Construction and Production - The company has substantially completed construction of its Small-Scale Facility, with initial production of boric acid expected to commence pending EPA authorization[83]. - The updated Technical Report Summary includes a revised mineral resource estimate targeting production of 90,000 short tons of boric acid and 1,100 short tons of lithium carbonate by Q2 2026, with full operation targeting 450,000 short tons of boric acid and 5,500 short tons of lithium carbonate annually[86]. - The company plans to optimize well-field design to reduce future mining capital and operational expenditures through various drilling techniques[102]. - The company aims to further define its advanced materials strategy, including repurposing the Small-Scale Facility to produce boron advanced materials[102]. Financial Performance - Project expenses for the three months ended March 31, 2023, decreased by 38% to $1,268,000 compared to $2,039,000 in the same period in 2022[92]. - General and administrative expenses decreased by 81% to $6,004,000 for the three months ended March 31, 2023, compared to $30,832,000 in the prior year[92]. - The company reported a net loss of $10,115,000 for the three months ended March 31, 2023, a 69% improvement from a net loss of $32,969,000 in the same period in 2022[92]. - Interest income increased significantly due to short-term investments, with a weighted average interest rate of approximately 4.06% for the three months ended March 31, 2023[96]. - The company recognized approximately $908 thousand in impairment expense due to the expiration of its mineral lease with Elementis Specialties, Inc. on March 31, 2023[105]. Liquidity and Financing - Liquidity forecast indicates available cash resources are expected to be exhausted within the next 12 months, with substantial doubt regarding the company's ability to continue as a going concern[87]. - The company is actively exploring various financing options to avoid default under the Convertible Note indenture if cash balance falls below $10 million[87]. - The company anticipates that its available liquidity may fall below $10 million in the latter part of calendar year 2023, which could trigger an event of default under the Convertible Note agreement[102]. - The company executed a $60 million private placement of senior secured convertible notes in August 2022 to fund the construction and operation of its Small-Scale Facility[101]. - The company has $16.2 million in purchase order commitments for construction works, equipment, and technical reports, with $8.7 million reflected in accounts payable as of March 31, 2023[104]. Management and Strategy - The company appointed Ms. Susan Seilheimer Brennan as the new CEO on April 24, 2023, who has initiated cost-cutting measures and plans to relocate the headquarters to California[85]. - The company is focused on hiring team members to support its operations as a global producer of boric acid, lithium carbonate, and gypsum[102]. - The company must incur exploration expenses of $900 thousand by December 31, 2023, under the amended Salt Wells Earn-in Agreement[106]. Market Conditions - The U.S. inflation rate has been rising, potentially increasing costs for goods, services, and personnel, which could adversely affect the company's business[88]. - As of March 31, 2023, the company had cash and cash equivalents of $36.2 million and working capital of $26.6 million, compared to $31.1 million and $25.2 million as of June 30, 2022[100]. - The company has not generated revenues since inception and relies on equity financing and hybrid equity and debt instruments for funding[100].

Production Plans - The company aims to commence initial production of boric acid by late Q1 or early Q2 of 2023, contingent upon successful commissioning activities and EPA clearance[73]. - The company is targeting initial production of lithium carbonate in the second calendar quarter of 2023, making it the third producer of boron in the U.S. after only two companies produced borates in 2022[74]. Financial Performance - Project expenses for the three months ended December 31, 2022, increased by 14% to $3,404,000 compared to $2,990,000 in the same period of 2021[85]. - General and administrative expenses decreased by 2% to $7,701,000 for the three months ended December 31, 2022, compared to $7,830,000 in the prior year[85]. - The company reported a net loss of $14,863,000 for the three months ended December 31, 2022, a 35% increase compared to a net loss of $11,039,000 in the same period of 2021[85]. Funding and Financing - The company is exploring government funding opportunities in defense, clean energy, agriculture, and food security, with ongoing discussions with multiple governmental entities[78]. - The company is considering non-dilutive debt financing options for its larger scale facility to support its production plans[79]. - The company executed a $60 million private placement of senior secured convertible notes in August 2022 to fund the construction and operation of its Small-Scale Facility[95]. Liquidity and Cash Management - The company’s liquidity forecast indicates available cash resources are expected to be exhausted by Q4 2023, necessitating exploration of various financing options[81]. - As of December 31, 2022, the company had cash and cash equivalents of $56.8 million and working capital of $45.3 million, an increase from $31.1 million and $25.2 million as of June 30, 2022[94]. - The company’s available cash resources are expected to be exhausted in the fourth quarter of calendar year 2023 without additional financing[98]. - The company’s convertible note contains a financial covenant requiring a cash balance of at least $10 million, which is projected to fall below this threshold by the end of February 2024[98]. Capital Expenditures and Commitments - The company plans to optimize infrastructure capital expenditures for its larger-scale facility, which may include expanding non-potable water resources and upgrading shore power[96]. - The company has contractual commitments of $20 million for construction works in progress, with $6.2 million reflected in accounts payable and accrued liabilities as of December 31, 2022[100]. Exploration and Tax Matters - The company must incur exploration expenses of $900 thousand by December 31, 2023, under the Salt Wells Earn-in Agreement to fully realize mineral interest rights[102]. - The company has recorded a full valuation allowance against its net deferred tax asset, resulting in no income tax expense or benefit for the three and six months ended December 31, 2022[93]. Revenue Generation - The company has not generated revenues since inception and has relied on equity financing and hybrid equity and debt instruments to fund its operations[94].

