Aqua Metals, Inc. (NASDAQ: AQMS) (“Aqua Metals” or the “Company”),
a pioneer in sustainable lithium battery recycling, today announced
financial results and provided a business update for the third
quarter ended September 30, 2023.
Third Quarter and Recent
Highlights:
- Bolstered financial strength with successful balance sheet
transactions, including an equity raise, and strategic investment
and partnership with Yulho Co., Ltd., which provided $25 million in
gross proceeds.
- Supplied Dragonfly Energy with battery-grade, sustainably
recycled lithium hydroxide, which was used to manufacture a
successfully cycle-tested lithium-based battery cell.
- Advanced the ongoing strategic partnership with 6K Energy and
signed a multi-part memorandum of understanding (MOU) regarding the
companies’ plans for co-located facilities to build the first
circular supply chain of critical minerals for lithium battery
production in the U.S.
- Completed a lifecycle analysis of the Li AquaRefining process
with independent engineering firm ICF International demonstrating
the superior environmental performance, cost savings, and waste
reductions compared to standard hydrometallurgical battery
recycling.
- Company executives attended a trade delegation to Lower Saxony,
Germany to explore opportunities for recycling and critical
minerals with government leaders and regional companies.
- Aqua Metals received a Leader in Sustainability award from the
Economic Development Authority of Western Nevada (EDAWN), along
with commendations from U.S. Senator Catherine Cortez-Masto and
Representative Mark Amodei, and recognition from NV Lt. Governor
Stavros Anthony for the company’s sustainable lithium recycling
solution.
- As part of the equity investment and partnership with Yulho,
Steve Cotton has joined the board of Yulho and Dr. Sung Yi has
joined the board of Aqua Metals. Dr. Sung Yi brings 30 years of
experience in battery and fuel cell engineering and currently
serves as Professor Emeritus for Chemical Engineering and
Collaboration Professor for Battery Engineering at Hanyang
University, Seoul, South Korea.
“Aqua Metals continues to solidify its standing
as a forerunner in sustainable lithium battery recycling in North
America, with a proven technology, a growing circular supply chain
ecosystem and partnerships with key players,” commented Steve
Cotton, President and Chief Executive Officer of Aqua Metals. “We
have surpassed a number of milestones, substantially strengthened
our balance sheet, and based upon the successful recovery of all
critical battery metals in our pilot operation, we are progressing
the build-out of our first commercial-scale facility – the Sierra
ARC (AquaRefining Campus) – where we expect to be processing up to
10,000 tonnes-per-year of input feedstock equating to roughly
100,000 EV battery packs when at full scale.”
Mr. Cotton continued, “Our growing partnership
with Dragonfly Energy, resulting in the successful testing of a
lithium-based battery cell using our recycled lithium hydroxide, is
a tangible testament to our progress towards commercialization.
Furthermore, our collaboration with 6K Energy to pioneer the first
circular supply chain of critical minerals for lithium battery
production in the U.S. underscores our commitment to innovation.
Building upon our technological and commercial achievements, we
successfully bolstered our balance sheet with strategic and
institutional investments that have infused approximately $25
million in gross proceeds, executed with no structure or warrants,
fortifying our foundation for further growth and qualifying our
balance sheet for our intended further non-dilutive financing
through the company’s second USDA loan guarantee for $25 million
and/or other rational debt instruments. We believe the closed and
expected funding will allow us to see through the completion of
Sierra ARC Phase I with the potential to generate up to $60 million
in annual revenues based on average metals prices. Recently, the
recognition and commendations we've received from entities like
EDAWN and distinguished government officials serve as validations
of our groundbreaking approach. With a stronger balance sheet and
significant strides in commercialization, we believe we're not just
leading, but setting new standards for the sustainable future of
lithium battery recycling.”
2023 Q3 Financial Results
During the third quarter of 2023, Aqua Metals
continued to focus on its ability to recycle metals found in
lithium-ion batteries. The Company was in limited commercial-scale
production during the third quarter of 2023 and provided sample
production-representative metals produced to multiple announced and
unannounced counterparties and as a result, generated no
significant revenue.
Plant operations increased by 112.5% during the
quarter to approximately $1.8 million compared to approximately
$0.8 million in Q3 2022.
Research and development decreased approximately
21% compared to the quarter ended September 30, 2022.
