International Battery Metals (IBAT) Q3 2026 earnings summary

Executive summary

• Progressed business plan focused on deploying modular direct lithium extraction (DLE/MDLE) plant, supporting customer project evaluations, and targeting environmentally responsible lithium chloride production from brine, especially in US reservoirs and industrial by-products.

• Positioned as one of the few public DLE companies with real-world field deployment experience, validated by 2024 Utah operations; MDLE Plant previously deployed at US Magnesium, now marketed to new customers.

• No commercial product sales yet; revenue generated from preliminary brine testing and technical evaluations for potential customers in the US, Argentina, and the Middle East.

• Actively pursuing commercial contracts, strategic partnerships, and long-term value creation through licensing, cost-plus deployments, and participation models.

• Raised $2.0 million in new equity financing and strengthened balance sheet through private placements and S-1 registration effectiveness.

Financial highlights

• Revenue of $30,000 for the quarter ended December 31, 2025, from brine testing; net income of $0.8 million, or $0.00 per share, compared to a $10.9 million loss last year, primarily due to a $3.8 million gain in fair value of warrant liability.

• For the nine months ended December 31, 2025: revenue of $101,000, net income of $5.4 million, compared to a net loss of $3.8 million in the prior year period.

• Operating expenses were approximately $450,000, flat year-over-year; SG&A expenses decreased to $1.8 million from $2.1 million.

• Gross margin for the quarter was $34,000; accumulated deficit as of December 31, 2025: $34.1 million.

• Cash on hand at December 31, 2025: $9.1 million, down from $10.7 million at March 31, 2025; working capital of $9.6 million.

Outlook and guidance

• Aims to secure one or more commercial commitments within the next 6-12 months and deploy modular pilot facilities, with earliest deployment expected late 2026 or early 2027.

• Plans to deploy MDLE Plant in US brine reservoirs, requiring $1–10 million in customizations depending on customer needs; current cash insufficient for high-end customizations, so additional fundraising anticipated within six months.

• Management believes current capital is sufficient for at least twelve months, supported by recent private placements.

• Continues to enhance technology and engineering to reduce costs, increase scalability, and create long-term value through strategic participation models.