Core Insights - The article emphasizes the importance of identifying undercovered stocks in Brazil and Latin America, suggesting that the best investment opportunities may not be immediately obvious [1]. Company and Industry Summary - The focus is primarily on stocks in Brazil and Latin America, with occasional insights into global large-cap companies [1]. - The analyst expresses a potential interest in initiating a long position in ATLX within the next 72 hours, indicating a strategic move towards this specific stock [2].

Core Points - Atlas Lithium Corporation has announced a registered direct offering of 2,500,000 shares of common stock at a price of $4.00 per share, resulting in gross proceeds of approximately $10 million [1][2] - The company plans to use the net proceeds from the offering for advancing its Neves Lithium Project towards production, as well as for working capital and general corporate purposes [1] - The offering is being conducted under an effective shelf registration statement declared effective by the SEC on September 3, 2025 [2] Financial Details - The offering price is set at $4.00 per share, with total gross proceeds expected to be around $10 million before deducting placement agent commissions and other expenses [1] - The closing of the offering is anticipated to occur on or about December 8, 2025, subject to customary closing conditions [1] Strategic Insights - The addition of two new long-term U.S. institutional investors is expected to strengthen the company's corporate profile and balance sheet [2] - A.G.P./Alliance Global Partners is acting as the sole placement agent for this offering [1]

Core Insights - Atlas Lithium Corporation reports a strong financial position and significant progress in project implementation, particularly for its Neves Project in Brazil [1][2] Financial Position - As of September 30, 2025, the company has cash and cash equivalents of $20.98 million, which is 89% of its total current assets of $23.55 million [2] - Current liabilities stand at $6.38 million, resulting in a strong current ratio of 3.69, indicating financial strength [2] - The company's working capital is $17.17 million, providing flexibility to meet obligations and fund operations without external financing [2] Procurement Activities - The company has seen strong interest from suppliers for the Neves Project, with multiple bidders participating in procurement processes [3][6] - Four technical site visits were conducted in September 2025, attracting significant contractor participation: 17 for Earthworks, 14 for Administrative & Operational Buildings, 11 for Civil Works, and 12 for Mechanical Assembly [5] - A total of 2,813 clarification questions were received from potential suppliers, indicating high market interest [5] Project Development - The Definitive Feasibility Study (DFS) completed in August 2025 shows strong project economics, including a 145% after-tax Internal Rate of Return and a $539 million after-tax Net Present Value [6] - The estimated direct capital expenditure for the Neves Project is $57.6 million, the lowest among announced projects in Brazil, with operating costs of $489 per tonne of lithium concentrate [6] - Key operational permits were secured in October 2024, and a $30 million modular DMS processing plant is ready for assembly in Brazil [6]

Financial Performance - Net revenue for the three months ended September 30, 2025, was $169.55 million, compared to $177.98 million for the same period in 2024, indicating a decrease of about 4.7%[19] - The net loss attributable to Atlas Lithium Corporation stockholders for the three months ended September 30, 2025, was $6.95 million, compared to a net loss of $9.03 million for the same period in 2024, reflecting an improvement of approximately 23.8%[19] - The company reported a gross loss of $69.47 million for the three months ended September 30, 2025, compared to a gross loss of $80.90 million for the same period in 2024, indicating an improvement of approximately 14.1%[19] - Basic and diluted loss per share for the three months ended September 30, 2025, was $(0.35), compared to $(0.60) for the same period in 2024, reflecting a decrease in loss per share of about 41.7%[19] - The company reported a net loss of $9,717,647 for the nine months ended September 30, 2024[21] - For the nine months ended September 30, 2025, the net loss was $24,469,037 compared to a net loss of $32,855,151 for the same period in 2024, indicating a reduction in losses[27] - The company