DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2021

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

6. DISCONTINUED OPERATIONS

In the third quarter of 2020, the Company executed the strategic decision to focus its resources on its graphite business, and discontinued its investment in its lithium and uranium businesses. 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. On December 31, 2020, the Company sold its subsidiaries engaged in its uranium business to enCore (see Note 3).

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 the three and nine months ended September 30, 2020.

The results of the Company’s uranium and lithium business segments included in discontinued operations for the three and nine months ended September 30, 2020 were as follows:

	For the Three Months Ended		For the Nine Months Ended
(thousands of dollars)	September 30, 2020		September 30, 2020
Mineral property expenses	$	(752)	$	(1,924)
General and administrative expenses		(405)		(1,273)
Accretion of asset retirement obligations		(32)		(170)
Depreciation and amortization		(30)		(36)
Impairment of uranium properties		(5,200)		(5,200)
Other income (expense)		30		30
Net Loss from Discontinued Operations	$	(6,389)	$	(8,573)

Our cash flow information for the nine months ended September 30, 2020 included the following activities related to discontinued operations:

	For the Nine Months Ended
(thousands of dollars)		September 30, 2020
Depreciation and amortization	$	36
Capital Expenditures		(101)
Accretion of asset retirement obligations		170
Impairment of uranium properties		5,200