Aqua Metals, Inc. (NASDAQ:AQMS) Q4 2022 Results Earnings Conference Call March 9, 2023 4:30 PM ET Company Participants Bob Meyers - Investor Relations, FNK IR Steve Cotton - Chief Executive Officer and President Judd Merrill - Chief Financial Officer Ben Taecker - Chief Engineering and Operating Officer Dave McMurtry - Chief Business Officer Conference Call Participants Sameer Joshi - H.C. Wainwright & Co., LLC Colin Rusch - Oppenheimer & Co. Inc. Operator Greetings, and welcome to the Aqua Metals Fourth Qu ...

Technology and Innovation - Aqua Metals has developed a proprietary AquaRefining technology that produces ultra-high purity metals, achieving lead purity of 99.996+%[25] - Aqua Metals has successfully recovered copper, lithium hydroxide, nickel, and cobalt from lithium-ion battery black mass at its Innovation Center[19] - The company has developed the AquaRefining process, a cleaner alternative to smelting, utilizing proprietary non-toxic solvents and electro-chemical methods to recover high purity metals from used batteries[39] - The lithium battery AquaRefining process has demonstrated the ability to generate cobalt, lithium hydroxide, copper, nickel, and manganese dioxide, achieving higher yields and purity compared to traditional smelting[40] - The company aims to recover key minerals from lithium-ion batteries, including lithium hydroxide, copper, nickel, and cobalt, with a focus on achieving higher purity and lower emissions[190] Production and Capacity - The company produced over 35,000 AquaRefined lead ingots in 2019, operating continuously at commercial production levels[15] - Aqua Metals aims to process up to 10,000 tonnes of lithium-ion battery material annually at its new recycling campus, expected to commence operations in Q1 2024[21] - The company has installed and begun operating its first lithium AquaRefining pilot plant, with plans for commercial demonstration operations throughout 2023[47] - The company aims to scale its lithium AquaRefining capacity to approximately 10,000 tonnes per year by 2024, which could generate over $200 million in revenue at current metal prices[47] Market and Demand - The global lithium-ion battery market was valued at approximately USD $9 billion in 2020, with a projected CAGR of 19.0% from 2020 to 2028[35] - The demand for lead acid batteries is expected to nearly double to $84 billion by 2025, driven by various applications including renewable energy storage[33] - More than 15 million tons of lithium-ion batteries are expected to retire between now and 2030, highlighting the need for effective recycling solutions[36] - Current lithium-ion battery recycling rates are only 5-7%, necessitating advancements to approach near 100% recycling to mitigate environmental impacts[38] - The total addressable market for lithium-ion battery recycling is estimated to reach approximately $9 billion by 2025, with expectations to exceed lead battery recycling by the end of the decade[45] Financial Performance - From inception through December 31, 2022, the company generated a total of $11.7 million in revenue, primarily from lead compounds and plastics[70] - The company reported product sales of $4 thousand for the year ended December 31, 2022, compared to $0.2 million in 2021, indicating a significant decrease in revenue[194] - The net loss for the year ended December 31, 2022, was $15.4 million, an improvement from a net loss of $18.2 million in 2021, representing a reduction of about 15.1%[1] - The company generated a net cash used in operating activities of $10.1 million in 2022, compared to $7.1 million in 2021, indicating increased cash outflow[186] - The accumulated deficit grew to $(199,277,000) in 2022 from $(183,846,000) in 2021, indicating a worsening financial position[177] Research and Development - The company has shifted its business model to focus exclusively on licensing its AquaRefining technology and has commenced research and development for lithium-ion battery recycling[70] - Research and development costs increased to $1.8 million in 2022 from $933 thousand in 2021, showing a growth of approximately 94.5%[1] - Research and development expenditures are expensed as incurred, indicating a focus on innovation and development[214] Intellectual Property - Aqua Metals has secured 9 US patents and 91 international patents, with an additional 50 patent applications pending across various jurisdictions[54] - The company has secured 9 US patents and 91 international