Aqua Metals(AQMS) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Results and Operational Highlights Aqua Metals made significant operational, financial, and strategic advancements in Q2 2025, progressing AquaRefining™ technology and strengthening its market position Second Quarter and Recent Highlights Aqua Metals achieved significant operational, financial, and strategic progress in the second quarter, advancing its AquaRefining™ technology commercialization Operational Initiatives Aqua Metals achieved significant operational milestones, including producing industry-leading low-fluorine lithium carbonate and over 1 metric ton of high-purity NMC mixed hydroxide cake - Produced Industry-Leading Low-Fluorine Lithium Carbonate: Reduced fluorine content to less than 30 parts per million (ppm), meeting stringent specifications of cathode active material (CAM) producers, with approximately 100 kilograms produced and sampled by strategic counterparties[7] - High-Purity NMC Cake Production: Produced over 1 metric ton of nickel-manganese-cobalt (NMC) mixed hydroxide cake for qualification sampling with potential partners[7] - Expanded Alternative Feedstock Testing: Successfully tested undersea mining nodules and nickel refinery residue as additional potential feedstocks[7] - Initiated Sodium Sulfate Regeneration Trials: Began testing an innovative sodium sulfate regeneration process to support precursor cathode active material (pCAM) producers[7] - Advanced ARC Facility Design: Started design of a scalable AquaRefining™ Commercial (ARC) facility capable of processing 10,000 to 60,000 metric tons per year of black mass[7] - Demonstrated Cost Competitiveness: An internal study showed AquaRefining™ in the U.S. is cost competitive with Chinese hydrometallurgical recycling and operates at approximately half the cost of traditional U.S. hydrometallurgical methods[7] Financial Initiatives The company significantly improved its financial health by generating $4.3 million from asset sales, implementing an equity line of credit, and eliminating all long-term debt - Generated Cash from Non-Core Asset Sales: Completed the $4.3 million sale of the Sierra ARC facility and sold $200,000 in non-core equipment[7] - Strengthened Balance Sheet: Eliminated all long-term debt[7] - Improved Liquidity: Cash and cash equivalents increased from $1.6 million at the start of the quarter to over $1.9 million at quarter-end[7] - Extended Cash Runway: Gains driven by the building sale, implementation of the $10 million equity line of credit (ELOC), and reduced cash burn following the sale[7] Milestone Announcements Key milestones included showcasing AquaRefining™ technology to over 100 stakeholders, receiving a foundational U.S. patent, and completing a CFO transition - Showcased Technology to Industry Leaders: Hosted over 100 stakeholders for live demonstrations at the Company's Innovation Center and Demonstration Plant during NAATBatt's annual meeting[7] - Strengthened Intellectual Property: Received allowance for a foundational U.S. patent protecting the Company's lithium-ion battery recycling process[7] - Enhanced Leadership Team: Completed CFO transition with the appointment of Eric West, formerly VP Finance[7] Strategic Engagements Aqua Metals continues discussions with potential strategic partners, emphasizing collaboration to build domestic battery recycling and CAM production capacity in the U.S - Strategic Engagements: Aqua Metals continues discussions with potential strategic partners[5] - Collaboration Importance: The Company believes collaboration among industry participants is critical as the U.S. builds domestic battery recycling and CAM production capacity[5] - Market Positioning: Achievements position Aqua Metals not just to participate in the emerging U.S. market, but to help define it[8] Corporate Information This section provides essential corporate details, including investor communication channels, company profile, disclosure practices, and contact information Conference Call and Webcast Aqua Metals held a conference call on August 13, 2025, at 4:30 p.m. ET to discuss Q2 2025 results and corporate developments - Conference Call: Held on August 13, 2025, at 4:30 p.m. ET to discuss results and corporate developments[9] - Access: Live conference call accessible via webcast (https://event.webcasts.com/aqms) or investor relations website (https://ir.aquametals.com/), or by dialing 877-407-9708 (toll-free) or 201-689-8259 (international)[9] - Replay: Available by dialing 877-407-9708 (toll-free) or 201-689-8259 (international) using passcode 13754150, and on the investor relations section of the Aqua Metals website[10] About Aqua Metals Aqua Metals, Inc. (NASDAQ: AQMS) is a Nevada-based pioneer in sustainable metals recycling, utilizing its patented AquaRefining™ technology - Company Overview: Aqua Metals, Inc. (NASDAQ: AQMS) is a pioneer in sustainable metals recycling with its patented AquaRefining™ technology[11] - Focus: Commercializing sustainable, non-polluting lithium-ion battery recycling[11] - Mission: Closes the loop on critical minerals