reported an increase in comprehensive loss, with a total of $(9,717,647) for the nine months ended September 30, 2024[21] Assets and Liabilities - Total assets increased to $72.17 million as of September 30, 2025, up from $57.85 million on December 31, 2024, representing a growth of approximately 24.8%[16] - Total liabilities rose to $36.60 million as of September 30, 2025, compared to $35.84 million on December 31, 2024, an increase of about 2.1%[16] - Total stockholders' equity increased to $35.57 million as of September 30, 2025, from $22.01 million on December 31, 2024, representing a growth of approximately 61.9%[16] - The accumulated deficit as of September 30, 2025, stands at $(165,058,617)[22] - The total accumulated deficit as of September 30, 2025, was $(165,058,617), reflecting the ongoing financial challenges faced by the company[25] Cash Flow and Expenditures - Cash and cash equivalents increased to $20.98 million as of September 30, 2025, up from $15.54 million on December 31, 2024, marking a rise of approximately 35.1%[16] - Cash flows from operating activities resulted in a net cash used of $15,365,255 for the nine months ended September 30, 2025, compared to $14,212,264 in 2024[27] - The company reported net cash provided by financing activities of $28,687,888 for the nine months ended September 30, 2025, compared to $30,291,547 in 2024[27] - The company incurred capital expenditures of $5,897,200 for the nine months ended September 30, 2025, compared to $19,164,920 in 2024[27] Stock and Equity - The company had a weighted-average number of common shares outstanding of 20,153,907 for the three months ended September 30, 2025, compared to 14,964,697 for the same period in 2024, an increase of about 34.5%[19] - The balance of common stock shares increased to $21,797, reflecting an issuance of common stock in connection with private offerings totaling $15,820,035[21] - The Company issued 2,916,366 shares of common stock under private offerings, raising $14,712,117 in additional paid-in capital[21] - The Company sold 2,128,714 shares of common stock during the three months ended September 30, 2025, generating net proceeds of $11.3 million[76] - During the nine months ended September 30, 2025, the company issued 75,000 common stock purchase warrants with a total grant date fair value of $200,981[90] Financial Instruments and Derivatives - The total valuation of financial instruments decreased by $14,150 during the reporting period[21] - The fair value of the embedded conversion feature of the convertible debt was $10,383 as of September 30, 2025, down from $66,310 at December 31, 2024[57] - For the three months ended September 30, 2025, the Company recognized a loss of $3,313 on changes in fair value of financial instruments, compared to a gain of $84,934 for the same period in 2024[58] - For the nine months ended September 30, 2025, the Company reported a gain of $55,927 on changes in fair value of financial instruments, down from a gain of $396,651 in the prior year[58] Foreign Currency and Risks - The company operates primarily in Brazil, exposing it to currency risks that may affect financial results due to exchange rate fluctuations[111] - The company experienced a foreign currency translation adjustment of $40,849, impacting the overall equity[21] - The company reported a foreign currency translation adjustment of $49,632 for the nine months ended September 30, 2025[25] Other Financial Metrics - Stock-based compensation for the period amounted to $1,458,348, indicating ongoing investment in employee incentives[21] - Stock-based compensation and services for the nine months ended September 30, 2025, amounted to $7,877,085, down from $18,084,197 in 2024[27] - The Company recorded stock-based compensation expenses of $766,693 and $2,337,433 for the three and nine months ended September 30, 2025, respectively, compared to $3,389,507 and $10,094,837 for the same periods in 2024[88]

