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Financing Activities
Net cash provided by financing activities was $3,077 for the year ended December 31, 2015 and net cash
used in financing activities was $42 for the year ended December 31, 2014. The cash received in the 2015 period
was the result of the Company’s registered direct offering, which closed on April 29, 2015. The cash used in 2014
resulted from taxes paid associated with a cashless exercise of stock options.
Liquidity and Capital Resources
At December 31, 2015, our total current assets were $4,053, compared with $10,481 at December 31, 2014.
The decrease of $6,428 is primarily due to cash expenditures during the year that reduced our cash and cash
equivalents by $6,258. A decrease of $153 in prepaid expenses also contributed to the decrease in total current
assets.
Our working capital at December 31, 2015 was $2,992, compared with working capital of $9,219 at
December 31, 2014.
We have placed the Bear Lodge REE Project under care-and-maintenance, and all permitting activities
have been suspended. Additionally, corporate cost containment measures have been implemented to preserve
remaining cash balances to allow the Company the maximum amount of time possible as it pursues additional
financing and/or strategic alternatives.
We do not have sufficient funds to complete feasibility studies, permitting, development and construction
of the Bear Lodge REE Project. Therefore, our continuation as a going concern is dependent upon our completion
of a future financing, off-take agreement, joint venture, merger or other strategic transaction. However, there is no
assurance that we will be successful in completing such a financing or strategic transaction. As a result, there is
substantial doubt as to whether our existing cash resources and working capital are sufficient to enable us to
continue our operations for the next 12 months as a going concern.
The audit opinion and notes that accompany our consolidated financial statements for the year ended
December 31, 2015, refer to the substantial doubt regarding our ability to continue as a going concern. The
accompanying financial statements have been prepared assuming that we will continue as a going concern. Our
financial statements do not include any adjustments that may result from the outcome of this uncertainty. We do not
have sufficient cash to fund planned operations and meet obligations for the next 12 months without raising
additional funds.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements required to be disclosed in this Annual Report.
Contractual Obligations
At December 31, 2015, our contractual obligations consisted of operating lease obligations of $114
associated with our Lakewood, Colorado corporate office as well as facilities in Sundance, Wyoming. The timing
associated with these lease obligations is outlined below:
Payments Due by Period
Contractual obligations
Total
Less than
1 Year
2-3
Years
3-5
Years
More
than 5
Years
Operating lease obligations
$114
$114
$ -
$ -
$ -
Total
$114
$114
$ -
$ -
$ -