What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2022-09-29 compared with 2021-10-28 · 310 added, 193 removed, 194 unchanged (72% of the section changed)

Market for Registrant ’ s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Shares of our common stock commenced trading on the OTC Bulletin Board under the symbol “URME” on December 5, 2005.

On September 28, 2007, shares of our common stock commenced trading on the NYSE American (formerly known as the American Stock Exchange, the NYSE Amex Equities Exchange and the NYSE MKT) under the symbol “UEC”.

Market for Registrant ’

s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Shares of our common stock commenced trading on the OTC Bulletin Board under the symbol “URME”

on December 5, 2005.

The market for our common stock is limited and can be volatile.

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Quarter Ended

The last reported closing price for our shares on the NYSE American on October 26, 2021 was $4.02 per share.

As of October 26, 2021, we had 229 registered shareholders.

The last reported closing price for our shares on the NYSE American on September 27, 2022 was $3.43 per share.

As of September 27, 2022, we had 238 registered shareholders.

Dividend Policy

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Securities Authorized For Issuance Under Compensation Plans

At July 31, 2021, we had one equity compensation plan, our 2021 Stock Incentive Plan (the “2021 Plan”).

Our 2021 Plan was ratified by our shareholders on July 30, 2021 and thereby superseded and replaced our then 2020 Stock Incentive Plan (the “2020 Plan”);

At July 31, 2022, we had one equity compensation plan, our 2022 Stock Incentive Plan (the “2022 Plan”).

Our 2022 Plan was ratified by our shareholders on July 21, 2022 and thereby superseded and replaced our then 2021 Stock Incentive Plan (the “2021 Plan”);

having been ratified by our shareholders on July 30, 2021;

with all stock-based compensation awards granted in accordance with our 2020 Plan and each of our preceding stock incentive plans being continued under our 2021 Plan (and the 2021 Plan, the 2020 Plan and all preceding stock incentive plans being, collectively, our “Stock Incentive Plan” herein).

with all stock-based compensation awards granted in accordance with our 2021 Plan and each of our preceding stock incentive plans being continued under our 2022 Plan (and the 2022 Plan, the 2021 Plan and all preceding stock incentive plans being, collectively, our “Stock Incentive Plan”

The table below sets forth information relating to our equity compensation plan at our fiscal year end July 31, 2022:

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and Rights (1)

Weighted Average

Exercise Price

Average Exercise

of Outstanding

Options, Warrants

and Rights (2)

Available for

Future Issuance

Plans (excluding

Equity Compensation Plans Approved by Security Holders (the 2021 Plan) (3)

Remaining Available

for Future Issuance

Compensation Plans

(excluding column

Equity Compensation Plans Approved by Security Holders (the 2022 Plan)  (3)

Equity Compensation Plans Not Approved by Security Holders

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(i) 8,880,527 outstanding stock options having a weighted average exercise price of $1.58 and a weighted average remaining term of 6.98 years;

(ii) 997,612 shares of our common stock underlying restricted stock units (the “RSU”s);

and (iii) 1,250,451 shares of our common stock underlying performance based restricted stock units (the “PRSU”s).

(ii) 836,034 shares of our common stock underlying restricted stock units (the “RSUs”);

and (iii) 734,582 shares of our common stock underlying performance based restricted stock units (the “PRSUs”).

Shares of our common stock underlying PRSUs are included assuming maximum payout, but may be paid out at lesser amounts, or not at all, depending on the achievement of performance criteria.

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2022 Stock Incentive Plan

On June 3, 2021, our Board of Directors authorized and approved the adoption of the Company’s 2021 Plan, under which an aggregate of 26,017,523 of our shares may be issued, subject to adjustment as described in the 2021 Plan, and which, at that time, consisted of:

On June 2, 2022, our Board of Directors authorized and approved the adoption of the Company’s 2022 Plan, under which an aggregate of 25,576,693 of our shares may be issued, subject to adjustment as described in the 2022 Plan, and which, at that time, consisted of:

(i) 10,462,238 shares issuable pursuant to awards previously granted that were outstanding under our 2021 Plan;

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The purpose of our Stock Incentive Plan is to enhance our long-term stockholder value by offering opportunities to our directors, officers, employees and eligible consultants to acquire and maintain stock ownership in order to give these persons the opportunity to participate in our growth and success, and to encourage them to remain in our service.

Our Stock Incentive Plan is administered by our Compensation Committee (therein our “Administrator”) which shall determine, among other things:

(i) the persons to be granted awards under the Stock Incentive Plan (each an “Award” to an “Eligible Participant”);

Our Stock Incentive Plan is administered by our Compensation Committee (therein our “Administrator”) which shall determine, among other things:

(i) the persons to be granted awards under the Stock Incentive Plan (each an “Award”

to an “Eligible Participant”);

(ii) the number of shares or amount of other Awards to be granted;

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We may issue shares, options, stock appreciation rights, restricted stock units, performance restricted stock units, deferred stock units and dividend equivalent rights, among others, under our Stock Incentive Plan.

An Award may not be exercised after the termination date of the Award and may be exercised following the termination of an Eligible Participant’s continuous service only to the extent provided by the Administrator under the Stock Incentive Plan.

If the Administrator of our Stock Incentive Plan permits an Eligible Participant to exercise an Award following the termination of continuous service for a specified period, the Award terminates to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first.

In the event an Eligible Participant’s service has been terminated for “cause”, he or she shall immediately forfeit all rights to any of the Awards outstanding.

The foregoing summary of our Stock Incentive Plan is not complete and is qualified in its entirety by reference to the Stock Incentive Plan, a copy of which has been filed electronically with the SEC, which is available under the Company’s filings at www.sec.gov.

As of October 26, 2021, there were stock options outstanding under our Stock Incentive Plan exercisable for an aggregate of 9,323,790 shares of our common stock.

In the event an Eligible Participant’s service has been terminated for “cause”, he or she shall immediately forfeit all rights to any of the Awards outstanding.

As of September 27, 2022, there were stock options outstanding under our Stock Incentive Plan exercisable for an aggregate of 10,193,005 shares of our common stock.

Common Stock Purchase Warrants

As of October 26, 2021, there were common stock purchase warrants issued and outstanding exercisable for an aggregate of 4,905,474 shares of our common stock.

As of September 27, 2022, there were common stock purchase warrants issued and outstanding exercisable for an aggregate of 4,816,886 shares of our common stock.

Recent Issuances of Unregistered Securities

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During our fourth quarter ended July 31, 2022, we issued the following securities that were not registered under the Securities Act:

on May 3, 2021, we issued an aggregate of 13,333 shares of common stock to a consultant in consideration for services under a consulting agreement at a deemed issuance price of $2.04 per share.

We relied on exemptions from registration under the Securities Act provided by Regulation S with respect to the issuance of these shares;

on July 12, 2021, we issued an aggregate of 7,964 shares of common stock to a consultant in consideration for services under a consulting agreement at a deemed issuance price of $2.26 per share.

We relied on exemptions from registration under the Securities Act provided by Regulation S with respect to the issuance of these shares.

on July 12, 2022, we issued an aggregate of 41,350 shares of common stock to a consultant in consideration for services under a consulting agreement at a deemed issuance price of $3.26 per share.  We relied on exemptions from registration under the Securities Act provided by Rule 506 of Regulation D and/or Section 4(a)(2) with respect to the issuance of these shares;

on July 22, 2022, we issued an aggregate of 2,854 shares of common stock to a consultant in consideration for services under a consulting agreement at a deemed issuance price of $4.73 per share.  We relied on exemptions from registration under the Securities Act provided by Regulation S and/or Section 4(a)(2) with respect to the issuance of these shares.

Comparative Stock Performance

The graph below compares the cumulative total stockholder return on our common stock assuming an investment of $100 and the reinvestment of all dividends, if any, for the years ended July 31, 2018, through to July 31, 2022, with:

(i) the cumulative total return on the shares of common stock of a current peer group index comprised of Centrus Energy Corp., Comstock Resources, Inc., Contango Oil & Gas Company, Denison Mines Corp., Energy Fuels Inc., Fission Uranium Corp., IsoEnergy Ltd., NACCO Industries, Inc., NexGen Energy Ltd., Polymet Mining Corp., Silvercorp Metals Inc., UEX Corporation and UR-Energy Inc.

(collectively, the “Peer Group”);

(ii) the cumulative total return on the shares of common stock of a previous peer group index comprised of Denison Mines Corp., UR-Energy Inc., Adams Resources & Energy, Inc., Hallador Energy Company, Abraxas Petroleum Corporation, Fission Uranium Corp., Evolution Petroleum Corporation, NexGen Energy Ltd., Polymet Mining Corp., Comstock Resources, Inc., Silvercorp Metals Inc., Energy Fuels Inc., Laramide Resources Ltd.

and UEX Corporation (collectively, the “Previous Peer Group”);

(i) the cumulative total return on the shares of common stock of a current peer group index comprised of Centrus Energy Corp., Comstock Resources, Inc., Denison Mines Corp., Energy Fuels Inc., Fission Uranium Corp., Global Atomic Corporation, Gulfport Energy Corporation, IsoEnergy Ltd., NACCO Industries, Inc., NexGen Energy Ltd., Northern Oil and Gas, Inc., Polymet Mining Corp.

and UR-Energy Inc.

