Aqua Metals, Inc. (NASDAQ:AQMS), (“Aqua Metals” or the “Company”),
which is proceeding to commercialize its proprietary
electrochemical lead recycling technology called AquaRefining™, has
provided a corporate update and announced results for the fourth
quarter and full year ended December 31, 2017.
Company UpdateAqua Metals continues to work
towards scaling up operations at the world’s first AquaRefinery at
the Tahoe Reno Industrial Center (TRIC) in McCarren, Nevada.
As previously described, the modules experienced a “sticky lead”
condition in which recovered lead was hanging up on the modules’
exit chutes, and as a result, periodic manual intervention was
required to remove the AquaRefined lead. The following progress has
been made to overcome this condition:
- In early December 2017, Aqua Metals announced that they had
developed a solution to address the “sticky lead” condition by
using a retro-fit package consisting of modifications to the exit
chute and improvements to the electrolyte feed system.
- Initial testing of the chosen solution was completed using one
electrolyser during the remainder of December 2017.
- This solution was then expanded to one full module, comprised
of 6 electrolysers, and operated during January and early February.
The retro-fitted module completed a series of tests, including
operation of more than 20 hours over a four-day period.
- In early March, the Company completed the first 24 hour run of
continuous operation of an AquaRefining module. This 24-hour
testing run produced approximately 2.4 metric tonnes of AquaRefined
lead, which meets the Company’s objectives. Moreover, the
module achieved this output using approximately 13% less energy
than its design basis, in part, as a result of the modifications
developed to resolve the sticky lead issue.
Work to install the parts required for “sticky lead” retro-fit
has commenced, and the Company expects to have substantially
completed this by the end of March. The Company plans to
bring 16 retro-fitted modules on-line in groups of 4. The
first group is expected to begin initial operation by the end of
March 2018 and our plan is to ramp up AquaRefining production
during Q2.
Fourth Quarter and Full Year 2017 Financials
Total revenues in 2017 were $2.1 million, compared to no revenue in
2016. Total revenues in the fourth quarter of 2017 were $0.9
million, compared to $0.6 million in the third quarter of 2017 and
no revenue in the fourth quarter of 2016.
The Company incurred an operating loss of $24.9 million in 2017
compared to an operating loss of $13.0 million in 2016. The Company
incurred an operating loss of $6.5 million during the fourth
quarter of 2017 compared to an operating loss of $4.6 million in
the fourth quarter of 2016.
Net loss for 2017 was $26.6 million, or ($1.31) per diluted
share, compared to a net loss of $13.6 million, or ($0.89) per
diluted share, in 2016. Net loss for the fourth quarter of 2017 was
$7.0 million, or ($0.32) per diluted share, compared to a net loss
of $4.9 million, or ($0.30) per diluted share, in the fourth
quarter of 2016.
The Company had $22.8 million in cash and cash equivalents as of
December 31, 2017, compared to $26.6 million as of December 31,
2016. In the fourth quarter of 2017, the Company raised
approximately $13.8 million from an underwritten public offering.
In January 2018, the Company received approximately $2.1 million
from the underwriter exercising its overallotment option from the
December 2017 capital raise.
First Quarter 2018 GuidanceTotal revenues in
the first quarter of 2018 are expected to range between $1.3
million and $1.4 million, compared to revenue of $0.9 million in
the fourth quarter of 2017.
Conference Call and Webinar Aqua Metals will
host a conference call today, Thursday, March 15, 2018 at 2:00 p.m.
Pacific time (5:00 p.m. Eastern time) to discuss its financial
results for the fourth quarter and full year ended December 31,
2017.
Dr. Stephen Clarke, Chairman and Chief Executive Officer, and
Thomas Murphy, Interim Chief Financial Officer, will host the call
followed by a question and answer session.
To access the call, please use the following information:
Date: Thursday, March 15, 2018Time: 2:00 p.m. Pacific time (5:00
p.m. Eastern time)Dial-in: 1-888-394-8218International Dial-in:
1-323-794-2149Passcode: 6648793Webcast:
http://public.viavid.com/index.php?id=128741
A telephone replay will be available approximately two hours
after the call and will run through April 15, 2018 by dialing
1-844-512-2921 from the U.S., or 1-412-317-6671 from international
locations, and entering replay pin number: 6648793.
The webcast will be available for replay for 60 days at
http://public.viavid.com/index.php?id=128741 and on the investor
relations section of the company's website at
www.aquametals.com.
About Aqua MetalsAqua Metals, Inc.
(NASDAQ:AQMS) is reinventing lead recycling with its patented and
patent-pending AquaRefining™ technology. AquaRefining is a room
temperature, water-based process that is fundamentally
non-polluting. These modular systems allow the Company to reduce
environmental impact and scale lead acid recycling production
capacity both by building its own AquaRefineries and licensing the
AquaRefining technology to partners. Aqua Metals is based in
Alameda, California, and has built its first recycling facility in
Nevada’s Tahoe Reno Industrial Complex. To learn more, please visit
www.aquametals.com.
