NioDevelopments .(NB) - 2024 Q1 - Quarterly Report

Financial Position and Liquidity - The company had cash of $1.1 million and a working capital deficit of $10.5 million as of September 30, 2023, compared to cash of $2.3 million and working capital of $0.2 million on June 30, 2023[91] - The company expects to operate at a loss for the foreseeable future, with planned cash needs of approximately $9.25 million until June 30, 2024, and average monthly expenditures of $745,000[92] - The company's operating activities consumed $2.7 million of cash during the three months ended September 30, 2023, compared to $1.7 million in the same period of 2022[99] - The company has no revenue-generating operations and relies on debt and equity financings to fund its activities, with no assurance of obtaining additional financing on acceptable terms[101] - The company has concluded that substantial doubt exists as to its ability to continue as a going concern due to insufficient cash to fund normal operations and meet debt obligations for the next twelve months[97] Funding and Financing - The company anticipates requiring additional funds totaling $10.0 million to $11.0 million to continue advancing the Elk Creek Project in areas such as financing, permitting, and detailed engineering[93] - The company submitted an application to EXIM for debt financing to fund the Elk Creek Project, but there is no assurance that the financing will be completed[95] - Financing inflows were $1.5 million during the three months ended September 30, 2023, primarily from a private placement and share issuances under the Yorkville Equity Facility Financing Agreement[100] - The company's ability to arrange additional financing depends on capital market conditions and the development of the Elk Creek Project[103] Share and Equity Information - Common Shares outstanding on a fully-diluted basis as of November 13, 2023: 33,142,280[109] - Vested shares of ECRC Class B common stock: 4,565,808[109] - Stock options exercisable into Common Shares: 1,319,000[109] - Warrants exercisable into Common Shares: 18,917,199[109] - Convertible debt exchangeable into Common Shares: 2,147,800[109] - NioCorp Assumed Warrants exercisable into Common Shares: 15,666,626[110] - Warrants exercisable into Common Shares: 3,250,573[110] - Convertible Debentures outstanding principal and accrued interest: $7.6 million[110] - Market price per Common Share on November 13, 2023: $3.91[110] Tax and Regulatory Considerations - The company believes it was classified as a PFIC for the taxable years ended June 30, 2023 and 2022, and may be classified as a PFIC in future taxable years, which could have adverse tax consequences for U.S. holders[106] Project and Market Risks - Company's exposure to commodity price risk related to the Elk Creek Project[113]