Core Viewpoint - Aqua Metals, Inc. is set to report its financial results for Q2 2025 on August 13, 2025, and will provide a business update during a conference call that day [1]. Group 1: Financial Reporting - The company will announce its financial results for the second quarter ended June 30, 2025 [1]. - A conference call is scheduled for August 13, 2025, at 4:30 p.m. ET to discuss these results [1]. Group 2: Accessing Information - The live conference call can be accessed via the company's investor relations website or by dialing specific toll-free and international numbers [2]. - A replay of the conference call will be available through designated phone numbers and on the investor relations section of the Aqua Metals website [3]. Group 3: Company Overview - Aqua Metals is focused on sustainable lithium-ion battery recycling using its patented AquaRefining™ technology [4]. - The company aims to commercialize non-polluting recycling processes that support clean energy technologies [4]. - Aqua Metals is headquartered in Reno, Nevada, with facilities in the Tahoe-Reno Industrial Center [4]. Group 4: Communication Channels - The company utilizes its investor relations website and various social media platforms for disclosing material non-public information [5].

Core Insights - Aqua Metals, Inc. is showcasing its innovative lithium battery recycling technology at NAATBatt's Eighth Annual Workshop, emphasizing its scalable, cost-effective, and safer alternative to traditional hydro recycling methods [1][3][6] Company Overview - Aqua Metals operates an Innovation Center in the Tahoe-Reno Industrial Center, producing battery-grade lithium carbonate, nickel, and cobalt products at a commercial pilot scale [2] - The company claims its recycled lithium carbonate output is among the highest in North America from a true closed-loop battery recycling process [2] Technology and Benefits - The proprietary AquaRefining™ technology offers a novel solution that enhances worker safety, economic efficiency, and environmental performance compared to traditional hydro-based recycling processes [3][4] - This clean recycling technology supports the reshoring of critical minerals processing, contributing to American job growth and economic resilience [4] Event Details - The exclusive tour of Aqua Metals' facility will take place on July 31, 2025, providing workshop participants with insights into advanced lithium battery recycling operations [1][6] - The NAATBatt Annual Workshop will gather industry leaders to discuss innovations in lithium battery reuse, recycling, and market development [6] Product Highlights - The facility has produced various products, including battery-grade lithium carbonate, cobalt metal, nickel metal, and mixed hydroxide precipitate (MHP) [9] - The pilot plant has accumulated over 4,000 hours of operational runtime, showcasing significant reductions in waste streams and improved economic efficiencies [9]

Company Overview - Aqua Metals, Inc. is a pioneer in sustainable lithium-ion battery recycling, utilizing its patented AquaRefining™ technology [2] - The company is focused on commercializing non-polluting recycling processes that close the loop on critical minerals for clean energy technologies [2] - Aqua Metals is headquartered in Reno, Nevada, with facilities located in the Tahoe-Reno Industrial Center [2] Upcoming Events - Aqua Metals will hold its 2025 Annual Meeting of Stockholders on July 22, 2025, at 7 a.m. PT [1] - Stockholders of record as of June 17, 2025, are entitled to attend and participate in the meeting [1] - Voting instructions are available at https://www.proxyvote.com [1] Communication Channels - Aqua Metals utilizes its investor relations website and social media platforms such as X, Threads, LinkedIn, and YouTube for disclosing material non-public information [3] - The company aims to comply with its disclosure obligations under Regulation FD through these channels [3]

Core Insights - Aqua Metals, Inc. has received a Notice of Allowance for a patent that enhances its AquaRefining™ intellectual property portfolio, crucial for its global expansion strategy [1][4][5] Patent Details - The patent application, filed in January 2022, is based on extensive R&D and covers key innovations in Aqua Metals' lithium battery recycling technology [2][3] - The technology allows for efficient recovery of battery-grade lithium carbonate, nickel, and cobalt, utilizing a novel hydrometallurgical process [2][3] Environmental and Economic Benefits - AquaRefining™ technology offers estimated cost savings of approximately $1,100 per metric ton of black mass input compared to traditional methods [3] - The process eliminates sodium sulfate waste, generates negligible CO₂ emissions, and creates a safer workplace environment [3] Strategic Implications - The patent allowance is a significant milestone for Aqua Metals, enabling the company to pursue licensing and joint venture opportunities with