Financial Data and Key Metrics Changes - The company ended the quarter with cash and cash equivalents of approximately $1.9 million, increasing to about $3.2 million as of the call [11] - The net loss for the quarter was approximately $6.8 million, with a basic and diluted net loss per share of negative $7.44 for 2025 compared to negative $9.94 in 2024 [14] - Year-to-date cash used in operating activities was $5.3 million, showing improvement versus the prior year [15] Business Line Data and Key Metrics Changes - The company produced lithium carbonate with fluorine content below 30 parts per million, a best-in-class result for recycled lithium [6] - Over one metric ton of high purity NMC was produced for qualification sampling with potential partners [7] - Plant operations expenses were $800,000, down from $2.4 million a year ago, and general and administrative expenses were $2.2 million, down from $3.4 million in 2024 [13] Market Data and Key Metrics Changes - The company noted that AquaRefining in the US is cost-competitive with Chinese hydrometallurgical recycling, operating at roughly half the cost of traditional US methods [9] - Recent market activity saw lithium carbonate prices in China increase by around 3% due to a major producer shutting down operations, highlighting the thin supply chains [44] Company Strategy and Development Direction - The company is focused on building a fully domestic closed-loop battery material supply chain in the US, emphasizing collaboration among recyclers, CAM producers, and technology innovators [10] - The design of a modular, scalable commercial arc facility is underway, capable of processing between 10,000 to 60,000 metric tons of black mass annually [8] - The company aims to secure supply and offtake partnerships to enable financing for its first commercial ARC facility [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to define the market for battery material recycling in the US, highlighting the importance of sustainability and competitiveness [10] - The management is optimistic about the potential for policy changes that could support domestic recycling efforts, particularly regarding tax incentives for preprocessors [31][33] - The company is encouraged by the recent patent allowance, which supports discussions with potential partners and enables high-margin licensing opportunities [40][41] Other Important Information - The company completed the sale of the Sierra Art facility, generating approximately $4.3 million in cash proceeds, which were used to eliminate debt [11][12] - A one-for-ten reverse stock split was executed to support compliance with Nasdaq listing requirements [12][52] Q&A Session Summary Question: Can you elaborate on the progress on the technology side? - Management highlighted the reduction of fluorine content in lithium carbonate and the flexibility in the flow sheet design to meet various partner needs [22][23] Question: Can you provide insights on the tech showcase with NAT Battery? - The event generated strong engagement and positive feedback from industry leaders, validating the company's sustainable recycling process [25][26][29] Question: How do you view potential incentives or trade policies impacting competitiveness? - Management emphasized the need for policies that encourage domestic preprocessing of black mass to support local recycling infrastructure [31][33] Question: Can you discuss the flexibility in structuring partnerships? - The company has a strong cash position allowing for strategic partnerships, focusing on collaboration rather than a lone strategy [36] Question: Can you elaborate on the patent allowance received? - The patent allowance supports the business model by enabling high-margin licensing and joint ventures with partners [40][41] Question: What are the next steps and milestones to watch for? - The focus is on securing supply and offtake partnerships to finance the first commercial ARC facility, with ongoing discussions about new feedstocks [47][48] Question: Why did Aqua Metals execute the reverse stock split? - The reverse stock split was aimed at regaining compliance with Nasdaq listing requirements, viewed as a strategic asset for the company [52][53] Question: Can you explain the cost comparison study of AquaRefining? - The study showed that AquaRefining is cost-competitive with Chinese methods and operates at about half the cost of traditional US methods, emphasizing sustainability [54][56]