Core Viewpoint - enCore Energy Corp. is facing a class action lawsuit due to alleged misleading statements and failures in financial reporting during the specified class period, leading to significant investor losses [3][4]. Summary by Relevant Sections Class Action Details - The class action lawsuit represents investors who purchased enCore securities between March 28, 2024, and March 2, 2025, with a deadline for filing a lead plaintiff motion set for May 13, 2025 [1]. Allegations Against enCore Energy - The lawsuit claims that enCore Energy made false or misleading statements and failed to disclose critical information, including: - Lack of effective internal controls over financial reporting [3]. - Inability to capitalize certain exploratory and development costs according to U.S. GAAP [3]. - Resulting in net losses that were significantly greater than previously reported [3]. Financial Impact - On March 3, 2025, enCore Energy reported a fiscal 2024 net loss of $61.3 million, more than double the $25.6 million loss from the previous fiscal year [4]. - The increased loss was partly attributed to the inability to capitalize certain costs under U.S. GAAP, which would have been capitalized under IFRS [4]. - The company also disclosed a "material weakness" in its internal controls over financial reporting, citing deficiencies in risk assessment and monitoring activities [4]. - Following these disclosures, enCore Energy's stock price fell by over 46% [4].

PART I [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2025 show a net loss of $25.4 million and decreased total assets, reflecting the company's transition to U.S. GAAP - As of January 1, 2025, the Company became a **U.S. Domestic Issuer** and prepared its consolidated financial statements in accordance with **U.S. GAAP**[38](index=38&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $54,038 | $87,414 | | **Total Assets** | $362,607 | $392,722 | | **Total Current Liabilities** | $18,361 | $30,080 | | **Total Liabilities** | $62,683 | $74,180 | | **Total Equity** | $299,924 | $318,542 | Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | $18,239 | $30,394 | | **Gross Loss** | $(23) | $(469) | | **Operating Loss** | $(15,626) | $(12,278) | | **Net Loss** | $(25,387) | $(7,742) | | **Net Loss per Share (Basic & Diluted)** | $(0.13) | $(0.04) | Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(7,735) | $(3,049) | | **Net cash used in investing activities** | $(7,710) | $(5,092) | | **Net cash provided by financing activities** | $5,422 | $89,793 | | **Net (decrease) increase in cash** | $(10,023) | $81,652 | [Notes to the Consolidated Unaudited Financial Statements](index=16&type=section&id=Notes%20to%20the%20Consolidated%20Unaudited%20Financial%20Statements) Key notes detail the company's Exploration Stage Issuer status, the sale of Alta Mesa and New Mexico assets, ongoing lawsuits, and 8.315 million pounds of uranium sales commitments - The Company is classified as an **Exploration Stage Issuer** under SEC regulations due to the absence of proven or probable mineral reserves[36](index=36&type=chunk)[48](index=48&type=chunk) - In February 2024, Boss Energy acquired a **30% equity interest** in the Alta Mesa Project for **$60 million**, with enCore retaining a 70% interest and management control[118](index=118&type=chunk) - In April 2025, the company completed the sale of its Crownpoint and Hosta Butte projects in New Mexico to Verdera Energy Corp[117](index=117&type=chunk)[175](index=175&type=chunk) - The company is a defendant in a federal securities class action lawsuit filed in March 2025, alleging ineffective internal controls and improper cost capitalization[128](index=128&type=chunk)[129](index=129&type=chunk) - The company's former CEO filed a demand for arbitration in April 2025, alleging breach of employment agreement and seeking damages[176](index=176&type=chunk) Uranium Sales Commitments (in thousands of pounds) | Year | Volume (lbs) | | :--- | :--- | | Remainder of 2025 | 365 | | 2026 | 900 | | 2027 | 850 | | 2028 | 1,000 | | 2029 | 1,500 | | Thereafter | 3,700 | | **Total** | **8,315** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's domestic ISR uranium extraction focus, Q1 2025 revenue of $18.2 million, a net loss of $25.4 million, and sufficient liquidity for the next twelve months [Business Overview and Strategy](index=38&type=section&id=Business%20Overview%20and%20Strategy) enCore Energy, an exploration-stage issuer, focuses on domestic ISR uranium extraction, aiming to expand capacity from South Texas to become