[Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2023, Electra's total assets increased to **C$198.8 million** from **C$187.5 million** at year-end 2022, driven by growth in property, plant, and equipment related to refinery construction. Total liabilities rose significantly to **C$92.3 million** from **C$61.0 million**, primarily due to the issuance of new long-term convertible notes. Consequently, total shareholders' equity decreased to **C$106.5 million** from **C$126.5 million**, reflecting the net loss for the period Financial Position Summary (in thousands of CAD) | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$198,766** | **$187,524** | | Cash and cash equivalents | $11,229 | $7,952 | | Property, plant and equipment | $93,190 | $82,288 | | **Total Liabilities** | **$92,295** | **$61,015** | | Long-term convertible notes payable | $56,699 | $- | | **Total Shareholders' Equity** | **$106,471** | **$126,509** | - The company's financial position reflects ongoing investment in its refinery, financed through a significant increase in convertible debt, which has also led to a reduction in shareholder equity due to operating losses[2](index=2&type=chunk) [Condensed Interim Consolidated Statements of Income (Loss) and Other Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Income%20(Loss)%20and%20Other%20Comprehensive%20Income%20(Loss)) For the three months ended March 31, 2023, the company reported a net loss of **C$21.8 million**, a stark contrast to the **C$2.3 million** net income in the same period of 2022. The loss was primarily driven by a **C$16.3 million** finance cost related to convertible notes and increased operating expenses, particularly in salaries and benefits. This resulted in a basic loss per share of **C$0.61**, compared to an income of **C$0.08** per share in Q1 2022 Q1 Income (Loss) Summary (in thousands of CAD, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Operating loss | $(3,808) | $(2,474) | | Finance costs - convertible notes | $(16,319) | $3,980 | | **Net income (loss)** | **$(21,803)** | **$2,330** | | **Basic income (loss) per share** | **$(0.61)** | **$0.08** | | Diluted loss per share | $(0.61) | $(0.04) | - The significant swing from net income to a substantial net loss year-over-year is mainly attributable to non-cash finance costs associated with the company's convertible note financing arrangement[4](index=4&type=chunk) [Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2023, cash and cash equivalents increased by **C$3.3 million** to **C$11.2 million**. Cash used in operating activities was **C$1.0 million**, and **C$12.2 million** was used in investing activities, primarily for additions to property, plant, and equipment. These outflows were offset by **C$16.5 million** in net cash provided by financing activities, which included proceeds from a new convertible notes issuance, partially used to repay previous notes Q1 Cash Flow Summary (in thousands of CAD) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Cash Flows used in operating activities | $(965) | $(3,504) | | Cash Flows used in investing activities | $(12,247) | $(5,086) | | Cash Flows provided by financing activities | $16,486 | $1,620 | | **Changes in cash during the period** | **$3,274** | **$(6,970)** | - The company is heavily reliant on financing activities to fund its capital-intensive refinery construction, as shown by the **C$12.2 million** in PP&E additions and the **C$16.5 million** net cash from financing[5](index=5&type=chunk) [Condensed Interim Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased from **C$126.5 million** at the end of 2022 to **C$106.5 million** as of March 31, 2023. The primary driver for this **C$20.0 million** reduction was the net loss of **C$21.8 million** for the period. This was slightly offset by share-based payment expenses and shares issued upon the conversion of convertible notes Changes in Shareholders' Equity (in thousands of CAD) | Description | Amount | | :--- | :--- | | Balance – December 31, 2022 | $126,509 | | Net loss for the period | $(21,803) | | Share based payment expense | $218 | | Directors fees paid in DSUs | $885 | | Shares issued for Convertible Notes Conversion | $662 | | **Balance – March 31, 2023** | **$106,471** | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Nature of Operations](index=6&type=section&id=1.%20Nature%20of%20Operations) Electra Battery Materials Corporation is focused on building a North American integrated battery materials complex for the electric vehicle supply chain, including constructing a hydrometallurgical refinery. The financial statements are prepared on a going concern basis, but the company acknowledges a material uncertainty. It currently lacks sufficient financial resources to complete the refinery's construction and commissioning, requiring additional financing in 2023 and 2024 to continue operations - The company's core business is producing battery materials (cobalt, nickel, recycled materials) for the EV supply chain[7](index=7&type=chunk)[9](index=9&type=chunk) - A material uncertainty exists regarding the company's ability to continue as a going concern. It needs to raise significant additional capital to complete its refinery project and fund operations[11](index=11&type=chunk)[12](index=12&type=chunk) - Cash requirements for the refinery expansion are now estimated to be significantly higher than the previous estimate of **C$100-105 million**[11](index=11&type=chunk) [Note 2: Significant Accounting Policies, Estimates, and Basis of Preparation](index=7&type=section&id=2.%20Significant%20Accounting%20Policies,%20Estimates,%20and%20Basis%20of%20Preparation) The condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), specifically IAS 34, Interim Financial Reporting. The accounting policies are consistent with the most recent annual statements, with the exception of new policies and valuation estimates related to the Convertible Note Arrangement that closed in February 2023. The valuation of these notes and related warrants involves significant estimation - Financial statements adhere to IFRS and IAS 34 standards[14](index=14&type=chunk) - New accounting policies and significant estimates were introduced for the Convertible Note Arrangement that closed on February 13, 2023[14](index=14&type=chunk)[18](index=18&type=chunk) [Note 4: Property, Plant and Equipment and Capital Long-Term Prepayments](index=9&type=section&id=4.