Aqua Metals Announces Third Quarter 2021 Results
Aqua Metals, Inc. (NASDAQ: AQMS) reported its third quarter results, including significant advancements in lithium-ion battery recycling using AquaRefining technology. The company established an Innovation Center and completed its third generation Aqualyzer, achieving over 300% production capacity. Notable agreements were signed with ACME Metal Enterprise in Taiwan and LINICO for battery recycling collaborations. The company received insurance payments totaling $30.25 million. However, Aqua Metals reported no revenue for the quarter and an operating loss of $4.6 million, highlighting the need for further market engagement.
- Established Aqua Metals Innovation Center for lithium-ion battery recycling.
- Achieved over 300% production in third generation Aqualyzer.
- Finalized agreements with ACME Metal Enterprise and LINICO.
- Reported no revenue for the third quarter of 2021.
- Operating loss of $4.6 million, an increase from $3.4 million in Q3 2020.
Third Quarter and Recent Highlights:
- Established Aqua Metals Innovation Center for development of lithium-ion battery recycling solution utilizing proven AquaRefining technology
- Completed third generation Aqualyzer; achieved production over
300% of original model
- Finalized definitive agreement to deploy AquaRefining technology in Taiwan to ACME Metal Enterprise Co. and partner to further develop direct to oxide process
- Signed collaboration agreement with LINICO for clean lithium-ion battery recycling technology
- Received
$1.25 million payment from LINICO; non-refundable deposit for the purchase of McCarran Nevada facility
- Received final insurance payment of
$5.25 million ; achieved a total of$30.25 million collected
- Further advanced discussions with additional potential licensees
RENO, Nev., Nov. 04, 2021 (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 its third quarter ended September 30, 2021.
Steve Cotton, President and Chief Executive Officer, commented, “Aqua Metals continues to deliver on our stated objectives regarding the deployment of clean AquaRefining technology for recycling of lead-acid batteries. In addition, I am very excited about our advancements in applying AquaRefining technology to the recycling of lithium-ion batteries, which can significantly augment Aqua Metals capabilities and more than doubles our addressable market. During the third quarter, we finalized our first ever agreement to deploy AquaRefining technology at the facility of our new partner in Taiwan. Plans are currently being finalized for the shipping and installation of the phase 1 deployment package to the ACME Taiwan facility this quarter with plans for installation and initial operations during the first quarter of 2022. This operation will benefit from the enhancements recently made to our third generation Aqualyzer, that has achieved production over
Third Quarter 2021 Financial Results
During the third quarter of 2021, the Company achieved a historic milestone of finalizing its first agreement to deploy AquaRefining technology and equipment to a third-party facility, which was completed on July 28, 2021. As Aqua Metals concentrated its efforts on this agreement and further enhancing its product offerings for future partners, the Company did not generate revenue during the third quarter of 2021.
Cost of product sales increased slightly to
Aqua Metals received an insurance payment of
During the third quarter of 2021, the Company reclassified certain assets with a net book value of
Interest expense decreased approximately
During the third quarter ended September 30, 2021, the Company recognized interest and other income of
For the third quarter of 2021, the Company had an operating loss of
As of September 30, 2021, the Company had
The previously announced lease-to-buy agreement related to the Company’s McCarran, Nevada plant commenced on April 1, 2021. The Company accounted for the lease-to-buy agreement as a sale-type lease. As a component of the accounting for this agreement, Aqua Metals recognized the estimated fair value of the land and plant of
Accrued expenses as of the quarter ended September 30, 2021, totaled
Conference Call and Webcast
The Company will conduct a conference call to discuss these results today at 4:30 p.m. Eastern Daylight Time (1:30 p.m. Pacific Daylight Time). The conference call may be accessed by dialing: (833) 579-0902 or (778)-560-2608 for international callers and referencing conference ID: 4252469. A simultaneous webcast of the conference call, that will include presentation slides, will be available at: https://onlinexperiences.com/Launch/QReg/ShowUUID=B2363336-CC17-485F-9D71-B3836249241A. In addition, the live webcast or a replay of the conference call will be available via the Company website at: https://ir.aquametals.com/ir-calendar. A telephone replay of the conference call will be available until December 4, 2021, by dialing (800) 585-8367 (toll free) or (416) 621-4642 and using conference ID: 4252469.
