Aqua Metals Announces Q1 2022 Results
Aqua Metals announced its Q1 2022 results, highlighting progress in lithium-ion battery recycling. Key developments include equipment shipments to ACME Metals for AquaRefining operations, production of high purity nickel, copper, and lithium hydroxide from lithium-ion battery black mass, and secured feedstock for pilot testing through 2023. The company raised $3.9 million through share sales and increased its stake in LiNiCo to 12%. However, it reported an operating loss of $4.3 million, with no revenue generated during the quarter, indicating ongoing challenges in moving toward commercial production.
- Secured feedstock for pilot testing through 2023.
- Produced high purity nickel, copper, and lithium hydroxide, marking significant recycling milestones.
- Raised $3.9 million through opportunistic share sales.
- Increased ownership in LiNiCo from ~10% to ~12%.
- Operating loss of $4.3 million, compared to $4.2 million in Q1 2021.
- No revenue generated during the quarter, indicating a lack of commercial production.
Recent Highlights:
- Continued AquaRefining equipment shipments to first Asia Pacific partner, ACME Metal. Sourced in-country equipment. All remaining equipment needed for phase one implementation shipping in April / May to support a late Q2/early Q3 install and commissioning. Engineering package and operational plans are finalized.
- Produced first high purity nickel from lithium-ion battery black mass at the Company’s Innovation Center in the Tahoe-Reno Industrial Center.
- Produced high purity copper from lithium-ion battery black mass at the Company’s Innovation Center.
- Produced first lithium hydroxide from lithium-ion battery black mass at the Company’s Innovation Center in the Tahoe-Reno Industrial Center.
- Secured feedstock for all pilot testing of the lithium-ion battery recycling system at the Innovation Center through the end of 2023.
- Added strategic capabilities by appointing Dave McMurtry as Chief Strategist, retaining Silver State Government Relations to help engage state and federal governments, and appointing Justin Chen as Aqua Metals’ Asia Pacific regional leader.
- Exercised our warrants to increase our ownership in LiNiCo from ~
10% to ~12% . - Raised additional net proceeds of
$3.9 million during the first quarter through opportunistic share sales utilizing at-the-market sales agreements to support our increased R&D efforts related to lithium-ion battery recycling. - Completed substantially all work required for handover of the 140,000 square foot AquaRefinery we leased to own to LiNiCo for
$14.25M to$15.25M
RENO, Nev., April 28, 2022 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS) ("Aqua Metals" or the "Company"), which is reinventing metals recycling with its AquaRefining™ technology, today announced results for the quarter ended March 31, 2022.
Steve Cotton, President and Chief Executive Officer, commented, “During the first quarter of 2022, we commenced Aqualyzer equipment shipments to ACME Metals’, the world’s first deployment of third generation (version 1.5) AquaRefining operation. These shipments, both from the U.S. and from in-country equipment suppliers the Company has established in Taiwan, will support the previously announced plan to install and commission the AquaRefining facility in 2022.
We continue to build on our positive forward momentum with lithium-ion battery recycling, and we have made noteworthy progress in moving our economical and environmentally advantageous lithium-ion battery (LiB) recycling process from concept to execution to meet the exponential growth in global demand for lithium-ion battery recycling and supply chain needs. In February, we announced that we had achieved a key milestone and potentially an important industry breakthrough by producing our first lithium hydroxide from lithium-ion battery black mass at the Company’s Innovation Center in the Tahoe-Reno Industrial Center. This is significant because currently the only commercially proven recycling technology being utilized for lithium-ion batteries is smelting, which does not recover the lithium. In March, we announced that we had achieved another key accomplishment in metals recycling by recovering copper from lithium-ion battery black mass at the Company’s Innovation Center. This week, we announced the production of high purity nickel from lithium-ion battery black mass and demonstrated that nickel sulfate can be easily produced from the nickel metal source. The Company is excited with the results of our R&D efforts. Later this year, we plan to install and commission our pilot-scale system and expand our production later next year. We have already secured our black mass feedstock needs to complete our initial pilot and pre-demonstration testing through the end of 2023.
Our business model today is capital light, focusing on providing equipment and licensing our technologies in an enabler model that allows us to work with anyone in the industry globally and address the entire marketplace. We are also exploring joint ventures and potentially operating our own lithium-ion battery recycling facilities in the future, particularly as our Li AquaRefining matures through 2022 and into 2023.”
2022 Q1 Financial Results
During the first quarter of 2022, Aqua Metals focused on research and development activities to enhance its ability to recycle metals found in lithium-ion batteries and commenced shipping equipment to ACME Metals’ facility. The Company was not in commercial production during 2022 and, as a result, generated no revenue during the quarter.
Cost of product sales decreased by approximately
Research and development costs included expenditures related to improving the Lithium-ion battery AquaRefining technology. During the three months ended March 31, 2022, research and development increased overall for the quarter by approximately
General and administrative expenses increased approximately
For the first quarter of 2022, the Company had an operating loss of
The Company utilized its at-the-market share sales agreement during the quarter. Through opportunistic share sales, Aqua Metals raised additional net proceeds of approximately
During the first quarter of 2022, the Company exercised the warrant for all 500 LINICO Series A Preferred shares. The 2,000 shares of the Series A Preferred Stock represent approximately
During the first quarter of 2022, the Company sold
As of March 31, 2022, the Company had
Conference Call and Webcast
The Company will hold a conference call to discuss those results and corporate developments at 4:30 p.m. (EDT), the same day. Investors can access the live call by dialing (877)-407-9708 toll free or (201)-689-8259 for international callers. Participants have the option of attending the earnings call online by accessing the following link: https://event.webcasts.com/starthere.jsp?ei=1544965&tp_key=4d6405c83e
The results call will include PowerPoint presentation slides so if you do listen via telephone, please log in online to view those slides. A live webcast or replay of the earnings conference call is also available via the company website, and can be found at the following link: https://ir.aquametals.com/ir-calendar. A telephone replay will be available until May 12, 2022, by dialing (877)-660-6853 or (201)-612-7415 and using Pin Number 13729444.
