Core Insights - Aqua Metals, Inc. is participating in The Battery Show North America from October 6–9, 2025, in Detroit, Michigan, focusing on sustainable lithium-ion battery recycling [1] - The company aims to engage with key players in the battery ecosystem to advance commercial relationships and strategic partnerships [3] Company Overview - Aqua Metals is a pioneer in sustainable lithium-ion battery recycling, utilizing its proprietary AquaRefining™ technology to recycle critical minerals from end-of-life batteries and manufacturing scrap [5][6] - The company is based in Reno, Nevada, and is focused on commercializing non-polluting recycling processes that close the loop on critical minerals for clean energy technologies [6] Industry Context - The Battery Show North America serves as a premier gathering for the advanced battery and electric vehicle industries, facilitating discussions on emerging technologies and critical conversations for a sustainable energy future [4] - David Regan, Aqua Metals' Vice President of Commercial, will participate in a panel discussing U.S. supply chain resilience and strategies for securing essential minerals for clean energy [2][5]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders [1] Premarket Gainers - PepGen Inc. (PEPG) is up 151% at $6.68 [3] - 22nd Century Group, Inc. (XXII) is up 27% at $1.93 [3] - Immuneering Corporation (IMRX) is up 23% at $11.36 [3] - uniQure N.V. (QURE) is up 10% at $52.58 [3] - Lithium Americas Corp. (LAC) is up 9% at $6.60 [3] - Jasper Therapeutics, Inc. (JSPR) is up 9% at $2.55 [3] - American Shared Hospital Services (AMS) is up 8% at $2.75 [3] - PSQ Holdings, Inc. (PSQH) is up 7% at $3.06 [3] - K Wave Media Ltd. (KWM) is up 7% at $2.48 [3] - ClearPoint Neuro, Inc. (CLPT) is up 5% at $20.48 [3] Premarket Losers - Transocean Ltd. (RIG) is down 14% at $3.11 [4] - Cyclerion Therapeutics, Inc. (CYCN) is down 12% at $2.83 [4] - CarMax, Inc. (KMX) is down 11% at $50.38 [4] - ARB IOT Group Limited (ARBB) is down 11% at $10.45 [4] - SHF Holdings, Inc. (SHFS) is down 10% at $6.49 [4] - Digital Brands Group, Inc. (DBGI) is down 10% at $6.21 [4] - Aqua Metals, Inc. (AQMS) is down 9% at $5.29 [4] - Akanda Corp. (AKAN) is down 8% at $3.96 [4] - Galecto, Inc. (GLTO) is down 8% at $3.88 [4] - Platinum Analytics Cayman Limited (PLTS) is down 7% at $11.12 [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - SHF Holdings, Inc. (SHFS) increased by 150% to $8.17 - Lithium Americas Corp. (LAC) rose by 69% to $5.18 - Aqua Metals, Inc. (AQMS) gained 50% reaching $6.11 - CleanCore Solutions, Inc. (ZONE) up by 44% at $2.87 - Cyclerion Therapeutics, Inc. (CYCN) increased by 33% to $4.03 - Twin Vee Powercats Co. (VEEE) rose by 17% to $2.92 - Solidion Technology, Inc. (STI) up by 11% at $5.09 - China Pharma Holdings, Inc. (CPHI) increased by 11% to $2.18 - Stardust Power Inc. (SDST) rose by 10% to $3.04 - Aligos Therapeutics, Inc. (ALGS) increased by 7% to $11.03 [3] Premarket Losers - Aytu BioPharma, Inc. (AYTU) decreased by 15% to $2.11 - Professional Diversity Network, Inc. (IPDN) down by 13% to $4.10 - STRATA Skin Sciences, Inc. (SSKN) fell by 10% to $2.31 - Cohu, Inc. (COHU) decreased by 9% to $20.68 - Super League Enterprise, Inc. (SLE) down by 9% to $7.74 - CTW Cayman (CTW) fell by 9% to $2.29 - Fitell Corporation (FTEL) decreased by 8% to $7.70 - Soluna Holdings, Inc. (SLNH) down by 8% to $2.16 - StableX Technologies, Inc. (SBLX) decreased by 5% to $5.22 - Indaptus Therapeutics, Inc. (INDP) down by 5% to $2.95 [4]

Group 1: Stock Performance and Insider Transactions - Aqua Metals Inc. (AQMS) shares surged 35.8% to $5.50 during after-hours trading following insider stock transactions by CEO Stephen Cotton [1] - SEC Form 4 filing revealed that Cotton was granted 11,250 fully vested common shares on September 19, increasing his total holdings to 115,369 shares [2] - Cotton sold 4,765 shares at $4.12 each to cover taxes due on the stock award [2] Group 2: CEO's Current Holdings - After the transactions, Cotton beneficially owns 110,604 shares directly, with an additional 76,057 shares underlying restricted stock units (RSUs) that remain unvested [3] Group 3: Market Context and Volatility - Aqua Metals has experienced extreme volatility over the past year, trading between $3.37 and $39.76, with a current market capitalization of $5.65 million and an average daily volume of 46,080 shares [4] Group 4: Technical Analysis - The company has lost 89.39% over the past year, with a peak of $39.44 on September 27, 2024, and a closing price of $4.05 recently, representing a loss of 89.73% from the peak [5] - Benzinga Pro data indicates that AQMS closed at $4.05 on Tuesday, with negative price trends across all time frames [5]

Core Insights - Aqua Metals has entered into a Memorandum of Understanding (MOU) with Impossible Metals to create a domestic supply chain for critical minerals essential for electrification and clean energy technologies [1][2] - The partnership aims to combine Impossible Metals' seabed mining technology with Aqua Metals' recycling capabilities to produce and refine minerals like nickel, cobalt, copper, manganese, and rare earth elements [2][3] - This collaboration is positioned as a step towards enhancing America's critical mineral independence and establishing a sustainable infrastructure for mineral supply [3] Company Overview - Aqua Metals is focused on clean metals recycling and has developed the AquaRefining™ technology, which is a non-polluting process for lithium-ion battery recycling [5] - Impossible Metals specializes in underwater robotics for sustainable mineral collection, with its Eureka Collection System designed to harvest polymetallic nodules while protecting marine ecosystems [4][5] - Both companies share a commitment to innovation and environmental responsibility, aiming to secure a stable supply chain for critical minerals in the U.S. [3][4] Strategic Goals - The partnership will explore the integration of seabed mining and recycling to create a low-carbon, closed-loop process that minimizes waste and environmental impact [5] - The collaboration is expected to contribute to a more resilient and transparent critical minerals market, reducing dependence on overseas sources, particularly from China [5][6] - Future opportunities may arise to expand the scope of this collaboration, enhancing the stability of the global minerals market [5]

