Westwater's Q2 Loss Narrows, Bolstered by $11.9M Financing Push

TL;DR

**WWR is burning cash but raising capital to build out its graphite plant, a high-risk, high-reward bet on critical minerals.**

AI Summary

WESTWATER RESOURCES, INC. reported a net loss of $3.869 million for the three months ended June 30, 2025, a slight increase from the $3.819 million net loss in the same period of 2024. For the six months ended June 30, 2025, the net loss was $6.545 million, an improvement from the $6.717 million loss in the prior year. The company's cash and cash equivalents significantly increased to $6.704 million as of June 30, 2025, up from $4.272 million at December 31, 2024, primarily due to $11.905 million in financing activities. This financing included $5.000 million from Series A-1 Convertible Notes and $7.612 million from the issuance of Common Stock. Property, plant, and equipment, net, grew to $139.225 million from $137.868 million, reflecting ongoing capital expenditures of $5.057 million for the six months ended June 30, 2025, related to the Kellyton Graphite Plant. General and administrative expenses rose to $3.133 million for the three months ended June 30, 2025, compared to $2.489 million in the prior year, indicating increased operational overhead. The company continues to focus on its Coosa Graphite Deposit and Kellyton Graphite Plant, with significant capital investment in these projects.

Why It Matters

For investors, Westwater's continued net losses, despite a slight improvement year-over-year, highlight the capital-intensive nature of developing its Coosa Graphite Deposit and Kellyton Graphite Plant. The significant capital raises, including $5.000 million from Series A-1 Convertible Notes and $7.612 million from common stock issuance, are crucial for funding these projects but also lead to shareholder dilution, with weighted average shares outstanding increasing to 75,983,998. Employees and customers will be watching the progress of the Kellyton Graphite Plant, as its successful development is key to the company's long-term viability and its ability to become a significant player in the critical minerals market, particularly for electric vehicle batteries, competing with established global graphite suppliers.

Risk Assessment

Risk Level: high — The company reported a net loss of $6.545 million for the six months ended June 30, 2025, and has an accumulated deficit of $380.231 million, indicating a history of unprofitability. Significant capital expenditures of $5.057 million for the six months ended June 30, 2025, coupled with reliance on equity and convertible debt financing, such as the $5.000 million Series A-1 Convertible Notes, expose the company to substantial financial risk and potential dilution.

Analyst Insight

Investors should closely monitor WWR's progress on the Kellyton Graphite Plant and its ability to secure additional non-dilutive funding. Given the high burn rate and reliance on capital raises, new investors should exercise extreme caution, while existing investors should assess their risk tolerance against the long-term potential of critical mineral production.

Financial Highlights

debt To Equity

0.12

revenue

$0

operating Margin

N/A

total Assets

$150.498M

total Debt

$15.728M

net Income

-$6.545M

eps

-$0.09

gross Margin

N/A

cash Position

$6.704M

revenue Growth

N/A

Key Numbers

• $6.545M — Net Loss (For the six months ended June 30, 2025, an improvement from $6.717M in 2024.)
• $6.704M — Cash and Cash Equivalents (As of June 30, 2025, up from $4.272M at December 31, 2024.)
• $11.905M — Net Cash Provided By Financing Activities (For the six months ended June 30, 2025, primarily from convertible notes and common stock issuance.)
• $5.000M — Proceeds from Series A-1 Convertible Notes (Issued on June 13, 2025, to institutional investors.)
• $7.612M — Issuance of Common Stock, net of issuance costs (For the six months ended June 30, 2025, contributing to financing activities.)
• $139.225M — Net Property, Plant and Equipment (As of June 30, 2025, reflecting ongoing investment in the Kellyton Graphite Plant.)
• $5.057M — Capital Expenditures (For the six months ended June 30, 2025, related to project development.)
• 75,983,998 — Weighted Average Number of Shares Outstanding (For the three months ended June 30, 2025, indicating significant dilution.)
• $380.231M — Accumulated Deficit (As of June 30, 2025, highlighting historical losses.)
• $3.133M — General and Administrative Expenses (For the three months ended June 30, 2025, an increase from $2.489M in 2024.)

