XML 28 R17.htm IDEA: XBRL DOCUMENT

OTHER EXPENSE, NET

6 Months Ended

Jun. 30, 2025

OTHER EXPENSE, NET

OTHER EXPENSE, NET

11. OTHER EXPENSE, NET

For the three and six months ended June 30, 2025 and 2024, the Company had the following components within “Other expense, net” within the Condensed Consolidated Statement of Operations.


		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
(thousands of dollars)		2025			2024			2025			2024
Other income (expense):
Sales of raw material inventory		$	28		$	982		$	266		$	1,124
Costs related to sales of raw material inventory			(28)			(1,336)			(266)			(1,506)
Write-down of raw material inventory			—			(694)			—			(694)
Interest income			27			65			70			191
Foreign exchange loss			(5)			(1)		$	(4)			(3)
Other (expense) income			(316)			3			(401)			2
Total other expense, net		$	(294)		$	(981)		$	(335)		$	(886)

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 six months ended June 30, 2025, the Company recognized sales of raw material inventory of less than $0.1 million and $0.3 million, respectively, and related offsetting expenses of less than $0.1 million and $0.3 million, respectively. For the three and six months ended June 30, 2024, the Company recognized sales of raw material inventory of $1.0 million and $1.1 million, respectively, and related offsetting expenses of $1.3 million and $1.5 million, respectively.

For the three and six months ended June 30, 2025, there was no write-down of inventory. For each of the three and six months ended June 30, 2024, the Company recognized a write-down of inventory of $0.7 million to recognize the lower of cost or net realizable value related to raw material inventory that is under contract to be sold subsequent to June 30, 2024. Refer to Note 4 Inventory for further details.

For the three and six months ended June 30, 2025, the Company recognized interest income of less than $0.1 million and $0.1 million, respectively, in our investment account. For the three and six months ended June 30, 2024, the Company recognized interest income of $0.1 million and $0.2 million, respectively, in our investment account.

Pursuant to electing the Fair Value Option accounting for the Series A-1 Convertible Notes (see Significant Accounting Policies within Note 1 Basis of Presentation for further details) the Company expensed related issuance costs of $0.3 million, which is included in “Other (expense) income” in the table above, for the three and six months ended June 30, 2025.