Aqua Metals(US:AQMS)2020-10-23 01:07Financial Data and Key Metrics Changes - As of September 30, 2020, cash and working capital balances were $5.6 million and $2.4 million respectively [16] - The company reported a net loss of $1.8 million or a negative $0.03 per share for Q3 2020, compared to a net loss of $10.2 million or a negative $0.17 per share for Q3 2019 [20] - Cost of product sales decreased approximately 80% for Q3 2020 compared to Q3 2019 due to the suspension of production following a fire [20] Business Line Data and Key Metrics Changes - The V1.25 electrolyzer program has progressed well, with meaningful cost and operational improvements expected to be product-ready by year-end [6][7] - The company has received a total of $21.8 million in insurance payments due to fire damage, with expectations to reach up to $30 million in total insurance proceeds [16][22] Market Data and Key Metrics Changes - The company has seen significant interest in the sale of its AquaRefinery facility, with potential buyers from various sectors including lead acid and lithium-ion battery recycling [8][9] - The company has a strong intellectual property portfolio with 45 patents allowed or granted in 17 countries, which is expected to enhance licensing opportunities [10] Company Strategy and Development Direction - The company is transitioning to a capital-light equipment and services provider and technology licensor, with plans to sell the AquaRefinery facility [7][8] - The licensing strategy is global, with a focus on monetizing its technology through partnerships and sales [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial position, anticipating additional insurance collections and a reduction in cash burn following the sale of the plant [23] - The management highlighted the importance of completing the V1.25 program to finalize specifications for potential customers [31] Other Important Information - The company has made key hires to enhance organizational capability and ensure execution of its strategic goals [15] - The anticipated sale of the AquaRefinery facility is expected to provide significant cash inflow, supporting the company's transition to a capital-light model [7][8] Q&A Session Summary Question: Metrics for the new electrolyzer V1.25L - Management indicated that performance metrics are being refined and will be finalized towards the end of the year [26][27] Question: Timeline for closing the building sale - Management is hopeful for a contract by the end of the year, with a good amount of interest from potential buyers [28][29] Question: Pool of potential customers for the new business model - Management confirmed engagement with several parties, indicating a robust sales funnel across various geographies [30][31] Question: Annual savings post-plant sale - Management estimated potential savings of over $2 million annually once the plant is sold, including reductions in holding costs and debt [34][35] Question: Expected range for asset sales - Management indicated that the plant and equipment could bring in approximately $20 million, depending on market conditions [37][41] Question: Timeline for first licensing deal - Management expressed optimism about securing the first licensing deal soon, with potential for multiple deals next year [44][45] Question: Likelihood of strategic buyers for the property - Management confirmed interest from strategic players in the lead acid battery industry and other sectors, enhancing the potential for a favorable sale [46][48]