−Removed: In addition to the information contained in our Annual Report on Form 10-K for F iscal 20 20 , and this Quarterly Report on Form 10-Q, we have identified the following material risks and uncertainties which reflect our outlook and conditions known to us as of the date of this Quarterly Report.
+Added: In addition to the information contained in our Annual Report on Form 10-K for Fiscal 2020, and this Quarterly Report on Form 10-Q, we have identified the following material risks and uncertainties which reflect our outlook and conditions known to us as of the date of this Quarterly Report.
These material risks and uncertainties should be carefully reviewed by our stockholders and any potential investors in evaluating the Company, our business and the market value of our common stock.
Furthermore, any one of these material risks and uncertainties has the potential to cause actual results, performance, achievements or events to be materially different from any future results, performance, achievements or events implied, suggested or expressed by any forward-looking statements made by us or by persons acting on our behalf.
−Removed: Refer to “ Cautionary Note Regarding Forward- l ooking Statements” as disclosed in our Annual Report on Form 10-K for F iscal 20 20 .
+Added: Refer to “ Cautionary Note Regarding Forward-looking Statements ” as disclosed in our Annual Report on Form 10-K for Fiscal 2020.
There is no assurance that we will be successful in preventing the material adverse effects that any one or more of the following material risks and uncertainties may cause on our business, prospects, financial condition and operating results, which may result in a significant decrease in the market price of our common stock.
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Since we completed the acquisition of our Alto Paraná Project located in the Republic of Paraguay in July 2017, we are also involved in mining and related activities, including exploration, pre-extraction, extraction and processing, of titanium minerals.
−Removed: As more fully described under “Liquidity and Capital Resources” of Item 2, Management’s Discussion and Analysis of Financial Condition and Result of Operations, we have a history of significant negative cash flow and net losses, with an accumulated deficit balance of $281.7 million at October 31, 2020.
+Added: As more fully described under “Liquidity and Capital Resources” of Item 2, Management’s Discussion and Analysis of Financial Condition and Result of Operations herein, we have a history of significant negative cash flow and net losses, with an accumulated deficit balance of $285.2 million at January 31, 2021.
Historically, we have been reliant primarily on equity financings from the sale of our common stock and on debt financing in order to fund our operations.
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As a result of our limited financial and operating history, including our significant negative cash flow and net losses to date, it may be difficult to evaluate our future performance.
−Removed: At October 31, 2020, we had a working capital of $14.3 million including cash and cash equivalents of $6.7 million and term deposits of $10.0 million.
−Removed: Our existing cash resources are expected to provide sufficient funds to carry out our planned operations for 12 months from the date of this Quarterly Report.
+Added: At January 31, 2021, we had cash and cash equivalents of $8.7 million and term deposits of $4.0 million.
+Added: Subsequent to January 31, 2021, we received net proceeds of $28.2 million under the ATM Offering.
+Added: Our existing cash resources are expected to provide sufficient funds to repay our long-term debt of $18.0 million under our Credit Facility when it comes due and carry out our planned operations for 12 months from the date of this Quarterly Report.
Our continuation as a going concern beyond those 12 months will be dependent upon our ability to obtain adequate additional financing as our operations are capital intensive and future capital expenditures are expected to be substantial.
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Furthermore, restrictive covenants governing our indebtedness may restrict our ability to pursue our business strategies.
−Removed: During Fiscal 2019, we entered into the Third Amended and Restated Credit Agreement with our Lenders under which we had previously drawn down the maximum $20 million in principal.
+Added: During Fiscal 2019, we entered into the Third Amended and Restated Credit Agreement under our Credit Facility with our Lenders under which we had previously drawn down the maximum $20 million in principal.
+Added: During the three months ended January 31, 2021, we made a voluntary payment of $2 million to one of our Lenders, reducing the principal outstanding to $18 million at January 31, 2021.
The Credit Facility requires monthly interest payments calculated at 8% per annum and other periodic fees.
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We have a limited history of uranium extraction and generating revenue.
−Removed: In November 2010 we commenced uranium extraction at our Palangana Mine, which has been our sole source of revenues from the sales of U3O8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012, with no revenues from sales of U3O8 generated during the three months ended October 31, 2020, and any other fiscal years.