Core Viewpoint - Aqua Metals, Inc. has regained compliance with Nasdaq's minimum bid price requirement, allowing the company to continue its listing on the Nasdaq Capital Market [1][2][3] Group 1: Compliance and Stock Performance - The company received written notification from Nasdaq confirming compliance after executing a reverse stock split and maintaining a closing bid price above $1.00 for the required number of consecutive trading days [1][2] - Prior to this notification, Aqua Metals had been notified on July 2, 2025, that it was not in compliance due to its stock trading below $1.00 for 30 consecutive trading days [2] Group 2: Strategic Focus and Growth Initiatives - The company aims to advance its technology and pursue partnerships to expand its addressable market, with a focus on building feedstock and offtake partnerships [3] - Aqua Metals is also pursuing joint ventures, licensing, and financing opportunities for the development of its first AquaRefining™ Campus, aiming to establish a secure domestic supply chain for critical battery materials [3] - The company plans to optimize its capital structure and maintain access to capital markets to support its growth initiatives [3] Group 3: Company Overview - Aqua Metals, Inc. is focused on sustainable lithium-ion battery recycling through its patented AquaRefining™ technology, which is non-polluting and aims to close the loop on critical minerals for clean energy technologies [4]

Financial Data and Key Metrics Changes - The company ended the quarter with cash and cash equivalents of approximately $1.9 million, increasing to about $3.2 million as of the call [11] - The net loss for the quarter was approximately $6.8 million, with a basic and diluted net loss per share of negative $7.44 for 2025 compared to negative $9.94 in 2024 [14] - Year-to-date cash used in operating activities was $5.3 million, showing improvement versus the prior year [15] Business Line Data and Key Metrics Changes - The company produced lithium carbonate with fluorine content below 30 parts per million, a best-in-class result for recycled lithium [6] - Over one metric ton of high purity NMC was produced for qualification sampling with potential partners [7] - Plant operations expenses were $800,000, down from $2.4 million a year ago, and general and administrative expenses were $2.2 million, down from $3.4 million in 2024 [13] Market Data and Key Metrics Changes - The company noted that AquaRefining in the US is cost-competitive with Chinese hydrometallurgical recycling, operating at roughly half the cost of traditional US methods [9] - Recent market activity saw lithium carbonate prices in China increase by around 3% due to a major producer shutting down operations, highlighting the thin supply chains [44] Company Strategy and Development Direction - The company is focused on building a fully domestic closed-loop battery material supply chain in the US, emphasizing collaboration among recyclers, CAM producers, and technology innovators [10] - The design of a modular, scalable commercial arc facility is underway, capable of processing between 10,000 to 60,000 metric tons of black mass annually [8] - The company aims to secure supply and offtake partnerships to enable financing for its first commercial ARC facility [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to define the market for battery material recycling in the US, highlighting the importance of sustainability and competitiveness [10] - The management is optimistic about the potential for policy changes that could support domestic recycling efforts, particularly regarding tax incentives for preprocessors [31][33] - The company is encouraged by the recent patent allowance, which supports discussions with potential partners and enables high-margin licensing opportunities [40][41] Other Important Information - The company completed the sale of the Sierra Art facility, generating approximately $4.3 million in cash proceeds, which were used to eliminate debt [11][12] - A one-for-ten reverse stock split was executed to support compliance with Nasdaq listing requirements [12][52] Q&A Session Summary Question: Can you elaborate on the progress on the technology side? - Management highlighted the reduction of fluorine content in lithium carbonate and the flexibility in the flow sheet design to meet various partner needs [22][23] Question: Can you provide insights on the tech showcase with NAT Battery? - The event generated strong engagement and positive feedback from industry leaders, validating the company's sustainable recycling process [25][26][29] Question: How do you view potential incentives or trade policies impacting competitiveness? - Management emphasized the need for policies that encourage domestic preprocessing of black mass to support local recycling infrastructure [31][33] Question: Can you discuss the flexibility in structuring partnerships? - The company has a strong cash position allowing for strategic partnerships, focusing on collaboration rather than a lone strategy [36] Question: Can you elaborate on the patent allowance received? - The patent allowance supports the business model by enabling high-margin licensing and joint ventures with partners [40][41] Question: What are the next steps and milestones to watch for? - The focus is on securing supply and offtake partnerships to finance the first commercial ARC facility, with ongoing discussions about new feedstocks [47][48] Question: Why did Aqua Metals execute the reverse stock split? - The reverse stock split was aimed at regaining compliance with Nasdaq listing requirements, viewed as a strategic asset for the company [52][53] Question: Can you explain the cost comparison study of AquaRefining? - The study showed that AquaRefining is cost-competitive with Chinese methods and operates at about half the cost of traditional US methods, emphasizing sustainability [54][56]

