v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 three 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 versus actual results.

The following table summarizes the Company's long-lived assets, which includes mineral interests by geographic region as of June 30, 2026 and December 31, 2025:

 

June 30, 2026

 

 

December 31, 2025

 

United States

 

$

24,082

 

 

$

23,688

 

Brazil

 

 

78

 

 

 

29

 

Total Long-lived assets

 

$

24,160

 

 

$

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 the three and six months ended June 30, 2026 and 2025:

For the three months ended June 30, 2026

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

3,751

 

 

$

815

 

 

$

4,566

 

General and administrative expenses

 

 

16

 

 

 

211

 

 

 

227

 

Depreciation expense

 

 

32

 

 

 

4

 

 

 

36

 

Segment operating loss

 

$

(3,799

)

 

$

(1,030

)

 

$

(4,829

)

Corporate and other expenses

 

 

 

 

 

 

 

 

7,947

 

Interest income

 

 

 

 

 

 

 

 

503

 

Interest expense

 

 

 

 

 

 

 

 

29

 

Foreign exchange gain

 

 

 

 

 

 

 

 

1

 

Change in fair value of SAFE

 

 

 

 

 

 

 

 

(1,216

)

Change in fair value of warrants

 

 

 

 

 

 

 

 

727

 

Loss before income taxes

 

 

 

 

 

 

 

$

(12,790

)

 

For the six months ended June 30, 2026

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

5,616

 

 

$

1,015

 

 

$

6,631

 

General and administrative expenses

 

 

29

 

 

 

534

 

 

 

563

 

Depreciation expense

 

 

54

 

 

 

5

 

 

 

59

 

Segment operating loss

 

$

(5,699

)

 

$

(1,554

)

 

$

(7,253

)

Corporate and other expenses

 

 

 

 

 

 

 

 

10,327

 

Interest income

 

 

 

 

 

 

 

 

630

 

Interest expense

 

 

 

 

 

 

 

 

74

 

Foreign exchange loss

 

 

 

 

 

 

 

 

3

 

Change in fair value of SAFE

 

 

 

 

 

 

 

 

(4,625

)

Change in fair value of warrants

 

 

 

 

 

 

 

 

(7,919

)

Loss before income taxes

 

 

 

 

 

 

 

$

(29,571

)

 

For the three months ended June 30, 2025

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

—

 

 

$

115

 

 

$

115

 

General and administrative expenses

 

 

—

 

 

 

90

 

 

 

90

 

Depreciation expense

 

 

—

 

 

 

2

 

 

 

2

 

Segment operating loss

 

$

—

 

 

$

(207

)

 

$

(207

)

Corporate and other expenses

 

 

 

 

 

 

 

 

179

 

Transaction costs

 

 

 

 

 

 

 

 

157

 

Interest expense

 

 

 

 

 

 

 

 

58

 

Loss before income taxes

 

 

 

 

 

 

 

$

(601

)

 

For the six months ended June 30, 2025

 

United States Mining Operations

 

 

Brazil Mining Operations

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Exploration expenses

 

$

—

 

 

$

165

 

 

$

165

 

General and administrative expenses

 

 

—

 

 

 

202

 

 

 

202

 

Depreciation expense

 

 

—

 

 

 

3

 

 

 

3

 

Segment operating loss

 

$

—

 

 

$

(370

)

 

$

(370

)

Corporate and other expenses

 

 

 

 

 

 

 

 

316

 

Transaction costs

 

 

 

 

 

 

 

 

157

 

Interest expense

 

 

 

 

 

 

 

 

59

 

Loss before income taxes

 

 

 

 

 

 

 

$

(902

)