Financial Data and Key Metrics Changes - The company ended 2025 with cash and cash equivalents of approximately $10.8 million, following a significant capital raise of about $20 million during the year [21][22] - Total operating expenses for 2025 were approximately $23.3 million, slightly down from $23.8 million in 2024, with a notable reduction in general and administrative expenses from $12 million to approximately $10.5 million [23][24] - The net loss for 2025 was approximately $22.6 million, improving from a net loss of approximately $24.6 million in 2024, indicating a positive trend in the company's financial trajectory [25][26] Business Line Data and Key Metrics Changes - The company focused on three primary outputs from its AquaRefining process: battery-grade lithium carbonate, nickel-cobalt mixed hydroxide precipitate (MHP), and iron phosphate, which are expected to enhance commercial viability [6][10] - The successful production of lithium carbonate with fluorine levels under 30 parts per million sets a new benchmark for recycled lithium sources globally [7] Market Data and Key Metrics Changes - The overall economics around refining black mass have improved significantly, with lithium carbonate prices recovering to approximately $20,000 per ton, creating a healthier market backdrop for U.S. players [44] - The company is actively working to diversify its feedstock sources, including end-of-life batteries and gigafactory scrap, to mitigate market volatility [43] Company Strategy and Development Direction - The company aims to build its first commercial AquaRefining facility with a processing range of 10,000-60,000 metric tons of black mass input feedstock annually, allowing for flexibility in scaling [11] - Strategic partnerships, such as those with Lion Energy and American Battery Factory, are intended to enhance the company's position in the domestic battery material production ecosystem [13][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to transition from validation to commercialization, emphasizing the strong policy and geopolitical support for domestic battery material production [20] - The company is focused on maintaining a disciplined approach to capital deployment, ensuring that every dollar spent advances clear strategic and technical milestones [28] Other Important Information - The company has made targeted additions to its board of directors to reflect its transition from technology validation to commercial execution [18] - A foundational patent covering key elements of the lithium battery recycling process has been granted, reinforcing the long-term defensibility of the AquaRefining platform [19] Q&A Session Summary Question: What are the main areas of focus near term for the Lion Energy acquisition? - Management is conducting thorough due diligence across financial, legal, operational, and commercial aspects, identifying synergies between Aqua Metals and Lion Energy [32] Question: Can you provide a site selection update? - The company is actively evaluating two specific potential sites, focusing on feedstock access, logistics, and overall project economics [42] Question: What is the status of the feedstock market? - Currently, most black mass produced in North America is exported due to a lack of domestic refining options, presenting a significant opportunity for the company [43] Question: Can you elaborate on the LFP breakthrough? - The ability to economically recover lithium and iron phosphate from LFP materials positions the company favorably as LFP usage grows in energy storage and EVs [46] Question: How does the ongoing consolidation in the battery recycling industry affect Aqua Metals? - Management views consolidation as a net positive, as it differentiates Aqua Metals' lower-cost, environmentally friendly approach from less resilient models [50][51]

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]