(collectively, the “Peer Group”);

(ii) the cumulative total return on the shares of common stock of a previous peer group index comprised of Centrus Energy Corp., Comstock Resources, Inc., Contango Oil & Gas Company, Denison Mines Corp., Energy Fuels Inc., Fission Uranium Corp., IsoEnergy Ltd., NACCO Industries, Inc., NexGen Energy Ltd., Polymet Mining Corp., Silvercorp Metals Inc., UEX Corporation and UR-Energy Inc.

(collectively, the “Previous Peer Group”);

and (iii) the cumulative return on the Russell 3000 Index.

The change in peer group was made to address changes in the external market and to better reflect our Company’s business.

Selected Financial Data

Not Applicable

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

The following management ’ s discussion and analysis of the Company ’ s financial condition and results of operations contain forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations.

(Expressed in thousands of U.S.

dollars, except per share amounts)

The following tables provide selected financial data for each of the past five fiscal years, and should be read in conjunction with, and are qualified in their entirety by reference to, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and related notes for the fiscal year ended July 31, 2022, as presented under Item 8.

Financial Statements and Supplementary Data.

These historical results are not necessarily indicative of the results to be expected for any future period.

Consolidated Balance Sheets

July 31, 2022

July 31, 2021

July 31, 2020

July 31, 2019

July 31, 2018

Cash and cash equivalents

Term deposits

Working capital (deficit)

Long-term obligations

Total liabilities

Stockholders' equity

Consolidated Statements of Operations

Year Ended July 31,

Sales and service revenue

Operating costs

Net income (loss) for the year

Basic income (loss) per share

Diluted income (loss) per share

Management ’

s Discussion and Analysis of Financial Condition and Results of Operations

(Expressed in thousands of U.S.

dollars, except per share amounts)

The following management ’

s discussion and analysis of the Company ’

s financial condition and results of operations contain forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations.

In evaluating these statements, you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Form 10-K filing for the fiscal year ended July 31, 2022, including the consolidated financial statements and related notes contained herein.

These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking statement made in this document.

Refer to “ Cautionary Note Regarding Forward-looking Statements ” and Item 1A.

Refer to “

Cautionary Note Regarding Forward-looking Statements ”

Risk Factors herein.

The following discussion summarizes the results of operations for each of our fiscal years ended July 31, 2022, 2021 and 2020 and our financial condition as at July 31, 2022 and 2021, with a particular emphasis on Fiscal 2022, our most recently completed fiscal year.

We operate in a single reportable segment and, since 2004, as more fully described under “General Business” of Item 1.

We operate in a single reportable segment and, since 2004, as more fully described under “General Business”

Business herein, we have been primarily engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States, Canada and the Republic of Paraguay.

We utilize ISR mining for our uranium projects where possible which we believe, when compared to conventional open pit or underground mining, requires lower capital and operating expenditures with a shorter lead time to extraction and a reduced impact on the environment.

We have one uranium mine located in the State of Texas, our Palangana Mine, which utilizes ISR mining and commenced extraction of U 3 O 8 , or yellowcake, in November 2010.

We have one uranium processing facility located in the State of Texas, our Hobson Processing Facility, which processes material from the Palangana Mine into drums of U 3 O 8 , our only sales product and source of revenue, for shipping to a third-party storage and sales facility.

We have two ISR Mines which utilize ISR mining to extract U 3 O 8 , or yellowcake.

We have two uranium processing facilities located in vicinity of our IRS Mines, which process material from our ISR Mines into drums of U 3 O 8 for shipping to a third-party storage and sales facility.

At July 31, 2022, we had no uranium supply or off-take agreements in place.

Our fully-licensed and 100% owned Hobson Processing Facility forms the basis for our regional operating strategy in the State of Texas, specifically the South Texas Uranium Belt where we utilize ISR mining.

We utilize a “hub-and-spoke” strategy whereby the Hobson Processing Facility, which has a physical capacity to process uranium-loaded resins up to a total of two million pounds of U 3 O 8 annually and is licensed to process up to one million pounds of U 3 O 8 annually, acts as the central processing site (the “hub”) for our Palangana Mine, and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the “spokes”).

We also hold certain mineral rights in various stages in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, and in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies.

In Texas our fully-licensed and 100% owned Hobson Processing Facility forms the basis for our regional operating strategy in the State of Texas, specifically the South Texas Uranium Belt where we utilize ISR mining.

We utilize a “hub-and-spoke”

strategy whereby the Hobson Processing Facility, which has a physical capacity to process uranium-loaded resins up to a total of two million pounds of U 3 O 8 annually and is licensed to process up to one million pounds of U 3 O 8 annually, acts as the central processing site (the “hub”) for our Palangana Mine, and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the “spokes”).

We acquired the fully permitted Reno Creek Project in August 2017 and expanded our operations to the strategic Powder River Basin in Wyoming.

On December 17, 2021, we completed the acquisition of all the issued and outstanding shares of U1A (now UEC Wyoming Corp.;

“UEC Wyoming”) for total cash consideration of $128,495.

The UEC Wyoming portfolio primarily consists of 12 projects located in Wyoming, six of which are located in the Powder River Basin with four fully permitted, and six of which are located in the Great Divide Basin (the “UEC Wyoming Portfolio”).

The UEC Wyoming Portfolio also consists of dozens of under-explored, mineralized brownfield projects, backed by detailed databases of historic uranium exploration and development programs, thus greatly enhancing the potential for resource expansion.

The U1A Acquisition creates a Wyoming hub-and-spoke operation for UEC, anchored by UEC Wyoming’s Irigaray Processing Facility with a licensed capacity of 2.5 million pounds U 3 O 8 per year.

Refer to Note 3:

Acquisition of Uranium One Americas, Inc.

of the Consolidated Financial Statements for Fiscal 2022.

On June 7, 2022, UEC completed a property swap agreement (the “Property Swap”) with Anfield Energy Inc.

(“Anfield”), whereby the Company received Anfield’s portfolio of 25 ISR uranium projects in Wyoming (the “Anfield ISR Projects”) in exchange for UEC’s Slick Rock and Long Park projects located in Colorado.

The Anfield ISR Projects increase UEC’s Wyoming land holdings by 50%, adding 55,119 acres of federal mining claims and state mineral leases. 

The Anfield ISR Projects are comprised of the Charlie Project, located immediately adjacent to UEC’s Christensen Ranch property, along with nine projects in the Powder River Basin, seven projects in the Great Divide Basin, four projects in the Wind River Basin, three projects in the Shirley Basin and one project in Black Hills.

Subsequent to July 31, 2022, we completed the acquisition of UEX Corporation (“UEX”) through a plan of arrangement (the “UEX Acquisition”). 

UEX is a Canadian uranium and cobalt exploration and development company involved with an exceptional portfolio of uranium projects.

UEX’s directly-owned portfolio of projects is located in the eastern, western and northern perimeters of the Athabasca Basin, one of the world’s richest uranium region.

In addition to advancing its uranium development projects through its ownership interest in a joint venture entity, UEX is currently advancing several other uranium deposits in the Athabasca Basin which include the Paul Bay, Ken Pen and Ōrora deposits at the Christie Lake Project, the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, the Horseshoe and Raven deposits located on its 100%-owned Horseshoe-Raven Project and the West Bear Uranium Deposit located at its 100%-owned West Bear Project.

We also hold certain mineral rights in various stages in the States of Arizona, New Mexico, Texas and Wyoming, and in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies.

We do not expect, however, to utilize ISR mining for all of our mineral rights in which case we would expect to rely on conventional open pit and/or underground mining techniques.

Our operating and strategic framework is based on expanding our uranium extraction activities, which includes advancing certain uranium projects with established mineralized materials towards uranium extraction and establishing additional mineralized materials on our existing uranium projects or through acquisition of additional uranium projects.

Since commencing uranium extraction at the Palangana Mine in November 2010, we have been focused primarily on expanding our South Texas uranium mining activities and establishing additional uranium mines through exploration and pre-extraction activities and direct acquisitions in both the U.S.

Since commencing uranium extraction at our Palangana Mine in November 2010, we have been focused primarily on expanding our South Texas uranium mining activities.

Since the completion of the U1A Acquisition in December 2021, we further expanded our footprints in Wyoming with our Wyoming hub-and-spoke operations.

In the meantime, we continue to establish additional uranium mines through exploration and pre-extraction activities and direct acquisitions in both the U.S.

and Paraguay, all of which require us to manage numerous challenges, risks and uncertainties inherent in our business and operations as more fully described in Item 1A.

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We have also relied on cash flows generated from our mining activities during Fiscal 2015, Fiscal 2013 and Fiscal 2012.

In the future we may also rely on cash flows generated from the sales of our uranium inventories under our Physical Uranium Portfolio to fund our operations.

In the future we may also rely on cash flows generated from the sales of our uranium inventories under our Physical Uranium Program to fund our operations.

However, we have yet to achieve profitability or develop positive cash flow from operations.

