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OTHER EXPENSE, NET

9 Months Ended

Sep. 30, 2025

OTHER EXPENSE, NET

OTHER EXPENSE, NET

11. OTHER EXPENSE, NET

For the three and nine months ended September 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 Nine Months Ended
		September 30,						September 30,
(thousands of dollars)		2025			2024			2025			2024
Other income (expense):
Sales of raw material inventory		$	28		$	2,064		$	266		$	3,188
Costs related to sales of raw material inventory			(28)			(2,189)			(266)			(3,696)
Write-down of raw material inventory			—			(271)			—			(964)
Interest income			75			36			145			227
Series A-1 Convertible Notes loss on conversion			(1,895)			—			(1,895)			—
Series B-1 Convertible Notes loss on conversion			(604)			—			(604)			—
Series A-1 Convertible Notes change in fair value			(2,415)			—			(2,415)			—
Series B-1 Convertible Notes change in fair value			(910)			—			(910)			—
Foreign exchange loss			—			—		$	(4)			(3)
Other (expense) income			(7)			7			(408)			9
Total other expense, net		$	(5,756)		$	(353)		$	(6,091)		$	(1,239)

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, 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 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.

For the three and nine months ended September 30, 2025, there was no write-down of inventory. For 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 was under contract to be sold subsequent to September 30, 2024. Refer to Note 4 Inventory for further details.