NioDevelopments .(NB) - 2025 Q1 - Quarterly Report

Fundraising Activities - The company closed the November 2024 Registered Offering, raising approximately $2.5 million in gross proceeds before underwriting discounts and offering expenses[85] - The November 2024 Registered Offering included 1,592,356 Common Shares and 2,508,135 Warrants (Series A and Series B Public Warrants) at a combined public offering price of$1.57[85] - The company closed the November 2024 Private Offering, raising approximately $3.5 million in gross proceeds before offering expenses[86] - The November 2024 Private Offering included 2,199,602 Units, each consisting of one Common Share, one Series A Private Warrant, and one-half of one Series B Private Warrant, issued at$1.57 per Unit[86] - The company granted the Underwriter a 45-day over-allotment option to purchase 238,853 additional Common Shares and 358,280 Option Warrants[85] - Certain directors and officers purchased Units at $1.7675 per Unit, including$0.125 per November Private Warrant[87] - NioCorp plans to use net proceeds from the November Offerings for working capital, advancing the Elk Creek Project, and repaying the $2.0 million Smith Loan[88] - The company completed a$2.0 million non-revolving credit facility with CEO Mark Smith, with $250,000 repaid on November 6, 2024[108] - NioCorp issued 2,816,742 Contingent Consent Warrants to Lind on September 17, 2024, exercisable at$2.308 per share until September 17, 2028[111] Warrant Details - The Series A Public Warrants have an exercise price of $1.75 per Common Share and expire on November 5, 2026[85] - The Series B Public Warrants have an exercise price of$2.07 per Common Share and expire on November 5, 2029[85] - The Series A Private Warrants have an exercise price of $1.75 per Common Share and expire on November 13, 2026[87] - The Series B Private Warrants have an exercise price of$2.07 per Common Share and expire on November 13, 2029[87] Financial Performance and Cash Flow - Operating expenses for Q3 2024 totaled $1.395 million, a decrease from$3.443 million in Q3 2023, primarily due to reduced professional fees and exploration expenditures[96] - NioCorp reported a net loss of $2.071 million for Q3 2024, compared to a net loss of$3.213 million in Q3 2023[96] - As of September 30, 2024, NioCorp had $0.15 million in cash and a working capital deficit of$6.9 million, compared to $2.0 million in cash and a$9.0 million deficit on June 30, 2024[112] - The company's operating activities consumed $0.6 million of cash during the three months ended September 30, 2024, reflecting funding of losses of$2.1 million and increased fair value related to the Earnout Shares liability[124] - Financing outflows were $1.2 million during the three months ended September 30, 2024, with inflows of$0.7 million from Common Share issuances under the Yorkville Equity Facility Financing Agreement, offset by $1.9 million of convertible debt repayments[125] Funding Requirements and Financing - NioCorp expects to require approximately$25.0 million in funding until June 30, 2025, including repayments for the April 2024 Notes[113] - The company anticipates needing an additional $24.0 million to$25.0 million to continue advancing the Elk Creek Project, as it does not have sufficient cash on hand to fund basic operations for the next twelve months[115] - The company has historically relied on debt and equity financings to fund its activities, but there is no assurance it will be able to obtain additional financing on acceptable terms in the future[126] - The company's ability to arrange additional financing will depend on prevailing capital market conditions and its success in developing the Elk Creek Project[128] - The company submitted an application to EXIM for debt financing under the "Make More in America" initiative, which is currently in the second step of EXIM's four-step approval process[118] Elk Creek Project and Offtake Agreements - NioCorp plans to use net proceeds from the November Offerings for working capital, advancing the Elk Creek Project, and repaying the $2.0 million Smith Loan[88] - The company continues to negotiate offtake agreements for niobium, scandium, titanium, and rare earth elements from the Elk Creek Project[93] - The company's average monthly planned expenditures through June 30, 2024 are expected to be approximately$1,915,000, with $355,000 allocated for corporate overhead and financing costs related to the Elk Creek Project, and$1,560,000 for project advancement by NioCorp's majority-owned subsidiary, ECRC[114] - Elk Creek property lease commitments are $13,200 until June 30, 2025, and the company will likely require additional financing during the current fiscal year to maintain its properties and fund exploration and development activities[116] Government Funding and Innovation - The UK Government awarded$8.0 million funding to Project PIVOT, in which NioCorp participates, to design lightweight aluminum alloys using recycled aluminum strengthened by scandium[90] - NioCorp successfully demonstrated rare earth oxide extraction and recovery from permanent magnets at the Trois-Rivieres Demonstration Plant, enabling potential recycling of rare earth content from other mines[91] Share Structure and Commodity Risk - The company has one class of shares, with 42,512,202 Common Shares outstanding on a fully diluted basis as of November 13, 2024[135] - The company is exposed to commodity price risk related to the elements associated with the Elk Creek Project, and a significant decrease in global demand for these elements may have a material adverse effect on its business[139]