New partnership provides U.S. consumers with accessible options for recycling batteries, expanding American Battery Technology Company's business model and strengthening the domestic supply of critical minerals Call2Recycle Call2Recycle is the nation’s leading nonprofit battery recycling and stewardship program, dedicated to protecting the environment through safe, responsible end-of-life battery management. For more than 30 years, Call2Recycle has partnered with state regulators, manufacturers, and retai ...

Executive Summary & Financial Highlights [Company Announcement & Overview](index=1&type=section&id=Company%20Announcement%20%26%20Overview) American Battery Technology Company (ABTC) announced its fiscal 2025 fourth quarter and full year financial results, highlighting a significant acceleration in revenue growth that nearly tripled quarterly revenue and substantially outpaced operational cost increases, signaling a clear trajectory towards profitability - ABTC nearly tripled quarterly revenue, increasing over **180% for Q4 FY2025**[1](index=1&type=chunk) - Revenue growth substantially outpaced the increase in operational costs, signaling a clear trajectory towards profitability[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) ABTC achieved exponential revenue growth in FY2025, with Q4 revenue nearly tripling and full-year revenue increasing over 1,100%, demonstrating strong cost control, reduced operating expenses, and a robust cash position, while also being added to the Russell 2000 index Key Financial Highlights (Q4 FY2025 vs Q3 FY2025, and FY2025 vs FY2024) | Metric | Q4 FY2025 (million $) | Q3 FY2025 (million $) | Change (QoQ) | FY2025 (million $) | FY2024 (million $) | Change (YoY) | | :-------------------------------- | :------------------- | :------------------- | :----------- | :----------------- | :----------------- | :----------- | | Revenue | 2.8 | 1.0 | +183% | 4.3 | 0.3 | +1,149% | | Cash Cost of Goods Sold (non-GAAP) | 3.9 | 2.3 | +70% | 10.5 | 1.8 | +483% | | Total Operating Expenses | N/A | N/A | N/A | 31.4 | 44.8 | -30% | - Added to Russell 2000 index in June 2025, resulting in a significant increase in trading volume and institutional ownership[3](index=3&type=chunk) - Strong cash position with **$12.5 million** at June 30, 2025, further enhanced to **$25.4 million** as of September 15, 2025[3](index=3&type=chunk) Operational Highlights [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO Ryan Melsert expressed pride in the ABTC team's exponential ramp-up of operations at their first recycling facility and outlined an exciting path ahead, including continued growth and accelerating the commercialization of the Tonopah Flats Lithium Project and a second battery recycling facility - CEO Ryan Melsert highlighted the exponential ramp-up of the first recycling facility and future growth plans for the Tonopah Flats Lithium Project and a second battery recycling facility[4](index=4&type=chunk) [Battery Recycling Highlights](index=2&type=section&id=Battery%20Recycling%20Highlights) ABTC significantly scaled its battery recycling operations, increasing Q4 throughput by 70% and expanding feed material sources to include stationary battery energy storage systems, while successfully completing its USCAR contract and securing a **$144 million** DOE grant for a second facility - Continued ramp of operations at the first battery recycling facility, with Q4 throughput increasing **70%** over Q3[6](index=6&type=chunk) - ABTC's recycling facility is now receiving substantial quantities of feed material from stationary battery energy storage systems (BESS), in addition to end-of-life electric vehicles and consumer electronics[6](index=6&type=chunk) - Successfully closed out and completed all requirements in its contract with the U.S. Advanced Battery Consortium (USCAR) during FY2025[6](index=6&type=chunk) - Selected for and contracted a competitive grant for **$144 million** from the U.S. DOE for the construction of a second battery recycling facility in the Southeast U.S.[6](index=6&type=chunk) [Primary Lithium from Claystone Manufacturing Highlights](index=2&type=section&id=Primary%20Lithium%20from%20Claystone%20Manufacturing%20Highlights) ABTC advanced its Tonopah Flats Lithium Project by developing proprietary technologies for lithium hydroxide manufacturing from Nevada-based claystone, completing a multi-tonne per day integrated pilot facility, gaining 'Transparency Priority' and 'Covered Project' status, and securing a **$900 million** Letter of Interest for a low-interest loan - Developed proprietary technologies for manufacturing critical mineral lithium hydroxide from Nevada-based claystone material and constructed a multi-tonne per day integrated pilot facility[6](index=6&type=chunk) - Successfully closed out and completed all requirements in its **$2.3 million** grant award from the U.S. DOE for the design, construction, and operation of its integrated domestic claystone to lithium hydroxide pilot facility[6](index=6&type=chunk) - Designed a commercial-scale lithium refinery for the Tonopah Flats Lithium Project, anticipated to manufacture **30,000 tonnes of lithium hydroxide per year**, with long-term commercial offtake agreements under development[6](index=6&type=chunk) - Tonopah Flats Lithium Project was approved as a 'Covered Project' by the FAST-41 Permitting Council and National Energy Dominance Council, prioritizing streamlined permitting[6](index=6&type=chunk) - Received an approved Letter of Interest from the US Export-Import Bank for a **$900 million** low-interest loan to support the construction of the commercial lithium mine and refinery[6](index=6&type=chunk) Financial Performance [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For fiscal year 2025, ABTC reported a significant increase in revenue to **$4.3 million**, alongside a gross loss of **$10.6 million**, with total operating expenses decreasing by **30%** to **$31.4 million**, contributing to a reduced net loss of **$46.8 million** Unaudited Condensed Consolidated Statements of Operations (FY2025 vs FY2024) | Metric | FY2025 ($) | FY2024 ($) | Change (%) | | :----------------------------------- | :----------- | :----------- | :--------- | | Revenue | 4,290,224 | 343,500 | +1,149% | | Cost of goods sold | 14,864,633 | 3,304,707 | +350% | | Gross loss | (10,574,409) | (2,961,207) | +257% | | General and administrative | 21,151,445 | 16,106,807 | +31.3% | | Research and development | 8,470,161 | 14,325,681 | -40.9% | | Exploration | 1,827,314 | 4,121,941 | -55.7% | | Impairment charge on held-for-sale assets | - | 10,254,037 | -100% | | Total operating expenses | 31,448,920 | 44,808,466 | -30% | | Net loss attributable to common stockholders | (46,762,625) | (52,501,824) | -11% | | Net loss per share, basic and diluted | (0.58) | (1.02) | -43.1% | | Weighted average shares outstanding | 80,316,363 | 51,243,106 | +56.7% | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ABTC's total assets increased to **$84.5 million** from **$77.7 million** in FY2024, driven by growth in current assets, while total liabilities decreased to **$13.9 million** and total stockholders' equity rose to **$70.6 million** Unaudited Condensed Consolidated Balance Sheets (June 30, 2025 vs June 30, 2024) | Metric | June 30, 2025 ($) | June 30, 2024 ($) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | **ASSETS** | | | | | Cash | 7,474,304 | 7,001,786 | +6.7% | | Accounts receivable | 2,799,603 | 228,499 | +1,125% | | Restricted cash | 5,000,000 | – | N/A | | Total current assets | 29,532,110 | 18,406,048 | +60.4% | | Total assets | 84,457,791 | 77,675,132 | +8.7% | | **LIABILITIES & STOCKHOLDERS' EQUITY** | | | | | Total current liabilities | 13,668,605 | 15,798,298 | -13.5% | | Total liabilities | 13,858,768 | 16,207,492 | -14.5% | | Total stockholders' equity | 70,599,023 | 61,467,640 | +14.9% | [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) ABTC provides non-GAAP financial measures, specifically 'cash cost of goods sold,' to offer investors additional insights into its fundamental business performance by excluding non-cash items not indicative of core operations Reconciliation of GAAP to Non-GAAP Cash Cost of Goods Sold (Q4 FY2025) | Description | Amount ($M) | | :-------------------------- | :---------- | | GAAP Cost of Goods Sold | 5.1 | | Less: Depreciation Expense | (1.0) | | Less: Stock-Based Compensation | (0.2) | | Non-GAAP Cash Cost of Goods Sold | 3.9 | Reconciliation of GAAP to Non-GAAP Cash Cost of Goods Sold (FY2025) | Description | Amount ($M) | | :-------------------------- | :---------- | | GAAP Cost of Goods Sold | 14.9 | | Less: Depreciation Expense | (3.6) | | Less: Stock-Based Compensation | (0.6) | | Non-GAAP Cash Cost of Goods Sold | 10.7 | - Non-GAAP measures are used to provide meaningful comparisons by excluding items not reflecting fundamental business performance[11](index=11&type=chunk) Company Information & Disclosures [About American Battery Technology Company](index=3&type=section&id=About%20American%20Battery%20Technology%20Company) American Battery Technology Company (ABTC), headquartered in Reno, Nevada, pioneers technologies to unlock domestically manufactured and recycled battery metals, committed to establishing a circular supply chain for sustainable energy - ABTC pioneers technologies for domestically manufactured and recycled battery metals critically needed for electric vehicles, stationary storage, and consumer electronics industries[9](index=9&type=chunk) - Committed to a circular supply chain for battery metals, innovating for a global transition to electrification and sustainable energy[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines various forward-looking statements regarding ABTC's future operations, sales, financing, and project developments, emphasizing that actual results may differ materially due to inherent risks and uncertainties including going concern ability, permitting, economic conditions, and fluctuating mineral prices - Statements include future sales, potential loans/grants, scale of operations, anticipated production, and project costs/schedules[10](index=10&type=chunk) - Warns that future results may differ materially due to risks such as going concern ability, interpretations of geologic information, inability to obtain permits, general economic conditions, regulatory requirements, and fluctuating mineral prices[10](index=10&type=chunk) [Earnings Call & Media Contact](index=3&type=section&id=Earnings%20Call%20%26%20Media%20Contact) ABTC announced its fiscal year 2025 earnings call to be held on Monday, September 22, at 4:30 p.m. ET, providing details for accessing the webcast, with media contact information also provided for inquiries - ABTC will host its FY2025 earnings call on Monday, September 22 at 4:30 p.m. ET[7](index=7&type=chunk) - Media contact for inquiries: Tiffiany Moehring, tmoehring@batterymetals.com, 720-254-1556[12](index=12&type=chunk)

