Core Viewpoint - Atlas Lithium Corporation has completed a Definitive Feasibility Study (DFS) for its Neves Lithium Project, indicating strong financial metrics including a 145% internal rate of return (IRR), an 11-month payback period, and an after-tax net present value (NPV) of $539 million, positioning it as a low-cost producer in the lithium sector [1][12]. Financial Metrics - The Neves Project is projected to have operational production costs of $489 per tonne of lithium concentrate, making it one of the lowest-cost producers globally [1]. - Direct capital expenditures for the project are estimated at $57.6 million, which is the lowest among other announced projects in Brazil [2]. - The company has already invested approximately $30 million in acquiring and transporting the project's dense media separation (DMS) plant to Brazil [2]. Project Implementation and Technology - The project will utilize proven DMS technology, with a robust lithium recovery rate of 61.7%, producing high-quality, low-impurity lithium concentrate [3]. - The DFS has validated the project's strong economics, emphasizing its capital efficiency and low operating costs [3]. Regulatory and Operational Status - The Neves Project received its mining concession status ("Portaria de Lavra") from Brazil's Ministry of Mines and Energy on May 27, 2025, allowing for continuous mining operations [4]. - The project is located in the Araçuaí Pegmatite District, benefiting from favorable infrastructure and tax incentives that reduce the corporate tax rate from 34% to 15.25% [5][6]. Future Expansion Opportunities - Atlas Lithium is strategically positioned for future growth with its Salinas and Clear Projects, both of which are 100% owned by the company and have shown promising initial results [9][10]. - The Salinas Project is located near a previously owned lithium asset that was acquired for approximately $370 million, indicating its potential value [9]. Leadership and Management - Project implementation is being overseen by Eduardo Queiroz, who has over two decades of experience in managing large-scale mining projects [8]. - The company aims to create quality employment opportunities in the Vale do Jequitinhonha region, contributing to local society [7].

Core Insights - Atlas Lithium Corporation's subsidiary, Atlas Critical Minerals, reported high-grade near-surface rare earths mineralization with grades reaching 28,870 ppm TREO and 23.2% TiO₂, alongside graphite concentrate results of up to 96.6% [1][5][6] - The company holds over 575,000 acres of mineral rights in Brazil, which is known for its significant rare earth deposits and is home to the world's second-largest graphite reserves [1][8] - The strategic importance of critical minerals has been highlighted by recent investments, such as the U.S. Department of Defense's $400 million investment in MP Materials, emphasizing the growing demand for these resources [7][8] Company Overview - Atlas Lithium is advancing its wholly owned Neves lithium project in Minas Gerais, Brazil, which encompasses approximately 539 square kilometers of lithium mineral rights, making it the largest lithium exploration footprint in Brazil among publicly listed companies [10][12] - The company has a 30.1% ownership stake in Atlas Critical Minerals, providing shareholders with exposure to a broader range of critical minerals [1][12] Project Highlights - The Alto Paranaíba rare earths and titanium project is located in a proven rare earths region and is divided into three exploration blocks for operational efficiency [2] - Initial results from the graphite project in Minas Gerais indicate strong metallurgical performance, with conventional flotation techniques yielding graphite concentrates of up to 96.6% total graphite carbon [6][9]

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section outlines forward-looking statements, cautioning that actual results may differ materially due to various risks - The report contains forward-looking statements covered by safe harbor provisions, subject to known and unknown risks and uncertainties that may cause actual results to differ materially[11](index=11&type=chunk) - Factors that could cause future results to differ include unprofitable exploration efforts, market fluctuations, government regulations, competition, loss of key personnel, weather phenomena, litigation, and general economic conditions[12](index=12&type=chunk) - Forward-looking statements are based on current expectations and projections and speak only as of the report date; the company does not plan to publicly update or revise them unless required by law[13](index=13&type=chunk)[14](index=14&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) Part I presents unaudited condensed consolidated financial statements, management's discussion, market risk, and controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited condensed consolidated financial statements and comprehensive notes on accounting policies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202025%20%28Unaudited%29%20and%20December%2031%2C%202024) Balance sheets show increased total assets and equity from December 2024 to March 2025, driven by property and capital | Metric | March 31, 2025 (Unaudited) (USD) | December 31, 2024 (USD) | | :--------------------------------- | :------------------------- | :------------------ | | Cash and cash equivalents | $14,000,031 | $15,537,476 | | Total current assets | $14,677,236 | $16,242,384 | | Property and equipment, net | $43,170,531 | $38,855,071 | | Total assets | $60,799,545 | $57,854,608 | | Total current liabilities | $6,299,473 | $5,688,604 | | Total liabilities | $36,509,843 | $35,843,367 | | Total stockholders' equity | $24,289,702 | $22,011,241 | - Total assets increased by approximately **$2.9 million**, from **$57.85 million** at December 31, 2024, to **$60.80 million** at March 31, 2025[17](index=17&type=chunk) - Total stockholders' equity increased by approximately **$2.28 million**, from **$22.01 million** at December 31, 2024, to **$24.29 million** at March 31, 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Net loss decreased to $10.2 million in Q1 2025, primarily due to lower stock-based compensation and capitalized exploration costs | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenue | $25,175 | $186,707 | | Gross profit / (loss) | $(62,675) | $84,640 | | Total operating expenses | $9,760,882 | $13,266,460 | | Loss from operations | $(9,823,557) | $(13,181,820) | | Net loss | $(10,213,587) | $(13,184,196) | | Net loss attributable to Atlas Lithium Corporation | $(9,016,957) | $(12,963,467) | | Basic and diluted loss per share | $(0.55) | $(1.02) | - Net loss decreased by approximately **$2.97 million (22.6%)** from **$13.18 million** in Q1 2024 to **$10.21 million** in Q1 2025[19](index=19&type=chunk) - Basic and diluted loss per share improved from **$(1.02)** in Q1 2024 to **$(0.55)** in Q1 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Stockholders' equity increased from $22.01 million to $24.29 million, driven by common stock issuance and stock-based compensation | Metric | December 31, 2024 (USD) | March 31, 2025 (USD) | | :--------------------------------- | :------------------ | :------------------------- | | Common Stock Value | $16,015 | $17,499 | | Additional Paid-in Capital | $166,110,916 | $176,665,848 | | Accumulated Deficit | $(144,410,340) | $(152,953,340) | | Total Stockholders' Equity | $22,011,241 | $24,289,702 | - Issuance of common stock in connection with private offerings contributed **$7,118,449** to equity[23](index=23&type=chunk) - Stock-based compensation added **$4,911,330** to equity[23](index=23&type=chunk) - Net loss for the period reduced equity by **$10,213,587**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024%20%28Unaudited%29) Net cash used in operating and investing activities decreased, while financing activities provided significant