Aqua Metals Inc (AQMS) Reports Q3 2023 Financial Results
Aqua Metals Inc (NASDAQ:AQMS) strengthens balance sheet with strategic investments, securing approximately $25 million in gross proceeds.
Company progresses towards commercial-scale facility with no significant revenue reported in Q3 2023.
Operating loss of $4.9 million in Q3 2023, an increase from $3.9 million in Q3 2022.
Cash and cash equivalents stand at $25.6 million as of September 30, 2023.
On November 8, 2023, Aqua Metals Inc (NASDAQ:AQMS), a leader in sustainable lithium battery recycling, announced its financial results for the third quarter ended September 30, 2023. Despite not generating significant revenue during this period, the company has made substantial strides in strengthening its balance sheet and securing strategic investments and partnerships.
Operational and Financial Highlights
Aqua Metals Inc (NASDAQ:AQMS) reported an operating loss of $4.9 million for the third quarter of 2023, which is an increase from the operating loss of $3.9 million for the same period in 2022. The net loss for the quarter was $4.5 million, or $(0.04) per basic and diluted share, compared to a net loss of $3.9 million, or $(0.05) per basic and diluted share, for the third quarter of 2022. Plant operations expenses increased by 112.5% to approximately $1.8 million, while research and development expenses decreased by approximately 21%. General and administrative expenses saw an increase of approximately 7.8%.
As of September 30, 2023, the company had a strong cash position with $25.6 million in cash and cash equivalents. The cash provided by operations for the nine months ended September 30, 2023, was $2.2 million, primarily related to the sale of a property.
Strategic Developments and Partnerships
Steve Cotton, President and CEO of Aqua Metals, highlighted the company's progress, stating,
We have surpassed a number of milestones, substantially strengthened our balance sheet, and based upon the successful recovery of all critical battery metals in our pilot operation, we are progressing the build-out of our first commercial-scale facility the Sierra ARC (AquaRefining Campus).
He also emphasized the importance of the company's partnerships, including the collaboration with Dragonfly Energy and 6K Energy, which are instrumental in moving towards commercialization.
Balance Sheet and Cash Flow
The balance sheet of Aqua Metals Inc (NASDAQ:AQMS) reflects a solid financial position. The total assets increased to $41.982 million as of September 30, 2023, up from $33.502 million as of December 31, 2022. The increase in assets is primarily due to the rise in cash and cash equivalents. The total liabilities stood at $6.543 million, a decrease from $12.586 million at the end of 2022. The company's stockholders' equity also improved, totaling $35.439 million, an increase from $20.916 million at the end of the previous year.
Looking Forward
With strategic and institutional investments bolstering the company's balance sheet, Aqua Metals Inc (NASDAQ:AQMS) is well-positioned to complete the Sierra ARC Phase I, with the potential to generate up to $60 million in annual revenues based on average metals prices. The company's advancements in technology and commercial achievements have set a new standard for the sustainable future of lithium battery recycling.
Aqua Metals Inc (NASDAQ:AQMS) will hold a conference call to discuss the results and corporate developments, providing an opportunity for investors to gain further insights into the company's performance and future plans.
For more detailed information on Aqua Metals Inc (NASDAQ:AQMS) and its financial results, please visit the company's investor relations website.
Explore the complete 8-K earnings release (here) from Aqua Metals Inc for further details.
This article first appeared on GuruFocus.