Financial Performance - The company reported a net income of $4.6 million for Q3 2022, a significant improvement from a net loss of $9.5 million in Q3 2021[74]. - General and administrative expenses decreased by $955 thousand, primarily due to the absence of one-time costs from the previous year[76]. - Project expenses decreased by 25% to $3.6 million in Q3 2022 from $4.8 million in Q3 2021[74]. - Net cash used in operating activities increased by 62% to $(7.8 million) in Q3 2022 from $(4.8 million) in Q3 2021[83]. Cash Position - Cash and cash equivalents increased to $74.2 million as of September 30, 2022, compared to $31.1 million as of June 30, 2022[80]. - The company believes its current cash balances are sufficient to fund operations for at least the next 12 months[81]. Financing Activities - The company completed a $60 million private placement of Senior Secured Convertible Notes in August 2022[72]. - The company recognized a derivative gain of $13.9 million due to the change in fair value of the embedded conversion feature of its convertible notes[77]. Commitments and Agreements - The company had purchase order commitments of $21.7 million for construction works in progress and other expenses[88]. - The company entered into a research agreement with Boston College for the advancement of boron-based materials research in solar energy systems[72].

Financial Condition - The company has incurred an accumulated deficit of $107.4 million as of June 30, 2022, and anticipates continued significant operating losses in the foreseeable future [169]. - As of June 30, 2022, the company had cash and cash equivalents of $31.1 million, down from $40.8 million as of June 30, 2021, indicating a need for additional financing [174]. - The company has no revenue from its proposed extraction operations at its properties, which may negatively impact its ability to achieve business objectives [170]. - The company may face challenges in securing adequate additional funding due to potential worsening global economic conditions and market volatility [178]. - The company acknowledges that mining exploration is highly speculative and may not result in profitable operations, impacting its financial condition and ability to generate revenue [202]. - The company may incur significant costs and delays due to various risks associated with mining projects, including regulatory and environmental challenges [223]. - The company may incur significant expenses or delays due to natural disasters or other uncontrollable events impacting operations [265][266]. - The company is subject to significant environmental and government regulations, which require substantial expenditures for compliance [280]. - The costs associated with compliance with environmental laws and regulations are substantial, potentially leading to unanticipated capital expenditures [280]. - The company may incur substantial costs, including fines and remediation costs, for violations of environmental, health, and safety laws [285]. - The company is subject to risks from fluctuating market prices of raw materials, including steel and bulk chemicals, which are critical for operations [269]. - The company has experienced increased costs and operational risks due to global economic instability, including inflation and supply chain issues, which may adversely affect growth [326]. Project Development - The company plans to achieve mechanical completion and commissioning of the SSBF within the next 12 months, which is critical for its operational strategy [175]. - The company expects to incur significant discovery and development expenses related to the completion of exploration and commercialization of Fort Cady [169]. - The completion of the smaller scale boron facility (SSBF) is targeted for the end of 2022, with production expected to commence in 2023, although there are no assurances that this timeline will be met [189]. - The successful operation of the SSBF is critical for optimizing the design and cost of the proposed large-scale complex at Fort Cady, which is essential for future economic viability [187]. - The company may face delays and increased costs in the development of Fort Cady due to various factors, including supply chain issues and construction challenges [199]. - The mineral lease agreement for Fort Cady is set to expire on March 31, 2023, and loss of access could adversely affect development [218]. - The company cannot assure completion of feasibility studies, and actual operating costs may differ significantly from estimates [220]. - The potential production capacity of Fort Cady is targeted at up to 500,000 tons per year of boric acid, which may require permit modifications [226]. - The exploration and development of mineral deposits involve high financial risks, and profitability is uncertain in the short to medium term [219]. - The company has invested over $75.7 million in Fort Cady, including $11.4 million in capital expenditures for the