UEC filing — read by section

Item 1. Financial Statements

Item 1. Financial Statements 

 4
 
 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 

 FOR THE three and nine months ended April 30, 2024 

 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated) 

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 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

 (Unaudited – Expressed in thousands of U.S. dollars) 

 Notes 
 April 30, 2024 
 July 31, 2023 
 
 CURRENT ASSETS 
 
 Cash and cash equivalents
 $ 87,726 $ 45,614 

 Inventories
 3 63,387 6,207 

 Prepaid expenses and deposits
 3,407 2,682 

 Other current assets
 954 702 

 TOTAL CURRENT ASSETS
 155,474 55,205 

 MINERAL RIGHTS AND PROPERTIES
 4 558,436 565,560 

 PROPERTY, PLANT AND EQUIPMENT
 5 19,959 19,728 

 RESTRICTED CASH
 6 7,251 7,251 

 EQUITY-ACCOUNTED INVESTMENTS
 7 62,548 48,110 

 INVESTMENT IN EQUITY SECURITIES
 8 71,343 38,656 

 OTHER NON-CURRENT ASSETS
 3,257 3,079 

 TOTAL ASSETS 
 $ 878,268 $ 737,589 

 CURRENT LIABILITIES 
 
 Accounts payable and accrued liabilities
 $ 4,486 $ 10,525 

 Asset retirement obligations - current
 9 1,481 1,515 

 Derivative liabilities
 10 8,068 - 

 Other current liabilities
 277 154 

 TOTAL CURRENT LIABILITIES
 14,312 12,194 

 ASSET RETIREMENT OBLIGATIONS
 9 17,893 17,155 

 OTHER NON-CURRENT LIABILITIES
 1,521 1,020 

 DERIVATIVE LIABILITIES
 10 - 4,313 

 DEFERRED TAX LIABILITIES
 65,902 71,080 

 TOTAL LIABILITIES 
 99,628 105,762 

 STOCKHOLDERS’ EQUITY 
 
 Capital stock
 
 Common stock $ 0.001 par value: 750,000,000 shares authorized, 405,951,114 shares issued and outstanding (July 31, 2023 - 378,452,864 )
 11 406 378 

 Additional paid-in capital
 1,094,795 924,737 

 Accumulated deficit
 ( 303,786 ) ( 289,680 ) 

 Accumulated other comprehensive loss
 ( 12,775 ) ( 3,608 ) 

 TOTAL EQUITY 
 778,640 631,827 

 TOTAL LIABILITIES AND EQUITY 
 $ 878,268 $ 737,589 

 COMMITMENTS AND CONTINGENCIES 
 3,9 

 SUBSEQUENT EVENTS 
 11 

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

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 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS 

 (Unaudited – Expressed in thousands of U.S. dollars, except share and per share data) 

 Three Months Ended 
 
 Nine Months Ended 
 
 April 30, 
 
 April 30, 
 
 Notes 
 
 2024 
 
 2023 
 
 2024 
 
 2023 
 
 SALES AND SERVICE REVENUE 
 
 13 
 
 $ 
 - 
 
 $ 
 20,217 
 
 $ 
 224 
 
 $ 
 125,440 
 
 COST OF SALES AND SERVICES 
 
 13 
 
 - 
 
 ( 13,998 
 ) 
 
 ( 187 
 ) 
 
 ( 90,793 
 ) 
 
 GROSS PROFIT 
 
 - 
 
 6,219 
 
 37 
 
 34,647 
 
 OPERATING COSTS 
 
 Mineral property expenditures
 
 9,071 
 
 5,452 
 
 21,448 
 
 13,650 
 
 General and administrative
 
 4,219 
 
 3,745 
 
 14,314 
 
 14,296 
 
 Depreciation, amortization and accretion
 
 4,5,9 
 
 551 
 
 506 
 
 1,620 
 
 1,504 
 
 TOTAL OPERATING COSTS 
 
 13,841 
 
 9,703 
 
 37,382 
 
 29,450 
 
 (LOSS) INCOME FROM OPERATIONS 
 
 ( 13,841 
 ) 
 
 ( 3,484 
 ) 
 
 ( 37,345 
 ) 
 
 5,197 
 
 OTHER (EXPENSES) INCOME 
 
 Interest expenses and finance costs
 
 ( 205 
 ) 
 
 ( 202 
 ) 
 
 ( 620 
 ) 
 
 ( 596 
 ) 
 
 Income (loss) from equity-accounted investments
 
 7 
 
 3,306 
 
 ( 900 
 ) 
 
 4,958 
 
 ( 985 
 ) 
 
 (Loss) gain on disposition of assets
 
 ( 46 
 ) 
 
 - 
 
 ( 33 
 ) 
 
 2 
 
 (Loss) gain on revaluation of equity securities
 
 8 
 
 ( 13,804 
 ) 
 
 ( 12,649 
 ) 
 
 23,585 
 
 ( 12,992 
 ) 
 
 Gain (loss) on revaluation of derivative liabilities
 
 10 
 
 2,071 
 
 5,550 
 
 ( 9,892 
 ) 
 
 4,651 
 
 Gain on settlement of liabilities
 
 - 
 
 235 
 
 - 
 
 427 
 
 Other income (expenses) 
 
 1,011 
 
 155 
 
 1,608 
 
 ( 308 
 ) 
 
 OTHER (EXPENSES) INCOME
 
 ( 7,667 
 ) 
 
 ( 7,811 
 ) 
 
 19,606 
 
 ( 9,801 
 ) 
 
 LOSS BEFORE INCOME TAXES 
 
 ( 21,508 
 ) 
 
 ( 11,295 
 ) 
 
 ( 17,739 
 ) 
 
 ( 4,604 
 ) 
 
 DEFERRED TAX RECOVERY 
 
 1,831 
 
 335 
 
 3,633 
 
 780 
 
 NET LOSS FOR THE PERIOD 
 
 ( 19,677 
 ) 
 
 ( 10,960 
 ) 
 
 ( 14,106 
 ) 
 
 ( 3,824 
 ) 
 
 OTHER COMPREHENSIVE LOSS 
 
 Translation loss
 
 ( 5,850 
 ) 
 
 ( 3,589 
 ) 
 
 ( 9,167 
 ) 
 
 ( 9,740 
 ) 
 
 TOTAL OTHER COMPREHENSIVE LOSS 
 
 ( 5,850 
 ) 
 
 ( 3,589 
 ) 
 
 ( 9,167 
 ) 
 
 ( 9,740 
 ) 
 
 TOTAL COMPREHENSIVE LOSS FOR THE PERIOD 
 
 $ 
 ( 25,527 
 ) 
 
 $ 
 ( 14,549 
 ) 
 
 $ 
 ( 23,273 
 ) 
 
 $ 
 ( 13,564 
 ) 
 
 NET LOSS PER SHARE 
 
 14 
 
 Basic 
 
 $ 
 ( 0.05 
 ) 
 
 $ 
 ( 0.03 
 ) 
 
 $ 
 ( 0.04 
 ) 
 
 $ 
 ( 0.01 
 ) 
 
 Diluted 
 
 $ 
 ( 0.05 
 ) 
 
 $ 
 ( 0.03 
 ) 
 
 $ 
 ( 0.04 
 ) 
 
 $ 
 ( 0.01 
 ) 
 
 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING, 
 
 Basic 
 
 404,104,490 
 
 375,759,521 
 
 393,425,716 
 
 360,554,427 
 
 Diluted 
 
 404,104,490 
 
 375,759,521 
 
 393,425,716 
 
 360,554,427 
 
 The accompanying notes are an integral part of these condensed consolidated financial statements.

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 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

 (Unaudited – Expressed in thousands of U.S. dollars) 

 Nine Months Ended April 30, 
 
 Notes 
 
 2024 
 
 2023 
 
 NET CASH PROVIDED BY (USED IN): 
 
 OPERATING ACTIVITIES 
 
 Net loss for the period
 
 $ 
 ( 14,106 
 ) 
 $ 
 ( 3,824 
 ) 
 
 Adjustments to reconcile net loss to cash flows in operating activities
 
 Stock-based compensation
 
 12 
 
 3,987 
 
 4,455 
 
 Depreciation, amortization and accretion
 
 4,5,9 
 
 1,620 
 
 1,504 
 
 (Income) loss from equity-accounted investment
 
 7 
 
 ( 4,958 
 ) 
 
 985 
 
 Loss (gain) on disposition of assets
 
 33 
 
 ( 2 
 ) 
 
 (Gain) loss on revaluation of equity securities
 
 8 
 
 ( 23,585 
 ) 
 
 12,992 
 
 Loss (gain) on revaluation of derivative liabilities
 
 10 
 
 9,892 
 
 ( 4,651 
 ) 
 
 Deferred tax recovery
 
 ( 3,633 
 ) 
 
 ( 780 
 ) 
 
 Gain on settlement of liabilities
 
 - 
 
 ( 427 
 ) 
 
 Changes in operating assets and liabilities
 
 Inventories
 
 ( 57,179 
 ) 
 
 39,933 
 
 Prepaid expenses and deposits
 
 ( 318 
 ) 
 
 838 
 
 Other current assets
 
 ( 262 
 ) 
 
 ( 646 
 ) 
 
 Accounts payable and accrued liabilities
 
 ( 5,389 
 ) 
 
 ( 6,598 
 ) 
 
 Other liabilities
 
 27 
 
 ( 1 
 ) 
 
 NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 
 
 ( 93,871 
 ) 
 
 43,778 
 
 FINANCING ACTIVITIES 
 
 Proceeds from share issuances, net of issuance costs
 
 11,12 
 
 160,239 
 
 64,853 
 
 Repayments of other loans
 
 - 
 
 ( 66 
 ) 
 
 Cash paid for withholding amounts on option exercise
 
 ( 947 
 ) 
 
 ( 147 
 ) 
 
 NET CASH PROVIDED BY FINANCING ACTIVITIES 
 
 159,292 
 
 64,640 
 
 INVESTING ACTIVITIES 
 
 Acquisition of UEX, net of cash acquired
 
 - 
 
 1,984 
 
 Acquisition of Roughrider
 
 - 
 
 ( 82,117 
 ) 
 
 Investment in mineral rights and properties
 
 ( 1,391 
 ) 
 
 ( 51 
 ) 
 
 Capital contribution to equity-accounted investment
 
 7 
 
 ( 2,388 
 ) 
 
 ( 595 
 ) 
 
 Purchase of additional interest in equity-accounted investment
 
 7 
 
 ( 9,238 
 ) 
 
 - 
 
 Investment in equity securities
 
 8 
 
 ( 12,115 
 ) 
 
 ( 42,219 
 ) 
 
 Proceeds from sale of equity securities
 
 8 
 
 3,008 
 
 - 
 
 Purchase of property, plant and equipment
 
 ( 1,166 
 ) 
 
 ( 337 
 ) 
 
 Proceeds from disposition of assets
 
 8 
 
 8 
 
 2 
 
 NET CASH USED IN INVESTING ACTIVITIES 
 
 ( 23,282 
 ) 
 
 ( 123,333 
 ) 
 
 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 
 
 42,139 
 
 ( 14,915 
 ) 
 
 FOREIGN EXCHANGE DIFFERENCE ON CASH 
 
 ( 27 
 ) 
 
 ( 158 
 ) 
 
 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD 
 
 52,865 
 
 39,787 
 
 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD 
 
 $ 
 94,977 
 
 $ 
 24,714 
 
 The accompanying notes are an integral part of these condensed consolidated financial statements.

