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OTHER (EXPENSE) INCOME, NET

9 Months Ended

Sep. 30, 2024

OTHER (EXPENSE) INCOME, NET

OTHER (EXPENSE) INCOME, NET

8. OTHER (EXPENSE) INCOME, NET

For the three and nine months ended September 30, 2024 and 2023, the Company had the following components within “Other (expense) income, net”.


		For the Three Months Ended						For the Nine Months Ended
		September 30,						September 30,
(thousands of dollars)		2024			2023			2024			2023
Other (expense) income:
Sales of raw material inventory		$	2,064		$	34		$	3,188		$	34
Costs related to sales of raw material inventory			(2,189)			(52)			(3,696)			(52)
Write-down of raw material inventory			(271)			—			(964)			—
Interest income			36			200			227			1,211
Foreign exchange loss			—			(18)			(3)			(45)
Other income			7			5			9			5
Total other (expense) income, net		$	(353)		$	169		$	(1,239)		$	1,153

As part of Westwater’s design optimization of the Kellyton Graphite Plant, the Company determined that while it can utilize its current raw material graphite flake in inventory, a different size of natural graphite flake results in a better yield of CSPG, is more cost effective, and does not negatively impact finished product performance. As a result, the Company has entered into agreements to sell a portion of its raw material inventory. Sales of raw material inventory are recognized upon shipment. Because the Kellyton Graphite Plant is not currently operational and these agreements are not entered into in the Company’s ordinary course of business activities, the Company does not recognize these agreements as revenue under ASC 606. For the three and nine months ended September 30, 2024, the Company recognized sales of raw material inventory of $2.1 million and $3.2 million, respectively, and related offsetting expenses of $2.2 million and $3.7 million, respectively.

During the three and nine months ended September 30, 2024, the Company recognized a write-down of inventory of $0.3 million and $1.0 million, respectively, to recognize the lower of cost or net realizable value related to raw material inventory that is under contract to be sold. For the three and nine months ended September 30, 2023, there were no write-downs of the Company’s inventory. Refer to Note 4 for further details.

For the three and nine months ended September 30, 2024, the Company recognized interest income of less than $0.1 million and $0.2 million, respectively, in our investment account. For the three and nine months ended September 30, 2023, the Company recognized interest income of $0.2 million and $1.2 million, respectively, in our investment account.