partners aligned with its vision for a domestic battery materials supply chain [4][5] - The company is actively seeking additional patents and is in discussions with multiple potential licensees and joint venture partners globally [4][5] Company Overview - Aqua Metals is focused on sustainable lithium-ion battery recycling, aiming to close the loop on critical minerals for clean energy technologies [6]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million [15] - Net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to reductions in payroll and related costs [17] Business Line Data and Key Metrics Changes - The company achieved key technical milestones, including product line expansion with initial samples of nickel carbonate and mixed hydroxide precipitate [4] - A successful engineering analysis and lab demonstration for lithium recovery from LFP batteries was completed, which could double lithium carbonate output [5][6] - General and administrative expenses decreased by approximately $619,000, or 27.2%, primarily due to payroll reductions [18] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and tighter capital markets [7] - The industry is experiencing a phase of consolidation and increased partnerships as companies navigate challenging market conditions [33][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and adapting its product portfolio to market needs [3][11] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations [7][15] - The company aims to build its first commercial arc while actively engaging with potential supply, offtake, and funding partners [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability [26][34] - There is optimism regarding future government support for domestic supply chains, although clarity on policy and funding is still pending [42][43] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, ensuring continuity and stability during the transition [10][12] - The company is actively engaging with potential partners to test the quality of new materials produced [48] Q&A Session Questions and Answers Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management highlighted that selling the Sierra Arc allows for significant savings and provides meaningful cash runway to develop commercial relationships [26][28] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players as companies seek to navigate the current market dynamics [32][33] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management emphasized that advancements are driven by market responsiveness and optimization to improve plant economics [37][39] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for more clarity on policy and funding in the coming months [42][43]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million, with plans to retire all debt through the sale of the Sierra Arc asset, which has a carrying value of approximately $9.3 million net of depreciation [15][16] - The net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to workforce reductions and decreased professional fees [17][18] Business Line Data and Key Metrics Changes - The company achieved key milestones in product line expansion, including the production of initial samples of nickel carbonate and mixed hydroxide precipitate (MHP) [4][5] - A breakthrough in lithium recovery from LFP batteries was completed, which can handle a blend of 50% NMC and 50% LFP input, effectively doubling lithium carbonate output [5][6] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and uncertainty in the industry [7][10] - There has been an increase in engagement with various industry players, indicating a phase of consolidation and partnerships within the critical minerals sector [34][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and is continuously advancing its technology to meet market needs [3][10] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations for future development [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability and resilience [26][59] - There is optimism regarding future government support for domestic supply chains, although specific feedback from government agencies is still pending [43][44] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, while Judd Merrill will assist during the transition period [9][12] - The company is actively engaging with potential strategic financial partners aligned with its long-term strategy [20][56] Q&A Session Summary Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management explained that selling the Sierra Arc allows for significant savings and provides cash runway to develop commercial relationships, emphasizing a shift in focus to build facilities closer to supply sources [24][26][30] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players, indicating a positive trend in customer discussions and partnerships [32][34] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management highlighted that advancements are driven by market responsiveness and optimization, aiming to improve plant economics and enhance off-take opportunities [36][40] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for clarity on policy and funding support in the coming months [42][44] Question: Can you elaborate on near-term and long-term financing opportunities? - Management discussed plans to retire existing debt and the potential for project financing, emphasizing the importance of partnerships for future growth [54][56]

