Energy Fuels Inc 10-Q for FY2021 Q1

Energy Fuels Inc (UUUU)

10-Q 2021-05-13 For: 2021-03-31

Added on April 09, 2026

About this 10-Q

Energy Fuels Inc filed this 10-Q on May 13, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $353K; down 10.2% from $393K a year earlier
Net loss: $10.91M; compared with a net loss of $5.66M a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Ontario,	Canada	98-1067994
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


225 Union Blvd.,	Suite 600
Lakewood,	Colorado	80228
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, no par value	UUUU	NYSE American
	EFR	Toronto Stock Exchange
Warrants to purchase common shares	UUUU-WT	NYSE American
	EFR.WT	Toronto Stock Exchange


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐


			Page
PART I – FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS			9
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			24
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			36
ITEM 4. CONTROLS AND PROCEDURES			37
PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			39
ITEM 1A. RISK FACTORS			39
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			39
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			39
ITEM 4. MINE SAFETY DISCLOSURE			39
ITEM 5. OTHER INFORMATION			39
ITEM 6. EXHIBITS			39
SIGNATURES


	Three months ended
	March 31,
		2021		2020
Revenues


Alternate feed materials processing and other		$	353	$	393
Total revenues		353		393





Other operating costs
Impairment of inventories		—		1,078
Development, permitting and land holding		3,371		677
Standby costs		2,135		1,924


Accretion of asset retirement obligation		321		478
Selling costs		—		12

General and administration		3,373		4,030
Total operating loss		(8,847)		(7,806)

Interest expense		(16)		(350)
Other income (loss)		(2,047)		2,492
Net loss		(10,910)		(5,664)

Items that may be reclassified in the future to profit and loss
Foreign currency translation adjustment		353		152

Other comprehensive income		353		152
Comprehensive loss		$	(10,557)	$	(5,512)

Net loss attributable to:
Owners of the Company		$	(10,908)	$	(5,657)
Non-controlling interests		(2)		(7)
		$	(10,910)	$	(5,664)
Comprehensive loss attributable to:
Owners of the Company		$	(10,555)	$	(5,505)
Non-controlling interests		(2)		(7)
		$	(10,557)	$	(5,512)

Basic and diluted loss per share		$	(0.08)	$	(0.05)


	March 31, 2021		December 31, 2020
ASSETS
Current assets
Cash and cash equivalents	$	42,703	$	20,168
Marketable securities	1,407		2,247
Trade and other receivables, net	1,177		1,169
Inventories, net	27,976		27,575
Prepaid expenses and other assets	1,933		1,313
Total current assets	75,196		52,472
Inventories, net	1,346		1,346
Operating lease right of use asset	601		662
Investments accounted for at fair value	2,254		779
Property, plant and equipment, net	23,457		23,621
Mineral properties, net	83,539		83,539
Restricted cash	20,826		20,817
Total assets	$	207,219	$	183,236

LIABILITIES AND EQUITY

Current liabilities
Accounts payable and accrued liabilities	$	2,831	$	3,321
Current portion of operating lease liability	298		289
Current portion of warrant liabilities	11,571		8,573
Current portion of asset retirement obligation	131		131

Total current liabilities	14,831		12,314

Operating lease liability	392		469
Asset retirement obligation	13,189		12,907

Total liabilities	28,412		25,690
Equity
Share capital Common shares, without par value, unlimited shares authorized; shares issued and outstanding 140,816,496 at March 31, 2021 and 134,311,033 at December 31, 2020	581,135		549,317
Accumulated deficit	(408,720)		(397,812)
Accumulated other comprehensive income	2,661		2,308
Total shareholders' equity	175,076		153,813
Non-controlling interests	3,731		3,733
Total equity	178,807		157,546
Total liabilities and equity	$	207,219	$	183,236

Commitments and contingencies (Note 14)


	Common Stock			Deficit		Accumulated other comprehensive income		Total shareholders' equity		Non-controlling interests		Total equity
	Shares	Amount
Balance at December 31, 2020	134,311,033	$	549,317	$	(397,812)	$	2,308	$	153,813	$	3,733	$	157,546
Net loss	—	—		(10,908)		—		(10,908)		(2)		(10,910)
Other comprehensive loss	—	—		—		353		353		—		353