patents related to its AquaRefining process, with additional applications pending in 21 jurisdictions[85] - The company may face challenges in enforcing its intellectual property rights internationally, which could increase costs and affect competitive positioning[89] - The company has not experienced any allegations of intellectual property infringement but acknowledges the potential for costly disputes in the applied science industry[87] Operational Challenges - The company has faced risks associated with its novel AquaRefining process, which has not yet been proven on a commercial scale[79] - The company anticipates beginning to realize revenues from lithium-ion battery recycling within the coming year, although specific timelines for meaningful operations remain uncertain[70] - The company faces potential labor issues that could negatively impact operations and results, particularly during critical operational periods[84] - Global economic conditions may adversely affect the demand for lead-acid batteries (LABs) and lithium-ion batteries (LIBs), impacting the company's growth prospects[88] - The company has faced regulatory scrutiny, including a citation from Nevada OSHA regarding compliance with lead standards, which has been settled[92] - The company is subject to risks associated with handling hazardous materials, which could lead to significant liabilities and operational restrictions[95] Financing and Capital Structure - Aqua Metals has financed the acquisition of a recycling campus with a $3 million loan at a fixed annual interest rate of 9.50%[21] - The company plans to require additional capital to fund ongoing costs and advance its lithium-ion battery recycling activities over the next twelve months[194] - The company entered into a loan agreement for $6 million with an interest rate of 8.50%, with principal due on September 29, 2024[251] - The company issued 6,742,069 shares of common stock in 2022, generating net proceeds of $6.5 million[257] - The company has authorized capital stock of 200 million shares of common stock, with no preemptive or conversion rights[253] Assets and Liabilities - As of December 31, 2022, the total assets of Aqua Metals, Inc. were $33,502,000, a slight increase from $33,269,000 in 2021[177] - The company's cash and cash equivalents decreased to $7,082,000 in 2022 from $8,137,000 in 2021, reflecting a decline of approximately 13%[177] - Total current liabilities increased to $12,311,000 in 2022 from $4,078,000 in 2021, marking an increase of approximately 201%[177] - The total stockholders' equity decreased to $20,916,000 in 2022 from $27,533,000 in 2021, a decline of approximately 24%[177] - The company recognized a lease receivable of $17.0 million at the inception of the Industrial Lease Agreement with LINICO Corporation[228] Stockholder Matters - The company has provisions in its bylaws that may limit stockholders' ability to engage in business combinations, potentially affecting stockholder value[107] - The company’s bylaws designate the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation, which may impact stockholder dispute resolution[108]

Aqua Metals, Inc. (NASDAQ:AQMS) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Bob Meyers - FNK IR Steve Cotton - CEO Judd Merrill - CFO Conference Call Participants Sameer Joshi - HC Wainwright Colin Rusch - Oppenheimer Steve Krueger - Foresight Investing Operator Hello, and welcome to the Aqua Metals Third Quarter Financial Results Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator I ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Aqua Metals, Inc.'s condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, cash flows, and accompanying notes, providing a comprehensive overview of its financial position and performance for the periods ended September 30, 2022, and December 31, 2021 - The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and SEC rules, and do not include all information and footnotes required for complete financial statements[28](index=28&type=chunk) - There have been no material changes in the Company's significant accounting policies during the three and nine months ended September 30, 2022[27](index=27&type=chunk) - The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of results that may be expected for the full year ending December 31, 2022[29](index=29&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of September 30, 2022, and December 31, 2021 | Metric | September 