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” and variations of
such words or similar expressions that predict or indicate future
events or trends, or that do not relate to historical
matters. The forward looking statements in this release
include the strength and efficacy of Aqua Metals’ portfolio of
patent applications and issued patents, the lead acid battery
recycling industry, the future of lead acid battery recycling via
traditional smelters, the Company’s development of its commercial
lead acid battery recycling facilities and the quality and
efficiency of the Company’s proposed lead acid battery
recycling operations. 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 the Company may not be able to produce and market
AquaRefined lead on a commercial basis or, if the Company
achieves commercial operations, that such operations will be
profitable, (2) the fact that the Company only recently commenced
production and has not generated any significant revenue to date,
thus subjecting the Company to all of the risks inherent in a
pre-revenue start-up; (3) the risk no further patents will be
issued on the Company’s patent applications or any other
application that it may file in the future and that those patents
issued to date and any patents issued in the future will be
sufficiently broad to adequately protect the Company’s technology,
(4) the risk that the Company’s initial patents and any other
patents that may be issued to it may be challenged, invalidated, or
circumvented, (5) risks related to Aqua Metals’ ability to raise
sufficient capital, as and when needed, to develop and operate its
recycling facilities and fund continuing losses from operations as
the Company endeavors to achieve profitability; (6) changes in the
federal, state and foreign laws regulating the recycling of lead
acid batteries; (7) the Company’s ability to protect its
proprietary technology, trade secrets and know-how and (8) those
other risks disclosed in the section “Risk Factors” included in the
Company’s Quarterly Report on Form 10-Q filed on November 9,
2017 and the Company’s Annual Report on Form 10-K to be filed with
the SEC. 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) |
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
December 31,
2017 |
|
|
December 31,
2016 |
|
|
|
|
|
|
|
|
|
Current
assets |
|
|
|
Cash and
cash equivalents |
$ |
22,793 |
|
|
$ |
25,458 |
|
Restricted cash |
|
- |
|
|
|
1,124 |
|
Accounts
receivable |
|
882 |
|
|
|
- |
|
Inventory |
|
1,239 |
|
|
|
59 |
|
Prepaid
expenses and other current assets |
|
770 |
|
|
|
729 |
|
Total
current assets |
|
25,684 |
|
|
|
27,370 |
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
Property
and equipment, net |
|
45,733 |
|
|
|
41,392 |
|
Intellectual property, net |
|
1,461 |
|
|
|
1,137 |
|
Other
assets |
|
1,564 |
|
|
|
1,630 |
|
Total
non-current assets |
|
48,758 |
|
|
|
44,159 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
74,442 |
|
|
$ |
71,529 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
Accounts
payable |
$ |
1,436 |
|
|
$ |
1,572 |
|
Accrued
expenses |
|
1,801 |
|
|
|
1,975 |
|
Deferred
rent, current portion |
|
192 |
|
|
|
177 |
|
Notes
payable, current portion |
|
405 |
|
|
|
307 |
|
Total
current liabilities |
|
3,834 |
|
|
|
4,031 |
|
|
|
|
|
|
|
Deferred
rent, non-current portion |
|
771 |
|
|
|
963 |
|
Asset
retirement obligation |
|
701 |
|
|
|
- |
|
Notes
payable, non-current portion |
|
8,839 |
|
|
|
9,238 |
|
Convertible note payable, non-current portion |
|
1,332 |
|
|
|
307 |
|
Total
liabilities |
|
15,477 |
|
|
|
14,539 |
|
|
|
|
|
Stockholders' equity |
|
|
|
Common
stock and Additional paid-in capital |
|
113,807 |
|
|
|
85,252 |
|
Accumulated deficit |
|
(54,842 |
) |
|
|
(28,262 |
) |
Total
stockholders' equity |
|
58,965 |
|
|
|
56,990 |
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
74,442 |
|
|
$ |
71,529 |
|
|
|
|
|
|
|
|
|
Aqua Metals, Inc. |
Condensed Consolidated Statements of
Operations |
(in thousands, except share and per share
data) |
(unaudited) |
|
|
|
Three months ended |
|
Year ended December 31, |
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Product sales |
$ |
- |
|
|
$ |
896 |
|
|
$ |
- |
|
|
$ |
2,088 |
|
|
|
|
|
|
|
|
|
|
Operating cost and
expense |
|
|
|
|
|
|
|
|
Cost of product sales |
|
- |
|
|
|
3,870 |
|
|
|
- |
|
|
|
9,541 |
|
Research and development cost |
|
2,269 |
|
|
|
1,565 |
|
|
|
6,348 |
|
|
|
8,103 |
|
General and administrative expense |
|
2,365 |
|
|
|
1,994 |
|
|
|
6,610 |
|
|
|
6,891 |
|
Impairment charge |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,411 |
|
Total
operating expense |
|
|
4,634 |
|
|
|
7,429 |
|
|
|
12,958 |
|
|
|
26,946 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(4,634 |
) |
|
|
(6,533 |
) |
|
|
(12,958 |
) |
|
|
(24,858 |
) |
|
|
|
|
|
|
|
|
|
Other income and
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(322 |
) |
|
|
(511 |
) |
|
|
(639 |
) |
|
|
(1,761 |
) |
Interest and other income |
|
21 |
|
|
|
13 |
|
|
|
41 |
|
|
|
41 |
|
Total
other income (expense), net |
|
|
(301 |
) |
|
|
(498 |
) |
|
|
(598 |
) |
|
|
(1,720 |
) |
|
|
|
|
|
|
|
|
|
Loss before income tax expense |
|
(4,935 |
) |
|
|
(7,031 |
) |
|
|
(13,556 |
) |
|
|
(26,578 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(4,935 |
) |
|
$ |
(7,031 |
) |
|
$ |
(13,557 |
) |
|
$ |
(26,580 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
16,603,725 |
|
|
21,956,993 |
|
|
15,267,233 |
|
|
20,293,100 |
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share |
|
$ |
(0.30 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.89 |
) |
|
$ |
(1.31 |
) |
|
|
|
|
|
|
|
|
|
Aqua Metals Media Relations:David ReganDirector
of MarketingMain: 415-336-3553www.aquametals.com
Investor Relations:MZ North AmericaGreg
FalesnikManaging DirectorMain:
949-385-6449greg.falesnik@mzgroup.uswww.mzgroup.us
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