Shares issued for cash by at-the-market offering	5,534,166	30,603		—		—		30,603		—		30,603
Share issuance cost	—	(689)		—		—		(689)		—		(689)
Share-based compensation	—	697		—		—		697		—		697
Shares issued for exercise of stock options	278,111	666		—		—		666		—		666
Shares issued for the vesting of restricted stock units	478,781	—		—		—		—		—		—
Cash paid to fund employee income tax withholding due upon vesting of restricted stock units	—	(659)		—		—		(659)		—		(659)
Shares issued for exercise of warrants	190,405	1,105		—		—		1,105		—		1,105
Shares issued for consulting services	24,000	95		—		—		95		—		95

Balance at March 31, 2021	140,816,496	$	581,135	$	(408,720)	$	2,661	$	175,076	$	3,731	$	178,807


	Cost Basis		Gross Unrealized Losses		Gross Unrealized Gains		Fair Value

Marketable equity securities	$	824	$	(399)	$	982	$	1,407
Marketable securities	$	824	$	(399)	$	982	$	1,407


	March 31, 2021		December 31, 2020
Concentrates and work-in-progress(1)	$	25,947	$	25,768
Inventory of ore in stockpiles	241		241
Raw materials and consumables	3,134		2,912
	$	29,322	$	28,921
Inventories - by duration
Current	$	27,976	$	27,575
Long term - raw materials and consumables	1,346		1,346
	$	29,322	$	28,921


	March 31, 2021						December 31, 2020
	Cost		Accumulated Depreciation		Net Book Value		Cost		Accumulated Depreciation		Net Book Value
Property, plant and equipment
Nichols Ranch	$	29,210	$	(16,659)	$	12,551	$	29,210	$	(16,150)	$	13,060
Alta Mesa	13,626		(4,315)		9,311		13,626		(4,088)		9,538
Equipment and other	14,130		(12,535)		1,595		13,528		(12,505)		1,023
Property, plant and equipment total	$	56,966	$	(33,509)	$	23,457	$	56,364	$	(32,743)	$	23,621


	March 31, 2021		December 31, 2020
Mineral properties
Uranerz ISR properties	$	25,974	$	25,974
Sheep Mountain	34,183		34,183
Roca Honda	22,095		22,095
Other	1,287		1,287
Mineral properties total	$	83,539	$	83,539


	March 31, 2021		December 31, 2020
Asset retirement obligation, beginning of period	$	13,038	$	18,972
Revision of estimate	(39)		(7,845)
Accretion of liabilities	321		1,911

Asset retirement obligation, end of period	$	13,320	$	13,038
Asset retirement obligation:
Current	$	131	$	131
Non-current	13,189		12,907
Asset retirement obligation, end of period	$	13,320	$	13,038


	March 31, 2021		December 31, 2020
Restricted cash, beginning of period	$	20,817	$	20,081
Additional collateral posted	9		768
Refunds of collateral	—		(32)
Restricted cash, end of period	$	20,826	$	20,817


	Three months ended March 31,
		2021		2020
Operating leases		$	77	$	95
Short-term leases		81		74

Total lease expense		$	158	$	169


	Three months ended March 31,
	2021		2020
Weighted average remaining lease term of operating leases	2.2 years		3.1 years
Weighted average discount rate of operating leases	9.0	%	9.0	%


Years Ending December 31:
2021 (excluding the three months ended March 31, 2021)	$	259
2022	350
2023	148
2024	—
2025	—
Thereafter	—
Total lease payments	$	757
Less: interest	(67)
Present value of lease liabilities	$	690


Risk-free interest rate	0.42		%
Expected life	5.0 years
Expected volatility	61.88		%	*
Expected dividend yield	—		%
Weighted average grant date fair value	$	2.03


	Range of Exercise Prices	Weighted Average Exercise Price		Number of Options
Balance, December 31, 2019	$1.70 - $15.61	$	3.43	1,487,433
Granted	1.76 - 3.06	1.77		711,414
Exercised	1.70 - 2.92	1.97		(302,707)
Forfeited	1.70 - 5.18	3.26		(188,541)
Expired	4.12 - 5.22	4.40		(98,512)
Balance, December 31, 2020	$1.70 - $15.61	$	2.91	1,609,087
Granted	3.89 - 7.14	3.93		162,920
Exercised	1.70 - 4.48	2.40		(278,111)
Forfeited	—	—		—
Expired	2.12 - 15.61	9.65		(22,836)
Balance, March 31, 2021	$1.70 - $12.59	$	3.02	1,471,060