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Our inability to obtain additional financing would have a negative impact on our operations, including delays, curtailment or abandonment of any one or all of our uranium projects.

We have not established proven or probable reserves through the completion of a “final” or “bankable” feasibility study for any of our mineral projects.

We have established the existence of mineralized materials for certain uranium projects, including our Palangana Mine.

Since we commenced uranium extraction at the Palangana Mine without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

The Palangana Mine has been our sole source to generate sales revenues from the sales of U 3 O 8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012, with no sales revenues generated during other years.

The economic viability of our mining activities, including the expected duration and profitability of our Palangana Mine and of any future satellite ISR mines, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt, has many risks and uncertainties.

We have not established proven or probable reserves through the completion of a “final”

or “bankable”

feasibility study for any of our mineral projects.

We have established the existence of mineralized materials for certain uranium projects, including our ISR Mines.

Since we commenced uranium extraction at our ISR Mines without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

The Palangana Mine has been our sole source to generate sales revenues from the sales of U 3 O 8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012.

The economic viability of our mining activities, including the expected duration and profitability of our ISR Mines and of any future satellite ISR mines, such as our Burke Hollow and Goliad Projects and recently acquired Ludeman, Antelope and Charlie Projects, has many risks and uncertainties.

These include, but are not limited to:

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Response to COVID-19 Pandemic

In response to the COVID-19 pandemic for the protection of our employees, we have arranged for our teams at our Vancouver, Corpus Christi and Paraguay offices to work remotely and implemented certain health protocols for our employees and contractors who work at the field.

In the meantime, we continue to operate our Palangana Mine at a reduced pace to capture residual uranium only and continue to advance our ISR projects with engineering and geologic evaluations that support the Company’s extraction readiness strategy.

In response to the COVID-19 pandemic for the protection of our employees, we have arranged, where and when needed from time to time, for our teams at our Vancouver, Corpus Christi and Paraguay offices to work remotely and we have implemented certain health protocols for our employees and contractors who work at the field.

In the meantime, we continue to operate our Palangana Mine and recently acquired Christensen Mine at a reduced pace to capture residual uranium only and continue to advance our ISR projects with engineering and geologic evaluations that support the Company’s extraction readiness strategy.

As at July 31, 2022, we had no uranium supply or off-take agreements in place.

Future sales of U 3 O 8 are therefore expected to generally occur through the uranium spot market, with any fluctuations in the market price continuing to have a direct impact on our revenues and cash flows.

The table below provides the high/low/average/close for the uranium spot price for each of our last five fiscal years as obtained from UxC Broker Average Price:

The table below provides the high/low/average/close for the uranium spot price for each of our last five fiscal years as obtained from UxC:

Fiscal Year Ended

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Results of Operations

For Fiscal 2021 and Fiscal 2020, we recorded a net loss of $14,813,810 ($0.07 per share) and $14,610,516 ($0.08 per share), respectively.

Loss from operations during Fiscal 2021 and Fiscal 2020 totaled $17,511,978 and $14,334,523, respectively.

No revenue from sales of produced U 3 O 8 was generated during Fiscal 2021 and Fiscal 2020.

During Fiscal 2021, we continued with our strategic plan for reduced operations at our Palangana Mine to capture residual pounds of U 3 O 8 only.

While we remain in a state of operational readiness, uranium extraction expenditures incurred for PAA-1, 2 and 3 at the Palangana Mine, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintaining a minimum labor force, are being charged to our consolidated statement of operations.

As a result, no uranium concentrate was extracted at the Palangana Mine and processed at the Hobson Processing Facility during Fiscal 2021 and Fiscal 2020.

We established the Physical Uranium Portfolio and have entered into agreements to purchase 4.1 million pounds of uranium concentrates as of the date of this Annual Report.

Various deliveries have or are scheduled to occur in March 2021 into December 2025 at a weighted average price of $32.12 per pound of uranium.

During Fiscal 2021, as part of our Physical Uranium Portfolio, we received 1,000,000 pounds of uranium concentrates with a total cost of $28,960,818.

During Fiscal 2022, we recorded sales and service revenue of $23,161 and realized gross profit of $7,293.

No sales and service revenues were recorded during Fiscal 2021 and Fiscal 2020.

For Fiscal 2022, we recorded net income of $5,252 ($0.02 per share), while for Fiscal 2021 and Fiscal 2020, we recorded a net loss of $14,813 ($0.07 per share) and $14,610 ($0.08 per share), respectively.

Loss from operations during Fiscal 2022, Fiscal 2021 and Fiscal 2020 totaled $22,710, $17,512 and $14,334, respectively. 

During Fiscal 2022, we continued with our strategic plan for reduced operations at our Palangana Mine and, since the closing of the U1A Acquisition, we continued reduced operations at the Christensen Ranch Mine, to capture residual pounds of U 3 O 8 only. 

While we remain in a state of operational readiness, uranium extraction expenditures incurred at the Palangana Mine and the Christensen Ranch Mine, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintaining a necessary labor force, are being charged to our consolidated statement of operations.

As a result, no uranium concentrate was extracted at our ISR Mines and processed at the Hobson and the Irigaray Processing Facilities, respectively, during Fiscal 2022 and Fiscal 2021.

We established our Physical Uranium Program in Fiscal 2021. 

As of the date of this Annual Report, we have 3.1 million pounds of uranium inventory purchase commitments outstanding for a total purchase price of $118.8 million.

Various deliveries are scheduled to occur in December 2022 into December 2025 at a weighted average price of $38.32 per pound of uranium.

During Fiscal 2022, as part of our Physical Uranium Program, we received 1,300,000 pounds of uranium concentrates with a total cost of $52,858.

As of July 31, 2022, the carrying value of our inventories was $66,570 (July 31, 2021:

Costs and Expenses

During Fiscal 2021 and Fiscal 2020, costs and expenses totaled $17,511,978 and $14,334,523, respectively, primarily comprised of mineral property expenditures of $4,478,807 and $4,582,403, respectively, general and administrative expenses of $12,639,998 and $9,441,898, respectively, and depreciation, amortization and accretion of $393,173 and $310,222, respectively.

Sales and Service Revenue

During Fiscal 2022, we recorded sales of $22,946 from the sale of 500,000 pounds of uranium concentrate inventory.

In addition, we recorded revenue from toll processing services of $215, which was generated from processing uranium resins according to a toll processing agreement resulting from the U1A Acquisition.

As a result, we realized gross profit of $7,293, representing a gross profit margin of 31.5%.

No sales and service revenues were recorded during Fiscal 2021 and Fiscal 2020.

The table below provides a breakdown of sales and service revenue and cost of sales and services:

Year Ended July 31,

Sales of purchased uranium inventory

Revenue from toll processing services

Total sales and service revenue

Cost of purchased uranium inventory

Cost of toll processing services

Total cost of sales and services

Operating Costs

Mineral Property Expenditures

During Fiscal 2021, mineral property expenditures consisted of expenditures relating to permitting, property maintenance, exploration and pre-extraction activities and all other non-extraction related activities on our mineral projects.

The following table provides mineral property expenditures on a project basis during the past two fiscal years:

Mineral property expenditures consisted of expenditures relating to permitting, property maintenance, exploration and pre-extraction activities and all other non-extraction related activities on our mineral projects.

The following table provides mineral property expenditures on a project basis during the past three fiscal years:

Year Ended July 31,

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Palangana Mine

Goliad Project

Burke Hollow Project

Longhorn Project

Salvo Project

Goliad Project

Anderson Project

Workman Creek Project

Slick Rock Project

Reno Creek Project

Christensen Ranch Mine

Ludeman Project

Antelope Project

Moore Ranch Project

Barge Project

Oviedo Project

Alto Paraná Titanium Project

Alto Paraná

Titanium Project

Other Mineral Property Expenditures

During Fiscal 2021 and Fiscal 2020, mineral property expenditures included costs directly related to maintaining operational readiness and permit compliance at our Palangana Mine and Hobson Processing Facility totaled $924,050 and $1,130,028, respectively.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures included costs directly related to maintaining operational readiness and permit compliance at our Palangana Mine and Hobson Processing Facility, which totaled $1,105, $924 and $1,130, respectively.

Since the closing of the U1A Acquisition, costs directly related to maintaining operational readiness and permit compliance at our Christensen Ranch Mine and Irigaray Processing Facility totaled $1,161.

The following provides a discussion of significant mineral property expenditures on certain projects:

Palangana Mine

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Palangana Mine totaled $889,597 and $1,342,927, respectively, which were comprised of maintenance of operational readiness and permit compliance of $608,662 and $772,515, permitting and property maintenance of $269,612 and $553,531, and exploration and development costs of $11,323 and $16,881, respectively.

Goliad Project

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Goliad Project totaled $237,515 and $190,278, respectively, which were comprised of permitting and property maintenance costs of $165,715 and $117,204, and exploration and development costs of $71,800 and $73,074, respectively.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Palangana Mine totaled $1,060, $890 and $1,343, respectively, which were comprised of maintenance of operational readiness and permit compliance of $670, $609 and $772, permitting and property maintenance of $390, $270 and $554, and exploration and development costs of $Nil, $11 and $17, respectively.