a leading U.S. supplier - The company focuses on extracting **domestic uranium** in the United States using proven **ISR technology**[180](index=180&type=chunk) - Despite commencing uranium extraction, the company remains an **exploration stage issuer** due to the absence of proven or probable mineral reserves[179](index=179&type=chunk) - The company's strategy involves developing uranium extraction facilities, starting in South Texas, to meet growing demand for clean nuclear energy[180](index=180&type=chunk) [Industry and Market Update](index=38&type=section&id=Industry%20and%20Market%20Update) The global uranium market faces demand exceeding supply, supported by nuclear reactor extensions and U.S. government policies, while global events like Kazatomprom's suspension and Saudi Arabia's entry plans create uncertainty - Global uranium demand, approximately **175.2 million lbs U3O8 annually**, continues to exceed primary production, with the deficit met by diminishing stockpiles[181](index=181&type=chunk) - Executive Orders in early 2025 designated uranium as a **'critical mineral'** and **'energy resource'**, directing federal agencies to advance permitting and production[183](index=183&type=chunk) - The U.S. implemented tariffs on goods from Canada, Mexico, and China in March 2025, creating trade tensions, though some USMCA-related tariffs were delayed[185](index=185&type=chunk) - Kazakhstan's Kazatomprom announced a temporary production suspension, while Saudi Arabia intends to enrich and sell uranium[188](index=188&type=chunk) [Operations and Corporate Update](index=42&type=section&id=Operations%20and%20Corporate%20Update) In Q1 2025, enCore sold 290,000 lbs of U3O8, expanded its South Texas drilling fleet, doubled Alta Mesa's capacity, and advanced permitting for projects in South Dakota and Wyoming Q1 2025 Uranium Sales | Metric | Value | | :--- | :--- | | **Volume Sold** | 290,000 lbs U3O8 | | **Average Sales Price** | $62.89 per lb U3O8 | - The company increased its active drill rigs in South Texas from **17** at year-end 2024 to **22** as of March 31, 2025[193](index=193&type=chunk)[206](index=206&type=chunk) - A second Ion Exchange (IX) Circuit at the Alta Mesa CPP doubled its total flow capacity from **2,500 to 5,000 gallons per minute (GPM)**[193](index=193&type=chunk) - The company is advancing its Dewey-Burdock project in South Dakota and has initiated permitting and exploration for the Gas Hills Project in Wyoming[210](index=210&type=chunk)[211](index=211&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Q1 2025 revenue decreased 40% to $18.2 million due to lower volumes and prices, resulting in a net loss of $25.4 million, primarily from an unrealized loss on marketable securities, with extracted uranium costing $45.62 per pound Q1 2025 vs Q1 2024 Operational Comparison | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $18.2M | $30.4M | -40% | | **Volumes Sold (lbs)** | 290,000 | 320,000 | -9% | | **Realized Sales Price ($/lb)** | $62.89 | $94.98 | -34% | | **Net Loss** | $(25.4M) | $(7.7M) | -230% | | **Loss per Share** | $(0.13) | $(0.04) | -225% | - The increase in net loss was primarily driven by a **$9.9 million unrealized loss** on marketable securities due to unfavorable market conditions in Q1 2025[215](index=215&type=chunk) Cost of Extracted Uranium Sold (Q1 2025) | Cost Component | Cost per Pound | | :--- | :--- | | **Cash Costs** | $31.26 | | **Non-Cash Costs** | $14.36 | | **Total Extracted Cost** | **$45.62** | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company reported $29.7 million in cash and $35.7 million in working capital, a decrease from year-end 2024, but believes its liquidity is sufficient for the next twelve months Liquidity Position (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $29,704 | $39,701 | | **Working capital** | $35,677 | $57,334 | - The company believes its available cash, expected operating cash flows, and potential financing will be sufficient for operations for the next twelve months[226](index=226&type=chunk) - Net cash used in operating activities increased to **$7.7 million** in Q1 2025 from **$3.0 million** in Q1 2024, largely due to payments on the uranium loan[230](index=230&type=chunk)[231](index=231&type=chunk) - Net cash provided by financing activities decreased significantly to **$5.4 million** in Q1 2025 from **$89.8 million** in Q1 2024, due to prior period proceeds from the Alta Mesa JV minority interest sale[230](index=230&type=chunk)[234](index=234&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to