cash, leading to a $1.54 million net cash decrease | Cash Flow Activity | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used by operating activities | $(4,403,577) | $(6,103,264) | | Net cash used in investing activities | $(4,212,590) | $(6,055,535) | | Net cash provided by financing activities| $7,078,012 | $0 | | Net decrease in cash and cash equivalents| $(1,537,445) | $(12,020,462) | | Cash and cash equivalents at period end | $14,000,031 | $17,529,465 | - Net cash used in operating activities decreased by **$1.7 million**, mainly due to the capitalization of exploration expenses[26](index=26&type=chunk)[120](index=120&type=chunk) - Net cash provided by financing activities increased significantly to **$7.08 million** in Q1 2025, primarily from the sale of common stock (**$6.65 million**) and subsidiary common stock to noncontrolling interests (**$0.46 million**)[26](index=26&type=chunk)[125](index=125&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) These notes detail the company's organization, accounting policies, and composition of financial statement items [NOTE 1 – Organization, Business and Summary of Significant Accounting Policies](index=9&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%2C%20BUSINESS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Atlas Lithium, incorporated in Nevada, focuses on mineral exploration in Brazil, with consolidated financial statements under U.S. GAAP - Atlas Lithium Corporation was incorporated on December 15, 2011, and shifted its focus to mineral exploration in Brazil on December 18, 2012[29](index=29&type=chunk) - The company's condensed consolidated financial statements include its 100% owned subsidiaries (Atlas Lithium Limited, Athena Mineral Resources Corporation, Brazil Mineral Resources Corporation) and its **30.51%** equity interest in Atlas Critical Minerals Corporation, which is consolidated as a variable interest entity (VIE)[30](index=30&type=chunk) [NOTE 2 – Composition of Certain Financial Statement Items](index=10&type=section&id=NOTE%202%20%E2%80%93%20COMPOSITION%20OF%20CERTAIN%20FINANCIAL%20STATEMENT%20ITEMS) This note details the composition and changes in key financial statement items, including inventories, property, leases, and derivatives [Inventories](index=10&type=section&id=Inventories) Inventories decreased to $417,776 at March 31, 2025, primarily due to a $65,556 write-down of quartzite blocks | Inventory Component | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------ | :------------- | :---------------- | | Inventory in transit| $321,085 | $321,085 | | Quartzite blocks and slabs | $162,247 | $171,727 | | Loss on inventories revaluation | $(65,556) | $- | | Total | $417,776 | $492,812 | - An inventory write-down of **$65,556** was recorded as of March 31, 2025, to adjust quartzite blocks to their estimated net realizable value, impacting cost of revenue[38](index=38&type=chunk) [Property and Equipment](index=10&type=section&id=Property%20and%20Equipment) Net property and equipment increased to $43.17 million at March 31, 2025, due to Prepaid Assets (CIP) and capitalized exploration costs | Component | March 31, 2025 Net Book Value (USD) | December 31, 2024 Net Book Value (USD) | | :-------------------- | :------------------------------ | :------------------------------- | | Prepaid Assets (CIP) | $26,542,827 | $23,449,896 | | Mining rights | $6,655,771 | $6,558,161 | | Exploration costs | $5,532,338 | $4,496,976 | | Total fixed assets | $43,170,531 | $38,855,071 | - Exploration costs are capitalized if they relate to a commercially mineable ore body and provide a probable future benefit[39](index=39&type=chunk) [Intangible Assets](index=10&type=section&id=Intangible%20Assets) Intangible assets, primarily software costs, decreased slightly to $377,145 at March 31, 2025 | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--------------- | :------------- | :---------------- | | Intangible assets, net | $377,145 | $399,773 | [Accounts Payable and Accrued Expenses](index=10&type=section&id=Accounts%20Payable%20and%20Accrued%20Expenses) Accounts payable and accrued expenses increased to $5.83 million at March 31, 2025, due to higher trade payables and payroll charges | Component | March 31, 2025 (USD) | December 31, 2024 (USD) | | :---------------------- | :------------- | :---------------- | | Trade payables | $5,560,549 | $4,779,903 | | Payroll and social charges | $209,224 | $157,191 | | Taxes payable | $59,867 | $64,571 | | Total | $5,829,640 | $5,001,664 | [Leases](index=11&type=section&id=Leases) Operating lease liabilities increased to $481,367 at March 31, 2025, with a current portion of $153,649 | Metric | Amount (USD) | | :--------------------------------- | :----- | | Lease liabilities at Dec 31, 2024 | $447,218 | | Increase/Decrease | $32,150 | | Unwinding of lease liabilities | $7,571 | | Lease payments | $(40,438) | | Foreign exchange | $34,866 | | Lease liabilities at Mar 31, 2025 | $481,367 | | Current portion | $153,649 | | Non-current portion | $327,718 | - The lease liabilities are discounted using an incremental borrowing rate of **6.5%**[45](index=45&type=chunk) [Convertible Debt](index=12&type=section&id=Convertible%20Debt) Total convertible debt increased to $10.08 million at March 31, 2025, with a 6.5% annual interest rate and $28.225/share conversion price | Lender | March 31, 2025 (USD) | December 31, 2024 (USD) | | :-------------------------- | :------------- | :---------------- | | Due to Nanyang Investment Management Pte Ltd | $6,045,402 | $5,933,866 | | Due to Jaeger Investments Pty Ltd | $2,015,158 | $1,977,979 | | Due to Modha Reena Bhasker | $1,007,567 | $988,978 | | Due to Clipper Group Limited| $1,007,566 | $988,978 | | Total convertible debt | $10,075,693 | $9,889,801 | | Current portion | $242,192 | $81,918 | | Non-current portion | $9,833,501 | $9,807,883 | - The convertible notes were issued on November 7, 2023, for **$10 million**, with a **6.5%** annual interest rate and a conversion price of **$28.225 per share**[48](index=48&type=chunk)[50](index=50&type=chunk) - The company recorded **$160,274** in interest expense and **$25,619** in accretion expense for the three months ended March 31, 2025[48](index=48&type=chunk) [Derivative Liabilities](index=12&type=section&id=Derivative%20Liabilities) Derivative liabilities significantly decreased to $65,030 at March 31, 2025, due to fair value changes and NDF reclassification | Derivative Type | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------------------------ | :------------- | :---------------- | | Derivative assets - Non-Deliverable Forward | $66,785 | $- | | Derivative liability – conversion feature | $24,677 | $66,310 | | Derivative liability – restricted stock awards | $40,353 | $121,512 | | Derivative liability - Non-Deliverable Forward | $- | $274,816 | | Total derivative liabilities | $65,030 | $462,638 | - The fair value of the embedded conversion feature on convertible debt decreased from **$66,310** to **$24,677**, resulting in a **$41,633 gain** recognized in Q1 2025[53](index=53&type=chunk)[54](index=54&type=chunk) - The company uses Non-Deliverable Forward (NDF) contracts to mitigate foreign currency exchange-rate fluctuations, with unrealized gains of **$76,395** recognized in Other Comprehensive Income (OCI) for the period ended March 31, 2025[59](index=59&type=chunk)[60](index=60&type=chunk)[66](index=66&type=chunk) [NOTE 3 – Deferred Other Income](index=14&type=section&id=NOTE%203%20%E2%80%93%20DEFERRED%20OTHER%20INCOME) Atlas Brazil sold a 3% gross revenue royalty interest for $20 million, with an option for an additional $5 million royalty purchase - On May 2, 2023, Atlas Brazil sold a **3%** gross revenue royalty interest from 19 mineral rights in Brazil to Lithium Royalty Corp. for **$20,000,000** in cash[64](index=64&type=chunk) - The Royalty Agreement includes an option for LRC to purchase additional