Group 1 - The American Battery Technology Company held its Fiscal Fourth Year Quarter and Full Year 2025 Earnings Call, welcoming participants and indicating that a recording of the call will be available on their website [1] - The presentation includes forward-looking statements that are subject to risks and uncertainties, which may lead to actual results differing from anticipated outcomes [2] - The CEO and CTO, Ryan Melsert, will discuss the company's two lines of business: lithium-ion battery recycling and the conversion of claystone to lithium hydroxide [3]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue, nearly tripling compared to the previous quarter, largely due to increased operations at the first battery recycling plant [6][7] - For the fiscal year, revenue increased to approximately $4.3 million from about $0.3 million the previous year, indicating a substantial growth [7][21] - Cash balance increased to over $25 million as of September 15, 2025, attributed to increased trading volume and institutional ownership following the addition to the Russell 2000 and 3000 indices [8][20] Business Line Data and Key Metrics Changes - The battery recycling operations saw a 70% increase in throughput in a single quarter, reflecting operational improvements and increased headcount [9] - The primary claystone to lithium hydroxide business is progressing with the construction of a commercial scale facility, with ongoing efforts to secure long-term off-take agreements [18][21] Market Data and Key Metrics Changes - The company has experienced a significant increase in trading volume and institutional ownership since being added to the Russell indices, indicating a shift in investor interest [8][20] - The company is also engaging more with stationary grid battery systems, expanding its market reach beyond automotive batteries [12][13] Company Strategy and Development Direction - The company aims to create a closed-loop battery metal supply chain in North America, focusing on both recycling and primary mineral extraction [4][6] - Plans for a second battery recycling plant are underway, supported by a $144 million grant from the U.S. Department of Energy, indicating a commitment to scaling operations [11][12] - The company is also advancing its lithium hydroxide technologies and has been selected as a transparency priority project to streamline federal permitting processes [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the battery industry and the need for both recycling and new mineral extraction to meet demand [5][6] - The company anticipates continued improvements in margins as operations scale and efficiencies are realized [7][21] Other Important Information - The company successfully closed out a project with the U.S. Advanced Battery Consortium, demonstrating the effectiveness of its recycling processes [10] - The company has received competitive tax credits and continues to secure government grants to support its operations [22] Q&A Session Summary Question: What are the expectations for revenue growth moving forward? - Management indicated that revenue growth is expected to continue as operations ramp up and new projects are initiated [21] Question: How is the company addressing the challenges in the battery recycling market? - The company is focusing on operational improvements and scaling its recycling plant to enhance throughput and efficiency [9][21] Question: What is the status of the second battery recycling plant? - The second plant is in the early stages of construction, with lessons learned from the first plant being applied to its development [12][21]

Financial Data and Key Metrics Changes - The company reported a significant increase in revenue, nearly tripling compared to the previous quarter, largely due to increased operations at the first battery recycling plant [6][7] - For the fiscal year, revenue increased to approximately $4.3 million from about $0.3 million the previous year, with a larger relative increase in revenue than in cash cost of goods sold, leading to improved margins [7][21] - Cash balance increased to over $25 million as of September 15, 2025, attributed to increased trading volume and institutional ownership following the company's addition to the Russell 2000 and 3000 indices [9][20] Business Line Data and Key Metrics Changes - The battery recycling business saw a 70% increase in throughput in a single quarter, reflecting operational improvements and increased headcount [10] - The company is also developing a second battery recycling plant, supported by a $144 million grant from the U.S. Department of Energy, indicating growth in both recycling and primary lithium hydroxide production [12][18] Market Data and Key Metrics Changes - The company has experienced a substantial increase in trading volume and institutional ownership since being added to the Russell indices, indicating a shift in investor interest [8][20] - The company is expanding its market reach by working with both automotive and stationary grid battery systems, diversifying its customer base [14] Company Strategy and Development Direction - The company aims to create a closed-loop battery metal supply chain in North America, focusing on both recycling and primary mineral extraction [5][6] - The strategic focus includes scaling operations at the existing recycling plant and developing a commercial-scale lithium hydroxide facility, with ongoing efforts to streamline federal permitting processes [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the battery industry and the company's ability to meet increasing demand through improved operations and strategic partnerships [6][12] - The company highlighted the importance of domestic lithium manufacturing and recycling in supporting critical infrastructure, including data centers and supercomputers [15][16] Other Important Information - The company has successfully closed out several projects funded by government grants, demonstrating compliance with grant requirements and operational capabilities [11][17] - The company has received a letter of interest from the U.S. Export-Import Bank for a $900 million low-interest loan to support its lithium project, indicating strong governmental support [20] Q&A Session Summary Question: What are the expectations for revenue growth moving forward? - Management indicated that revenue growth is expected to continue as operations scale and new projects ramp up, with a focus on improving margins [21] Question: How is the company addressing the challenges in the battery recycling market? - The company is enhancing operational efficiencies and expanding its recycling capabilities to meet the growing demand for battery materials [6][10] Question: What is the status of the second battery recycling plant? - The second plant is under construction, supported by a significant grant, and is expected to leverage lessons learned from the first plant to optimize operations [12][18]

Financial Performance - Q4 FY2025 revenue increased to $2.8 million, a 183% increase from $1.0 million in Q3 FY2025[13] - FY2025 revenue substantially increased to $4.3 million, a 1,149% increase from $0.3 million in FY2024[13] - FY2025 cash cost of goods sold increased by 483% to $10.5 million, compared to $1.8 million in FY2024, which is far below the rate of revenue growth[13] - FY2025 total operating expenses decreased 30% to $31.4 million, from $44.8 million in FY2024[13] - The company's cash balance was $25.4 million as of September 15, 2025[13] Battery Recycling Business - Q4 throughput at the first battery recycling facility increased 70% over Q3[17] - The company completed all requirements in its contract with the U S Advanced Battery Consortium (USCAR) in FY2025[17] - The company was awarded a $144 million grant from the U S DOE for the construction of a second battery recycling facility[17] Claystone to LiOH Business - The company successfully manufactured battery-grade lithium hydroxide from Nevada-based claystone at its multi-tonne per day integrated pilot facility[24] - The company completed all requirements in its $2.3 million grant award from the U S DOE for the claystone to lithium hydroxide pilot facility[25] - The company designed a commercial scale lithium refinery as part of its Tonopah Flats Lithium Project to manufacture 30,000 tonnes of lithium hydroxide per year[25] Other Highlights - The company's Tonopah Flats Lithium Project was selected as a Transparency Priority Project and a Covered Project to streamline permitting processes[28] - The company received an approved Letter of Interest from the US Export-Import Bank for a $900 million low-interest loan for the Tonopah Flats Lithium Project[28]

Market Overview - U.S. stock futures are lower, with Dow futures dropping more than 100 points on Monday [1] Company-Specific Movements - American Battery Technology Company (ABAT) shares fell 12.2% to $2.89 in pre-market trading after filing for a mixed shelf offering of up to $250 million [2] - Yueda Digital Holding (YDKG) shares tumbled 13.1% to $2.92 in pre-market trading, following a decline of over 3% on Friday [4] - Quantum Computing Inc. (QUBT) shares dipped 12.2% to $20.40 in pre-market trading, expecting a cash position of $850 million after closing a $500 million common stock private placement [4] - CEA Industries Inc. (BNC) shares declined 9.8% to $8.74 in pre-market trading, as the company authorized a $250 million stock buyback [4] - Amer Sports, Inc. (AS) shares slipped 9.2% to $34.01 in pre-market trading after announcing warm third-quarter revenue growth guidance [4] - Bitmine Immersion Technologies, Inc. (BMNR) shares declined 7.3% to $56.34 in pre-market trading after a gain of over 2% on Friday [4] - Strive, Inc. (ASST) shares fell 7% to $4.00 in pre-market trading after gaining more than 12% on Friday [4] - Upexi, Inc. (UPXI) shares dropped 6.2% to $6.17 in pre-market trading after a decline of around 4% on Friday [4] - DeFi Development Corp. (DFDV) shares declined 5.7% to $15.95 in pre-market trading, following the announcement of a strategic collaboration with ZeroStack [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - AgriFORCE Growing Systems Ltd. (AGRI) has increased by 263% to $8.73 [3] - Qualigen Therapeutics, Inc. (QLGN) has risen by 212% to $8.87 [3] - Flora Growth Corp. (FLGC) is up 103% at $55.36 [3] - Boxlight Corporation (BOXL) has gained 102% to $3.16 [3] - Platinum Analytics Cayman Limited (PLTS) is up 96% at $14.00 [3] - Metsera, Inc. (MTSR) has increased by 59% to $52.99 [3] - Anywhere Real Estate Inc. (HOUS) is up 51% at $10.72 [3] - Fold Holdings, Inc. (FLD) has risen by 30% to $5.93 [3] - ARB IOT Group Limited (ARBB) is up 28% at $8.02 [3] - MBX Biosciences, Inc. (MBX) has increased by 26% to $12.64 [3] Premarket Losers - AlphaVest Acquisition Corp (ATMV) has decreased by 27% to $15.99 [4] - Helius Medical Technologies, Inc. (HSDT) is down 17% at $20.00 [4] - CEA Industries Inc. (BNC) has fallen by 15% to $8.20 [4] - Simpple Ltd. (SPPL) is down 13% at $5.00 [4] - FatPipe, Inc. (FATN) has decreased by 11% to $7.87 [4] - Tharimmune, Inc. (THAR) is down 11% at $3.20 [4] - Yueda Digital Holding (YDKG) has fallen by 11% to $2.98 [4] - American Battery Technology Company (ABAT) is down 10% at $2.94 [4] - AGM Group Holdings Inc. (AGMH) has decreased by 9% to $9.36 [4] - Antelope Enterprise Holdings Limited (AEHL) is down 5% at $3.38 [4]