year ended June 30, 2022, with $10.0 million related to construction in progress [196]. Market and Competition - The company faces significant risks related to market disruptions, including adverse economic conditions and regulatory actions that could impact the demand for borates and lithium [184]. - The company is exploring downstream processing capabilities for boron specialty products, which will require substantial additional capital and may depend on market demand and competitive landscape [205]. - The mining industry is cyclical, and fluctuations in prices of borates, lithium, and other minerals could adversely affect the company's business [256]. - Competition in the borates and lithium markets is intense, with major players like Albemarle Corporation and others potentially impacting prices [275]. - The marketability of minerals is influenced by factors beyond the company's control, including government regulations and international economic trends [257]. - Growth is dependent on the demand for applications requiring borates and lithium, such as solar energy infrastructure and lithium-ion batteries, which are influenced by government regulations and consumer adoption rates [229]. Regulatory and Legal Risks - The company is required to obtain, maintain, and renew governmental permits for development and mining operations, which is often a costly and time-consuming process [298]. - The company may face significant opposition from third parties during the permit application process, which could delay or increase operational costs [255]. - The company is subject to Section 404 of the Sarbanes-Oxley Act, requiring management to report on the effectiveness of internal controls over financial reporting [336]. - The company is subject to Section 203 of the Delaware General Corporation Law, which restricts business combinations with interested shareholders for three years after acquisition of at least 15% of voting stock [355]. - The company may be subject to lawsuits and regulatory proceedings that could materially affect its financial condition and operations [300]. Environmental and Social Responsibility - The company acknowledges the potential adverse effects of climate change on its operations, particularly in regions like California, which may impact business prospects [305]. - Climate change may increase the frequency or intensity of adverse weather conditions, potentially damaging the company's assets and operations [292]. - The company is committed to socially responsible operations, but there is no assurance that these efforts will mitigate risks associated with community relations and environmental concerns [309]. Corporate Governance and Financial Management - The company has not declared any dividends during fiscal years 2019, 2020, or 2021, and does not anticipate doing so in the foreseeable future [340]. - The company is classified as an "emerging growth company," allowing it to take advantage of reduced disclosure requirements, which may affect the attractiveness of its stock to investors [342]. - The company will cease to be an "emerging growth company" upon reaching total annual gross revenues of $1.235 billion or other specified conditions [345]. - The company has elected not to opt out of the extended transition period for new financial accounting standards, which may complicate financial comparisons with other public companies [346]. - If the company experiences material weaknesses in internal controls, it may adversely affect investor confidence and the value of its common stock [347]. - The company's Certificate of Incorporation and Bylaws contain anti-takeover provisions that could inhibit shareholder actions and affect market prices [352]. - The company may finance cash needs through equity offerings or debt instruments, as it currently lacks committed external funding sources [356]. - Future issuances of Common Shares or convertible debt securities may dilute existing investors' ownership interests and affect their rights [357]. - The company’s Certificate of Incorporation allows for the issuance of Preferred Stock without shareholder approval, which could impact the value of Common Stock [358]. - Debt financing may involve covenants that restrict the company's ability to incur additional debt or declare dividends [359]. - The company is at risk of being delisted from NASDAQ, which could limit trading activity and reduce market quotations for its Common Stock [361]. - Sales by existing shareholders could lead to a decrease in the market price of Common Stock and CDIs, impairing the company's ability to raise additional capital [362]. - The company relies on its subsidiaries to generate cash for operations, making it vulnerable to their financial performance and legal obligations [363]. - The company’s Bylaws designate the Court of Chancery of the State of Delaware as the exclusive forum for certain shareholder actions, potentially limiting legal recourse for shareholders [364].