Aqua Metals (AQMS) Q3 2024 earnings summary

Executive summary

• Achieved consistent 24-hour pilot facility operations, producing high-purity battery-grade lithium carbonate (>99.5% purity), with a focus on clean, water-based recycling using proprietary AquaRefining technology; no commercial revenue generated in 2024 or 2023.

• Advanced commercial partnerships and secured multiple term sheets for financing and supply agreements, while operations at the commercial plant are paused pending additional funding.

• Completed critical infrastructure upgrades at the Sierra Arc facility and executed a 1-for-20 reverse stock split effective November 5, 2024.

• Focused on cost efficiency and environmental leadership, with a process that eliminates waste streams and reduces environmental impact.

• No commercial revenue generated in 2024 or 2023.

Financial highlights

• Ended the quarter with $3 million in cash and cash equivalents as of September 30, 2024, down from $16.5 million at December 31, 2023.

• Net loss for Q3 2024 was $5.2 million, or negative $0.76 per share, compared to $4.5 million, or negative $0.89 per share, in Q3 2023.

• Net loss for the nine months ended September 30, 2024, was $17.1 million, or negative $2.77 per share, versus $13.9 million, or negative $3.12 per share, for the same period in 2023.

• No product sales in Q3 or the nine months ended September 30, 2024; $25,000 in product sales in the prior year periods.

• Plant operation costs for the quarter were $1.6 million, down 9% from the previous quarter due to a reduction in force.

Outlook and guidance

• Management expects to continue incurring losses and will require additional capital to fund operations and complete the commercial facility.

• Construction and installation at the demonstration plant are paused and will resume once funding is secured; expected to take six months from funding.

• Expects to commission the Sierra Arc facility within two to three quarters after securing funding, with initial operations processing 3,000 tons of black mass per year and plans to scale to 10,000 tons.

• Ongoing efforts to secure long-term financing and commercial agreements, with updates expected later this year or early next.