Aqua Metals(US:AQMS)2025-05-08 20:06Q1 2025 Business & Operational Highlights Aqua Metals advanced its technology, optimized its strategic site by selling property, and announced a CFO transition in Q1 2025 Product & Technology Advancements Aqua Metals has significantly advanced its technology platform by producing initial samples of nickel carbonate and mixed hydroxide precipitate (MHP) to meet customer specifications. The company also achieved a breakthrough in recycling lithium iron phosphate (LFP) batteries, developing a process that can mix LFP with NMC input to double lithium carbonate output, thereby enhancing the economic model - Produced initial samples of nickel carbonate and mixed hydroxide precipitate (MHP), aligning with downstream partner requirements and opening new revenue streams8 - Completed a bench-scale demonstration for lithium recovery from LFP batteries. The process can take 50% NMC and 50% LFP input to effectively double the lithium carbonate output8 - Continued to refine the high-purity lithium carbonate production process to meet rigorous customer specifications8 Strategic Site Optimization In response to low lithium prices and cautious capital markets, Aqua Metals has entered into a contract to sell its Sierra ARC property. This strategic move is designed to retire all debt, generate significant cash proceeds, and reduce monthly holding costs by approximately $100,000. The company is now exploring more cost-efficient co-location opportunities for future development - The company has entered into a contract to sell the current Sierra ARC property to align capital deployment with the current market environment4 - This sale will retire all debt, produce significant cash proceeds, and reduce holding costs by approximately $100,000 per month4 - Aqua Metals is actively exploring co-location opportunities with partners to find a site with lower CAPEX and OPEX for its first commercial ARC45 Management Transition Aqua Metals announced a planned leadership transition in its finance department. Judd Merrill will step down as CFO on May 16, 2025, and will be succeeded by Eric West, the former Vice President of Finance, effective May 19, 2025. Merrill will continue in a consulting role through August 2025 to ensure a smooth transition - Judd Merrill will transition from his role as CFO on May 16, 20256 - Eric West, formerly the Vice President of Finance, will assume the role of Chief Financial Officer effective May 19, 20256 Q1 2025 Financial Performance Aqua Metals reported an increased net loss of $8.3 million in Q1 2025, primarily due to an impairment expense, with total assets decreasing to $18.1 million Financial Statements Overview For the first quarter of 2025, Aqua Metals reported a net loss of $8.3 million, an increase from the $5.8 million loss in the same period last year, primarily driven by a $5.2 million impairment expense. Total assets decreased to $18.1 million from $26.4 million at the end of 2024, reflecting a reduction in cash and property, plant, and equipment | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | ($8.3 million) | ($5.8 million) | | Basic and Diluted Net Loss per Share | ($1.03) | ($1.05) | | Total Assets (as of Mar 31, 2025) | $18.1 million | N/A | | Total Liabilities (as of Mar 31, 2025) | $8.5 million | N/A | Statement of Operations The company's net loss for Q1 2025 was $8.3 million, compared to a net loss of $5.8 million in Q1 2024. The increase in net loss was primarily due to a significant one-time impairment expense of $5.2 million. Other operating expenses, such as plant operations and G&A, decreased year-over-year. Net loss per share was ($1.03), slightly better than ($1.05) in the prior year's quarter due to a higher number of weighted average shares outstanding | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total operating expense | $8,683 | $5,792 | | Loss from operations | ($8,683) | ($5,792) | | Net loss | ($8,315) | ($5,752) | | Basic and diluted net loss per share | ($1.03) | ($1.05) | - A significant impairment expense of $5.2 million was recorded in Q1 2025, which was not present in Q1 202418 - Operating costs for plant operations decreased significantly from $2.2 million in Q1 2024 to $724 thousand in Q1 202518 Balance Sheet As of March 31, 2025, Aqua Metals' total assets stood at $18.1 million, a significant decrease from $26.4 million at December 31, 2024. This was mainly driven by a reduction in cash and cash equivalents (from $4.1 million to $1.6 million) and a decrease in property, plant, and equipment. Total liabilities also decreased from $10.1 million to $8.5 million over the same period | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,589 | $4,079 | | Total current assets | $2,219 | $4,644 | | Property, plant and equipment, net | $11,109 | $16,473 | | Total assets | $18,065 | $26,365 | | Total current liabilities | $7,164 | $8,182 | | Total liabilities | $8,534 | $10,121 | | Total stockholders' equity | $9,531 | $16,244 |