equity price, uranium price, and foreign currency risks, with no derivative hedging used for uranium price or foreign currency exposure - The company is exposed to **equity price risk**, as common share price volatility could impact its ability to raise capital through equity financing[238](index=238&type=chunk) - The company faces **uranium price risk**, with future sales based on spot and fixed pricing, and does not use derivative instruments to hedge this exposure[240](index=240&type=chunk) - The company is subject to **foreign currency risk** from Canadian Dollar transactions but does not hedge this exposure[241](index=241&type=chunk)[242](index=242&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to material weaknesses in IT and process-level controls, with remediation efforts ongoing - The Acting CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[243](index=243&type=chunk) - Ineffectiveness stems from ongoing material weaknesses: ineffective **general information technology controls (GITCs)** and poorly designed **process-level control activities** for financial reporting[244](index=244&type=chunk)[248](index=248&type=chunk) - Remediation activities are underway, including recruiting key personnel, developing a risk assessment framework, and establishing a comprehensive GITC evaluation and monitoring program[246](index=246&type=chunk)[247](index=247&type=chunk)[253](index=253&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a securities class action lawsuit and an arbitration demand from its former CEO, with management currently deeming a loss not probable or estimable for either case - The company and certain officers are defendants in a **securities class action lawsuit** alleging failure to disclose ineffective internal controls and improper cost capitalization under U.S. GAAP[251](index=251&type=chunk) - On April 23, 2025, the company's former CEO filed a demand for arbitration, alleging breach of employment agreement and seeking damages for termination without cause[252](index=252&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) The company highlights key risks, including the potential economic impact of tariffs on uranium and other minerals, and the costly, time-consuming nature of ongoing and future litigation - The potential imposition of **tariffs on uranium** could disrupt supply chains and increase costs, materially and adversely affecting business operations[255](index=255&type=chunk) - The company is subject to **litigation risk**, including the current securities class action, which could be costly, time-consuming, and negatively affect the business regardless of outcome[256](index=256&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company issued **271,333 common shares** from warrant and stock option exercises, generating **$377,000** in gross proceeds under Securities Act exemptions - In Q1 2025, the company issued **90,000 common shares** from warrant exercises for gross proceeds of **$236,000**[257](index=257&type=chunk) - In Q1 2025, the company issued **181,333 common shares** from stock option exercises for gross proceeds of **$141,000**[257](index=257&type=chunk) [Defaults Upon Senior Securities](index=56&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[258](index=258&type=chunk) [Mine Safety Disclosures](index=56&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company's operations are not subject to regulation by the Federal Mine Safety and Health Administration - The company's operations are not subject to regulation by the **Federal Mine Safety and Health Administration** under the Federal Mine Safety and Health Act of 1977[258](index=258&type=chunk) [Other Information](index=56&type=section&id=Item%205.%20Other%20Information) None - None[259](index=259&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including various agreements, officer certifications, and Interactive Data Files (iXBRL) - Lists filed exhibits, including a Share Purchase Agreement, a Registration Rights Agreement, an amendment to the Uranium Loan Agreement, and CEO/CFO certifications[260](index=260&type=chunk)