```markdown PART I This section details the company's business operations, risk factors, cybersecurity measures, and property holdings [Item 1. Business](index=5&type=section&id=Item%201.%20Business) American Battery Technology Company (ABTC) is an integrated critical battery materials company focused on increasing domestic U.S. production of lithium, nickel, cobalt, and manganese through primary resource exploration, new extraction technologies, and lithium-ion battery recycling. The company operates in both primary and secondary battery material supply segments, aiming for a closed-loop supply chain and environmentally responsible operations - ABTC is an integrated critical battery materials company focused on increasing domestic U.S. production of lithium, nickel, cobalt, and manganese[18](index=18&type=chunk) - The company employs a three-pronged approach: exploration of new primary resources, development of extraction technologies, and commercialization of an integrated lithium-ion battery recycling process[18](index=18&type=chunk) - ABTC operates in both primary and secondary battery material supply segments[23](index=23&type=chunk) [Introduction](index=5&type=section&id=Introduction) This section covers introduction - ABTC aims to increase domestic U.S. production of critical battery materials (lithium, nickel, cobalt, manganese) and establish a closed-loop supply chain through primary resource development and battery recycling[18](index=18&type=chunk) - The company's headquarters are in Reno, Nevada, with a mineral exploration office in Tonopah, Nevada, and a recycling plant in McCarran, Nevada[19](index=19&type=chunk) [Company History](index=5&type=section&id=Company%20History) This section details the company's company history - Incorporated as Oroplata Resources, Inc. in 2011, the company underwent several name changes, including LithiumOre Corp. and American Battery Metals Corporation, before becoming American Battery Technology Company in August 2021 to better reflect its current and future business[20](index=20&type=chunk) [Industry Overview](index=5&type=section&id=Industry%20Overview) This section provides an overview of industry overview - The global lithium-ion battery market surpassed **$100 billion in 2024** and is projected to exceed **$250 billion by 2030**, driving demand for battery materials like lithium, cobalt, nickel, and manganese[21](index=21&type=chunk) - The lithium-ion battery supply chain is segmented into material providers, chemical refiners, cell manufacturers, and end-use product manufacturers, with significant investment imbalances, particularly a lack of domestic U.S. battery material sourcing and refining capacity[23](index=23&type=chunk)[29](index=29&type=chunk) [Overview of Battery Materials Supply](index=7&type=section&id=Overview%20of%20Battery%20Materials%20Supply) This section provides an overview of battery materials supply - Primary battery material production is characterized by long development times, high capital costs, and concentration in geopolitically risky regions[30](index=30&type=chunk) - Secondary supply (recycling) is a newer market segment with limited investment, primarily using high-temperature thermal processes (pyrometallurgy) or mechanical crushing/simple hydrometallurgy, often losing materials like lithium and graphite, and concentrated in China and South Korea[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Our Business](index=8&type=section&id=Our%20Business) This section covers our business - ABTC has developed a two-phase universal lithium-ion battery recycling system: automated de-manufacturing followed by targeted chemical extraction to recover high-value metals[39](index=39&type=chunk)[40](index=40&type=chunk) - The company is also developing a sustainable lithium extraction process for battery cathode grade lithium hydroxide from Nevada-based sedimentary claystone primary resources[50](index=50&type=chunk) [Lithium-Ion Battery Recycling](index=8&type=section&id=Lithium-Ion%20Battery%20Recycling) This section describes the company's lithium-ion battery recycling operations - ABTC's recycling system is a two-phase process: automated de-manufacturing to separate components into scrap metals and black mass, followed by proprietary chemical extraction to refine lithium, nickel, cobalt, and manganese to battery cathode grade[40](index=40&type=chunk) - The unique recycling process offers benefits including decreased air/liquid pollutant emissions, high recovery and purity of high-value products, and lower capital costs compared to conventional methods[41](index=41&type=chunk)[47](index=47&type=chunk) [Industry Collaborations (Recycling)](index=9&type=section&id=Industry%20Collaborations%20(Recycling)) This section outlines industry collaborations (recycling) initiatives - ABTC won the Circularity Challenge hosted by BASF, Stanley Black & Decker, and Greentown Labs in 2019, leading to seed funding and partnership exploration with BASF[43](index=43&type=chunk) - In October 2021, ABTC received a **$2 million contract** from the US Advanced Battery Consortium (USABC) for commercial-scale development and demonstration of its integrated lithium-ion battery recycling system[44](index=44&type=chunk) [Competition (Recycling)](index=9&type=section&id=Competition%20(Recycling)) This section analyzes competition (recycling) in the market - ABTC competes with other recycling processors (primarily in the US, Europe, South Korea, China) and primary producers of battery materials[45](index=45&type=chunk)[46](index=46&type=chunk) - ABTC's process aims to extract additional value from feedstock by recovering more battery components (lithium, manganese) compared to competitors focusing mainly on nickel and cobalt[46](index=46&type=chunk) [Primary Resource Development & Refining](index=10&type=section&id=Primary%20Resource%20Development%20%26%20Refining) This section outlines primary resource development & refining initiatives - ABTC is developing a sustainable lithium extraction process for battery cathode grade lithium hydroxide from Nevada-based sedimentary claystone resources, avoiding inefficient evaporation ponds[50](index=50&type=chunk)[52](index=52&type=chunk) - The company is operating a multi-tonne per day integrated demonstration facility to prove commercial viability of its extraction and refining processes[51](index=51&type=chunk) [Industry Collaborations (Primary Resource)](index=10&type=section&id=Industry%20Collaborations%20(Primary%20Resource)) This section outlines industry collaborations (primary resource) initiatives - In October 2021, ABTC received a **$4.5 million grant** from the US Department of Energy to advance its lithium extraction technologies from claystone deposits, partially funding a multi-tonnes per day processing facility[53](index=53&type=chunk) [Competition (Primary Resource)](index=10&type=section&id=Competition%20(Primary%20Resource)) This section analyzes competition (primary resource) in the market - Primary lithium production is concentrated in the Americas, Australia, and Asia, with competition based on product quality and reliability of supply[54](index=54&type=chunk) [Employees](index=10&type=section&id=Employees) This section provides information on the company's employees - As of September 15, 2025, the Company had **157 full-time** and **6 part-time employees**[55](index=55&type=chunk) [Available Information](index=10&type=section&id=Available%20Information) This section details available information - The company files periodic reports (10-K, 10-Q, 8-K) with the SEC, which are available free of charge on its website[56](index=56&type=chunk) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) Investing in ABTC securities involves significant risks, including substantial doubt about the company's ability to continue as a going concern and achieve profitability, the need for additional financing, challenges in scaling its unproven business model, and dependence on volatile metal prices. Operational risks include feedstock availability, safety concerns, and regulatory compliance, while ownership risks include potential dilution and internal control weaknesses - There is substantial doubt about the Company's ability to continue as a going concern and to achieve or sustain profitability[58](index=58&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The Company may require significant additional financing within the next 12 months to fund operations and develop its facilities, with no assurance of availability on acceptable terms[58](index=58&type=chunk)[63](index=63&type=chunk) - The success of recycling operations depends on securing adequate quantities of suitable lithium-ion battery feedstock at economically viable prices, which is subject to market volatility and competition[58](index=58&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) - The Company has identified a material weakness in its internal control over financial reporting (ICFR) and is working on remediation[65](index=65&type=chunk)[104](index=104&type=chunk) [Summary Risk Factors](index=11&type=section&id=Summary%20Risk%20Factors) This section covers summary risk factors - Substantial doubt about going concern and profitability[58](index=58&type=chunk) - Need for significant additional financing within 12 months[58](index=58&type=chunk) - Challenges in executing growth strategy and managing expansion, including scaling an unproven business model[58](index=58&type=chunk)[64](index=64&type=chunk) - Ability to source, recover, and recycle lithium-ion battery materials economically and efficiently may be limited[58](index=58&type=chunk) - Dependence on volatile global metal prices and product quality[58](index=58&type=chunk) - Safety concerns, changes in battery technology, slower EV adoption, or reduced government support could negatively impact results[58](index=58&type=chunk) - Operations are subject to development and execution risks, permitting limitations, and insurance coverage issues[58](index=58&type=chunk) - Potential for future equity issuances causing shareholder dilution[59](index=59&type=chunk) - Material weakness identified in internal control over financial reporting (ICFR)[65](index=65&type=chunk) [Risks Relating to Our Business](index=13&type=section&id=Risks%20Relating%20to%20Our%20Business) This