Core Insights - Atlas Lithium Corporation has been confirmed as Co-Host of the Brazil Critical Minerals Summit 2026, scheduled for June 18-19, 2026, in Belo Horizonte, Minas Gerais [1][2] - The Summit is endorsed by Invest Minas and the Government of the State of Minas Gerais, aiming to gather global investors, executives, policymakers, and industry leaders in the critical minerals sector [2] Company Overview - Atlas Lithium holds the largest lithium exploration portfolio in Brazil among publicly traded companies, with approximately 797 km² of mineral rights [3][6] - The flagship Neves Project in Minas Gerais has received operational permitting and is progressing towards production, positioning the company as a significant player in the global supply of hard-rock lithium concentrate [3][6] - The Neves Project's Definitive Feasibility Study indicates strong financial metrics, including a 145% Internal Rate of Return (IRR), a Net Present Value (NPV) of $539 million, and an 11-month payback period [6] Industry Context - The 2026 Summit will feature senior government representatives, international delegations, and major mining companies, providing exclusive networking and investment opportunities within Brazil's mining community [4] - The event aims to reinforce Brazil's position as a key player in the global critical minerals conversation, particularly in lithium, rare earths, and graphite [4]

Core Insights - Atlas Lithium's subsidiary, Atlas Critical Minerals Corporation, has reported strong results from its diversified rare earth portfolio, establishing Brazil's most comprehensive rare earths project portfolio [1][6] Group 1: Project Highlights - The Iporá Project in Goiás State and the Alto do Paranaíba Project in Minas Gerais State have demonstrated the potential viability of two distinct rare earth deposit types [2] - The diversified approach reduces geological risk and offers varied metallurgical processing methods, enhancing development sequencing options [4] - High-grade drilling results include 8 meters at 2,071 ppm Total Rare Earths Oxide (TREO) and a peak interval of 3,822 ppm TREO [5] Group 2: Strategic Advantages - Both projects are strategically located in established mining regions, with the Iporá Project near Serra Verde, a rare earths mining and processing operation [7] - Atlas Critical Minerals controls over 218,000 hectares of critical mineral rights in Brazil, covering rare earths, titanium, graphite, and uranium [8] Group 3: Financial and Operational Overview - Atlas Lithium is focused on advancing its Neves Project, which has a Definitive Feasibility Study showing a 145% Internal Rate of Return (IRR) and a $539 million Net Present Value (NPV) [9]

Core Insights - The 3rd Brazil Critical Minerals Summit will take place from June 17-19, 2026, in Belo Horizonte, Minas Gerais, focusing on investment and innovation in Brazil's critical minerals sector [1][2] - The event is co-hosted by Atlas Lithium and endorsed by Invest Minas, highlighting Brazil's strategic importance in the global critical minerals market [1][4] Industry Overview - Brazil is positioning itself as a global hub for strategic minerals, essential for the energy transition, with the summit serving as a platform for discussing opportunities and challenges in the mining sector [4][8] - The summit aims to attract international leaders, investors, and experts to foster discussions on the critical minerals industry [4][8] Event Highlights - Day 1 features a VVIP Icebreaker Reception for networking among influential mining companies and policymakers [3] - Day 2 includes discussions on Brazil's mining landscape, investment drivers, and a technology showcase for sustainable mining [6] - Day 3 focuses on securing global supply chains for EV and energy storage, ESG considerations, and the regulatory landscape [6] Company Profiles - Atlas Lithium Corporation is a key player in the lithium sector, with a focus on advancing its Neves Project, which has a 145% IRR and a $539 million NPV [9] - Invest Minas is the investment promotion agency for Minas Gerais, recognized for attracting foreign investment and promoting the critical minerals sector [8]

Core Insights - Atlas Lithium Corporation announced exceptional results from its subsidiary, Atlas Critical Minerals Corporation, highlighting high-grade rare earths and premium graphite concentrate [1][3][5] Company Developments - Atlas Critical Minerals Corporation reported grades of up to 28,870 ppm TREO and 23.2% TiO₂, along with a graphitic carbon concentrate of 96.6% [1][12] - The reports were prepared by SGS Canada Inc., confirming the strategic value of diversifying into critical minerals essential for electrification and defense applications [2][3] - Atlas Lithium holds a 30% ownership stake in Atlas Critical Minerals Corporation and is advancing its Neves Lithium Project towards production [10] Industry Context - The geopolitical landscape has made rare earth elements crucial for national security and technological sovereignty, emphasizing the need for diversified supply chains [4] - Brazil's stable geopolitical environment and substantial deposits of critical minerals provide a competitive advantage for Atlas Critical Minerals [8] Project Highlights - The Alto do Paranaíba Project in Brazil covers 27,734 hectares and has shown consistent high-grade mineralization for rare earths and titanium [6] - The Malacacheta Project has confirmed large-flake graphite mineralization with strong metallurgical results [8] - Atlas Critical Minerals controls over 218,000 hectares of mineral rights across various critical minerals, enhancing its strategic positioning [9]

