v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting
13.
Segment Reporting

Operating segments are defined as components of an entity engaged in business activities from which they may recognize revenues and incur expenses, and about which discrete financial information is available and evaluated regularly by the entity's chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company has two reportable segments due to their geographical location: United States Mining Operations and Brazil Mining Operations. Our Brazil Mining Operation is comprised of AMBPL, which primarily operates two sites in Brazil. Our United States Mining Operation is comprised of FRE Australia (and its wholly owned subsidiary Foothills Rare Earths LLC), a consolidated variable interest entity, which operates a site (Project Shiloh) in the state of Georgia located in the United States pursuant to two option agreements. Prior to the acquisition of FRE Australia, the Company had one reportable segment.

The Company’s CODM has been identified as the Chief Executive Officer, who focuses on segment operating loss as the measure of performance to evaluate different segments and to make decisions to allocate resources and evaluate exploration progress. Exploration and evaluation and general and administrative expenses are the significant segment expenses included in the measure of segment operating loss and used to monitor budget version actual results.

The following table summarizes the Company's long-lived assets, which includes mineral interests by geographic region as of March 31, 2026 and December 31, 2025:

 

March 31, 2026

 

 

December 31, 2025

 

United States

 

$

23,858

 

 

$

23,688

 

Brazil

 

 

39

 

 

 

29

 

Total Long-lived assets

 

$

23,897

 

 

$

23,717

 

Assets other than long-lived assets are not regularly reported to the CODM on the segment basis because they consist primarily of cash and assets not specific to a segment.

Significant segment expense included in the measure of segment profit or loss are shown below and reconciled to net loss before taxes for three months ended March 31, 2026 and 2025:

For the three months ended March 31, 2026

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

1,865

 

 

$

200

 

 

$

2,065

 

General and administrative expenses

 

 

13

 

 

 

323

 

 

 

336

 

Depreciation expense

 

 

22

 

 

 

1

 

 

 

23

 

Segment operating loss

 

$

(1,900

)

 

$

(524

)

 

$

(2,424

)

Corporate and other expenses

 

 

 

 

 

 

 

 

2,380

 

Interest income

 

 

 

 

 

 

 

 

127

 

Interest expense

 

 

 

 

 

 

 

 

45

 

Foreign exchange loss

 

 

 

 

 

 

 

 

4

 

Change in fair value of SAFE

 

 

 

 

 

 

 

 

(3,409

)

Change in fair value of warrants

 

 

 

 

 

 

 

 

(8,646

)

Loss before income taxes

 

 

 

 

 

 

 

$

(16,781

)

 

For the three months ended March 31, 2025

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

—

 

 

$

50

 

 

$

50

 

General and administrative expenses

 

 

—

 

 

 

112

 

 

 

112

 

Depreciation expense

 

 

—

 

 

 

1

 

 

 

1

 

Segment operating loss

 

$

—

 

 

$

(163

)

 

$

(163

)

Corporate and other expenses

 

 

 

 

 

 

 

 

137

 

Interest expense

 

 

 

 

 

 

 

 

1

 

Loss before income taxes

 

 

 

 

 

 

 

$

(301

)