section covers risks relating to our business - The Company's continuation as a going concern is dependent on generating profit and securing debt or equity financing, which is not assured[61](index=61&type=chunk) - Scaling the proprietary recycling process and developing the Tonopah Flats mining project present risks due to the unproven business model and lack of prior mining operational history[64](index=64&type=chunk)[66](index=66&type=chunk) - Profitability is highly sensitive to volatile global metal prices and the ability to meet stringent product quality and customer specifications[75](index=75&type=chunk) - Operations face hazards typical of mineral properties, environmental remediation costs, and challenges in obtaining and maintaining permits and insurance[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - Dependence on key personnel and the ability to attract and retain talent is crucial for advancing multiple projects concurrently[82](index=82&type=chunk)[83](index=83&type=chunk) [Risks Relating to Ownership of Our Securities](index=12&type=section&id=Risks%20Relating%20to%20Ownership%20of%20Our%20Securities) This section covers risks relating to ownership of our securities - Future issuance of additional equity securities could dilute existing ownership and depress common stock market price[100](index=100&type=chunk)[102](index=102&type=chunk) - The Company does not anticipate paying dividends, so investment return depends on stock price appreciation[106](index=106&type=chunk) - Failure to remediate a material weakness in internal control over financial reporting could adversely affect business, operating results, and share price[104](index=104&type=chunk) - Geopolitical competition over critical minerals, changes in trade policies, and shifts in government funding priorities could restrict market access, increase costs, or limit growth[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Mineral resource estimates are subject to inherent uncertainties, and there is no assurance that economically recoverable reserves exist or can be extracted[91](index=91&type=chunk)[93](index=93&type=chunk) - Evolving federal and state regulations on battery recycling and extended producer responsibility may create new compliance obligations and increase operating costs[95](index=95&type=chunk) - Inadequate protection of intellectual property or infringement claims could lead to significant costs and operational restrictions[98](index=98&type=chunk) - Increasing cybersecurity threats pose risks of system compromise, operational disruption, and data exposure[99](index=99&type=chunk) [Item 1B. Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments to report - Not required[109](index=109&type=chunk) [Item 1C. Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) ABTC has established processes for assessing, identifying, and managing cybersecurity risks, including application security assessments, vulnerability management, and incident response plans. The Chief Operating Officer leads a centrally-coordinated team responsible for cybersecurity, with oversight from the board of directors - ABTC has processes for assessing, identifying, and managing material cybersecurity risks, including unauthorized occurrences on physical and electronic information systems[110](index=110&type=chunk) - Risk management includes application security assessments, vulnerability management, ongoing risk assessments, and incident response plans[111](index=111&type=chunk) - A unified team led by the Chief Operating Officer is responsible for cybersecurity and data protection, with board oversight[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [Risk Management and Strategy](index=23&type=section&id=Risk%20Management%20and%20Strategy) This section covers risk management and strategy - ABTC employs various mechanisms, controls, technologies, and systems to prevent, detect, or mitigate data loss, theft, misuse, or unauthorized access[110](index=110&type=chunk) - The company conducts application security assessments, vulnerability management, and ongoing risk assessments, and maintains incident response plans[111](index=111&type=chunk) - Employees with access to information systems are required to undertake annual data protection and cybersecurity training[111](index=111&type=chunk) [Governance](index=23&type=section&id=Governance) This section covers governance - A centrally-coordinated team, led by the Chief Operating Officer, is responsible for implementing and maintaining cybersecurity and data protection practices[112](index=112&type=chunk)[114](index=114&type=chunk) - Cybersecurity risks and mitigations are evaluated by senior leadership and reviewed by the board of directors[113](index=113&type=chunk) [Item 2. Properties](index=24&type=section&id=Item%202.%20Properties) ABTC's properties include its corporate headquarters in Reno, Nevada, a lithium-ion battery recycling plant in McCarran, Nevada, and the Tonopah Flats Lithium Project. The McCarran facility is being commissioned in phases for battery material recycling. The Tonopah project involves exploration and development of lithium-bearing claystone, with a recently published Amended Resource Estimate and Initial Assessment - ABTC operates a recycling plant in McCarran, Nevada, and is exploring lithium-bearing claystone mining claims in Tonopah, Nevada[117](index=117&type=chunk) - The McCarran recycling facility, previously used for lead-acid batteries, is being commissioned in two phases, with Phase 1 (recycling into black mass and metals) commissioned in Q4 FY2024 and Phase 2 (refining into battery-grade products) planned[119](index=119&type=chunk)[121](index=121&type=chunk) - The Tonopah Flats Lithium Project (TFLP) consists of **517 unpatented lode claims** covering approximately **10,680 acres**, with an Amended Resource Estimate and Initial Assessment published in April 2024[129](index=129&type=chunk)[131](index=131&type=chunk)[134](index=134&type=chunk)[144](index=144&type=chunk) [Corporate Headquarters](index=24&type=section&id=Corporate%20Headquarters) This section covers corporate headquarters - The Company leases executive offices of approximately **5,831 square feet** at 100 Washington Street, Suite 100, Reno, Nevada, with the lease expiring November 30, 2027[118](index=118&type=chunk) [Recycling Operations](index=24&type=section&id=Recycling%20Operations) This section covers recycling operations - The McCarran, Nevada facility houses ABTC's integrated battery recycling system, utilizing strategic de-manufacturing and targeted chemical extraction for high yields and low environmental footprint[120](index=120&type=chunk) - Phase 1 of the McCarran facility, commissioned in Q4 FY2024, recycles battery materials into copper, aluminum, steel, lithium intermediate, and black mass. Phase 2 will refine these into battery-grade products[121](index=121&type=chunk) - The Fernley, Nevada facility (**12.44 acres**) and associated land (**11.55 acres**) were classified as held for sale in Q4 FY2024, though the 11.55 acres were reclassified back to property, plant, and equipment as of June 30, 2025[122](index=122&type=chunk)[123](index=123&type=chunk) - ABTC purchased **13.87 acres** in McCarran, Nevada, for a supplemental feedstock storage facility[124](index=124&type=chunk) - Water rights in Fernley, Nevada, valued at **$3.8 million**, were classified as held for sale in Q3 FY2025[125](index=125&type=chunk) [Laboratory Facilities](index=25&type=section&id=Laboratory%20Facilities) This section covers laboratory facilities - ABTC operates laboratory facilities at the University of Nevada, Reno (**4,893 sq ft**) and Greentown Labs in Somerville, Massachusetts, to support R&D for recycling and metal extraction technologies[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Tonopah Flats Lithium Project ("TFLP")](index=25&type=section&id=Tonopah%20Flats%20Lithium%20Project%20(%22TFLP%22)) This section covers tonopah flats lithium project ("tflp") - ABTC holds rights to **517 unpatented lode claims** (approx. **10,680 acres**) near Tonopah, Nevada, for lithium exploration[129](index=129&type=chunk)[131](index=131&type=chunk)[144](index=144&type=chunk) - An Amended Resource Estimate and Initial Assessment (IA) for TFLP was published in April 2024, disclosing Measured, Indicated, and Inferred mineral resources in compliance with SK-1300[134](index=134&type=chunk)[147](index=147&type=chunk) - The IA estimates a **$10.05 billion after-tax net present value (NPV)** at a **5% discount rate** for a **50-year mine life**, processing **597 million tons** with an average **4,111 ppm LHM grade** and **65.7% recovery**[157](index=157&type=chunk) [Exploration Programs](index=25&type=section&id=Exploration%20Programs) This section outlines exploration programs and activities - ABTC acquired rights to **305 unpatented lode claims** in the Tonopah Mining District in July 2022 after preliminary surface sampling and an exploration drilling program[130](index=130&type=chunk) - A third exploration program began in July 2023, including core infill and step-out drilling to upgrade resource classification to 'measured and indicated'[133](index=133&type=chunk) - The 2025 drill program (Jan-Feb 2025) involved **2,056.5 meters** in eight core holes and shallow sonic drilling at six sites for geotechnical data, with results to be incorporated into an upcoming Preliminary Feasibility Study (PFS)[135](index=135&type=chunk)[143](index=143&type=chunk) [Geology, Infrastructure, and Permitting](index=28&type=section&id=Geology,%20Infrastructure,%20and%20Permitting) This section describes the geology, infrastructure, and permitting of the project - The Tonopah Flats Lithium Project is located seven miles northwest of Tonopah, Nevada, with access to Highway 6, power, and a local workforce[145](index=145&type=chunk) - ABTC owns **100% of the 517 unpatented Federal lode mining claims**, which grant rights to explore, develop, and mine minerals without production royalties to the U.S. government[144](index=144&type=chunk)[158](index=158&type=chunk) - Key BLM permits and bonding for exploration activities are in place, with a current reclamation bond of **$59,646** for approximately **4.98 acres** of surface disturbance[159](index=159&type=chunk)[162](index=162&type=chunk) [Mineral Resource Estimate](index=28&type=section&id=Mineral%20Resource%20Estimate) This section presents the mineral resource estimate - Mineral resources for Tonopah Flats are classified as Measured, Indicated, and Inferred, estimated by RESPEC in compliance with SK-1300, with an effective date of April 5, 2024[134](index=134&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk)[151](index=151&type=chunk) Tonopah Flats – Summary of Lithium Mineral Resources (June 30, 2025) | Classification | Total kTons | LI (kTons) | LHM (kTons) | Grades/qualities | Cut-off grades | Metallurgical