Aqua Metals, Inc. Q1 FY2025 earnings call

• Operational updates: Achieved three key technical and operational milestones including product line expansion with initial samples of nickel carbonate and MHP, LFP recycling breakthrough with successful engineering analysis and lab/bench scale demonstration, and purity and performance advancements in battery-grade lithium carbonate. - Site strategy: Entered into an agreement to sell the Sierra ARC property to retire all debt, generate cash reserves, and reduce monthly holding costs by ~$100,000. - Leadership transition: Judd Merrill to transition from CFO on May 16, with Eric West joining as incoming CFO effective May 19, and Judd to consult through August.

No specific product segment breakdown by revenue contribution was detailed. Overall financials included ending the quarter with approximately $1.6 million in total cash, plant operations decreased ~$1.5 million or 67.2% compared to Q1 2024, general and administrative expense decreased $619,000 or ~20.7% compared to Q1 2024, and a non-cash impairment of ~$5.2 million related to construction in progress for the facility.

• Sale of the Sierra ARC property will provide cash runway and reduce monthly holding costs by ~$100,000. - Actively engaging with potential and strategic financial partners aligned with the long-term strategy. - Committed to building the first commercial arc once offtake and supply financing are finalized, with a focus on evaluating cost-effective locations near feedstock and offtake sources to improve CapEx and OpEx efficiencies.

• Industry conditions with lower lithium prices and market uncertainty. - Tighter capital markets affecting funding for operations and expansion. - Dependence on successful execution of strategic shifts and partnerships to achieve long-term goals.

Q: On the CRR sale, thought process and runway; focus on co-locating A: Steve Cotton and Judd Merrill discuss selling the Sierra ARC to retire debt, reduce monthly holding costs by ~$100,000, and gain cash runway to evaluate cost-effective locations near feedstock and offtake sources Q: Uptick in customer inbounds due to tariff announcements A: Steve Cotton talks about industry consolidation, survivor mindset, and increased engagement with partners as the industry navigates lower prices and market conditions Q: Product line expansion and LFP recycling opportunity A: Steve Cotton explains market responsiveness, optimization for plant economics, and potential licensing/joint ventures to enhance offtake opportunities and plant margins Q: Government discussions and timing A: Steve Cotton mentions ongoing engagement with government agencies like DOD and DOE, expecting clarity on policy and funding later in the year Q: Potential partners testing quality of recent material A: Steve Cotton states samples of product are sent to potential offtakers for testing to underpin commercial relationships Q: Time to revenues with appropriate financing A: Steve Cotton discusses leveraging existing buildings near partners to speed up time to market for new initiatives Q: Judd's departure details A: Judd Merrill explains departure is for a long-term opportunity, with a 90-day consulting period to transition to Eric West Q: Near-term and long-term financing A: Judd Merrill discusses retiring debt, using the at-the-market offering (ATM) and asset disposition for near-term, and project financing/partnerships for long-term