Burke Hollow Project

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Burke Hollow Project totaled $1,445,797 and $1,130,467, respectively, which were comprised of permitting and property maintenance costs of $387,499 and 384,885, exploration drilling costs of $1,025,309 and $214,246, and wellfield development costs of $32,989 and $531,336, respectively.

During Fiscal 2021, we initiated a drilling campaign in March 2021 and drilled 81 exploration holes totaling 38,785 feet.

During Fiscal 2020, we completed a drilling campaign initiated in Fiscal 2019 and drilled 26 exploration holes and 21 monitor wells totaling 21,069 feet.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Burke Hollow Project totaled $3,647, $1,446 and $1,130, respectively, which were comprised of permitting and property maintenance costs of $524, $388 and $385, exploration drilling costs of $1,199, $1,025 and $214, and wellfield development costs of $1,924, $33 and $531, respectively.

During Fiscal 2022, we continued the drilling campaign initiated in Fiscal 2021 and drilled 91 holes and cased 40 wells totaling 63,682 feet.

During Fiscal 2021, we initiated a drilling campaign and drilled 81 exploration holes totaling 38,785 feet.

During Fiscal 2020, we drilled 26 exploration holes and 21 monitor wells totaling 21,069 feet.

Goliad Project

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Goliad Project totaled $240, $237 and $190, respectively, which were comprised of permitting and property maintenance costs of $160, $165 and $117, and exploration and development costs of $80, $72 and $73, respectively.

Reno Creek Project

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Reno Creek Project totaled $672,225 and $596,551, respectively, which were comprised of property maintenance costs of $521,039 and $484,228, and permitting and exploration costs of $151,186 and $112,323, respectively.

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Yuty Project totaled $31,279 and $65,679, respectively, primarily for general expenditures.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Reno Creek Project totaled $821, $672 and $597, respectively, which were comprised of property maintenance costs of $508, $521 and $484, and permitting and exploration costs of $313, $151 and $113, respectively.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Yuty Project totaled $86, $31 and $66, respectively, primarily for general expenditures.

Oviedo Project

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Oviedo Project totaled $371,966 and $350,211, respectively, which were comprised of property maintenance costs of $150,857 and $78,223, and exploration expenditures of $221,109 and $271,988, respectively, primarily for exploration drilling programs conducted.

Alto Paraná Titanium Project

During Fiscal 2021 and Fiscal 2020, mineral property expenditures at the Alto Paraná Titanium Project totaled $198,969 and $230,350, respectively, which were comprised of exploration costs of $179,179 and $230,350, and property maintenance costs of $19,790 and $Nil, respectively.

During Fiscal 2021, we continued to maintain our projects in good standing, and the costs incurred on other projects of our Company were mainly for property maintenance costs.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Oviedo Project totaled $619, $372 and $350, respectively, which were comprised of property maintenance costs of $257, $151 and $78, and exploration expenditures of $362, $221 and $272, respectively, primarily for an exploration drilling program conducted.

Alto Paraná Titanium Project

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, mineral property expenditures at our Alto Paraná

Titanium Project totaled $574, $199 and $230, respectively, which were comprised of exploration costs of $570, $179 and $230, and property maintenance costs of $4, $20 and $Nil, respectively. 

During Fiscal 2022, we completed an exploration drilling program and drilled 42 holes totaling 931 feet at the Alto Paraná

Titanium Project.

UEC Wyoming Portfolio

During Fiscal 2022, we completed the U1A Acquisition and acquired the UEC Wyoming Portfolio including the Irigaray Processing Facility, the Christensen Ranch Mine and the Ludeman, Antelope, Moore Ranch and Barge Projects.

During Fiscal 2022, the expenditures occurred at the UEC Wyoming Portfolio totaled $2,296, of which $1,257 was for maintenance of operational readiness, permitting and property maintenance at the Christensen Ranch Mine, with the balance of $1,039 mainly related to property maintenance expenditures for various projects of our UEC Wyoming Portfolio.

General and Administrative

During Fiscal 2021, general and administrative expenses totaled $12,639,998, which increased by $3,198,100 compared to $9,441,898 in Fiscal 2020.

During Fiscal 2022, general and administrative expenses totaled $15,026, which increased by $2,386 compared to $12,640 in Fiscal 2021, which increased by $3,198 compared to $9,442 in Fiscal 2020.

The following summary provides a discussion of the major expense categories, including analyses of factors that caused significant variances from year-to-year:

during Fiscal 2021, salaries, wages and management fees totaled $2,416,598, which increased by $705,651 compared to $1,710,947 during Fiscal 2020.

During Fiscal 2020, in response to the financial market uncertainty due to the COVID-19 pandemic, we implemented corporate-wide pay reductions, ceased cash bonuses and increased share compensation in lieu of cash for the Company’s employees, officers and directors.

During Fiscal 2021, in light of the recovery of the financial market and outperformance of the Company, the compensation of our directors, officers and employees was re-instated;

during Fiscal 2021, office, filing and listing fee, insurance, corporate development, investor relations and travel expenses totaled $3,860,192, which increased by $575,386, compared to $3,284,806 during Fiscal 2020, primarily due to a corporate-wide cost reduction implemented in Fiscal 2020 in response to the COVID-19 pandemic;

during Fiscal 2021, professional fees totaled $952,440, which was consistent with $952,927 during Fiscal 2020.

during Fiscal 2022, salaries, wages and management fees totaled $4,281, an increase of $1,864 compared to $2,417 during Fiscal 2021, which was primarily the result of the corporate-wide salary increases to adjust for inflation, payment of short-term incentive cash bonus for executive officers, as well as additional salary expenses related to the UEC Wyoming operations.

During Fiscal 2021, salaries, wages and management fees totaled $2,417, an increase of $706 compared to $1,711 during Fiscal 2020, which was primarily the result of the reinstatement of salaries and management fees.

During Fiscal 2020, in response to the financial market uncertainty due to the COVID-19 pandemic, we reduced cash outlays by implementing corporate-wide pay reductions, ceasing cash bonuses and utilizing share compensation in lieu of cash for the Company’s employees, consultants, officers and directors salaries and fees;

during Fiscal 2022, office, filing and listing fees, insurance, corporate development, investor relations and travel expenses totaled $4,501, an increase of $736 compared to $3,765 during Fiscal 2021, which was primarily the result of increases in expenses for office, administration and insurance, and expansion of our Wyoming’s operations.

During Fiscal 2021, office, filing and listing fees, insurance, corporate development, investor relations and travel expenses increased by $533 compared to $3,232 during Fiscal 2020, primarily due to corporate-wide cost reductions implemented in Fiscal 2020 in response to the COVID-19 pandemic;

during Fiscal 2022, professional fees totaled $1,387, an increase of $435 compared to $952 during Fiscal 2021, which was consistent with $953 during Fiscal 2020.

Professional fees are comprised primarily of legal services related to transactional activities, regulatory compliance and for audit, accounting and tax compliance services;

during Fiscal 2021, stock-based compensation expense totaled $5,410,768, which increased by $1,917,550 compared to $3,493,218 during Fiscal 2020.

during Fiscal 2022, we recorded a foreign exchange loss of $317, primarily resulting from foreign currency transactions, compared to $95 and $53 for Fiscal 2021 and Fiscal 2020, respectively;

during Fiscal 2022, stock-based compensation expense totaled $4,540, a decrease of $871 compared to $5,411 during Fiscal 2021, an increase of $1,918 compared to $3,493 during Fiscal 2020.

Stock-based compensation includes the fair value of stock options granted to optionees and the fair value of shares of the Company issued to directors, officers, employees and consultants of the Company under our Stock Incentive Plan.

In the past few years, we have been utilizing equity-based payments to our directors, officers, employees and consultants as part of our continuing efforts to reduce cash outlays.

The stock-based compensation varied from year to year primarily as a result of changes in the amount of compensation shares and stock award expenses which are amortized on an accelerating basis, resulting in more expenses being recorded at the beginning of the vesting period than at the end.

In recent years, we have utilized equity-based payments to our directors, officers, employees and consultants as part of our continuing efforts to reduce cash outlays.

The stock-based compensation varied from year to year primarily as a result of changes in the amount of compensation shares and stock award expenses which were amortized on an accelerating basis, resulting in more expenses being recorded at the beginning of the vesting period than at the end.

Acquisition-related Costs

During Fiscal 2022, we incurred acquisition-related costs of $3,444 in connection with the U1A Acquisition.

Depreciation, Amortization and Accretion

During Fiscal 2021, depreciation, amortization and accretion totaled $393,173, which was consistent compared to $310,222 during Fiscal 2020.

During Fiscal 2022, depreciation, amortization and accretion totaled $1,379, which increased by $986 compared to $393 during Fiscal 2021, primarily due to depreciation of our plant and equipment acquired from the U1A Acquisition.

During Fiscal 2021, depreciation, amortization and accretion totaled $393, which was consistent with $310 during Fiscal 2020.

Depreciation, amortization and accretion includes depreciation and amortization of long-term assets acquired in the normal course of operations and accretion of asset retirement obligations.

