Aqua Metals, Inc. Q4 FY2025 earnings call

Steve Cotton started by discussing 2025 as a milestone - filled year. The company evolved technology, advanced products, developed strategic partnerships, and improved the balance sheet. On technology and product, 2025 was expansive with growth in product portfolio, improvement in feedstock flexibility, and sharpening the commercial scope of the first ARC facility around NMC black mass and LFP black mass with outputs like battery - grade lithium carbonate, nickel - cobalt mixed hydroxide precipitate, and iron phosphate. They achieved high - quality lithium carbonate with low chlorine levels, produced LFP cathode scrap into battery - grade lithium carbonate, extended feedstock testing to other markets, and were central to producing cathode active material from domestic recycled nickel. Commercially, they advanced ARC facility design, conducted site due diligence, remained engaged in Lion Energy transaction, had broad partnership activity including with 6K Energy, Westwind Elements, Impossible Metals, and Moby Robotics, and had industry engagement at the Innovation Center. Governance saw board additions and CFO transition. Eric West then gave a financial review, noting balance sheet with $10.8 million cash and no long - term debt, income statement with 2025 net loss $22.6 million vs 2024's $24.6 million, cash flow with improved operating cash used, and future plans for cash usage management.

Anticipate a measured increase in cash usage as they ramp engineering, process optimization and site readiness activities for the first commercial facility. Continue to manage spending with rigorous discipline, focusing on maintaining adequate liquidity, aligning investment pace with commercialization progress, and ensuring financial platform to reach goals. The balance sheet improvements in 2025 position them for 2026 with financial stability.

Q: Congrats on another quarter, could you give main areas of focus near term and synergies for Lion Energy acquisition?

A: Been in deep due diligence across financial, legal, operational, commercial. Synergies in integrated battery materials and energy storage, with equity stake in American Battery Factory tying into domestic end - to - end battery ecosystem.

Q: Status of site selection update?

A: Biggest gating factors are site selection, project structure, capital and commercial partners. In active due diligence on two sites, goal is to settle lead site and spend rest of year on site - specific FEL2 engineering.

Q: Status of feedstock market and effect on commercial position?

A: Black mass in US/NA exported offshore due to lack of domestic refining. Market demands competitive payables, but aqua refining process has CapEx and OpEx advantages. Diversifying through end - of - life and gig factory scrap, and with lithium prices recovering, it's a healthier backdrop.

Q: Talk about LFP breakthrough in more detail?

A: Ability to economically recover lithium and iron phosphate from LFP, significant for future end - of - life and growing LFP Gigafactory scraps, putting them in strong position for LFP batteries.

Q: Expand on liquidity position coming out of 2025?

A: Ended year with $10.8 million cash, no long - term debt, lower operating burn. $20 million capital raised in 2025 strengthened balance sheet, giving flexibility for engineering, site selection, and partnerships.

Q: How do MOUs with Impossible Metals, Moby Robotics, and LOI with Westwind Elements fit with core business?

A: Applying core aquarefining platform to new critical mineral sources, opening up large TAM, with battery recycling as primary path but adjacencies adding strategic depth.

Q: View on ongoing consolidation in battery recycling industry and effect on aqua metals?

A: Consolidation is net positive. Lithium price collapse exposed models, aqua refining's lower chemical intensity, lower waste, and better fit for NA permitting makes them more differentiated as weaker models fall away