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 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY 

 (Unaudited - Expressed in thousands of U.S. dollars, except share data ) 

 Common Stock 
 
 Additional Paid-in Capital 
 
 Share Issuance Obligation 
 
 Accumulated Deficit 
 
 Accumulated Other Comprehensive (Loss) Income 
 
 Stockholders’ Equity 
 
 Shares 
 
 Amount 
 
 Balance, July 31, 2023
 
 378,452,864 
 
 $ 
 378 
 
 $ 
 924,737 
 
 $ 
 - 
 
 $ 
 ( 289,680 
 ) 
 
 $ 
 ( 3,608 
 ) 
 
 $ 
 631,827 
 
 Common stock
 
 Issued under ATM offerings, net of issuance costs
 
 10,770,000 
 
 11 
 
 56,259 
 
 - 
 
 - 
 
 - 
 
 56,270 
 
 Issued upon exercise of stock options
 
 445,861 
 
 1 
 
 263 
 
 - 
 
 - 
 
 - 
 
 264 
 
 Stock-based compensation
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 1,572 
 
 - 
 
 - 
 
 - 
 
 1,572 
 
 Net income for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 3,321 
 
 - 
 
 3,321 
 
 Other comprehensive loss
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 11,049 
 ) 
 
 ( 11,049 
 ) 
 
 Balance, October 31, 2023
 
 389,668,725 
 
 $ 
 390 
 
 $ 
 982,831 
 
 $ 
 - 
 
 $ 
 ( 286,359 
 ) 
 
 $ 
 ( 14,657 
 ) 
 
 $ 
 682,205 
 
 Common stock
 
 Issued under ATM offering, net of issuance costs
 
 10,418,029 
 
 10 
 
 73,228 
 
 - 
 
 - 
 
 - 
 
 73,238 
 
 Issued upon exercise of stock options
 
 669,999 
 
 1 
 
 ( 70 
 ) 
 
 - 
 
 - 
 
 - 
 
 ( 69 
 ) 
 
 Issued upon exercise of warrants
 
 302,220 
 
 - 
 
 1,965 
 
 517 
 
 - 
 
 - 
 
 2,482 
 
 Stock-based compensation
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 1,312 
 
 - 
 
 - 
 
 - 
 
 1,312 
 
 Net income for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 2,250 
 
 - 
 
 2,250 
 
 Other comprehensive income
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 7,732 
 
 7,732 
 
 Balance, January 31, 2024
 
 401,058,973 
 
 $ 
 401 
 
 $ 
 1,059,266 
 
 $ 
 517 
 
 $ 
 ( 284,109 
 ) 
 
 $ 
 ( 6,925 
 ) 
 
 $ 
 769,150 
 
 Common stock
 
 Issued under ATM offering, net of issuance costs
 
 3,396,370 
 
 3 
 
 25,539 
 
 - 
 
 - 
 
 - 
 
 25,542 
 
 Issued upon exercise of stock options
 
 345,077 
 
 1 
 
 209 
 
 - 
 
 - 
 
 - 
 
 210 
 
 Issued upon exercise of warrants
 
 1,150,694 
 
 1 
 
 8,678 
 
 ( 517 
 ) 
 
 - 
 
 - 
 
 8,162 
 
 Stock-based compensation
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 1,103 
 
 - 
 
 - 
 
 - 
 
 1,103 
 
 Net loss for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 19,677 
 ) 
 
 - 
 
 ( 19,677 
 ) 
 
 Other comprehensive loss
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 5,850 
 ) 
 
 ( 5,850 
 ) 
 
 Balance, April 30, 2024 
 
 405,951,114 
 
 $ 
 406 
 
 $ 
 1,094,795 
 
 $ 
 - 
 
 $ 
 ( 303,786 
 ) 
 
 $ 
 ( 12,775 
 ) 
 
 $ 
 778,640 
 
 The accompanying notes are an integral part of these condensed consolidated financial statements.

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 Table of Contents 
 
 URANIUM ENERGY CORP. 

 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY 

 (Unaudited - Expressed in thousands of U.S. dollars, except share data ) 

 Common Stock 
 
 Additional Paid-in Capital 
 
 Share Issuance Obligation 
 
 Accumulated Deficit 
 
 Accumulated Other Comprehensive (Loss) Income 
 
 Stockholders’ Equity 
 
 Shares 
 
 Amount 
 
 Balance, July 31, 2022
 
 289,638,307 
 
 $ 
 289 
 
 $ 
 613,179 
 
 $ 
 - 
 
 $ 
 ( 286,373 
 ) 
 
 $ 
 ( 186 
 ) 
 
 $ 
 326,909 
 
 Common stock
 
 Issued for acquisition of UEX and Roughrider
 
 66,324,560 
 
 66 
 
 235,306 
 
 - 
 
 - 
 
 - 
 
 235,372 
 
 Issued under ATM offerings, net of issuance costs
 
 5,218,890 
 
 5 
 
 21,709 
 
 - 
 
 - 
 
 - 
 
 21,714 
 
 Issued upon exercise of stock options
 
 1,404,601 
 
 2 
 
 58 
 
 - 
 
 - 
 
 - 
 
 60 
 
 Issued upon exercise of warrants
 
 3,410,898 
 
 4 
 
 6,136 
 
 - 
 
 - 
 
 - 
 
 6,140 
 
 Stock-based compensation
 
 Common stock issued for consulting services
 
 4,179 
 
 - 
 
 17 
 
 - 
 
 - 
 
 - 
 
 17 
 
 Common stock issued under Stock Incentive Plan
 
 73,618 
 
 - 
 
 299 
 
 - 
 
 - 
 
 - 
 
 299 
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 1,426 
 
 - 
 
 - 
 
 - 
 
 1,426 
 
 Replacement options issued for acquisition of UEX
 
 - 
 
 - 
 
 4,026 
 
 - 
 
 - 
 
 - 
 
 4,026 
 
 Net loss for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 3,756 
 ) 
 
 - 
 
 ( 3,756 
 ) 
 
 Other comprehensive loss
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 10,768 
 ) 
 
 ( 10,768 
 ) 
 
 Balance, October 31, 2022
 
 366,075,053 
 
 $ 
 366 
 
 $ 
 882,156 
 
 $ 
 - 
 
 $ 
 ( 290,129 
 ) 
 
 $ 
 ( 10,954 
 ) 
 
 $ 
 581,439 
 
 Common stock
 
 Issued under ATM offering, net of issuance costs
 
 7,040,363 
 
 7 
 
 26,099 
 
 - 
 
 - 
 
 - 
 
 26,106 
 
 Issued upon exercise of stock options
 
 94,302 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 Issued upon exercise of warrants
 
 45,000 
 
 - 
 
 66 
 
 - 
 
 - 
 
 - 
 
 66 
 
 Stock-based compensation
 
 Common stock issued for consulting services
 
 49,228 
 
 - 
 
 201 
 
 - 
 
 - 
 
 - 
 
 201 
 
 Common stock issued under Stock Incentive Plan
 
 66,471 
 
 - 
 
 262 
 
 - 
 
 - 
 
 - 
 
 262 
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 1,085 
 
 - 
 
 - 
 
 - 
 
 1,085 
 
 Net income for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 10,892 
 
 - 
 
 10,892 
 
 Other comprehensive income
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 4,617 
 
 4,617 
 
 Balance, January 31, 2023
 
 373,370,417 
 
 $ 
 373 
 
 $ 
 909,869 
 
 $ 
 - 
 
 $ 
 ( 279,237 
 ) 
 
 $ 
 ( 6,337 
 ) 
 
 $ 
 624,668 
 
 Common stock
 
 Issued under ATM offering, net of issuance costs
 
 2,912,000 
 
 4 
 
 10,595 
 
 - 
 
 - 
 
 - 
 
 10,599 
 
 Issued upon exercise of stock options
 
 204,693 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 Issued upon exercise of warrants
 
 - 
 
 - 
 
 - 
 
 22 
 
 - 
 
 - 
 
 22 
 
 Stock-based compensation
 
 Common stock issued under Stock Incentive Plan
 
 60,784 
 
 - 
 
 211 
 
 - 
 
 - 
 
 - 
 
 211 
 
 Amortization of stock-based compensation
 
 - 
 
 - 
 
 887 
 
 - 
 
 - 
 
 - 
 
 887 
 
 Net loss for the period
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 10,960 
 ) 
 
 - 
 
 ( 10,960 
 ) 
 
 Other comprehensive loss
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 ( 3,589 
 ) 
 
 ( 3,589 
 ) 
 
 Balance, April 30, 2023
 
 376,547,894 
 
 $ 
 377 
 
 $ 
 921,562 
 
 $ 
 22 
 
 $ 
 ( 290,197 
 ) 
 
 $ 
 ( 9,926 
 ) 
 
 $ 
 621,838 
 
 The accompanying notes are an integral part of these condensed consolidated financial statements.

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 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 1: 
 NATURE OF OPERATIONS 
 
 Uranium Energy Corp. was incorporated in the State of Nevada on May 16, 2003. Uranium Energy Corp. and its subsidiary companies and a controlled partnership (collectively, the “Company” or “we”) are engaged in uranium and titanium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates and titanium minerals, on projects located in the United States, Canada and the Republic of Paraguay.

 As at April 30, 2024 , we had working capital (current assets less current liabilities) of $ 141,162 including cash and cash equivalents of $ 87,726 and purchased uranium inventories of $ 63,019 . We believe our existing cash resources and, if necessary, cash generated from the sale of the Company’s uranium inventories, will provide sufficient funds to carry out our planned operations for 12 months from the date that these interim condensed consolidated financial statements are issued. Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to achieve consistent positive cash flow from the sale of our uranium inventories and to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial.

 Historically, we have been reliant primarily on equity financings from the sale of our common stock and on debt financings in order to fund our operations, and this reliance is expected to continue for the foreseeable future. Our continued operations, including the recoverability of the carrying values of our assets, are dependent ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations.

 NOTE 2: 
 SUMMARY OF SIGNIFICANT POLICIES 
 
 Basis of Presentation 

 The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and are presented in U.S. dollars. Accordingly, they do not include all of the information and footnotes required under U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10 -K for the year ended July 31, 2023 (“Fiscal 2023 ”). In the opinion of management, all adjustments of a normal recurring nature and considered necessary for a fair presentation have been made. Operating results for the nine months ended April 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending July 31, 2024 (“Fiscal 2024 ”).