Core Insights - Aqua Metals, Inc. has made significant strides in its financial and operational performance, including the elimination of long-term debt and strengthening its balance sheet through asset sales and cost-reduction initiatives [1][8]. Operational Initiatives - The company produced industry-leading low-fluorine lithium carbonate, achieving a fluorine content of less than 30 parts per million (ppm), which is considered best-in-class in the global recycling sector [5]. - Over 1 metric ton of nickel-manganese-cobalt (NMC) mixed hydroxide cake was produced for qualification sampling with potential partners [5]. - Aqua Metals is exploring undersea mining nodules and successfully tested nickel refinery residue as alternative feedstocks [5]. - The company initiated sodium sulfate regeneration trials to recycle sodium sulfate into usable chemicals for precursor cathode active material (pCAM) producers [5]. - The design of a scalable AquaRefining™ Commercial (ARC) facility capable of processing 10,000 to 60,000 metric tons per year of black mass has commenced [5]. - An internal study indicated that AquaRefining™ in the U.S. is cost-competitive with Chinese hydrometallurgical recycling, operating at approximately half the cost of traditional U.S. methods [5]. Financial Initiatives - Aqua Metals completed the sale of the Sierra ARC facility for $4.3 million and sold non-core equipment for $200,000, generating cash from non-core asset sales [5]. - The company eliminated all long-term debt, significantly improving its balance sheet [5]. - Cash and cash equivalents increased from $1.6 million at the start of the quarter to over $1.9 million by quarter-end [5]. - The cash runway was extended due to gains from asset sales and the implementation of a $10 million equity line of credit (ELOC) [5]. Milestone Announcements - The company hosted over 100 stakeholders for live demonstrations of its technology at the Innovation Center and Demonstration Plant during NAATBatt's annual meeting [5]. - Aqua Metals received an allowance for a foundational U.S. patent protecting its lithium-ion battery recycling process, enhancing its intellectual property portfolio [5]. - The leadership team was strengthened with the appointment of Eric West as CFO [6]. Strategic Engagements - Aqua Metals is actively engaging with potential strategic partners, emphasizing the importance of collaboration in building domestic battery recycling and cathode active material (CAM) production capacity in the U.S. [7][8].

[Q2 2025 Financial Results and Operational Highlights](index=1&type=section&id=Q2%202025%20Financial%20Results%20and%20Operational%20Highlights) Aqua Metals made significant operational, financial, and strategic advancements in Q2 2025, progressing AquaRefining™ technology and strengthening its market position [Second Quarter and Recent Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Highlights) Aqua Metals achieved significant operational, financial, and strategic progress in the second quarter, advancing its AquaRefining™ technology commercialization [Operational Initiatives](index=2&type=section&id=Operational%20Initiatives) Aqua Metals achieved significant operational milestones, including producing industry-leading low-fluorine lithium carbonate and over 1 metric ton of high-purity NMC mixed hydroxide cake - Produced Industry-Leading Low-Fluorine Lithium Carbonate: Reduced fluorine content to **less than 30 parts per million (ppm)**, meeting stringent specifications of cathode active material (CAM) producers, with approximately **100 kilograms produced** and sampled by strategic counterparties[7](index=7&type=chunk) - High-Purity NMC Cake Production: Produced over **1 metric ton** of nickel-manganese-cobalt (NMC) mixed hydroxide cake for qualification sampling with potential partners[7](index=7&type=chunk) - Expanded Alternative Feedstock Testing: Successfully tested undersea mining nodules and nickel refinery residue as additional potential feedstocks[7](index=7&type=chunk) - Initiated Sodium Sulfate Regeneration Trials: Began testing an innovative sodium sulfate regeneration process to support precursor cathode active material (pCAM) producers[7](index=7&type=chunk) - Advanced ARC Facility Design: Started design of a scalable AquaRefining™ Commercial (ARC) facility capable of processing **10,000 to 60,000 metric tons per year** of black mass[7](index=7&type=chunk) - Demonstrated Cost Competitiveness: An internal study showed AquaRefining™ in the U.S. is cost competitive with Chinese hydrometallurgical recycling and operates at approximately **half the cost** of traditional U.S. hydrometallurgical methods[7](index=7&type=chunk) [Financial Initiatives](index=2&type=section&id=Financial%20Initiatives) The company significantly improved its financial health by generating $4.3 million from asset sales, implementing an equity line of credit, and eliminating all long-term debt - Generated Cash from Non-Core Asset Sales: Completed the **$4.3 million** sale of the Sierra ARC facility and sold **$200,000** in non-core equipment[7](index=7&type=chunk) - Strengthened Balance Sheet: Eliminated all long-term debt[7](index=7&type=chunk) - Improved Liquidity: Cash and cash equivalents increased from **$1.6 million** at the start of the quarter to over **$1.9 million** at quarter-end[7](index=7&type=chunk) - Extended Cash Runway: Gains driven by the building sale, implementation of the **$10 million** equity line of credit (ELOC), and reduced cash burn following the sale[7](index=7&type=chunk) [Milestone Announcements](index=2&type=section&id=Milestone%20Announcements) Key milestones included showcasing AquaRefining™ technology to over 100 stakeholders, receiving a foundational U.S. patent, and completing a CFO transition - Showcased Technology to Industry Leaders: Hosted over **100 stakeholders** for