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 second
quarter ended June 30, 2023.
Second Quarter and Recent
Highlights:
Commercialization
initiatives
- Announced a
strategic partnership and non-recurring engineering agreement (NRE)
with 6K Energy to develop next-generation low-carbon battery
materials, and received service fee payments.
- Secured more
than 3,000 tons of black mass input material from diverse
suppliers, sufficient to reach commercial-scale processing in 2024,
while advancing further supply agreements and partnerships.
- Established a
strategic partnership with South Korea-based Yulho Co., Ltd. and
Yulho Materials (“Yulho”) to expand geographic footprint through
the proposed licensing of Li AquaRefining™ technology in Yulho
Materials’ plant in South Korea.
Operational initiatives
- Successfully
completed commissioning of the Company’s pilot facility and
transitioned to 24x5 operations. The Company is now recovering the
full suite of valuable metals, including lithium hydroxide, nickel,
cobalt, copper, and manganese dioxide, and scaling pilot operations
to full capacity.
Financial initiatives
- Bolstered
financial strength with several successful balance sheet
transactions, including an equity raise, strategic investment and
partnership with Yulho Co., Ltd., and asset sale of our former
building, which provided over $30 million in capital.
“Our rapid progression from piloting our
technology to commercialization is accelerating,” commented Steve
Cotton, President and Chief Executive Officer of Aqua Metals. “In
the last few months, we have solidified our balance sheet, giving
us sufficient capital to execute our near-term plans, we have
advanced our manufacturing initiatives in our new, five-acre clean
metals recycling campus, and expanded our partner channel and
geographic presence with new strategic agreements.”
Mr. Cotton continued, “In addition to our own
campus recycling facility in Tahoe-Reno, Nevada, we have entered
into negotiations and planning for the co-development of a
state-of-the-art battery metals production pilot facility in
Jackson, TN, supplied by recycled materials from Aqua Metals. Our
strategic partnership with Yulho, which involved a $5 million
strategic equity investment, is expected to result in us granting
Yulho a license to deploy our patented AquaRefining™ technology in
South Korea for up to 100,000 tonnes, or $2 billion of recycled
material, per year. Aqua Metals today is better positioned than it
ever has been, and as evidenced by our growing partner network is
an innovator in the industry, with all the pieces coming together
to help us establish a low-carbon, circular supply of the critical
minerals that power an electrified future.”
2023 Q2 Financial Results
During the second quarter of 2023, Aqua Metals
continued to focus on its ability to recycle metals found in
lithium-ion batteries. The Company was not in commercial-scale
production during the first half of 2023 and, as a result,
generated no revenue during the second quarter.
Plant operations increased by 41% during the
quarter to approximately $1.5 million compared to approximately $1
million in Q2 2022.
Research and development were consistent
compared to the quarter ended June 30, 2022.
General and administrative expenses increased
approximately 19% for the three months ended June 30, 2023,
compared to the three months ended June 30, 2022.
For the second quarter 2023, the Company had an
operating loss of $4.9 million, compared to an operating loss of $4
million for the second quarter of 2022. The net loss for the second
quarter of 2023 was $4.8 million, or $(0.06) per basic and diluted
share, compared to a net loss of $3.2 million, or $(0.04) per basic
and diluted share, for the second quarter of 2022.
As of June 30, 2023, the Company had $6.2
million in cash and cash equivalents. Total cash provided by
operations for the six months ended June 30, 2023, was $5.5
million. Subsequent to the end of the quarter, the Company raised
an additional $25 million through an equity offering and strategic
investment.
Conference Call and Webcast
The Company will hold a conference call to
discuss those 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 February 9, 2024, by dialing 877-660-6853
or 201-612-7415 and using pin number 13740097.