royalty interests for **$5,000,000**[67](index=67&type=chunk) [NOTE 4 – Other Noncurrent Liabilities](index=15&type=section&id=NOTE%204%20%E2%80%93%20OTHER%20NONCURRENT%20LIABILITIES) Other noncurrent liabilities, including tax programs and contingencies, increased to $49,151 at March 31, 2025 | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------ | :------------- | :---------------- | | Other noncurrent liabilities | $49,151 | $33,962 | [NOTE 5 – Stockholders' Equity](index=16&type=section&id=NOTE%205%20%E2%80%93%20STOCKHOLDERS%27%20EQUITY) This note details stockholders' equity components, including authorized stock, preferred stock, common stock transactions, options, and RSUs [Authorized Stock](index=16&type=section&id=Authorized%20Stock) The company had 200,000,000 authorized common shares; 1,169,751 shares were sold via ATM in Q1 2025 for $6.6 million net - The company has **200,000,000** authorized shares of common stock (**$0.001** par value)[70](index=70&type=chunk) - During the three months ended March 31, 2025, **1,169,751** shares were sold under the ATM Agreement for **$6.6 million**, net of commissions and fees[72](index=72&type=chunk) [Series A Preferred Stock](index=16&type=section&id=Series%20A%20Preferred%20Stock) One Series A Preferred Stock share, held by the CEO, grants 51% of total votes, voting with common stockholders - One share of Series A Preferred Stock is outstanding, held by the CEO and Chairman, Mr. Fogassa[73](index=73&type=chunk) - The Series A Preferred Stock grants its holder **51%** of the total votes on all matters, voting as a single class with common stockholders[73](index=73&type=chunk) [Common Stock Options](index=17&type=section&id=Common%20Stock%20Options) In Q1 2025, 439,996 common stock options were issued, resulting in $804,047 stock-based compensation expense | Metric | March 31, 2025 | March 31, 2024 | | :------------------------------------ | :------------- | :------------- | | Options Issued | 439,996 | 429,996 | | Grant Date Fair Value of Issued Options (USD) | $3,066,772 | $13,447,502 | | Stock-based compensation expense (USD) | $804,047 | $3,315,822 | - The weighted-average exercise price for outstanding and vested options at March 31, 2025, was **$0.0243**, significantly lower than **$1.6879** at March 31, 2024[79](index=79&type=chunk) [Common Stock Purchase Warrants](index=18&type=section&id=Common%20Stock%20Purchase%20Warrants) In Q1 2025, 75,000 common stock purchase warrants were issued, resulting in $200,981 stock-based compensation expense | Metric | March 31, 2025 | | :------------------------------------ | :------------- | | Warrants Issued | 75,000 | | Total Grant Date Fair Value of Warrants (USD) | $200,981 | | Stock-based compensation expense (USD) | $200,981 | - No common stock purchase warrants were issued during the three months ended March 31, 2024[83](index=83&type=chunk) [Restricted Stock Units ("RSUs")](index=19&type=section&id=Restricted%20Stock%20Units%20%28%22RSUs%22%29) In Q1 2025, 310,911 RSUs were granted, 319,911 vested, and 5,000 forfeited, with $2,896,938 in stock-based compensation expense | RSU Activity | Number of RSUs (Q1 2025) | | :----------------------- | :----------------------- | | Outstanding at Jan 1, 2025 | 572,476 | | Granted | 310,911 | | Vested | (319,911) | | Forfeited | (5,000) | | Outstanding at Mar 31, 2025 | 558,476 | - Stock-based compensation expense from RSU activity for Q1 2025 was **$2,896,938**, compared to **$2,891,703** in Q1 2024[88](index=88&type=chunk) [Other stock incentives measured at fair value through profit or loss](index=19&type=section&id=Other%20stock%20incentives%20measured%20at%20fair%20value%20through%20profit%20or%20loss) As of March 31, 2025, a $40,353 derivative liability existed for stock incentives tied to market capitalization milestones - Outstanding obligations to issue common stock based on market capitalization milestones are classified as liability-classified awards and measured at fair value through profit or loss[89](index=89&type=chunk) | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :------------------------------------ | :------------- | :---------------- | | Derivative liability | $40,353 | $513,757 | | Shares obligated if conditions met | 160,145 | 127,535 | [NOTE 6 – Commitments and Contingencies](index=20&type=section&id=NOTE%206%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) As of March 31, 2025, Atlas Lithium had $1,138,911 in contractual obligations for lithium plant construction, due within one year | Obligation | Total (USD in thousands) | Less than 1 Year (USD in thousands) | | :-------------------------------- | :------------------- | :------------------------------ | | Lithium processing plant construction | $1,138,911 | $1,138,911 | | Total | $1,138,911 | $1,138,911 | - The majority of payments for lithium processing plant construction obligations are due upon delivery[92](index=92&type=chunk) [NOTE 7 – Related Party Transactions](index=20&type=section&id=NOTE%207%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) This note details related party transactions, including a convertible note with Jaeger Investments and a terminated technical services agreement - The company terminated its Technical Services Agreement with RTEK International DMCC on March 20, 2025, due to alleged non-performance and breach of exclusivity, disagreeing with RTEK's prior termination notice[98](index=98&type=chunk)[99](index=99&type=chunk) - Jaeger Investments Pty Ltd., a related party, holds **$2,015,158** in convertible debt as of March 31, 2025[102](index=102&type=chunk)[103](index=103&type=chunk) - Atlas Critical Minerals issued **1,333,469** shares of its common stock to Mr. Fogassa and **144,125** shares to other officers/directors in Q1 2025 as stock-based compensation[104](index=104&type=chunk)[105](index=105&type=chunk) [NOTE 8 – Risks and Uncertainties](index=22&type=section&id=NOTE%208%20%E2%80%93%20RISKS%20AND%20UNCERTAINTIES) The company faces currency risk from its Brazil operations, affecting intercompany transactions and foreign subsidiary financial results - Operating primarily in Brazil exposes the company to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S. dollars[108](index=108&type=chunk)[109](index=109&type=chunk) - Changes in exchange rates affect the foreign currency translation adjustment account in shareholders' equity[109](index=109&type=chunk) [NOTE 9 – Subsequent Events](index=22&type=section&id=NOTE%209%20%E2%80%93%20SUBSEQUENT%20EVENTS) No material subsequent events were identified between March 31, 2025, and the issuance date of these financial statements - No material subsequent events were identified between March 31, 2025, and the issuance date of the condensed consolidated financial statements[110](index=110&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides an overview of Atlas Lithium's business, operational progress, Q1 2025 financial results, liquidity, and currency risks [Overview](index=23&type=section&id=Overview) Atlas Lithium is a mineral exploration and development company focused on hard-rock lithium projects in Brazil - Atlas Lithium is a mineral exploration and development company focused on hard-rock lithium projects in Minas Gerais, Brazil, aiming to produce spodumene concentrate[113](index=113&type=chunk) - The company holds **53,942 hectares** for lithium across **95** mineral rights in Brazil, claiming the largest portfolio among publicly listed companies[114](index=114&type=chunk) - Atlas Lithium owns approximately **30.51%** of Atlas Critical Minerals Corporation, an exploration stage company focused on other critical minerals, whose results are consolidated[115](index=115&type=chunk) [Operational Update](index=23&type=section&id=Operational%20Update) In Q1 2025, Atlas Lithium made significant operational progress, including hiring a Project Manager, shipping its DMS plant, and advancing its DFS - In