Westwater Resources (WWR) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01Our business could be negatively impacted by inflationary pressures, which may result in increased costs of operations and negatively impact our ability to access capital
2. 02We face a variety of risks related to our graphite manufacturing business serving multiple end markets46% rewritten
3. 03The construction and operation of the Kellyton Graphite Plant is subject to delays, cost overruns, and may not produce expected benefits79% rewritten
4. 04Volatility in graphite and vanadium prices may result in the Company not receiving an adequate return on invested capital29% rewritten
5. 05Our operations are subject to environmental risks
6. 06Competition from better-capitalized companies affects prices and our ability to acquire both properties and personnel
7. 07Because we have limited capital, inherent manufacturing and mining risks pose a significant threat to us compared with our larger competitors
8. 08We are dependent on experts and subject to workforce factors that could affect operations
9. 09Registration of shares issuable under the Company’s incentive plans may give rise to rescission rights in favor of award recipients
10. 10Our patent and other protective measures may not adequately protect our proprietary intellectual property, and we may be infringing on the rights of others24% rewritten
11. 11Pandemics, 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
12. 12Any 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
13. 13Because 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
14. 14Reductions, expirations, modifications or other changes to tariffs, anti-dumping and countervailing duties, or other changes to existing trade regulations could decrease demand for our products95% rewritten

Risks Related to Exploration and Mining Activities

1. 15Exploration and development of graphite and vanadium properties are risky and subject to great uncertainties
2. 16The 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. 17The 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. 18Because 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. 19Title 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. 20Our 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. 21The Company has no history of paying dividends on its Common Stock, and we do not anticipate paying dividends in the foreseeable future
3. 22Terms of subsequent financings may adversely impact holders of our securities
4. 23Shareholders 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