Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million [15] - Net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to reductions in payroll and related costs [17] Business Line Data and Key Metrics Changes - The company achieved key technical milestones, including product line expansion with initial samples of nickel carbonate and mixed hydroxide precipitate [4] - A successful engineering analysis and lab demonstration for lithium recovery from LFP batteries was completed, which could double lithium carbonate output [5][6] - General and administrative expenses decreased by approximately $619,000, or 27.2%, primarily due to payroll reductions [18] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and tighter capital markets [7] - The industry is experiencing a phase of consolidation and increased partnerships as companies navigate challenging market conditions [33][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and adapting its product portfolio to market needs [3][11] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations [7][15] - The company aims to build its first commercial arc while actively engaging with potential supply, offtake, and funding partners [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability [26][34] - There is optimism regarding future government support for domestic supply chains, although clarity on policy and funding is still pending [42][43] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, ensuring continuity and stability during the transition [10][12] - The company is actively engaging with potential partners to test the quality of new materials produced [48] Q&A Session Questions and Answers Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management highlighted that selling the Sierra Arc allows for significant savings and provides meaningful cash runway to develop commercial relationships [26][28] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players as companies seek to navigate the current market dynamics [32][33] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management emphasized that advancements are driven by market responsiveness and optimization to improve plant economics [37][39] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for more clarity on policy and funding in the coming months [42][43]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $1.6 million, with plans to retire all debt through the sale of the Sierra Arc asset, which has a carrying value of approximately $9.3 million net of depreciation [15][16] - The net loss for the three months ended March 31, 2025, was approximately $8.3 million, or a negative $0.03 per share, compared to a net loss of $5.5 million, or a negative $0.05 per share for the same period in 2024 [19] - Plant operations decreased approximately $1.5 million, or 67.2%, compared to the same period in 2024, primarily due to workforce reductions and decreased professional fees [17][18] Business Line Data and Key Metrics Changes - The company achieved key milestones in product line expansion, including the production of initial samples of nickel carbonate and mixed hydroxide precipitate (MHP) [4][5] - A breakthrough in lithium recovery from LFP batteries was completed, which can handle a blend of 50% NMC and 50% LFP input, effectively doubling lithium carbonate output [5][6] Market Data and Key Metrics Changes - The company is adapting its strategy to align with current market conditions characterized by lower lithium prices and uncertainty in the industry [7][10] - There has been an increase in engagement with various industry players, indicating a phase of consolidation and partnerships within the critical minerals sector [34][58] Company Strategy and Development Direction - The company is focused on building a low-cost, resilient domestic battery materials supply chain and is continuously advancing its technology to meet market needs [3][10] - A strategic decision was made to sell property to retire debt and generate cash reserves, allowing for evaluation of more cost-efficient locations for future development [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to survive and thrive in the evolving critical minerals industry, emphasizing the importance of adaptability and resilience [26][59] - There is optimism regarding future government support for domestic supply chains, although specific feedback from government agencies is still pending [43][44] Other Important Information - The company is transitioning leadership with Eric West taking over as CFO, while Judd Merrill will assist during the transition period [9][12] - The company is actively engaging with potential strategic financial partners aligned with its long-term strategy [20][56] Q&A Session Summary Question: Can you walk me through the Sierra Arc sale process and how much runway it gives you? - Management explained that selling the Sierra Arc allows for significant savings and provides cash runway to develop commercial relationships, emphasizing a shift in focus to build facilities closer to supply sources [24][26][30] Question: Has there been an uptick in customer inbounds due to recent tariff announcements? - Management noted increased engagement with various industry players, indicating a positive trend in customer discussions and partnerships [32][34] Question: Can you discuss the opportunity related to product line expansion and LFP recycling? - Management highlighted that advancements are driven by market responsiveness and optimization, aiming to improve plant economics and enhance off-take opportunities [36][40] Question: What is the status of government discussions regarding domestic supply chains? - Management confirmed ongoing engagement with government agencies, with expectations for clarity on policy and funding support in the coming months [42][44] Question: Can you elaborate on near-term and long-term financing opportunities? - Management discussed plans to retire existing debt and the potential for project financing, emphasizing the importance of partnerships for future growth [54][56]

Financial Data and Key Metrics Changes - The company ended the quarter with total cash of approximately $4.1 million, higher than the previous quarter, indicating management's focus on maintaining cash position [27] - The net loss for the 12 months ended December 31, 2024, was approximately $24.6 million or a negative $3.83 per basic and diluted share, compared to a net loss of $24 million or a negative $5.10 per basic and diluted share for 2023 [34] - Interest expense increased to $1.1 million for the year ended December 31, 2024, primarily due to a change in fair value of the warrant liability [33] Business Line Data and Key Metrics Changes - Plant operations increased approximately $931,000 or 15% for the 12 months ended December 31, 2024, driven by a rise in payroll and related fees due to hiring additional staff [31] - The company recognized an impairment of approximately $2.6 million related to vendor equipment deposits for equipment no longer needed under the revised plan [29] Market Data and Key Metrics Changes - The company produced more than 600 pounds of battery-grade lithium carbonate at purity levels exceeding 99.5% during a December endurance run, showcasing its capability in the market [11] - The company is actively engaging with potential partners and customers globally, with positive feedback on the samples provided to multiple cathode active material producers [12] Company Strategy and Development Direction - The company aims to scale operations through flexible, partner-centric models that minimize capital intensity while maximizing impact [10] - The commercialization strategy has evolved to prioritize co-location opportunities and toll processing models to reduce logistics costs and accelerate time to revenue [15] - The partnership with 6K Energy is a flagship example of forming commercial alliances that support closed-loop battery material supply chains [17] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of adapting to the macroeconomic environment, which has been challenged by falling battery metal prices and tight capital markets [8] - The company is focused on translating technology success into commercial deployment, securing strategic funding, and continuing to produce battery-grade recycled materials [24] - Management expressed confidence in the company's ability to lead in clean battery metal recovery with a flexible capital-efficient plan in motion [26] Other Important Information - The company raised approximately $15 million during the year, with over two-thirds of the funding coming from AquaMetal's leadership and board [19] - The company was selected by the U.S. Department of Energy for the ACME Revive program, highlighting its role in supporting domestic critical mineral recovery [22] - The company expanded its board of directors, adding experienced leaders from the battery and finance sectors [23] Q&A Session Summary Question: Long-term financing plans and options - Management is focused on project financing and debt financing, with ongoing discussions with lenders [42][43] Question: Updated plan for the Sierra facility - The facility is move-in ready, with additional buildings planned to increase processing capacity from 3,000 tons to 7,000 tons [47][49] Question: Discussions on offtake agreements and co-locations - The company has been able to produce representative battery-grade materials, which has facilitated ongoing discussions with potential partners [55][57] Question: Visits from industry leaders and government agencies - Management has hosted various government officials and is engaging with the new administration regarding funding opportunities for critical minerals [59][61]