live demonstrations at the Company's Innovation Center and Demonstration Plant during NAATBatt's annual meeting[7](index=7&type=chunk) - Strengthened Intellectual Property: Received allowance for a foundational U.S. patent protecting the Company's lithium-ion battery recycling process[7](index=7&type=chunk) - Enhanced Leadership Team: Completed CFO transition with the appointment of Eric West, formerly VP Finance[7](index=7&type=chunk) [Strategic Engagements](index=2&type=section&id=Strategic%20Engagements) Aqua Metals continues discussions with potential strategic partners, emphasizing collaboration to build domestic battery recycling and CAM production capacity in the U.S - Strategic Engagements: Aqua Metals continues discussions with potential strategic partners[5](index=5&type=chunk) - Collaboration Importance: The Company believes collaboration among industry participants is critical as the U.S. builds domestic battery recycling and CAM production capacity[5](index=5&type=chunk) - Market Positioning: Achievements position Aqua Metals not just to participate in the emerging U.S. market, but to help define it[8](index=8&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides essential corporate details, including investor communication channels, company profile, disclosure practices, and contact information [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Aqua Metals held a conference call on August 13, 2025, at 4:30 p.m. ET to discuss Q2 2025 results and corporate developments - Conference Call: Held on **August 13, 2025, at 4:30 p.m. ET** to discuss results and corporate developments[9](index=9&type=chunk) - Access: Live conference call accessible via webcast (https://event.webcasts.com/aqms) or investor relations website (https://ir.aquametals.com/), or by dialing **877-407-9708** (toll-free) or **201-689-8259** (international)[9](index=9&type=chunk) - Replay: Available by dialing **877-407-9708** (toll-free) or **201-689-8259** (international) using passcode **13754150**, and on the investor relations section of the Aqua Metals website[10](index=10&type=chunk) [About Aqua Metals](index=4&type=section&id=About%20Aqua%20Metals) Aqua Metals, Inc. (NASDAQ: AQMS) is a Nevada-based pioneer in sustainable metals recycling, utilizing its patented AquaRefining™ technology - Company Overview: Aqua Metals, Inc. (NASDAQ: AQMS) is a pioneer in sustainable metals recycling with its patented AquaRefining™ technology[11](index=11&type=chunk) - Focus: Commercializing sustainable, non-polluting lithium-ion battery recycling[11](index=11&type=chunk) - Mission: Closes the loop on critical minerals for clean energy technologies[11](index=11&type=chunk) - Location: Based in Reno, Nevada, with facilities in the Tahoe-Reno Industrial Center[11](index=11&type=chunk) [Aqua Metals Social Media](index=4&type=section&id=Aqua%20Metals%20Social%20Media) Aqua Metals uses its investor relations website and various social media platforms as official channels for disclosing material non-public information - Disclosure Channels: Utilizes its investor relations website (https://ir.aquametals.com) and social media accounts (Twitter, Threads, LinkedIn, YouTube) for disclosing material non-public information[12](index=12&type=chunk) - Compliance: Intends to continue using these platforms for complying with its disclosure obligations under Regulation FD[12](index=12&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor) This section contains forward-looking statements regarding Aqua Metals' plans, objectives, expectations, and intentions, cautioning readers about known and unknown risks - Forward-Looking Statements: The press release contains forward-looking statements concerning Aqua Metals, Inc.'s plans, objectives, expectations, and intentions[13](index=13&type=chunk) - Key Areas: Includes ability to commercialize profitable metal recycling, intent to develop ARC facility, ability to enter successful collaborations, and ability to maintain Nasdaq listing[13](index=13&type=chunk) - Risks and Uncertainties: Involve known and unknown risks that could cause actual results to differ materially, such as lack of commercial-scale operation, absence of definitive agreements, funding risks for ARC facility, and risks to Nasdaq listing[13](index=13&type=chunk) - Disclaimer: Aqua Metals cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to update or revise such statements, except as required by law[13](index=13&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Provides contact details for investor relations, handled by FNK IR, and media inquiries, handled directly by Aqua Metals - Investor Relations Contact: - Bob Meyers & Rob Fink (FNK IR) - Phone: **646-878-9204** - Email: aqms@fnkir.com[14](index=14&type=chunk) - Media Contact: - David Regan (Aqua Metals) - Phone: **415-336-3553** - Email: david.regan@aquametals.com[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Aqua Metals' condensed consolidated balance sheets and statements of operations for the second quarter and year-to-date periods of 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Aqua Metals reported a significant decrease in total assets and liabilities, primarily due to asset sales and debt elimination Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------- | :-------------- | :---------------- | :------------------------ | | Cash and cash equivalents | $1,933 | $4,079 | -$2,146 | | Total current assets | $2,369 | $4,644 | -$2,275 | | Property and equipment, net | $4,984 | $16,473 | -$11,489 | | Total non-current assets | $6,875 | $21,721 | -$14,846 | | **Total assets** | **$9,244** | **$26,365** | **-$17,121** | | Total current liabilities | $3,633 | $8,182 | -$4,549 | | Notes payable, current portion | $— | $3,230 | -$3,230 | | **Total liabilities** | **$4,126** | **$10,121** | **-$5,995** | | Total stockholders' equity | $5,118 | $16,244 | -$11,126 | | Accumulated deficit | $(262,855) | $(247,770) | $(15,085) | - Significant decrease in total assets from **$26,365 thousand** to **$9,244 thousand**, primarily driven by