uec20210131_10q.htm

10-Q 1 uec20210131_10q.htm FORM 10-Q uec20210131_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-33706

URANIUM ENERGY CORP.

(Exact name of registrant as specified in its charter)

Nevada		98-0399476
(State or other jurisdiction of incorporation of organization)		(I.R.S. Employer Identification No.)

1030 West Georgia Street, Suite 1830, Vancouver, B.C., Canada		V6E 2Y3
(Address of principal executive offices)		(Zip Code)

	(604) 682-9775
	(Registrant’s telephone number, including area code)

	N/A
	(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	UEC	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 214,442,838 shares of common stock outstanding as of March 15, 2021.

URANIUM ENERGY CORP.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
PART II – OTHER INFORMATION		34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46
SIGNATURES		47

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JANUARY 31, 2021

(Unaudited – Expressed in U.S. Dollars)

URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited – Expressed in U.S. Dollars)

	Note(s)		January 31, 2021			July 31, 2020

CURRENT ASSETS
Cash and cash equivalents		6	$	8,713,193		$	5,147,703
Term deposits		3		4,000,000			-
Inventories				211,662			211,662
Prepaid expenses and deposits				1,399,645			1,111,152
Other current assets				113,370			119,362
TOTAL CURRENT ASSETS				14,437,870			6,589,879

MINERAL RIGHTS AND PROPERTIES		4		63,734,753			63,655,503
PROPERTY, PLANT AND EQUIPMENT		5		7,446,299			7,019,817
RESTRICTED CASH		6		1,839,300			1,839,216
EQUITY-ACCOUNTED INVESTMENT		7		11,961,434			11,515,327
OTHER NON-CURRENT ASSETS				722,963			769,875
TOTAL ASSETS			$	100,142,619		$	91,389,617


CURRENT LIABILITIES
Accounts payable and accrued liabilities			$	1,576,236		$	1,858,499
Due to a related party		8		16,520			31,334
Other current liabilities		12		131,466			147,569
Current portion of other loans payable		10		218,129			-
Current portion of long-term debt		9		17,525,172			-
TOTAL CURRENT LIABILITIES				19,467,523			2,037,402

LONG-TERM DEBT		9		-			19,869,477
OTHER LOANS PAYABLE		10		162,939			307,092
ASSET RETIREMENT OBLIGATIONS		11		3,836,484			3,734,314
OTHER NON-CURRENT LIABILITIES		12		485,687			479,714
DEFERRED TAX LIABILITIES				543,143			545,000
TOTAL LIABILITIES				24,495,776			26,972,999

STOCKHOLDERS' EQUITY
Capital stock
Common stock $0.001 par value: 750,000,000 shares authorized, 200,142,556 shares issued and outstanding (July 31, 2020 - 184,635,870)		13		200,142			184,636
Additional paid-in capital				360,110,479			341,059,972
Share issuance obligation				143,563			103,554
Accumulated deficit				(285,235,896	)		(276,811,300	)
Accumulated other comprehensive loss				428,555			(120,244	)
TOTAL EQUITY				75,646,843			64,416,618
TOTAL LIABILITIES AND EQUITY			$	100,142,619		$	91,389,617

SUBSEQUENT EVENTS		1,6,9,13,16

The accompanying notes are an integral part of these condensed consolidated financial statements.

URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited – Expressed in U.S. Dollars)

			Three Months Ended January 31,						Six Months Ended January 31,
	Note(s)		2021			2020			2021			2020
COSTS AND EXPENSES
Mineral property expenditures		4	$	961,257		$	1,323,323		$	1,663,018		$	2,846,774
General and administrative		8,13		2,464,703			2,394,794			5,050,392			4,709,964
Depreciation, amortization and accretion		4,5,11		97,598			81,752			196,778			158,138
LOSS FROM OPERATIONS				(3,523,558	)		(3,799,869	)		(6,910,188	)		(7,714,876	)

