Aqua Metals(US:AQMS)2025-11-12 21:08Business Operations - The company did not engage in commercial operations in 2024 or 2025, focusing instead on developing its Li AquaRefining battery recycling technology[137] - During the nine months ended September 30, 2025, the company did not earn any revenue, maintaining a focus on the pilot facility and recycling capabilities[137] - The company aims to become the first lithium-ion battery recycler in North America, aligning with U.S. government goals to retain strategic battery minerals within the domestic supply chain[119] - The company is actively working with multiple potential supply, off-take, and funding partners to determine the optimal timing and location for its first commercial facility[133] - The company plans to continue pilot operations and advance site selection for its first commercial AquaRefining facility, aiming to build a resilient, low-carbon domestic supply chain for critical minerals[151] Technology and Development - In February 2025, the company announced plans to more than double lithium carbonate output by simplifying the product set, which is expected to reduce capital expenditures and improve operating margins[124] - The company recovered its first metals from lithium batteries in January 2023 using the patent-pending Li AquaRefining process[120] - The company completed equipment installation for its first-of-a-kind lithium battery recycling facility in December 2022, utilizing electricity instead of chemical processes[120] - The company’s AquaRefining technology is designed to produce higher quality products at a lower operating cost compared to traditional recycling methods[116] Financial Performance - The company issued 833,219 shares of common stock for net proceeds of $5,921,000 during the nine months ended September 30, 2025[127] - For the three months ended September 30, 2025, plant operations expenses decreased by $1,041,000, or 64.4%, compared to the same period in 2024, primarily due to workforce reductions[138] - Research and development costs for the three months ended September 30, 2025, decreased by $70,000, or approximately 17.6%, compared to the same period in 2024, mainly due to lower payroll and related costs[139] - General and administrative expenses decreased by $612,000, or approximately 22.3%, for the three months ended September 30, 2025, primarily due to reductions in payroll and professional fees[141] - The company recognized a non-cash impairment and loss on disposal of property, plant, and equipment of $25,000 for the three months ended September 30, 2025, and $9,037,000 for the nine months ended September 30, 2025[140] - As of September 30, 2025, the company had cash and cash equivalents of approximately $3,586,000 and current liabilities of $3,459,000, resulting in a working capital of approximately $508,000[149] - The company closed a registered direct offering on October 16, 2025, raising approximately $12,000,000 in net proceeds from the sale of common stock and warrants[149] - Net cash used in operating activities for the nine months ended September 30, 2025, was $7,648,000, a decrease from $11,637,000 in the same period of 2024[153] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $4,971,000, primarily from the sale of a building and equipment[154] Management Outlook - Management believes that the company's capital resources remain insufficient to sustain operations for at least the next twelve months, indicating substantial doubt regarding its ability to continue as a going concern[150]