ASP Isotopes(ASPI) - 2025 Q3 - Quarterly Report

Isotope Production and Development - The company commenced commercial production of enriched isotopes at its ASP enrichment facilities in Pretoria, South Africa, with the first commercial batch of enriched C-12 expected to ship in Q4 2025, enriched Si-28 in Q1 2026, and enriched C-14 in the first half of 2026[262] - The company plans to develop additional isotope enrichment plants in South Africa, Iceland, and the United States, focusing on isotopes for pharmaceuticals, semiconductors, and oncology treatments[263] - The company plans to increase research and development expenses significantly in the foreseeable future to support isotope development[309] - The company has a 51% stake in PET Labs, focusing on the production of fluorinated radioisotopes, with a total payment of $2,000,000 for the acquisition[272] - Future isotopes may not achieve commercial success, and substantial additional financing may be needed to support operations and development[350] Financial Activities and Capital Raising - QLE received gross proceeds of $20,550,000 from the issuance of Convertible Promissory Notes in March 2024, with a maturity date of March 7, 2029[278] - In July 2024, the company raised approximately $32.3 million from a public offering of 13,800,000 shares at a price of $2.50 per share[280] - In October 2025, the company issued 17,167,380 shares at $12.25 per share, resulting in net proceeds of approximately $199.7 million[284] - The company expects to finance cash needs through public or private equity or debt financings, with potential collaborations and licenses[352] - The company has incurred net losses and negative cash flows from operations since inception and expects to continue incurring significant losses[344] Acquisitions and Agreements - 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[264] - The acquisition of Renergen Limited will result in Renergen becoming a wholly owned subsidiary, with the company offering 0.09196 shares of its common stock for each Renergen share[295] - The company entered into an Exclusivity Agreement with Renergen Limited, with an exclusivity fee of $10,000,000 paid in April 2025[364] - A Firm Intention Letter was signed to acquire 100% of Renergen's outstanding shares in exchange for the company's shares, pending regulatory approvals[364] - A Loan Agreement was established with Renergen for a total of $30,000,000, with $10,000,000 applied from the exclusivity fee and $20,000,000 to be paid before June 30, 2025[365] Financial Performance - Revenue for the three months ended September 30, 2025, was $4,889,526, a significant increase of $3,801,831 compared to $1,087,695 in 2024, representing a growth of approximately 349%[321] - For the nine months ended September 30, 2025, total revenue was $7,189,476, an increase of $4,239,128 from $2,950,348 in 2024, representing a growth of about 144%[329] - The net loss before allocation to noncontrolling interest for the three months ended September 30, 2025, was $(12,819,973), compared to $(7,363,759) in 2024, indicating a deterioration of $5,456,214[321] - The company reported a total other expense of $(61,526,185) for the nine months ended September 30, 2025, compared to $(4,538,006) in 2024, indicating a significant increase in losses of $56,988,179[331] - Headline loss for the nine months ended September 30, 2025, was $31,640,628, compared to $18,259,619 for the same period in 2024[343] Operating Expenses - Research and development expenses rose to $3,098,507 for the three months ended September 30, 2025, up by $2,064,061 from $1,034,446 in 2024, marking an increase of about 199%[326] - Selling, general and administrative expenses increased to $12,291,610 for the three months ended September 30, 2025, compared to $4,693,158 in 2024, reflecting a rise of $7,598,452 or approximately 162%[326] - Total operating expenses for the nine months ended September 30, 2025, were $36,209,977, an increase of $16,510,213 from $19,699,764 in 2024, reflecting an increase of approximately 84%[329] - Personnel-related costs increased by $8,164,458 primarily due to an increase in headcount, salaries, and related costs[340] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $113.9 million, with no revenue generated from the sale of enriched isotopes[345] - Net cash used in operating activities for the nine months ended September 30, 2025, was $19,928,958, primarily due to a net loss of $96.5 million[354] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $107,484,812, primarily from the issuance of common stock[359] - Net cash used in investing activities for the nine months ended September 30, 2025, was $35,611,979, including $30 million for a note receivable and $5 million for an investment in IsoBio[357] Regulatory and Compliance - The company does not have any off-balance sheet arrangements as defined by SEC regulations[367] - There are no long-term contractual obligations with vendors, as contracts can be terminated after a notice period[366] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[369]