Achieves Module Utilization Record with
Continuous Runtime of Over Four Days
Aqua Metals, Inc. (NASDAQ: AQMS) (“Aqua Metals” or the “Company”),
which is reinventing lead recycling with its AquaRefining™
technology, today announced financial and operational results for
its third quarter ended September 30, 2018.
“We have made substantial progress since beginning commercial
operations of our revolutionary AquaRefinery in June,” commented
Steve Cotton, President of Aqua Metals. “We recently
announced near steady state production of our initial four
AquaRefining modules and have been running one to two modules at a
time, with each module now regularly operating over 20 hours per
day and producing 100 kg per hour or over two metric tons of
AquaRefined lead per day. We continue to make adjustments and have
recently improved utilization, including record runtime of a module
for over four days. We are laser focused on completing the
infrastructure and operational improvements to recover water and
more efficiently recycle our chemical feedstock and thereby improve
our contribution margin for AquaRefined lead. With Phase One
testing complete, equipment installation is underway. Once we
are conserving enough electrolyte along with completing planned
plant improvements to achieve a neutral to positive contribution
margin, expected by the end of the year or early in the first
quarter, we will be positioned to scale the plant and bring
additional modules on line.”
Third Quarter 2018 ResultsDuring the three
months ended September 30, 2018, the Company recognized revenue of
$1.2 million compared to sales of $0.6 million in the third quarter
of 2017 and sales of $0.5 million in the second quarter of 2018.
Contributing to the nearly doubling of sales in the quarter was the
introduction and growth of AquaRefined lead, which during the
quarter represented 21% of total sales. There were no
previous sales of pure AquaRefined lead prior to the third quarter
of 2018, marking a key transition for Aqua Metals whereby it is now
deriving revenue from its own products. The Company continues
to sell metallics, lead compounds and plastics from lead acid
batteries (LABs). Sales of these constituent components of LABs
began in April 2017 as the Company commenced testing its
non-AquaRefining infrastructure.
The Company had an operating loss of $8.4 million for the three
months ended September 30, 2018 compared to an operating loss of
$5.8 million for the three months ended September 30, 2017.
The third quarter of 2018 saw continued planned expenses associated
with further improvements of the AquaRefining process and other
areas of the plant from operational learnings. The net loss for the
third quarter of 2018 was $9.3 million, or ($0.24) per diluted
share, compared to a net loss of $6.3 million, or ($0.31) per
diluted share, in the third quarter of 2017.
For the nine months ended September 30, 2018, the Company
recognized revenue of $3.4 million and had an operating loss of
$24.6 million compared to $1.2 million of revenue and an operating
loss of $18.3 million in the prior year period. The net loss for
the first nine months of 2018 was $26.7 million, or ($0.82) per
diluted share, compared to a net loss of $19.5 million, or ($0.99)
per diluted share, for the first nine months of 2017.
As of September 30, 2018, the company had $28.8 million in cash
and cash equivalents.
The Company has recently strengthened its management team to
support expanded operations and commercialization of
AquaRefining. In late August it hired Terri Bradfield as Vice
President of Human Resources and recently promoted Sam Mohanta to
Vice President of Engineering from Director of Process Engineering
and David Regan to Senior Director of Commercial from Director,
Marketing & Business Development. This week, the Company
announced the addition of Judd Merrill, CPA, as Chief Financial
Officer. These individuals are well suited to help support
the Company through its strategic transformation from
commercialization of the first AquaRefinery to a capital light
expansion model of deploying AquaRefining with existing and
prospective partners.
“This is an exciting time for Aqua Metals,” added Cotton.
“In Q3, we transitioned to continuous daily production of
AquaRefined lead and now have our core product in its final ingot
form at industry leading 99.996+% purity. We continue to make
enhancements to improve module runtime and we anticipate continued
growth in utilization in the coming weeks and months. In addition
to our efforts to improve production, we are also focused on
improving contribution and gross margins to unlock rational scaling
of production. As we work hard to complete the electrolyte
management upgrades in the fourth quarter as part of Phase One of
our capital improvements, estimated to take us up to 75% of our
target for electrolyte recapture, we have also already begun
testing related to Phase Two, which we anticipate will complete the
remaining 25% in 2019. We also recently announced the
commissioning of our ingot line and are now equipped to ship all
AquaRefined lead, and soon additional lead from metallics, in ingot
form directly to battery manufacturing facilities.”
