Standard Lithium(SLI) - 2024 Q1 - Quarterly Report

Financial Performance - The company reported a net loss of $4,829,000 for the three months ended September 30, 2024, compared to a net loss of$ 7,257,000 for the same period in 2023, indicating an improvement of approximately 33%[10] - The total comprehensive loss for the quarter was $4,811,000, compared to$ 6,517,000 in the prior year, indicating a decrease of approximately 26%[10] - Net loss for the three months ended September 30, 2024, was $4,829,000, a decrease of 33.4% compared to a net loss of$ 7,257,000 in the same period of 2023[14] - Total compensation to key management for the three months ended September 30, 2024, was $2,030, a decrease from$ 2,343 in the same period of 2023[61] Assets and Liabilities - Total assets as of September 30, 2024, were $278,598,000, a decrease from$ 287,291,000 as of June 30, 2024, representing a decline of approximately 3%[6] - The company’s total liabilities decreased to $33,340,000 from$ 38,910,000, a reduction of approximately 14%[6] - As of September 30, 2024, the company reported working capital of $24,657,000, down from$ 28,919,000 as of June 30, 2024, indicating a decrease of approximately 14.5%[80] - The company had $28,900,000 of unrestricted cash on hand as of September 30, 2024[83] Cash Flow - Cash and cash equivalents decreased to$ 28,906,000 from $38,667,000 in the previous quarter, reflecting a decline of about 25%[4] - Cash used in operating activities increased to$ 7,581,000 in Q3 2024 from $4,809,000 in Q3 2023, representing a 57.8% increase[14] - Total cash used in investing activities was$ 2,081,000 in Q3 2024, significantly lower than $12,468,000 in Q3 2023, indicating a reduction of 83.3%[14] - Cash and cash equivalents at the end of the period were$ 28,906,000, compared to $27,381,000 at the end of Q3 2023, showing a 5.6% increase[14] Shareholder Equity - The weighted average number of common shares outstanding increased to 184,205,111 from 172,785,164, representing an increase of approximately 7%[9] - Share capital increased to$ 228,086,000 from $227,292,000, reflecting a growth of about 0.35%[12] - As of September 30, 2024, the company had no outstanding warrants, down from 3,462,502 warrants as of September 30, 2023[51] - The weighted average fair value of options granted during the three months ended September 30, 2024, was$ 0.85 per option, compared to $1.92 per option in the same period of 2023[53] Joint Ventures and Investments - The company has significant investments in joint ventures for lithium brine production facilities, including the South West Arkansas Project and East Texas properties[16] - As of September 30, 2024, the company's investment in joint ventures totaled$ 146,442,000, down from $146,865,000 as of June 30, 2024, reflecting a loss of$ 423,000 during the quarter[38] - The company's share of net assets in joint ventures was $86,190,000 as of September 30, 2024, compared to$ 94,574,000 for SWA Lithium and $51,868,000 for Texas Lithium[38] - The company reported a fair value gain on financial assets of$ 1,489,000, which was not present in the previous year’s results[10] Expenses - General and administrative expenses were $2,811,000, down from$ 3,097,000 in the previous quarter, a reduction of about 9%[10] - The company reported total costs for the Demonstration Plant operations of $1,039,000 for the three months ended September 30, 2024, a decrease from$ 2,538,000 in the same period of 2023[45] - The company reported a share-based compensation expense of $894,000 in Q3 2024, down 56.3% from$ 2,043,000 in Q3 2023[14] Strategic Developments - The company entered into a strategic partnership with Equinor, receiving an initial cash payment of $30,000,000 and a commitment for an additional$ 130,000,000 investment for a 45% interest in SWA Lithium and Texas Lithium[84] - The company announced a license agreement with Koch Technology Solutions LLC to deploy Li-ProTM Lithium Selective Sorption technology at SWA Lithium's commercial plant for the SWA Phase 1 Project[91] Currency and Risk Management - Standard Lithium changed its presentation currency from CAD to USD effective July 1, 2024, to align with its significant assets and liabilities denominated in USD[25] - A 10% fluctuation in the Canadian dollar relative to the US dollar would result in a change of approximately $431,000 to$ 588,000 in the company's comprehensive loss for the year to date[81] - The company does not use derivative instruments to mitigate foreign exchange risk, exposing it to potential fluctuations in value due to currency movements[81] - The company is currently in the exploration and development phase, with no exposure to commodity price risk affecting its financial instruments[86]