%20Property,%20Plant%20and%20Equipment%20and%20Capital%20Long-Term%20Prepayments) The net book value of Property, Plant, and Equipment (PP&E) increased to **C$93.2 million** from **C$82.3 million** at year-end 2022. This increase is primarily due to **C$10.2 million** in additions to construction in progress for the refinery. During Q1 2023, the company capitalized **C$9.0 million** in development costs and **C$2.0 million** in borrowing costs related to the refinery project. Capital long-term prepayments for refinery equipment decreased to **C$2.4 million** PP&E Net Book Value (in thousands of CAD) | Date | Net Book Value | | :--- | :--- | | Dec 31, 2022 | $82,288 | | Mar 31, 2023 | $93,190 | - In Q1 2023, capitalized costs for the refinery project included **C$9,023** in development costs and **C$1,989** in borrowing costs[25](index=25&type=chunk) - Most of the company's PP&E assets relate to the refinery and are pledged as security for the convertible notes arrangement[24](index=24&type=chunk) [Note 10: Convertible Note Arrangement](index=13&type=section&id=10.%20Convertible%20Note%20Arrangement) On February 13, 2023, the company completed a major refinancing, issuing **C$68.0 million** (**US$51.0 million**) of new **8.99%** senior secured notes due 2028. Proceeds were used to repurchase and cancel the existing **US$36 million** notes due 2026. This transaction was treated as an extinguishment of the old debt and recognition of new debt, resulting in a loss of **C$19.9 million**. The new financing package also included **10.8 million** warrants and a royalty agreement. The company must maintain a minimum liquidity of **US$2.0 million** under the new terms - Issued **C$68.0M** (**US$51.0M**) of **8.99%** senior secured notes due Feb 2028, replacing the previous **6.95%** notes due 2026[40](index=40&type=chunk) - The refinancing resulted in a **C$19.9 million** loss on extinguishment of the 2026 notes and recognition of the 2028 notes[43](index=43&type=chunk)[44](index=44&type=chunk) - The new notes are secured by substantially all of the company's assets and require maintaining a minimum liquidity balance of **US$2.0 million**[49](index=49&type=chunk) Finance Costs - Convertible Notes (in thousands of CAD) | Description | Q1 2023 | | :--- | :--- | | Loss on extinguishment of 2026 Notes | $(19,944) | | Gain (loss) on financial derivative liability - 2026 Notes | $(5,076) | | Fair value gain on new convertible notes & warrants | $8,701 | | **Total Finance Costs** | **$(16,319)** | [Note 12: Share Based Payments](index=16&type=section&id=12.%20Share%20Based%20Payments) The company manages a long-term incentive plan including stock options, RSUs, DSUs, and PSUs. In Q1 2023, it granted **366,319** stock options and **286,848** RSUs. The total number of warrants outstanding increased significantly to **13.3 million** from **3.5 million** at year-end, primarily due to the issuance of **10.8 million** warrants in conjunction with the February 2023 convertible note financing - Granted **366,319** stock options to employees with an exercise price of **$2.40** per share[56](index=56&type=chunk) - Issued **10,796,054** warrants in conjunction with the 2028 Notes offering, with a five-year term and an exercise price of **US$2.48**[41](index=41&type=chunk)[61](index=61&type=chunk) Warrants Outstanding | Date | Number of Warrants | | :--- | :--- | | Dec 31, 2022 | 3,464,177 | | Mar 31, 2023 | 13,279,204 | [Note 15: Fair Value Measurements](index=22&type=section&id=15.%20Fair%20Value%20Measurements) The company categorizes its financial instruments measured at fair value into a three-level hierarchy. Significant liabilities, including convertible notes payable (**C$54.4M**) and associated warrants (**C$11.0M**), are classified as Level 3. Their valuation relies on unobservable inputs such as equity volatility (**56%**) and credit spread (**30.1%**), making their fair value sensitive to changes in these assumptions - Convertible notes payable and warrants are classified as Level 3 fair value measurements due to reliance on significant unobservable inputs[69](index=69&type=chunk)[70](index=70&type=chunk) - Key unobservable inputs for valuing the convertible notes are equity volatility (**56%**) and credit spread (**30.1%**). A **10%** change in volatility could impact fair value by approximately **C$2.7-2.8 million**[72](index=72&type=chunk)[73](index=73&type=chunk) - Key unobservable input for valuing the warrants is equity volatility (**56%**). A **10%** change in volatility could impact fair value by approximately **C$1.5 million**[74](index=74&type=chunk)[75](index=75&type=chunk) [Note 16: Commitments](index=25&type=section&id=16.%20Commitments) As of March 31, 2023, the company has total commitments of **C$111.7 million**. The largest portion is **C$98.7 million** related to convertible notes payments, assuming they remain outstanding until maturity in 2028. Other significant commitments include **C$4.1 million** for refinery expansion purchases and **C$5.0 million** for government loan repayments Total Commitments as of March 31, 2023 (in thousands of CAD) | Commitment Type | Total Amount | | :--- | :--- | | Purchase commitments | $4,108 | | Convertible notes payments | $98,690 | | Government loan payments | $4,970 | | Royalty payments | $3,958 | | **Total** | **$111,726** | [Note 17: Segmented Information](index=26&type=section&id=17.%20Segmented%20Information) The company reports its results in two segments: Refinery and Corporate & Other. For Q1 2023, the Refinery segment incurred an operating loss of **C$1.3 million**, while the Corporate & Other segment had an operating loss of **C$2.5 million**. The majority of the company's assets (**C$103.2M**) and liabilities (**C$77.9M**) are held within the Corporate & Other segment, which includes exploration assets and corporate financing Segmented Operating Loss for Q1 2023 (in thousands of CAD) | Segment | Operating Loss | | :--- | :--- | | Refinery | $(1,273) | | Corporate & Other | $(2,535) | | **Total** | **$(3,808)** | Segmented Assets and Liabilities as of March 31, 2023 (in thousands of CAD) | Segment | Total Assets | Total Liabilities | | :--- | :--- | :--- | | Refinery | $95,551 | $14,379 | | Corporate & Other | $103,215 | $77,916 | | **Total** | **$198,766** | **$92,295** |

