount of $1.5 million in January 2018, consisted of $750,000 in cash and the issuance of 1,982,483 of Laramide’s common shares. The second note installment in the amount of $1.5 million in January 2019, consisted of $750,000 in cash and the issuance of 2,483,034 of Laramide’s common shares. Additionally, Laramide made interest payments in the amount of $96,022 in cash during the year ending December 31, 2019.
On March 25, 2019, the Company sold the third tranche of 2,483,034 Laramide common shares and 2,218,133 Laramide warrants resulting in net proceeds of $0.5 million and a net loss on sale of marketable securities of $0.7 million.

SALE OF URANIUM ASSETS

SALE OF URANIUM ASSETS6 Months Ended
Jun. 30, 2020
SALE OF URANIUM ASSETS
SALE OF URANIUM ASSETS4. SALE OF URANIUM ASSETS
On March 5, 2019, the Company entered into an Asset Purchase Agreement with Uranium Royalty (USA) Corp. and Uranium Royalty Corp. (together “URC”) for the sale of four of its royalty interests on future uranium production from mineral properties located in South Dakota, Wyoming and New Mexico, as well as the remaining amount of the Laramide promissory note in the amount of $2.0 million as discussed in Note 3 above, for $2.75 million, including $0.5 million paid at signing. On June 28, 2019, Westwater and URC entered into an Amendment to the Asset Purchase Agreement. The Amendment extended the date for closing from July 31, 2019 to August 30, 2019. URC delivered an additional $1.0 million as deposit to the Company upon signing the Amendment. The transaction closed on August 30, 2019 at which time the Company transferred ownership of the royalties and promissory note in exchange for the final payment of $1.25 million.
The sale of these uranium assets was accounted for as an asset disposal. The Company recorded the following gain on disposal of uranium assets on its Consolidated Statements of Operations for the year ended December 31, 2019:
URC Transaction
(thousands of dollars)
Total cash consideration received, net of transaction costs
$
2,470
Carrying value of promissory note
(1,741)
Carrying value of royalty interests

Gain on disposal of uranium assets
$
729

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS6 Months Ended
Jun. 30, 2020
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS5. 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, 2020 and December 31, 2019 and indicate the fair value hierarchy.
June 30, 2020
(thousands of dollars)
Level 1
Level 2
Level 3
Total
Non-current Assets
Restricted cash
$
3,807
$


$
3,807
Total non-current assets recorded at fair value
$
3,807
$

$

$
3,807
December 31, 2019
(thousands of dollars)
Level 1
Level 2
Level 3
Total
Non-current Assets
Restricted cash
$
3,797
$


$
3,797
Total non-current assets recorded at fair value
$
3,797
$

$

$
3,797
Assets that are measured on a recurring basis include the Company’s marketable securities and restricted cash.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT6 Months Ended
Jun. 30, 2020
PROPERTY, PLANT AND EQUIPMENT.
PROPERTY, PLANT AND EQUIPMENT6. PROPERTY, PLANT AND EQUIPMENT
Net Book Value of Property, Plant and Equipment at June 30, 2020
(thousands of dollars)
Texas
Alabama
New Mexico
Corporate
Total
Uranium plant
$
3,112
$

$

$

$
3,112
Mineral rights and properties

8,972
7,806

16,778
Other property, plant and equipment
422


102
524
Total
$
3,534
$
8,972
$
7,806
$
102
$
20,414
Net Book Value of Property, Plant and Equipment at December 31, 2019
(thousands of dollars)
Texas
Alabama
New Mexico
Corporate
Total
Uranium plant
$
3,112
$

$

$

$
3,112
Mineral rights and properties

8,972
7,806

16,778
Other property, plant and equipment
327


120
447
Total
$
3,439
$
8,972
$
7,806
$
120
$
20,337
The Company reviews and evaluates its long-lived assets for impairment on an annual basis or more frequently when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. For the six months ended June 30, 2020 no events or changes in circumstance, including any affects from the COVID-19 pandemic, are believed to have impacted recoverability of the Company’s long-lived assets. Accordingly, it was determined that no interim impairment was necessary.

MINERAL PROPERTY EXPENDITURES

MINERAL PROPERTY EXPENDITURES6 Months Ended
Jun. 30, 2020
MINERAL PROPERTY EXPENDITURES
MINERAL PROPERTY EXPENDITURES7. MINERAL PROPERTY EXPENDITURES
Mineral property expenditures by geographical location for the three and six months ended June 30, 2020 and 2019 are as follows:
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2020
2019
2020
2019
(thousands of dollars)
Kingsville Dome project, Texas
$
179
$
145
$
444
$
389
Rosita project, Texas
122
100
213
217
Vasquez project, Texas
121
126
362
312
Other projects, Texas
3
(8)
3
(8)
Total Texas projects
425
363
1,022
910
Cebolleta project, New Mexico
141
440
141
440
Juan Tafoya project, New Mexico
3
3
9
9
Total New Mexico projects
144
443
150
449
Columbus Basin project, Nevada
1
1
(1)
1
Total Nevada projects
1
1
(1)
1
Sal Rica project, Utah

1
1
1
Total Utah projects

1
1
1
Coosa project, Alabama
6

6
65
Total Alabama projects
6

6
65
Total expense for the period
$
576
$
808
$
1,178
$
1,426

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION6 Months Ended
Jun. 30, 2020
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION8. 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,
(thousands of dollars)
2020
2019
Balance, beginning of period
$
6,300
$
6,203
Liabilities settled
(167)
(293)
Accretion expense
138
390
Balance, end of period
6,271
6,300
Less: Current portion
(949)
(894)
Non-current portion
$
5,322
$
5,406
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 $0.9 million consists of the estimated costs associated with current reclamation activities through June 2021 at the Company’s Kingsville Dome, Rosita and Vasquez projects.

