Aqua Metals Advances Circular Supply Chain Strategy with Sierra ARC Buildout, Commercial Partnerships, and $40M Capital Infusion, Reports First Quarter 2024 Results
May 15 2024 - 3:05PM
Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable
lithium-ion battery recycling, today reported financial results and
provided an operational update, for the first quarter ended March
31, 2024.
First Quarter and Recent
Highlights:
- Executed non-binding Term Sheet for
up to $33 million loan from one of the largest privately held
companies in the world that invests in decarbonization initiatives
and closed an additional $7 million in qualifying equity to apply
cash to the balance sheet for the loan. Definitive loan Agreement
expected by July. This capital infusion is expected to complete
Phase One of the Sierra ARC buildout and commissioning in
2024.
- Advanced the multi-part, strategic
partnership with 6K Energy and executed an off-take agreement,
representing a first-of-its-kind collaboration designed to address
the escalating demand for recycling Li-ion batteries by offering
manufacturers access to low-cost, low-carbon, domestically produced
critical materials – from a recycled source.
- Enhanced Sierra ARC feedstock and
offtake diversity and economics through additional agreements with
black mass producers.
- Awarded an economic incentive
package of approximately $2.2 million that provides partial tax
relief toward $35 million worth of equipment, building, and land
improvements already underway at the Company’s Sierra AquaRefining™
Campus (ARC).
- Awarded a $371,000 grant from the
Department of Energy as a sub-contractor to a critical minerals
recovery initiative led by Pennsylvania State University called
Alliance for Critical Mineral Extraction and Production from
Coal-Based Resources for Vitality Enhancement in Domestic Supply
Chains (ACME-REVIVE).
- Won ‘Top Project’ of the year in
the prestigious Environment+Energy Leader Awards program for 2024,
recognizing Aqua Metals’ innovative technology is driving
significant environmental and energy advancements.
“We have made significant progress to date,
advancing our commercial partnerships, progressing the buildout of
our Sierra ARC Phase One commercial facility, achieving
simultaneous 24x5 operations of our pilot plant and fortifying our
capitalization to see through our vision,” commented Steve Cotton,
President and Chief Executive Officer of Aqua Metals. “We expect to
expand and solidify the circular supply chain to provide
lower-cost, decarbonized critical materials to create truly
sustainable and domestically produced Li-ion batteries. Having
already secured a durable supply of black mass to process through
our pilot plant, scaling soon for our Sierra ARC, we are now also
expanding the circular supply chain by advancing our strategic
partnership with 6K Energy. The novel supply agreement will serve
as a model for future engagements, creating a fortuitous loop to
turn spent batteries into new, low-carbon, critical minerals for
manufacturing new batteries right here in the United States.”
“Our continued capitalization also demonstrates
the support and resolve of our shareholders and existing and new
partners as well as our insiders who all participated,” continued
Mr. Cotton. “We have now successfully raised the necessary
qualifying equity capital for the expected loan agreement to close
by July to complete the first phase of the Sierra ARC and
established a new partnership with one of the worlds’ largest
privately held companies. We are helping to advance Nevada as a
leader in the clean energy innovation economy and are confident in
our vision for a sustainable future.”
2024 Q1 Financial ResultsDuring
the first quarter of 2024, Aqua Metals focused on continued
validation of its pilot plant operation. The pilot plant’s purpose
was to test our process for lithium battery recycling and to
provide sample production-representative metals produced to
multiple announced and unannounced counterparties. As a result, the
Company generated no significant revenue in Q1.
Expenses related to plant operations increased
by approximately 107% during the quarter to $2.2 million compared
to approximately $1.1 million in Q1 2023. The increase in plant
operations for the three months ended March 31, 2024, was primarily
due to an increase in payroll and payroll related fees of
approximately $556,000, as we hired additional staff to operate and
train at the pilot facility to be ready to staff the Phase One
commercial plant starting in Q3 2024.
Research and development costs increased
approximately 32% during Q1 2024 compared to Q1 2023. General and
administrative expenses stayed consistent for the three months
ended March 31, 2024, compared to the three months ended March 31,
2023.
For the first quarter 2024, the Company had an
operating loss of $5.8 million, compared to an operating loss of
$4.5 million for the first quarter of 2023. The net loss for the
first quarter of 2024 was $5.8 million, or $(0.05) per basic and
diluted share, compared to a net loss of $4.6 million, or $(0.06)
per basic and diluted share, for the first quarter of 2023.
As of March 31, 2024, the Company had $8.3
million in cash and cash equivalents. Total cash used in operations
for the first three months of 2024 was $4.3 million.