recovery | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Measured mineral resources | 721,000 | 510 | 3,060 | 702 ppm Li | 300 ppm Li | 65.7% for Li | | Indicated mineral resources | 2,439,000 | 1,380 | 8,340 | 565 ppm Li | 300 ppm Li | 65.7% for Li | | Measured and Indicated mineral resources | 3,160,000 | 1,890 | 11,400 | 596 ppm Li | 300 ppm Li | 65.7% for Li | | Inferred mineral resources | 2,931,000 | 1,610 | 9,750 | 550 ppm Li | 300 ppm Li | 65.7% for Li | - The estimate assumes a lithium hydroxide monohydrate (LHM) price of **$40,000/ton**, metallurgical recoveries of **65.7% for Li**, and a minimum grade of **300 ppm lithium** within claystone[151](index=151&type=chunk) [Capital and Operating Costs](index=29&type=section&id=Capital%20and%20Operating%20Costs) This section details capital and operating costs and expenditures - Total project capital is estimated at **$1.04 billion** for a **50-year mine life**, including **$785.4 million in initial capital** and **$258.8 million in sustaining capital**[154](index=154&type=chunk) Life of Mine Operating Cost Summary | | K USD LOM Cost | $/ton Processed | $/ton LHM | | :--- | :--- | :--- | :--- | | Mining Cost | $1,996,257 | $3 | $1,238 | | Process Cost | $6,937,244 | $12 | $4,302 | | Site G&A Cost | $190,039 | $0 | $118 | | Reclamation | $100,000 | $0 | $62 | | **Net Operating Cost** | **$9,223,540** | **$15** | **$5,720** | [Initial Economic Assessment ("IA")](index=30&type=section&id=Initial%20Economic%20Assessment%20(%22IA%22)) This section provides an initial economic assessment ("ia") - The IA, based on Measured and Indicated mineral resources, estimates a **$10.05 billion after-tax net present value (NPV)** at a **5% discount rate** and **$4.67 billion** at a **10% discount rate**[157](index=157&type=chunk) - The project has an estimated **69.8% Internal Rate of Return (IRR)** and a **2.3-year payback** of initial capital, with an average annual production of **33,000 tons of LHM**[157](index=157&type=chunk) - The IA is preliminary, and there is no certainty that its conclusions will be realized, as mineral resources not categorized as reserves do not have demonstrated economic viability[157](index=157&type=chunk) [Mineral Rights and Annual Property Holding Costs](index=30&type=section&id=Mineral%20Rights%20and%20Annual%20Property%20Holding%20Costs) This section covers mineral rights and annual property holding costs - Ownership of unpatented mining lode claims grants the right to explore, develop, and mine minerals without production royalties to the U.S. government, subject to BLM surface management[158](index=158&type=chunk) - Annual property holding costs total **$109,604**, including **$103,400 for Federal Claim Fees** and **$6,204 for County Recording Fees**[158](index=158&type=chunk) [Significant Encumbrances and Permitting](index=30&type=section&id=Significant%20Encumbrances%20and%20Permitting) This section addresses significant encumbrances and permitting - The Tonopah Flats property is **100% owned by ABTC** with no significant encumbrances or royalties[159](index=159&type=chunk) - Key BLM permits and bonding are in place for exploration activities, with a current reclamation bond of **$59,646**[159](index=159&type=chunk)[162](index=162&type=chunk) [Internal Controls](index=30&type=section&id=Internal%20Controls) This section discusses internal controls - Internal controls for reviewing and documenting exploration information, methods, and results were not materially impacted by the adoption of S-K 1300[160](index=160&type=chunk) [Item 3. Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) ABTC may be involved in routine legal proceedings, but currently, no pending matters are expected to have a material adverse effect on its operations or financial statements - The Company may be involved in routine legal proceedings, but currently, no pending matters are expected to have a material effect on operations or consolidated financial statements[161](index=161&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) ABTC's current exploration activities do not require a Mine Safety and Health Administration ID, and the company employs Best Management Practices for employee and contractor safety - ABTC's exploration activities do not currently require a Mine Safety and Health Administration ID[162](index=162&type=chunk) - The company employs Best Management Practices for employee and contractor safety[162](index=162&type=chunk) PART II This section discusses market information, financial condition, results of operations, and critical accounting policies [Item 5. Market for Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%20and%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ABTC's common stock is listed on The Nasdaq Capital Market under the symbol 'ABAT'. As of September 15, 2025, there were approximately 124 shareholders of record. The company has never declared or paid cash dividends and does not intend to in the foreseeable future, retaining earnings for operations and business development - ABTC's common stock is listed on The Nasdaq Capital Market under the trading symbol 'ABAT'[165](index=165&type=chunk) - As of September 15, 2025, the company had approximately **124 shareholders of record**[166](index=166&type=chunk) - The company has never declared or paid cash dividends and does not intend to in the foreseeable future, prioritizing retention of earnings for operations and business development[167](index=167&type=chunk) [Item 6. [Reserved.]](index=32&type=section&id=Item%206.%20%5BReserved.%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) ABTC is a growth-stage company focused on increasing domestic U.S. battery material production through recycling and primary resource development. The company saw significant revenue growth in fiscal year 2025, driven by its recycling facility operations, but continues to incur substantial losses and negative cash flows, raising going concern doubts. It relies heavily on grants and external financing for its capital-intensive projects - ABTC is a growth-stage company aiming to increase domestic U.S. production of battery materials through primary resource exploration, new extraction technologies, and lithium-ion battery recycling[169](index=169&type=chunk) - The company's revenue increased significantly from **$0.3 million in fiscal 2024 to $4.3 million in fiscal 2025**, reflecting the ramp-up of battery recycling facility operations[170](index=170&type=chunk)[178](index=178&type=chunk) - ABTC has been awarded multiple grants from the U.S. DOE and USABC, totaling over **$170 million**, to support the development of its recycling facilities and lithium hydroxide refinery[170](index=170&type=chunk)[171](index=171&type=chunk)[179](index=179&type=chunk) - The company incurred a **net loss of $46.8 million in FY2025** and used **$28.9 million in cash for operating activities**, leading to substantial doubt about its ability to continue as a going concern[181](index=181&type=chunk)[194](index=194&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk) [Forward-Looking Statements](index=32&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements and associated risks - This section contains forward-looking statements regarding future operations, financial position, revenues, costs, and plans, which involve known and unknown risks and uncertainties[168](index=168&type=chunk) [Overview](index=33&type=section&id=Overview) This section provides an overview of overview - ABTC is a growth-stage company focused on increasing domestic U.S. production of critical battery materials (lithium, nickel, cobalt, manganese) through primary resource exploration, new extraction technologies, and lithium-ion battery recycling[169](index=169&type=chunk) - The company's first integrated lithium-ion battery recycling facility generated its first revenue in Q4 FY2024 and saw continued growth in FY2025, supported by USABC and DOE grants[170](index=170&type=chunk) - ABTC is commercializing its low-cost lithium hydroxide manufacturing process from Nevada claystone, supported by DOE grants, and has completed a pilot plant for demonstration[171](index=171&type=chunk)[172](index=172&type=chunk) - The company was selected for **$19.5 million** and an additional **$40.5 million in 48C tax credits** for its battery recycling facilities[174](index=174&type=chunk)[175](index=175&type=chunk) [Fiscal Fourth Quarter 2025 Financial Highlights](index=34&type=section&id=Fiscal%20Fourth%20Quarter%202025%20Financial%20Highlights) This section summarizes key fiscal fourth quarter 2025 financial highlights Fiscal Fourth Quarter 2025 Financial Highlights | Description | Amount ($M) | | :--- | :--- | | Revenue | 2.8 | | GAAP Cost of Goods Sold | 5.1 | | Less: Depreciation Expense | (1.0) | | Less: Stock-Based Compensation | (0.2) | | Non-GAAP Cash Cost of Goods Sold | 3.9 | | Government grant reimbursement | 1.4 | - Revenue nearly tripled QoQ, reflecting significant ramp-up of battery recycling facility operations[177](index=177&type=chunk) - ABTC conducted additional drill programs at Tonopah Flats Lithium Project and continued scaling its multi-tonne per day integrated pilot facility[178](index=178&type=chunk) - Received a Letter of Interest from the US Export-Import Bank for up to **$900 million** in low-interest debt financing for the Tonopah Flats Lithium Project[178](index=178&type=chunk) [Fiscal Year 2025 Financial Highlights](index=34&type=section&id=Fiscal%20Year%202025%20Financial%20Highlights) This section summarizes key fiscal year 2025 financial highlights Fiscal Year 2025 Financial Highlights | Description | Amount ($M) | | :--- | :--- | | Revenue | 4.3 | | GAAP Cost of Goods Sold | 14.9 | | Less: Depreciation Expense | (3.6) | | Less: Stock-Based Compensation | (0.8) | | Non-GAAP Cash Cost of Goods Sold | 10.5 | | Government grant reimbursement | 5.7 | | Cash on hand (June 30, 2025) | 12.5 (7.5 available, 5.0 restricted) | | Net cash position (Sept 15, 2025) | 25.4 | - Revenue increased from **$0.3 million in FY2024 to $4.3 million in FY2025**, reflecting ramp-up of facility operations[178](index=178&type=chunk) - Awarded a **$150 million grant** from the US DOE for an additional battery recycling facility[179](index=179&type=chunk) - Completed contractual requirements for a **$2.3 million DOE grant** for its lithium pilot facility and a **$0.5 million USABC grant** for battery recycling and cell manufacturing[179](index=179&type=chunk)[180](index=180&type=chunk) [Components of Statements of Operations](index=35&type=section&id=Components%20of%20Statements%20of%20Operations) This section details the components of statements of operations Consolidated Statements of Operations Highlights (Fiscal Years Ended June 30) | Metric | FY2025 ($) | FY2024 ($) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | 4,290,224 | 343,500 | 3,946,724 | 1,149% | | Cost of