COMMON STOCK

COMMON STOCK6 Months Ended
Jun. 30, 2020
COMMON STOCK [Abstract]
COMMON STOCK9. COMMON STOCK
Common Stock Issued, Net of Issuance Costs
2020 Purchase Agreement with Lincoln Park
On May 21, 2020, the Company entered into the 2020 Purchase Agreement, as amended on May 29, 2020, with Lincoln Park to place up to $12.0 million in the aggregate of the Company’s common stock on an ongoing basis when required by the Company over a term of 24 months. Westwater will control the timing and amount of any sales to Lincoln Park, and Lincoln Park is obligated to make purchases in accordance with the 2020 Purchase Agreement. Any common stock that is sold to Lincoln Park will occur at a purchase price that is based on an agreed upon fixed discount to the Company’s prevailing market prices at the time of each sale and with no upper limits to the price Lincoln Park may pay to purchase common stock. The 2020 Purchase Agreement may be terminated by Westwater at any time, in its sole discretion, without any additional cost or penalty.
The 2020 Purchase Agreement specifically provides that the Company may not issue or sell any shares of its common stock under the 2020 Purchase Agreement if such issuance or sale would breach any applicable rules of The Nasdaq Capital Market. In particular, Nasdaq Listing Rule 5635(d) provides that the Company may not issue or sell more than 19.99% of the shares of the Company’s common stock outstanding immediately prior to the execution of the 2020 Purchase Agreement without shareholder approval. The Company received such shareholder approval to sell up to 8.0 million shares of common stock under the 2020 Purchase Agreement at its Annual Shareholders Meeting conducted on April 28, 2020.
Lincoln Park has no right to require the Company to sell any shares of common stock to Lincoln Park, but Lincoln Park is obligated to make purchases as the Company directs, subject to certain conditions. In all instances, the Company may not sell shares of its common stock to Lincoln Park under the 2020 Purchase Agreement if it would result in Lincoln Park beneficially owning more than 9.99% of its common stock. As an initial purchase on May 21, 2020, Lincoln Park bought $250,000 worth of Common Stock of the Company at a price of $1.2989 per share. The Company issued 156,250 shares of Common Stock to Lincoln Park as consideration for its commitment to purchase shares of Common Stock under the 2020 Purchase Agreement .
Also on May 21, 2020, the Company entered into a registration rights agreement with Lincoln Park pursuant to which the Company filed a registration statement on Form S-1 with the Securities and Exchange Commission, which was declared effective on June 26, 2020 relating to the resale of an initial tranche of 1,971,000 shares subject to the 2020 Purchase Agreement. As of June 30, 2020, the Company has sold 192,471 shares of common stock for gross proceeds of $250,000 under the 2020 Purchase Agreement and through July 31, 2020, the Company has sold 1.1 million shares of common stock for gross proceeds of $2.3 million.
2019 Purchase Agreement (“2019 Purchase Agreement”) with Lincoln Park
On June 6, 2019, the Company entered into the 2019 Purchase Agreement with Lincoln Park to place up to $10.0 million in the aggregate of the Company’s common stock on an ongoing basis when required by the Company over a term of 24 months. On August 6, 2019 the Company conducted a Special Meeting of Shareholders whereby the Company received such approval to sell up to 3.2 million shares of common stock under the 2019 Purchase Agreement. Following effectiveness of a registration statement on Form S-1 relating to the resale of the shares subject to the 2019 Purchase Agreement on June 18, 2019, the Company began selling shares of its common stock to Lincoln Park under the terms of the 2019 Purchase Agreement. On September 11, 2019, October 28, 2019 and February 28, 2020 the Company filed subsequent registration statements on Form S-1, which were declared effective on September 20, 2019, November 7, 2019 and March 6, 2020, respectively, registering for resale additional shares under the 2019 Purchase Agreement. During the quarter ended June 30, 2020 the Company sold 623,236 shares of common stock for gross proceeds of $593,356. The 2019 Purchase Agreement was terminated in May 2020 with historical sales of 3.2 million shares of common stock for gross proceeds of $7.7 million.
Securities Purchase Agreement with Lincoln Park
On May 24, 2019, Westwater entered into a Securities Purchase Agreement, as amended by Amendment No. 1 thereto dated as of May 30, 2019, with Lincoln Park, pursuant to which the Company agreed to issue and sell to Lincoln Park, and Lincoln Park agreed to purchase from the Company (i) 104,294 shares of the Company's common stock and (ii) warrants to initially purchase an aggregate of up to 182,515 shares of common stock, at an exercise price of $5.062 per share. On May 30, 2019, the Company issued and sold the common shares and the warrants to Lincoln Park and received aggregate gross proceeds before expenses of $550,751. The warrants became exercisable on November 30, 2019 and may be exercised at any time thereafter until November 30, 2024.
ATM Offering Agreement with Cantor
On April 14, 2017, the Company entered into the ATM Offering Agreement with Cantor acting as sales agent. Under the ATM Offering Agreement, the Company may from time to time sell shares of its common stock in “at-the-market” offerings and $3.1 million of which shares were registered for sale under a registration statement on Form S‑3, which was declared effective on April 13, 2020. 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 Agreement. As of June 30, 2020, the Company had sold 1,959,422 shares of common stock for net proceeds of $10.2 million under the ATM Offering Agreement, of which 930,225 shares of common stock and net proceeds of $3.0 million was sold in the three months ended June 30, 2020. As a result, the Company has approximately $19.5 million remaining available for future sales under the ATM Offering, but had no shares of common stock registered for sale under the ATM Offering Agreement as of June 30, 2020.
Warrants
The following table summarizes warrants outstanding and changes for the three-month periods ending June 30, 2020 and 2019:
June 30, 2020
June 30, 2019
Number of
Number of
Warrants
Warrants
Warrants outstanding at beginning of period
186,182
197,621
Issued


Expired


Warrants outstanding at end of period
186,182
197,621

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION6 Months Ended
Jun. 30, 2020
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION10. STOCK-BASED COMPENSATION
Stock-based compensation awards consist of stock options, restricted stock units and bonus shares issued under the Company’s equity incentive plans which include: the 2013 Omnibus Incentive Plan (the “2013 Plan") and the Amended and Restated 2004 Directors’ Stock Option and Restricted Stock Plan (the “2004 Directors’ Plan"). Upon approval of the 2013 Plan by the Company’s stockholders on June 4, 2013, the Company’s authority to grant new awards under all plans other than the 2013 Plan was terminated. On July 18, 2017, April 18, 2019 and April 28, 2020, the Company’s stockholders approved amendments to the 2013 Plan to increase the authorized number of shares of common stock available and reserved for issuance under the 2013 Plan by 20,000 shares, 66,000 and 350,000 shares, respectively and in 2017 re-approve the material terms of the performance goals under the plan. Under the 2013 Plan, the Company may grant awards of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to eligible persons. The maximum number of the Company’s common stock that may be reserved for issuance under the 2013 Plan is currently 416,278 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, 2020, 58,586 shares were available for future issuances under the 2013 Plan. For the six months ending June 30, 2020 and 2019, the Company recorded stock-based compensation expense of $27,771 and $15,424, respectively. Stock compensation expense is recorded in general and administrative expenses.
In addition to the plans above, upon closing of the Company’s acquisition of Alabama Graphite in April 2018, the Company issued 50,168 replacement options and warrants to the option and warrant holders of Alabama Graphite. The number of replacement options and warrants shares was determined using the arrangement exchange rate of 0.0016. The exercise prices for the option and warrant shares were first converted for the exchange rate of 0.0016 and then converted to USD using the exchange rate on December 13, 2017 of 0.77809 (CAD to USD). The options and warrant shares were issued with the same terms and conditions as were applicable prior to the acquisition of Alabama Graphite. As of June 30, 2020, there were 2,840 replacement options outstanding but all replacement warrants have expired.
Stock Options
The following table summarizes stock options outstanding and changes for the six-month periods ending June 30, 2020 and 2019:
June 30, 2020
June 30, 2019
Weighted
Weighted
Number of
Average
Number of
Average
Stock
Exercise
Stock
Exercise
Options
Price
Options
Price
Stock options outstanding at beginning of period
37,786
$
37.42
19,170
$
79.78
Granted
125,804
1.59