Core Insights - Atlas Lithium Corporation has reported exceptional exploration results from its 100%-owned Salinas Project in Brazil, confirming high-quality lithium mineralization near the surface, which positions Salinas as the next growth frontier for the company [1][4][10] Salinas Project Overview - The Salinas Project covers 388 hectares (959 acres) in northern Minas Gerais, located 5 miles east of the Colina Project, which was acquired by Pilbara Minerals for approximately $370 million in August 2024 [2] - The project is situated about 100 kilometers (60 miles) north of Atlas Lithium's flagship Neves Project, in a region known for its lithium prospectivity within Brazil's Lithium Valley [2] Exploration Activities - Comprehensive exploration activities at Salinas have included systematic soil sampling, geological mapping, LIDAR surveys, and high-resolution aerial photogrammetry, successfully identifying multiple spodumene-rich pegmatite bodies [3] Initial Drilling Results - Initial drilling results at the Salinas Project have confirmed significant spodumene mineralization at a depth of only 23 meters, with 501 meters of diamond drilling completed to date [4][5] - Analytical results indicate Li₂O grades exceeding 2.0%, demonstrating strong geological potential for cost-effective open-pit mining [5] Strategic Growth Opportunity - The Salinas Project is viewed as a compelling growth opportunity that could significantly expand future production capacity, validating the company's strategic vision for regional growth [10] - The proximity of Salinas to Pilbara's Colina Project enhances its strategic importance [10] Neves Project Focus - While advancing the Salinas Project, the company remains committed to bringing its flagship Neves Project into production, which has demonstrated exceptional project economics [12][15] - The Neves Project's Definitive Feasibility Study (DFS) highlights include a 145% IRR, $539 million NPV, and an 11-month payback period, with a DMS plant capable of producing up to 150,000 tpa of lithium concentrate [13][17]

[Report Overview](index=1&type=section&id=Report%20Overview) [Company Information and Filing Details](index=1&type=section&id=Company%20Information%20and%20Filing%20Details) Atlas Lithium Corporation, a smaller reporting company, filed its Form 10-Q for the quarter ended June 30, 2025 - Filing Type: **Quarterly Report on Form 10-Q** for the period ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - Registrant: **ATLAS LITHIUM CORPORATION**, incorporated in Nevada[4](index=4&type=chunk) Filer Status | Status | Value | | :-------------------- | :---- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☐ | - Common Stock Outstanding: **19,582,473 shares** as of July 31, 2025[6](index=6&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements subject to significant risks that could cause actual results to differ materially - Forward-looking statements are covered by safe harbor provisions and involve known and unknown risks, uncertainties, and important factors that may cause actual results to differ materially[10](index=10&type=chunk) - Factors that could cause future results to materially differ include unprofitable exploration efforts, market fluctuations, government regulations, competition, loss of key personnel, and general economic conditions[11](index=11&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company does not plan to publicly update or revise any forward-looking statements[13](index=13&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Total assets | $63,316,494 | $57,854,608 | +$5,461,886 | | Total liabilities | $37,073,178 | $35,843,367 | +$1,229,811 | | Total stockholders' equity | $26,243,316 | $22,011,241 | +$4,232,075 | | Cash and cash equivalents | $13,864,963 | $15,537,476 | -$1,672,513 | | Property and equipment, net | $45,319,972 | $38,855,071 | +$6,464,901 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Condensed