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)

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 |