Expired
(1,693)
101.64
(624)
80.58
Canceled or forfeited




Stock options outstanding at end of period
161,897
$
8.91
18,546
$
78.21
Stock options exercisable at end of period
36,093
$
34.41
18,546
$
78.21
The following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2020:
Outstanding Stock Options
Exercisable Stock Options
Number of
Weighted
Number of
Weighted
Outstanding
Average
Stock Options
Average
Stock Option Plan
Stock Options
Exercise Price
Exercisable
Exercise Price
2004 Plan
92
$
1,638.00
92
$
1,638.00
2004 Directors’ Plan
3
10,380.00
3
10,380.00
2013 Plan
158,962
6.57
33,158
25.47
Replacement Options-Alabama Graphite
2,840
75.94
2,840
75.94
161,897
$
8.91
36,093
$
34.41
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 three-month periods ended June 30, 2020 and 2019:
June 30,
June 30,
2020
2019
Weighted-
Weighted-
Average
Average
Number of
Grant Date
Number of
Grant Date
RSUs
Fair Value
RSUs
Fair Value
Unvested RSUs at beginning of period

$

2,260
$
70.00
Granted
211,497
2.03


Forfeited


(565)
70.00
Vested




Unvested RSUs at end of period
211,497
$
2.03
1,695
$
70.00

EARNINGS PER SHARE

EARNINGS PER SHARE6 Months Ended
Jun. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE11. 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 559,576 were excluded from the calculation of earnings per share because the effect on the basic income per share would be anti-dilutive for the six months ended June 30, 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES6 Months Ended
Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES12. 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 our financial position, results of operations or cash flows.

LEASES

LEASES6 Months Ended
Jun. 30, 2020
LEASES
LEASES13. LEASES
The Company’s lease portfolio consists of operating leases for corporate offices, storage space and equipment. The leases have remaining lease terms of 1 to 3.5 years, one of which includes an option to extend the corporate office lease for 3 years. Under our corporate office lease, we are required to reimburse the lessor each month for common use expenses such as maintenance and security services. Because these amounts are variable from year to year and not specifically set in the lease terms, they are not included in the measurement of the right-of-use asset and related lease liability, but rather expensed in the period incurred.
The Company is party to several leases that are for under one year in length. These include such leases as those for land used in exploration and mining activities, office equipment, machinery, office space, storage and other. The Company has elected the short-term lease exemptions allowed under the new leasing standards, whereby leases with initial terms of one year or less are not capitalized and instead expensed on a straight-line basis over the lease term. In addition, the Company holds numerous leases related to mineral exploration and production to which it has not applied the new leasing standard. Leases to explore or use minerals and similar nonregenerative resources are specifically excluded by ASC 842-10.
The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term using a discount rate of 9.5%. This rate is the Company’s current estimated incremental borrowing rate.
The components of lease expense are as follows:
Six months
Six months
ended
ended
June 30,
June 30,
(thousands of dollars)
2020
2019
Operating lease cost
$
81
$
81
Supplemental cash flow information related to the Company’s operating leases is as follows:
Six months
Six months
ended
ended
(thousands of dollars)
June 30, 2020
June 30, 2019
Cash paid for amounts included in lease liabilities:
Operating cash flows from operating leases
$
79
$
77
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$
424
$
541
Supplemental balance sheet information related to the Company’s operating leases is as follows:
June 30,
December 31,
(thousands of dollars, except lease term and discount rate)
2020
2019
Operating Leases
Operating lease right-of-use assets
$
424
$
484
Current portion of lease liabilities
$
154
$
153
Operating lease liabilities – long term portion
280
340
Total operating lease liabilities
$
434
$
493
Weighted-average remaining lease term and discount rate for the Company’s operating leases are as follows:
June 30,
June 30,
2020
2019
Weighted Average Remaining Lease Term (in years)
3.2
4.2
Discount Rate
9.5
%
9.5
%
Maturities of lease liabilities for the Company’s operating leases are as follows:
June 30,
Lease payments by year (In thousands)
2020
2020 (remainder of year )
$
81
2021
161
2022
162
2023
92
Total lease payments
496
Less imputed interest
(62)
Total
$
434
As of June 30, 2020, the Company has $0.4 million in right-of-use assets and $0.4 million in related lease liabilities ($0.2 million of which is current). The most significant operating lease is for its corporate office in Centennial, Colorado, with $0.5 million remaining in undiscounted cash payments through the end of the lease term in 2023. The total undiscounted cash payments remaining on operating leases through the end of their respective terms is $0.5 million.

GEOGRAPHIC AND SEGMENT INFORMAT

GEOGRAPHIC AND SEGMENT INFORMATION6 Months Ended
Jun. 30, 2020
GEOGRAPHIC AND SEGMENT INFORMATION
GEOGRAPHIC AND SEGMENT INFORMATION14. GEOGRAPHIC AND SEGMENT INFORMATION
In addition to its corporate operations, 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 explores, evaluates and, if warranted, develops uranium, lithium and graphite properties. The Company’s long-term assets were $24.6 million as of both June 30, 2020 and December 31, 2019. 100% of the long-term assets are located in the United States. The Company reported no revenues during the six months ended June 30, 2020 and June 30, 2019.
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 reportable segments as of June 30, 2020 and December 31, 2019:
June 30, 2020
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Net property, plant and equipment
$
102
$
11,340
$

$
8,972
$
20,414
Restricted cash

3,797

10
3,807
Operating lease right of use assets
407
17


424
Total long-term assets
$
509
$
15,154
$

$
8,982
$
24,645
December 31, 2019
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Net property, plant and equipment
$
114
$
11,251
$

$
8,972
$
20,337
Restricted cash

3,787

10
3,797
Operating lease right of use assets
463
21


484
Total long-term assets
$
577
$
15,059
$

$
8,982
$
24,618
The table below provides a breakdown of the reportable segments for the three months ended June 30, 2020 and June 30, 2019. Non-mining activities and other administrative operations are reported in the Corporate column.
Three months Ended
June 30, 2020
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
570
$

$
6
$
576
Product development expenses



175
175
General and administrative expenses
1,094
442

123
1,659
Arbitration expenses
28



28
Accretion of asset retirement costs

32


32
Depreciation and amortization
12
5


17
1,134
1,049

304
2,487
Loss from operations
(1,134)
(1,049)

(304)
(2,487)
Other income/(expense)
28
(8)


20
Loss before taxes
$
(1,106)
$
(1,057)
$

$
(304)
$
(2,467)
Three months Ended
June 30, 2019
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
805
$
2
$
1
$
808
Product development expenses



16
16
General and administrative
1,216
433

51
1,700
Arbitration expenses
354



354
Accretion of asset retirement costs

30


30
Depreciation and amortization
1
24


25
1,571
1,292
2
68
2,933
Loss from operations
(1,571)
(1,292)
(2)
(68)
(2,933)
Other income
158