 Exploration Stage 

 We have established the existence of mineralized materials for certain uranium projects, including our Palangana Mine, Christensen Ranch Mine (collectively, the “ISR Mines”) and our Roughrider and Christie Lake Projects. We have not established proven or probable reserves, as defined by the United States Securities and Exchange Commission (“SEC”) subpart 1300 of Regulation S-K (“S-K 1300” ), through the completion of a “final” or “bankable” feasibility study for any of the uranium projects we operate, including our ISR Mines. Furthermore, we have no present plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing in-situ recovery (“ISR”) mining, such as our ISR Mines. As a result, and despite the fact that we commenced extraction of mineralized materials at our ISR Mines, we remain an Exploration Stage issuer, as defined by the SEC, and will continue to remain as an Exploration Stage issuer until such time proven or probable reserves have been established.

 Since we commenced extraction of mineralized materials at our ISR Mines without having established proven or probable reserves, any mineralized materials established or extracted from our ISR Mines should not in any way be associated with having established or produced from proven or probable reserves.

 11 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 In accordance with U.S. GAAP, expenditures relating to the acquisition of mineral rights are initially capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time as we exit the Exploration Stage by establishing proven or probable reserves. Expenditures relating to exploration activities, such as drill programs to establish mineralized materials, are expensed as incurred. Expenditures relating to pre-extraction activities, such as the construction of mine wellfields, ion exchange facilities and disposal wells, are expensed as incurred until such time that proven or probable reserves are established for that project, after which expenditures relating to mine development activities for that particular project are capitalized as incurred.

 Companies in the Production Stage, as defined by the SEC, having 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. We are in the Exploration Stage which has resulted in our Company reporting larger losses than if it had been in the Production Stage due to the expensing, instead of the capitalization of expenditures relating to ongoing mine development activities. Additionally, there would be no corresponding depletion allocated to future reporting periods of our Company since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if we had been in the Production Stage. Any capitalized costs, such as expenditures relating to the acquisition of mineral rights, are depleted over the estimated extraction life using the straight-line method when the underlying property is converted to the Production Stage. As a result, our consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage.

 Accounting Pronouncements Not Yet Adopted 

 In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023 - 07, Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures. This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under this ASU are also required for public entities with a single reportable segment. This ASU is effective for the Company’s Annual Report on Form 10 -K for the fiscal year ended July 31, 2025, and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

 In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. This ASU expands public entities’ income tax disclosures by requiring disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU will be effective for fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures

 In March 2024, the FASB issued ASU 2024 - 02, Codification Improvements - Amendments to Remove References to the Concepts Statements. This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The effort facilitates Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance, and other minor improvements. While the amendments are not expected to result in significant changes for most entities, the FASB provided transition guidance since some entities could be affected. This ASU will be effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.
 
 NOTE 3: 
 INVENTORIES 
 
 As at April 30, 2024 , we held 1,166,000 ( July 31, 2023 : 171,000 ) pounds of purchased uranium concentrate inventory. Costs of inventories consist of the following:

 April 30, 2024 
 July 31, 2023 
 
 Material and supplies
 $ 190 $ 228 

 Uranium concentrates from extraction
 178 178 

 Purchased uranium inventories
 63,019 5,801 

 $ 63,387 $ 6,207 

 As of April 30, 2024 , our uranium inventory purchase commitments for the next five fiscal years are as the follows:

 Purchase Commitments 
 
 in Pounds 
 Purchase Price 
 
 Fiscal 2024
 300,000 $ 12,355 

 Fiscal 2025
 600,000 23,120 

 Fiscal 2026
 100,000 3,620 

 Total 
 1,000,000 $ 39,095 

 12 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 4: 
 MINERAL RIGHTS AND PROPERTIES 
 
 Mineral Rights 

 As at April 30, 2024 , we own mineral rights in the States of Arizona, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium or titanium. As of April 30, 2024 , annual maintenance payments of approximately $ 4,818 will be required to maintain these mineral rights.

 As at April 30, 2024 , the carrying value of our mineral rights and properties were as follows:

 Costs
 United States 
 Canada 
 Paraguay 
 Total 
 
 Balance, July 31, 2023
 $ 172,440 $ 384,607 $ 15,014 $ 572,061 

 Additions
 50 1,340 - 1,390 

 Foreign exchange difference
 - ( 8,520 ) - ( 8,520 ) 

 Balance, April 30, 2024
 172,490 377,427 15,014 564,931 

 Accumulated Amortization and Impairment
 United States 
 Canada 
 Paraguay 
 Total 
 
 Balance, July 31, 2023
 ( 6,389 ) ( 112 ) - ( 6,501 ) 

 Foreign exchange difference
 - 6 - 6 

 Balance, April 30, 2024
 ( 6,389 ) ( 106 ) - ( 6,495 ) 

 Carrying Value
 
 Balance, July 31, 2023 
 $ 166,051 $ 384,495 $ 15,014 $ 565,560 

 Balance, April 30, 2024 
 $ 166,101 $ 377,321 $ 15,014 $ 558,436 

 NOTE 5: 
 
 PROPERTY, PLANT AND EQUIPMENT 
 
 Property, plant and equipment consists of the following:

 April 30, 2024 
 
 July 31, 2023 
 
 Cost 
 
 Accumulated 
 
 Net Book 
 
 Cost 
 
 Accumulated 
 
 Net Book 
 
 Depreciation 
 
 Value 
 
 Depreciation 
 
 Value 
 
 Plant and Processing Facilities
 
 $ 
 19,347 
 
 $ 
 ( 2,528 
 ) 
 
 $ 
 16,819 
 
 $ 
 19,145 
 
 $ 
 ( 1,998 
 ) 
 
 $ 
 17,147 
 
 Mining Equipment
 
 3,499 
 
 ( 2,521 
 ) 
 
 978 
 
 2,915 
 
 ( 2,478 
 ) 
 
 437 
 
 Logging Equipment and Vehicles
 
 2,917 
 
 ( 2,147 
 ) 
 
 770 
 
 2,799 
 
 ( 1,989 
 ) 
 
 810 
 
 Computer Equipment
 
 300 
 
 ( 283 
 ) 
 
 17 
 
 306 
 
 ( 280 
 ) 
 
 26 
 
 Furniture and Fixtures
 
 243 
 
 ( 187 
 ) 
 
 56 
 
 198 
 
 ( 180 
 ) 
 
 18 
 
 Buildings
 
 338 
 
 ( 99 
 ) 
 
 239 
 
 297 
 
 ( 87 
 ) 
 
 210 
 
 Land
 
 1,080 
 
 - 
 
 1,080 
 
 1,080 
 
 - 
 
 1,080 
 
 $ 
 27,724 
 
 $ 
 ( 7,765 
 ) 
 
 $ 
 19,959 
 
 $ 
 26,740 
 
 $ 
 ( 7,012 
 ) 
 
 $ 
 19,728 
 
 13 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 6: RESTRICTED CASH 
 
 Restricted cash includes cash and cash equivalents and money market funds as collateral for various bonds posted in favor of applicable state regulatory agencies in Arizona, Texas and Wyoming, and for estimated reclamation costs associated with our plants, processing facilities and various projects. Restricted cash will be released upon completion of reclamation of a mineral property or restructuring of a surety and collateral arrangement.

 Restricted cash consisted of the following:

 April 30, 2024 
 July 31, 2023
 
 Balance, beginning of year
 $
 7,251 
 $
 7,251 
 
 Balance, end of year
 $
 7,251 
 $
 7,251 
 
 Cash, cash equivalents and restricted cash are included in the following accounts:

 April 30, 2024 
 July 31, 2023
 
 Cash and cash equivalents $
 87,726 
 $
 45,614 

 Restricted cash 7,251 7,251 

 Total cash, cash equivalents and restricted cash
 $
 94,977 
 $
 52,865 

 Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and restricted cash. These assets include Canadian dollar and U.S. dollar denominated certificates of deposit, money market accounts and demand deposits. These instruments are maintained at financial institutions in Canada and the U.S. The maximum credit risk of these assets is the carrying amount less amount covered by the Canada Deposit Insurance Corporation, the Securities Investor Protection Corporation or the U.S. Federal Deposit Insurance Corporation, should the financial institutions with which these amounts are invested be rendered insolvent. As of April 30, 2024, approximately $ 73.6 million of our cash equivalents is held in a single financial institution at one of the largest banks in Canada and subject to concentration risk. The Company does not consider any of its financial assets to be impaired as of April 30, 2024 .

 14 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 7: 
 EQUITY-ACCOUNTED INVESTMENTS 
 
 During the nine months ended April 30, 2024 , we participated in equity financings and acquired an additional 1,930,750 common shares of Uranium Royalty Corp. (“URC”) at a price of $ 2.94 per share for total consideration of $ 5,676 and an additional 1,047,614 common shares of URC at a price of $ 3.40 per share for total consideration of $ 3,562 .

 As at April 30, 2024 , we owned 17,978,364 shares of URC, representing a 14.9 % ( July 31, 2023 : 14.9 %) interest in URC. In addition, two of our officers are members of URC’s board of directors. Furthermore, one of these officers also holds an executive position within URC. As a consequence, our ability to exercise significant influence over URC’s operating and financing policies continued to exist during the three and nine months ended April 30, 2024 . Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 14.9 % to 13.2 %. URC is a public company listed on the Toronto Stock Exchange with the trading symbol “URC” and on NASDAQ with the trading symbol “UROY”. As at April 30, 2024 , the fair value of our investment in URC was approximately $ 41.2 million ( July 31, 2023 : $ 34.2 million) and the carrying amount of URC was $ 38.7 million ( July 31, 2023 : $ 24.6 million).

 As at April 30, 2024 , we owned 50 % of the outstanding shares of JCU (Canada) Exploration Company Limited (“JCU”) acquired through our acquisition of UEX Corporation completed on August 19, 2022 ( the “UEX Acquisition”). JCU is a private Canadian company engaged in the exploration and development of uranium assets in Canada. The Company’s 50 % interest in JCU is a joint venture, which is accounted for using the equity method.

 We incurred $ 11 and $ 54 in exploration expenditures on behalf of JCU for the three and nine months ended April 30, 2024 . As at April 30, 2024 , the amount receivable from JCU totaled $ 3 ( July 31, 2023 : $ 201 ).

