DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2021

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

6. DISCONTINUED OPERATIONS

In the third quarter of 2020, the Company executed the strategic decision to focus its resources on its graphite business, as further discussed below, and discontinue its investment in its lithium business. On December 31, 2020 the Company entered into a securities purchase agreement pursuant to which it agreed to sell its subsidiaries engaged in the uranium business in Texas and New Mexico to enCore. The transaction closed on December 31, 2020. The Company’s lithium business included mineral leases and water rights in Nevada and Utah. The Company elected not to renew the annual lease rentals on the mineral properties, which also voids the water rights.

In accordance with ASC 205‑20 – “Discontinued Operations,” the enCore transaction represented a major strategic shift for Westwater and resulted in the reclassification of the Company’s uranium activities as discontinued operations and disclosure of the associated profit/loss of the Company’s uranium business as a separate line-item on the Company’s Condensed Consolidated Statement of Operations for three months ended March 31, 2020.

The results of the Company’s uranium and lithium business segments included in discontinued operations for the three months ended March 31, 2020 were as follows:

For the Three Months Ended
(thousands of dollars)	March 31, 2020
Mineral property expenses	$	(602)
General and administrative expenses		(417)
Accretion of asset retirement obligations		(106)
Depreciation and amortization		(11)
Other income (expense)		11
Net Loss from Discontinued Operations	$	(1,125)

Our cash flow information for the three months ended March 31, 2020 included the following activities related to discontinued operations:

	For the Three Months Ended
	March 31,
(thousands of dollars)		2020
Depreciation and amortization	$	11
Accretion of asset retirement obligations		106