158
Loss before taxes
$
(1,413)
$
(1,292)
$
(2)
$
(68)
$
(2,775)
The table below provides a breakdown of the reportable segments for the six months ended June 30, 2020 and June 30, 2019. Non-mining activities and other administrative operations are reported in the Corporate column.
Six months Ended
June 30, 2020
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
1,172
$

$
6
$
1,178
Product development expenses



301
301
General and administrative
2,283
868

287
3,438
Arbitration expenses
697



697
Accretion of asset retirement costs

138


138
Depreciation and amortization
24
6


30
3,004
2,184

594
5,782
Loss from operations
(3,004)
(2,184)

(594)
(5,782)
Other income
28



28
Loss before taxes
$
(2,976)
$
(2,184)
$

$
(594)
$
(5,754)
Six months Ended
June 30, 2019
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
1,358
$
3
$
65
$
1,426
Product development expenses



32
32
General and administrative
2,364
825

216
3,405
Arbitration expenses
485



485
Accretion of asset retirement costs

156


156
Depreciation and amortization
2
46


48
2,851
2,385
3
313
5,552
Loss from operations
(2,851)
(2,385)
(3)
(313)
(5,552)
Other (expense)
(397)



(397)
Loss before taxes
$
(3,248)
$
(2,385)
$
(3)
$
(313)
$
(5,949)

NOTES PAYABLE

NOTES PAYABLE6 Months Ended
Jun. 30, 2020
NOTES PAYABLE
NOTES PAYABLE15. NOTES PAYABLE
Loan under the Paycheck Protection Program (PPP)
On May 4, 2020, URI, Inc, a wholly owned subsidiary of Westwater, received loan proceeds in the amount of $0.3 million under the Paycheck Protection Program (“PPP”) in accordance with the terms of a promissory note executed in favor of Celtic Bank Corporation, a Salt Lake City based Small Business Administration (“SBA”) Preferred Lender. The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for forgivable loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loan and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll costs, rent and utilities. No more than 40% of the amount forgiven can be attributable to non-payroll costs. Any unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. According to terms of the promissory note from Celtic Bank, the first payment of principal and interest is due November 30, 2020, with subsequent payments due at the end of each month through the loan maturity date of April 30, 2022.
The Company used the proceeds for funding its payroll and benefits costs for the restart of South Texas operations, purposes consistent with the PPP. The Company’s South Texas operations were shut down and employees furloughed in March 2020 due to the severe downturn in the capital markets and uncertainty about when economic conditions would return to normal. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan and is in the process of preparing the SBA’s forgiveness application, no assurance can be provided that the Company will obtain forgiveness of the loan, in whole or in part. At June 30, 2020 the loan proceeds are presented on the balance sheet as current and long-term debt based on the schedule of repayments and excluding any possible forgiveness of the loans.
The following table summarizes notes payable related to the PPP loan on the balance sheet as of June 30, 2020:
June 30,
(thousands of dollars)
2020
Notes payable
$
331
Less: current maturities
(146)
Notes payable, net of current
$
185

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)6 Months Ended
Jun. 30, 2020
BASIS OF PRESENTATION
Recently Issued Accounting PronouncementsRecently Adopted Accounting Pronouncements
In August 2018, the FASB issued ASU 2018‑13, “Fair Value Measurement (ASC 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the disclosure requirements for fair value measurements by removing, modifying or adding disclosures. The Company adopted this pronouncement effective January 1, 2020. The adoption of ASU 2018-13 has not had a material impact on the Company’s consolidated financial statements.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020.
In June 2016, the FASB issued ASU 2016‑13, “Measurement of Credit Losses on Financial Instruments”. ASU 2016‑13 will change how companies account for credit losses for most financial assets and certain other instruments. For trade receivables, loans and held-to-maturity debt securities, companies will be required to estimate lifetime expected credit losses and recognize an allowance against the related instruments. For available for sale debt securities, companies will be required to recognize an allowance for credit losses rather than reducing the carrying value of the asset. The adoption of this update, if applicable, will result in earlier recognition of losses and impairments. ASU 2016-13 will be effective for interim and annual periods beginning after January 1, 2023.
In November 2018, the FASB issued ASU 2018‑19, “Codification Improvements to ASC 326, Financial Instruments – Credit Losses.” ASU 2016‑13 introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. ASU 2018‑19 is the final version of Proposed Accounting Standards Update 2018‑270, which has been deleted. Additionally, the amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326‑20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. ASU 2018-19 will be effective for interim and annual periods beginning after January 1, 2023.
The Company is currently evaluating ASU 2016‑13, ASU 2018‑19 and ASU 2019-12 for the potential impact of adopting this guidance on its financial reporting.
Cash, Cash Equivalents and Restricted CashCash, 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)
2020
2019
Cash and cash equivalents
$
2,330
$
1,156
Restricted cash - pledged deposits for performance bonds
3,807
3,768
Cash, cash equivalents and restricted cash shown in the statement of cash flows
$
6,137
$
4,924
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 money market accounts. The bonds are collateralized performance bonds required for future restoration and reclamation obligations primarily related to the Company’s South Texas production properties.

BASIS OF PRESENTATION (Tables)

BASIS OF PRESENTATION (Tables)6 Months Ended
Jun. 30, 2020
BASIS OF PRESENTATION
Schedule of Cash, Cash Equivalents and Restricted CashAs of June 30,
(thousands of dollars)
2020
2019
Cash and cash equivalents
$
2,330
$
1,156
Restricted cash - pledged deposits for performance bonds
3,807
3,768
Cash, cash equivalents and restricted cash shown in the statement of cash flows
$
6,137
$
4,924

SALE OF URANIUM ASSETS (Tables)

SALE OF URANIUM ASSETS (Tables)6 Months Ended
Jun. 30, 2020
SALE OF URANIUM ASSETS
Schedule of gain on disposal of uranium assetsThe sale of these uranium assets was accounted for as an asset disposal. The Company recorded the following gain on disposal of uranium assets on its Consolidated Statements of Operations for the year ended December 31, 2019:
URC Transaction
(thousands of dollars)
Total cash consideration received, net of transaction costs
$
2,470
Carrying value of promissory note
(1,741)
Carrying value of royalty interests

Gain on disposal of uranium assets
$
729

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)6 Months Ended
Jun. 30, 2020
FINANCIAL INSTRUMENTS
Schedule of Fair Value on Recurring and Non-recurring BasisJune 30, 2020
(thousands of dollars)
Level 1
Level 2
Level 3
Total
Non-current Assets
Restricted cash
$
3,807
$


$
3,807
Total non-current assets recorded at fair value
$
3,807
$

$

$
3,807
December 31, 2019
(thousands of dollars)
Level 1
Level 2
Level 3
Total
Non-current Assets
Restricted cash
$
3,797
$


$
3,797
Total non-current assets recorded at fair value
$
3,797
$

$

$
3,797

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)6 Months Ended
Jun. 30, 2020
PROPERTY, PLANT AND EQUIPMENT.
Net Book Value of Property, Plant and EquipmentNet Book Value of Property, Plant and Equipment at June 30, 2020
(thousands of dollars)
Texas
Alabama
New Mexico
Corporate
Total
Uranium plant
$
3,112
$

