Financial Data and Key Metrics Changes - As of September 30, 2021, the company reported cash of $11.7 million and working capital of $10.3 million, maintaining cash balances over $10 million for the last three quarters [23][24] - The net loss for the quarter was $1.386 million, with a basic and diluted net loss per share of $0.02 [27] - Cost of product sales increased approximately 2% and 23% for the three and nine months ended September 30, 2021, respectively [25] Business Line Data and Key Metrics Changes - The company completed its third generation Aqualyzer, which triples the throughput compared to the first generation, now capable of processing 1296 kilograms per day [11] - Research and development costs included expenditures related to improvements on AquaRefining technology for lead recycling and initial development of lithium-ion battery recycling [25] Market Data and Key Metrics Changes - The global lead battery market is valued at around $65 billion, with the fastest growth occurring in the Asia Pacific region due to increased industrialization and vehicle usage [18] - The company is preparing to ship AquaRefining technology to ACME Metals in Taiwan, marking a significant milestone in the Asia Pacific market [16] Company Strategy and Development Direction - The company aims to provide sustainable metal recycling for lead and lithium batteries, focusing on reducing reliance on mining and supporting clean energy initiatives [6][7] - Aqua Metals is transitioning to a capital-light model by providing equipment and licensing, which is expected to enhance operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of recycling technologies in achieving net-zero emissions and addressing global climate change [8] - The company is optimistic about its partnership with LiNiCo and the potential for significant advancements in lithium-ion battery recycling technology [20][39] Other Important Information - The company received a final insurance payment of $5.25 million, exceeding initial guidance, and has advanced discussions with potential licensees [18][27] - Aqua Metals has established a strong patent portfolio with 71 patents issued and allowed, and 44 additional applications pending [22] Q&A Session Summary Question: Will ACME receive the latest Aqualyzer technology? - Yes, ACME Taiwan will receive the latest incarnation of the technology [32] Question: What are the expected revenues from the shipment to ACME? - The materials will ship by the end of the fourth quarter, with modest payments expected for the equipment and material produced [34] Question: Are there any near-term milestones for the LiNiCo partnership? - The company is sourcing black mass material for processing, with pilot sales expected to begin soon [39] Question: How does the company plan to fund operations through the end of 2022? - The company has $11.7 million in cash and expects additional funds from the building sale and revenue from operations [43] Question: What is the pace of lithium recycling process development? - The pace is rapid, with significant focus on innovation and capital-light models to enhance technology [46] Question: How does AquaRefining technology compare to other recycling methods? - AquaRefining offers a cleaner, more efficient process that can complement existing methods and reduce carbon output [55]
Aqua Metals(AQMS) - 2021 Q3 - Earnings Call Transcript