goods sold | 14,864,633 | 3,304,707 | 11,559,926 | 350% | | Gross loss | (10,574,409) | (2,961,207) | (7,613,202) | 257% | | Total operating expenses | 31,448,920 | 44,808,466 | (13,359,546) | (30%) | | Net loss | (46,762,625) | (52,501,824) | 5,739,199 | (11%) | [Revenue](index=35&type=section&id=Revenue) This section analyzes the company's revenue - Net sales increased from **$0.3 million in FY2024 to $4.3 million in FY2025**, primarily from black mass and metal byproducts from recycling operations[182](index=182&type=chunk) [Cost of Goods Sold](index=35&type=section&id=Cost%20of%20Goods%20Sold) This section examines the cost of goods sold - Cost of goods sold increased from **$3.3 million in FY2024 to $14.9 million in FY2205**, driven by higher headcount, depreciation from the recycling facility, and production process finalization[183](index=183&type=chunk) - Management expects these costs to decrease as a percentage of revenue with scaling production and efficiency gains[183](index=183&type=chunk) - Non-GAAP cost of goods sold excludes depreciation and stock-based compensation for management's analytical purposes[184](index=184&type=chunk) [Operating Expenses](index=36&type=section&id=Operating%20Expenses) This section reviews the company's operating expenses - Total operating expenses decreased by **30% from $44.8 million in FY2024 to $31.4 million in FY2025**[186](index=186&type=chunk) - General and administrative expenses increased by **$5.0 million to $21.2 million in FY2025**, due to higher payroll, stock-based compensation, and property tax[186](index=186&type=chunk) - Research and development expenses decreased by **$5.8 million to $8.5 million in FY2025**, due to cost allocation to inventory/COGS as recycling operations scaled and higher grant reimbursements[187](index=187&type=chunk) - Exploration costs decreased by **$2.3 million to $1.8 million in FY2025**, due to lower payroll and a shift in focus from drilling to producing the Preliminary Feasibility Study (PFS)[188](index=188&type=chunk) - An impairment loss of **$10.2 million** on held-for-sale assets was recorded in FY2024, related to Fernley properties. As of June 30, 2025, certain water rights (**$3.8 million**) were also reclassified as held for sale[189](index=189&type=chunk) [Other (Expense) Income](index=36&type=section&id=Other%20(Expense)%20Income) This section covers other (expense) income items - Total other expense remained consistent at **$4.7 million** in both FY2025 and FY2024[190](index=190&type=chunk) - Key changes in FY2025 included a **$1.0 million change in fair value of derivative liability (gain)**, a **$1.4 million credit loss expense** on a subscription receivable, and a **$0.4 million decrease** in amortization of financing costs[190](index=190&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity and capital resources Liquidity Overview (June 30) | Metric | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Cash | 12.5 | 7.0 | | Total Assets | 84.5 | 77.7 | | Total Current Liabilities | 13.7 | 15.8 | | Working Capital | 10.9 | 2.6 | | Working Capital (excl. held-for-sale assets) | 1.1 | (5.8) | [Going Concern](index=37&type=section&id=Going%20Concern) This section addresses the company's going concern status - The company's ability to continue as a going concern is dependent on generating profit and obtaining debt or equity financing, which is uncertain[194](index=194&type=chunk) - Substantial doubt about going concern exists for 12 months from the financial statements' issuance date[194](index=194&type=chunk) - The company sold **14,097,636 common shares for $18.6 million** through an ATM program in FY2025, which could provide liquidity[195](index=195&type=chunk)[196](index=196&type=chunk) [Cash Flows](index=37&type=section&id=Cash%20Flows) This section analyzes the company's cash flows Consolidated Statements of Cash Flows (Fiscal Years Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Operating Activities | (28,921,158) | (16,736,231) | | Investing Activities | (2,548,476) | (12,969,219) | | Financing Activities | 36,942,152 | 34,387,087 | | Net Increase in Cash | 5,472,518 | 4,681,637 | - Cash used in operating activities increased to **$28.9 million in FY2025** (from **$16.7 million in FY2024**) due to increased scale of operations, headcount, and administrative costs[199](index=199&type=chunk) - Cash used in investing activities decreased to **$2.5 million in FY2025** (from **$13.0 million in FY2024**) as equipment purchases for the recycling plant build-out were higher in the prior year[200](index=200&type=chunk) - Cash provided by financing activities increased to **$36.9 million in FY2025** (from **$34.4 million in FY2024**), primarily from equity and debt financings[201](index=201&type=chunk)[202](index=202&type=chunk) [Off-Balance Sheet Arrangements](index=38&type=section&id=Off-Balance%20Sheet%20Arrangements) This section details off-balance sheet arrangements - As of June 30, 2025 and 2024, ABTC had no off-balance sheet arrangements[203](index=203&type=chunk) [Working Capital](index=38&type=section&id=Working%20Capital) This section reviews the company's working capital Working Capital (June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Current Assets | 29,532,110 | 18,406,048 | | Restricted Cash | (5,000,000) | - | | Current Liabilities | (13,668,605) | (15,798,298) | | **Working Capital** | **10,863,505** | **2,607,750** | - Positive working capital of **$10.9 million** at June 30, 2025, largely due to the current classification of held-for-sale assets[193](index=193&type=chunk) [Future Financings](index=38&type=section&id=Future%20Financings) This section discusses future financings plans - The Company will continue to rely on sales of common shares, debt, or other financing to fund operations beyond internal revenue and government awards[205](index=205&type=chunk) - Issuances of additional shares will result in dilution to existing stockholders[205](index=205&type=chunk) [Critical Accounting Estimates and Judgments](index=38&type=section&id=Critical%20Accounting%20Estimates%20and%20Judgments) This section outlines critical accounting estimates and judgments - Preparation of financial statements requires management to make estimates and assumptions, which are evaluated ongoingly and can materially differ from actual results[206](index=206&type=chunk)[254](index=254&type=chunk) - Critical accounting estimates include revenue recognition, share-based compensation, impairments of long-lived assets, and assets held-for-sale[207](index=207&type=chunk) [Fair Value Measurements](index=38&type=section&id=Fair%20Value%20Measurements) This section explains fair value measurements - Fair value measurements for derivative liabilities (Level 3) involved assumptions like volatility, risk-free rates, and duration[208](index=208&type=chunk) - Derivative liabilities and liability-classified equity-linked contracts were reclassified from long-term liabilities to equity as of December 31, 2024[208](index=208&type=chunk) [Revenue Recognition](index=39&type=section&id=Revenue%20Recognition) This section details the company's revenue recognition policies - Revenue is recognized when control of physical goods (recycled metals, black mass) transfers to the customer, typically upon release to the shipper[209](index=209&type=chunk)[271](index=271&type=chunk) - Revenue is based on contractually stated selling prices, net of sales tax, and adjusted for estimated claims and discounts[210](index=210&type=chunk)[272](index=272&type=chunk) [Long-Lived Assets](index=39&type=section&id=Long-Lived%20Assets) This section covers long-lived assets accounting - Long-lived assets are evaluated for impairment when events or changes indicate that the carrying value may not be recoverable, using projections of future cash flows[211](index=211&type=chunk) - No impairment loss was recognized on long-lived assets during FY2025 and FY2024[211](index=211&type=chunk) [Assets Held-for-Sale](index=39&type=section&id=Assets%20Held-for-Sale) This section describes assets held-for-sale classification - Assets are classified as held for sale when management commits to a plan to sell, the asset is available for immediate sale, and the sale is probable within one year[212](index=212&type=chunk) - Held-for-sale assets are reported at the lower of carrying value or fair value less cost to sell, with fair values estimated using market data and estimates[213](index=213&type=chunk) [Stock-Based Compensation](index=39&type=section&id=Stock-Based%20Compensation) This section discusses stock-based compensation accounting - Fair value of share-based payments is estimated using the Black-Scholes option pricing model, which involves subjective assumptions like volatility, risk-free rates, and expected term[214](index=214&type=chunk)[279](index=279&type=chunk) [New Accounting Pronouncements](index=39&type=section&id=New%20Accounting%20Pronouncements) This section outlines new accounting pronouncements and their impact - Adopted ASU 2023-07 (Improvements to Reportable Segment Disclosures) in FY2025[294](index=294&type=chunk) - Evaluating the effect of ASU 2023-09 (Improvements to Income Tax Disclosures), effective after December 15, 2024[295](index=295&type=chunk) - Evaluating the effect of ASU 2024-03 (Expense Disaggregation Disclosures), effective after December 15, 2026[296](index=296&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable to the company - Not Applicable[216](index=216&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents ABTC's audited consolidated financial statements for the fiscal years ended June 30, 2025, and 2024, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with comprehensive notes detailing accounting policies, liquidity, grants, assets, liabilities, and equity. The independent auditor's report highlights substantial doubt about the company's ability to continue as a going concern - The consolidated financial statements for FY2025 and FY2024 are presented in accordance with U.S. GAAP[220](index=220&type=chunk) - The independent auditor (KPMG LLP) expressed an opinion that the financial statements present fairly, but also noted substantial doubt about the company's ability to continue as a going concern due to recurring losses and negative operating cash flows[220](index=220&type=chunk)[221](index=221&type=chunk) - A critical audit matter identified was the valuation of held-for-sale assets, requiring subjective judgment and specialized knowledge[225](index=225&type=chunk)[227](index=227&type=chunk) [Report of Independent Registered Public Accounting Firm](index=41&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This section presents the report of independent registered public accounting firm - KPMG LLP audited the consolidated financial statements for FY2025 and FY2024, expressing a fair presentation opinion[220](index=220&type=chunk) - The auditors