$

$

$
3,112
Mineral rights and properties

8,972
7,806

16,778
Other property, plant and equipment
422


102
524
Total
$
3,534
$
8,972
$
7,806
$
102
$
20,414
Net Book Value of Property, Plant and Equipment at December 31, 2019
(thousands of dollars)
Texas
Alabama
New Mexico
Corporate
Total
Uranium plant
$
3,112
$

$

$

$
3,112
Mineral rights and properties

8,972
7,806

16,778
Other property, plant and equipment
327


120
447
Total
$
3,439
$
8,972
$
7,806
$
120
$
20,337

MINERAL PROPERTY EXPENDITURES (

MINERAL PROPERTY EXPENDITURES (Tables)6 Months Ended
Jun. 30, 2020
MINERAL PROPERTY EXPENDITURES
Schedule of Mineral Property ExpensesFor the Three Months Ended June 30,
For the Six Months Ended June 30,
2020
2019
2020
2019
(thousands of dollars)
Kingsville Dome project, Texas
$
179
$
145
$
444
$
389
Rosita project, Texas
122
100
213
217
Vasquez project, Texas
121
126
362
312
Other projects, Texas
3
(8)
3
(8)
Total Texas projects
425
363
1,022
910
Cebolleta project, New Mexico
141
440
141
440
Juan Tafoya project, New Mexico
3
3
9
9
Total New Mexico projects
144
443
150
449
Columbus Basin project, Nevada
1
1
(1)
1
Total Nevada projects
1
1
(1)
1
Sal Rica project, Utah

1
1
1
Total Utah projects

1
1
1
Coosa project, Alabama
6

6
65
Total Alabama projects
6

6
65
Total expense for the period
$
576
$
808
$
1,178
$
1,426

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)6 Months Ended
Jun. 30, 2020
ASSET RETIREMENT OBLIGATION
Summary of Asset Retirement ObligationJune 30,
December 31,
(thousands of dollars)
2020
2019
Balance, beginning of period
$
6,300
$
6,203
Liabilities settled
(167)
(293)
Accretion expense
138
390
Balance, end of period
6,271
6,300
Less: Current portion
(949)
(894)
Non-current portion
$
5,322
$
5,406

COMMON STOCK (Tables)

COMMON STOCK (Tables)6 Months Ended
Jun. 30, 2020
COMMON STOCK [Abstract]
Warrants OutstandingJune 30, 2020
June 30, 2019
Number of
Number of
Warrants
Warrants
Warrants outstanding at beginning of period
186,182
197,621
Issued


Expired


Warrants outstanding at end of period
186,182
197,621

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)6 Months Ended
Jun. 30, 2020
STOCK BASED COMPENSATION
Summary of Stock Options OutstandingJune 30, 2020
June 30, 2019
Weighted
Weighted
Number of
Average
Number of
Average
Stock
Exercise
Stock
Exercise
Options
Price
Options
Price
Stock options outstanding at beginning of period
37,786
$
37.42
19,170
$
79.78
Granted
125,804
1.59


Expired
(1,693)
101.64
(624)
80.58
Canceled or forfeited




Stock options outstanding at end of period
161,897
$
8.91
18,546
$
78.21
Stock options exercisable at end of period
36,093
$
34.41
18,546
$
78.21
Summary of Stock Options Outstanding and Exercisable by Stock Option PlanThe following table summarizes stock options outstanding and exercisable by stock option plan at June 30, 2020:
Outstanding Stock Options
Exercisable Stock Options
Number of
Weighted
Number of
Weighted
Outstanding
Average
Stock Options
Average
Stock Option Plan
Stock Options
Exercise Price
Exercisable
Exercise Price
2004 Plan
92
$
1,638.00
92
$
1,638.00
2004 Directors’ Plan
3
10,380.00
3
10,380.00
2013 Plan
158,962
6.57
33,158
25.47
Replacement Options-Alabama Graphite
2,840
75.94
2,840
75.94
161,897
$
8.91
36,093
$
34.41
Summary of RSU ActivityJune 30,
June 30,
2020
2019
Weighted-
Weighted-
Average
Average
Number of
Grant Date
Number of
Grant Date
RSUs
Fair Value
RSUs
Fair Value
Unvested RSUs at beginning of period

$

2,260
$
70.00
Granted
211,497
2.03


Forfeited


(565)
70.00
Vested




Unvested RSUs at end of period
211,497
$
2.03
1,695
$
70.00

LEASES (Tables)

LEASES (Tables)6 Months Ended
Jun. 30, 2020
LEASES
Components of lease expenseSix months
Six months
ended
ended
June 30,
June 30,
(thousands of dollars)
2020
2019
Operating lease cost
$
81
$
81
Schedule of Supplemental Cash Flow Information Related to Operating LeasesSix months
Six months
ended
ended
(thousands of dollars)
June 30, 2020
June 30, 2019
Cash paid for amounts included in lease liabilities:
Operating cash flows from operating leases
$
79
$
77
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$
424
$
541
Schedule of Supplemental Balance Sheet Information Relating to Operating LeasesJune 30,
December 31,
(thousands of dollars, except lease term and discount rate)
2020
2019
Operating Leases
Operating lease right-of-use assets
$
424
$
484
Current portion of lease liabilities
$
154
$
153
Operating lease liabilities – long term portion
280
340
Total operating lease liabilities
$
434
$
493
Schedule of Weighted-average Remaining Lease Term and Discount Rate for Operating LeasesJune 30,
June 30,
2020
2019
Weighted Average Remaining Lease Term (in years)
3.2
4.2
Discount Rate
9.5
%
9.5
%
Schedule of Maturities of Lease Liabilities for Operating LeasesJune 30,
Lease payments by year (In thousands)
2020
2020 (remainder of year )
$
81
2021
161
2022
162
2023
92
Total lease payments
496
Less imputed interest
(62)
Total
$
434

GEOGRAPHIC AND SEGMENT INFORM_2

GEOGRAPHIC AND SEGMENT INFORMATION (Tables)6 Months Ended
Jun. 30, 2020
GEOGRAPHIC AND SEGMENT INFORMATION
Schedule of Segment Reporting InformationJune 30, 2020
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Net property, plant and equipment
$
102
$
11,340
$

$
8,972
$
20,414
Restricted cash

3,797

10
3,807
Operating lease right of use assets
407
17


424
Total long-term assets
$
509
$
15,154
$

$
8,982
$
24,645
December 31, 2019
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Net property, plant and equipment
$
114
$
11,251
$

$
8,972
$
20,337
Restricted cash

3,787

10
3,797
Operating lease right of use assets
463
21


484
Total long-term assets
$
577
$
15,059
$

$
8,982
$
24,618
Six months Ended
June 30, 2020
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
1,172
$