Electra Battery Materials Corporation (NASDAQ:ELBM) Q4 2022 Earnings Conference Call April 5, 2023 10:00 AM ET Company Participants Joe Racanelli - Vice President, Investor Relations Trent Mell - Chief Executive Officer Craig Cunningham - Chief Financial Officer Mark Trevisiol - Vice President, Project Development Conference Call Participants Heiko Ihle - H.C. Wainwright Kate Nakagawa - Cantor Fitzgerald Gordon Lawson - Paradigm Capital Operator Thank you for standing by. This is the conference operator. We ...

Exhibit 99.1 Electra Reports Q4 and Year-End 2022 Results and Provides Update on Cobalt Refinery Project and Black Mass Recycling Trial TORONTO--(BUSINESS WIRE)--April 4, 2023--Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) ("Electra" or the "Company") today reported its financial results for the quarter and year ended December 31, 2022, and provided an update on the commissioning of its cobalt refinery and its black mass recycling trial. All amounts are in Canadian currency unless otherw ...

Electra Battery Materials Corporation (NASDAQ:ELBM) Q3 2022 Earnings Conference Call November 10, 2022 9:00 AM ET Company Participants Joe Racanelli - Vice President, Investor Relations Trent Mell - Chief Executive Officer Craig Cunningham - Chief Financial Officer Mark Trevisiol - Vice President, Project Development Conference Call Participants Jake Sekelsky - Alliance Global Partners Operator Thank you for standing by. This is the conference operator. Welcome to the Electra Battery Materials Corporation Q ...

Exhibit 99.1 ELECTRA BATTERY MATERIALS CORPORATION (FORMERLY FIRST COBALT CORP.) CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021 (EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS) ELECTRA BATTERY MATERIALS CORPORATION CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 (UNAUDITED) (expressed in thousands of Canadian dollars) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | -- ...

Electra Battery Materials Corporation (NASDAQ:ELBM) Q2 2022 Earnings Conference Call August 12, 2022 10:00 AM ET Company Participants Joe Racanelli - VP, IR Trent Mell - CEO Mark Trevisiol - VP, Project Development Craig Cunningham - CFO Dan Pace - Principal Geologist Conference Call Participants Matthew O'Keefe - Cantor Fitzgerald Jake Sekelsky - Alliance Global Partners Gordon Lawson - Paradigm Capital Operator Thank you for standing by. This is the conference operator. Welcome to the Electra Battery Mate ...