Aqua Metals, Inc. (NASDAQ: AQMS) ("Aqua Metals" or the "Company"),
which is reinventing metals recycling with its AquaRefining™
technology, today announced results for its first quarter ended
March 31, 2021.
Steve Cotton, President and Chief Executive
Officer, commented, “We have had a very good start to 2021 and have
taken several positive steps forward in the evolution of Aqua
Metals. Most significantly, we are in advanced discussions with
several strong candidates to license and implement our proprietary,
hydrometallurgical, clean AquaRefining lead recycling technology.
Our primary focus is to secure our first AquaRefining license and
equipment supply partnership. We believe Aqua Metals is very close
to achieving that goal. Other recent initiatives have included an
investment in a strategic partner, paving the way for the formation
of an alliance of companies to advance clean recycling technologies
for lithium-ion batteries. In addition, we are working to
strengthen our already robust IP portfolio with the submission of
two strategic provisional patents covering our metal oxide and
lithium battery recycling initiatives. Further, we have increased
the expertise of our Board with the appointments of Molly Zhang and
Edward Smith, who are already contributing with their vast
experience in licensing, cleantech and
manufacturing.”
First Quarter 2021 Financial
Results
During the first quarter of 2021, the Company
remained focused on the final stages of its V1.25L Aqualyzer
program. As Aqua Metals has been refining its product offering for
future license and equipment supply partners, the Company did not
generate revenue during the first quarter of 2021. The minimal
revenue recognized during the first quarter of 2020 was the result
of the sale of existing inventory.
Cost of product sales increased by approximately
11% during the first quarter to $1.6 million compared to $1.5
million for the same period in 2020. The slight increase in cost of
product sales was driven by plant clean-up costs in preparation
for the lease and planned sale of the facility.
General and administrative expenses for the
first quarter of 2021 decreased approximately 4% compared to the
first quarter of 2020. Aqua Metals achieved a significant decrease
in general and administrative expenses last year, during the first
quarter of 2020. These improvements resulted from swift cost
reduction measures implemented during the Company’s expedited
transition to a capital-light business model. The Company continues
to scrutinize all expenses while focusing on efficient capital
management.
Aqua Metals received insurance proceeds of
$231,000 during the first quarter of 2021 related to the 2019 fire.
Subsequent to the end of the quarter, the Company received an
additional insurance payment of $1.4 million, the first payment
related to its business interruption claim. Including the most
recent insurance payment, the total collected is now $25.0 million.
It is anticipated that additional insurance collections will be
received, reflecting asset replacement cost and business
interruption coverage. As the amounts received have exceeded the
original insurance receivable balance, that was limited by GAAP
accounting standards, any additional payments are reported as other
income.
Interest expense decreased approximately 97% for
the first quarter of 2021 compared to the same period in 2020. The
decrease resulted from the retirement of the Veritex loan during
the fourth quarter of 2020, leaving the Company essentially debt
free.
For the first quarter of 2021, the Company had
an operating loss of $4.2 million, compared to an operating loss of
$4.1 million for the quarter ended March 31, 2020. The net loss for
the first quarter was $4.1 million, or $0.06 per basic and diluted
share, compared to a net loss of $4.4 million, or $0.07 per basic
and diluted share, for the quarter ended March 31, 2020.
During the first quarter of 2021, Aqua Metals
made a $1.5 investment in LINICO Corporation (“LiNiCo”). LiNiCo is
a cleantech innovator focused on sustainable lithium-ion battery
recycling methodologies. This investment is reflected as a
non-current asset on the balance sheet. As another significant step
in implementing its capital-light business model, the Company also
reached an agreement with LiNiCo for the lease with an option to
purchase its McCarran, Nevada plant. The agreement is structured to
allow Aqua Metals to retain use of a portion of the building while
also receiving lease revenues. As part of the transaction, LiNiCo
is required to pay Aqua Metals two non-refundable cash deposits
totaling $3.25 million to be used toward the purchase of the
facility. As a triple-net lease, the agreement will significantly
reduce Aqua Metals' cash outflow related to the plant. The
lease-to-buy agreement commenced on April 1, 2021.
The Company utilized its at-the-market share
sales agreements during the quarter. Through opportunistic share
sales, Aqua Metals recently raised additional net proceeds of
approximately $0.5 million. This is in addition to the $7.0 million
previously announced and increased the total to $7.5 million raised
during the first quarter of 2021. As of March 31, 2021, the Company
had $11.7 million in cash and cash equivalents.
Conference Call and Webcast
The Company will conduct a conference call to
discuss these results today at 4:30 p.m. Eastern Daylight Time. The
conference call may be accessed by dialing: (833) 579-0902 or (778)
560-2608 for international callers and referencing conference
ID: 1979603. A simultaneous webcast of the conference call,
which will include presentation slides, will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=123B7457-7347-402B-8B72-063CCC4AB283. In
addition, the live webcast or a replay of the conference call will
be available via the Company website
at: https://ir.aquametals.com/ir-calendar. A telephone replay
of the conference call will be available until May 29, 2021 by
dialing (800) 585-8367 (toll free) or (416) 621-4642 and using
conference ID: 1979603.
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing
metals recycling with its patented hydrometallurgical AquaRefining™
technology. Unlike smelting, AquaRefining is a room temperature,
water-based process that emits less pollution. The modular
Aqualyzers™ cleanly generates ultra-pure metal one atom at a time,
closing the sustainability loop for the rapidly growing energy
storage economy. The Company’s offerings include equipment supply,
services, and licensing of the AquaRefining technology to recyclers
across the globe. Aqua Metals is based in McCarran, Nevada. To
learn more, please visit: www.aquametals.com.