Uranium Production and Sales - A total of 130,015 pounds of uranium ("U3O8") were extracted and processed at a cost of $36.11 per pound[2] - 290,000 pounds of U3O8 were delivered into sales contracts at an average price of $62.89 per pound[2] - The total cost of U3O8 sold in Q1 2025 was $18.262 million for 290,000 pounds, resulting in a cost per pound of $62.97[4] - The extracted total cost for U3O8 was $3.362 million for 73,711 pounds, leading to a cash cost of $31.26 per pound[4] - U3O8 inventory at quarter-end totaled 153,058 pounds at a cost of $40.39 per pound[2] Financial Performance - The company reported a net loss per share of $0.13, compared to $0.04 per share in Q1 2024, primarily due to increased exploration and extraction activity[2] - Cash and equivalents at the end of the quarter totaled $29.7 million, with working capital of $35.7 million[2] Future Projects and Partnerships - Future projects in the pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming[12] - The company has a joint venture with Boss Energy Ltd., holding a 70% interest in the Alta Mesa Project[11] - The company is committed to working with local communities and indigenous governments to create a positive impact from corporate developments[12]

Core Insights - enCore Energy Corp. reported its financial and operational results for Q1 2025, highlighting significant activities in uranium extraction and sales [1][8] Financial Performance - Total costs of U3O8 sold in Q1 2025 amounted to $18,262,000 for 290,000 pounds, resulting in a cost per pound of $62.97 [4] - The company extracted and processed 130,015 pounds of U3O8 at a cost of $36.11 per pound [7] - The average price for U3O8 sold was $62.89 per pound, with a total of 290,000 pounds delivered under sales contracts [7] - The company reported a net loss per share of $0.13, an increase from $0.04 per share in Q1 2024, attributed to higher exploration and extraction activities and a mark-to-market loss of over $9 million on marketable securities [7] Inventory and Costs - At the end of Q1 2025, the company had an inventory of 153,058 pounds of U3O8, with a total cost of $6,182,000, resulting in a cost per pound of $40.39 [6] - The cash cost of extracted pounds was $2,304,000, translating to $31.26 per pound, while non-cash costs amounted to $1,058,000, or $14.36 per pound [4] Operational Highlights - The company made a cash repayment of $12.2 million on a uranium loan, leading to a negative operating cash flow of $7.7 million [7] - Cash and equivalents stood at $29.7 million, with working capital of $35.7 million at the end of the quarter [7] Company Overview - enCore Energy Corp. is focused on providing clean, reliable, and affordable fuel for nuclear energy, utilizing In-Situ Recovery (ISR) for uranium extraction [10][11] - The company operates the Rosita Central Processing Plant in South Texas and has a joint venture with Boss Energy Ltd. for the Alta Mesa Project [11]

Core Points - enCore Energy Corp. (NASDAQ: EU) is facing a class action lawsuit due to allegations of issuing materially false and misleading statements during the class period from March 28, 2024, to March 2, 2025 [3][4] - The allegations include a lack of effective internal controls over financial reporting, inability to capitalize certain exploratory and development costs under GAAP, and a substantial increase in net losses as a result [3] - The lawsuit claims that the defendants' positive statements about the company's business and prospects were materially misleading and lacked a reasonable basis [3] Class Action Details - Shareholders who purchased shares during the specified class period are encouraged to register for the class action, with a deadline of May 13, 2025, to seek lead plaintiff status [4] - There is no cost or obligation for shareholders to participate in the case, and they will be enrolled in a portfolio monitoring software for status updates [4] - The Gross Law Firm, a nationally recognized class action law firm, is representing the shareholders and aims to protect investors' rights against deceit and fraud [5]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased enCore Energy Corp. securities between March 28, 2024, and March 2, 2025, of the May 13, 2025, deadline to serve as lead plaintiff in a class action lawsuit [1][4]. Group 1: Class Action Details - Investors who bought enCore securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court by May 13, 2025, to serve as lead plaintiff, representing other class members [2][5]. - The lawsuit alleges that enCore made false and misleading statements regarding its financial reporting and internal controls, leading to increased net losses and misleading positive statements about its business [4]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [3]. - The firm has secured significant settlements for investors, including over $438 million in 2019 alone, and has been consistently ranked among the top firms for securities class action settlements since 2013 [3].