[Q1 2025 Business & Operational Highlights](index=1&type=section&id=Q1%202025%20Business%20%26%20Operational%20Highlights) Aqua Metals advanced its technology, optimized its strategic site by selling property, and announced a CFO transition in Q1 2025 [Product & Technology Advancements](index=2&type=section&id=Product%20%26%20Technology%20Advancements) Aqua Metals has significantly advanced its technology platform by producing initial samples of nickel carbonate and mixed hydroxide precipitate (MHP) to meet customer specifications. The company also achieved a breakthrough in recycling lithium iron phosphate (LFP) batteries, developing a process that can mix LFP with NMC input to double lithium carbonate output, thereby enhancing the economic model - Produced initial samples of nickel carbonate and mixed hydroxide precipitate (MHP), aligning with downstream partner requirements and opening new revenue streams[8](index=8&type=chunk) - Completed a bench-scale demonstration for lithium recovery from LFP batteries. The process can take **50% NMC and 50% LFP input** to effectively **double the lithium carbonate output**[8](index=8&type=chunk) - Continued to refine the high-purity lithium carbonate production process to meet rigorous customer specifications[8](index=8&type=chunk) [Strategic Site Optimization](index=2&type=section&id=Strategic%20Site%20Optimization) In response to low lithium prices and cautious capital markets, Aqua Metals has entered into a contract to sell its Sierra ARC property. This strategic move is designed to retire all debt, generate significant cash proceeds, and reduce monthly holding costs by approximately $100,000. The company is now exploring more cost-efficient co-location opportunities for future development - The company has entered into a contract to sell the current Sierra ARC property to align capital deployment with the current market environment[4](index=4&type=chunk) - This sale will retire all debt, produce significant cash proceeds, and reduce holding costs by approximately **$100,000 per month**[4](index=4&type=chunk) - Aqua Metals is actively exploring co-location opportunities with partners to find a site with lower CAPEX and OPEX for its first commercial ARC[4](index=4&type=chunk)[5](index=5&type=chunk) [Management Transition](index=2&type=section&id=Management%20Transition) Aqua Metals announced a planned leadership transition in its finance department. Judd Merrill will step down as CFO on May 16, 2025, and will be succeeded by Eric West, the former Vice President of Finance, effective May 19, 2025. Merrill will continue in a consulting role through August 2025 to ensure a smooth transition - Judd Merrill will transition from his role as CFO on May 16, 2025[6](index=6&type=chunk) - Eric West, formerly the Vice President of Finance, will assume the role of Chief Financial Officer effective May 19, 2025[6](index=6&type=chunk) [Q1 2025 Financial Performance](index=5&type=section&id=Q1%202025%20Financial%20Performance) Aqua Metals reported an increased net loss of $8.3 million in Q1 2025, primarily due to an impairment expense, with total assets decreasing to $18.1 million [Financial Statements Overview](index=5&type=section&id=Financial%20Statements%20Overview) For the first quarter of 2025, Aqua Metals reported a net loss of $8.3 million, an increase from the $5.8 million loss in the same period last year, primarily driven by a $5.2 million impairment expense. Total assets decreased to $18.1 million from $26.4 million at the end of 2024, reflecting a reduction in cash and property, plant, and equipment | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | ($8.3 million) | ($5.8 million) | | Basic and Diluted Net Loss per Share | ($1.03) | ($1.05) | | Total Assets (as of Mar 31, 2025) | $18.1 million | N/A | | Total Liabilities (as of Mar 31, 2025) | $8.5 million | N/A | [Statement of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's net loss for Q1 2025 was $8.3 million, compared to a net loss of $5.8 million in Q1 2024. The increase in net loss was primarily due to a significant one-time impairment expense of $5.2 million. Other operating expenses, such as plant operations and G&A, decreased year-over-year. Net loss per share was ($1.03), slightly better than ($1.05) in the prior year's quarter due to a higher number of weighted average shares outstanding | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating expense | $8,683 | $5,792 | | Loss from operations | ($8,683) | ($5,792) | | Net loss | ($8,315) | ($5,752) | | Basic and diluted net loss per share | ($1.03) | ($1.05) | - A significant impairment expense of **$5.2 million** was recorded in Q1 2025, which was not present in Q1 2024[18](index=18&type=chunk) - Operating costs for plant operations decreased significantly from **$2.2 million** in Q1 2024 to **$724 thousand** in Q1 2025[18](index=18&type=chunk) [Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Aqua Metals' total assets stood at $18.1 million, a significant decrease from $26.4 million at December 31, 2024. This was mainly driven by a reduction in cash and cash equivalents (from $4.1 million to $1.6 million) and a decrease in property, plant, and equipment. Total liabilities also decreased from $10.1 million to $8.5 million over the same period | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,589 | $4,079 | | Total current assets | $2,219 | $4,644 | | Property, plant and equipment, net | $11,109 | $16,473 | | Total assets | $18,065 | $26,365 | | Total current liabilities | $7,164 | $8,182 | | Total liabilities | $8,534 | $10,121 | | Total stockholders' equity | $9,531 | $16,244 |

Core Insights - Aqua Metals reported financial results for Q1 2025, emphasizing advancements in its AquaRefining™ technology aimed at establishing a resilient battery supply chain in the U.S. [1][2] Financial Performance - Total current assets decreased from $4,644,000 as of December 31, 2024, to $2,219,000 as of March 31, 2025 [15] - Total assets also declined from $26,365,000 to $18,065,000 during the same period [15] - The net loss for Q1 2025 was $8,315,000, compared to a net loss of $5,752,000 in Q1 2024 [16] Product and Technology Development - Aqua Metals produced initial samples of nickel carbonate and mixed hydroxide precipitate (MHP), aligning with customer specifications for battery-grade precursors [12] - The company completed a bench-scale demonstration for lithium recovery from lithium iron phosphate (LFP) batteries, which could enhance economic models by doubling lithium carbonate output [12] - Continued refinement of high-purity lithium carbonate production processes positions Aqua Metals as a preferred partner in domestic lithium production [12] Strategic Decisions - Aqua Metals agreed to sell the Sierra ARC property, which will retire all debt and generate significant cash proceeds, reducing holding costs by approximately $100,000 per month [3] - The company is exploring co-location opportunities with strategic partners to lower capital and operational expenditures [3][4] Leadership Changes - Judd Merrill will transition from CFO to a consulting role, with Eric West stepping in as the new CFO effective May 19, 2025 [5][6] - The leadership transition aims to maintain strong collaboration between operations and finance as the company scales [6] Market Positioning - The company is focused on building a flexible, high-performance battery recycling platform to adapt to the evolving lithium battery market [2] - Aqua Metals is committed to constructing its first commercial ARC and is actively engaging with potential supply and funding partners [4]

PART I - FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show a deteriorating financial position, a net loss of $8.3 million, and a "going concern" warning [Financial Statements (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The balance sheet, income statement, and cash flow statement reveal significant asset impairment and operational losses Condensed Consolidated Balance Sheet (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $1,589 | $4,079 | | Total current assets | $2,219 | $4,644 | | **Non-current Assets** | | | | Property, plant and equipment, net | $11,109 | $16,473 | | Total assets | $18,065 | $26,365 | | **Liabilities & Equity** | | | | Total current liabilities | $7,164 | $8,182 | | Total liabilities | $8,534 | $10,121 | | Total stockholders' equity | $9,531 | $16,244 | Condensed Consolidated Statement of Operations (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating expense | $8,683 | $5,792 | | Impairment expense | $5,247 | $— | | Loss from operations | $(8,683) | $(5,792) | | Net loss | $(8,315) | $(5,752) | | Basic and diluted net loss per share | $(1.03) | $(1.05) | Condensed Consolidated Statement of Cash Flows (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,753) | $(4,251) | | Net cash used in investing activities | $(375) | $(5,579) | | Net cash provided by financing activities | $638 | $1,602 | | **Net decrease in cash** | **$(2,490)** | **$(8,228)** | | **Cash at end of period** | **$1,589** | **$8,294** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes disclose the "going concern" issue, a $5.2 million impairment charge, and details on debt and equity - The company's business is focused on applying its patented AquaRefining technology to recycle lead-acid and lithium-ion batteries[20](index=20&type=chunk) - Management has **substantial