30, 2022 ($ thousand) | December 31, 2021 ($ thousand) | | :-------------------------- | :---------------------- | :--------------------- | | Total Assets | 34,961 | 33,269 | | Total Liabilities | 11,518 | 5,736 | | Total Stockholders' Equity | 23,443 | 27,533 | - Current lease receivable significantly increased to **$15,811 thousand** as of September 30, 2022, from **$920 thousand** at December 31, 2021[10](index=10&type=chunk) - Notes payable, current portion, appeared as **$5,886 thousand** as of September 30, 2022, with no balance at December 31, 2021[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net loss for the three and nine months ended September 30, 2022 and 2021 | Metric | Three Months Ended Sept 30, 2022 ($ thousand) | Three Months Ended Sept 30, 2021 ($ thousand) | Nine Months Ended Sept 30, 2022 ($ thousand) | Nine Months Ended Sept 30, 2021 ($ thousand) | | :----------------------------------- | :------------------------------------ | :------------------------------------ | :----------------------------------- | :----------------------------------- | | Product sales | — | — | 4 | — | | Total operating expense | 3,934 | 4,624 | 12,202 | 13,264 | | Loss from operations | (3,934) | (4,624) | (12,198) | (13,264) | | Total other income (expense), net | 49 | 3,238 | 739 | (222) | | Net loss | (3,885) | (1,386) | (11,461) | (13,488) | | Basic and diluted net loss per share | (0.05) | (0.02) | (0.15) | (0.20) | - Net loss increased significantly for the three months ended September 30, 2022, to **$(3,885) thousand** from **$(1,386) thousand** in the prior year, while decreasing for the nine months ended September 30, 2022, to **$(11,461) thousand** from **$(13,488) thousand**[12](index=12&type=chunk) - Research and development costs increased by **79.5%** for the three months and **111.5%** for the nine months ended September 30, 2022, compared to the prior year, reflecting increased efforts in AquaRefining technology and Li battery recycling[12](index=12&type=chunk)[95](index=95&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in stockholders' equity, including common shares, additional paid-in capital, and accumulated deficit | Metric | September 30, 2022 ($ thousand) | December 31, 2021 ($ thousand) | | :-------------------------- | :---------------------- | :--------------------- | | Common Shares Outstanding | 78,065,455 | 70,416,552 | | Common Stock Amount | 78 | 70 | | Additional Paid-in Capital | 218,672 | 211,309 | | Accumulated Deficit | (195,307) | (183,846) | | Total Stockholders' Equity | 23,443 | 27,533 | - Total stockholders' equity decreased from **$27,533 thousand** at December 31, 2021, to **$23,443 thousand** at September 30, 2022, primarily due to the accumulated deficit[16](index=16&type=chunk) - Additional paid-in capital increased by **$7,363 thousand**, reflecting stock-based compensation and common stock issued for ATM share sales[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities for the nine months ended September 30, 2022 and 2021 | Cash Flow Activity | Nine Months Ended Sept 30, 2022 ($ thousand) | Nine Months Ended Sept 30, 2021 ($ thousand) | | :---------------------------------- | :----------------------------------- | :----------------------------------- | | Net cash used in operating activities | (9,308) | (3,753) | | Net cash used in investing activities | (1,680) | (1,506) | | Net cash provided by financing activities | 12,144 | 10,426 | | Net increase (decrease) in cash | 1,156 | 5,167 | | Cash and cash equivalents at end of period | 9,293 | 11,700 | - Net cash used in operating activities increased to **$9.3 million** for the nine months ended September 30, 2022, from **$3.8 million** in the prior year, primarily due to net loss and changes in working capital[103](index=103&type=chunk) - Net cash provided by financing activities increased to **$12.1 million**, driven by **$5.6 million** from ATM share sales and **$5.9 million** from a new loan[105](index=105&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information supporting the condensed consolidated financial statements - Aqua Metals is engaged in applying its AquaRefining technology for clean, water-based recycling solutions for both lead and lithium-ion batteries, offering technology licensing for lead and expecting to provide recycling services for Li batteries[22](index=22&type=chunk)[83](index=83&type=chunk) - The company made a strategic investment in LINICO Corporation in February 