Conference Call and WebcastThe
Company will hold a conference call to discuss results and
corporate developments today at 4:30 p.m. ET. Investors can access
the live conference call at
https://event.webcasts.com/starthere.jsp?ei=1666416&tp_key=6127d88cab or
from the investor relations section of the Company’s website at
https://ir.aquametals.com/. Alternatively, interested parties can
access the audio call by dialing 877-407-9708 (toll-free) or
201-689-8259 (international).
Following the conclusion of the live event, a
replay will be available by dialing 877-660-6853 or 201-612-7415
and using passcode 13745997. The webcast replay will also be
available in the “News / Events” section of the Aqua Metals
website.
About Aqua MetalsAqua 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 MediaAqua
Metals has used, and intends to continue using, its investor
relations website (https://ir.aquametals.com), in addition to its
Twitter, Threads, LinkedIn and YouTube accounts at
https://twitter.com/AquaMetalsInc (@AquaMetalsInc),
https://www.threads.net/@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 HarborThis 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 and
commercial-scale recycling plants, 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 definitive 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 potential 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 risks disclosed in the section "Risk
Factors" are included in our Annual Report on Form 10-K filed on
March 28, 2024. 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
MediaMatt RobertsAqua
Metals775-446-7245matt.roberts@aquametals.com
Source: Aqua Metals
AQUA METALS, INC.Condensed Consolidated Balance Sheets -
Unaudited(in thousands, except share and per share amounts) |
|
|
|
March 31, 2024 |
|
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,294 |
|
|
$ |
16,522 |
|
Note receivable - LINICO |
|
|
450 |
|
|
|
600 |
|
Accounts receivable |
|
|
— |
|
|
|
67 |
|
Inventory |
|
|
1,040 |
|
|
|
929 |
|
Prepaid expenses and other current assets |
|
|
296 |
|
|
|
181 |
|
Total current assets |
|
|
10,080 |
|
|
|
18,299 |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
14,453 |
|
|
|
10,347 |
|
Intellectual property, net |
|
|
236 |
|
|
|
281 |
|
Other assets |
|
|
6,677 |
|
|
|
4,673 |
|
Total non-current assets |
|
|
21,366 |
|
|
|
15,301 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
31,446 |
|
|
$ |
33,600 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,997 |
|
|
$ |
1,836 |
|
Accrued expenses |
|
|
3,231 |
|
|
|
2,467 |
|
Lease liability, current portion |
|
|
253 |
|
|
|
275 |
|
Note payable, current portion |
|
|
2,970 |
|
|
|
35 |
|
Total current liabilities |
|
|
8,451 |
|
|
|
4,613 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Lease liability, non-current portion |
|
|
143 |
|
|
|
— |
|
Note payable, non-current portion |
|
|
— |
|
|
|
2,923 |
|
Total liabilities |
|
|
8,594 |
|
|
|
7,536 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(see Note 12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock; $0.001 par value; 200,000,000 shares authorized;
113,131,561 and 112,674,915, shares issued and outstanding as of
March 31, 2024, respectively and 108,308,661 and 107,880,095,
shares issued and outstanding as of December 31, 2023,
respectively |
|
|
113 |
|
|
|
108 |
|
Additional paid-in capital |
|
|
252,066 |
|
|
|
249,687 |
|
Accumulated deficit |
|
|
(228,967 |
) |
|
|
(223,215 |
) |
Treasury stock, at cost; common shares: 456,646 and 428,566 as of
March 31, 2024 and December 31, 2023, respectively |
|
|
(360 |
) |
|
|
(516 |
) |
Total stockholders’ equity |
|
|
22,852 |
|
|
|
26,064 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
31,446 |
|
|
$ |
33,600 |
|
AQUA METALS, INC.Condensed Consolidated Statements of Operations -
Unaudited(in thousands, except share and per share amounts) |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
Plant operations |
|
$ |
2,209 |
|
|
$ |
1,065 |
|
Research and development cost |
|
|
588 |
|
|
|
445 |
|
Gain on disposal of property, plant and equipment |
|
|
— |
|
|
|
(20 |
) |
General and administrative expense |
|
|
2,995 |
|
|
|
3,006 |
|
Total operating expense |
|
|
5,792 |
|
|
|
4,496 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(5,792 |
) |
|
|
(4,496 |
) |
|
|
|
|
|
|
|
|
|
Other income and
(expense) |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(106 |
) |
|
|
(176 |
) |
Interest and other income |
|
|
146 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
Total other income (expense), net |
|
|
40 |
|
|
|
(110 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(5,752 |
) |
|
$ |
(4,606 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
110,054,605 |
|
|
|
81,285,740 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
|
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
The accompanying notes are an integral part of
these consolidated financial statements.
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