a reduction in property and equipment, net, and other non-current assets[16](index=16&type=chunk) - Total liabilities decreased substantially from **$10,121 thousand** to **$4,126 thousand**, reflecting the elimination of notes payable[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Aqua Metals reported an increased net loss of $(6,770) thousand, primarily due to impairment and loss on disposal of property, plant and equipment Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Plant operations | $776 | $2,373 | $1,501 | $4,582 | | Research and development cost | $295 | $363 | $631 | $951 | | Impairment and loss on disposal of PP&E | $3,765 | $— | $9,012 | $— | | General and administrative expense | $2,195 | $3,426 | $4,571 | $6,421 | | **Total operating expense** | **$7,031** | **$6,162** | **$15,715** | **$11,954** | | Loss from operations | $(7,031) | $(6,162) | $(15,715) | $(11,954) | | Interest expense | $(245) | $(84) | $(647) | $(190) | | Loss on extinguishment of debt | $(825) | $— | $(825) | $— | | Interest and other income | $497 | $99 | $777 | $245 | | Change in fair value of warrant liability | $836 | $— | $1,327 | $— | | Total other income, net | $263 | $15 | $632 | $55 | | Loss before income tax expense | $(6,768) | $(6,147) | $(15,083) | $(11,899) | | Income tax expense | $2 | $3 | $2 | $3 | | **Net loss** | **$(6,770)** | **$(6,150)** | **$(15,085)** | **$(11,902)** | | Weighted average shares outstanding | 910,129 | 618,965 | 860,146 | 584,619 | | **Basic and diluted net loss per share** | **$(7.44)** | **$(9.94)** | **$(17.54)** | **$(20.36)** | - Q2 2025 Net Loss: **$(6,770) thousand**, an increase from **$(6,150) thousand** in Q2 2024[18](index=18&type=chunk) - Q2 2025 Basic and Diluted Net Loss Per Share: **$(7.44)**, an improvement from **$(9.94)** in Q2 2024, despite a higher net loss, due to increased weighted average shares outstanding[18](index=18&type=chunk) - Total Operating Expense (Q2 2025): Increased to **$7,031 thousand** from **$6,162 thousand** in Q2 2024, primarily due to **$3,765 thousand** in impairment and loss on disposal of property, plant and equipment[18](index=18&type=chunk)

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section details the company's financial statements, management's analysis, market risks, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including balance sheets, operations, equity, and cash flows, with notes detailing significant financial changes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position at specific dates, detailing assets, liabilities, and stockholders' equity | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Cash and cash equivalents | $1,933 | $4,079 | | Total current assets | $2,369 | $4,644 | | Total non-current assets| $6,875 | $21,721 | | Total assets | $9,244 | $26,365 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------ | :---------------- | | Total current liabilities | $3,633 | $8,182 | | Total liabilities | $4,126 | $10,121 | | Total stockholders' equity | $5,118 | $16,244 | | Total liabilities and stockholders' equity | $9,244 | $26,365 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, detailing revenues, expenses, and net loss | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total operating expense | $7,031 | $6,162 | $15,715 | $11,954 | | Loss from operations | $(7,031) | $(6,162) | $(15,715) | $(11,954) | | Total other income, net | $263 | $15 | $632 | $55 | | Net loss | $(6,770) | $(6,150) | $(15,085) | $(11,902) | | Basic and diluted net loss per share | $(7.44) | $(9.94) | $(17.54) | $(20.36) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit | (in thousands, except share amounts) | Balances, December 31, 2024 | Balances, June 30, 2025 | | :----------------------------------- | :-------------------------- | :---------------------- | | Common Stock (Shares) | 773,084 | 1,027,701 | | Common Stock (Amount) | $1 | $1 | | Additional Paid-in Capital | $264,205 | $268,039 | | Accumulated Deficit | $(247,770) | $(262,855) | | Treasury Stock (Shares) | 2,942 | 2,648 | | Treasury Stock (Amount) | $(192) | $(67) | | Total Stockholders' Equity | $16,244 | $5,118 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flows (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(5,299) | $(8,002) | | Net cash provided by (used in) investing activities | $4,936 | $(9,762) | | Net cash provided by (used in) financing activities | $(1,783) | $9,075 | | Net decrease in cash and cash equivalents | $(2,146) | $(8,689) | | Cash and cash equivalents at end of period | $1,933 | $7,833 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [1. Organization](index=8&type=section&id=1.%20Organization) This note describes the company's business, recent stock splits, and going concern considerations - **Aqua Metals (NASDAQ: AQMS)** specializes in clean, water-based recycling technology (**AquaRefining**) for lead and lithium-ion batteries, aiming for higher purity, lower emissions, and minimal waste[18](index=18&type=chunk) - The company effected two reverse stock splits: **one-for-20 on November 5, 2024**, and **one-for-10 on August 4, 2025**, with all share information adjusted retrospectively[21](index=21&type=chunk) - For the six months ended June 30, 2025, the company reported a **net loss of $15.085 million** and **negative cash from operations of $5.299 million**, leading management to believe there is **substantial doubt about its ability to continue as a going concern**[22](index=22&type=chunk)[23](index=23&type=chunk) - To address liquidity, the company entered into an **equity-line-of-credit purchase agreement** with **Lincoln Park Capital Fund, LLC**, committing to purchase **up to $10 million of common stock**[23](index=23&type=chunk) [2. Summary of significant accounting policies](index=9&type=section&id=2.