Core Viewpoint - enCore Energy Corp. is facing a class action securities lawsuit due to alleged securities fraud that occurred between March 28, 2024, and March 2, 2025 [1][2] Group 1: Allegations and Impact - The lawsuit claims that enCore Energy lacked effective internal controls over financial reporting [2] - It is alleged that enCore could not capitalize certain exploratory and development costs under GAAP, leading to a substantial increase in net losses [2] - Defendants' positive statements regarding the Company's business, operations, and prospects were materially misleading and lacked a reasonable basis [2] Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until May 13, 2025, to request to be appointed as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4]

Core Viewpoint - enCore Energy Corp. is facing a class action lawsuit due to alleged misleading statements and failures in financial reporting, which resulted in significant net losses for the company during the specified class period [3][4]. Group 1: Class Action Details - The class action lawsuit represents investors who purchased enCore securities between March 28, 2024, and March 2, 2025, with a deadline for filing a lead plaintiff motion set for May 13, 2025 [1]. - Investors are encouraged to contact the Portnoy Law Firm for a complimentary case evaluation and to discuss their legal rights [2]. Group 2: Allegations Against enCore Energy - The lawsuit alleges that enCore Energy lacked effective internal controls over financial reporting, which led to an inability to capitalize certain exploratory and development costs according to U.S. GAAP [3]. - enCore Energy reported a net loss of $61.3 million for fiscal 2024, more than double the $25.6 million loss from the previous fiscal year, attributing part of this increase to the inability to capitalize certain costs [4]. - Following the disclosure of these financial results and the identification of a "material weakness" in internal controls, enCore Energy's stock price fell by over 46% [4].

Core Points - A class action securities lawsuit has been filed against enCore Energy Corp. for alleged securities fraud affecting investors between March 28, 2024, and March 2, 2025 [1][2] - The complaint claims that enCore Energy lacked effective internal controls over financial reporting, could not capitalize certain exploratory and development costs under GAAP, and that these issues led to substantially increased net losses [2] - Defendants' positive statements regarding the company's business and prospects were allegedly materially misleading and lacked a reasonable basis [2] Next Steps - Investors who suffered losses during the specified timeframe have until May 13, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require serving as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States [4]

Core Viewpoint - enCore Energy Corp. is facing a class-action lawsuit for allegedly misleading investors and failing to disclose significant financial vulnerabilities, with a lead plaintiff deadline set for May 13, 2025 [1][2] Group 1: Lawsuit Details - The class period for the lawsuit is from March 28, 2024, to March 2, 2025, and it is formally titled Zhongjian v. enCore Energy Corp. [2] - The lawsuit claims that enCore and its executives violated the Securities Exchange Act of 1934 by making false or incomplete statements regarding the company's financial health [2][3] Group 2: Financial Performance - enCore reported a net loss of $61.3 million for fiscal 2024, which is more than double the $25.6 million loss from the previous year [4] - The company attributed the increased losses to its inability to capitalize certain costs under U.S. GAAP, which would have been permissible under IFRS [4] Group 3: Internal Controls and Leadership Changes - The lawsuit alleges that enCore lacked robust internal controls over financial reporting and identified a "material weakness" in its internal controls, particularly in risk assessment and information flow [3][4] - Following the financial disclosures, enCore experienced a leadership change, with CEO Paul Goranson resigning and Robert Willette appointed as Acting CEO [5] Group 4: Market Reaction - enCore's share price fell by more than 46% after the announcements regarding the financial losses and leadership changes, resulting in significant value loss for investors [6]