January 2025, a Project Manager Officer and VP of Engineering with extensive mining industry experience was hired[116](index=116&type=chunk) - The modular DMS lithium processing plant, designed to produce up to **150,000 tons** of lithium concentrate per annum, was shipped from South Africa and arrived in Brazil in early March 2025[117](index=117&type=chunk) - Significant progress was made on the Definitive Feasibility Study (DFS) in partnership with SGS Canada Inc. and on permitting additional mining pit areas. All permits for the Neves Project's DMS plant assembly, mining, processing, and sales are secured[118](index=118&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net loss decreased to $10.2 million in Q1 2025, primarily due to lower stock-based compensation and capitalized exploration costs | Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(10.2) million | $(13.2) million | | General and administrative expenses | Increased by $1.7 million | | | Stock-based compensation expense | Decreased by $2.0 million | | | Exploration cost expenses | $0 (capitalized) | $3.2 million | - The decrease in net loss was mainly driven by reduced stock-based compensation and the capitalization of exploration expenses, which were expensed in the prior year[119](index=119&type=chunk)[121](index=121&type=chunk) - General and administrative expenses increased due to team expansion and higher marketing/investor relations service costs[121](index=121&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Atlas Lithium had $14.0 million in cash and $8.3 million in working capital, with financing activities providing $7.1 million | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--------------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $14.0 million | $15.5 million | | Working capital | $8.3 million | $10.6 million | - Net cash used in operating activities decreased by **$1.7 million** to **$4.4 million** in Q1 2025, mainly due to capitalizing exploration expenses[120](index=120&type=chunk) - Net cash provided by financing activities was **$7.1 million** in Q1 2025, primarily from **$6.6 million** in common stock sales via the ATM Agreement and **$464,000** from subsidiary common stock sales[122](index=122&type=chunk)[125](index=125&type=chunk) [Currency Risk](index=25&type=section&id=Currency%20Risk) The company's Brazil operations expose it to currency risks, affecting intercompany transactions and foreign subsidiary financial results - Operations primarily in Brazil expose the company to currency risks from intercompany receivables/payables and the translation of foreign subsidiary financial results into U.S. dollars[123](index=123&type=chunk)[124](index=124&type=chunk) - Changes in exchange rates affect the foreign currency translation adjustment account in shareholders' equity[124](index=124&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements are prepared under U.S. GAAP, requiring management to make estimates and assumptions affecting reported financial figures - Financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that impact reported financial figures[126](index=126&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not required for smaller reporting companies, so no specific disclosures are provided - The information for this item is not required for smaller reporting companies[127](index=127&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management evaluated disclosure controls and procedures as effective, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=26&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025 - Disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of March 31, 2025[128](index=128&type=chunk) [Changes in Internal Control over Financial Reporting](index=26&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025 - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025[129](index=129&type=chunk) [Limitations of the Effectiveness of Controls and Procedures](index=26&type=section&id=Limitations%20of%20the%20Effectiveness%20of%20Controls%20and%20Procedures) Controls and procedures provide reasonable assurance due to inherent resource constraints and management judgment - Controls and procedures, no matter how well designed, can only provide reasonable assurance due to resource constraints and the application of management judgment[130](index=130&type=chunk) [PART II - OTHER INFORMATION](index=27&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Part II covers legal proceedings, risk factors, unregistered equity sales, defaults, mine safety, and exhibits [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company reported no material legal proceedings - There are no material legal proceedings to report[133](index=133&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20RISK%20FACTORS) Investing in the company's common stock involves high risk, including potential adverse effects from tariffs and trade policy changes - Investing in the company's common stock involves a high degree of risk, and investors should carefully consider all risk factors[134](index=134&type=chunk) - Tariffs, trade restrictions, and changes in international trade policy, such as those potentially arising from Section 232 analysis on critical mineral imports, could adversely affect the company's business, financial condition, and results of operations[135](index=135&type=chunk) - An escalating global trade war or retaliatory trade measures could decrease demand for the company's minerals and impact the markets in which it operates[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q1 2025, the company issued 40,000 common stock options and 75,000 common stock purchase warrants, exempt from registration - On January 1, 2025, **40,000** common stock options were issued to directors as compensation[139](index=139&type=chunk) - On January 29, 2025, **75,000** common stock purchase warrants were issued to certain investors in connection with equity financing activities[139](index=139&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - There were no defaults upon senior securities[136](index=136&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) The company reported no mine safety disclosures - There were no mine safety disclosures[137](index=137&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20OTHER%20INFORMATION) The company reported no other information - There is no other information to report[138](index=138&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including CEO and CFO certifications and Inline XBRL documents | Exhibit Number | Description | | :------------- | :-------------------------------------------------------------------------------- | | 31.1* | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 31.2* | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 32.1** | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | 101.INS* | Inline XBRL Instance Document | | 104* | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=29&type=section&id=Signatures) The report was signed by Marc Fogassa, CEO and Chairman, and Tiago Miranda, CFO, on May 9, 2025 - The report was signed by Marc Fogassa, Chief Executive Officer and Chairman of the Board, and Tiago Miranda, Chief Financial Officer, on May 9, 2025[145](index=145&type=chunk)

