Aqua Metals, Inc. (NASDAQ: AQMS) reported significant financial challenges in its latest 10-Q filing for the third quarter and nine months ended September 30, 2024. The company did not generate any revenue during these periods, a stark contrast to the $25,000 in product sales recorded in Q3 2023. This lack of revenue is attributed to the company not being in commercial production, as it historically relies on recycling lead-acid batteries and selling the recovered lead.
The financial results reflect a net loss of $5.2 million for Q3 2024, compared to a net loss of $4.5 million in Q3 2023. For the nine months ended September 30, 2024, the net loss increased to $17.1 million from $13.9 million in the same period of the previous year. The basic and diluted net loss per share improved slightly to $(0.76) for Q3 2024 from $(0.89) in Q3 2023, while for the nine months, it decreased to $(2.77) from $(3.12).
Total operating expenses for Q3 2024 rose to $5.2 million, up from $5.0 million in Q3 2023. For the nine-month period, operating expenses increased to $17.2 million from $14.3 million, driven by higher plant operations costs, which rose by 43.6% to $6.2 million. The company also recorded a loss on the disposal of property, plant, and equipment amounting to $448,000 in Q3 2024, contrasting with a gain of $23,000 in Q3 2023.
Aqua Metals' cash and cash equivalents plummeted to approximately $3.0 million as of September 30, 2024, down from $16.5 million at the end of 2023. The company reported a working capital deficit of $2.9 million and current liabilities of $7.1 million, which includes a $3 million note payable due on February 1, 2025. The independent auditor's report raised substantial doubt about the company's ability to continue as a going concern within the next year.
Strategically, Aqua Metals is focused on developing its lithium-ion battery recycling capabilities, having made progress on its recycling campus at the Tahoe-Reno Industrial Center. The company is pursuing funding for the completion of its Phase One development, which aims to process up to 10,000 tonnes of lithium-ion battery material annually. Despite these efforts, the company faces significant financial hurdles and must secure additional capital to sustain its operations and growth plans.
About Aqua Metals, Inc.
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