Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aqua Metals Inc (NASDAQ:AQMS) has achieved 24-hour operational capacity at its pilot facility, producing high-purity battery-grade lithium carbonate with over 99.5% purity.
• The company has secured multiple term sheets for substantial capital commitments to support its growth plans, including the expansion of the Sierra Aqua Refining campus.
• Aqua Metals Inc (NASDAQ:AQMS) has made significant progress in preparing the Sierra Arc Facility for commissioning, with critical infrastructure upgrades materially completed.
• The company's refining technology is environmentally friendly, eliminating waste streams and reducing environmental impacts, which positions it as a low-cost producer.
• Aqua Metals Inc (NASDAQ:AQMS) has received positive feedback from potential off-takers and battery manufacturers regarding the quality of its recycled materials.

Negative Points

• Aqua Metals Inc (NASDAQ:AQMS) was not selected for the latest round of the MESC grant, impacting its funding opportunities.
• The company implemented a reverse stock split to meet NASDAQ listing requirements, which may indicate financial challenges.
• Aqua Metals Inc (NASDAQ:AQMS) reported a net loss of approximately $5.2 million for the third quarter, reflecting ongoing financial struggles.
• The company is heavily reliant on securing long-term financing to complete its Sierra Arc buildout and scale operations.
• There is uncertainty regarding the timeline and structure of the long-term financing, which is critical for the company's future growth.

Q & A Highlights

• Warning! GuruFocus has detected 6 Warning Signs with AQMS.

Q: Can you provide an update on the DOE grant expected for phase two of the project? A: Steve Cotton, CEO: We were not selected for the latest round of the MESC grant. However, we are engaging with various agencies and are optimistic about future opportunities to receive grant funding as we continue to build relationships with these departments.

Q: What is the status of long-term financing and the types of investors involved? A: Steve Cotton, CEO: We have been in discussions with financial and strategic investors since August. While we can't comment on specific structures, we are prioritizing funding for both phase one and phase two of the Sierra Arc project. We are having detailed discussions and expect to report more soon.

Q: Can you clarify the monthly expenses of $500,000 to $600,000? Does this include plant operations? A: Judd Merrill, CFO: Yes, this figure includes total cash needs, covering both G&A and plant operations. We've worked to reduce our burn rate significantly.

Q: Why did Aqua Metals execute a reverse stock split? A: Judd Merrill, CFO: The reverse stock split was primarily to regain compliance with NASDAQ listing requirements, a common action for companies in our sector.

Q: What is the commissioning schedule for the Sierra Arc, assuming long-term funding is secured? A: Steve Cotton, CEO: We project commissioning the first phase of the Sierra Arc within 2 to 3 quarters after securing funding. The building is ready for equipment placement, and much of the equipment is already on order, allowing for a rapid time to market.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.