%20Summary%20of%20significant%20accounting%20policies) This note outlines the key accounting principles and policies used in preparing the condensed consolidated financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with interim reporting requirements of **Form 10-Q**, with **no material changes in significant accounting policies** during the three and six months ended June 30, 2025[25](index=25&type=chunk)[26](index=26&type=chunk) - The company's chief operating decision maker views its operations and manages its business as **one operating segment**[40](index=40&type=chunk) - The company is evaluating the impact of recently issued accounting pronouncements, **ASU 2024-03 (Expense Disaggregation Disclosures)** and **ASU No. 2023-09 (Improvements to Income Tax Disclosures)**, effective for annual periods beginning January 1, 2027, and after December 15, 2024, respectively[42](index=42&type=chunk)[43](index=43&type=chunk) [3. Revenue recognition](index=12&type=section&id=3.%20Revenue%20recognition) This note clarifies the company's revenue recognition policy, noting no commercial production or revenue during the reported periods - The Company was **not in commercial production** and **did not generate revenue** during the three and six months ended June 30, 2025 and 2024[44](index=44&type=chunk) [4. Note receivable](index=12&type=section&id=4.%20Note%20receivable) This note details the collection of the outstanding note receivable from LINICO during the first quarter of 2025 - The **$100 thousand balance** of the note receivable from LINICO as of December 31, 2024, was **fully collected** during the first quarter of 2025[45](index=45&type=chunk) [5. Inventory](index=12&type=section&id=5.%20Inventory) This note provides a breakdown of the company's inventory, primarily consisting of raw materials | Inventory (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Raw materials | $245 | $251 | | Total inventory | $245 | $251 | [6. Property and equipment, net](index=14&type=section&id=6.%20Property%20and%20equipment,%20net) This note details the company's property and equipment, including impairment charges related to asset sales | Asset Class (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------- | :------------ | :---------------- | | Operational equipment | $3,456 | $3,551 | | Lab equipment | $1,112 | $1,128 | | Computer equipment | $107 | $107 | | Office furniture and equipment | $87 | $87 | | Leasehold improvements | $80 | $80 | | Land | — | $1,141 | | Building | — | $3,131 | | Equipment under construction | $2,757 | $9,726 | | Less: accumulated depreciation | $(2,615) | $(2,478) | | Total property and equipment, net | $4,984 | $16,473 | - The Company recognized an **impairment charge of $5.247 million** in Q1 2025 to write down assets held for sale (**TRIC facility**) to their estimated **fair value of $4.1 million**[51](index=51&type=chunk) - An additional **impairment and loss on disposal of $3.765 million** was recognized for the three months ended June 30, 2025, in connection with the **sale of the TRIC facility** and other equipment[52](index=52&type=chunk) [7. Other assets](index=14&type=section&id=7.%20Other%20assets) This note provides a breakdown of other non-current assets, including equipment deposits and right-of-use assets | Other Assets (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Equipment deposits | $1,340 | $4,540 | | Nevada facilities Right of Use Assets | $421 | $542 | | Other assets | $20 | $20 | | Total other assets, non-current | $1,781 | $5,102 | [8. Accrued expenses](index=15&type=section&id=8.%20Accrued%20expenses) This note details the company's accrued expenses, primarily related to payroll, professional services, and property and equipment | Accrued Expenses (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Property and equipment related | $560 | $560 | | Payroll related | $1,006 | $1,576 | | Professional services | $806 | $884 | | Other | $90 | $110 | | Total accrued expenses | $2,462 | $3,130 | [9. Leases](index=16&type=section&id=9.%20Leases) This note describes the company's finance and operating leases, including remeasurements due to extensions - The Company maintains **one finance lease** for equipment and **two operating leases** for real estate (headquarters and Innovation Center)[57](index=57&type=chunk) - Operating lease extensions in March and June 2024 for the headquarters and Innovation Center, respectively, resulted in **remeasurement of Right-of-Use (ROU) assets and operating lease liabilities** using **incremental borrowing rates of 9.61% and 9.52%**[58](index=58&type=chunk)[59](index=59&type=chunk) | Future Maturities of Lease Liabilities (in thousands) | Operating Leases | Finance Leases | | :------------------------------------ | :--------------- | :------------- | | Due in 12-month period ended June 30, 2025 | $255 | $47 | | Due in 12-month period ended June 30, 2026 | $147 | $47 | | Due in 12-month period ended June 30, 2027 | $74 | $47 | | Due in 12-month period ended June 30, 2028 | — | $36 | | Less imputed interest | $(46) | $(14) | | Total lease liabilities | $430 | $163 | [10. Notes payable](index=18&type=section&id=10.%20Notes%20payable) This note details the repayment of various notes payable and the recognition of a non-cash loss on debt extinguishment - The Company paid off the **$3 million outstanding principal balance** of the loan with **Summit Investment Services, LLC**, along with **$49 thousand in guaranteed minimum interest**, in June 2025[63](index=63&type=chunk) - The outstanding balance of **$1 million on secured promissory notes** from accredited investors, plus **$300 thousand in guaranteed interest**, was repaid in full on May 5, 2025[65](index=65&type=chunk) - A **non-cash loss on extinguishment of debt of $825 thousand** was recorded for the three months ended June 30, 2025, related to the write-off of unamortized financing costs and the remaining unaccrued portion of guaranteed interest[65](index=65&type=chunk) | Notes Payable, Current Portion (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------------------- | :------------ | :---------------- | | Summit Investment Services, LLC | $— | $3,000 | | Notes related-party | $— | $856 | | Notes | $— | $654 | | Less issuance costs | $— | $(974) | [11. Warrant liability](index=20&type=section&id=11.