−Removed: During the three months ended October 31, 2020, we continued to operate our Palangana Mine at a reduced pace since implementing our strategic plan in September 2013 to align our operations to a weak uranium commodity market in a challenging post-Fukushima environment.
+Added: In November 2010 we commenced uranium extraction at our Palangana Mine, which has been our sole source of revenues from the sales of U 3 O 8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012, with no revenues from sales of U 3 O 8 generated during the three months ended January 31, 2021, and any other fiscal years.
+Added: During the six months ended January 31, 2021, we continued to operate our Palangana Mine at a reduced pace since implementing our strategic plan in September 2013 to align our operations to a weak uranium commodity market in a challenging post-Fukushima environment.
This strategy has included the deferral of major pre-extraction expenditures and remaining in a state of operational readiness in anticipation of a recovery in uranium prices.
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Any one or more of these occurrences may adversely affect our financial condition and operating results.
−Removed: E xploration and pre-extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, and actual results may differ significantly from expectations or anticipated amounts.
+Added: Exploration and pre-extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, and actual results may differ significantly from expectations or anticipated amounts.
Furthermore, exploration programs conducted on our projects may not result in the establishment of ore bodies that contain commercially recoverable uranium.
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Estimated costs of future reclamation obligations may be significantly exceeded by actual costs incurred in the future.
−Removed: Furthermore, only a portion of the financial assurance required for the future reclamation obligations ha s been funded.
−Removed: We are responsible for certain remediation and decommissioning activities in the future primarily for our Hobson Processing Facility, our Palangana Mine, our Reno Creek Project and our Alto Paraná Project and have recorded a liability of $3.8 million on our balance sheet at October 31, 2020 to recognize the present value of the estimated costs of such reclamation obligations.
+Added: Furthermore, only a portion of the financial assurance required for the future reclamation obligations has been funded.
+Added: We are responsible for certain remediation and decommissioning activities in the future primarily for our Hobson Processing Facility, our Palangana Mine, our Reno Creek Project and our Alto Paraná Project and have recorded a liability of $3.8 million on our balance sheet at January 31, 2021 to recognize the present value of the estimated costs of such reclamation obligations.
Should the actual costs to fulfill these future reclamation obligations materially exceed these estimated costs, it may have an adverse effect on our financial condition and operating results, including not having the financial resources required to fulfill such obligations when required to do so.
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There can be no assurance that we would be successful in overcoming these risks or any other problems encountered in connection with such acquisitions.
−Removed: The uranium and titanium industr ies are subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations.
+Added: The uranium and titanium industries are subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations.
If any changes occur that would make these laws, regulations and standards more stringent, it may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.
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The cyclicality and volatility of the titanium industry results in significant fluctuations in profits and cash flow from period to period and over the business cycle.
−Removed: The uranium industr y is highly competitive and we may not be successful in acquiring additional projects.
+Added: The uranium industry is highly competitive and we may not be successful in acquiring additional projects.
The uranium industry is highly competitive, and our competition includes larger, more established companies with longer operating histories that not only explore for and produce uranium, but also market uranium and other products on a regional, national or worldwide basis.
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These indemnification provisions may require us to use our limited assets to defend our directors and officers against claims, and may have the effect of preventing stockholders from recovering damages against our directors and officers caused by their negligence, poor judgment or other circumstances.
−Removed: Several of our directors and officers are residents outside of the U nited S tates , and it may be difficult for stockholders to enforce within the U nited S tates any judgments obtained against such directors or officers.
+Added: Several of our directors and officers are residents outside of the United States, and it may be difficult for stockholders to enforce within the United States any judgments obtained against such directors or officers.
Several of our directors and officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons’ assets are located outside of the United States.
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Additional issuances of our common stock may result in significant dilution to our existing shareholders and reduce the market value of their investment.
−Removed: We are authorized to issue 750,000,000 shares of common stock of which 197,376,792 shares were issued and outstanding as of October 31, 2020.
+Added: We are authorized to issue 750,000,000 shares of common stock of which 200,142,556 shares were issued and outstanding as of January 31, 2021.
Future issuances for financings, mergers and acquisitions, exercise of stock options and share purchase warrants and for other reasons may result in significant dilution to and be issued at prices substantially below the price paid for our shares held by our existing stockholders.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.