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Interest and Finance Costs

During Fiscal 2021, interest and finance costs totaled $2,879,809, which decreased by $581,161 compared to $3,460,970 during Fiscal 2020.

During Fiscal 2021, interest on long-term debt totaled $1,255,556, which decreased by $371,111 compared to $1,626,667 during Fiscal 2020, and amortization of debt discount totaled $1,375,754, which decreased by $293,760 compared to $1,669,514 during Fiscal 2020.

These decreases were offset by an increase of $83,710 in surety bond premium and other interest expenses from $164,789 in Fiscal 2020 to $248,499 in Fiscal 2021.

The decreases in interest on long-term debt and amortization of debt discount are a result of the decrease in the outstanding principal amount of our long-term debt to $10,000,000 in Fiscal 2021 from $20,000,000 in Fiscal 2020.

Income or Loss from Equity-Accounted Investment

During Fiscal 2021, we recorded income of $5,204,004 from our investment in Uranium Royalty Corp (“URC”), which included our share of URC’s income of $732,446 and a dilution gain of $4,471,558 as a result of URC issuing more shares from its equity financings, which decreased our ownership interest in URC to 18.

1% at July 31, 2021 from 19.5% at July 31, 2020.

During Fiscal 2020, we recorded income of $2,967,583 from our investment in URC.

As a consequence of URC’s initial public offering and other private placements URC completed during Fiscal 2020, our ownership interest in URC decreased to 19.5% at July 31, 2020 from 32.6% at July 31, 2019, which resulted in a dilution gain of $3,056,656 being recorded.

During Fiscal 2020, we recorded a loss pick up of $89,073 representing our share of URC’s loss.

During Fiscal 2022, interest and finance costs totaled $1,519, a decrease of $1,361 compared to $2,880 during Fiscal 2021, which decreased by $582 compared to $3,462 during Fiscal 2020.

Interest and finance costs were comprised of the following:

Year Ended July 31,

Interest paid on long-term debt

Amortization of debt discount

Surety bond premium

The decrease in interest on long-term debt and amortization of debt discount resulted from the decrease in the outstanding principal amount of our long-term debt to $Nil as at January 31, 2022, from $10,000 as at July 31, 2021, and from $20,000 as at July 31, 2020 due to the principal repayments we made during the last two fiscal years.

The increases in surety bond premiums in Fiscal 2022 resulted from the surety bonds assumed as a result of the U1A Acquisition, and the increases in Fiscal 2021 were the result of increases in surety bond premium rates.

Income from Equity-Accounted Investment

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, income from the equity-accounted investment comprised of the following:

Year Ended July 31,

Share of income (loss) from URC

Gain on dilution of ownership interest

During Fiscal 2022 and Fiscal 2021, we recorded a gain on dilution of ownership interest of $3,973 and $4,473, respectively, as a result of URC issuing more shares from its equity financings, which decreased our ownership interest in URC to $15.5% at July 31, 2022, from 18.1% at July 31, 2021 and from 19.5% at July 31, 2020.

During Fiscal 2020, URC completed its initial public offering and other private placements.

As a result, our ownership interest in URC decreased to 19.5% at July 31, 2020 from 32.6% at July 31, 2019, which resulted in a gain on ownership interest dilution of $3,057 being recorded.

Debt Receivable Recovery and Gain on Settlement of Debt Receivable

In connection with the U1A Acquisition, we acquired certain indebtedness totaling $18,342 due from Anfield, which was owed to U1A prior to the closing of the U1A Acquisition (the “Anfield Debt”).

We assigned a value of $Nil to the Anfield Debt net of the expected credit loss on the preliminary purchase price allocation given that the probability of the Anfield Debt being collectable was remote at December 17, 2021.

On April 19, 2022, we entered into a debt settlement agreement (the “Settlement Agreement”) and a property swap agreement (the “Swap Agreement”;

and together with the Settlement Agreement, the “Anfield Agreements”) with Anfield to settle the Anfield Debt.

Pursuant to the Anfield Agreements, the Anfield Debt was settled by the payment by Anfield to UEC of $9,171 in cash and the issuance by Anfield to UEC in units of Anfield (each, an “Anfield Unit”) with a deemed value of $9,171, with each such Anfield Unit being comprised of one common share in the capital of Anfield (each, an “Anfield Common Share”) and one Anfield Common Share purchase warrant (each whole such warrant being an “Anfield Warrant”).

Each Anfield Warrant entitles UEC to acquire one Anfield Common Share at a price of CA$0.18 until May 12, 2027 (collectively, the “Anfield Debt Settlement”).

Completion of the Anfield Agreements was contingent on Anfield raising additional financing.

On June 7, 2022, we closed the Anfield Debt Settlement whereby we received $9,171 in cash and Anfield Units, being comprised of 96,272,918 Anfield Common Shares with a fair value of $7,702 and 96,272,918 Anfield Warrants with a fair value of $3,249.

As a result, UEC owns approximately 16% of Anfield’s outstanding shares. 

Consequently, we reversed the entire expected credit loss on the debt receivable and recognized a recovery on debt receivable of $18,342 on our consolidated statements of operations and comprehensive income.

The fair value of the cash and the Anfield Common Shares and Anfield Warrants totaled $20,122, which exceeded the amounts of $18,342 previously written off at the date of U1A Acquisition by $1,780, resulting in a gain on settlement of the Anfield Debt receivable on our consolidated statements of operations and comprehensive income.

Refer to Note 4:

Anfield Debt Settlement and Property Swap to our Consolidated Financial Statements for Fiscal 2022 contained herein.

Gain on Disposition of Assets

Concurrent with the Anfield Debt Settlement, we completed the Swap Agreement whereby we have received from Anfield 25 ISR uranium projects with a fair value of $6,500 located in Wyoming in exchange for the Company’s Slick Rock Project and Long Park Project located in Colorado with a total carrying value of $92.

As a result, we recorded a gain of $6,408 on disposition of assets on our consolidated statements of operations and comprehensive income.

Refer to Note 4:

Anfield Debt Settlement and Property Swap to our Consolidated Financial Statements for Fiscal 2022 contained herein.

Unrealized Loss on Equity Securities

As at July 31, 2022, our investments in certain equity securities are re-evaluated using the market values at period end, which resulted in an unrealized loss totaling $1,898, which was comprised of $1,925 in unrealized loss from re-valuation of our investment in the Anfield Shares and $1,105 in unrealized loss from a re-valuation of the Anfield Warrants, offset by an unrealized gain of $1,132 from a re-valuation of our investment in UEX.

Refer to Note 17:

Unrealized Loss on Equity Securities contained herein.

Liquidity and Capital Resources

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Current assets

Current portion of long-term debt

Other current liabilities

Current liabilities

Working capital

During Fiscal 2021, we received net proceeds of $89,931,236 from various equity financings and $5,504,286 from the exercises of stock options and share purchase warrants, which significantly strengthened our working capital position.

During Fiscal 2022, we received net proceeds of $163,755 from the 2021 ATM Offerings and $4,259 from the exercises of stock options and share purchase warrants, which significantly strengthened our working capital position.

As at July 31, 2022, we had a working capital of $93,693, an increase of $31,917 from $61,776 as at July 31, 2021.

Subsequent to July 31, 2021, we received additional cash proceeds of $62.7 million under our 2021 ATM Offering.

During the year ended and subsequent to July 31, 2021, we entered into agreements to purchase 4.1 million pounds of uranium concentrates under our Physical Uranium Portfolio for a total purchase price of $131.7 million, of which $22.0 million will become due in the next 12 months from the date that this Annual Report is issued.

Refer to Note 3:

Inventories in our Audited Consolidated Financial Statements.

In addition, as at July 31, 2021, we had $10.0 million of term debt with a maturity date on January 31, 2022.

We believe our existing cash resources will provide sufficient funds to fulfill our uranium inventory purchase commitments, repay the debt principal of $10.0 million when it becomes due, and carry out our planned operations for the next 12 months from the date that this Annual Report is issued.

Although our planned principal operations commenced in Fiscal 2012, from which significant revenues from U 3 O 8 sales were realized, our revenues generated from sales of produced U 3 O 8 have been inconsistent and we have yet to achieve profitability.

Subsequent to July 31, 2022, we received additional cash proceeds of $14,808 under our 2021 ATM Offering, $7,178 from sales of uranium inventory, and we entered into agreements to sell an additional 600,000 pounds of uranium inventory for gross proceeds of $30,675.

We believe our existing cash resources, if necessary, and the cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations for the next 12 months from the date that this Annual Report is issued.

We have a history of operating losses resulting in an accumulated deficit balance since inception.

In Fiscal 2021, we recorded net losses totaling $14,813,810 (Fiscal 2020:

Although we recorded net income totaling $5,252 in Fiscal 2022, we recorded net losses in all prior years (Fiscal 2021:

$14,610) and we had an accumulated deficit balance of $286,373 as at July 31, 2022.

During Fiscal 2021, net cash used in operating activities totaled $41,469,449, which included $28,960,818 cash used for the purchase of 1.0 million pounds of uranium concentrates.

During Fiscal 2022, net cash used in operating activities totaled $52,987, which included $37,206 net cash used for the purchase of uranium concentrates.