noted substantial doubt about ABTC's ability to continue as a going concern due to recurring losses and negative operating cash flows[221](index=221&type=chunk) - The valuation of held-for-sale assets was identified as a critical audit matter due to subjective judgment and key assumptions[225](index=225&type=chunk)[227](index=227&type=chunk) [Consolidated Balance Sheets](index=43&type=section&id=Consolidated%20Balance%20Sheets) This section provides the company's consolidated balance sheets Consolidated Balance Sheets (June 30) | ASSETS | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Cash | 7,474,304 | 7,001,786 | | Restricted cash | 5,000,000 | – | | Total current assets | 29,532,110 | 18,406,048 | | Property and equipment, net | 45,469,853 | 46,314,966 | | Total assets | 84,457,791 | 77,675,132 | | LIABILITIES & STOCKHOLDERS' EQUITY | | | | Total current liabilities | 13,668,605 | 15,798,298 | | Total liabilities | 13,858,768 | 16,207,492 | | Total stockholders' equity | 70,599,023 | 61,467,640 | | Total liabilities and stockholders' equity | 84,457,791 | 77,675,132 | [Consolidated Statements of Operations](index=45&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's consolidated statements of operations Consolidated Statements of Operations (Fiscal Year Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Revenue | 4,290,224 | 343,500 | | Cost of goods sold | 14,864,633 | 3,304,707 | | Gross loss | (10,574,409) | (2,961,207) | | Total operating expenses | 31,448,920 | 44,808,466 | | Net loss attributable to common stockholders | (46,762,625) | (52,501,824) | | Net loss per share, basic and diluted | (0.58) | (1.02) | | Weighted average shares outstanding, basic and diluted | 80,316,363 | 51,243,106 | [Consolidated Statement of Stockholders' Equity](index=46&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity) This section details changes in consolidated statement of stockholders' equity - Stockholders' equity increased from **$61.5 million in FY2024 to $70.6 million in FY2025**, despite a net loss, primarily due to additional paid-in capital from equity issuances[237](index=237&type=chunk)[240](index=240&type=chunk) - Key activities in FY2025 included issuance of common shares from vesting awards, employee stock purchase plan, At-The-Market Offering, and registered direct offerings[239](index=239&type=chunk)[240](index=240&type=chunk) - The number of common shares outstanding increased from **64,061,763 in FY2024 to 97,398,519 in FY2025**[232](index=232&type=chunk) [Consolidated Statements of Cash Flows](index=49&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's consolidated statements of cash flows Consolidated Statements of Cash Flows (Fiscal Year Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net loss | (46,762,625) | (52,501,824) | | Net Cash Used in Operating Activities | (28,921,158) | (16,736,231) | | Net Cash Used in Investing Activities | (2,548,476) | (12,969,219) | | Net Cash Provided by Financing Activities | 36,942,152 | 34,387,087 | | Increase in Cash and Restricted Cash | 5,472,518 | 4,681,637 | | Cash and Restricted Cash – End of Period | 12,474,304 | 7,001,786 | [Notes to the Consolidated Financial Statements](index=51&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides notes to the consolidated financial statements [1. Organization and Nature of Operations](index=51&type=section&id=1.%20Organization%20and%20Nature%20of%20Operations) This section describes the company's organization and nature of operations - ABTC is an integrated critical battery materials company focused on increasing domestic U.S. production of lithium, nickel, cobalt, and manganese through primary resource exploration, new extraction technologies, and lithium-ion battery recycling[244](index=244&type=chunk) - The company was incorporated in Nevada in 2011 and generated its initial revenue in Q4 FY2024[245](index=245&type=chunk) [2. Liquidity and Going Concern](index=51&type=section&id=2.%20Liquidity%20and%20Going%20Concern) This section addresses liquidity and going concern issues - ABTC incurred a **net loss of $46.8 million** and used **$28.9 million cash in operations in FY2025**, resulting in an accumulated deficit of **$260.1 million**[246](index=246&type=chunk) - These uncertainties raise substantial doubt about the company's ability to continue as a going concern for the next 12 months[247](index=247&type=chunk) - Continuation is dependent on generating profit and obtaining additional debt or equity financing, which may dilute existing stockholders[247](index=247&type=chunk)[249](index=249&type=chunk) [3. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements](index=52&type=section&id=3.%20Basis%20of%20Presentation,%20Summary%20of%20Significant%20Accounting%20Policies%20and%20Recent%20Accounting%20Pronouncements) This section covers basis of presentation, summary of significant accounting policies and recent accounting pronouncements - Consolidated financial statements are prepared in accordance with U.S. GAAP and include ABTC and its wholly-owned subsidiaries[251](index=251&type=chunk)[252](index=252&type=chunk) - Key accounting estimates include revenue recognition, stock-based compensation, valuation of long-lived assets, and assets held-for-sale[253](index=253&type=chunk) - The company adopted ASU 2023-07 in FY2025 and is evaluating the impact of ASU 2023-09 and ASU 2024-03[294](index=294&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk) [4. Government Grant and Tax Credit Awards](index=59&type=section&id=4.%20Government%20Grant%20and%20Tax%20Credit%20Awards) This section details government grant and tax credit awards - Grants receivable represent qualifying costs incurred where conditions are met but funds are not yet received[297](index=297&type=chunk) - DOE grant for claystone lithium technology: **$4.5 million total budget**, **$2.3 million eligible reimbursement**, **100% invoiced** by June 30, 2025[298](index=298&type=chunk) - USABC grant for battery recycling: **$2.0 million total budget**, **$0.5 million eligible reimbursement**, **100% invoiced** by June 30, 2025[299](index=299&type=chunk) - DOE grant for lithium hydroxide refinery: **$115.5 million total budget**, **$57.7 million eligible reimbursement**, **$4.7 million invoiced** by June 30, 2025 (**8%**)[300](index=300&type=chunk) - DOE grant for next-gen battery recycling: **$20.0 million total budget**, **$10.0 million eligible reimbursement**, **$2.2 million invoiced** by June 30, 2025 (**22%**)[301](index=301&type=chunk) - 48C tax credits: **$19.5 million** for existing recycling facility (qualifying expenditures incurred) and **$40.5 million** for a new commercial recycling facility (no qualifying expenditures yet)[302](index=302&type=chunk)[303](index=303&type=chunk) - DOE grant for new lithium-ion battery recycling facility: **$150 million awarded**, **$0.6 million invoiced** by June 30, 2025 (**0.4%**)[304](index=304&type=chunk) Effects of Government Grants on Financial Statements (Fiscal Years Ended June 30) | Description | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Reduction to research and development expenses | (5,087,266) | (2,317,987) | | Reduction to property and equipment | (591,368) | (1,025,347) | | **Total reductions due to grant reimbursements received** | **(5,678,634)** | **(3,343,334)** | [5. Inventories](index=60&type=section&id=5.%20Inventories) This section describes the company's inventories - Inventory consists of raw materials (battery feedstock) and finished goods (black mass, other metals), valued at the lower of cost or net realizable value on a first-in, first-out basis[306](index=306&type=chunk) Inventory Components (June 30) | Component | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Raw materials | 216,052 | 66,088 | | Finished goods | 192,095 | 88,232 | | **Total inventories** | **408,147** | **154,320** | - Inventory was written down by **$2.9 million in FY2025** and **$0.6 million in FY2024** to its net realizable value[307](index=307&type=chunk) [6. Property and Equipment](index=61&type=section&id=6.%20Property%20and%20Equipment) This section outlines property and equipment details Property and Equipment, Net (June 30) | Component | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Land | 11,225,956 | 8,860,916 | | Building | 16,653,019 | 24,867,784 | | Equipment and vehicles | 24,363,000 | 14,313,970 | | Total | 52,241,975 | 48,042,670 | | Less: accumulated depreciation | (6,772,122) | (1,727,704) | | **Property and equipment, net** | **45,469,853** | **46,314,966** | - Depreciation expense was **$5.0 million in FY2025** and **$1.7 million in FY2024**[308](index=308&type=chunk) [7. Assets Held for Sale](index=61&type=section&id=7.%20Assets%20Held%20for%20Sale) This section discusses assets held for sale - An impairment loss of **$10.2 million** was recorded in FY2024 for two parcels of land and a building in Fernley, Nevada, classified as held-for-sale[309](index=309&type=chunk) - As of June 30, 2025, **11.55 acres of land (valued at $2.4 million)** were reclassified back to property, plant, and equipment, while the remaining **12.44 acres and building ($6.0 million)** remain held-for-sale[309](index=309&type=chunk) - Certain water rights with a carrying value of **$3.8 million** were reclassified to assets held for sale as of March 31, 2025[310](index=310&type=chunk) [8. Mining Properties](index=62&type=section&id=8.%20Mining%20Properties) This section details the company's mining properties - ABTC exercised its option to purchase unpatented lode claims in Tonopah, Nevada, in July 2022[312](index=312&type=chunk) - The company is still in the exploration stage, expensing all mineral exploration costs, and has not yet established proven and probable reserves[312](index=312&type=chunk) - A third exploration program began in July 2023 to upgrade resource classification, and an Amended Resource Estimate and Initial Assessment for TFLP was completed in April 2024[313](index=313&type=chunk)[315](index=315&type=chunk) [9. Intangible Assets](index=62&type=section&id=9.%20Intangible%20Assets) This section covers intangible assets - Intangible assets consist of water rights valued at **$0.7 million**, acquired with the McCarran recycling facility, which have an indefinite useful life[316](index=316&type=chunk) Intangible Assets (June 30) | Asset | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Water rights | 766,694 | 4,519,038 | [10. Leases](index=62&type=section&id=10.%20Leases) This section describes the company's leases - ABTC recognizes operating lease right-of-use (RoU) assets and lease liabilities based on the present value of lease payments over the lease term[318](index=318&type=chunk) - The company leases its principal office in Reno (expiring Nov 2027) and lab space, using an estimated incremental borrowing rate of **8.0%** for discount rate[319](index=319&type=chunk)[320](index=320&type=chunk) Operating Lease Information (June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Operating lease cost | 361,169 | 436,476 | | Operating lease right-of-use asset | 296,157 | 42,103 | | Operating lease liabilities | 306,026 | 54,303 | | Weighted average lease term (years) | 2.42 | N/A | | Weighted average discount rate | 8.00% | N/A | [11. Accounts Payable and Accrued Liabilities](index=63&type=section&id=11.