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested December 31, 2020	403,990	$	0.94
Granted	162,920	2.03
Vested	(280,438)	1.35
Forfeited	—	—
Non-vested March 31, 2021	286,472	$	1.16


	Weighted Average Exercise Price		Number of SARs
Balance, December 31, 2019	$	2.92	2,165,509
Granted	—		—
Exercised	—		—
Forfeited	2.92		(444,886)
Expired	—		—
Balance, December 31, 2020	$	2.92	1,720,623
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	—		—
Balance, March 31, 2021	$	2.92	1,720,623


	Level 1		Level 2		Level 3		Total
Investments at fair value	$	2,254	$	—	$	—	$	2,254
Marketable equity securities	1,407		—		—		1,407

Warrant liabilities	(11,571)		—		—		(11,571)

	$	(7,910)	$	—	$	—	$	(7,910)


Cash and cash equivalents	$	1,599
Accounts payable and accrued liabilities	(404)

Total	$	1,195


('000s)	Change for Sensitivity Analysis	Increase (decrease) in other comprehensive income
Strengthening net earnings	+1% change in US dollar	$	15

Weakening net earnings	-1% change in U.S. dollar	$	(15)


Exhibit
Number			Description
3.1			Articles of Continuance dated September 2, 2005 (1)
3.2			Articles of Amendment dated May 26, 2006 (2)
3.3			By-law No. 3 (3)
4.1			Shareholder Rights Plan between Energy Fuels Inc. and CIBC Mellon Trust Company dated February 3, 2009 (4)
4.2			Warrant Indenture between Energy Fuels Inc., CST Trust Company and American Stock Transfer & Trust Company, LLC dated September 20, 2016 (5)
4.3			Uranerz Energy Corporation 2005 Nonqualified Stock Option Plan, as amended and restated as of June 15, 2011 (6)
4.4			Amended and Restated Shareholder Rights Plan Agreement between Energy Fuels Inc. and AST Trust Company, dated March 29, 2018 and effective as of May 30, 2018 by shareholder vote (7)
4.5			2018 Omnibus Equity Incentive Compensation Plan, as amended and restated as of March 29, 2018 (8)
4.6			Shareholder Rights Plan Agreement between Energy Fuels Inc. and American Stock Transfer & Trust Company, LLC, dated March 18, 2021 (9)
4.7			2 021 Omnibus Equity Incentive Compensation Plan , as amended and restated on March 18, 2 021 (10)
10.1			Sales Agreement by and among Energy Fuels Inc., Cantor Fitzgerald & Co., H.C. Wainwright & Co., LLC and Roth Capital Partners, LLC, dated May 6, 2019 (11)
10.2			Employment Agreement by and between Energy Fuels Inc. and Mark Chalmers dated March 18, 2021 (12)
10.3			Employment Agreement by and between Energy Fuels Inc. and David C. Frydenlund dated March 18, 2021 (13)
10.4			Employment Agreement by and between Energy Fuels Inc. and Curtis Moore dated October 6, 2017 (14)
10.5			Employment Agreement by and between Energy Fuels Inc. and Dee Ann Nazarenus dated September 1, 2020 (15)
10.6			Employment Agreement by and between Energy Fuels Inc. and Scott Bakken dated September 1, 2020 (16)
10.7			Consulting Agreement between Energy Fuels Inc. and Liviakis Financial Communications, Inc. dated March 29, 2018 and effective October 1, 2017 (17)
10.8			October 2018 Amended and Restated Consulting Agreement between Energy Fuels Inc. and Liviakis Financial Communications, Inc. dated October 1, 2018 (18)
10.9			October 2019 Second Extension to Consulting Agreement between Energy Fuels Inc. and Liviakis Financial Communications, Inc. dated October 1, 2019 (19)
10.10			October 2020 Third Extension to Consulting Agreement between Energy Fuels Inc. and Redwood Empire Financial Communications Inc. ("Redwood"), including its assignment and assumption from Liviakis Financial Communications, Inc. to Redwood, entered into with Energy Fuels Inc. on October 1, 2020 (20).
10.11			October 2021 Fourth Extension to Consulting Agreement between Energy Fuels Inc. and Redwood Empire Financial Communications Inc., dated March 18, 2021 and effective as of October 1, 2021.
23.1			Consent of Mark S. Chalmers
31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)) under the Securities Exchange Act of 1934, as amended
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended
32.1			Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
95.1			Mine Safety Disclosure
101.INS			XBRL Instance Document
101.SCH			XBRL Taxonomy Extension – Schema
101.CAL			XBRL Taxonomy Extension – Calculations
101.DEF			XBRL Taxonomy Extension – Definitions