Furthermore, we may not achieve and maintain profitability or develop positive cash flow from our operations in the near term.

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.

As detailed in the preceding paragraph, we have also relied to a limited extent on cash flows generated from our mining activities during Fiscal 2015, Fiscal 2013 and Fiscal 2012, however, we have yet to achieve profitability or develop positive cash flow from operations.

At the date of this Annual Report, we have 1.2 million pounds of uranium concentrate inventories with a fair value of approximately $56.7 million.

As detailed in the preceding paragraph, we have also relied to a limited extent on cash flows generated from our mining activities during Fiscal 2015, Fiscal 2013 and Fiscal 2012, however, we have yet to achieve consistent profitability or develop positive cash flow from operations.

In the future, we may also rely on cash flows generated from the sales of our uranium concentrates to fund our operations.

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In the absence of such additional financing, we would not be able to fund our operations, including continuing with our exploration and pre-extraction activities, which may result in delays, curtailment or abandonment of any one or all of our uranium projects.

For Fiscal 2022, we estimate that a total of up to $2.0 million will be incurred on our mineral projects for permitting, exploration and pre-extraction activities.

We hold mineral rights in the States of Arizona, Colorado, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay with annual land-related payments totaling $3.4 million to maintain these rights in good standing.

Our anticipated operations, including exploration and pre-extraction activities, however, will be dependent on and may change as a result of our financial position, the market price of uranium and other considerations, and such change may include accelerating the pace or broadening the scope of reducing our operations as originally announced in September 2013.

For our fiscal year ending July 31, 2023 (“Fiscal 2023”), we estimate that a total of up to $3.7 million will be incurred on our mineral projects for permitting, exploration and pre-extraction activities.

We hold mineral rights in the States of Arizona, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay, with annual land-related payments totaling $4.2 million to maintain these rights in good standing.

Our ability to secure adequate funding for these activities will be impacted by our operating performance, other uses of cash, the market price of uranium, the market price of our common stock and other factors which may be beyond our control.

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if the COVID-19 pandemic worsens or continues over an extended period and causes further financial market uncertainty;

if a nuclear incident, such as the event that occurred at Fukushima in March 2011, were to occur, continuing public support of nuclear power as a viable source of electricity generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries.

if a nuclear incident, such as the event that occurred in Japan in March 2011, were to occur, continuing public support of nuclear power as a viable source of electricity generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries.

Our continuation as a going concern beyond 12 months from the date this Annual Report is filed 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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Equity Financings

On February 21, 2020, we filed a Form S-3 shelf registration statement under the Securities Act which was declared effective by the SEC on March 3, 2020 (the “2020 Shelf”) providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $100 million.

As a result of the 2020 Shelf, our March 10, 2017 Form S-3 registration statement was then deemed terminated and, as a consequence, our then April 9, 2019 ATM Offering Agreement (the “April 2019 ATM Offering Agreement”) with H.C.

Wainwright & Co, LLC (as the lead manager) and the co-managers as set forth in the April 2019 ATM Offering Agreement (collectively, the ATM Managers”) and its related offering terminated unless renewed under the 2020 Shelf.

On March 19, 2020, we entered into an Amending Agreement to the April 2019 ATM Offering Agreement with the ATM Managers under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $30 million through the ATM Managers through the 2020 Shelf (the “2020 ATM Offering”).

On September 23, 2020, and under our 2020 Shelf, we completed an offering of 12,500,000 units at a price of $1.20 per unit for gross proceeds of $15,000,000 (the “September 2020 Offering”).

On September 23, 2020, and under our 2020 Shelf, we completed an offering of 12,500,000 units at a price of $1.20 per unit for gross proceeds of $15,000 (the “September 2020 Offering”).

Each unit was comprised of one share of the Company and one-half of one share purchase warrant, and each whole warrant entitles its holder to acquire one share at an exercise price of $1.80 per share exercisable immediately upon issuance and expiring 24 months from the date of issuance.

In connection with the September 2020 Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase 583,333 shares of our Company exercisable at an exercise price of $1.80 per share and expiring 24 months from the date of issuance.

During Fiscal 2021, we issued 13,668,906 shares of the Company’s common stock at a weighted average price of $2.19 per share under our 2020 ATM Offering for net cash proceeds of $29,320,949.

On March 19, 2021, and under our 2020 Shelf, we completed an offering of 10,000,000 shares of the Company’s common stock at a price of $3.05 per share for net proceeds of $29,083,710.

On April 8, 2021, and under our 2020 Shelf, we completed an offering of 3,636,364 shares of the Company’s common stock at a price of $3.30 per share for net proceeds of $11,315,966 (the “April 2021 Offering”).

During Fiscal 2021, we issued 13,668,906 shares of the Company’s common stock under our 2020 ATM Offering for net cash proceeds of $29,321.

On March 19, 2021, and under our 2020 Shelf, we completed an offering of 10,000,000 shares of the Company’s common stock at a price of $3.05 per share for net proceeds of $29,084.

On April 8, 2021, and under our 2020 Shelf, we completed an offering of 3,636,364 shares of the Company’s common stock at a price of $3.30 per share for net proceeds of $11,316 (the “April 2021 Offering”).

In connection with the April 2021 Offering, we also issued, on a private placement basis, 181,818 Agent Warrants to the agent as partial compensation, and each Agent Warrant entitles its holder to acquire one share of common stock at an exercise price of $4.125 per share and expiring five years from the date of issuance.

On May 17, 2021, we filed a Form S-3 shelf registration statement under the Securities Act which was declared effective by the SEC on June 1, 2021 providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $200 million (the “2021 Shelf”), which included an at-the-market offering agreement prospectus (the “2021 ATM Offering”) covering the offering, issuance and sale of up to a maximum offering of $100 million as part of the $200 million under the 2021 Shelf.

On May 14, 2021, we entered into an at-the-market offering agreement (the “2021 ATM Offering Agreement”) with H.C.

Wainwright & Co., LLC and certain co-managers (collectively, the “2021 ATM Managers”) as set forth in the 2021 ATM Offering Agreement under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million through the 2021 ATM Managers selected by us.

As of the date of this Annual Report, we issued 23,009,578 shares of the Company’s common stock at a weighted average price of $3.06 per share under our 2021 ATM Offering for net cash proceeds of $68,827,792.

On May 17, 2021, we filed a Form S-3 shelf registration statement under the Securities Act, which was declared effective by the SEC on June 1, 2021, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $200 million (the “2021 Shelf”), which included an at-the-market offering agreement prospectus (the “May 2021 ATM Offering”) covering the offering, issuance and sale of up to a maximum offering of $100 million as part of the $200 million under the 2021 Shelf.

On May 14, 2021, we entered into an at-the-market offering agreement (the “2021 ATM Offering Agreement”) with H.C.

On November 26, 2021, we filed a prospectus supplement to our 2021 Shelf with respect to the continuation of the May 2021 ATM Offering Agreement with the ATM Managers under which we may, if eligible, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million through the ATM Managers selected by us (the “November 2021 ATM Offering”;

and, collectively with May 2021 ATM Offering, the “2021 ATM Offerings”).

During Fiscal 2021, we issued 2,265,700 shares of the Company’s common stocks under our May 2021 ATM Offering for net cash proceeds of $6,157.

During Fiscal 2022, we issued 47,507,536 shares of the Company’s common stocks under our 2021 ATM Offerings for net cash proceeds of $163,814.

Subsequent to July 31, 2022, we issued a further 3,510,100 shares of the Company’s common stock under our 2021 ATM Offerings for net cash proceeds of $14,808 and received proceeds of $6,141 from the exercise of share purchase warrants.

Credit Facility

On December 5, 2018, we entered into the Third Amended and Restated Credit Agreement with our Lenders, whereby we and the Lenders agreed to certain further amendments to our Credit Facility, under which initial funding of $10,000,000 was received by the Company upon closing of the Credit Facility on July 30, 2013, and additional funding of $10,000,000 was received by the Company upon closing of the amended Credit Facility on March 13, 2014.

Key terms of the Third Amended and Restated Credit Agreement are summarized as follows:

the extension of the maturity date from January 1, 2020 to January 31, 2022;

the deferral of the prior monthly principal payments until the new maturity date of January 31, 2022;

the issuance of 1,180,328 shares on signing in Fiscal 2019 representing third extension fee shares equal to 7% of the principal balance outstanding or $1,400,000;

the payment of anniversary fees to the Lenders on each of November 30, 2019, 2020 and 2021, of 7%, 6.5% and 6%, respectively, of the principal balance then outstanding, if any, payable at the option of the Company in cash or shares of the Company with a price per share calculated at a 10% discount to the five trading-day volume-weighted average price of the Company’s shares immediately prior to the applicable date.

The Credit Facility is non-revolving with an amended term from inception of 8.5 years maturing on January 31, 2022, subject to an interest rate of 8% per annum, compounded and payable on a monthly basis.

The Third Credit Amended and Restated Agreement supersedes, in their entirety, the Company’s prior Second Amended and Restated Credit Agreement, dated and effective February 9, 2016, the Amended and Restated Credit Agreement, dated and effective March 13, 2014, and the Credit Agreement dated and effective July 30, 2013, with our Lenders.