for clean energy technologies[11] - Location: Based in Reno, Nevada, with facilities in the Tahoe-Reno Industrial Center[11] Aqua Metals Social Media Aqua Metals uses its investor relations website and various social media platforms as official channels for disclosing material non-public information - Disclosure Channels: Utilizes its investor relations website (https://ir.aquametals.com) and social media accounts (Twitter, Threads, LinkedIn, YouTube) for disclosing material non-public information[12] - Compliance: Intends to continue using these platforms for complying with its disclosure obligations under Regulation FD[12] Safe Harbor Statement This section contains forward-looking statements regarding Aqua Metals' plans, objectives, expectations, and intentions, cautioning readers about known and unknown risks - Forward-Looking Statements: The press release contains forward-looking statements concerning Aqua Metals, Inc.'s plans, objectives, expectations, and intentions[13] - Key Areas: Includes ability to commercialize profitable metal recycling, intent to develop ARC facility, ability to enter successful collaborations, and ability to maintain Nasdaq listing[13] - Risks and Uncertainties: Involve known and unknown risks that could cause actual results to differ materially, such as lack of commercial-scale operation, absence of definitive agreements, funding risks for ARC facility, and risks to Nasdaq listing[13] - Disclaimer: Aqua Metals cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to update or revise such statements, except as required by law[13] Contact Information Provides contact details for investor relations, handled by FNK IR, and media inquiries, handled directly by Aqua Metals - Investor Relations Contact: - Bob Meyers & Rob Fink (FNK IR) - Phone: 646-878-9204 - Email: aqms@fnkir.com[14] - Media Contact: - David Regan (Aqua Metals) - Phone: 415-336-3553 - Email: david.regan@aquametals.com[14] Condensed Consolidated Financial Statements This section presents Aqua Metals' condensed consolidated balance sheets and statements of operations for the second quarter and year-to-date periods of 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, Aqua Metals reported a significant decrease in total assets and liabilities, primarily due to asset sales and debt elimination Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------- | :-------------- | :---------------- | :------------------------ | | Cash and cash equivalents | $1,933 | $4,079 | -$2,146 | | Total current assets | $2,369 | $4,644 | -$2,275 | | Property and equipment, net | $4,984 | $16,473 | -$11,489 | | Total non-current assets | $6,875 | $21,721 | -$14,846 | | Total assets | $9,244 | $26,365 | -$17,121 | | Total current liabilities | $3,633 | $8,182 | -$4,549 | | Notes payable, current portion | $— | $3,230 | -$3,230 | | Total liabilities | $4,126 | $10,121 | -$5,995 | | Total stockholders' equity | $5,118 | $16,244 | -$11,126 | | Accumulated deficit | $(262,855) | $(247,770) | $(15,085) | - Significant decrease in total assets from $26,365 thousand to $9,244 thousand, primarily driven by a reduction in property and equipment, net, and other non-current assets[16] - Total liabilities decreased substantially from $10,121 thousand to $4,126 thousand, reflecting the elimination of notes payable[16] Condensed Consolidated Statements of Operations For Q2 2025, Aqua Metals reported an increased net loss of $(6,770) thousand, primarily due to impairment and loss on disposal of property, plant and equipment Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Plant operations | $776 | $2,373 | $1,501 | $4,582 | | Research and development cost | $295 | $363 | $631 | $951 | | Impairment and loss on disposal of PP&E | $3,765 | $— | $9,012 | $— | | General and administrative expense | $2,195 | $3,426 | $4,571 | $6,421 | | Total operating expense | $7,031 | $6,162 | $15,715 | $11,954 | | Loss from operations | $(7,031) | $(6,162) | $(15,715) | $(11,954) | | Interest expense | $(245) | $(84) | $(647) | $(190) | | Loss on extinguishment of debt | $(825) | $— | $(825) | $— | | Interest and other income | $497 | $99 | $777 | $245 | | Change in fair value of warrant liability | $836 | $— | $1,327 | $— | | Total other income, net | $263 | $15 | $632 | $55 | | Loss before income tax expense | $(6,768) | $(6,147) | $(15,083) | $(11,899) | | Income tax expense | $2 | $3 | $2 | $3 | | Net loss | $(6,770) | $(6,150) | $(15,085) | $(11,902) | | Weighted average shares outstanding | 910,129 | 618,965 | 860,146 | 584,619 | | Basic and diluted net loss per share | $(7.44) | $(9.94) | $(17.54) | $(20.36) | - Q2 2025 Net Loss: $(6,770) thousand, an increase from $(6,150) thousand in Q2 2024[18] - Q2 2025 Basic and Diluted Net Loss Per Share: $(7.44), an improvement from $(9.94) in Q2 2024, despite a higher net loss, due to increased weighted average shares outstanding[18] - Total Operating Expense (Q2 2025): Increased to $7,031 thousand from $6,162 thousand in Q2 2024, primarily due to $3,765 thousand in impairment and loss on disposal of property, plant and equipment[18]