Key Players & Entities

• WESTWATER RESOURCES, INC. (company) — Registrant as Specified in Its Charter
• Lincoln Park Capital Fund, LLC (company) — Purchaser of Common Stock
• Cantor Fitzgerald & Co. (company) — Former ATM Offering Agreement partner
• H.C. Wainwright & Co., LLC (company) — Current ATM Sales Agreement partner
• SK On Co., Ltd. (company) — Electric vehicle battery developer and manufacturer
• U.S. Securities and Exchange Commission (regulator) — Filing oversight body
• Financial Accounting Standards Board (regulator) — Accounting standards setter
• NYSE American (regulator) — Stock exchange for Common Stock
• Coosa Graphite Deposit (company) — Company's graphite mineral deposit
• Kellyton Graphite Plant (company) — Company's planned battery-grade graphite processing facility

FAQ

Risk Factors

• Dependence on Future Financing [high — financial]: The company has a history of net losses and an accumulated deficit of $380.231 million as of June 30, 2025. Continued operations and capital expenditures, particularly for the Kellyton Graphite Plant, are dependent on securing additional financing. A failure to obtain necessary funding could materially impact the company's ability to continue as a going concern.
• Development and Commercialization Risks [high — operational]: The company's success hinges on the successful development and commercialization of its graphite projects, specifically the Kellyton Graphite Plant. Delays or failures in construction, permitting, or achieving production targets could significantly harm financial results and future prospects.
• Commodity Price Volatility [medium — market]: The company's revenue is expected to be derived from the sale of graphite. Fluctuations in graphite prices, driven by global supply and demand dynamics, could adversely affect the company's profitability and financial performance.
• Environmental and Permitting Risks [medium — regulatory]: The development of mineral properties is subject to extensive environmental regulations and permitting requirements. Obtaining and maintaining necessary permits, and complying with environmental laws, can be costly and time-consuming, with potential for delays or project cancellations.
• Increased General and Administrative Expenses [medium — operational]: General and administrative expenses increased to $3.133 million for the three months ended June 30, 2025, from $2.489 million in the prior year. This rise indicates increasing operational overhead, which could pressure margins if not managed effectively.

Industry Context

Westwater Resources operates in the critical minerals sector, focusing on graphite extraction and processing, essential for battery technologies and other industrial applications. The demand for graphite is projected to grow significantly due to the electric vehicle and renewable energy sectors. However, the industry is competitive, with established global producers and emerging players vying for market share and technological advancements.

Regulatory Implications

The company faces significant regulatory hurdles related to environmental compliance, mining permits, and land use for its graphite projects. Failure to navigate these regulations effectively, including obtaining and maintaining necessary permits for operations like the Kellyton Graphite Plant, could lead to substantial delays, increased costs, or even project abandonment.

What Investors Should Do

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Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reported net loss of $3.869 million for the quarter and $6.545 million for the six months. Cash position increased to $6.704 million due to financing activities.
• 2025-06-13: Issuance of Series A-1 Convertible Notes — Raised $5.000 million, contributing to the significant increase in cash and cash equivalents and supporting ongoing project development.
• 2025-06-30: Net Property, Plant and Equipment — Stood at $139.225 million, reflecting continued capital investment of $5.057 million in the Kellyton Graphite Plant during the first six months of the year.
• 2024-12-31: End of Fiscal Year 2024 — Cash and cash equivalents were $4.272 million, providing a baseline for the significant cash increase in the first half of 2025.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception, less any cumulative net income. (Indicates the company's historical unprofitability, with a deficit of $380.231 million as of June 30, 2025.)

Series A-1 Convertible Notes

Debt instruments that can be converted into shares of the issuing company's common stock under certain conditions. (The company raised $5.000 million from these notes, which contributed to its cash position and represents a potential future dilution of common stock.)

Property, plant and equipment, net

The value of a company's tangible assets used in operations, minus accumulated depreciation. (Shows the company's investment in its physical assets, such as the Kellyton Graphite Plant, which grew to $139.225 million.)

Weighted Average Number of Shares Outstanding

The average number of a company's outstanding shares over a period, used to calculate earnings per share. (For the three months ended June 30, 2025, this figure was 75,983,998, indicating significant share issuance and potential dilution.)

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, and equipment. (The company reported $5.057 million in capital expenditures for the six months ended June 30, 2025, primarily for the Kellyton Graphite Plant.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Westwater Resources reported a net loss of $6.545 million, an improvement from $6.717 million in the prior year. Cash and cash equivalents saw a substantial increase to $6.704 million from $4.272 million at year-end 2024, driven by $11.905 million in financing activities, including convertible notes and stock issuance. Property, plant, and equipment grew to $139.225 million due to $5.057 million in capital expenditures for the Kellyton Graphite Plant. However, general and administrative expenses rose to $3.133 million for the quarter, indicating increased operational costs.

