WESTWATER RESOURCES, INC. Segments Disclosure
14. | SEGMENT REPORTING |
The Company has one reporting segment, the “battery-grade graphite business” segment and the Company’s chief operating decision maker (“CODM”) is the President & Chief Executive Officer. Graphite extraction and processing are regulated by federal and state governments. Compliance with regulations has a material effect on the economics of our operations and the timing of project development. Our primary regulatory costs have been, and are expected to continue to relate to, obtaining licenses and operating permits from federal and state agencies before the commencement of production activities, as well as continuing compliance with licenses and permits once they have been issued.
U.S. regulations pertaining to graphite extraction and processing may evolve in the U.S., however, at this time we do not anticipate any adverse impact from these regulations that would be unique to our operations.
The battery-grade graphite business segment includes the Kellyton Graphite Plant and the Coosa Graphite Deposit, both at a pre-revenue stage and located in Coosa County, Alabama. Both are anticipated to be used to produce battery-grade natural graphite materials as follows:
Kellyton Graphite Plant:
The Company will process natural graphite concentrate at the Kellyton Graphite Plant through a combination of sizing, shaping, spheroidization and classification. Once completed, the purification is expected to be performed using a proprietary purification process. The process uses a combination of technologies including a caustic bake, acid leach and thermal treatment, a process that allows for a smaller and more sustainable environmental footprint than that of a hydrofluoric acid leaching system, which is widely used by other graphite processing companies. Once the graphite is purified to a minimum graphite carbon content of 99.95%, the Company will coat the spherical graphite to manufacture the advanced graphite products it intends to sell. The purification process was developed by Westwater and on September 17, 2025, the Company announced it had received its first U.S. Patent related to its graphite purification method.
Coosa Graphite Deposit:
Westwater currently purchases graphite flake concentrate for the Kellyton Graphite Plant under a supply contract with Syrah Resources Limited. In 2025, the Company also entered a contract with a non-FEOC backup feedstock supplier. Westwater expects to continue to purchase graphite concentrate from Syrah Resources Limited and/or other sources for the Kellyton Graphite Plant until the Coosa Graphite Deposit is developed and in operation. Westwater believes its current contracts with Syrah Resources Limited and the backup feedstock supplier provide adequate feedstock supply until then, and believes that the backup supplier reduces dependency, mitigates risk and helps ensure supply chain continuity. Currently, the Coosa Graphite Deposit is being evaluated for future mining operations, which will require a permitting process that began in the fourth quarter of 2025. Development of a mine at the Coosa Graphite Deposit is expected to serve as an in-house source of graphite feedstock and will provide in-house QA/QC for raw-material inputs
The accounting policies of the battery-grade graphite business are the same as those described in Note 1, The Company and Summary of Significant Accounting Policies, in the Notes to the Consolidated Financial Statements. The CODM assesses performance for the battery-grade graphite business segment and decides how to allocate resources based on operating expenses, as reported on the Consolidated Statement of Operations. The CODM intends to continue to use operating expenses to evaluate the segment until the Kellyton Graphite Plant is operational.
The following table summarizes segment assets as of December 31, 2025 and 2024:
December 31, | December 31, | |||||
(thousands of dollars) | 2025 | | 2024 | |||
Assets: | ||||||
Battery-grade graphite business segment assets | $ | 145,561 | $ | 141,470 | ||
Corporate and other assets | 48,972 | 4,887 | ||||
Consolidated total assets | $ | 194,533 | $ | 146,357 | ||
Expenditures for battery-grade graphite business segment assets | $ | 11,688 | $ | 6,138 | ||
The following tables summarize segment profit or loss and significant segment expenses as of December 31, 2025 and 2024:
December 31, 2025 | |||||||||
(thousands of dollars) | Battery-grade Graphite Segment | Corporate and Other | Consolidated Statements of Operations | ||||||
Other (expense) income, net | $ | (296) | $ | (12,500) | $ | (12,796) | |||
Less: | |||||||||
Product development expenses | 1,139 | — | 1,139 | ||||||
Exploration expenses | 227 | — | 227 | ||||||
General and administrative expenses | 2,935 | 9,445 | 12,380 | ||||||
Mineral property | 39 | — | 39 | ||||||
Depreciation and amortization | 741 | 4 | 745 | ||||||
Net loss | $ | (5,377) | $ | (21,949) | $ | (27,326) | |||
December 31, 2024 | |||||||||
(thousands of dollars) | Battery-grade Graphite Segment | Corporate and Other | Consolidated Statements of Operations | ||||||
Other (expense) income, net | $ | (1,462) | $ | 273 | $ | (1,189) | |||
Less: | |||||||||
Product development expenses | 1,177 | — | 1,177 | ||||||
Exploration expenses | 20 | — | 20 | ||||||
General and administrative expenses | 2,046 | 7,941 | 9,987 | ||||||
Mineral property | 35 | — | 35 | ||||||
Depreciation and amortization | 244 | 5 | 249 | ||||||
Net loss | $ | (4,984) | $ | (7,673) | $ | (12,657) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 2, 2017 | |
| 2015 | Mar 18, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.