During Fiscal 2021, we made voluntary payments totaling $10,000,000 to certain Lenders, which decreased the principal balance outstanding to $10,000,000 under the Credit Facility.

Pursuant to the terms of the Third Amended and Restated Credit Agreement, during Fiscal 2021, we issued an aggregate of 1,249,039 shares with a fair value of $1,170,000, representing 6.5% of the $18,000,000 principal balance outstanding at the time;

and during Fiscal 2020, we issued an aggregate of 1,743,462 shares to our Lenders, with a fair value of $1,400,000, representing 7% of the $20,000,000 principal balance outstanding at the time, as payment of anniversary fees to our Lenders.

Refer to “Long-Term Debt Obligations” under Material Commitments and to Note 9:

On December 5, 2018, we entered into the Third Amended and Restated Credit Agreement to our credit facility (the “Credit Facility”) with our lenders (each, a “Lender”), whereby we and the Lenders agreed to certain further amendments to our Credit Facility, under which initial funding of $10,000 was received by the Company upon closing of the Credit Facility on July 30, 2013, and additional funding of $10,000 was received by the Company upon closing of the amended Credit Facility on March 13, 2014.

The Third Credit Amended and Restated Agreement superseded, in their entirety, the Company’s prior Second Amended and Restated Credit Agreement, dated and effective February 9, 2016, the Amended and Restated Credit Agreement, dated and effective March 13, 2014, and the Credit Agreement dated and effective July 30, 2013, with our Lenders.

During Fiscal 2021, we made voluntary payments totaling $10,000 to certain Lenders, and during Fiscal 2022, we made payment of $10,000 to the remaining Lender, which decreased the principal balance outstanding to $Nil as at July 31, 2022 under the Credit Facility.

Pursuant to the terms of the Third Amended and Restated Credit Agreement, during Fiscal 2022, we issued 161,594 shares with a fair value of $600, during Fiscal 2021, we issued an aggregate of 1,249,039 shares with a fair value of $1,170, and during Fiscal 2020, we issued an aggregate of 1,743,462 shares to our Lenders, with a fair value of $1,400, as payment of anniversary fees to our Lenders.

Refer to Note 11:

Long-Term Debt to our Consolidated Financial Statements herein.

Government Loans

During Fiscal 2020, our Canadian subsidiary received a loan of $29,842 (CA$40,000) under the Canada Emergency Business Account program (the “CEBA Loan”).

During Fiscal 2021, we repaid CA$30,000 of the CEBA Loan, 75% of the total CEBA Loan principal before its initial term date on December 31, 2022, and received a CEBA Loan Closure Confirmation for forgiveness of the balance of CA$10,000.

During Fiscal 2020, we applied for a Paycheck Protection Program loan and received the proceeds of $277,250 (the “PPP Loan”).

During Fiscal 2021, we received a Notice of Paycheck Protection Program Forgiveness Payment from the Small Business Administration regarding the approval of our application for forgiveness of the PPP Loan amount of $277,250 and associated interest.

Promissory Note

During Fiscal 2021, in connection with a land purchase located within our Goliad Project (the “Goliad Land Purchase”), we issued a promissory note with a principal amount of $380,000 to a landowner (the “Promissory Note”).

The Promissory Note carries an interest rate of 5% per annum with principal and interest payable in 24 monthly installments with a maturity date of November 1, 2022.

We may prepay the Promissory Note in any amount at any time before the maturity date without penalty.

Operating Activities

During Fiscal 2021, net cash used in operating activities totaled $41,469,449, of which $28,960,818 was for purchases of uranium concentrates.

During Fiscal 2022 and Fiscal 2021, net cash used in operating activities totaled $52,987 and $41,470, respectively, of which $37,206 and $28,961, respectively, was for purchases of uranium concentrates.

Other significant operating expenditures included mineral property expenditures, general and administrative expenses and interest payments.

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Financing Activities

During Fiscal 2021, net cash provided by financing activities totaled $84,457,538, primarily from net cash of $89,931,236 from various offerings, and $5,504,286 from the exercises of stock options and share purchase warrants, offset by the payments of $833,363 for tax withholding amounts related to the issuance of RSU shares, the principal payment of $10,000,000 to certain Lenders under the Credit Facility and $144,621 for the Promissory Note and the CEBA Loan.

During Fiscal 2020, net cash provided by financing activities totaled $307,092, consisting of $277,250 from the PPP Loan and $29,842 from the CEBA Loan.

During Fiscal 2022, net cash provided from financing activities totaled $157,266, primarily from net cash of $163,755 from the 2021 ATM Offerings and $4,259 from the exercises of stock options and share purchase warrants, offset by the payments of $557 for tax withholding amounts related to the issuance of RSU and PRSU shares, the principal payment of $10,000 to our remaining Lender under the Credit Facility and $191 for a promissory note.

During Fiscal 2021, net cash provided by financing activities totaled $84,458, primarily from net cash of $89,932 from various offerings, and $5,504 from the exercises of stock options and share purchase warrants, offset by the payments of $833 for tax withholding amounts related to the issuance of RSU shares, the principal payment of $10,000 to certain Lenders under the Credit Facility and $145 for a promissory note and a government loan.

During Fiscal 2020, net cash provided by financing activities totaled $307 from certain government loans.

Investing Activities

During Fiscal 2021, net cash used by investing activities totaled $3,624,551, primarily for cash used in investment in term deposits of $10,000,000, cash used in acquisition of URC shares of $3,396,852, cash used in the investment in mineral rights and properties of $80,000 and cash used in the purchase of property, plant and equipment of $147,699, offset by cash received from redemption of term deposits of $10,000,000.

During Fiscal 2020, net cash provided by investing activities totaled $11,670,960, primarily from cash received from the redemption of term deposits totaling $11,831,671, offset by cash used in the investment in mineral rights and properties of $80,000 and cash used in the purchase of property, plant and equipment of $83,838.

During Fiscal 2022, net cash used by investing activities totaled $110,843, comprised of net cash used in the U1A Acquisition of $113,588, cash used in investment in equity securities of $15,215, cash used for investment in mineral rights and properties of $590 and cash used for the purchase of property, plant and equipment of $620, offset by cash proceeds of $9,980 from sales of equity securities, $9,171 from recovery of the Anfield Debt receivable and $19 from the disposition of assets.

During Fiscal 2021, net cash used by investing activities totaled $3,625, primarily for cash used in investment in term deposits of $10,000, cash used in the acquisition of URC shares of $3,397, cash used in the investment in mineral rights and properties of $80 and cash used in the purchase of property, plant and equipment of $148, offset by cash received from the redemption of term deposits of $10,000.

During Fiscal 2020, net cash provided by investing activities totaled $11,671, primarily from cash received from the redemption of term deposits totaling $11,832, offset by cash used in the investment in mineral rights and properties of $80 and cash used in the purchase of property, plant and equipment of $84. 

Stock Options and Warrants

As at July 31, 2022, the Company had 8,880,527 stock options outstanding at a weighted-average exercise price of $1.58 per share, and 3,615,454 share purchase warrants outstanding at a weighted-average exercise price of $1.92 per share.

As at July 31, 2021, outstanding stock options and share purchase warrants represented a total 15,791,656 shares issuable for gross proceeds of approximately $22.8 million should these stock options and share purchase warrants be exercised in full.

As at July 31, 2021, outstanding in-the-money stock options and share purchase warrants represented a total 15,095,852 shares exercisable for gross proceeds of approximately $20.8 million should these in-the-money stock options and warrants be exercised in full.

As at July 31, 2022, outstanding stock options and share purchase warrants, which were all in-the-money, represented a total 12,495,981 shares issuable for gross proceeds of approximately $21.0 million should these stock options and share purchase warrants be exercised in full.

The exercise of these stock options and share purchase warrants is at the discretion of the respective holders and, accordingly, there is no assurance that any of these stock options or share purchase warrants will be exercised in the future.

Plan of Operations

For Fiscal 2022, uranium extraction at PAA-1, 2 and 3 of our Palangana Mine is expected to continue being operated at a reduced pace, including the deferral of major pre-extraction expenditures, and to remain in a state of operational readiness in anticipation of a recovery in uranium prices.

In addition, we will continue the drilling program initiated in March 2021 at our Burke Hollow Project.

For Fiscal 2023, uranium extraction at PAA-1, 2 and 3 of our Palangana Mine and at the recently acquired Christensen Ranch Mine is expected to continue being operated at a reduced pace, including the deferral of major pre-extraction expenditures, and to remain in a state of operational readiness in anticipation of a recovery in uranium prices.

In addition, we will continue the drilling program at our Burke Hollow Project.

Material Commitments

Long-term Debt Obligations

The Credit Facility described above requires scheduled payments of principal, interest and fees and includes restrictive covenants that, among other things, limit our ability to sell the assets securing our indebtedness or to incur additional indebtedness other than permitted indebtedness.

Our ability to make these scheduled payments will be dependent on, and may change as a result of, our financial condition and operating performance.

If we become unable to make these scheduled payments or if we do not comply with any one or more of these covenants, we could be in default which, if not addressed or waived, could require accelerated repayment of our indebtedness.