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value WWR NYSE American Indic
• $5,000,000 — te in the aggregate principal amount of $5,000,000. Series B-1 Convertible Notes On Augu

Filing Documents

• wwr-20250630x10q.htm (10-Q) — 1235KB
• wwr-20250630xex31d1.htm (EX-31.1) — 10KB
• wwr-20250630xex31d2.htm (EX-31.2) — 10KB
• wwr-20250630xex32d1.htm (EX-32.1) — 6KB
• wwr-20250630xex32d2.htm (EX-32.2) — 6KB
• 0001558370-25-011384.txt ( ) — 5691KB
• wwr-20250630.xsd (EX-101.SCH) — 38KB
• wwr-20250630_cal.xml (EX-101.CAL) — 41KB
• wwr-20250630_def.xml (EX-101.DEF) — 126KB
• wwr-20250630_lab.xml (EX-101.LAB) — 317KB
• wwr-20250630_pre.xml (EX-101.PRE) — 244KB
• wwr-20250630x10q_htm.xml (XML) — 1062KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 5

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 5

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 31

- OTHER INFORMATION

PART II - OTHER INFORMATION 31

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 31

RISK FACTORS

ITEM 1A. RISK FACTORS 31

UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES 31

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 31

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 31

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 31

EXHIBITS

ITEM 6. EXHIBITS 32

SIGNATURES

SIGNATURES 33 2 Table of Contents DEFINITIONS When used in this Form 10-Q, the following terms have the meaning indicated. T erm M eaning Additional Commitment Shares Pursuant to the 2024 Lincoln Park PA and in connection with each purchase of Common Stock by Lincoln Park, the Company may issue to Lincoln Park up to an additional 600,000 shares of Common Stock. Annual Report Westwater Resources, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2024. ASU FASB Accounting Standards Update. ATM Offering Agreement Controlled Equity Offering Sale Agreement between Westwater Resources and Cantor Fitzgerald & Co. dated April 14, 2017 and terminated effective August 29, 2024. ATM Sales Agreement At The Market Offering Agreement between Westwater Resources and H.C. Wainwright & Co., LLC dated August 30, 2024. August Securities Purchase Agreement Securities Purchase Agreement dated August 7, 2025, between Westwater Resources and certain institutional investors. Board The Board of Directors of Westwater Resources, Inc. Cantor Cantor Fitzgerald & Co. Common Stock Common stock of the Company, $0.001 par value per share. Coosa Graphite Deposit The Company's graphite mineral deposit located near Rockford, Alabama. CSPG Coated spherical purified graphite. EU Critical Raw Materials List The list of raw materials that are crucial to the economy of the European Union published by the European Commission. FASB The Financial Accounting Standards Board. FASB Concepts Statements FASB Concepts Statements set the objectives, qualitative characteristics, and other concepts that guide selection of economic phenomena to be recognized and measured for financial reporting and their display in financial statements or related means of communicating information. graphite A naturally occurring carbon material with electrical properties that enhance the performance of electrical storage batteries, listed on the U.S. Critical Minerals List an

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS WESTWATER RESOURCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (expressed in thousands of dollars, except share amounts) (unaudited) June 30, December 31, 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 6,704 $ 4,272 Prepaid and other current assets 620 591 Total Current Assets 7,324 4,863 Property, plant and equipment, at cost: Property, plant and equipment 140,241 138,581 Less: Accumulated depreciation ( 1,016 ) ( 713 ) Net property, plant and equipment 139,225 137,868 Operating lease right-of-use assets 152 217 Finance lease right-of-use assets 11 14 Other long-term assets 3,786 3,395 Total Assets $ 150,498 $ 146,357 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 7,247 $ 9,517 Series A-1 Convertible Notes 5,000 — Accrued liabilities 1,935 2,105 Operating lease liability, current 143 134 Finance lease liability, current 6 6 Total Current Liabilities 14,331 11,762 Operating lease liability, net of current 13 86 Finance lease liability, net of current 6 9 Other long-term liabilities 1,378 1,378 Total Liabilities 15,728 13,235 Commitments and Contingencies (see note 13) Stockholders' Equity: Common Stock, 200,000,000 shares authorized, $ 0.001 par value Issued shares - 78,439,226 and 64,830,081 , respectively Outstanding shares - 78,439,065 and 64,829,920 , respectively 78 65 Paid-in capital 515,181 507,001 Accumulated deficit ( 380,231 ) ( 373,686 ) Less: Treasury stock ( 161 shares), at cost ( 258 ) ( 258 ) Total Stockholders' Equity 134,770 133,122 Total Liabilities and Stockholders' Equity $ 150,498 $ 146,357 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents WESTWATER RESOURCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (expressed in thousands