 During the nine months ended April 30, 2024 , the changes in carrying value of our equity-accounted investments are summarized as follows:

 Balance, July 31, 2023
 $ 48,110 

 Addition in URC
 9,238 

 Capital contribution to JCU
 2,388 

 Share of income (loss) from URC and JCU
 1,325 

 Gain on dilution of ownership interest in URC
 3,633 

 Foreign exchange difference
 ( 2,146 ) 

 Balance, April 30, 2024 
 $ 62,548 

 For the three and nine months ended April 30, 2024 and 2023 , income (loss) from our equity-accounted investments consisted of the following:

 Three Months Ended April 30, 
 Nine Months Ended April 30, 
 
 2024 
 2023 
 2024 
 2023 
 
 Share of income (loss)
 $ 104 $ ( 908 ) $ 1,325 $ ( 1,609 ) 

 Gain on dilution of ownership interest
 3,202 8 3,633 624 

 Total
 $ 3,306 $ ( 900 ) $ 4,958 $ ( 985 ) 

 15 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 8: 
 
 INVESTMENTS IN EQUITY SECURITIES 
 
 During the nine months ended April 30, 2024 , the changes in our investments in equity securities are summarized as follows:

 Balance, July 31, 2023
 $ 38,656 

 Dispositions
 ( 3,008 ) 

 Additions
 12,115 

 Gain on revaluation of equity securities
 23,585 

 Foreign exchange difference
 ( 5 ) 

 Balance, April 30, 2024 
 $ 71,343 

 The cumulative revaluation adjustment since acquisition of the equity securities held as at April 30, 2024 is a gain of $ 8,555 .

 NOTE 9: 
 ASSET RETIREMENT OBLIGATIONS 
 
 Asset retirement obligations (“ARO”s) relate to future remediation and decommissioning activities for our plants, processing facilities and various projects, and are summarized as follows:

 Balance, July 31, 2023
 $ 18,670 

 Accretion
 737 

 Liabilities settled in cash
 ( 33 ) 

 Balance, April 30, 2024 
 19,374 

 Asset retirement obligations, current
 1,481 

 Asset retirement obligations, non-current
 $ 17,893 

 The estimated amounts and timing of cash flows and assumptions used for ARO estimates are as follows:

 April 30, 2024 
 July 31, 2023 
 
 Undiscounted amount of estimated cash flows
 $ 29,030 $ 29,064 

 Payable in years
 1 to 23 1 to 23 

 Inflation rate
 1.56 % to 5.32 % 1.56 % to 5.32 % 

 Discount rate
 3.72 % to 6.35 % 3.72 % to 6.35 % 

 Our undiscounted amounts of estimated cash flows for the next five fiscal years and beyond are as follows:

 Fiscal 2024
 $ 1,481 

 Fiscal 2025
 1,472 

 Fiscal 2026
 2,489 

 Fiscal 2027
 2,509 

 Fiscal 2028
 1,990 

 Remaining balance
 19,089 

 $ 29,030 

 16 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 10: 
 DERIVATIVE LIABILITIES 
 
 On August 19, 2022, the Company issued replacement warrants (each, a “Replacement Warrant”) in connection with the UEX Acquisition. The Replacement Warrants are accounted for as derivative liabilities as the exercise prices of the Replacement Warrants are denominated in Canadian dollars which differs from our functional currency.

 As at April 30, 2024 , the fair value of the Replacement Warrants was estimated using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

 Exercise Price in U.S. dollars
 2.45 5 to 3.37 37
 
 Exercise Price in Canadian dollars
 CA$3.22 to CA$4.44 
 
 Expected Risk Free Interest Rate
 5.38 % 

 Expected Volatility
 51.23 % 

 Expected Life in Years
 0.36 

 Expected Dividend Yield
 0 % 

 The movement in derivative liabilities during the period is as follows:

 Balance, July 31, 2023
 $ 4,313 

 Exercise of Replacement Warrants
 ( 6,137 ) 

 Change in fair value during the period
 9,892 

 Balance, April 30, 2024 
 $ 8,068 

 As at April 30, 2024, the number of Replacement Warrants outstanding was 2,222,298 with an expiry date of September 7, 2024 ( refer to Note 11 ).

 NOTE 11: 
 CAPITAL STOCK 
 
 Equity Financing 

 On May 17, 2021, we filed a Form S- 3 shelf registration statement under the United States Securities Act of 1933, as amended (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. 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.

 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 2021 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 an additional $ 100 million for a total of $ 200 million through the 2021 ATM Managers selected by us (the “November 2021 ATM Offering”; and, collectively, with the May 2021 ATM Offering, the “2021 ATM Offering”).

 On November 16, 2022, we filed a Form S- 3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for and units which include common stock, debt securities, warrants or any combination thereof (the “2022 Shelf”), which included an at-the-market offering agreement prospectus (the “2022 ATM Offering”; and, collectively, with the 2021 ATM Offering, the “ATM Offerings”) covering the offering, issuance and sale of up to a maximum offering of $ 300 million under the 2022 Shelf.

 17 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 On November 16, 2022, we also entered into an at-the-market offering agreement (the “2022 ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the “2022 ATM Managers”) as set forth in the 2022 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 $ 300 million through the 2022 ATM Managers selected by us.

 During the three and nine months ended April 30, 2024 , we issued 3,396,370 and 24,584,399 shares of the Company’s common stock under the ATM Offerings for net cash proceeds of $ 25,542 and $ 155,050 , respectively.

 Subsequent to April 30, 2024 , we issued a further 1,791,300 shares of the Company’s common stock under our ATM Offerings for net cash proceeds of $ 12,824 .

 Share Purchase Warrants 

 A continuity schedule of our outstanding share purchase warrants for the three and nine months ended April 30, 2024 , is as follows:

 Number of 
 Weighted Average 
 
 Warrants 
 Exercise Price 
 
 Balance, July 31, 2023
 3,857,030 $ 3.31 

 Exercised
 ( 1,452,914 ) 3.20 

 Balance, April 30, 2024 
 2,404,116 $ 3.38 

 A summary of our share purchase warrants outstanding and exercisable as of April 30, 2024 , is as follows:

 Number of 
 Weighted Average Remaining 
 
 Weighted Average 
 Warrants 
 Contractual 
 
 Exercise Price 
 Outstanding 
 Life (Years) 
 Expiry Date 
 
 $ 3.32 2,222,298 0.36 September 7, 2024 
 
 4.13 181,818 1.93 April 5, 2026 
 
 $ 3.38 2,404,116 0.48 

 During the three and nine months ended April 30, 2024 , we received cash proceeds of $ 3,771 and $ 4,508 , respectively, from the exercise of share purchase warrants.

 Subsequent to April 30, 2024 , 39,393 warrants with an expiry date of September 7, 2024 were exercised and proceeds of $ 93 were received. 

 18 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 12: 
 STOCK-BASED COMPENSATION 
 
 Stock Options 

 A continuity schedule of our outstanding stock options for the three and nine months ended April 30, 2024 , is as follows:

 Number of Stock 
 Weighted Average 
 
 Options 
 Exercise Price 
 
 Balance, July 31, 2023
 8,326,983 $ 1.92 

 Granted
 17,500 5.04 

 Exercised
 ( 608,182 ) 1.69 

 Cancelled/Forfeited
 ( 191,259 ) 1.59 

 Expired
 ( 27,000 ) 3.69 

 Balance, October 31, 2023
 7,518,042 1.94 

 Granted
 10,000 7.63 

 Exercised
 ( 878,503 ) 1.45 

 Balance, January 31, 2024
 6,649,539 2.01 

 Granted
 40,143 6.70 

 Exercised
 ( 406,411 ) 1.61 

 Cancelled/Forfeited
 ( 8,600 ) 3.45 

 Expired
 ( 25,000 ) 1.44 

 Balance, April 30, 2024 
 6,249,671 2.07 

 The table below sets forth the number of shares issued and cash received upon exercise of our stock options:

 Three Months Ended April 30, 
 Nine Months Ended April 30, 
 
 2024 
 2023 
 2024 
 2023 
 
 Number of Options Exercised on Cash Basis
 202,437 - 492,112 138,537 

 Number of Options Exercised on Forfeiture Basis
 203,974 337,500 1,400,984 2,727,295 

 Total Number of Options Exercised
 406,411 337,500 1,893,096 2,865,832 

 Number of Shares Issued on Cash Exercise
 202,437 - 492,112 138,537 

 Number of Shares Issued on Forfeiture Basis
 142,640 204,693 968,825 1,565,059 

 Total Number of Shares Issued Upon Exercise of Options
 345,077 204,693 1,460,937 1,703,596 

 Cash Received from Exercise of Stock Options
 $ 281 $ - $ 681 $ 206 

 Total Intrinsic Value of Options Exercised
 $ 2,431 $ 858 $ 9,022 $ 6,834 

 19 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 A continuity schedule of our outstanding unvested stock options as of April 30, 2024 , and the changes during the period, is as follows:

 Number of Unvested Stock Options 
 Weighted Average Grant-Date Fair Value 
 
 Balance, July 31, 2023
 1,803,265 $ 2.28 

 Granted
 17,500 3.36 

 Cancelled/Forfeited
 ( 12,300 ) 2.37 

 Vested
 ( 133,062 ) 2.18 

 Balance, October 31, 2023
 1,675,403 2.29 

 Granted
 10,000 5.05 

 Vested
 ( 429,513 ) 2.39 

 Balance, January 31, 2024
 1,255,890 2.28 

 Granted
 40,143 4.45 

 Cancelled/Forfeited
 ( 8,600 ) 2.27 

 Vested
 ( 29,687 ) 2.29 

 Balance, April 30, 2024 
 1,257,746 2.35 

 For the nine months ended April 30, 2024 , the fair value of the stock options granted was estimated using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

 Exercise Price
 4.72 2 to 7.63 63
 
 Expected Risk Free Interest Rate
 3.99 % to 4.67 %
 
 Expected Volatility
 79.30 % to 79.57 %
 
 Expected Life in Years
 5 
 
 Expected Dividend Yield
 0.00 %
 
 As at April 30, 2024 , the aggregate intrinsic value of all of our outstanding stock options was estimated at $ 29,252 (vested: $ 25,374 and unvested: $ 3,878 ). As at April 30, 2024 , our unrecognized compensation cost related to unvested stock options was $ 1,193 , which is expected to be recognized over 0.98 years.