“We also have plans to further improve plant economics by
processing a proportion of the metallic lead we recover from
breaking batteries. By increasing the proportion of finished lead,
for which we can receive a premium over LME, we have the potential
to unlock further contribution margin. We are also working with
prospective lead buyers who are seeking ultra-pure lead for a
multitude of applications and for which we could receive even
higher premiums.”
Cotton concluded, “Finally, as we continue our commercialization
efforts, our 12-month plan also includes the pursuit and evaluation
of strategic relationships including licensing or co-processing
relationships with existing partners and the licensing of our
technology and our capability to provision our equipment and
services on a global stage to our existing and potential strategic
partners.”
Conference Call and Webcast
Aqua Metals will hold a conference call today, Wednesday
November 7, 2018 at 1:30 p.m. PDT (4:30 p.m. EDT) to discuss these
results and corporate developments. Interested parties are
invited to listen to the call live over the Internet at
https://ir.aquametals.com/ir-calendar. The live call is also
available by dialing (855) 327-6837 or for international callers
(778) 331-2160. A replay of the teleconference will be
available on https://ir.aquametals.com/ir-calendar. A replay
will also be available until December 7, 2018 by dialing (844)
512-2921 or (412) 317-6671 and using pin number 10005832.
About Aqua Metals Aqua Metals, Inc.
(NASDAQ:AQMS) is reinventing lead recycling with its patented
AquaRefining™ technology. Unlike smelting, AquaRefining is a room
temperature, water-based process that emits less pollution. The
modular systems are intended to allow the Company to vastly reduce
environmental impact and scale lead acid recycling production
capacity by licensing the AquaRefining technology to partners. This
would meet growing demand for lead to power new applications
including stop/start automobile batteries which complement the
vehicle’s main battery, Internet data centers, alternative energy
applications including solar, wind, and grid scale storage. Aqua
Metals is based in McCarran, Nevada, and has built its first
recycling facility in Nevada’s Tahoe Reno Industrial Complex. To
learn more, please visit www.aquametals.com.
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” and variations of
such words or similar expressions that predict or indicate future
events or trends, or that do not relate to historical
matters. The forward looking statements in this release
include the strength and efficacy of Aqua Metals’ portfolio of
patent applications and issued patents, the lead acid battery
recycling industry, the future of lead acid battery recycling via
traditional smelters, the Company’s development of its commercial
lead acid battery recycling facilities and the quality and
efficiency of the Company’s proposed lead acid battery recycling
operations. 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 the Company may not be able to produce and market
AquaRefined lead on a commercial basis or, if the Company
achieves commercial operations, that such operations will be
profitable, (2) the fact that the Company only recently commenced
production of AquaRefined lead and has not generated any
significant revenue from the sale of AquaRefined lead to date, thus
subjecting the Company to all of the risks inherent in an
early-stage company ; (3) the risk no further patents will be
issued on the Company’s patent applications or any other
application that it may file in the future and that those patents
issued to date and any patents issued in the future will be
sufficiently broad to adequately protect the Company’s technology,
(4) the risk that the Company’s initial patents and any other
patents that may be issued to it may be challenged, invalidated, or
circumvented, (5) risks related to Aqua Metals’ ability to raise
sufficient capital, as and when needed, to develop and operate its
recycling facilities and fund continuing losses from operations as
the Company endeavors to achieve profitability; (6) changes in the
federal, state and foreign laws regulating the recycling of lead
acid batteries; (7) the Company’s ability to protect its
proprietary technology, trade secrets and know-how and (8) those
other risks disclosed in the section “Risk Factors” included in the
Company’s Quarterly Report on Form 10-Q filed on November 7, 2018.
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.