General and administrative expenses increased
approximately 7.8% for the three months ended September 30, 2023,
compared to the three months ended September 30, 2022.
For the third quarter 2023, the Company had an
operating loss of $4.9 million, compared to an operating loss of
$3.9 million for the third quarter 2022. The net loss for the third
quarter of 2023 was $4.5 million, or $(0.04) per basic and diluted
share, compared to a net loss of $3.9 million, or $(0.05) per basic
and diluted share, for the third quarter of 2022.
As of September 30, 2023, the Company had $25.6
million in cash and cash equivalents. Total cash provided by
operations for the nine months ended September 30, 2023, was $2.2
million, related to the sale of a property located in Tahoe-Reno
Industrial Center.
Conference Call and Webcast
The Company will hold a conference call to
discuss results and corporate developments today at 4:30 p.m. ET.
Investors can access the live call by dialing 877-407-9708
toll-free or 201-689-8259 for international callers. A live webcast
and replay of the earnings conference call will be available via
the company website and can be found
at https://ir.aquametals.com/ir-calendar. A telephone replay
will be available until May 8, 2024, by dialing 877-660-6853 or
201-612-7415 and using pin number 137415427.
Additional Resources
Learn more about Aqua Metals’ Li AquaRefining
Pilot and see updates at
www.aquametals.com/pilot-recycling-hub.
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing
metals recycling with its patented AquaRefining™ technology. The
company is pioneering a sustainable recycling solution for
materials strategic to energy storage and electric vehicle
manufacturing supply chains. AquaRefining™ is a low-emissions,
closed-loop recycling technology that replaces polluting furnaces
and hazardous chemicals with electricity-powered electroplating to
recover valuable metals and materials from spent batteries with
higher purity, lower emissions, and minimal waste. Aqua Metals is
based in Reno, NV and operates the first sustainable lithium
battery recycling facility at the company’s Innovation Center in
the Tahoe-Reno Industrial Center.
To learn more, please visit
www.aquametals.com.
Aqua Metals Social Media
Aqua Metals has used, and intends to continue
using, its investor relations
website (https://ir.aquametals.com), in addition to its
Twitter, LinkedIn and YouTube accounts
at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.linkedin.com/company/aqua-metals-limited
and https://www.youtube.com/@AquaMetals respectively, as means of
disclosing material non-public information and for complying with
its disclosure obligations under Regulation FD.
Safe Harbor
This press release contains forward-looking
statements concerning Aqua Metals, Inc. Forward-looking statements
include, but are not limited to, our plans, objectives,
expectations and intentions and other statements that contain words
such as "expects," "contemplates," "anticipates," "plans,"
"intends," "believes", "estimates", "potential" and variations of
such words or similar expressions that convey the uncertainty of
future events or outcomes, or that do not relate to historical
matters. The forward-looking statements in this press release
include our expectations for our pilot recycling plant, our ability
to recycle lithium-ion batteries and the expected benefits of
recycling lithium-ion batteries. Those forward-looking statements
involve known and unknown risks, uncertainties, and other factors
that could cause actual results to differ materially. Among those
factors are: (1) the risk that we may not be able to successfully
negotiate and conclude a definitive license agreement with Yulho or
a pilot facility agreement with 6K, (2) even if we are to conclude
a definitive agreements with Yulho and 6K, the risk that we may not
achieve the expected benefits from such relationships; (3) the
risk that we may not be able to acquire the funding necessary to
develop our recently acquired five-acre campus; (4) the risk that
we may not be able to develop the recycling facility on the
five-acre campus within the expected time or at all; (5) even if we
are able to develop the recycling facility, the risk that we may
not realize the expected benefits; (6) the risk that licensees may
refuse or be slow to adopt our AquaRefining process as an
alternative in spite of the perceived benefits of AquaRefining; (7)
the risk that we may not realize the expected economic benefits
from any licenses we may enter into; and (8) those other risks
disclosed in the section "Risk Factors" included in our Quarterly
Report on Form 10-Q filed on November 8, 2023. Aqua Metals cautions
readers not to place undue reliance on any forward-looking
statements. The Company does not undertake and specifically
disclaims any obligation to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
except as required by law.