 A summary of our stock options outstanding and exercisable as of April 30, 2024 , is as follows:

 Options Outstanding 
 Options Exercisable 
 
 Weighted 
 Weighted 
 
 Average 
 Average 
 
 Range of 
 Weighted 
 Remaining 
 Weighted 
 Remaining 
 
 Exercise 
 Outstanding at 
 Average 
 Contractual 
 Exercisable at 
 Average 
 Contractual 
 
 Prices 
 April 30, 2024 
 Exercise Price 
 Term (Years) 
 April 30, 2024 
 Exercise Price 
 Term (Years) 
 
 $0.91 to $0.99
 2,140,500 $ 0.92 5.83 2,140,500 $ 0.92 5.83 

 $1.00 to $1.99
 1,325,000 1.10 6.21 1,325,000 1.10 6.21 

 $2.00 to $2.99
 537,149 2.26 7.18 537,149 2.26 7.18 

 $3.00 to $3.99
 2,176,879 3.61 8.43 982,401 3.71 8.02 

 $4.00 to $4.99
 7,500 4.56 9.06 2,500 4.48 8.92 

 $5.00 to $5.99
 12,500 5.16 9.42 3,125 5.16 9.42 

 $6.00 to $6.99
 40,143 6.70 9.89 - 

 $7.00 to $7.63
 10,000 7.63 9.73 1,250 7.63 9.73 

 6,249,671 $ 2.07 6.98 4,991,925 $ 1.67 6.51 

 20 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 Restricted Stock Units 

 A summary of our outstanding and unvested restricted stock units (“RSU”s) as of April 30, 2024 , is as follows:

 Number of 
 
 Restricted Stock 
 Grant Date 
 Remaining Life 
 Aggregate 
 
 Grant Date 
 Units 
 Fair Value 
 (Years) 
 Intrinsic Value 
 
 July 21, 2021
 135,875 2.15 0.31 917 

 May 1, 2022
 39,216 4.25 1.09 265 

 July 29, 2022
 184,023 3.98 1.33 1,242 

 July 31, 2023
 620,386 3.32 2.34 4,188 

 January 2, 2024
 1,166 6.44 2.76 8 

 January 22, 2024
 8,919 7.63 0.82 60 

 March 13, 2024
 2,288 6.49 0.95 15 

 April 1, 2024
 20,000 7.07 3.00 135 

 1,011,873 $ 3.44 1.83 $ 6,830 

 During the three and nine months ended April 30, 2024 , our stock-based compensation related to RSUs was $ 453 and $ 1,326 ( three and nine months ended April 30, 2023 : $ 283 and $ 869 ), respectively. As at April 30, 2024 , our unrecognized compensation costs related to unvested RSUs totaled $ 1,562 , which is expected to be recognized over a period of approximately 1.46 years.

 Performance Based Restricted Stock Units 

 During the three and nine months ended April 30, 2024 , our stock-based compensation related to the amortization of target performance based restricted stock units (“PRSU”s) totaled $ 176 and $ 529 ( three and nine months ended April 30, 2023 : $ 99 and $ 298 ), respectively. As at April 30, 2024 , our unrecognized compensation costs relating to unvested PRSUs totaled $ 978 , which is expected to be recognized over a period of approximately 1.93 years.

 Stock-Based Compensation 

 A summary of our stock-based compensation expense as of April 30, 2024 , is as follows:

 Three Months Ended 
 Nine Months Ended 
 
 April 30, 
 April 30, 
 
 2024 
 2023 
 2024 
 2023 
 
 Stock-Based Compensation for Consultants 
 
 Common stock issued to consultants
 $ - $ 107 $ - $ 382 

 Amortization of stock option expenses
 87 95 302 467 

 87 202 302 849 

 Stock-Based Compensation for Management 
 
 Amortization of stock option expenses
 120 95 488 323 

 Amortization of RSU and PRSU expenses
 585 346 1,774 1,053 

 705 441 2,262 1,376 

 Stock-Based Compensation for Employees 
 
 Common stock issued to employees
 - 188 - 675 

 Amortization of stock option expenses
 285 314 1,362 1,441 

 Amortization of RSU expenses
 26 37 61 114 

 311 539 1,423 2,230 

 $ 1,103 $ 1,182 $ 3,987 $ 4,455 

 21 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 13: 
 SALES AND SERVICE REVENUE AND COST OF SALES AND SERVICES 
 
 The table below provides a breakdown of our sales and service revenue and cost of sales and service revenue:

 Three Months Ended April 30, 
 Nine Months Ended April 30, 
 
 2024 
 2023 
 2024 
 2023 
 
 Sales of purchased uranium inventory
 $ - $ 20,095 $ - $ 125,140 

 Revenue from toll processing services
 - 122 224 300 

 Total sales and service revenue
 $ - $ 20,217 $ 224 $ 125,440 

 Cost of purchased uranium inventory
 $ - $ ( 13,896 ) $ - $ ( 90,543 ) 

 Cost of toll processing services
 - ( 102 ) ( 187 ) ( 250 ) 

 Total cost of sales and services
 $ - $ ( 13,998 ) $ ( 187 ) $ ( 90,793 ) 

 The table below provides a breakdown of major customers:

 Three Months Ended April 30, 
 Nine Months Ended April 30, 
 
 2024 
 2023 
 2024 
 2023 
 
 Customer A
 0 % 0 % 0 % 16 % 

 Customer B
 0 % 0 % 0 % 20 % 

 Customer C
 0 % 25 % 0 % 8 % 

 Customer D
 0 % 50 % 0 % 16 % 

 Customer E
 0 % 0 % 0 % 14 % 

 Customer F
 0 % 24 % 0 % 10 % 

 Customer G
 0 % 0 % 0 % 4 % 

 Customer H
 0 % 1 % 100 % 12 % 

 0 % 100 % 100 % 100 % 

 22 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 NOTE 14: 
 
 LOSS PER SHARE 
 
 The following table reconciles the weighted average number of shares used in the calculation of our basic and diluted loss per share:

 Three Months Ended April 30, 
 
 Nine Months Ended April 30, 
 
 Numerator 
 
 2024 
 
 2023 
 
 2024 
 
 2023 
 
 Net Loss for the Period
 
 $ 
 ( 19,677 
 ) 
 
 $ 
 ( 10,960 
 ) 
 
 $ 
 ( 14,106 
 ) 
 
 $ 
 ( 3,824 
 ) 
 
 Denominator 
 
 Basic Weighted Average Number of Shares
 
 404,104,490 
 
 375,759,521 
 
 393,425,716 
 
 360,554,427 
 
 Dilutive Effect of Stock Awards and Warrants
 
 - 
 
 - 
 
 - 
 
 - 
 
 Diluted Weighted Average Number of Shares
 
 404,104,490 
 
 375,759,521 
 
 393,425,716 
 
 360,554,427 
 
 Net Loss Per Share - Basic
 
 $ 
 ( 0.05 
 ) 
 
 $ 
 ( 0.03 
 ) 
 
 $ 
 ( 0.04 
 ) 
 
 $ 
 ( 0.01 
 ) 
 
 Net Loss Per Share - Diluted
 
 $ 
 ( 0.05 
 ) 
 
 $ 
 ( 0.03 
 ) 
 
 $ 
 ( 0.04 
 ) 
 
 $ 
 ( 0.01 
 ) 
 
 NOTE 15: 
 SEGMENTED INFORMATION 
 
 We currently operate in one reportable segment which is focused on uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates.

 The tables below provide a breakdown of the long-term assets by geographic area:

 April 30, 2024 
 
 Balance Sheet Items 
 United States 
 Canada 
 Paraguay 
 Total 
 
 Mineral Rights and Properties 
 $ 166,101 $ 377,321 $ 15,014 $ 558,436 

 Property, Plant and Equipment 
 18,762 824 373 19,959 

 Restricted Cash 
 7,251 - - 7,251 

 Equity-Accounted Investments 
 - 62,548 - 62,548 

 Investment in Equity Securities 
 - 71,343 - 71,343 

 Other Non-Current Assets 
 2,941 316 - 3,257 

 Total Long-Term Assets 
 $ 195,055 $ 512,352 $ 15,387 $ 722,794 

 July 31, 2023 
 
 Balance Sheet Items
 United States 
 Canada 
 Paraguay 
 Total 
 
 Mineral Rights and Properties
 $ 166,051 $ 384,495 $ 15,014 $ 565,560 

 Property, Plant and Equipment
 19,221 145 362 19,728 

 Restricted Cash
 7,251 - - 7,251 

 Equity-Accounted Investment
 - 48,110 - 48,110 

 Investment in Equity Securities
 - 38,656 - 38,656 

 Other Non-Current Assets
 2,965 114 - 3,079 

 Total Long-Term Assets
 $ 195,488 $ 471,520 $ 15,376 $ 682,384 

 23 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 The table below provides a breakdown of our operating results by geographic area. All intercompany transactions have been eliminated.

 Three Months Ended April 30, 2024 
 
 Statement of Operations 
 United States 
 Canada 
 Paraguay 
 Total 
 
 Operating Costs: 
 
 Mineral property expenditures 
 $ 5,767 $ 3,122 $ 182 $ 9,071 

 General and administrative 
 3,021 1,207 ( 9 ) 4,219 

 Depreciation, amortization and accretion 
 521 29 1 551 

 Total operating costs 
 9,309 4,358 174 13,841 

 Loss from operations 
 ( 9,309 ) ( 4,358 ) ( 174 ) ( 13,841 ) 

 Other expenses 
 ( 237 ) ( 7,430 ) - ( 7,667 ) 

 Loss before income taxes 
 $ ( 9,546 ) $ ( 11,788 ) $ ( 174 ) $ ( 21,508 ) 

 Three Months Ended April 30, 2023 
 
 Statement of Operations
 United States 
 Canada 
 Paraguay 
 Total 
 
 Sales and service revenue
 $ 20,217 $ - $ - $ 20,217 

 Cost of sales and services
 ( 13,998 ) - - ( 13,998 ) 

 Gross profit
 6,219 - - 6,219 

 Operating Costs:
 
 Mineral property expenditures
 3,451 1,711 290 5,452 

 General and administrative
 2,680 1,054 11 3,745 

 Depreciation, amortization and accretion
 501 4 1 506 

 Total operating costs
 6,632 2,769 302 9,703 

 Loss from operations
 ( 413 ) ( 2,769 ) ( 302 ) ( 3,484 ) 

 Other (expenses) income
 ( 190 ) ( 7,622 ) 1 ( 7,811 ) 

 Loss before income taxes
 $ ( 603 ) $ ( 10,391 ) $ ( 301 ) $ ( 11,295 ) 

 24 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 Nine Months Ended April 30, 2024 
 
 Statement of Operations 
 United States 
 Canada 
 Paraguay 
 Total 
 
 Sales and service revenue 
 $ 224 $ - $ - $ 224 

 Cost of sales and services 
 ( 187 ) - - ( 187 ) 

 Gross profit 
 37 - - 37 

 Operating Costs: 
 
 Mineral property expenditures 
 13,281 7,563 604 21,448 

 General and administrative 
 10,171 4,107 36 14,314 

 Depreciation, amortization and accretion 
 1,554 63 3 1,620 

 Total operating costs 
 25,006 11,733 643 37,382 

 Loss from operations 
 ( 24,969 ) ( 11,733 ) ( 643 ) ( 37,345 ) 

 Other (expenses) income 
 ( 625 ) 20,223 8 19,606 

 (Loss) income before income taxes 
 $ ( 25,594 ) $ 8,490 $ ( 635 ) $ ( 17,739 ) 

 Nine Months Ended April 30, 2023 
 
 Statement of Operations
 United States 
 Canada 
 Paraguay 
 Total 
 
 Sales and service revenue
 $ 125,440 $ - $ - $ 125,440 

 Cost of sales and services
 ( 90,793 ) - - ( 90,793 ) 

 Gross profit
 34,647 - - 34,647 

 Operating Costs:
 
 Mineral property expenditures
 9,047 3,546 1,057 13,650 

 General and administrative
 10,606 3,647 43 14,296 

 Depreciation, amortization and accretion
 1,486 14 4 1,504 

 Total operating costs
 21,139 7,207 1,104 29,450 

 Income (loss) from operations
 13,508 ( 7,207 ) ( 1,104 ) 5,197 

 Other (expenses) income
 ( 1,147 ) ( 8,655 ) 1 ( 9,801 ) 

 Income (loss) before income taxes
 $ 12,361 $ ( 15,862 ) $ ( 1,103 ) $ ( 4,604 ) 

 25 
 
 Table of Contents 
 
 URANIUM ENERGY CORP.
 