Project Development - Atlas Lithium Corporation is focused on the development of its hard-rock lithium project in Minas Gerais, Brazil, known as "Lithium Valley," which includes 85 mineral rights totaling approximately 468 km[17][20]. - The company aims to produce lithium concentrate at its Neves Project, with a processing plant designed to produce 150,000 tons of lithium concentrate per annum, which was successfully shipped to Brazil in March 2025[25][26]. - The Minas Gerais Lithium Project has confirmed the presence of hard-rock lithium-bearing pegmatites, with individual pegmatite bodies ranging from several meters to over 50 meters thick[23][28]. - The government of Minas Gerais granted priority status for environmental permitting of the Neves Project, expediting the process and resulting in the grant of the operating license on October 26, 2024[40]. - The company has identified six promising exploration targets within the Neves Project through geological mapping and soil geochemistry work[29][33]. Financial Performance - The company has an accumulated deficit of approximately $144.4 million as of December 31, 2024, and expects to continue incurring losses unless projects enter commercial production[60]. - The company has generated limited revenues from operations and has historically funded operations through equity and debt issuances, not cash flows from operations[58]. - The company has incurred losses in each of the past three years and has negative cash flow from operating activities[59]. - For the year ended December 31, 2023, costs associated with exploration activities were significantly higher than in prior years, contributing to a substantial increase in net loss compared to the previous year[79]. - The ability to access capital markets is critical; any inability to do so may limit the company's operations and growth[76]. Capital and Financing - On March 28, 2024, the company entered into a Securities Purchase Agreement with Mitsui & Co., Ltd., agreeing to sell 1,871,250 shares for aggregate net proceeds of $29.6 million[61]. - The company issued 2,062,973 shares of common stock during the year ended December 31, 2024, to raise capital[77]. - The company intends to finance operations through the issuance of equity and/or debt securities until profitability is achieved, which may dilute existing stockholders' ownership[118]. Operational Risks - The company faces significant risks related to mining, exploration, and compliance with government regulations, which could impact its financial condition[57]. - The company relies on third-party contractors for drilling and construction, and any inability to hire and retain these contractors could adversely affect operations[54]. - The company faces challenges in hiring and retaining third-party contractors for drilling and construction, which may impair its business plan and exploration activities[91]. - The company relies on third-party consultants for technical requirements, which poses operational and financial risks if they fail to meet obligations[86]. - The mining operations are subject to significant regulatory risks, including extensive environmental laws that could increase compliance costs and impact future operations[94]. Market Conditions - In 2023, lithium prices decreased by approximately 75% to 85% from their high in January 2023, with battery-grade lithium carbonate prices dropping from around CNY ¥100,000 per ton to approximately CNY ¥75,000 per ton by the end of the year, representing a decrease of about 25%[107]. - The company’s future revenues and profitability are highly dependent on the demand for lithium-based products and the development of new applications for lithium batteries[106]. - The development of non-lithium battery technologies could adversely affect the company’s prospects and future revenues[105]. - The company’s operations in Brazil are heavily regulated, and any significant changes in mining legislation could alter business prospects[109]. - The perception of Brazil's political environment and environmental policies may impact investor interest and the company's ability to sell its minerals[110]. Governance and Management - The Chief Executive Officer, Marc Fogassa, holds more than 50% of the voting securities, concentrating control and potentially limiting other stockholders' influence on corporate decisions[119]. - The company is classified as a "controlled company" under Nasdaq rules, which may make its common stock less attractive to some investors[121]. - The costs of operating as a public company are substantial, with management required to devote significant time to compliance with various regulations[123]. - A material weakness in internal control over financial reporting was identified as of December 31, 2023, which could adversely affect the company's financial reporting accuracy[126]. External Factors - Geopolitical tensions, including the war in Ukraine and conflicts in the Middle East, may disrupt global markets and adversely impact the company's operations and financial condition[130]. - The company may face adverse effects from tariffs and changes in international trade policy, particularly regarding exports from Brazil[128]. - A resurgence of the COVID-19 pandemic could lead to restrictions that may negatively impact the company's business operations[129]. - The company faces significant risks including competitive pricing pressures, ability to obtain working capital financing, and potential changes in management[120]. - The company’s common stock price has been volatile, and significant sales of shares by stockholders could cause the stock price to fall[57].

Core Viewpoint - Atlas Lithium Corporation (ATLX) shows significant upside potential with a mean price target of $27.67, indicating a 246.3% increase from its current price of $7.99 [1] Price Target Analysis - The average price target consists of three estimates ranging from a low of $19 to a high of $45, with a standard deviation of $15.01, suggesting a variability in analyst predictions [2] - The lowest estimate indicates a potential increase of 137.8%, while the highest suggests a 463.2% upside [2] Analyst Sentiment - There is strong agreement among analysts regarding ATLX's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2.5%, with one estimate moving higher and no negative revisions [10] Zacks Rank - ATLX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for upside in the near term [11]

Revenue and Financial Performance - Revenue for the three months ended September 30, 2024, was $169,549, compared to $0 for the same period in 2023, indicating a significant increase[9]. - Gross margin for the nine months ended September 30, 2024, was $249,722, compared to $0 for the same period in 2023, reflecting improved operational efficiency[9]. - Net loss attributable to Atlas Lithium Corporation stockholders for the three months ended September 30, 2024, was $(9,028,788), compared to $(11,279,475) for the same period in 2023, indicating a reduction in losses[9]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.60), an improvement from $(1.24) in the same period of 2023[9]. - Comprehensive loss for the three months ended September 30, 2024, was $(10,380,627), compared to $(11,985,577) for the same period in 2023, indicating a narrowing of overall losses[9]. - The company reported a net loss of $(9,717,647) for the three months ended September 30, 2024, compared to $(11,738,353) for the same period in 2023, highlighting improved financial performance[9]. - The net loss for the nine months ended September 30, 2024, was $32,855,151, compared to a net loss of $25,600,602 for the same period in 2023, representing an increase of approximately 28%[18]. Operating Expenses and Cost Management - Total operating expenses for the three months ended September 30, 2024, were $10,334,853, a decrease from $11,442,622 in the same period of 2023, showing cost management efforts[9]. - The company plans to continue focusing on cost management and operational efficiency to improve future financial performance[9]. Shareholder Equity and Capital Raising - The total stockholders' equity as of September 30, 2024, was $27,762,191, an increase from $4,772,094 as of September 30, 2023, indicating growth in shareholder value[10]. - Weighted-average number of common shares outstanding increased to 14,964,697 for the three months ended September 30, 2024, compared to 9,068,801 for the same period in 2023, reflecting increased capital raising activities[9]. - Net proceeds from the sale of common stock amounted to $30,600,698 for the nine months ended September 30, 2024, compared to $20,522,531 in 2023, showing a 49% increase[18]. Cash Flow and Investment Activities - Cash flows from operating activities resulted in a net cash used of $14,212,264 for the nine months ended September 30, 2024, compared to a net cash provided of $2,564,979 in 2023[18]. - The company reported net cash used in investing activities of $23,559,858 for the nine months ended September 30, 2024, compared to $771,977 in 2023, reflecting a substantial increase in investment activities[18]. - The company had cash and cash equivalents of $22,056,560 at the end of the period on September 30, 2024, down from $29,549,927 at the beginning of the period[18]. Assets and Liabilities - Total fixed assets as of September 30, 2024, amounted to $36,566,270, with a net book value of $36,563,788 after accumulated depreciation of $2,482[26]. - Accounts payable and accrued liabilities rose to $5,763,095 as of September 30, 2024, compared to $3,588,074 as of December 31, 2023[28]. - Convertible debt increased to $10,027,449 as of September 30, 2024, up from $9,770,724 at the end of 2023, reflecting ongoing financing activities[32]. Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2024, was $18,084,197, significantly higher than $7,680,742 for the same period in 2023, indicating a 135% increase[18]. - The company recorded stock-based compensation expenses of $3,389,507 and $10,094,837 for the three and nine months ended September 30, 2024, compared to $nil and $446,726 for the same periods in 2023[64]. Exploration and Development Activities - The company is focused on mineral exploration in Brazil, with significant investments in capital assets and exploration costs[20]. - The company acquired one mineral right totaling 45.77 hectares in Brazil's "Lithium Valley" for a total payment of $1,150,000, which includes $400,000 in cash and $750,000 in restricted shares[27]. - The discovery of spodumene-rich pegmatites in the Salinas Project area was announced in early October 2024, with further geological studies planned[117]. Agreements and Future Plans - The company agreed to sell 60,000 dry metric tonnes of lithium concentrate per year to each of its buyers for five years, with each buyer pre-paying $20.0 million[90]. - The gross proceeds from the registered direct offering in April 2024 were $30.0 million, intended for general corporate purposes and product development[92]. - The Neves Project received operational permits on October 28, 2024, allowing the company to assemble and operate its lithium processing plant[105]. Risks and Challenges - The company reported an accumulated deficit of $102,822,123 as of December 31, 2023, indicating ongoing financial challenges[15]. - The company is exposed to currency risks due to its operations primarily in Brazil, which may affect intercompany receivables and payables[103].

Revenue and Growth - Total revenue for the three months ended June 30, 2024, was $182,789, compared to $0 for the same period in 2023, indicating a significant growth[15]. - The company reported a net loss of $12,396,925 for the six months ended June 30, 2024, compared to a net loss of $13,862,249 for the same period in 2023, indicating a slight improvement[26]. - Net loss for the six months ended June 30, 2024, was $25,581,120, compared to a net loss of $13,862,249 during the same period in 2023, representing an increase of approximately 84%[148]. Financial Performance - Gross margin for the three months ended June 30, 2024, was $91,002, with a cost of revenue of $91,787, reflecting operational efficiency[15]. - Basic and diluted loss per share for the three months ended June 30, 2024, was $(0.85), compared to $(1.01) for the same period in 2023[15]. - Total operating expenses for the three months ended June 30, 2024, were $12,080,782, an increase from $9,523,792 in the same period of 2023[15]. - Stock-based compensation for the six months ended June 30, 2024, was $3,580,587, compared to $3,580,566 for the same period in 2023[26]. - Stock-based compensation for the six months ended June 30, 2024, was $11,812,684, significantly higher than $3,981,154 in the prior year[32]. - The company incurred an increase of approximately $3,500,000 in general and administrative expenses due to expanded operations and higher costs related to employee compensation and third-party services[149]. - Stock-based compensation expense rose by approximately $7.8 million compared to the prior period, reflecting bonuses for eligible management team members[149]. Assets and Liabilities - Total current assets as of June 30, 2024, were $32,578,539, an increase from $29,714,656 as of December 31, 2023[12]. - Total assets as of June 30, 2024, were $60,861,962, compared to $43,682,659 as of December 31, 2023, indicating strong asset growth[12]. - Total liabilities as of June 30, 2024, were $33,904,234, a slight decrease from $34,368,415 as of December 31, 2023[12]. - Total stockholders' equity as of June 30, 2024, was $26,957,727, compared to $9,314,244 as of December 31, 2023, showing improved financial health[13]. - Accumulated deficit as of June 30, 2024, was $(126,242,962), up from $(101,664,519) as of December 31, 2023, reflecting ongoing investment in growth[13]. Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $13,735,837 for the six months ended June 30, 2024, compared to a net cash provided of $11,783,491 in 2023[32]. - Net cash used in investing activities totaled $14,333,495 for the six months ended June 30, 2024, representing an increase of 435% from $2,679,812 in the prior year, primarily due to payments for the acquisition of lithium processing plant components[150]. - Net cash provided by financing activities was $30,140,298 for the six months ended June 30, 2024, an increase of 182% from $10,675,118 in the same period in 2023, largely due to a private placement that raised $30 million[150]. - The company raised $30 million in gross proceeds from a registered direct offering of 1,871,250 shares at a price of $16.0321 per share, intended for general corporate purposes[121]. - The company raised $10,000,024 through the issuance of convertible promissory notes on November 7, 2023, with a maturity date of 36 months and an interest rate of 6.5% per annum[54]. Stock and Equity - The issuance of common stock in connection with sales made under private offerings amounted to 1,871,250 shares, raising $30,449,449[28]. - The balance of common stock increased to 14,824,692 shares as of June 30, 2024, from 10,033,334 shares as of June 30, 2023[25]. - The authorized number of shares of common stock was decreased to 200,000,000 shares to improve financing perceptions[75]. - The Company approved a reverse stock split at a ratio of 1-for-750, effective retroactively as of December 20, 2022[72]. Operational Developments - The geotechnical drilling program in the Neves Project reached approximately 80% completion as of June 30, 2024, with full completion expected by the end of August 2024[145]. - Metallurgical studies for both Anitta 2 and Anitta 3 deposits within the Neves Project were successfully completed[145]. - The modular dense media separation (DMS) lithium processing plant's core components underwent trial assembly and are being packaged for shipment, marking a novel approach for lithium processing in Brazil[145]. - The company entered into Offtake and Sales Agreements to sell 60,000 dry metric tonnes of lithium concentrate per year for five years, with each buyer prepaying $20 million[120]. Miscellaneous - The company reported a foreign currency translation loss of $506,446 for the six months ended June 30, 2024[25]. - The company recognized a gain of $124,228 on changes in fair value of financial instruments for the three months ended June 30, 2024[60]. - The company reported an effect of exchange rates on cash and cash equivalents amounting to $646,837 for the six months ended June 30, 2024[32].

