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13. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Summarized quarterly results for the years ended December 31, 2015 and 2014 (in thousands, except per
share amounts):
For the year ended December 31, 2015
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Total revenue
$ - $ - $ - $ -
Net loss
$ (2,534) $ (2,572) $ (2,097) $ (2,475)
Basic and diluted loss per share
$ (0.05) $ (0.05) $ (0.04) $ (0.05)
For the year ended December 31, 2014
4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Total revenue
$ - $ - $ - $ -
Net loss
$ (2,937) $ (3,601) $ (3,060) $ (4,431)
Basic and diluted loss per share
$ (0.06) $ (0.08) $ (0.06) $ (0.09)
14. SUBSEQUENT EVENTS
On January 8, 2016, Rare Element Resources, Inc., a wholly owned subsidiary of the Company, entered
into an amended consulting agreement with a former executive to include a monthly consulting retainer of $23. The
modified agreement includes a contingent payout based upon the former executive’s salary upon termination, or
$209, less any consulting fees paid in the first three months of 2016, should two or more of the remaining executive
team members receive severance payments in accordance with their agreements.
On January 11, 2016, Rare Element Resources, Inc., a wholly owned subsidiary of the Company, entered
into an Amendment to Severance Compensation Agreement with each of Randall J. Scott, the Company’s President
and Chief Executive Officer, Paul H. Zink, the Company’s Senior Vice President and Chief Financial Officer, and
George Byers, the Company’s Vice President of Government and Community Relations. On January 18, 2016, Rare
Element Resources, Inc. entered into an Amendment to Employment Agreement with Jaye T. Pickarts, the
Company’s Chief Operating Officer. Pursuant to each amendment, any potential severance compensation payable
to the officer under the applicable Severance Compensation Agreement or Employment Agreement as a result of a
“qualifying termination” prior to a “change in control” (in each case, as defined in the applicable Severance
Compensation Agreement or Employment Agreement) will be reduced by the amount of salary paid to such officer
during his employment with the Company in the first three months of 2016. This potential decrease in severance
compensation would not reduce any severance compensation payable as a result of a qualifying termination on or
after a change in control, or if, in the discretion of the Board of Directors, the Company achieves key objectives in
the first quarter of 2016.
On February 1, 2016, the Company announced its intention to voluntarily delist its common shares from
the NYSE MKT and seek to have its common shares traded on the OTC marketplace. The Company’s common
shares were listed on the NYSE MKT through February 26, 2016 and since February 29, 2016, have been trading on
the OTCQB Venture Marketplace under the ticker symbol “REEMF.”
On March 18, the Company notified certain executive officers and employees of their termination of
employment, subject to benefits contained within their Severance and Compensation Agreements. The liability
associated with the payments upon a qualified termination totals $974, which is to be paid on or before April 30,
2016. For further details regarding compensation agreements, see Part III, Item 11 Employment and Severance
Compensation Agreements. The Company entered into consulting agreements with several of its departing
executives and employees to allow the Company to meet its objectives.
On March 18, the Company entered into a Second Amendment to Severance Compensation Agreement
with Randall J. Scott, the Company’s President and Chief Executive Officer, which extended the term of his January
11, 2016 amendment through June 30, 2016.