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 generates 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 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 25, 2021, and subsequent SEC filings. 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)
| September 30, 2021 | December 31, 2020 | |||||||
| (unaudited) | (Note 2) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 11,700 | $ | 6,533 | ||||
| Accounts receivable | 250 | 32 | ||||||
| Lease receivable, current portion | 821 | — | ||||||
| Inventory | 333 | 1,091 | ||||||
| Assets held for sale | 3,179 | — | ||||||
| Prepaid expenses and other current assets | 309 | 702 | ||||||
| Total current assets | 16,592 | 8,358 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 1,822 | 24,883 | ||||||
| Intellectual property, net | 685 | 819 | ||||||
| Investment in LINICO | 1,500 | — | ||||||
| Lease receivable, non-current portion | 15,811 | — | ||||||
| Other assets | 917 | 1,078 | ||||||
| Total non-current assets | 20,735 | 26,780 | ||||||
| Total assets | $ | 37,327 | $ | 35,138 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,063 | $ | 1,552 | ||||
| Accrued expenses | 4,705 | 1,253 | ||||||
| Lease liability, current portion | 501 | 620 | ||||||
| Notes payable, current portion | — | 29 | ||||||
| Total current liabilities | 6,269 | 3,454 | ||||||
| Lease liability, non-current portion | 269 | 242 | ||||||
| Notes payable, non-current portion | — | 303 | ||||||
| Total liabilities | 6,538 | 3,999 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Common stock; | 70 | 64 | ||||||
| Additional paid-in capital | 209,860 | 196,728 | ||||||
| Accumulated deficit | (179,141 | ) | (165,653 | ) | ||||
| Total stockholders’ equity | 30,789 | 31,139 | ||||||
| Total liabilities and stockholders’ equity | $ | 37,327 | $ | 35,138 | ||||
AQUA METALS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Product sales | $ | — | $ | 90 | $ | — | $ | 108 | ||||||||
| Operating cost and expense | ||||||||||||||||
| Cost of product sales | 1,670 | 1,635 | 5,417 | 4,395 | ||||||||||||
| Research and development cost | 273 | 210 | 738 | 669 | ||||||||||||
| General and administrative expense | 2,681 | 1,656 | 7,109 | 6,286 | ||||||||||||
| Total operating expense | 4,624 | 3,501 | 13,264 | 11,350 | ||||||||||||
| Loss from operations | (4,624 | ) | (3,411 | ) | (13,264 | ) | (11,242 | ) | ||||||||
| Other income and (expense) | ||||||||||||||||
| Insurance proceeds net of related expenses | 4,344 | 1,722 | 4,792 | 1,467 | ||||||||||||
| PPP loan forgiveness | — | — | 332 | — | ||||||||||||
| Loss on disposal of property and equipment | (1,411 | ) | — | (5,665 | ) | — | ||||||||||
| Interest expense | (5 | ) | (166 | ) | (15 | ) | (513 | ) | ||||||||
| Interest and other income | 310 | 18 | 334 | 43 | ||||||||||||
| Total other income (expense), net | 3,238 | 1,574 | (222 | ) | 997 | |||||||||||
| Loss before income tax expense | (1,386 | ) | (1,837 | ) | (13,486 | ) | (10,245 | ) | ||||||||
| Income tax expense | — | — | (2 | ) | (2 | ) | ||||||||||
| Net loss | $ | (1,386 | ) | $ | (1,837 | ) | $ | (13,488 | ) | $ | (10,247 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 69,609,070 | 60,998,971 | 68,223,115 | 60,242,093 | ||||||||||||
| Basic and diluted net loss per share | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.20 | ) | $ | (0.17 | ) | ||||
Contact: Glen Akselrod, Bristol Capital
(905) 326-1888, Ext. 1
glen@bristolir.com
FAQ
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