Aqua Metals Social Media
Aqua Metals has used, and intends to continue
using, its investor relations
website (https://ir.aquametals.com), in addition to its
Twitter, LinkedIn and YouTube accounts
at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.linkedin.com/company/aqua-metals-limited and
https://www.youtube.com/channel/UCvxKNWcB69K0t7e337uQ8nQ respectively,
as means of disclosing material non-public information and for
complying with its disclosure obligations under Regulation FD.
Safe Harbor
This press release contains forward-looking
statements concerning Aqua Metals, Inc. Forward-looking statements
include, but are not limited to, our plans, objectives,
expectations and intentions and other statements that contain words
such as "expects," "contemplates," "anticipates," "plans,"
"intends," "believes", "estimates", "potential" and variations of
such words or similar expressions that convey uncertainty of future
events or outcomes, or that do not relate to historical matters.
The forward-looking statements in this press release include our
expectations for the benefits of our new methodology for producing
battery manufacturing ready active material and the future of lead
acid battery recycling via traditional smelters. Those
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially. Among those factors are: (1) the risk that we
may not be able to satisfactorily demonstrate to potential
licensees the technical and commercial viability of our V1.25
electrolyzer and AquaRefining process; (2) the risk that licensees
may refuse or be slow to adopt our AquaRefining process as an
alternative to smelting in spite of the perceived benefits of
AquaRefining; (3) the risk that we may not realize the expected
economic benefits from any licenses we may enter into; (4) the risk
that we may not be able to access additional capital as and when
needed; and (5) those other risks disclosed in the section "Risk
Factors" included in our Annual Report on Form 10-K filed on
February 25, 2021 and subsequent SEC filings. Aqua Metals cautions
readers not to place undue reliance on any forward-looking
statements. The Company does not undertake, and specifically
disclaims any obligation, to update or revise such statements to
reflect new circumstances or unanticipated events as they occur,
except as required by law.
AQUA METALS, INC.Condensed Consolidated Balance
Sheets(in thousands, except share and per share amounts)
|
|
March 31,2021 |
|
|
December 31,2020 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
11,727 |
|
|
$ |
6,533 |
|
Accounts receivable |
|
|
— |
|
|
|
32 |
|
Inventory |
|
|
1,091 |
|
|
|
1,091 |
|
Prepaid expenses and other current assets |
|
|
641 |
|
|
|
702 |
|
Total current assets |
|
|
13,459 |
|
|
|
8,358 |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
24,722 |
|
|
|
24,883 |
|
Intellectual property, net |
|
|
775 |
|
|
|
819 |
|
Investment in LiNiCo |
|
|
1,500 |
|
|
|
— |
|
Other assets |
|
|
1,108 |
|
|
|
1,078 |
|
Total non-current assets |
|
|
28,105 |
|
|
|
26,780 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
41,564 |
|
|
$ |
35,138 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,697 |
|
|
$ |
1,552 |
|
Accrued expenses |
|
|
1,709 |
|
|
|
1,253 |
|
Lease liability, current portion |
|
|
606 |
|
|
|
620 |
|
Notes payable, current portion |
|
|
31 |
|
|
|
29 |
|
Total current liabilities |
|
|
4,043 |
|
|
|
3,454 |
|
|
|
|
|
|
|
|
|
|
Lease liability, non-current
portion |
|
|
108 |
|
|
|
242 |
|
Notes payable, non-current
portion |
|
|
170 |
|
|
|
303 |
|
Total liabilities |
|
|
4,321 |
|
|
|
3,999 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock; $0.001 par
value; 100,000,000 shares authorized; 67,755,336 and 64,461,065
shares issued and outstanding as of March 31, 2021 and December 31,
2020, respectively |
|
|
68 |
|
|
|
64 |
|
Additional paid-in capital |
|
|
206,914 |
|
|
|
196,728 |
|
Accumulated deficit |
|
|
(169,739 |
) |
|
|
(165,653 |
) |
Total stockholders’ equity |
|
|
37,243 |
|
|
|
31,139 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
41,564 |
|
|
$ |
35,138 |
|
AQUA METALS, INC.Condensed Consolidated
Statements of Operations(in thousands, except share and per share
amounts)(Unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
— |
|
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
Cost of product sales |
|
|
1,610 |
|
|
|
1,454 |
|
Research and development cost |
|
|
289 |
|
|
|
242 |
|
General and administrative expense |
|
|
2,299 |
|
|
|
2,385 |
|
Total operating expense |
|
|
4,198 |
|
|
|
4,081 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(4,198 |
) |
|
|
(4,063 |
) |
|
|
|
|
|
|
|
|
|
Other income and
(expense) |
|
|
|
|
|
|
|
|
Insurance proceeds net of related expenses |
|
|
(12 |
) |
|
|
(203 |
) |
PPP loan forgiveness |
|
|
131 |
|
|
|
— |
|
Interest expense |
|
|
(5 |
) |
|
|
(183 |
) |
Interest and other income |
|
|
— |
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
Total other income (expense), net |
|
|
114 |
|
|
|
(364 |
) |
|
|
|
|
|
|
|
|
|
Loss before income tax
expense |
|
|
(4,084 |
) |
|
|
(4,427 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(2 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,086 |
) |
|
$ |
(4,427 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
66,877,948 |
|
|
|
59,582,603 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share |
|
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
Contact: Glen Akselrod, Bristol Capital(905) 326-1888, Ext.
1glen@bristolir.com
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