%20Warrant%20liability) This note explains the re-measurement of warrant liability using the Monte-Carlo option pricing model - The warrant liability, classified as **Level 3** in the fair value hierarchy, is re-measured at each balance sheet date using the **Monte-Carlo option pricing model**[69](index=69&type=chunk) | Warrant Liability (in thousands) | Amount | | :------------------------------- | :----- | | Fair value as of December 31, 2024 | $1,493 | | Change in fair value of warrant liabilities | $(1,327) | | Fair value as of June 30, 2025 | $166 | [12. Stockholders' equity](index=21&type=section&id=12.%20Stockholders'%20equity) This note details changes in stockholders' equity, including equity line of credit agreements, share issuances, and stock-based compensation - On May 15, 2025, the Company entered into an **Equity Line of Credit (ELOC) agreement** with **Lincoln Park Capital Fund, LLC**, granting the right to sell **up to $10 million of common stock** over 24 months[72](index=72&type=chunk) - During the six months ended June 30, 2025, the Company issued **211,474 shares** of common stock through **at-the-market (ATM) sales** for **net proceeds of $2.735 million**, and **12,000 shares** via the **ELOC** for **net proceeds of $69 thousand**[74](index=74&type=chunk)[75](index=75&type=chunk) | Stock-based Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Plant operations | $5 | $99 | $13 | $185 | | Research and development cost | $30 | $16 | $69 | $36 | | General and administrative expense | $310 | $636 | $965 | $1,304 | | Total | $345 | $751 | $1,047 | $1,525 | - On July 22, 2025, an additional **260,000 shares** of common stock were authorized and added to the **2019 Stock Incentive Plan**, bringing the **total authorized shares to 400,000**[83](index=83&type=chunk) [13. Commitments and contingencies](index=24&type=section&id=13.%20Commitments%20and%20contingencies) This note addresses legal proceedings, including a dismissed complaint and potential liability for attorney's fees and costs - The Company's complaint against Johnson Controls Fire Protections, LP, related to a 2019 fire at its former TRIC facility, was **dismissed on March 25, 2025**[93](index=93&type=chunk) - Defendant is seeking **approximately $3.5 million in attorney's fees and costs**; an adverse award could **materially affect the Company's financial position**, requiring additional capital or asset liquidation[93](index=93&type=chunk) [14. Segment reporting](index=24&type=section&id=14.%20Segment%20reporting) This note confirms that Aqua Metals operates as a single operating segment focused on sustainable metals recycling - Aqua Metals operates in **one operating segment: sustainable metals recycling**, with the CEO evaluating financial performance at a consolidated, entity-wide level[94](index=94&type=chunk) [15. Employee Retention Credit](index=24&type=section&id=15.%20Employee%20Retention%20Credit) This note reports the recognition of government grant income related to the employee retention credit - The Company recognized **government grant income of $420 thousand** and **$643 thousand** for the three and six months ended June 30, 2025, respectively, related to the **employee retention credit**, along with associated interest income[96](index=96&type=chunk) [16. Subsequent events](index=24&type=section&id=16.%20Subsequent%20events) This note discloses a reverse stock split implemented after the reporting period - On August 4, 2025, the Company implemented a **one-for-ten (1-for-10) reverse stock split** of its common stock[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, highlighting Li AquaRefining, TRIC facility sale, and lithium carbonate optimization, noting increased net loss, reduced expenses, and critical liquidity needs [General](index=26&type=section&id=General) This section provides an overview of the company's core technology, strategic asset sales, and future operational vision - Aqua Metals utilizes its patented **AquaRefining technology** for clean, water-based recycling of both **lead and lithium-ion batteries**, aiming for higher purity and lower emissions[103](index=103&type=chunk) - The company sold its **Sierra ARC property** in Q2 2025, which **retired all associated debt**, **added cash** to the balance sheet, and **reduced holding costs**, prompting evaluation of more cost-efficient locations for future development[110](index=110&type=chunk) - An expanded vision for **Li AquaRefining** aims to **more than double lithium carbonate output** by deferring nickel and cobalt plating, **reducing capital expenditures**, simplifying the product set, and **improving operating margins**[111](index=111&type=chunk) - During the six months ended June 30, 2025, the company issued **211,474 shares** of common stock through an **at-the-market (ATM) sales agreement**, generating **net proceeds of $2.735 million**[112](index=112&type=chunk) [Plan of Operations](index=28&type=section&id=Plan%20of%20Operations) This section outlines the company's strategy to build, operate, and license Li AquaRefining capacity, contingent on securing additional financing - The business strategy focuses on **building, operating, and licensing Li AquaRefining recycling capacity** to meet the growing demand for critical metals in lithium-ion batteries[115](index=115&type=chunk) - The company aims to demonstrate that Li AquaRefining can produce the **highest quality and yields of recovered minerals** from lithium-ion batteries with **lower waste streams and costs**[116](index=116&type=chunk) - The construction of the first commercial facility is **contingent on securing additional financing**, with active engagement with potential supply, off-take, and funding partners[116](index=116&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, detailing operating expenses, other income, and net loss - The Company **did not engage in commercial operations or earn any revenue** during the three and six months ended June 30, 2025 and 2024[118](index=118&type=chunk) | Operating