Westwater Resources (WWR) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01There is substantial doubt about our ability to continue as a going concern
2. 02The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. This assumes continuing operations and the realization of assets and liabilities in the normal course of business
3. 03Our business could be negatively impacted by inflationary pressures, which may result in increased costs of operations and negatively impact our ability to access capital
4. 04We face a variety of risks related to our planned battery-graphite manufacturing business
5. 05The construction and operation of the Kellyton Graphite Plant is subject to delays, cost overruns, and may not produce expected benefits
6. 06To the extent we are unable to successfully complete construction on time or at all, our ability to develop the Kellyton Graphite Plant could be adversely affected, which in turn could have a material adverse effect on our business, growth prospects, results of operations and financial condition
7. 07Volatility in graphite and vanadium prices may result in the Company not receiving an adequate return on invested capital
8. 08Our operations are subject to environmental risks
9. 09Competition from better-capitalized companies affects prices and our ability to acquire both properties and personnel
10. 10Because we have limited capital, inherent manufacturing and mining risks pose a significant threat to us compared with our larger competitors
11. 11We are dependent on experts and subject to workforce factors that could affect operations
12. 12Registration of shares issuable under the Company’s incentive plans may give rise to rescission rights in favor of award recipients
13. 13Our patent application and other protective measures may not adequately protect our proprietary intellectual property, and we may be infringing on the rights of others
14. 14Pandemics, epidemics or disease outbreaks, including the novel coronavirus (COVID-19 virus), may disrupt our business, supply chains and the business of our business partners, which could materially affect our operations, liquidity and results of operations
15. 15Any future changes to tax incentives that make it less likely for electric vehicles in which our CSPG products are an integrated component to qualify for such incentives could have a material adverse effect on our business, prospects, financial condition, results of operations, and cash flows
16. 16Because of our focus on producing and supplying low-cost, high-quality, and high-margin battery-grade natural graphite products for battery manufacturers, our future growth will be partially dependent on the demand for, and upon consumer’s willingness to adopt electric vehicles
17. 17Reductions or changes to tariffs or changes to existing regulations regarding global trade could decrease demand for our products

Risks Related to Exploration and Mining Activities

1. 18Exploration and development of graphite and vanadium properties are risky and subject to great uncertainties
2. 19The extent of the Company’s vanadium mineral reserves at the Coosa Graphite Deposit is unknown and may not be in sufficient quantities to make its extraction and processing economically feasible
3. 20The Company does not have and may not be able to obtain surface or access rights to all or a portion of the Coosa Graphite Deposit
4. 21Because mineral exploration and development activities are inherently risky, we may be exposed to environmental liabilities and other dangers. If we are unable to maintain adequate insurance, or liabilities exceed the limits of our insurance policies, we may be unable to continue operations
5. 22Title to the Coosa Graphite Deposit may be subject to defects in title or other claims, which could affect our property rights and claims

Risks Related to Ownership of Our Common Stock

1. 23Our stock price has been and may continue to be volatile and may fluctuate significantly, which may adversely impact investor confidence and results and increase the likelihood of securities class action litigation
2. 24The Company has no history of paying dividends on its common stock, and we do not anticipate paying dividends in the foreseeable future
3. 25Terms of subsequent financings may adversely impact holders of our securities
4. 26Shareholders would be diluted if we use common stock to raise capital, and the perception that such sales may occur could cause the price of our common stock to fall