101.LAB			XBRL Taxonomy Extension – Labels
101.PRE			XBRL Taxonomy Extension – Presentations


(1)			Incorporated by reference to Exhibit 3.1 of Energy Fuels’ Form F-4 filed with the SEC on May 8, 2015.
(2)			Incorporated by reference to Exhibit 3.2 of Energy Fuels’ Form F-4 filed with the SEC on May 8, 2015.
(3)			Incorporated by reference to Appendix C of Energy Fuels’ Schedule 14A filed with the SEC on April 2, 2021.
(4)			Incorporated by reference to Exhibit 10.9 to Energy Fuels’ Form F-4 filed on May 8, 2015.
(5)			Incorporated by reference to Exhibit 4.1 to Energy Fuels’ Form 8-K filed on September 20, 2016.
(6)			Incorporated by reference to Exhibit 4.2 to Energy Fuels’ Form S-8 filed on June 24, 2015.
(7)			Incorporated by reference to Schedule B to Energy Fuels’ Schedule 14A filed on April 11, 2018.
(8)			Incorporated by reference to Schedule C to Energy Fuels’ Schedule 14A filed on April 11, 2018.
(9)			Incorporated by reference to Appendix B of Energy Fuels’ Schedule 14A filed with the SEC on April 2, 2021.
(10)			Incorporated by reference to Appendix A of Energy Fuels’ Schedule 14A filed with the SEC on April 2, 2021.
(11)			Incorporated by reference to Exhibit 10.1 to Energy Fuels’ Form 10-Q filed with the SEC on August 5, 2019.
(12)			Incorporated by reference to Exhibit 10.9 to Energy Fuels’ Form 10-K filed with the SEC on March 22, 2021.
(13)			Incorporated by reference to Exhibit 10.10 to Energy Fuels’ Form 10-K filed with the SEC on March 22, 2021.
(14)			Incorporated by reference to Exhibit 10.4 to Energy Fuels’ Form 10-Q filed with the SEC on November 2, 2020.
(15)			Incorporated by reference to Exhibit 10.5 to Energy Fuels’ Form 10-Q filed with the SEC on November 2, 2020.
(16)			Incorporated by reference to Exhibit 10.6 to Energy Fuels’ Form 10-Q filed with the SEC on November 2, 2020.
(17)			Incorporated by reference to Exhibit 1.1 to Energy Fuels’ Form 8-K filed on April 3, 2018.
(18)			Incorporated by reference to Exhibit 14.16 to Energy Fuels’ Form 10-Q filed with the SEC on November 5, 2018.
(19)			Incorporated by reference to Exhibit 10.10 to Energy Fuels’ Form 10-K filed with the SEC on March 17, 2020.
(20)			Incorporated by reference to Exhibit 10.4 to Energy Fuels’ Form 10-K filed with the SEC on March 22, 2021.


Dated: May 13, 2021	By:	/s/ Mark S. Chalmers
		Mark S. Chalmers
		President & Chief Executive Officer

Dated: May 13, 2021	By:	/s/ David C. Frydenlund
		David C. Frydenlund
		Chief Financial Officer


ENERGY FUELS INC. By: /s/ Mark Chalmers Mark Chalmers, President & CEO Date: March 18, 2021			REDWOOD EMPIRE FINANCIAL COMMUNICATIONS By: /s/ Michael Bayes Michael Bayes, CEO Date: March 18, 2021


1.	I have reviewed this quarterly report on Form 10-Q of Energy Fuels 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 registrant's 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 registrant's 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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's 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 registrant's 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 registrant's internal control over financial reporting.


						/s/ Mark S. Chalmers
Date: May 13, 2021						Mark S. Chalmers
						President and Chief Executive Officer
						(Principal Executive Officer)