 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 April 30, 2024 
 
 (Unaudited – Expressed in thousands of U.S. dollars unless otherwise stated)
 
 Item 2. Management ’ s Discussion and Analysis of Financial Condition and Results of Operations 

 (Expressed in thousands of U.S. dollars, except per share and per pound amounts)

 The following management ’ s discussion and analysis of the Company ’ s financial condition and results of operations (the “ MD&A ” ) 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-Q Quarterly Report for the nine months ended April 30, 2024, and our Form 10-K Annual Report for Fiscal 2023, including the consolidated financial statements and related notes contained therein. 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 Quarterly Report. Refer to “ Cautionary Note Regarding Forward-looking Statements ” as disclosed in our Form 10-K Annual Report for Fiscal 2023, and Item 1A, Risk Factors, under Part II - Other Information, of this Quarterly Report. 

 Introduction 

 This MD&A is focused on material changes in our financial condition from July 31, 2023, our most recently completed year end, to April 30, 2024, and our results of operations for the three and nine months ended April 30, 2024, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, as contained in our Form 10-K Annual Report for Fiscal 2023.

 Business 

 We are 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, as more fully described in our Form 10-K Annual Report for Fiscal 2023.

 On January 16, 2024, we announced restarting uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. The first extraction is expected during August 2024 and will be funded with existing cash on the Company’s balance sheet.

 Uranium recovered from the Christensen Ranch Mine ISR Project will be processed at our Irigaray central processing plant (“CPP”). The Irigaray CPP is the hub central to our four fully permitted ISR projects located in the Powder River Basin of Wyoming, including our Christensen Ranch Mine, Reno Creek, Moore Ranch and Ludeman projects. An application to increase the licensed capacity of the Irigaray CPP from the 2.5 million pounds U 3 O 8 per year to 4.0 million pounds U 3 O 8 per year was submitted to the Wyoming Department of Environmental Quality in November 2023; and approval is expected later in 2024.

 To enable a faster extraction restart, extensive preparations at the Christensen Ranch Mine wellfields and satellite processing plant were completed in 2023. This included the re-installation of equipment, re-attachment of piping and a variety of electrical testing, repairs and upgrades to the existing facilities. Since that time, additional work has progressed, including the hiring of additional operational personnel, preparation of a detailed wellfield startup plan, final preparations for plant and wellfield operations, and the installation of cased wells in two new wellfield header houses in Mine Unit 10 (Modules 10-7 and 10-8).

 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 four 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”).

 26
 
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 On August 4, 2023, we acquired a portfolio of exploration-stage projects in the Athabasca Basin for CA$1.5 million from Rio Tinto Exploration Canada Inc., a subsidiary of Rio Tinto Inc. With this acquisition, we added an additional 44,444 acres of prospective ground in the Athabasca Basin to our existing portfolio.

 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.

 Our operating and strategic framework is to become a leading low-cost North American focused uranium supplier 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.

 Key Issues 

 With the completion of the acquisition of Uranium One Americas, Inc. in December 2021 (the “U1A Acquisition”), we expanded our footprints in Wyoming with our Wyoming hub-and-spoke operations. The acquisition of UEX in August 2022 and the acquisition of Roughrider Mineral Holdings Inc. in October 2022 further expanded our footprint in Canada and, in particular, the Athabasca Basin in Saskatchewan. 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. Risk Factors herein.

 Our operations are capital intensive, and we will require significant additional financing to continue with our exploration and pre-extraction activities and acquire additional uranium projects. Historically, we have been reliant primarily on equity financings from the sale of our common stock in order to fund our operations. In the last two fiscal years, we have also relied on cash flows generated from the sales of our purchased uranium inventories under our physical uranium program to fund our operations, which resulted in $57.0 million in gross profits. However, we have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Our reliance on equity and debt financings is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or additional joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us. 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 the mineral projects we operate. 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.

 27
 
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 The economic viability of our mining activities, including the expected duration and profitability of our ISR Mines, of any future satellite ISR mines, such as our Burke Hollow, Goliad, Ludeman, Antelope and Charlie Projects, and of our recently acquired traditional uranium mines in the Athabasca Basin in Saskatchewan, Canada, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct a mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in achieving and maintaining profitability and developing positive cash flow.

 As at April 30, 2024, 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.

 Uranium Market Developments 

 The uranium market is currently being driven by a macro demand for more electricity generation and an unprecedented global push to decarbonize electrical grids, among other factors. There is noteworthy demand showing substantial growth is Artificial Intelligence and the electricity needed to power Data Centers. In the U.S. demand from this source, measured by power consumption, is expected to reach 35 GWe by 2030, up from 17 GWe in 2022 (Citi Data Center Demand and Nuclear Power: February 2024). There is a growing realization that the highly reliable, safe, baseload power nuclear energy provides should be a part of any clean energy platform. Governments around the globe are also pursuing strategies to increase energy independence for national security interests that dovetail well with nuclear power as a key component in their energy mix.

 Over the past few years global uranium market fundamentals have improved as the market began a transition from being an inventory driven to a production driven market. The spot market bottomed out in November 2016 at about $17.75 per pound U 3 O 8 , but has since shown appreciation, reaching $107.00 per pound U 3 O 8 on February 2, 2024. During the three and nine months ended April 30, 2024, uranium prices averaged $92.80 and $81.64 per pound U 3 O 8 , respectively. As at April 30, 2024, the uranium price was $90.00 per pound, representing an approximate 67% increase from April 30, 2023 when the price was $53.85 per pound U 3 O 8 . The period from February 2024 through April 2024 was marked by continued volatility as the price fluctuated between $85.00 and $107.00 per pound U 3 O 8 (All price information is sourced from UxC LLC Historical Ux Daily Prices).

 Underinvestment in uranium mining operations over the past decade has been a major factor contributing to a structural deficit between global production and uranium requirements. Reduced production from existing uranium mines has also been a contributing factor with some large producers cutting back and or unable to reach previously planned production levels. In 2024 and 2025 the mid-case gap between production and requirements is projected to be more than 66 million pounds U 3 O 8 , and by 2034 accumulates to a total above 400 million pounds U 3 O 8 (UxC 2024 Q1 Uranium Market Outlook). For context, the U.S. reactor fleet consumes about 45 million pounds U 3 O 8 per year (U.S. Energy Information Administration, June 13, 2023 - Uranium Marketing Annual Report). The current gap is being filled with secondary market sources, including finite inventory that has been declining and is projected to decline further in coming years. Secondary supply is also likely to be further reduced with western enrichers reversing operations from underfeeding to overfeeding that requires more uranium to increase the production of enrichment services. As secondary supplies continue to diminish, and as existing mines deplete resources, new production will be needed to meet existing and future utility demand. The timeline for new mining projects can be 10 years or longer and will require prices high enough to stimulate new mining investments.

 Since 2022, uranium supply has become more complicated due to Russia's invasion of Ukraine with its State Atomic Energy Corporation, Rosatom, being a significant supplier of nuclear fuel around the globe. Economic sanctions, transportation restrictions and recent U.S. legislation banning the importation of Russian nuclear fuel is causing a fundamental change to the nuclear fuel markets. Additionally, the 2023 coup in Niger, and the new government’s demand for the U.S. and France to vacate the country, has underscored jurisdictional risk with that country accounting for about 5% of global uranium production and about 25% of European Union supply in 2022 (World Nuclear Association - Uranium in Niger May 7, 2024 / Reuters – “Russian troops enter base housing US military in Niger, US official says” - May 3, 2024 and “Niger has not banned uranium exports to France and EU” - August 18, 2023). U.S. and European utilities are shifting more focus to security of supply with production from areas of low geopolitical risk.

 On the demand side of the equation, the global nuclear energy industry continues robust growth, with 70 new reactors connected to the grid from 2014 through April of 2024, and with another 59 reactors under construction. So far in 2024, four new reactors have been connected to the grid, and one reactor has been permanently shut down (International Atomic Energy Association Power Reactor Information System - May 28, 2024). Total nuclear generating capacity for the world’s 440 operable reactors as of May 7, 2024 stands at 396 GWe (World Nuclear Association). At COP28 United Nations Climate Change Conference, 22 countries, including the U.S., Canada, France, Japan and the United Kingdom, signed a declaration to triple nuclear energy by 2050, further supporting additional growth for the nuclear industry and uranium demand.

 28
 
 Table of Contents 
 
 In the U.S., H.R. 1042, “The Prohibiting Russian Uranium Imports Act” was signed into law on May 13, 2024, goes into effect on August 11, 2024 and extends through 2040. The legislation bans Russian uranium imports but allows a U.S. Department of Energy (“DOE”) waiver process through 2027 in the event no alternative viable source of low-enriched uranium (“LEU”) is available to: (i) sustain the continued operation of a nuclear reactor or a U.S. nuclear energy company; or (ii) importation of Russian LEU is determined to be in the national interest. In a separate but related action, “The Nuclear Fuel Security Act” (“NFSA”) was enacted as part of the “National Defense Authorization Act” in December of 2023 and was designed to help rebuild the domestic nuclear fuel cycle, including uranium production, conversion and enrichment. The passage of H.R. 1042 unlocks $2.7 billion in funding under the NFSA and will be used by the DOE to acquire LEU and High Assay Low Enriched Uranium (“HALEU”) for advanced reactors. Under this program DOE will acquire LEU and HALEU with priority given to domestic sources of produced uranium, conversion and enrichment. In combination, the passage of these bills will help rebuild and restore a robust domestic fuel cycle in the U.S.

 Additional upside market pressure is also occurring as utilities continue their return to a longer-term contracting cycle to replace expiring contracts. Cumulative uncommitted demand through 2034 totals approximately 926 million pounds U 3 O 8 (UxC Uranium Market Overview Q1 2024). Increasing demand is also evident from financial entities and various producers continuing to purchase significant quantities of drummed uranium inventory, further removing near term supply and adding to the strong fundamentals supporting the uranium market.