OTHER INCOME (EXPENSES)
Interest income				8,753			52,341			14,363			141,522
Interest expenses and finance costs		9		(829,727	)		(859,163	)		(1,720,641	)		(1,744,288	)
Income (loss) from equity-accounted investment		7		600,913			2,704,373			(102,692	)		2,363,776
Gain on loan extinguishment		10		278,617			-			278,617			-
Other income				2,902			9,925			14,088			17,218
Gain on disposition of assets				-			1,800			-			1,800
OTHER INCOME (EXPENSES)				61,458			1,909,276			(1,516,265	)		780,028
LOSS BEFORE INCOME TAXES				(3,462,100	)		(1,890,593	)		(8,426,453	)		(6,934,848	)

DEFERRED TAX BENEFITS				1,041			1,932			1,857			3,610
NET LOSS FOR THE PERIOD				(3,461,059	)		(1,888,661	)		(8,424,596	)		(6,931,238	)

OTHER COMPREHENSIVE INCOME (LOSS),
NET OF INCOME TAXES		7		486,038			(39,648	)		548,799			(49,542	)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD			$	(2,975,021	)	$	(1,928,309	)	$	(7,875,797	)	$	(6,980,780	)

NET LOSS PER SHARE, BASIC AND DILUTED		14	$	(0.02	)	$	(0.01	)	$	(0.04	)	$	(0.04	)

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, BASIC AND DILUTED				198,673,515			182,802,747			194,314,507			182,021,725

The accompanying notes are an integral part of these condensed consolidated financial statements.

URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – Expressed in U.S. Dollars)

			Six Months Ended January 31,
	Note(s)		2021			2020
NET CASH PROVIDED BY (USED IN):

OPERATING ACTIVITIES
Net loss for the period			$	(8,424,596	)	$	(6,931,238	)
Adjustments to reconcile net loss to cash flows in operating activities
Stock-based compensation		13		2,596,573			1,715,636
Depreciation, amortization and accretion		4,5,11		196,778			158,138
Amortization of long-term debt discount		9		825,695			844,801
Gain on disposition of assets				-			(1,800	)
Gain on loan extinguishment		10		(278,617	)		-
Loss (income) from equity-accounted investment		7		102,692			(2,363,776	)
Deferred tax benefits				(1,857	)		(3,610	)
Foreign exchange loss				1,457			-
Changes in operating assets and liabilities
Prepaid expenses and deposits				(355,290	)		137,189
Other current assets				5,992			140,605
Accounts payable and accrued liabilities				(271,764	)		(1,134,749	)
Due to a related party		8		(14,814	)		(36,374	)
Other liabilities				14,579			(70,616	)
NET CASH USED IN OPERATING ACTIVITIES				(5,603,172	)		(7,545,794	)

FINANCING ACTIVITIES
Proceeds from share issuance, net of issuance costs		13		15,419,317			-
Repayment of promissory note		10		(30,231	)		-
Repayment of long-term debt		9		(2,000,000	)		-
NET CASH PROVIDED BY FINANCING ACTIVITIES				13,389,086			-

INVESTING ACTIVITIES
Investment in mineral rights and properties				(80,000	)		(30,000	)
Purchase of property, plant and equipment		5		(140,340	)		(30,194	)
Investment in term deposits				(10,000,000	)		-
Proceeds from redemption of term deposits				6,000,000			11,831,671
Proceeds from disposition of assets				-			1,800
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES				(4,220,340	)		11,773,277

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH				3,565,574			4,227,483
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD				6,986,919			7,879,578
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD		6	$	10,552,493		$	12,107,061

The accompanying notes are an integral part of these condensed consolidated financial statements.

URANIUM ENERGY CORP.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited – Expressed in U.S. Dollars)

Common Stock

Additional Paid-

Share Issuance

Accumulated

Accumulated Other Comprehensive

Stockholders'

Shares

Amount

in Capital

Obligation

Deficit

Income (Loss)

SEC Form 10-Q filed by Uranium Energy Corp.