Financial Performance - Total revenue for the three months ended March 31, 2024, was $186,707, compared to $0 for the same period in 2023[12]. - Gross loss for the same period was $84,639, with total operating expenses amounting to $13,266,460, up from $4,479,368 in the prior year[12]. - Net loss attributable to Atlas Lithium Corporation stockholders was $12,963,467, compared to a net loss of $3,965,938 in the same quarter of 2023[12]. - Basic and diluted loss per share for the current quarter was $(1.29), compared to $(0.60) in the prior year[12]. - For the three months ended March 31, 2024, Atlas Lithium Corporation reported a net loss of $13,184,196, compared to a net loss of $4,465,353 for the same period in 2023, representing an increase in losses of approximately 195%[25]. Assets and Liabilities - Total current assets decreased to $17,707,027 as of March 31, 2024, from $29,714,656 as of December 31, 2023[10]. - Total assets decreased to $37,698,653 as of March 31, 2024, from $43,682,659 as of December 31, 2023[10]. - Total liabilities increased to $35,098,243 as of March 31, 2024, compared to $34,368,415 as of December 31, 2023[10]. - Cash and cash equivalents decreased to $17,529,465 as of March 31, 2024, from $29,549,927 as of December 31, 2023[10]. - The total stockholders' equity as of March 31, 2024, was $2,600,410, a decrease from $9,314,244 as of December 31, 2023, indicating a decline of approximately 72%[20]. - The company’s accumulated deficit increased to $(114,627,986) as of March 31, 2024, compared to $(101,664,519) at the end of 2023, marking an increase of approximately 13%[20]. Cash Flow and Expenses - Cash used in operating activities for Q1 2024 was $(6,103,264), compared to $(3,663,428) in Q1 2023, indicating a worsening cash flow situation[25]. - The company recorded stock-based compensation and services amounting to $6,840,202 for Q1 2024, a significant increase from $1,128,845 in Q1 2023[25]. - The company experienced a $5 million increase in stock-based compensation expense compared to the prior period, attributed to new management team members[162]. - Net cash used in investing activities for Q1 2024 was $6,055,535, representing an increase of 375% compared to $1,275,972 in Q1 2023[164]. Capital Expenditures and Investments - The company invested $5,672,571 in capital assets during Q1 2024, compared to $5,790 in the same period of 2023, reflecting a substantial increase in capital expenditures[25]. - Total capital expenditures for the initial production and ramp-up are estimated at $49.5 million, which includes costs for modular DMS plants and tailings management[151]. Stock and Equity - The Company amended its articles of incorporation to decrease the number of authorized common stock shares to 200,000,000 to improve financing perceptions[65]. - As of March 31, 2024, the Company had 200,000,000 authorized shares of common stock with a par value of $0.001 per share[66]. - During the three months ended March 31, 2023, the Company sold 675,000 shares of common stock at a public offering price of $6.00 per share, generating gross proceeds of $4,657,500[71][73]. - The Company issued 640,000 restricted shares of common stock at a purchase price of $6.25 per share, totaling gross proceeds of $4,000,000 in a private placement[74]. - The Company recorded $3,315,822 in stock-based compensation expense from common stock options for the three months ended March 31, 2024, compared to $121,925 for the same period in 2023[81]. Exploration and Development - Atlas Lithium is focused on developing a modular plant with a target production of 150,000 tons of lithium concentrate per annum, with plans to double capacity to 300,000 tons in Phase II[128]. - The ongoing drilling campaign at the Neves Project has identified four confirmed pegmatite bodies with spodumene mineralization[134]. - A systematic exploration campaign has been initiated, involving geological mapping and sampling, with 4,599 soil samples taken to highlight lithium anomalies[142]. - The Company has engaged SGS Canada Inc. to produce a Maiden Resource Report for the Neves Project, ensuring compliance with Regulation S-K 1300[137]. - The appointment of Brian Talbot as COO is expected to enhance the development of the lithium mine and processing plant[138]. Agreements and Commitments - The company entered into Offtake and Sales Agreements to sell 60,000 dry metric tonnes of lithium concentrate per year for five years, with each buyer pre-paying $20.0 million[110]. - An agreement was reached with Mitsui for the sale of 1,871,250 shares for $30,000,000, representing a 10% premium to the 5-day VWAP, along with an offtake agreement for 15,000 tons of lithium concentrate from Phase 1 and 60,000 tons per year for five years from Phase 2[161]. - The company had total commitments of $5,281,365 related to lithium processing plant construction and land acquisition as of March 31, 2024[104].