$
6
$
1,178
Product development expenses



301
301
General and administrative
2,283
868

287
3,438
Arbitration expenses
697



697
Accretion of asset retirement costs

138


138
Depreciation and amortization
24
6


30
3,004
2,184

594
5,782
Loss from operations
(3,004)
(2,184)

(594)
(5,782)
Other income
28



28
Loss before taxes
$
(2,976)
$
(2,184)
$

$
(594)
$
(5,754)
Six months Ended
June 30, 2019
(thousands of dollars)
Corporate
Uranium
Lithium
Graphite
Total
Statement of Operations
Mineral property expenses
$

$
1,358
$
3
$
65
$
1,426
Product development expenses



32
32
General and administrative
2,364
825

216
3,405
Arbitration expenses
485



485
Accretion of asset retirement costs

156


156
Depreciation and amortization
2
46


48
2,851
2,385
3
313
5,552
Loss from operations
(2,851)
(2,385)
(3)
(313)
(5,552)
Other (expense)
(397)



(397)
Loss before taxes
$
(3,248)
$
(2,385)
$
(3)
$
(313)
$
(5,949)

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)6 Months Ended
Jun. 30, 2020
NOTES PAYABLE
Schedule of notes payable related to the PPP loanThe following table summarizes notes payable related to the PPP loan on the balance sheet as of June 30, 2020:
June 30,
(thousands of dollars)
2020
Notes payable
$
331
Less: current maturities
(146)
Notes payable, net of current
$
185

BASIS OF PRESENTATION - Schedul

BASIS OF PRESENTATION - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in ThousandsJul. 31, 2020Jun. 30, 2020Dec. 31, 2019Jun. 30, 2019
BASIS OF PRESENTATION
Cash and cash equivalents $ 2,900 $ 2,330 $ 1,870 $ 1,156
Restricted cash - pledged deposits for performance bonds3,807 3,768
Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 6,137 $ 4,924

LIQUIDITY AND GOING CONCERN (De

LIQUIDITY AND GOING CONCERN (Details) - USD ($)May 21, 2020May 04, 2020Apr. 28, 2020Aug. 06, 2019Jun. 06, 2019Jul. 31, 2020Jun. 30, 2020Dec. 31, 2019Jun. 30, 2019
Cash balances $ 2,900,000 $ 2,330,000 $ 1,870,000 $ 1,156,000
Working capital deficit(1,000,000)
Period for financing from common stock24 months
Paycheck Protection Program
Loan proceeds19,500,000
Subsequent Event
Registered share available for future sales9,700,000
Lincoln Park | Subsequent Event
Registered share available for future sales $ 722,279
Lincoln Park | PA
Maximum aggregate offering price $ 12,000,000 $ 12,000,000 $ 3,200,000 $ 10,000,000
Period for financing from common stock24 months24 months
Cantor Fitzgerald & Co | ATM Offering Agreement
Paycheck Protection Program
Loan proceeds $ 19,500,000
URI, Inc. | PPP
Paycheck Protection Program
Loan proceeds $ 300,000
Debt Instrument, Payment TermsAny unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months.
Fixed interest rate1.00%
Debt term2 years
Deferral of payments, period6 months

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details)Mar. 25, 2020sharesAug. 30, 2019trancheMar. 25, 2019USD ($)sharesJan. 31, 2019USD ($)installmentsharesJan. 31, 2018USD ($)installmentsharesJan. 31, 2017USD ($)sharesJun. 30, 2020USD ($)Jun. 30, 2019USD ($)Dec. 31, 2019USD ($)Jan. 05, 2020USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of installments | installment2 2
Number of installment payments $ 1,500,000 $ 1,500,000
Number of tranches | tranche3
Proceeds from issuance of common stock $ 6,291,000 $ 1,154,000
Loss on sale of marketable securities $ 720,000
Laramide Resources Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Promissory debt $ 5,000,000
Promissory debt $ 5,000,000
Debt instrument, term3 years
Debt interest rate5.00%
Final principal payment $ 2,000,000
Cash receipts discounted at market rate9.50%
Number of issuance of common shares | shares2,483,034 1,982,483 2,218,133
Laramide Resources Ltd | Second Note Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt principal amount due $ 1,500,000
Amount received from sale of stock $ 750,000
Number of issuance of common shares | shares2,483,034
Interest payments received $ 96,022
Laramide Resources Ltd | Share Based Compensation Award Tranche Third
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from issuance of common stock $ 500,000
Loss on sale of marketable securities $ 700,000
Laramide Resources Ltd | Share Based Compensation Award Tranche Third | Common Stock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of issuance of common shares | shares2,483,034
Laramide Resources Ltd | Share Based Compensation Award Tranche Third | Warrants
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of issuance of common shares | shares2,218,133
Laramide Resources Ltd. | First Note Installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt principal amount due $ 1,500,000
Amount received from sale of stock $ 750,000
Number of issuance of common shares | shares1,982,483
Laramide Resources Ltd. | Share Based Compensation Award Tranche Third | Warrants
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of issuance of common shares | shares2,218,133

SALE OF URANIUM ASSETS - Dispos

SALE OF URANIUM ASSETS - Disposal of Uranium Assets (Details) $ in ThousandsAug. 30, 2019USD ($)Mar. 05, 2019USD ($)item
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of Royalty interests sold | item4
Exchange for final payment $ 1,250
Uranium assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Borrowings $ 2,000
Total cash consideration of disposal2,750
Paid at signing $ 500
Cash proceed $ 1,000

SALE OF URANIUM ASSETS - Gain o

SALE OF URANIUM ASSETS - Gain on disposal of uranium assets (Details) - Uranium assets $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total cash consideration received, net of transaction costs $ 2,470
Carrying value of promissory note(1,741)
Gain on disposal of uranium assets $ 729

FINANCIAL INSTRUMENTS - Schedul

FINANCIAL INSTRUMENTS - Schedule of Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Non-current Assets
Restricted cash $ 3,807 $ 3,797
Total non-current assets recorded at fair value3,807 3,797
Level 1
Non-current Assets
Restricted cash3,807 3,797
Total non-current assets recorded at fair value $ 3,807 $ 3,797

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Net Book Value of Property, Plant and Equipment (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Net property, plant and equipment $ 20,414 $ 20,337
Texas
Net property, plant and equipment3,534 3,439
Alabama
Net property, plant and equipment8,972 8,972
New Mexico
Net property, plant and equipment7,806 7,806
Corporate
Net property, plant and equipment102 120
Uranium plant
Net property, plant and equipment3,112 3,112
Uranium plant | Texas
Net property, plant and equipment3,112 3,112
Mineral rights and properties
Net property, plant and equipment16,778 16,778
Mineral rights and properties | Alabama
Net property, plant and equipment8,972 8,972
Mineral rights and properties | New Mexico
Net property, plant and equipment7,806 7,806
Other property, plant and equipment
Net property, plant and equipment524 447
Other property, plant and equipment | Texas
Net property, plant and equipment422 327
Other property, plant and equipment | Corporate
Net property, plant and equipment $ 102 $ 120

