ASP Isotopes(ASPI) - 2025 Q1 - Quarterly Report

Production and Development - The company has commenced commercial production at its C-14, Si-28, and Yb-176 enrichment facilities in Pretoria, South Africa, with expectations to generate commercial product during 2025[183] - The company anticipates shipping the first commercial batches of enriched Carbon-14 in mid-2025 and enriched Silicon-28 during the second quarter of 2025[183] - The company is considering future development of ASP technology for the separation of various isotopes for healthcare and semiconductor markets[184] - A term sheet was signed with TerraPower in October 2024 for funding the construction of a HALEU production facility, with a 10-year purchase agreement for all HALEU produced[185] - The company has entered into a Loan Agreement with TerraPower for a total of $22,000,000 to partially fund the construction of a uranium enrichment facility[200] Financial Performance - Revenue for the three months ended March 31, 2025, was $1,101,605, an increase of 31% compared to $840,354 for the same period in 2024[224] - Research and development expenses surged to $1,529,795 for the three months ended March 31, 2025, up from $215,134 in 2024, reflecting an increase of $1,314,661[229] - Selling, general and administrative expenses rose to $6,749,381 for the three months ended March 31, 2025, compared to $5,878,546 in 2024, marking an increase of $870,835[230] - The net loss before allocation to noncontrolling interest for the three months ended March 31, 2025, was $8,461,432, compared to a loss of $6,964,844 in 2024, indicating a deterioration of $1,496,588[224] - Total operating expenses for the three months ended March 31, 2025, were $8,279,176, an increase of $2,185,496 from $6,093,680 in 2024[225] Cash Flow and Capital Requirements - As of March 31, 2025, the company had cash and cash equivalents of $56.0 million, with expectations of continued net losses and negative cash flows from operations[233] - The company incurred net cash used in operating activities of $3,169,976 for the three months ended March 31, 2025, primarily due to the net loss of $8.5 million[244] - Future capital requirements will depend on the progress and costs of development activities for future isotopes, as well as regulatory review outcomes[237] - The company expects to finance its cash needs through public or private equity or debt financings, but may face challenges in raising additional funds[240] - Net cash used in operating activities was $2,970,469 for the three months ended March 31, 2024, primarily due to a net loss of $7.0 million[245] Investments and Agreements - The company has a 51% ownership stake in PET Labs, with a total payment of $2,000,000 for the shares, of which $500,000 was paid in November 2023[191] - The company entered into an Exclusivity Agreement with Renergen Limited, with an exclusivity fee of $10,000,000 paid in April 2025[254] - A total of $30,000,000 will be provided by the company to Renergen in periodic payments for funding operations, with $10,000,000 already applied from the exclusivity fee[255] Leases and Other Financial Obligations - The company leases its main facility in Pretoria, South Africa, with a base monthly rent payment of approximately $9,000, expiring on December 31, 2030[251] - The company has additional leases in Pretoria, South Africa, including a space with a base monthly rent payment of approximately $18,000 expiring on February 28, 2026[251] - The company executed a promissory note payable for $500,923 in November 2024 to fund its directors and officers' insurance policy[253] - The company did not have any off-balance sheet arrangements during the periods presented[257] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[260]