Project Development - Atlas Lithium Corporation is focused on developing its hard-rock lithium project in Minas Gerais, Brazil, with plans to produce 150,000 tons of lithium concentrate per annum in Phase I and double the capacity to 300,000 tons in Phase II[12][13]. - The company holds approximately 53,942 hectares for lithium across 95 mineral rights, with 85 in exploration stage and 2 in pre-mining concession stage[13]. - As of December 31, 2023, the company has drilled a total of 72,899 meters at the Neves Project, confirming the presence of multiple pegmatite bodies with spodumene mineralization[24]. - Recent drilling results at the Neves Project include lithium grades ranging from 1.00% Li2O to as high as 5.23% Li2O, with significant intersections reported in multiple target areas[25][26]. - The Neves Project has been granted priority status for environmental permitting by the government of Minas Gerais, potentially expediting the licensing process by several months[38]. - The Minas Gerais Lithium Project is located in a well-established mining jurisdiction with access to necessary infrastructure, including hydroelectric power and a skilled labor force[19]. Financial Performance - The company has an accumulated deficit of approximately $101.7 million as of December 31, 2023, and expects to continue incurring losses until projects enter commercial production[56]. - The company has generated limited revenues from operations and has a history of losses over the past three years, with negative cash flow from operating activities[55]. - In 2023, the company entered into a royalty agreement with Lithium Royalty Corp. and signed Offtake and Sales Agreements to sell 60,000 dry metric tons of lithium concentrate per year for five years[57]. - The company anticipates higher exploration costs compared to previous years, contributing to a substantial increase in net loss for the year ended December 31, 2023[71]. - The company’s future performance is difficult to evaluate due to its limited operating history and reliance on equity and debt issuances for financing[54]. - The company incurs significant costs associated with operating as a public entity, which may affect financial performance[118]. Capital and Funding - The company relies on access to capital and financial markets to fund ongoing operations and execute its business plan[48]. - The company relies on access to capital markets for funding ongoing operations and future growth, with no assurance that additional funding will be available on satisfactory terms[68]. - The company issued 2,707,417 shares of common stock during the year ended December 31, 2023, to raise capital, which may dilute existing shareholders' rights[69]. - Future equity offerings may lead to significant dilution of existing shareholders' ownership[116]. Regulatory and Compliance Risks - The company faces significant government regulations and compliance costs related to environmental laws and mining operations[49]. - Regulatory compliance costs are expected to increase significantly as the company transitions from exploration to mining operations[85]. - The permitting process for mining operations is complex and costly, with potential delays adversely affecting future revenues and profitability[86]. - Compliance with environmental regulations imposes substantial costs and burdens, potentially leading to delays in obtaining necessary permits[89]. - The company faces potential sanctions or investigations by regulatory authorities if it fails to maintain effective internal controls[121]. Market and Economic Factors - The price of spodumene concentrate fluctuated from approximately $8,000 per ton in Q4 2022 to about $850 in Q1 2024, indicating significant volatility in mineral prices[93]. - Lithium prices decreased by approximately 75% to 85% from their high in January 2023 to the end of the year, impacting future revenues and profitability[98]. - The development of non-lithium battery technologies poses a risk to the company's future revenues, as these alternatives may reduce reliance on lithium compounds[94]. - The company's lithium business is heavily dependent on the growth in demand for electric vehicles, which is tied to global decarbonization efforts[96]. - Changes in public policies regarding environmental and energy regulations could materially affect the company's business prospects[99]. - The political environment in Brazil, including scrutiny over environmental policies, may impact investor interest and the company's operations[101]. Internal Controls and Governance - The company reported that its internal control over financial reporting may not meet the standards required by Section 404 of the Sarbanes-Oxley Act, which could adversely affect its business and share price[120]. - Management concluded that as of December 31, 2023, the internal control over financial reporting was effective at a reasonable assurance level[218]. - There were no changes in internal control over financial reporting in 2023 that materially affected its effectiveness[219]. - The company acknowledged limitations in the effectiveness of its internal controls, including the potential for undetected errors or fraud[219]. - The evaluation of disclosure controls and procedures indicated that they were effective at a reasonable assurance level as of December 31, 2023[216]. - The company emphasized the complexity and resource constraints involved in maintaining effective internal controls[121]. - Management's report on internal controls is not subject to attestation by the registered public accounting firm due to the company being classified as a smaller reporting company[219]. - The effectiveness of internal controls is subject to the exercise of judgment and assumptions regarding future events[219]. - The company is required to apply judgment in evaluating the benefits of possible controls relative to their costs[216]. Human Resources - The company has 76 full-time employees and maintains a good relationship with them, with no employees represented by labor unions[44]. - The company is dependent on key personnel, particularly the CEO, and the loss of such individuals could materially affect business prospects[75]. - The implementation of a new ERP system may divert management's attention and impact operational efficiency[82].

Lithium Project Development - Atlas Lithium Corporation is focused on developing its hard-rock lithium project in Minas Gerais, Brazil, with plans to produce 300,000 tons of lithium concentrate annually [89]. - The company holds approximately 75,542 acres (306 km²) for lithium across 61 mineral rights, making it the largest portfolio of battery mineral exploration properties in Brazil [90]. - The ongoing drilling campaign at the Neves Project has resulted in a total of 58,497 meters drilled as of September 30, 2023, with a drilling pace of approximately 7,500 meters per month [96]. - Significant lithium grades have been reported, including 2.80% Li2O over 9.87m and 2.12% Li2O over 7.0m in various drill holes [98][99]. - The Maiden Resource Report for the Neves Project is expected to be completed in Q1 2024, which will provide an updated mineral resource estimate [95]. - The Minas Gerais Lithium Project consists of 54 mineral rights over 59,275 acres (240 km²) in a region known for lithium-bearing pegmatites [91]. - The company has ceased alluvial gold and diamond exploration since 2018, focusing on lithium and other battery minerals [92]. - The metallurgical report indicated a lithium concentrate grading of 6.04% Li2O with a lithium recovery of 70%, exceeding the target of 6.0% Li2O [102]. - The company is progressing towards a Preliminary Economic Assessment of the Neves Project following the metallurgical report [103]. Financial Performance - Net loss attributable to Atlas Lithium Corporation stockholders for Q3 2023 totaled $11,279,475, compared to a net loss of $1,028,192 in Q3 2022, reflecting a significant increase in losses [109]. - For the nine months ended September 30, 2023, net loss was $24,372,062, up from $2,430,698 in the same period in 2022, primarily due to higher general and administrative expenses and increased compensation costs [110]. - Cash and cash equivalents as of September 30, 2023, were $22,857,357, with net working capital of $20,280,909 [111]. - Net cash provided by operating activities for the nine months ended September 30, 2023, was $3,314,979, a 1,383% increase compared to net cash used of $258,293 in the same period in 2022 [111]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $1,521,977, a reduction of 41% compared to $2,573,826 in the same period in 2022 [112]. - Net cash provided by financing activities for the nine months ended September 30, 2023, totaled $20,822,531, an increase of $17,633,795 or 553% compared to $3,188,736 in the same period of 2022 [113]. - The company completed a public offering on January 12, 2023, raising aggregate gross proceeds of $4,657,500 from the issuance of 776,250 shares of common stock [115]. - The company raised an additional $4 million and $10 million in gross proceeds from the sale of common stock on January 30, 2023, and July 18, 2023, respectively [115]. - A cash payment of $20,000,000 was received on May 2, 2023, in connection with a Royalty Purchase Agreement [115]. Future Plans and Capital Requirements - The company is in the initial planning stages for a processing facility, but there is no assurance of necessary capital resources for development [89]. - The company signed a Memorandum of Understanding with Mitsui & Co., Ltd. for potential funding of up to $65 million for future lithium concentrate production [105]. - The planned plant is expected to have an output capacity of 150,000 tons of lithium concentrate per year [105]. - Future capital requirements will depend on growth rates, mineral exploration potential, and the ability to attract talent, with potential needs for additional equity or debt financing [117]. Financial Structure and Risks - The company has historically incurred net operating losses and has not yet received material revenues from product sales [114]. - The company currently has no off-balance sheet arrangements, indicating a straightforward financial structure [118]. - The carrying amount of financial instruments approximates fair value, which could impact financial position if estimates are incorrect [119]. - Recent accounting pronouncements are not expected to have a material impact on the company [120].