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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
SEGMENT REPORTING  
SEGMENT REPORTING

11. SEGMENT REPORTING

The Company has one reporting segment, the “battery-grade graphite business” segment and the Company’s Chief operating decision maker (“CODM”) is the President & Chief Executive Officer. Graphite extraction and processing are regulated by federal and state governments. Compliance with regulations has a material effect on the economics of our operations and the timing of project development. Our primary regulatory costs have been, and are expected to continue to relate to, obtaining licenses and operating permits from federal and state agencies before the commencement of production activities, as well as continuing compliance with licenses and permits once they have been issued.

The current environmental and technical regulatory requirements for the graphite extraction and processing industry are well established, however, the regulatory process can make permitting difficult and timing unpredictable.

U.S. regulations pertaining to graphite extraction and processing may evolve in the U.S., however, at this time we do not anticipate any adverse impact from these regulations that would be unique to our operations.

The battery-grade graphite business segment includes the Kellyton Graphite Plant and the Coosa Graphite Deposit, both at a pre-revenue stage and located in Coosa County, Alabama. Both are anticipated to be used to produce battery-grade natural graphite materials as follows:

Kellyton Graphite Plant:

The Company will process natural graphite concentrate at the Kellyton Graphite Plant through a combination of sizing, shaping, spheroidization and classification. Once completed, the purification is expected to be performed using a proprietary purification process. The process uses a combination of technologies including a caustic bake, acid leach and thermal treatment, a process that allows for a smaller and more sustainable environmental footprint than that of a hydrofluoric acid (“HF”) leaching system, which is widely used by other graphite processing companies. Once the graphite is purified to a minimum graphite carbon content of 99.95%, the Company will coat the spherical graphite to manufacture the advanced graphite products it intends to sell. The purification process developed by Westwater is the subject of a patent application that has been filed in the U.S. Patent and Trademark Office.

Coosa Graphite Deposit:

Westwater currently purchases graphite flake concentrate for the Kellyton Graphite Plant under a supply contract with Syrah Resources Limited. Westwater expects to continue to purchase graphite concentrate from Syrah Resources Limited and/or other sources for the Kellyton Graphite Plant until the Coosa Graphite Deposit is developed and in operation. Westwater believes its current contract with Syrah Resources Limited provides adequate feedstock supply until then. Currently, the Coosa Graphite Deposit is being evaluated and developed for future mining operations, which will require permitting as well. Development of a mine at the Coosa Graphite Deposit, is expected to serve as an in-house source of graphite feedstock and will provide in-house quality assurance and quality control for raw-material inputs.

The accounting policies of the battery-grade graphite business are the same as those described in Note 1, Summary of Significant Accounting Policies, in the Notes to Consolidated Financial Statements.  The CODM assesses performance for the battery-grade graphite business segment and decides how to allocate resources based on operating expenses, as reported on the Consolidated Statement of Operations, compared to forecasted expenses. The CODM intends to continue to use operating expenses to evaluate the segment until the Kellyton Graphite Plant is operational.

The following table summarizes segment assets as of March 31, 2025, and December 31, 2024:

​

​

​

​

​

​

​

​

​

​

March 31,

​

December 31,

(thousands of dollars)

​

2025

    

2024

Assets:

​

​

​

​

​

​

Battery-grade graphite business segment assets

​

$

143,048

​

$

141,470

Corporate and other assets

​

​

4,393

​

​

4,887

Consolidated total assets

​

$

147,441

​

$

146,357

​

Expenditures for battery-grade graphite business segment assets for the three months ended March 31, 2025, were approximately $2.9 million.

The following table summarizes segment profit or loss and significant segment expenses for the three months ended March 31, 2025 and 2024:

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2025

(thousands of dollars)

​

Battery-grade Graphite Segment

​

Corporate and Other

​

Consolidated Statements of Operations

Other (expense) income

​

$

(84)

​

$

43

​

$

(41)

Less:

​

​

​

​

​

​

​

​

​

Product development income (expenses)

​

​

(182)

​

​

—

​

​

(182)

Exploration expenses

​

​

(7)

​

​

—

​

​

(7)

General and administrative expenses

​

​

(476)

​

​

(1,818)

​

​

(2,294)

Depreciation and amortization

​

​

(151)

​

​

(1)

​

​

(152)

Net loss

​

$

(900)

​

$

(1,776)

​

$

(2,676)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2024

(thousands of dollars)

​

Battery-grade Graphite Segment

​

Corporate and Other

​

Consolidated Statements of Operations

Other income

​

$

5

​

$

90

​

$

95

Less:

​

​

​

​

​

​

​

​

​

Product development expenses

​

​

(315)

​

​

—

​

​

(315)

Exploration expenses

​

​

(11)

​

​

—

​

​

(11)

General and administrative expenses

​

​

(619)

​

​

(1,986)

​

​

(2,605)

Depreciation and amortization

​

​

(61)

​

​

(1)

​

​

(62)

Net loss

​

$

(1,001)

​

$

(1,897)

​

$

(2,898)

​