Consolidated Statements of Operations and Comprehensive Loss Highlights | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net revenue | $31,805 | $182,788 | $56,980 | $374,108 | | Gross profit (loss) | $(18,223) | $91,002 | $(80,898) | $180,256 | | Total operating expenses | $6,104,233 | $9,637,166 | $15,865,115 | $22,903,626 | | Loss from operations | $(6,122,456) | $(9,546,164) | $(15,946,013) | $(22,723,370) | | Net loss attributable to Atlas Lithium Corporation stockholders | $(5,559,233) | $(9,171,360) | $(14,576,190) | $(22,134,827) | | Basic and diluted loss per share | $(0.31) | $(0.67) | $(0.84) | $(1.61) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' Equity Changes (Six Months Ended June 30) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------- | :------------ | :------------ | | Total Stockholders' Equity | $26,243,316 | $27,762,191 | | Common Stock Issued | 2,827,544 shares | 2,061,111 shares | | Additional Paid-in Capital | $183,186,939 | $151,964,718 | | Net Loss | $(16,493,267) | $(23,137,504) | - Issuance of common stock in connection with private offerings contributed significantly to additional paid-in capital[20](index=20&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | | :------------------------------------- | :------------ | :------------ | :----- | | Net cash used in operating activities | $(8,306,993) | $(11,292,221) | +$2,985,228 | | Net cash used in investing activities | $(6,290,362) | $(16,777,111) | +$10,486,749 | | Net cash provided by financing activities | $12,923,132 | $30,140,298 | -$17,217,166 | | Cash and cash equivalents at end of period | $13,864,963 | $32,267,730 | -$18,402,767 | Notes to the Condensed Consolidated Financial Statements [NOTE 1 – Organization, Business and Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%2C%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - Atlas Lithium Corporation, incorporated in Nevada, focuses on mineral exploration in Brazil, with a special focus on the **Neves Lithium Project**[26](index=26&type=chunk)[29](index=29&type=chunk) - The company's financial statements are prepared under U.S. GAAP and consolidate its 100% owned subsidiaries and Atlas Critical Minerals Corporation (**30.11% equity**, consolidated as a variable interest entity)[27](index=27&type=chunk) - The company operates as a single reportable segment: **mining**, with revenue currently generated solely from its Quartzite project, while other mining projects are in the exploration phase[29](index=29&type=chunk)[32](index=32&type=chunk) [NOTE 2 – Composition of Certain Financial Statement Items](index=12&type=section&id=NOTE%202%20%E2%80%93%20COMPOSITION%20OF%20CERTAIN%20FINANCIAL%20STATEMENT%20ITEMS) Inventories Composition | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Materials and supplies | $395,445 | $321,085 | | Quartzite blocks and slabs | $49,805 | $171,727 | | Total | $445,250 | $492,812 | Property and Equipment, Net | Category | June 30, 2025 Net Book Value | December 31, 2024 Net Book Value | | :-------------------- | :--------------------------- | :------------------------------- | | Total fixed assets | $45,319,972 | $38,855,071 | - Intangible assets, net (primarily software) decreased to **$354,516** as of June 30, 2025, from $399,773 at December 31, 2024[38](index=38&type=chunk) Accounts Payable and Accrued Expenses | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Trade payables | $6,317,257 | $4,779,903 | | Payroll and social charges | $260,818 | $157,191 | | Taxes payable | $25,578 | $64,571 | | Total | $6,603,653 | $5,001,664 | - Operating lease liabilities totaled **$469,119** as of June 30, 2025, with a current portion of $168,667 and a non-current portion of $300,452[42](index=42&type=chunk) Convertible Debt | Creditor | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Due to Nanyang Investment Management Pte Ltd | $5,964,780 | $5,933,866 | | Due to Jaeger Investments Pty Ltd | $1,988,283 | $1,977,979 | | Due to Modha Reena Bhasker | $994,130 | $988,978 | | Due to Clipper Group Limited | $994,130 | $988,978 | | Total convertible debt | $9,941,323 | $9,889,801 | | Current portion | $81,918 | $81,918 | | Non-current portion | $9,859,405 | $9,807,883 | - Convertible debt has a **6.5% interest rate**, 36-month maturity, and a conversion price of **US$28.225/share**[47](index=47&type=chunk) Derivative Assets and Liabilities | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Derivative assets - Non-Deliverable Forward | $427,222 | $0 | | Total derivative assets | $427,222 | $0 | | Derivative liability – conversion feature on convertible debt | $7,070 | $66,310 | | Derivative liability – restricted stock awards | $11,350 | $121,512 | | Derivative liability - Non-Deliverable Forward | $0 | $274,816 | | Total derivative liabilities | $18,420 | $462,638 | [NOTE 3 – Deferred Other Income](index=17&type=section&id=NOTE%203%20%E2%80%93%20DEFERRED%20OTHER%20INCOME) - On May 2, 2023, Atlas Brazil sold a **3% royalty interest** from 19 mineral rights to Lithium Royalty Corp for **$20,000,000 in cash**[60](index=60&type=chunk) - Deferred income will be recognized in profit and loss on a units-of-sale basis in accordance with the sales of spodumene produced[60](index=60&type=chunk) [NOTE 4 – Other Noncurrent Liabilities](index=17&type=section&id=NOTE%204%20%E2%80%93%20OTHER%20NONCURRENT%20LIABILITIES) - Other noncurrent liabilities, primarily tax refinancing programs and provisions for contingencies, amounted to **$31,425** as of June 30, 2025 (down from $33,962 at December 31, 2024)[61](index=61&type=chunk) [NOTE 5 – Stockholders' Equity](index=17&type=section&id=NOTE%205%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) - The Company has **200,000,000 authorized shares** of common stock ($0.001 par value)[62](index=62&type=chunk) - During the six months ended June 30, 2025, **2,468,502 shares** of common stock were sold through an At the Market (ATM) Agreement, generating net proceeds of **$11.9 million**[64](index=64&type=chunk)[68](index=68&type=chunk) - **One share of Series A Preferred Stock** is outstanding, held by the CEO, granting **51% of total votes**[65](index=65&type=chunk) - In the six months ended June 30, 2025, **439,996 common stock options** were issued with a grant date fair value of **$3,066,772**, resulting in **$1,570,740** in stock-based compensation expense[70](index=70&type=chunk) - **75,000 common stock purchase warrants** were issued in the six months ended June 30, 2025, with a total grant date fair value of **$200,981**[72](index=72&type=chunk)[74](index=74&type=chunk) - During the six months ended June 30, 2025, **351,042 Restricted Stock Units (RSUs)** were granted, and **379,042 RSUs** vested, leading to **$3,389,533** in stock-based compensation expense[76](index=76&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - A derivative liability of **$11,350** was recognized as of June 30, 2025, for other stock incentives tied to market capitalization milestones for an officer[78](index=78&type=chunk) [NOTE 6 – Commitments and Contingencies](index=22&type=section&id=NOTE%206%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Contractual Obligations (June 30, 2025) | Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :------------------------------------- | :------------ | :--------------- | :-------- | :-------- | :---------------- | | Lithium processing plant construction | $1,335,700 | $1,335,700 | $0 | $0 | $0 | - Lease commitments are detailed in Note 2[81](index=81&type=chunk) [NOTE 7 – Related Party Transactions](index=22&type=section&id=NOTE%207%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) - Related parties include Jaeger Investments Pty Ltd (controlled by a former senior advisor) and RTEK International DMCC (controlled by former officers/directors)[83](index=83&type=chunk) - The Technical Services Agreement with RTEK International DMCC was **terminated by the Company on March 20, 2025**, due to alleged non-performance and breaches, with no expected early termination penalties[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - Jaeger Investments Pty Ltd purchased **$1,967,503 of convertible promissory notes** from the Company in November 2023[88](index=88&type=chunk) Related Party Outstanding Amounts and Expenses (June 30, 2025) | Related Party | Accounts Payable / Debt | Expenses / Payments (Six Months) | | :------------------------ | :---------------------- | :----------------------------- | | RTEK International DMCC | $0 | $29,294 | | Jaeger Investments Pty Ltd. | $1,988,283 | $64,467 | | Total | $1,988,283 | $93,761 | - Atlas Critical Minerals Corporation issued **1,365,387 shares** to Mr Fogassa and **438,168 shares** to other officers/directors for services[90](index=90&type=chunk)[91](index=91&type=chunk) [NOTE 8 – Risks and Uncertainties (Currency Risk)](index=25&type=section&id=NOTE%208%20%E2%80%93%20RISKS%20AND%20UNCERTAINTIES) - The Company operates primarily in Brazil, exposing it to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S