MINERAL PROPERTY EXPENDITURES_2

MINERAL PROPERTY EXPENDITURES (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Mineral property expenses $ 576 $ 808 $ 1,178 $ 1,426
Kingsville Dome Project, Texas
Mineral property expenses179 145 444 389
Rosita Project, Texas
Mineral property expenses122 100 213 217
Vasquez Project, Texas
Mineral property expenses121 126 362 312
Other Projects, Texas
Exploration and evaluation costs (reversals)(8)(8)
Mineral property expenses3 3
Total Texas Projects
Mineral property expenses425 363 1,022 910
Cebolleta Project, New Mexico
Mineral property expenses141 440 141 440
Juan Tafoya Project, New Mexico
Mineral property expenses3 3 9 9
Total New Mexico Projects
Mineral property expenses144 443 150 449
Columbus Basin Project, Nevada
Exploration and evaluation costs (reversals)(1)
Mineral property expenses1 1 1
Total Nevada Projects
Exploration and evaluation costs (reversals)(1)
Mineral property expenses1 1 1
Sal Rica Project, Utah
Mineral property expenses1 1 1
Total Utah Projects
Mineral property expenses $ 1 1 1
Coosa Project, Alabama
Mineral property expenses6 6 65
Total Alabama Projects
Mineral property expenses $ 6 $ 6 $ 65

ASSET RETIREMENT OBLIGATION - S

ASSET RETIREMENT OBLIGATION - Summary of Asset Retirement Obligation (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
ASSET RETIREMENT OBLIGATION
Balance, beginning of period $ 6,300 $ 6,203 $ 6,203
Liabilities settled(167)(293)
Accretion expense $ 32 $ 30 138 $ 156 390
Balance, end of period6,271 6,271 6,300
Less: Current portion(949)(949)(894)
Non-current Portion $ 5,322 $ 5,322 $ 5,406

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) $ in Millions6 Months Ended
Jun. 30, 2020USD ($)
Kingsville Dome Project, Texas | Surety Bonds
Estimated costs associated with current reclamation through March 2021 $ 0.9

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($)May 21, 2020Apr. 28, 2020Apr. 13, 2020Aug. 06, 2019Jun. 06, 2019May 30, 2019Jul. 31, 2020May 31, 2020Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Period for financing from common stock24 months
Common stock outstanding after the effect of reverse stock spilt conversion6,664,815 6,664,815 3,339,380
Loan proceeds $ 19,500,000 $ 19,500,000
Common stock, par value $ 0.001 $ 0.001 $ 0.001
Proceeds from common stock $ 6,291,000 $ 1,154,000
Common Stock
Number of common stock issued1,902,182 164,058 221,263
Cantor Fitzgerald & Co | ATM Offering Agreement
Number of common stock issued1,959,422
Proceeds from common stock $ 10,200,000
Stock Purchase Agreement | Lincoln Park
Maximum aggregate offering price $ 8,000,000
Number of common stock issued156,250 104,294
Aggregate gross proceeds from common shares and warrants $ 550,751
Number of warrants issued for common stock250,000 182,515
Warrant purchase price per share $ 1.2989 $ 5.062
PA | Lincoln Park
Maximum aggregate offering price $ 12,000,000 $ 12,000,000 $ 3,200,000 $ 10,000,000
Period for financing from common stock24 months24 months
Number of common stock issued3,200,000 623,236 192,471
Proceeds from common stock $ 7,700,000 $ 593,356 $ 250,000
PA | Lincoln Park | Subsequent Event
Number of common stock issued1,100,000
Proceeds from common stock $ 2,300,000
Controlled Equity Offering Sales Agreement | Cantor Fitzgerald & Co | ATM Offering Agreement
Net proceeds from direct offering $ 3,100,000
Number of common stock issued930,225
Proceeds from common stock $ 3,000,000
Controlled Equity Offering Sales Agreement | Cantor Fitzgerald & Co | Maximum | ATM Offering Agreement
Sales commission percentage2.50%
Registration Rights Agreement | Lincoln Park
Number of common stock issued1,971,000

COMMON STOCK - Warrants (Detail

COMMON STOCK - Warrants (Details) - shares6 Months Ended
Jun. 30, 2020Jun. 30, 2019
COMMON STOCK [Abstract]
Warrants outstanding at beginning of period186,182 197,621
Issued0 0
Expired0 0
Warrants outstanding at end of period186,182 197,621

STOCK BASED COMPENSATION - (Det

STOCK BASED COMPENSATION - (Details) - USD ($)1 Months Ended6 Months Ended
Apr. 30, 2018Jun. 30, 2020Jun. 30, 2019Apr. 28, 2019Apr. 18, 2019Dec. 13, 2017Jul. 18, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense $ 27,771 $ 15,424
Alabama Graphite
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of replacement options outstanding2,840
Number of replacement options and warrants50,168
Replacement options and warrants shares exchange rate $ 0.0016
Exercise prices for the option and warrant shares $ 0.77809
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares reserved for future issuance58,586
2013 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares reserved for future issuance416,278 350,000 66,000 20,000
Stock option vesting period10 years

STOCK BASED COMPENSATION - Summ

STOCK BASED COMPENSATION - Summary of Stock Options Outstanding (Details) - $ / shares6 Months Ended
Jun. 30, 2020Jun. 30, 2019
STOCK BASED COMPENSATION
Number of stock options outstanding, Beginning of period37,786 19,170
Number of stock options outstanding, Granted125,804
Number of stock options outstanding, Expired(1,693)(624)
Number of stock options outstanding, End of period161,897 18,546
Number of stock options Exercisable, End of period36,093 18,546
Weighted average exercise price, Beginning of period $ 37.42 $ 79.78
Weighted average exercise price, Granted1.59
Weighted average exercise price, Expired101.6480.58
Weighted average exercise price, End of period8.9178.21
Weighted average exercise price Exercisable, End of period $ 34.41 $ 78.21

STOCK BASED COMPENSATION - Su_2

STOCK BASED COMPENSATION - Summary of Stock Options Outstanding and Exercisable by Stock Option Plan (Details) - $ / sharesJun. 30, 2020Dec. 31, 2019Jun. 30, 2019Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Stock Options, Number of Outstanding Stock Options161,897 37,786 18,546 19,170
Outstanding Stock Options, Weighted Average Exercise Price $ 8.91 $ 37.42 $ 78.21 $ 79.78
Exercisable Stock Options, Number of Exercisable Stock Options36,093 18,546
Exercisable Stock Options, Weighted Average Exercise Price $ 34.41 $ 78.21
2004 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Stock Options, Number of Outstanding Stock Options92
Outstanding Stock Options, Weighted Average Exercise Price $ 1,638
Exercisable Stock Options, Number of Exercisable Stock Options92
Exercisable Stock Options, Weighted Average Exercise Price $ 1,638
2004 Directors Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Stock Options, Number of Outstanding Stock Options3
Outstanding Stock Options, Weighted Average Exercise Price $ 10,380
Exercisable Stock Options, Number of Exercisable Stock Options3
Exercisable Stock Options, Weighted Average Exercise Price $ 10,380
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Stock Options, Number of Outstanding Stock Options158,962
Outstanding Stock Options, Weighted Average Exercise Price $ 6.57
Exercisable Stock Options, Number of Exercisable Stock Options33,158
Exercisable Stock Options, Weighted Average Exercise Price $ 25.47
Replacement Options - Alabama Graphite
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Stock Options, Number of Outstanding Stock Options2,840
Outstanding Stock Options, Weighted Average Exercise Price $ 75.94
Exercisable Stock Options, Number of Exercisable Stock Options2,840
Exercisable Stock Options, Weighted Average Exercise Price $ 75.94