doubt** about the company's ability to continue as a **going concern** for the next 12 months[23](index=23&type=chunk)[24](index=24&type=chunk) - A **$5.2 million impairment charge** was recognized on a facility at TRIC, which the Board approved for sale in April 2025[50](index=50&type=chunk) - On May 2, 2025, the company fully repaid **$1.0 million in notes payable** to accredited investors[62](index=62&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses its technology commercialization, a significant net loss, and a critical liquidity situation [Business Overview and Strategy](index=23&type=section&id=Business%20Overview%20and%20Strategy) The company's strategy centers on its AquaRefining technology and licensing, with a recent shift to sell assets - The company's core business is applying its commercialized clean, water-based recycling technology, AquaRefining, to batteries[90](index=90&type=chunk) - The primary business strategy is to build, operate, and license Li AquaRefining recycling capacity[101](index=101&type=chunk) - Subsequent to Q1 2025, the company entered a contract to **sell its Sierra ARC property to retire all debt** and add cash[96](index=96&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) The company reported no revenue and an $8.7 million operating expense, driven by a $5.2 million impairment charge Operating Expenses Comparison (in thousands) | | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Plant operations | $724 | $2,209 | $1,485 | (67.2)% | | Research and development | $336 | $588 | $252 | (42.9)% | | Impairment expense | $5,247 | $— | $(5,247) | N/A | | General and administrative | $2,376 | $2,995 | $619 | (20.7)% | | **Total operating expense** | **$8,683** | **$5,792** | **$(2,891)** | **49.9%** | - A non-cash **impairment expense of $5,247,000** was recognized related to a facility at TRIC[107](index=107&type=chunk) - Plant operations and R&D costs decreased significantly, driven by **workforce reductions** and other cost-cutting measures[105](index=105&type=chunk)[106](index=106&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces a severe liquidity crisis with a $4.9 million working capital deficit and a going concern warning Liquidity Position as of March 31, 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Cash and cash equivalents | $1,589 | | Current liabilities | $7,164 | | Working capital deficit | $(4,945) | - Management states there is **"substantial doubt regarding the Company's ability to continue operating as a going concern"**[115](index=115&type=chunk) Summary of Cash Flows (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,753) | $(4,251) | | Net cash used in investing activities | $(375) | $(5,579) | | Net cash provided by financing activities | $638 | $1,602 | [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states this item is not applicable, indicating no significant market risk disclosures for the period - The company has determined that quantitative and qualitative disclosures about market risk are **not applicable**[121](index=121&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[122](index=122&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[123](index=123&type=chunk) PART II - OTHER INFORMATION [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a critical need for financing and substantial doubt about its ability to continue as a going concern - The company **requires additional financing** to execute its business plan, which may not be available on reasonable terms[126](index=126&type=chunk) - As of March 31, 2025, the company had cash of approximately **$1.6 million** and a **working capital deficit of $4.9 million**[126](index=126&type=chunk) - The independent auditor's report expresses **substantial doubt** about the company's ability to continue as a **going concern**[127](index=127&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including governance documents and required certifications - This section lists all exhibits filed with the report, including corporate governance documents and Sarbanes-Oxley Act certifications[129](index=129&type=chunk)

Leadership Transition - Aqua Metals announced a leadership transition with Judd Merrill stepping down as CFO effective May 16, 2025, to take a role with increased responsibilities at another publicly listed company [1] - Eric West, former Vice President of Finance, will be appointed as the new CFO effective May 19, 2025, bringing six years of experience with Aqua Metals and a background in the mining industry [2] Company Strategy and Vision - The leadership change is positioned to support Aqua Metals' ongoing strategy in the domestic critical minerals and battery recycling sector, emphasizing the importance of continuity and capacity in leadership [3] - Aqua Metals is focused on sustainable lithium-ion battery recycling through its patented AquaRefining™ technology, aiming to close the loop on critical minerals for clean energy technologies [4]