Contact Information:
Investor RelationsBob Meyers
& Rob FinkFNK IR646-878-9204aqms@fnkir.com
MediaJennifer Johnson
AvrilWarner Communications917-982-9012jennifer@warnerpr.com
Source: Aqua Metals
AQUA METALS, INC.Condensed Consolidated Balance Sheets -
Unaudited(in thousands, except share and per share amounts) |
|
|
September 30, 2023 |
|
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
25,598 |
|
|
$ |
7,082 |
|
Accounts receivable |
|
|
76 |
|
|
|
12 |
|
Lease receivable |
|
|
— |
|
|
|
15,527 |
|
Inventory |
|
|
891 |
|
|
|
278 |
|
Assets held for sale |
|
|
— |
|
|
|
47 |
|
Prepaid expenses and other current assets |
|
|
172 |
|
|
|
263 |
|
Total current assets |
|
|
26,737 |
|
|
|
23,209 |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
12,387 |
|
|
|
7,343 |
|
Intellectual property, net |
|
|
326 |
|
|
|
461 |
|
Investment in LINICO |
|
|
2,000 |
|
|
|
2,000 |
|
Other assets |
|
|
532 |
|
|
|
489 |
|
Total non-current assets |
|
|
15,245 |
|
|
|
10,293 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
41,982 |
|
|
$ |
33,502 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
987 |
|
|
$ |
1,075 |
|
Accrued expenses |
|
|
2,256 |
|
|
|
1,780 |
|
Building purchase deposit |
|
|
— |
|
|
|
3,250 |
|
Lease liability, current portion |
|
|
312 |
|
|
|
307 |
|
Note payable, current portion |
|
|
34 |
|
|
|
5,899 |
|
Total current liabilities |
|
|
3,589 |
|
|
|
12,311 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Lease liability, non-current portion |
|
|
38 |
|
|
|
275 |
|
Note payable, non-current portion |
|
|
2,916 |
|
|
|
— |
|
Total liabilities |
|
|
6,543 |
|
|
|
12,586 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(see Note 13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock; $0.001 par value; 200,000,000 shares authorized;
108,200,351 and 107,771,785, shares issued and outstanding as of
September 30, 2023, respectively and 79,481,751 shares issued and
outstanding as of December 31, 2022 |
|
|
108 |
|
|
|
79 |
|
Additional paid-in capital |
|
|
249,036 |
|
|
|
220,114 |
|
Accumulated deficit |
|
|
(213,189 |
) |
|
|
(199,277 |
) |
Treasury stock, at cost; common shares: 428,566 and nil as of
September 30, 2023 and December 31, 2022, respectively |
|
|
(516 |
) |
|
|
— |
|
Total stockholders’ equity |
|
|
35,439 |
|
|
|
20,916 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
41,982 |
|
|
$ |
33,502 |
|
AQUA METALS, INC.Condensed Consolidated Statements of Operations -
Unaudited(in thousands, except share and per share amounts) |
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
25 |
|
|
$ |
— |
|
|
$ |
25 |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant operations |
|
|
1,770 |
|
|
|
833 |
|
|
|
4,316 |
|
|
|
3,026 |
|
Research and development cost |
|
|
389 |
|
|
|
490 |
|
|
|
1,359 |
|
|
|
1,561 |
|
General and administrative expense |
|
|
2,815 |
|
|
|
2,611 |
|
|
|
8,670 |
|
|
|
7,615 |
|
Total operating expense |
|
|
4,974 |
|
|
|
3,934 |
|
|
|
14,345 |
|
|
|
12,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(4,949 |
) |
|
|
(3,934 |
) |
|
|
(14,320 |
) |
|
|
(12,198 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property, plant and equipment |
|
|
— |
|
|
|
5 |
|
|
|
23 |
|
|
|
595 |
|
Interest expense |
|
|
(87 |
) |
|
|
(9 |
) |
|
|
(518 |
) |
|
|
(22 |
) |
Interest and other income |
|
|
489 |
|
|
|
53 |
|
|
|
903 |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income, net |
|
|
402 |
|
|
|
49 |
|
|
|
408 |
|
|
|
739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
expense |
|
|
(4,547 |
) |
|
|
(3,885 |
) |
|
|
(13,912 |
) |
|
|
(11,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,547 |
) |
|
$ |
(3,885 |
) |
|
$ |
(13,912 |
) |
|
$ |
(11,461 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
101,617,856 |
|
|
|
77,402,763 |
|
|
|
89,103,988 |
|
|
|
74,871,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
|
$ |
(0.04 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.15 |
) |
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