 Results of Operations 

 For the three and nine months ended April 30, 2024, we recorded sales and service revenue of $Nil and $224, and realized gross profit of $Nil and $37, respectively, from toll processing services. We did not sell purchased uranium inventory to date in Fiscal 2024. For the three and nine months ended April 30, 2023, we recorded sales and service revenue of $20,217 and $125,440 and realized gross profit of $6,219 and $34,647, respectively, from sales of purchased uranium inventory and toll processing services. 

 For the three and nine months ended April 30, 2024, we recorded a net loss of $19,677 ($0.05 per share) and $14,106 ($0.04 per share), and losses from operations of $13,841 and $37,345, respectively. During the three and nine months ended April 30, 2023, we recorded net loss of $10,960 ($0.03 per share) and $3,824 ($0.01 per share) and loss from operations of $3,484 and income from operations of $5,197, respectively.

 While we remain in a state of operational readiness, uranium extraction expenditures incurred at our ISR Mines, 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.

 We established our physical uranium program to purchase drummed uranium at prevailing spot prices which are below most global industry mining costs in Fiscal 2021 (the “Physical Uranium Program”). As of April 30, 2024, we have 1,000,000 pounds of uranium inventory purchase commitments outstanding for a total purchase price of $39,095. Various deliveries are scheduled to occur from Fiscal 2024 into Fiscal 2026 at a weighted average price of $39.10 per pound of uranium.

 During the three and nine months ended April 30, 2024, as part of our Physical Uranium Program, we purchased 995,000 pounds of uranium concentrates with a total cost of $57,003. As of April 30, 2024, the carrying value of our uranium concentrate inventories was $63,019 (July 31, 2023: $5,801).

 Sales and Service Revenue 

 For the three and nine months ended April 30, 2024, we recorded revenue from toll processing services of $Nil and $224, respectively, which was generated from processing uranium resins.

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

 Three Months Ended April 30, 
 
 Nine Months Ended April 30, 
 
 2024 
 
 2023 
 
 2024 
 
 2023 
 
 Sales of purchased uranium inventory
 
 $ 
 - 
 
 $ 
 20,095 
 
 $ 
 - 
 
 $ 
 125,140 
 
 Revenue from toll processing services
 
 - 
 
 122 
 
 224 
 
 300 
 
 Total sales and service revenue
 
 $ 
 - 
 
 $ 
 20,217 
 
 $ 
 224 
 
 $ 
 125,440 
 
 Cost of purchased uranium inventory
 
 $ 
 - 
 
 $ 
 (13,896 
 ) 
 
 $ 
 - 
 
 $ 
 (90,543 
 ) 
 
 Cost of toll processing services
 
 - 
 
 (102 
 ) 
 
 (187 
 ) 
 
 (250 
 ) 
 
 Total cost of sales and services
 
 $ 
 - 
 
 $ 
 (13,998 
 ) 
 
 $ 
 (187 
 ) 
 
 $ 
 (90,793 
 ) 
 
 Operating Costs 

 Mineral Property Expenditures 

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

 29
 
 Table of Contents 
 
 The following table provides the nature of mineral property expenditures for the periods indicated:

 Three Months Ended April 30, 
 
 Nine Months Ended April 30, 
 
 2024 
 
 2023 
 
 2024 
 
 2023 
 
 Permitting and compliance
 
 $ 
 394 
 
 $ 
 160 
 
 $ 
 1,733 
 
 $ 
 358 
 
 Property maintenance
 
 1,073 
 
 967 
 
 3,020 
 
 2,701 
 
 Exploration
 
 4,668 
 
 3,392 
 
 9,985 
 
 7,544 
 
 Development
 
 1,769 
 
 34 
 
 3,414 
 
 427 
 
 Extraction readiness
 
 1,167 
 
 899 
 
 3,296 
 
 2,620 
 
 Total
 
 $ 
 9,071 
 
 $ 
 5,452 
 
 $ 
 21,448 
 
 $ 
 13,650 
 
 During the three and nine months ended April 30, 2024, exploration expenditures, such as drilling and preliminary economic assessments, were primarily spent on the following projects:

 ●
 
 Burke Hollow Project: $1,586 and $3,675 (April 30, 2023: $904 and $2,147), respectively;
 
 ●
 
 Roughrider Project: $2,358 and $3,616 (April 30, 2023: $219 and $230), respectively; and
 
 ●
 
 Christensen Ranch Mine: $170 and $1,030 (April 30, 2023: $160 and $207), respectively.
 
 During the three and nine months ended April 30, 2024, extraction readiness expenditures were primarily spent on the following projects:

 ●
 
 Christensen Ranch Mine: $557 and $1,521 (April 30, 2023: $462 and $1,305), respectively; and
 
 ●
 
 Palangana Mine: $297 and $1,026 (April 30, 2023: $181 and $691), respectively.
 
 During the three and nine months ended April 30, 2024, property maintenance expenditures were primarily spent on the following projects:

 ●
 
 Buke Hollow Project: $155 and $527 (April 30, 2023: $203 and $558), respectively;
 
 ●
 
 Reno Creek Project: $282 and $481 (April 30, 2023: $99 and $299), respectively;
 
 ●
 
 Christensen Ranch Mine: $90 and $278 (April 30, 2023: $103 and $246), respectively;
 
 ●
 
 Ludeman Project: $83 and $260 (April 30, 2023: $83 and $244), respectively; and
 
 ●
 
 Allemand Ross Project: $94 and $303 (April 30, 2023: $91 and $268), respectively.
 
 General and Administrative 

 During the three and nine months ended April 30, 2024, general and administrative expenses (“G&A”) totaled $4,219 and $14,314, respectively, compared to $3,745 and $14,296 for the three and nine months ended April 30, 2023. G&A expenses were comprised of the following:

 Three Months Ended April 30, 
 
 Nine Months Ended April 30, 
 
 2024 
 
 2023 
 
 2024 
 
 2023 
 
 Salaries and management fees
 
 $ 
 1,441 
 
 $ 
 739 
 
 $ 
 4,236 
 
 $ 
 2,942 
 
 Office, IR, communication, insurance and travel
 
 1,161 
 
 1,178 
 
 3,783 
 
 5,220 
 
 Foreign exchange loss
 
 (32 
 ) 
 
 37 
 
 6 
 
 64 
 
 Professional fees
 
 545 
 
 640 
 
 2,301 
 
 1,714 
 
 Sub-total
 
 3,115 
 
 2,594 
 
 10,326 
 
 9,940 
 
 Stock-based compensation
 
 1,104 
 
 1,151 
 
 3,988 
 
 4,356 
 
 Total general and administrative expenses
 
 $ 
 4,219 
 
 $ 
 3,745 
 
 $ 
 14,314 
 
 $ 
 14,296 
 
 30
 
 Table of Contents 
 
 The following summary provides a discussion of our major expense categories including analyses of the factors that caused significant variances compared to the same period last year:
 
 ●
 
 for the three and nine months ended April 30, 2024, office, insurance, filing and listing fees, investor relations, corporate development and travel expenses totaled $1,161 and $3,783, respectively, which decreased compared to $1,178 and $5,220 for the three and nine months ended April 30, 2023, respectively, which was primarily the result of decreases in investor relations and corporate development expenses;
 
 ●
 
 for the three and nine months ended April 30, 2024, professional fees totaled $545 and $2,301, respectively, which increased compared to $640 and $1,714 for the three and nine months ended April 30, 2023, respectively. Professional fees are comprised primarily of legal services related to transactional activities, regulatory compliance and for audit, accounting and tax compliance services. The overall increasing trend in professional fees is due to the growth in business activities and the expansion of our operations; and
 
 ●
 
 for the three and nine months ended April 30, 2024, salaries, wages and management fees totaled $1,441 and $4,236, respectively, which increased compared to $739 and $2,942 for the three and nine months ended April 30, 2023, respectively, which was primarily the result of an increase in personnel and corporate-wide salary increases to adjust for inflation.
 
 Income (Loss) from Equity-Accounted Investments 

 Income (loss) from equity-accounted investments was comprised of the following:

 Three Months Ended April 30, 
 
 Nine Months Ended April 30, 
 
 2024 
 
 2023
 
 2024 
 
 2023
 
 Share of income (loss)
 
 $ 
 104 
 
 $ 
 (908 
 ) 
 
 $ 
 1,325 
 
 $ 
 (1,609 
 ) 
 
 Gain on dilution of ownership interest
 
 3,202 
 
 8 
 
 3,633 
 
 624 
 
 Total
 
 $ 
 3,306 
 
 $ 
 (900 
 ) 
 
 $ 
 4,958 
 
 $ 
 (985 
 ) 
 
 During the three and nine months ended April 30, 2024 and 2023, we recorded a gain on dilution of ownership interest in URC as a result of URC issuing more shares from its equity financing and exercises of warrants and/or stock options. On October 17, 2023 and February 9, 2024, we participated in URC’s equity financings, which increased our ownership in URC from 15,000,000 shares to 16,930,750 shares and to 17,978,364 shares, respectively. As at April 30, 2024, we had a 14.9% of equity interest in URC compared to 14.9% as at July 31, 2023.

 During the three and nine months ended April 30, 2024, we recorded a share of URC’s income of $520 and $2,397, respectively. During the three and nine months ended April 30, 2024, we also recorded a share of JCU’s losses of $416 and $1,072, respectively.

 Gain (Loss) on Revaluation of Equity Securities 

 As at April 30, 2024, our investments in certain equity securities were revalued using the market values at period end, which resulted in an unrealized loss of $13,804 and gain of $23,585 on revaluation of equity securities, respectively, for the three and nine months ended April 30, 2024. 

 Gain (Loss) on Revaluation of Derivative Liabilities 

 In connection with the UEX Acquisition, we issued Replacement Warrants, which are accounted for as derivative liabilities as the exercise prices of the UEX warrants are denominated in Canadian dollars which differs from the functional currency of the Company. As at April 30, 2024, the Replacement Warrants were revalued, which resulted in a gain of $2,071 and a loss of $9,892, respectively, for the three and nine months ended April 30, 2024. Changes in fair value of derivative liabilities were primarily due to changes in our share price. During the three and nine months ended April 30, 2023, we recorded a gain on revaluation of derivative liabilities of $5,550 and $4,651, respectively.

 31
 
 Table of Contents 
 
 Other income (expenses) 

 The following summary provides a discussion of the major categories of other income (expenses) including analyses of the factors that caused significant variances compared to the same period last year:

 ●
 
 during the three and nine months ended April 30, 2024, interest income totaled $992 and $1,558, respectively, compared to $119 and $203, respectively, for the three and nine months ended April 30, 2023. The interest earned resulted from cash proceeds received from our ATM Offerings in 2024, which were invested in short-term GIC deposits; and
 
 ●
 
 during the three and nine months ended April 30, 2023, we entered into amendment agreements to amend certain uranium sales and purchase agreements with third parties. As a result, we paid a net amount of $585 for the differences between the gross purchase price and gross sales prices of the uranium, which were recorded as other expenses on our condensed consolidated financial statements.
 