dollars[92](index=92&type=chunk)[93](index=93&type=chunk) - Changes in exchange rates affect the translation of income statement accounts (average rates), balance sheet assets/liabilities (end-of-period rates), and equity accounts (historical rates), impacting the foreign currency translation adjustment[93](index=93&type=chunk) [NOTE 9 – Subsequent Events](index=25&type=section&id=NOTE%209%20%E2%80%93%20SUBSEQUENT%20EVENTS) - **No material subsequent events** were identified between June 30, 2025, and the date the condensed consolidated financial statements were issued[94](index=94&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 the company's financial condition, operational results, and focus on lithium exploration in Brazil [Overview](index=26&type=section&id=Overview) - Atlas Lithium Corporation is a mineral exploration and development company focused on hard-rock lithium projects in Brazil's 'Lithium Valley', aiming to produce spodumene concentrate[98](index=98&type=chunk) - The company owns **53,942 hectares** for lithium in 95 mineral rights in Brazil, representing the largest portfolio among publicly listed companies[99](index=99&type=chunk) - Atlas Critical Minerals Corporation, an exploration stage company focused on other critical minerals, is consolidated due to Atlas Lithium's **30.11% equity interest**[100](index=100&type=chunk) [Operational Update](index=26&type=section&id=Operational%20Update) - SGS Canada Inc completed the Definitive Feasibility Study (DFS) for the Neves Project, demonstrating **robust project economics**[101](index=101&type=chunk) Neves Project DFS Key Economics | Metric | Value | | :------------------------------------- | :---------------- | | After-tax Internal Rate of Return (IRR) | 145% | | Payback Period | 11 months | | Capital Expenditure (core implementation) | $57 million | | Average Lithium Concentrate Production | 146,000 tons per annum | | Initial Life of Mine | ~7 years | | Projected Cash Costs | $489 per ton | - Brazil's Ministry of Mines and Energy granted a **mining concession** ('Portaria de Lavra') for a key mineral right within the Neves Project, providing perpetual ownership[102](index=102&type=chunk) - The modular dense media separation lithium processing plant was successfully transported to Minas Gerais for assembly[103](index=103&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) - Net loss for the six months ended June 30, 2025, decreased to **$16.4 million**, compared to $23.1 million for the same period in 2024[104](index=104&type=chunk) - The decrease in net loss was mainly due to the absence of exploration cost expenses (capitalized in 2025 vs **$3.2 million expensed in 2024**) and a **$5.4 million decrease** in stock-based compensation expense[106](index=106&type=chunk) - Partially offsetting the decrease was a **$1.6 million increase** in General and Administrative expenses, driven by a $1.7 million increase in payroll and $0.9 million in marketing activities[106](index=106&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had cash and cash equivalents of **$13.9 million** and working capital of **$7.9 million**[104](index=104&type=chunk)[108](index=108&type=chunk) - Net cash used in operating activities decreased by **$3.0 million (26%)** to $8.3 million for the six months ended June 30, 2025, primarily due to capitalized exploration expenses and increased accounts payable[105](index=105&type=chunk) - Net cash used in investing activities decreased by **$10.4 million (63%)** to $6.3 million, reflecting lower payments for the lithium processing plant and capitalized exploration costs[107](index=107&type=chunk)[111](index=111&type=chunk) - Net cash provided by financing activities increased to **$12.9 million**, driven by **$11.9 million** from common stock sales via the ATM Agreement and $1.4 million from subsidiary common stock sales[107](index=107&type=chunk)[111](index=111&type=chunk) - The company believes current cash and equivalents are sufficient for at least twelve months but may require additional equity or debt financing for future growth and project development[108](index=108&type=chunk) [Currency Risk](index=28&type=section&id=Currency%20Risk) - Operations primarily in Brazil expose the company to currency risks from intercompany transactions and the translation of foreign subsidiary financial results into U.S dollars[109](index=109&type=chunk)[110](index=110&type=chunk) - Changes in exchange rates affect the translation of income statement