%20Accounts%20Payable%20and%20Accrued%20Liabilities) This section details accounts payable and accrued liabilities Accounts Payable and Accrued Liabilities (June 30) | Component | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Trade payables | 417,195 | 4,255,398 | | Fixed assets in trade payables | 283,278 | 996,970 | | Accrued expenses | 5,122,514 | 2,244,266 | | Marketing agreement settlement | - | 1,800,000 | | **Total accounts payable and accrued liabilities** | **5,822,987** | **9,296,634** | - Total accounts payable and accrued liabilities decreased from **$9.3 million in FY2024 to $5.8 million in FY2025**[324](index=324&type=chunk) - A **$1.8 million marketing agreement settlement** with Mercuria Energy America, LLC was accrued in FY2024 and fully paid by June 30, 2025[325](index=325&type=chunk) [12. Notes Payable](index=64&type=section&id=12.%20Notes%20Payable) This section covers notes payable - In August 2023, ABTC entered a Securities Purchase Agreement for up to **$51.0 million** in senior secured convertible notes, with **$25.0 million** initially received[326](index=326&type=chunk) - The notes were amended in September 2024 to allow principal payment in common shares and defer remaining principal, resulting in a **$0.7 million loss on extinguishment**[328](index=328&type=chunk) - A new series of **$12.0 million senior secured convertible notes (2024 Notes)** was issued in November 2024, maturing September 1, 2025, requiring **$5.0 million in restricted cash**[329](index=329&type=chunk) - The amendment to the Purchase Agreement was accounted for as a troubled debt restructuring, with a revised effective interest rate of **50.73%**[330](index=330&type=chunk) Net Carrying Amounts of Notes (June 30, 2025) | Component | Amount ($) | | :--- | :--- | | Principal outstanding | 8,000,000 | | Debt discount | (2,551,043) | | Amortization of debt discount | 2,280,798 | | **Net carrying value** | **7,729,755** | [13. Derivative Liabilities](index=65&type=section&id=13.%20Derivative%20Liabilities) This section discusses derivative liabilities - Embedded conversion features on convertible notes and outstanding warrants were treated as derivative liabilities due to insufficient authorized shares to settle equity-linked contracts[334](index=334&type=chunk) - In November 2024, shareholders approved an increase in authorized common stock to **250,000,000 shares**, allowing reclassification of derivative liabilities to equity[339](index=339&type=chunk) - The company recognized an **$0.8 million gain** on change in fair value of derivative liabilities prior to reclassification to equity, with **$2.1 million reclassed**[339](index=339&type=chunk) Derivative Liabilities Activity (Fiscal Year Ended June 30, 2025) | Activity | Warrant Derivative Liabilities ($) | Conversion Option Derivative Liability ($) | Total Derivative Liabilities ($) | | :--- | :--- | :--- | :--- | | Balance, June 30, 2024 | - | - | - | | Change in fair value | (657,174) | (138,061) | (795,235) | | Fair value of issuances | 2,632,467 | - | 2,632,467 | | Fair value of extinguishments | (87,421) | - | (87,421) | | Fair value of reclassifications | (1,887,872) | 138,061 | (1,749,811) | | **Balance, June 30, 2025** | **-** | **-** | **-** | [14. Stockholders' Equity](index=67&type=section&id=14.%20Stockholders'%20Equity) This section details stockholders' equity - The Board of Directors is authorized to issue preferred stock in various series (A, B, C, D), none of which were outstanding as of June 30, 2025 and 2024[341](index=341&type=chunk)[342](index=342&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk)[345](index=345&type=chunk)[346](index=346&type=chunk) - Shareholders approved an increase in authorized common stock from **80,000,000 to 250,000,000 shares** in November 2024[347](index=347&type=chunk) - FY2025 activities included issuing **3,407,702 common shares** from vesting awards, **389,349 shares** under the 2024 ESPP, and **14,097,636 shares** through an At-The-Market Offering[239](index=239&type=chunk)[348](index=348&type=chunk)[355](index=355&type=chunk) - The company issued **8,773,586 common shares** and warrants in December 2024 through registered direct offerings, raising **$15.0 million net of offering costs**[357](index=357&type=chunk) Potentially Dilutive Shares Outstanding (June 30) | Type | 2025 | 2024 | | :--- | :--- | :--- | | Convertible notes | 9,501,948 | 769,342 | | Warrants | 17,380,150 | 6,928,758 | | Share awards outstanding | 8,583,466 | 3,428,604 | | **Total potentially dilutive** | **35,465,564** | **11,126,704** | [15. Share Purchase Warrants](index=70&type=section&id=15.%20Share%20Purchase%20Warrants) This section covers share purchase warrants - In FY2025, **14,360,308 total warrants** were issued, including those from private placements and registered direct offerings[367](index=367&type=chunk) Share Purchase Warrants Activity (June 30) | Activity | Number of Warrants | Weighted Average Exercise Price ($) | | :--- | :--- | :--- | | Balance, June 30, 2023 | 5,729,360 | 14.53 | | Granted | 1,407,135 | 4.96 | | Exercised | (100,002) | 1.13 | | Expired | (107,735) | 3.75 | | Balance, June 30, 2024 | 6,928,758 | 12.95 | | Granted | 14,360,308 | 1.56 | | Rescinded | (1,750,000) | 1.00 | | Exercised | (416,670) | 1.13 | | Expired | (1,742,246) | 10.46 | | **Balance, June 30, 2025** | **17,380,150** | **5.28** | | Exercisable, June 30, 2025 | 16,810,482 | 5.26 | [16. Equity Compensation Awards](index=70&type=section&id=16.%20Equity%20Compensation%20Awards) This section discusses equity compensation awards - The 2021 Retention Plan authorizes issuing shares to employees and non-employees, generally vesting over four years[369](index=369&type=chunk)[370](index=370&type=chunk) - In FY2025, **9.5 million share awards** were granted, compared to **3.3 million in FY2024**[370](index=370&type=chunk) Share Award Activity (June 30) | Activity | Units | Weighted Average Grant Date Fair Value per Unit ($) | | :--- | :--- | :--- | | Unvested share awards at June 30, 2023 | 1,736,376 | 8.25 | | Granted | 3,290,268 | 3.51 | | Vested | (1,306,480) | 5.29 | | Forfeitures | (291,560) | 5.94 | | Unvested share awards at June 30, 2024 | 3,428,604 | 5.02 | | Granted | 9,454,729 | 1.03 | | Vested | (3,135,227) | 2.59 | | Forfeitures | (1,164,640) | 1.94 | | **Unvested awards at June 30, 2025** | **8,583,466** | **1.93** | - Total stock-based compensation expense was **$14.7 million in FY2025** and **$14.6 million in FY2024**[372](index=372&type=chunk) - As of June 30, 2025, **$14.3 million of unamortized expenses** remain, to be recognized over a weighted-average period of **2.99 years**[373](index=373&type=chunk) [17. Income Taxes](index=72&type=section&id=17.%20Income%20Taxes) This section details the company's income taxes - No income tax provisions were recognized in FY2025 and FY2024 due to the company's net loss position[374](index=374&type=chunk) - A valuation allowance of **$41.7 million (FY2025)** and **$32.2 million (FY2024)** has been recorded against deferred tax assets, as realization is not considered more likely than not[374](index=374&type=chunk) - As of June 30, 2025, the company has accumulated federal and state net operating loss carryforwards of approximately **$141.8 million** and **$15.6 million**, respectively[375](index=375&type=chunk) - Utilization of NOLs and credits may be subject to annual limitations due to ownership changes[376](index=376&type=chunk) [18. Segment and Other Information](index=74&type=section&id=18.%20Segment%20and%20Other%20Information) This section provides segment and other information - The Chief Executive Officer is the chief operating decision maker (CODM), and the company operates as a single business operating segment[379](index=379&type=chunk) - Revenue from three major customers accounted for **74% of total revenue in FY2025**[380](index=380&type=chunk) - Substantially all long-lived assets and operating lease right-of-use assets were located in the United States[380](index=380&type=chunk) [19. Supplemental Statement of Cash Flow Disclosures](index=74&type=section&id=19.%20Supplemental%20Statement%20of%20Cash%20Flow%20Disclosures) This section includes supplemental statement of cash flow disclosures Supplemental Cash Flow Disclosures (Fiscal Years Ended June 30) | Item | 2025 ($) | 2024

Core Insights - American Battery Technology Company (ABTC) has reported a significant increase in quarterly revenue, nearly tripling to $2.8 million in Q4 FY 2025, up 183% from $1.0 million in Q3 FY 2025 [6] - The company achieved a full year revenue of $4.3 million for FY 2025, marking an increase of 1,149% from $0.3 million in FY 2024, indicating a strong growth trajectory [6] - Operational costs have been controlled effectively, with cash cost of goods sold rising by only 70% in Q4 FY 2025 compared to Q3 FY 2025, demonstrating operational efficiency [6][2] Financial Highlights - Q4 FY 2025 revenue reached $2.8 million, a 183% increase from Q3 FY 2025 [6] - FY 2025 revenue totaled $4.3 million, a substantial increase of 1,149% from FY 2024 [6] - Total operating expenses for FY 2025 decreased by 30% to $31.4 million from $44.8 million in FY 2024, despite scaling operations [6] Operational Developments - The company is ramping operations at its first battery recycling facility, with Q4 throughput increasing by 70% over Q3 [7] - ABTC has secured a $144 million competitive grant from the U.S. Department of Energy for the construction of a second battery recycling facility [7] - The company has developed technologies for manufacturing lithium hydroxide from Nevada-based claystone material and has constructed a pilot facility to demonstrate these technologies [7] Strategic Initiatives - ABTC's Tonopah Flats Lithium Project is anticipated to manufacture 30,000 tonnes of lithium hydroxide per year, with long-term commercial offtake agreements under development [11] - The project has been prioritized by the FAST-41 Permitting Council to streamline permitting processes [11] - ABTC received a Letter of Interest from the US Export-Import Bank for a $900 million low-interest loan to support the construction of the commercial lithium mine and refinery [11] Market Position - ABTC was added to the Russell 2000 index in June 2025, resulting in increased trading volume and institutional ownership [6] - The company is committed to a circular supply chain for battery metals, focusing on innovation and sustainable energy solutions [9]