Furthermore, such default could result in the enforcement by our Lenders against the Company’s assets securing our indebtedness.

These are key assets on which our business is substantially dependent and as such, the enforcement against any one or all of these assets would have a material adverse effect on our operations and financial condition.

As at July 31, 2021, we complied with all of the covenants under the Credit Facility, and we expect to continue complying with all scheduled payments and covenants during Fiscal 2022.

As at July 31, 2021, significant payment obligations of the Company over next five years and beyond are as follows:

As at July 31, 2022, significant payment obligations of the Company over the next five years and beyond are as follows:

Payment Due by Period

Contractual Obligations

Long-Term Debt Obligations - Principal

Long-Term Debt Obligations - Interests and Fees

Other Loan Obligations - Principal and Interests

Less Than 1 Year

More Than 5 Years

Asset Retirement Obligations

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Uranium Inventory Purchase Obligations

Other Loan Obligations - Principal and Interests

As at July 31, 2022, we were renting or leasing office premises in Texas, Arizona and Wyoming, U.S., Vancouver, British Columbia, Canada, and Paraguay for total monthly payments of $28.

Office lease agreements for the U.S.

and Canada expire between March 2022 and August 2022.

and Canada expire between July 2023 and March 2027.

Commitments for Management Services

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The preparation of financial statements in conformity with U.S.

GAAP requires management to make judgement, estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reported periods.

Significant areas requiring management’s judgement, estimates and assumptions include valuation and measurement of impairment losses on mineral rights and properties, valuation of stock-based compensation, and valuation of asset retirement obligations.

GAAP requires management to make judgements, estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reported periods.

Areas requiring significant judgements, estimates and assumptions include the valuation of acquired mineral rights and properties, existence of impairment indicators for the Company’s long-lived assets, valuation and measurement of impairment losses on mineral rights and properties, valuation of recoverability of a credit loss, valuation of stock-based compensation and valuation of asset retirement obligations.

Other areas requiring estimates include allocations of expenditures to inventories, depletion and amortization of mineral rights and properties and depreciation of property, plant and equipment.

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Acquisition costs of mineral rights are initially capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time proven or probable reserves are established for that project.

We have established the existence of mineralized materials for certain uranium projects, including our Palangana Mine.

However, we have not established proven or probable reserves for any of our uranium projects, including the Palangana Mine.

Furthermore, we have no plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing ISR mining, such as the Palangana Mine.

As a result, and despite the fact that we commenced extraction of mineralized materials at the Palangana Mine in November 2010, we remain in the Exploration Stage and will continue to remain in the Exploration Stage until such time proven or probable reserves have been established.

We have established the existence of mineralized materials for certain uranium projects, including our ISR Mines.

However, we have not established proven or probable reserves for any of our uranium projects, including our ISR Mines.

Furthermore, we have no plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing ISR mining.

As a result, and despite the fact that we commenced extraction of mineralized materials at our ISR Mines, we remain in the Exploration Stage and will continue to remain in the Exploration Stage until such time proven or probable reserves have been established.

Companies in the Production Stage that have established proven and probable reserves and exited the Exploration Stage, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method and allocated to future reporting periods to inventory and, as that inventory is sold, to cost of goods sold.

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As a result, our consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage.

Business Combination

We recognize and measure the assets acquired and liabilities assumed in a business combination based on their estimated fair values at the acquisition date, while transaction costs related to business combinations are expensed as incurred.

An income, market or cost valuation method may be utilized to estimate the fair value of the assets acquired and liabilities assumed, if any, in a business combination.

The income valuation method represents the present value of future cash flows over the life of the asset using:

(i) discrete financial forecasts, which rely on management’s estimates of resource quantities and exploration potential, costs to produce and develop resources, revenues and operating expenses;

(ii) appropriate discount rates;

and (iii) expected future capital requirements.

The market valuation method uses prices paid for a similar asset by other purchasers in the market, normalized for any differences between the assets.

The cost valuation method is based on the replacement cost of a comparable asset at the time of the acquisition adjusted for depreciation and economic and functional obsolescence of the asset.

If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, an estimate will be recorded.

Subsequent to the acquisition date, and not later than one year from the acquisition date, we will record any material adjustments to the initial estimate based on new information obtained that would have existed as of the date of the acquisition.

Any adjustment that arises from information obtained that did not exist as of the date of the acquisition will be recorded in the period the adjustments arise.

Equity Investments

Investments in an entity in which our ownership is greater than 20% but less than 50%, or where other facts and circumstances indicate that we have the ability to exercise significant influence over the operating and financing policies of an entity, are accounted for using the equity method in accordance with ASC 323:

Investments –

Equity Method and Joint Ventures.

Equity-accounted investments are recorded initially at cost and adjusted subsequently to recognize our share of the earnings, losses or other changes in capital of the investee entity after the date of acquisition.

We periodically evaluate whether declines in fair values of our equity investments below the carrying value are other-than-temporary, and if so, whether an impairment loss is required.

Additionally, we hold certain equity investments in entities that we do not have the ability to exercise significant influence.

These equity investments represent our ownership interests in certain entities, and therefore meet the definition of an equity security under ASC 321 Investments –

Equity Securities and are measured at fair value at each period end, with unrealized holding gains or losses recorded to earnings.

Impairment of Long-lived Assets

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Circumstances which could trigger an impairment test include, but are not limited to:

significant decreases in the market price of the asset;

significant adverse changes in the business climate or legal factors including significant decreases in uranium prices;

significant increase in reclamation costs and accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset;

current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset;

and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life.

(i) significant decreases in the market price of the asset;

(ii) significant adverse changes in the business climate or legal factors including significant decreases in uranium prices;

(iii) significant increase in reclamation costs and accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset;

(iv) current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset;

and (v) current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life.

Recoverability of these assets is measured by comparing the carrying value to the future undiscounted cash flows expected to be generated by the assets.

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Various federal and state mining laws and regulations require our Company to reclaim the surface areas and restore underground water quality to the pre-existing quality or class of use after the completion of mining.

We recognize the present value of the future restoration and remediation costs as an asset retirement obligation (each, an “ARO”) in the period in which we incur an obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets.

AROs consist of estimated final well closure, plant and equipment decommissioning and removal and environmental remediation costs to be incurred by our Company in the future.

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The fair value of PRSUs is determined using a Monte Carlo Simulation Model.

Stock-based compensation expense related to stock awards is recognized over the requisite service period on an accelerating basis.

Stock-based compensation expense related to stock awards is recognized over the requisite service period on a graded vesting basis.

Forfeitures are accounted for as they occur.

Subsequent Events

Subsequent to July 31, 2021, we entered into agreements to purchase 400,000 pounds of uranium concentrates with an aggregate purchase price of $14,500,000, of which 200,000 pounds of uranium concentrates with an aggregate purchase price of $6,980,000 were received.

Subsequent to July 31, 2021, we issued 20,743,878 shares of the Company’s common stock at a weighted average price of $3.09 per share under the 2021 ATM Offering for net cash proceeds of $62,671,103.

On June 13, 2022, we entered into of a definitive UEX Agreement with UEX pursuant to which UEC would acquire all of the issued and outstanding common shares of UEX in an all-share transaction by way of statutory plan of arrangement (the UEX Acquisition).  

On June 21, 2022, under the UEX Agreement, we completed a private placement in UEX, whereby UEC acquired 11,627,907 UEX common shares at a price of CA$0.43 per UEX common share for total consideration of $3,867. 

Subsequently, UEC acquired an additional 6,844,000 UEX common shares for total consideration of $1,914 by making purchases through the facilities of the Toronto Stock Exchange subject to and in accordance with applicable laws.

As of July 31, 2022, we owned 18,471,907 UEX common shares, representing a 3% interest in UEX, with a fair value of $6,914.

The investment in UEX was accounted for as investment in equity securities with a change in fair value of $1,132 recorded as unrealized gain in our consolidated statements of operations and comprehensive income.

Subsequent to July 31, 2022, we closed the UEX Acquisition under the Canada Business Corporations Act, pursuant to which UEC acquired all of the issued and outstanding common shares of UEX that we did not already own.

The UEX Acquisition was approved at a special meeting of UEX securityholders held on August 15, 2022, and was subsequently approved by the Supreme Court of British Columbia on August 18, 2022.

Pursuant to the terms of the UEX Acquisition, UEX shareholders received 0.090 common shares of UEC for each UEX common share held. 

As a result, we issued 48,518,745 shares of UEC in exchange for the common shares of UEX that UEC did not already own.

The UEX shares we owned before closing the UEX Acquisition were returned to treasury.

Subsequent to July 31, 2022, we sold 150,000 pounds of purchased uranium inventory for gross proceeds of $7,178 and entered into agreements to sell 600,000 pounds of purchased uranium inventory for gross proceeds of $30,675.

Subsequent to July 31, 2022, we issued 3,510,100 shares of the Company’s common stock under our 2021 ATM Offerings for net cash proceeds of $14,808 and received cash proceeds of $6,141 from the exercise of share purchase warrants.

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.

What changed 10-K

Item 5. Market for Registrant’s Common Equity