STOCK BASED COMPENSATION - Su_3

STOCK BASED COMPENSATION - Summary of RSU Activity (Details) - Restricted Stock Units - $ / shares6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of RSUs, Unvested beginning of period2,260
Number of RSUs, Granted211,497 0
Number of RSUs, Forfeited0 (565)
Number of RSUs, Vested0 0
Number of RSUs, Unvested end of period211,497 1,695
Weighted Average Grant Date Fair Value, Unvested RSUs beginning of period $ 70
Weighted Average Grant Date Fair Value, Granted $ 2.03 0
Weighted Average Grant Date Fair Value, Forfeited0 70
Weighted Average Grant Date Fair Value, Vested0 0
Weighted Average Grant Date Fair Value, Unvested RSUs end of period $ 2.03 $ 70

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details)6 Months Ended
Jun. 30, 2020shares
EARNINGS PER SHARE
Potentially dilutive shares559,576

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands6 Months Ended12 Months Ended
Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Right-of-use lease asset $ 424 $ 484
Lease liability $ 434 493
Lease term using a discount rate9.50%
Lessee, Operating Lease, Existence of Option to Extend [true false]true
Option to extend3 years
Lease expense:
Operating lease cost $ 81 $ 81
Supplemental cash flow information related to leases:
Operating cash flows from operating leases79 77
Operating leases424 541 484
Supplemental balance sheet information related to leases:
Operating lease right-of-use assets424 $ 541 484
Current portion of lease liabilities154 153
Operating lease liabilities - Long term portion280 340
Total operating lease liabilities $ 434 $ 493
Weighted Average Remaining Lease Term3 years 2 months 12 days4 years 2 months 12 days
Discount Rate9.50%9.50%
Minimum
Lease terms1 year
Maximum
Lease terms3 years 6 months

LEASES - Lease payments and Mat

LEASES - Lease payments and Maturities of lease liabilities (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Undiscounted cash payments:
2020 (remainder of year) $ 81
2021161
2022162
202392
Total lease payments496
Less imputed interest(62)
Lease liability434 $ 493
Centennial, Colorado
Undiscounted cash payments:
2023500
Total lease payments $ 500

GEOGRAPHIC AND SEGMENT INFORM_3

GEOGRAPHIC AND SEGMENT INFORMATION (Details)3 Months Ended6 Months Ended
Jun. 30, 2020USD ($)Jun. 30, 2019USD ($)Jun. 30, 2020USD ($)segmentDec. 31, 2019USD ($)
Segment Reporting Information [Line Items]
Number of reportable operating segment | segment3
Long-term assets $ 24,645,000 $ 24,645,000 $ 24,618,000
Revenues0 $ 0
United States
Segment Reporting Information [Line Items]
Long-term assets $ 24,600,000 $ 24,600,000 $ 24,600,000
Percentage of assets (as a percent)100.00%100.00%

GEOGRAPHIC AND SEGMENT INFORM_4

GEOGRAPHIC AND SEGMENT INFORMATION - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Long-term assets by reportable segments
Net property, plant and equipment $ 20,414 $ 20,414 $ 20,337
Restricted cash3,807 3,807 3,797
Operating lease right-of-use assets424 424 484
Total long-term assets24,645 24,645 24,618
Statement of Operations, Loss before taxes
Mineral property expenses576 $ 808 1,178 $ 1,426
Product development expenses175 16 301 32
General and administrative1,659 1,700 3,438 3,405
Arbitration expenses28 354 697 485
Accretion of asset retirement costs32 30 138 156 390
Depreciation and amortization17 25 30 48
Total operating expenses2,487 2,933 5,782 5,552
Loss from operations(2,487)(2,933)(5,782)(5,552)
Other income (loss)20 158 28 (397)
Loss before taxes(2,467)(2,775)(5,754)(5,949)
Corporate
Long-term assets by reportable segments
Net property, plant and equipment102 102 114
Operating lease right-of-use assets407 407 463
Total long-term assets509 509 577
Statement of Operations, Loss before taxes
General and administrative1,094 1,216 2,283 2,364
Arbitration expenses28 354 697 485
Depreciation and amortization12 1 24 2
Total operating expenses1,134 1,571 3,004 2,851
Loss from operations(1,134)(1,571)(3,004)(2,851)
Other income (loss)28 158 28 (397)
Loss before taxes(1,106)(1,413)(2,976)(3,248)
Uranium
Long-term assets by reportable segments
Net property, plant and equipment11,340 11,340 11,251
Restricted cash3,797 3,797 3,787
Operating lease right-of-use assets17 17 21
Total long-term assets15,154 15,154 15,059
Statement of Operations, Loss before taxes
Mineral property expenses570 805 1,172 1,358
General and administrative442 433 868 825
Accretion of asset retirement costs32 30 138 156
Depreciation and amortization5 24 6 46
Total operating expenses1,049 1,292 2,184 2,385
Loss from operations(1,049)(1,292)(2,184)(2,385)
Other income (loss)(8)
Loss before taxes(1,057)(1,292)(2,184)(2,385)
Lithium
Statement of Operations, Loss before taxes
Mineral property expenses2 3
Total operating expenses2 3
Loss from operations(2)(3)
Loss before taxes(2)(3)
Graphite
Long-term assets by reportable segments
Net property, plant and equipment8,972 8,972 8,972
Restricted cash10 10 10
Total long-term assets8,982 8,982 $ 8,982
Statement of Operations, Loss before taxes
Mineral property expenses6 1 6 65
Product development expenses175 16 301 32
General and administrative123 51 287 216
Total operating expenses304 68 594 313
Loss from operations(304)(68)(594)(313)
Loss before taxes $ (304) $ (68) $ (594) $ (313)

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($) $ in MillionsMay 04, 2020Jun. 30, 2020
Paycheck Protection Program
Loan proceeds $ 19.5
URI, Inc. | PPP
Paycheck Protection Program
Loan proceeds $ 0.3
Debt instrument payment termsAny unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months.
Fixed interest rate1.00%
Debt term2 years
Deferral of payments, period6 months

NOTES PAYABLE - Related to PPP

NOTES PAYABLE - Related to PPP Loan (Details) - PPP $ in ThousandsJun. 30, 2020USD ($)
Long-term Debt, Current and Noncurrent [Abstract]
Long-term Debt, Total $ 331
Less: current maturities(146)
Notes payable, net of current $ 185