Aqua Metals,
Inc.Condensed Consolidated Balance
Sheets(in
thousands)(unaudited)
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
December 31,
2017 |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
28,772 |
|
|
$ |
22,793 |
|
|
Accounts
receivable |
|
|
861 |
|
|
|
882 |
|
|
Inventory |
|
|
1,089 |
|
|
|
1,239 |
|
|
Prepaid
expenses and other current assets |
|
|
322 |
|
|
|
770 |
|
|
Total
current assets |
|
|
31,044 |
|
|
|
25,684 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
46,411 |
|
|
|
45,733 |
|
|
Intellectual property, net |
|
|
1,318 |
|
|
|
1,461 |
|
|
Other
assets |
|
|
1,574 |
|
|
|
1,564 |
|
|
Total
non-current assets |
|
|
49,303 |
|
|
|
48,758 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
80,347 |
|
|
$ |
74,442 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,874 |
|
|
$ |
1,436 |
|
|
Accrued
expenses |
|
|
2,020 |
|
|
|
1,801 |
|
|
Deferred
rent, current portion |
|
|
203 |
|
|
|
192 |
|
|
Notes
payable, current portion |
|
|
323 |
|
|
|
405 |
|
|
Convertible note payable, current portion |
|
|
3,029 |
|
|
|
- |
|
|
Total
current liabilities |
|
|
7,449 |
|
|
|
3,834 |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
rent, non-current portion |
|
|
644 |
|
|
|
771 |
|
|
Asset
retirement obligation |
|
|
733 |
|
|
|
701 |
|
|
Notes
payable, non-current portion |
|
|
8,669 |
|
|
|
8,839 |
|
|
Convertible note payable, non-current portion |
|
|
- |
|
|
|
1,332 |
|
|
Total
liabilities |
|
|
17,495 |
|
|
|
15,477 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
Common
stock and Additional paid-in capital |
|
|
144,416 |
|
|
|
113,807 |
|
|
Accumulated deficit |
|
|
(81,564 |
) |
|
|
(54,842 |
) |
|
Total
stockholders' equity |
|
|
62,852 |
|
|
|
58,965 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
80,347 |
|
|
$ |
74,442 |
|
|
|
|
|
|
|
|
|
|
|
|
Aqua Metals,
Inc.Condensed Consolidated Statements of
Operations(in thousands, except share and per
share data)(unaudited)
Aqua Metals, Inc. |
|
|
|
|
|
|
|
|
Income Statement tables
for Earnings Release |
|
|
|
|
Three months ended September 30 |
|
Nine months ended September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
1,169 |
|
|
$ |
589 |
|
|
$ |
3,378 |
|
|
$ |
1,192 |
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
Cost of
product sales |
|
|
6,453 |
|
|
|
3,140 |
|
|
|
16,489 |
|
|
|
5,671 |
|
Research
and development cost |
|
|
967 |
|
|
|
1,367 |
|
|
|
3,645 |
|
|
|
6,538 |
|
General
and administrative expense |
|
|
2,174 |
|
|
|
1,925 |
|
|
|
7,862 |
|
|
|
4,897 |
|
Impairment charge |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,411 |
|
Total
operating expense |
|
|
9,594 |
|
|
|
6,432 |
|
|
|
27,996 |
|
|
|
19,517 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(8,425 |
) |
|
|
(5,843 |
) |
|
|
(24,618 |
) |
|
|
(18,325 |
) |
|
|
|
|
|
|
|
|
|
Other income and
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(919 |
) |
|
|
(454 |
) |
|
|
(2,225 |
) |
|
|
(1,250 |
) |
Interest
and other income |
|
|
81 |
|
|
|
7 |
|
|
|
123 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
Total
other expense, net |
|
|
(838 |
) |
|
|
(447 |
) |
|
|
(2,102 |
) |
|
|
(1,222 |
) |
|
|
|
|
|
|
|
|
|
Loss
before income tax expense |
|
|
(9,263 |
) |
|
|
(6,290 |
) |
|
|
(26,720 |
) |
|
|
(19,547 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,263 |
) |
|
$ |
(6,290 |
) |
|
$ |
(26,722 |
) |
|
$ |
(19,549 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
38,779,710 |
|
|
|
20,265,020 |
|
|
|
32,553,939 |
|
|
|
19,732,372 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.99 |
) |
|
|
|
|
|
|
|
|
|
Contact: Alison Ziegler, Darrow Associates (201)
220-2678aziegler@darrowir.com
Aqua Metals (NASDAQ:AQMS)
Historical Stock Chart
From Apr 2024 to May 2024
Aqua Metals (NASDAQ:AQMS)
Historical Stock Chart
From May 2023 to May 2024