2Q21 Results: Continued Progress and Key Milestone Announcement; Outlook for 2022 and Beyond



KEY POINTS
  • On July 29, 2021, Aqua Metals announced its 2Q21 earnings results. The company made meaningful progress in the quarter and delivered on its prior guidance to the market.
  • Aqua Metals signed its first-ever definitive agreement to license and deploy AquaRefining technology in Taiwan with ACME Metal Enterprise Co. (ACME). This is a major milestone and helps validate the company’s licensing strategy and provides a pathway for future monetization. Aqua Metals plans to begin shipping its Aqualyzer for initial deployment and operations later this year.
  • Management believes this agreement positions Aqua Metals to capitalize on the large and rapidly growing APAC market opportunity through additional AquaRefining deployments in the region. The company also strengthened its IP portfolio with new AquaRefining patent allowances in China, the largest and fastest growing lead market.
  • Aqua Metals stated on the earnings conference call that the licensing sales funnel remains robust and that the company is advancing additional AquaRefining deployment discussions with several potential licensees.
  • Management anticipates it will begin generating licensing revenue toward the end of 2021 and onward into 2022-2023. During the 2022-2023 timeframe, the company expects to earn revenue from both the commercialization of AquaRefining technologies for lead recycling and from multi-metal recycling for lithium-ion batteries. That said, 2021 revenue is expected to be marginal with material licensing revenue occurring in 2022 and beyond.
  • The company ended the quarter with a strong balance sheet, consisting of $10.7 million of cash on hand and $0.6 million of debt outstanding. Additionally, through opportunistic share sales via its existing ATM facility, Aqua Metals raised net proceeds of approximately $1.8 million during the quarter.
  • 2Q21 net loss widened by $4.0 million y/y to -$8.0 million (-$0.12 per diluted share), mainly driven by an uptick in COGS related to plant clean-up costs (+$0.8 million y/y) and a one-time loss on the disposal of PP&E related to the plant lease-to-buy agreement with LiNiCo (-$4.3 million y/y).
  • Our prior content on AQMS can be accessed HERE.

EARNINGS SNAPSHOT

On July 29, 2021, Aqua Metals announced its 2Q21 earnings results. The company made meaningful progress in the quarter and delivered on its prior guidance to the market.

DISCLOSURES

Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.

WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...