Cost and Expense (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Favorable/Unfavorable) | % Change | | :---------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :------- | | Plant operations | $1,501 | $4,582 | $3,081 | (67.2)% | | Research and development cost | $631 | $951 | $320 | (33.6)% | | Impairment and loss on disposal of property, plant and equipment | $9,012 | — | $(9,012) | 0.0% | | General and administrative expense | $4,571 | $6,421 | $1,850 | (28.8)% | | Total operating expense | $15,715 | $11,954 | $(3,761) | 31.5% | - Plant operations, research and development, and general and administrative expenses **decreased primarily due to workforce reductions and restructuring efforts**[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) | Other Income and (Expense) (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Favorable/Unfavorable) | % Change | | :---------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :------- | | Interest expense | $(647) | $(190) | $(457) | 240.5% | | Loss on extinguishment of debt | $(825) | — | $(825) | 0.0% | | Interest and other income | $777 | $245 | $532 | 217.1% | | Change in fair value of warrant liability | $1,327 | $0 | $1,327 | 0.0% | | Total other income, net | $632 | $55 | $577 | 1049.1% | - The increase in interest and other income was primarily driven by the approval of a **payroll tax employee retention credit**[127](index=127&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, working capital, and ability to fund operations, highlighting going concern doubts - As of June 30, 2025, the Company had **cash and cash equivalents of $1.933 million**, **current liabilities of $3.633 million**, and a **working capital deficit of $1.264 million**[129](index=129&type=chunk) - Management believes the Company **lacks sufficient capital resources** to sustain operations for the next twelve months, indicating **substantial doubt about its ability to continue as a going concern**[130](index=130&type=chunk) | Cash Flows Summary (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(5,299) | $(8,002) | | Net cash provided by (used in) investing activities | $4,936 | $(9,762) | | Net cash provided by (used in) financing activities | $(1,783) | $9,075 | - **Net cash provided by investing activities of $4.936 million** for the six months ended June 30, 2025, was primarily from the **sale of the building and equipment ($4.347 million)** and **equipment deposits refund ($1.141 million)**[133](index=133&type=chunk) - **Net cash used in financing activities of $1.783 million** for the six months ended June 30, 2025, mainly due to **$4.5 million in principal payments on notes payable**, partially offset by **proceeds from ATM and ELOC share sales**[134](index=134&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to critical accounting estimates since the 2024 Form 10-K filing - There have been **no material changes to critical accounting estimates** from what was reported in the 2024 Form 10-K[136](index=136&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the company - This item is **not applicable** to the Company[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, and reported no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Controls and Procedures](index=33&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms management's conclusion that the company's disclosure controls and procedures were effective - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were **effective as of June 30, 2025**[138](index=138&type=chunk) [Changes in Internal Control Over Financial Reporting](index=33&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports no material changes in the company's internal control over financial reporting during the quarter - There were **no material changes** in the Company's internal control over financial reporting during the three-month period ended June 30, 2025[139](index=139&type=chunk) [PART II - OTHER INFORMATION](index=34&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides updates on risk factors, other material information, and a list of filed exhibits [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing the critical need for additional financing due to insufficient capital, substantial doubt about going concern, and the material adverse effect of a potential **$3.5 million** litigation award - The Company **requires additional financing** to execute its business plan and fund operations, which may not be available on reasonable terms or at all, posing a **risk to continued operations**[142](index=142&type=chunk) - There is **substantial doubt about the Company's ability to continue as a going concern** within one year[143](index=143&type=chunk) - The Company is subject to a claim for **approximately $3.5 million in attorney's fees and costs** related to a dismissed lawsuit, which, if awarded, could **materially adversely affect its financial condition** and require additional capital or asset liquidation[144](index=144&type=chunk) [Item 5 Other Information](index=34&type=section&id=Item%205%20Other%20Information) This section reports no Rule 10b5-1 trading arrangement changes by directors or officers and confirms the sale of the Sierra Arc Property for $4.3 million, which closed on June 12, 2025 - **No director or officer adopted or terminated** a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter ended June 30, 2025[145](index=145&type=chunk) - The Company's wholly-owned subsidiary sold the **Sierra Arc Property** for a **purchase price of $4.3 million**, with the transaction closing on June 12, 2025[146](index=146&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various corporate governance documents, agreements related to the Equity Line of Credit, and Sarbanes-Oxley certifications - The exhibits include amendments to the **Certificate of Incorporation**, the **Purchase Agreement and Registration Rights Agreement** with **Lincoln Park Capital Fund, LLC**, and certifications pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**[148](index=148&type=chunk)