accounts (average rates), balance sheet assets and liabilities (end-of-period rates), and equity accounts (historical rates), impacting the foreign currency translation adjustment account[110](index=110&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The company's financial statements are prepared in accordance with U.S GAAP[112](index=112&type=chunk) - There have been **no significant changes** to the critical accounting estimates disclosed in the 2024 Form 10-K[112](index=112&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, this disclosure is not required - This item is not required for smaller reporting companies[113](index=113&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes - Disclosure controls and procedures were evaluated and deemed **effective** at a reasonable assurance level as of June 30, 2025[114](index=114&type=chunk) - **No material changes** in internal control over financial reporting occurred in the quarter ended June 30, 2025[115](index=115&type=chunk) - Management acknowledges that controls provide only **reasonable assurance** due to inherent limitations and resource constraints[116](index=116&type=chunk) [PART II - OTHER INFORMATION](index=30&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. LEGAL PROCEEDINGS](index=30&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company reports no pending legal proceedings expected to have a material adverse effect - **No pending legal proceedings** are likely to result in a material adverse effect on the company's financial position, results of operations, or cash flows[119](index=119&type=chunk) [Item 1A. RISK FACTORS](index=30&type=section&id=Item%201A.%20RISK%20FACTORS) Key investment risks include potential U.S tariffs on Brazilian minerals and uncertainties in the Neves Project's viability - Investing in the company's common stock involves a **high degree of risk**[120](index=120&type=chunk) - New U.S tariffs and trade restrictions on Brazilian products (e.g, a threatened **50% tariff**) and potential sectoral tariffs on critical mineral imports could adversely affect the company's business[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - The economic viability of the Neves Project, despite a supportive Definitive Feasibility Study, faces risks such as significant, prolonged decreases in lithium market prices, operational delays, and more stringent regulations[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=31&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company issued 5,750 unregistered shares to a consultant for services, exempt under Section 4(a)(2) - On May 5, 2025, **5,750 shares of common stock** were issued to a consultant in exchange for consulting and professional services[129](index=129&type=chunk) - These sales were exempt from registration under **Section 4(a)(2)** of the Securities Act[129](index=129&type=chunk) [Item 3. DEFAULTS UPON SENIOR SECURITIES](index=31&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - **No defaults** upon senior securities were reported[130](index=130&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=31&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company reported no mine safety disclosures - **No mine safety disclosures** were reported[131](index=131&type=chunk) [Item 5. OTHER INFORMATION](index=31&type=section&id=Item%205.%20OTHER%20INFORMATION) The CEO and a Board Member entered into Rule 10b5-1(c) plans for potential future sales of common stock - On June 13, 2025, CEO Mr Fogassa entered into a Rule 10b5-1(c) plan for the potential sale of up to **300,000 shares** of common stock[132](index=132&type=chunk) - On the same date, Board Member Mr Roger Noriega entered into a Rule 10b5-1(c) plan for the potential sale of up to **50,000 shares** of common stock[133](index=133&type=chunk) - Both plans are intended to satisfy Rule 10b5-1(c) conditions, with sales starting in September 2025 and expiring in March 2026[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and technical reports - Key exhibits include the 2023 Stock Incentive Plan, CEO and CFO certifications, and the S-K 1300 Technical Report Summary for the Neves Lithium Project (Exhibit 96.1)[134](index=134&type=chunk) [Signatures](index=33&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer and Chief Financial Officer on August 04, 2025 - The report was signed by Marc Fogassa (Chief Executive Officer and Chairman of the Board) and Tiago Miranda (Chief Financial Officer) on **August 04, 2025**[139](index=139&type=chunk)