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/channel/UCvxKNWcB69K0t7e337uQ8nQ
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 August 9, 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(in thousands, except share and per share amounts)
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(unaudited) |
|
|
(Note 2) |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,196 |
|
|
$ |
7,082 |
|
Accounts receivable |
|
|
104 |
|
|
|
12 |
|
Lease receivable, current portion |
|
|
— |
|
|
|
15,527 |
|
Inventory |
|
|
631 |
|
|
|
278 |
|
Assets held for sale |
|
|
— |
|
|
|
47 |
|
Prepaid expenses and other current assets |
|
|
183 |
|
|
|
263 |
|
Total current assets |
|
|
7,114 |
|
|
|
23,209 |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
11,951 |
|
|
|
7,343 |
|
Intellectual property, net |
|
|
371 |
|
|
|
461 |
|
Investment in LINICO |
|
|
2,000 |
|
|
|
2,000 |
|
Other assets |
|
|
445 |
|
|
|
489 |
|
Total non-current assets |
|
|
14,767 |
|
|
|
10,293 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
21,881 |
|
|
$ |
33,502 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
776 |
|
|
$ |
1,075 |
|
Accrued expenses |
|
|
1,986 |
|
|
|
1,780 |
|
Building purchase deposit |
|
|
— |
|
|
|
3,250 |
|
Lease liability, current portion |
|
|
316 |
|
|
|
307 |
|
Note payable, current portion |
|
|
34 |
|
|
|
5,899 |
|
Total current liabilities |
|
|
3,112 |
|
|
|
12,311 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Lease liability, non-current portion |
|
|
118 |
|
|
|
275 |
|
Note payable, non-current portion |
|
|
2,908 |
|
|
|
— |
|
Total liabilities |
|
|
6,138 |
|
|
|
12,586 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(see Note 13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock; $0.001 par value; 200,000,000 shares authorized;
84,018,082 and 83,507,450, shares issued and outstanding as of June
30, 2023, respectively and 79,481,751 shares issued and outstanding
as of December 31, 2022 |
|
|
84 |
|
|
|
79 |
|
Additional paid-in capital |
|
|
224,878 |
|
|
|
220,114 |
|
Accumulated deficit |
|
|
(208,642 |
) |
|
|
(199,277 |
) |
Treasury stock, at cost; common shares: 510,632 and nil as of June
30, 2023 and December 31, 2022, respectively |
|
|
(577 |
) |
|
|
— |
|
Total stockholders’ equity |
|
|
15,743 |
|
|
|
20,916 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
21,881 |
|
|
$ |
33,502 |
|
AQUA METALS, INC.Condensed Consolidated
Statements of Operations(in thousands, except share and per share
amounts)(Unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
— |
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant operations |
|
|
1,481 |
|
|
|
1,048 |
|
|
|
2,546 |
|
|
|
2,043 |
|
Research and development cost |
|
|
525 |
|
|
|
521 |
|
|
|
970 |
|
|
|
1,072 |
|
General and administrative expense |
|
|
2,849 |
|
|
|
2,390 |
|
|
|
5,855 |
|
|
|
5,154 |
|
Total operating expense |
|
|
4,855 |
|
|
|
3,959 |
|
|
|
9,371 |
|
|
|
8,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(4,855 |
) |
|
|
(3,955 |
) |
|
|
(9,371 |
) |
|
|
(8,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property, plant and equipment |
|
|
3 |
|
|
|
739 |
|
|
|
23 |
|
|
|
590 |
|
Interest expense |
|
|
(255 |
) |
|
|
(12 |
) |
|
|
(431 |
) |
|
|
(12 |
) |
Interest and other income |
|
|
348 |
|
|
|
62 |
|
|
|
414 |
|
|
|
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income, net |
|
|
96 |
|
|
|
789 |
|
|
|
6 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
expense |
|
|
(4,759 |
) |
|
|
(3,166 |
) |
|
|
(9,365 |
) |
|
|
(7,574 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,759 |
) |
|
$ |
(3,166 |
) |
|
$ |
(9,365 |
) |
|
$ |
(7,576 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
84,184,884 |
|
|
|
75,215,009 |
|
|
|
82,743,345 |
|
|
|
73,584,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
|
$ |
(0.06 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
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