2021, acquiring approximately **12% ownership**, to explore applying AquaRefining intellectual property to lithium-ion battery recycling[25](index=25&type=chunk)[53](index=53&type=chunk) - An Innovation Center was established in August 2021, demonstrating the ability to recover copper, lithium hydroxide, nickel, and cobalt from lithium-ion battery black mass in the first half of 2022, with a pilot plant expected to be fully operational in Q4 2022[26](index=26&type=chunk)[87](index=87&type=chunk) - The TRIC facility is leased to LINICO Corporation, with an option for LINICO to purchase the land and facilities for **$15.25 million** by March 31, 2023. LINICO has made nonrefundable deposits totaling **$3.25 million**[42](index=42&type=chunk)[76](index=76&type=chunk) - On September 30, 2022, Aqua Metals Reno, Inc. secured a **$6 million** loan with an **8.50% annual interest rate**, collateralized by the TRIC facility, with principal due September 29, 2024[66](index=66&type=chunk) - During the nine months ended September 30, 2022, the company issued **5,406,914 shares** of common stock through an At The Market (ATM) offering, generating net proceeds of **$5.6 million**[68](index=68&type=chunk)[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses Aqua Metals' financial condition and results of operations, emphasizing its strategic shift towards technology licensing and lithium-ion battery recycling. It provides an analysis of key financial performance indicators, liquidity, and capital resources, alongside forward-looking statements and associated risks - Aqua Metals' business strategy focuses on licensing its lead-acid battery recycling technologies globally and developing Li AquaRefining methodologies to meet the growing demand for critical metals from lithium-ion batteries[88](index=88&type=chunk)[90](index=90&type=chunk) - The company is demonstrating that Li AquaRefining can produce high-quality, high-yield recovered minerals (lithium hydroxide, copper, nickel, cobalt) with lower waste and costs, aiming for a pilot plant to be fully operational by year-end 2022 and scaling to **80 tonnes per month** by year-end 2023[89](index=89&type=chunk) Operating Expenses (Nine Months Ended September 30) | Metric | 2022 ($ thousand) | 2021 ($ thousand) | Change ($ thousand) | % Change | | :--------------------------- | :-------- | :-------- | :---------- | :------- | | Cost of product sales | 3,026 | 5,417 | (2,391) | (44.1)% | | Research and development cost| 1,561 | 738 | 823 | 111.5% | | General and administrative | 7,615 | 7,109 | 506 | 7.1% | | Total operating expense | 12,202 | 13,264 | 1,062 | (8.0)% | Other Income and Expense (Nine Months Ended September 30) | Metric | 2022 ($ thousand) | 2021 ($ thousand) | Change ($ thousand) | % Change | | :------------------------------------ | :-------- | :-------- | :---------- | :------- | | Insurance proceeds net of related expenses | — | 4,792 | (4,792) | (100.0)% | | PPP loan forgiveness | — | 332 | (332) | (100.0)% | | Gain (loss) on disposal of P&E | 595 | (5,665) | 6,260 | (110.5)% | | Interest expense | (22) | (15) | (7) | 46.7% | | Interest and other income | 166 | 334 | (168) | (50.3)% | | Total other income (expense), net | 739 | (222) | 961 | (432.9)% | - As of September 30, 2022, the company had **$9.3 million** in cash and **$15.5 million** in working capital, but anticipates needing additional capital within the next 12 months, potentially through asset sales, equity, or debt financing[101](index=101&type=chunk)[106](index=106&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no material quantitative or qualitative disclosures about market risk applicable to the company - This item is not applicable[108](index=108&type=chunk) [Item 4. Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures and any changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[108](index=108&type=chunk) - There were no material changes in internal control over financial reporting during the three months ended September 30, 2022[109](index=109&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) This section indicates that there are no legal proceedings to report for the company - None[111](index=111&type=chunk) [Item 1A. Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks associated with investing in Aqua Metals, covering operational challenges, technological uncertainties, financial needs, market volatility, and regulatory compliance, emphasizing the high degree of risk due to the company's limited operating history and novel business model - A fire at the TRIC facility in November 2019 caused significant damage, leading to a revised business model focused on licensing AquaRefining technology and a lease-to-buy agreement for the facility, rather than a costly rebuild[113](index=113&type=chunk)[114](index=114&type=chunk) - The company's efforts in lithium-ion battery recycling are in early R&D stages, with no assurance of successful commercialization or recovery of high-value metals on a commercial scale[115](index=115&type=chunk)[126](index=126&type=chunk) - Aqua Metals' business strategy relies on licensing arrangements and strategic alliances, but as of the report date, few such agreements are in place, and their successful integration or benefits are not assured[116](index=116&type=chunk)[117](index=117&type=chunk) - The company has a limited operating history and its AquaRefining process is novel and unproven at a large commercial scale for both lead and Li-ion batteries, making it difficult for investors to evaluate the business[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk) - Additional financing may be required within the next 12 months to fund operations and the business plan, with no guarantee of availability on reasonable terms, potentially leading to dilution or cessation of operations[122](index=122&type=chunk) - The market price of common stock is volatile, and the company received a Nasdaq delisting notice for failing to meet the **$1.00** minimum bid price requirement, with no assurance of regaining compliance[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) - Intellectual property rights may not adequately protect the business, and processes may infringe on others' rights, leading to costly disputes or disruptions[129](index=129&type=chunk)[130](index=130&type=chunk)[133](index=133&type=chunk) - Operations involve hazardous materials and are subject to stringent environmental, health, and safety laws, with potential for significant penalties, liabilities, and opposition from local groups if non-compliance or unsafe operations occur[137](index=137&type=chunk)[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds to disclose during the reporting period - None[159](index=159&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities to report for the company - None[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures applicable to the company - None[159](index=159&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information required to be disclosed that has not been previously reported - None[159](index=159&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents, certifications, and XBRL-related files - Includes certifications pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002[160](index=160&type=chunk) - Includes Inline XBRL Instance Document and Taxonomy Extension Documents[160](index=160&type=chunk)

Aqua Metals, Inc. (NASDAQ:AQMS) Q2 2022 Earnings Conference Call July 21, 2022 4:30 PM ET Corporate Participants Glen Akselrod - President, Bristol Capital Steve Cotton - President and Chief Executive Officer Judd Merrill - Chief Financial Officer Ben Taecker - Chief Engineering and Operating Officer Conference Call Participants Colin Rusch - Oppenheimer Amit Dayal - H.C. Wainwright Shawn Severson - Water Tower Research Operator Good afternoon and welcome to the Aqua Metals Second Quarter Financial Results ...

Aqua Metals, Inc. (NASDAQ:AQMS) Q1 2022 Earnings Conference Call April 28, 2022 4:30 PM ET Company Representatives Steve Cotton - President, Chief Executive Officer Judd Merrill - Chief Financial Officer Ben Taecker - Chief Engineering and Operating Officer Glen Akselrod - Investor Relations Conference Call Participants Shawn Severson - Water Tower Research Colin Rusch - Oppenheimer Amit Dayal - H.C. Wainwright Operator Greetings! Welcome to Aqua Metals Q1 Investor Call. At this time all participants are in ...

Aqua Metals, Inc. (NASDAQ:AQMS) Q4 2021 Earnings Conference Call February 24, 2022 4:30 PM ET Company Participants Glen Akselrod - IR Steve Cotton - President & CEO Judd Merrill - CFO Ben Taecker - Chief Engineering and Operating Officer Conference Call Participants Colin Rusch - Oppenheimer Sameer Joshi - H.C. Wainwright Shawn Severson - Water Tower Research Operator Greetings! Welcome to Aqua Metals Full Year 2021 Results Conference Call. At this time, all participants are in a listen-only mode. A questio ...