Aqua Metals Advances Circular Supply Chain Strategy with Sierra ARC Buildout, Commercial Partnerships, and $40M Capital Infusion, Reports First Quarter 2024 Results
Aqua Metals has made significant strides in its circular supply chain strategy, bolstered by a $40M capital infusion. The company reported its first-quarter 2024 results, highlighting a $7M equity raise and a $33M non-binding loan term sheet with a major private company. This funding will complete Phase One of the Sierra ARC buildout in 2024.
Key developments include a strategic partnership with 6K Energy, an economic incentive package worth $2.2M, and a $371,000 DOE grant. Despite these achievements, Aqua Metals had no significant revenue in Q1 2024, with operating expenses up by 107% to $2.2M. The company posted an operating loss of $5.8M, compared to $4.5M in Q1 2023. General and administrative costs remained steady, and the net loss per share was $(0.05), slightly better than $(0.06) in Q1 2023. The company had $8.3M in cash as of March 31, 2024.
- Secured non-binding loan term sheet for up to $33 million from a major private company.
- Closed additional $7 million equity raise, enhancing balance sheet.
- Strategic partnership and offtake agreement with 6K Energy to recycle Li-ion batteries.
- Received $2.2 million economic incentive package for Sierra ARC improvements.
- Awarded $371,000 DOE grant as part of critical minerals recovery initiative.
- Won 'Top Project' award in the 2024 Environment+Energy Leader Awards.
- No significant revenue generated in Q1 2024.
- Increased operating expenses by 107% to $2.2 million in Q1 2024.
- Operating loss of $5.8 million in Q1 2024, up from $4.5 million in Q1 2023.
- Net loss of $5.8 million or $(0.05) per share, compared to $(0.06) in Q1 2023.
- Total cash used in operations for the first three months of 2024 was $4.3 million.
Insights
Financial Performance: Aqua Metals reported an operating loss of
Capital Infusion: The company raised
Cash Position: As of March 31, 2024, Aqua Metals reported
Strategic Partnerships: The collaboration with 6K Energy to offer a low-carbon, domestically produced critical materials solution is a significant step towards addressing the increasing demand for Li-ion battery recycling. This partnership strengthens Aqua Metals' market position and aligns with global decarbonization initiatives, potentially attracting further investment from stakeholders focused on environmental sustainability.
Economic Incentives: The economic incentive package worth approximately
Long-Term Outlook: While there is no significant revenue reported for Q1 2024, the strategic initiatives and partnerships indicate a strong foundation for future growth. The focus on sustainable battery recycling aligns with broader industry trends, potentially leading to long-term gains as the market for recycled Li-ion batteries expands.
Industry Trends: The global push towards decarbonization and the circular economy is creating a favorable environment for companies like Aqua Metals. The strategic partnerships and off-take agreements position the company well within these macroeconomic trends. By ensuring a stable supply of black mass and low-carbon critical materials, Aqua Metals is addressing key supply chain challenges in the battery manufacturing industry.
Competitive Position: Aqua Metals' innovative recycling technology and strategic partnerships, such as the one with 6K Energy, provide a competitive edge. The company's focus on producing low-cost, low-carbon critical materials domestically is likely to appeal to manufacturers looking to reduce their carbon footprint and reliance on foreign sources.
Investor Considerations: Retail investors should consider the long-term potential of Aqua Metals' initiatives. While short-term financial performance shows losses, the strategic advancements and partnerships suggest a strong future growth trajectory. Investors should weigh the near-term financial challenges against the long-term market opportunities in the sustainable battery recycling sector.
Commences
RENO, Nev., May 15, 2024 (GLOBE NEWSWIRE) -- 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 Results
During 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
Research and development costs increased approximately
For the first quarter 2024, the Company had an operating loss of
As of March 31, 2024, the Company had
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 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 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, 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 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 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 Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com
Media
Matt Roberts
Aqua Metals
775-446-7245
matt.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; | 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.
FAQ
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