 Summary of Quarterly Results 

 For the Quarters Ended 
 
 April 30, 2024 
 
 January 31, 2024
 
 October 31, 2023
 
 July 31, 2023
 
 Sales and service revenue
 
 $ 
 - 
 
 $ 
 116 
 
 $ 
 108 
 
 $ 
 38,949 
 
 Gross profit
 
 - 
 
 19 
 
 18 
 
 15,023 
 
 Net income (loss)
 
 (19,677 
 ) 
 
 2,250 
 
 3,321 
 
 517 
 
 Total comprehensive income (loss)
 
 (25,527 
 ) 
 
 9,982 
 
 (7,728 
 ) 
 
 6,835 
 
 Basic and diluted income (loss) per share
 
 (0.05 
 ) 
 
 0.01 
 
 0.01 
 
 - 
 
 Total assets
 
 878,268 
 
 878,878 
 
 798,129 
 
 737,589 
 
 For the Quarters Ended
 
 April 30, 2023
 
 January 31, 2023
 
 October 31, 2022
 
 July 31, 2022
 
 Sales and service revenue
 
 $ 
 20,217 
 
 $ 
 47,931 
 
 $ 
 57,292 
 
 $ 
 78 
 
 Gross profit
 
 6,219 
 
 14,570 
 
 13,858 
 
 13 
 
 Net income (loss)
 
 (10,960 
 ) 
 
 10,892 
 
 (3,756 
 ) 
 
 5,455 
 
 Total comprehensive income (loss)
 
 (14,549 
 ) 
 
 15,509 
 
 (14,524 
 ) 
 
 5,390 
 
 Basic and diluted income (loss) per share
 
 (0.03 
 ) 
 
 0.03 
 
 (0.01 
 ) 
 
 0.02 
 
 Total assets
 
 722,148 
 
 733,315 
 
 695,487 
 
 354,247 
 
 Liquidity and Capital Resources 

 April 30, 2024 
 
 July 31, 2023
 
 Cash and cash equivalents
 
 $ 
 87,726 
 
 $ 
 45,614 
 
 Current assets
 
 155,474 
 
 55,205 
 
 Current liabilities
 
 14,312 
 
 12,194 
 
 Working capital
 
 141,162 
 
 43,011 
 
 During the nine months ended April 30, 2024, we received net proceeds of $160,239 from our ATM Offerings and from exercises of stock options and share purchase warrants.

 Subsequent to April 30, 2024, we received additional cash proceeds of $12,824 under our ATM Offerings.

 We have a history of operating losses resulting in an accumulated deficit balance since inception. We recorded net losses in Fiscal 2023 and in all prior years, and we had an accumulated deficit balance of $303,786 as at April 30, 2024. Furthermore, we may not achieve and maintain profitability or develop positive cash flow from our operations in the near term. 

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 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. We have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Currently, we also rely on cash flows generated from the sales of our purchased uranium concentrates to fund our operations. Our reliance on equity and debt financings is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control and including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us.

 Our operations are capital intensive and future capital expenditures are expected to be substantial. We will require significant additional financing to fund our operations, including continuing with our exploration and pre-extraction activities and acquiring additional uranium projects. 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.

 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 $4.8 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 changes may include accelerating the pace or broadening the scope of reducing our operations. 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. Specific examples of such factors include, but are not limited to:

 ●
 
 if the market price of uranium weakens;
 
 ●
 
 if the market price of our common stock weakens; and
 
 ●
 
 if a nuclear incident, such as the events that occurred in Japan in March 2011, were to occur, continuing public support of nuclear power as a viable source of electrical generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries.
 
 We believe our existing cash resources and, if necessary, cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations for 12 months from the date that this Quarterly Report is issued. Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to generate cash flow from the sales of our uranium inventories under our Physical Uranium Program and to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial.

 Our long-term success, including the recoverability of the carrying values of our assets and our ability to acquire additional uranium projects and continue with exploration and pre-extraction activities and mining activities on our existing uranium projects, will depend ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations by establishing ore bodies that contain commercially recoverable uranium and to develop these into profitable mining activities.

 Equity Financings 

 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. Wainwright & Co., LLC and certain co-managers (collectively, the 2021 ATM Manager) 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.

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 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 2021 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 an additional $100 million for a total of $200 million through the 2021 ATM Managers selected by us (the November 2021 ATM Offering; and, collectively with the May 2021 ATM Offering, the 2021 ATM Offering).

 On November 16, 2022, we filed a Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for and units which include common stock, debt securities, warrants or any combination thereof (the 2022 Shelf), which included an at-the-market offering agreement prospectus (the 2022 ATM Offering; and, collectively, with the 2021 ATM Offering, the ATM Offerings) covering the offering, issuance and sale of up to a maximum offering of $300 million under the 2022 Shelf.

 On November 16, 2022, we entered into an at-the-market offering agreement (the 2022 ATM Offering Agreement) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the 2022 ATM Managers) as set forth in the 2022 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 $300 million through the 2022 ATM Managers selected by us.

 During the three and nine months ended April 30, 2024, we issued 3,396,370 and 24,584,399 shares of the Company’s common stock under our ATM Offerings for net cash proceeds of $25,543 and $155,050, respectively.

 During the three and nine months ended April 30, 2024, we received cash proceeds totaling $3,771 and $4,508, respectively, from the exercise of share purchase warrants.

 During the three and nine months ended April 30, 2024, we received cash proceeds totaling $281 and $681, respectively, from the exercise of stock options.

 Subsequent to April 30, 2024, we issued a further 1,791,300 shares of the Company’s common stock under our ATM Offerings for net cash proceeds of $12,824.

 Operating Activities 

 During the nine months ended April 30, 2024, net cash used in operating activities was $93,871, of which $57,179 was from the purchases of uranium concentrate inventory. During the nine months ended April 30, 2023, net cash provided by operating activities was $43,778, of which $39,933 was for the change in uranium concentrate inventory. Other significant operating expenditures included mineral property expenditures and G&A expenses. 

 Financing Activities 

 During the nine months ended April 30, 2024, net cash provided by financing activities totaled $159,292, comprised primarily of net proceeds from equity financings. During the nine months ended April 30, 2023, net cash provided by financing activities totaled $64,640, comprised primarily of net proceeds from equity financings. 

 Investing Activities 

 During the nine months ended April 30, 2024, net cash used in investing activities totaled $23,282, comprised of cash used in the acquisition of the Henday, Milliken and Carswell Projects of $1,334, a capital contribution to JCU of $2,388, cash used to purchase an additional interest in URC of $9,238, cash used in investment in equity securities of $12,115, proceeds from sale of equity securities of $3,008 and cash used for investment in mineral properties and the purchase of equipment of $2,557. During the nine months ended April 30, 2023, net cash used in investing activities totaled $123,333, comprised of cash used in the Roughrider Acquisition of $82,117, a capital contribution to JCU of $595, cash used in investment in equity securities of $42,219, cash used for investment in mineral properties and the purchase of equipment of $388 and net cash of $1,984 received from the UEX Acquisition. 

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 Stock Options and Warrants 

 As of April 30, 2024, we had in-the-money stock options outstanding representing 6,249,671 shares at a weighted-average exercise price of $2.07 per share, and in-the-money share purchase warrants outstanding representing 2,404,116 shares at a weighted-average exercise price of $3.38 per share. As of April 30, 2024, outstanding in-the-money stock options and warrants represented a total 8,653,787 shares issuable for gross proceeds of approximately $21.1 million should these stock options and warrants be exercised in full on a cash basis. The exercise of stock options and warrants is at the discretion of their respective holders and, accordingly, there is no assurance that any of the stock options or warrants will be exercised in the future.

 Transactions with Related Parties 

 During the three and nine months ended April 30, 2024, we incurred $11 and $54, respectively, in exploration expenditures on behalf of JCU. As at April 30, 2024, the amount receivable from JCU totaled $3 (July 31, 2023: $201).

 During the three and nine months ended April 30, 2024, we incurred $2 and $27, respectively, and during the three and nine months ended April 30, 2023, we incurred $2 and $84, respectively, in general and administrative costs, paid to Blender Media Inc. (“Blender”), a company controlled by Arash Adnani, a direct family member of our President and Chief Executive Officer, for various services, including information technology, financial subscriptions, corporate branding, media, website design, maintenance and hosting, provided by Blender to the Company. As at April 30, 2024, the amount owing to Blender was $Nil (July 31, 2023: $Nil).

 Material Commitments 

 As at April 30, 2024, significant payment obligations of the Company over the next five years and beyond are as follows:

 Payment Due by Period
 
 Less Than
 
 1-3
 
 3-5
 
 More Than
 
 Contractual Obligations
 
 Total 
 
 1 Year
 
 Years
 
 Years
 
 5 Years
 
 Asset Retirement Obligations
 
 $ 
 29,030 
 
 $ 
 1,481 
 
 $ 
 3,962 
 
 $ 
 4,498 
 
 $ 
 19,089 
 
 Operating Lease Obligations
 
 2,590 
 
 102 
 
 822 
 
 592 
 
 1,074 
 
 Uranium Inventory Purchase Obligations
 
 39,095 
 
 12,355 
 
 26,740 
 
 - 
 
 - 
 
 Total
 
 $ 
 70,715 
 
 $ 
 13,938 
 
 $ 
 31,524 
 
 $ 
 5,090 
 
 $ 
 20,163 
 
 As of April 30, 2024, we were renting or leasing office premises in the States of Texas, Arizona and Wyoming, British Columbia and Saskatchewan, Canada, and Paraguay, for total monthly payments of $34. Office lease agreements for the U.S. and Canada expire between July 2026 and November 2029.

 Commitments for Management Services 

 As at April 30, 2024, we were committed to paying our key executives a total of $1,065 per year for management services.

 Off-Balance Sheet Arrangements 

 We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 Critical Accounting Policies 

 For a complete summary of all of our significant accounting policies refer to Note 2: Summary of Significant Accounting Policies of the Notes to the consolidated financial statements as presented under Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for Fiscal 2023.

 Refer to “Critical Accounting Policies” under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for Fiscal 2023.

 Subsequent Events 

 Subsequent to April 30, 2024, we received additional cash proceeds of $12,824 under our ATM Offerings. In addition, 39,393 warrants with an expiry date of September 7, 2024 were exercised and proceeds of $93 were received.

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 Item 3. Quantitative and Qualitative Disclosures About Market Risk 

 Refer to Item 7A., Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for Fiscal 2023.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.
URANIUM ENERGY CORP 10-Q

Item 1. Financial Statements