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing metals recycling with its patented hydrometallurgical AquaRefining™ technology. Unlike smelting, AquaRefining is a room temperature, water-based process that emits less pollution. The modular Aqualyzers™ cleanly generate ultra-pure metal one atom at a time, closing the sustainability loop for the rapidly growing energy storage economy. The Company’s offerings include equipment supply, services, and licensing of the AquaRefining technology to recyclers across the globe. Aqua Metals is based in Reno, Nevada. 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 Aqua Metals Innovation Center, our ability to develop our AquaRefining technologies for the recycling of lithium-ion batteries and the expected benefits of our Innovation Center, the recycling of lithium-ion batteries and our deployment of AquaRefining technology and equipment to our Taiwan partner’s facility. 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 derive the expected benefits from our Aqua Metals Innovation Center; (2) the risk we may not be able to recycle lithium-ion batteries using our AquaRefining process or, if we do, derive the expected benefits from such recycling; (3) the risk that we may experience COVID-19 related delays in deploying equipment and technology to our Taiwan partner; (4) the risk that licensees may refuse or be slow to adopt our AquaRefining process as an alternative to smelting in spite of the perceived benefits of AquaRefining; (5) the risk that we may not realize the expected economic benefits from any licenses we may enter into; (6) the risk that we may not be able to access additional capital, through the sale of our TRIC facilities and equipment or otherwise, as and when needed and (7) those other risks disclosed in the section "Risk Factors" included in our Annual Report on Form 10-K filed on February 24, 2022. 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, except share and per share amounts) | ||||||||
| March 31, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 9,040 | $ | 8,137 | ||||
| Accounts receivable | 435 | 269 | ||||||
| Lease receivable, current portion | 1,019 | 920 | ||||||
| Inventory | 45 | 123 | ||||||
| Assets held for sale | 1,100 | 2,633 | ||||||
| Prepaid expenses and other current assets | 427 | 356 | ||||||
| Total current assets | 12,066 | 12,438 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 2,780 | 2,367 | ||||||
| Intellectual property, net | 595 | 640 | ||||||
| Investment in LINICO | 2,000 | 1,500 | ||||||
| Lease receivable, non-current portion | 15,244 | 15,528 | ||||||
| Other assets | 887 | 796 | ||||||
| Total non-current assets | 21,506 | 20,831 | ||||||
| Total assets | $ | 33,572 | $ | 33,269 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,025 | $ | 685 | ||||
| Accrued expenses | 2,889 | 3,005 | ||||||
| Lease liability, current portion | 282 | 388 | ||||||
| Total current liabilities | 4,196 | 4,078 | ||||||
| Building purchase deposit | 1,250 | 1,328 | ||||||
| Lease liability, non-current portion | 508 | 330 | ||||||
| Total liabilities | 5,954 | 5,736 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Common stock; | 75 | 70 | ||||||
| Additional paid-in capital | 215,799 | 211,309 | ||||||
| Accumulated deficit | (188,256 | ) | (183,846 | ) | ||||
| Total stockholders’ equity | 27,618 | 27,533 | ||||||
| Total liabilities and stockholders’ equity | $ | 33,572 | $ | 33,269 | ||||
| AQUA METALS, INC. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Operating cost and expense | ||||||||
| Cost of product sales | $ | 994 | $ | 1,610 | ||||
| Research and development cost | 551 | 289 | ||||||
| General and administrative expense | 2,765 | 2,299 | ||||||
| Total operating expense | 4,310 | 4,198 | ||||||
| Loss from operations | (4,310 | ) | (4,198 | ) | ||||
| Other income and (expense) | ||||||||
| Insurance proceeds net of related expenses | — | (12 | ) | |||||
| PPP loan forgiveness | — | 131 | ||||||
| Loss on disposal of property and equipment | (150 | ) | — | |||||
| Interest expense | — | (5 | ) | |||||
| Interest and other income | 52 | — | ||||||
| Total other income (expense), net | (98 | ) | 114 | |||||
| Loss before income tax expense | (4,408 | ) | (4,084 | ) | ||||
| Income tax expense | (2 | ) | (2 | ) | ||||
| Net loss | $ | (4,410 | ) | $ | (4,086 | ) | ||
| Weighted average shares outstanding, basic and diluted | 71,927,523 | 66,877,948 | ||||||
| Basic and diluted net loss per share | $ | (0.06 | ) | $ | (0.06 | ) | ||
Contact: Glen Akselrod, Bristol Capital
(905) 326-1888, Ext. 1
glen@bristolir.com
FAQ
What were the key achievements of Aqua Metals in Q1 2022?
What was Aqua Metals' financial performance in Q1 2022?
How much funding did Aqua Metals raise in Q1 2022?
What is Aqua Metals' current ownership stake in LiNiCo?
