3Q21 Results: Achieved Key Milestones; Outlook for 2022 and Beyond



KEY POINTS
  • On November 4, 2021, Aqua Metals announced its 3Q21 earnings results. The company finalized its first and historic technology and equipment deployment agreement at a third-party facility, ACME Metal Enterprise Co. (ACME).
  • Aqua Metals signed its first-ever definitive agreement to license and deploy AquaRefining technology in Taiwan with ACME Metal Enterprise Co. (ACME). Aqua Metals plans to finalize shipping and start installation of Phase 1 in the coming quarter and start initial operations in the first quarter of 2022. This is likely to bring in the first royalty payments by 1H22.
  • The deployment at ACME will also benefit from Aqua Metals’ third generation Aqualyzer, V1.5 Aqualyzer, that was completed in August 2021 and has produced over 300% more lead above the original model, V1.0 Aqualyzer.
  • On November 4, 2021, Aqua Metals signed a collaboration agreement with LINICO Corp. (LiNiCo). As per the agreement in Phase 1, LiNiCo will process LIBs into black mass and Aqua Metals will process black mass at its innovation center to extract precious metals. Later in Phase 2, LiNiCo will license Aqua Metal’s technology and equipment to extract the metal from black mass.
  • During the quarter, Aqua Metals established an innovation center to apply the AquaRefiningTM process to lithium-ion battery (LIB) recycling R&D and prototype system activities. Aqua Metals expects to develop and commercially deploy full-scale LIB recycling technology by January 2023 and earn revenue from the commercialization of recycling technologies for lead recycling and multi-metal recycling for lithium-ion batteries. The nascent LIB recycling market is expected to exceed the lead battery recycling by the mid-2020s.
  • Aqua Metals has a robust licensing sales funnel and expects to add 1 to 2 more licensee / customers in the coming year.
  • The company ended the quarter with a strong balance sheet consisting of $11.7 million of cash on hand and $0.8 million of debt outstanding. The capex increased to $0.5 million (+0.3 million y/y).
  • 3Q21 net loss was reduced by $0.5 million y/y to -$1.4 million (-$0.02 per diluted share), primarily due to the receipt of a final insurance payment of $5.3 million. This was offset by increased COGS (+$0.03 million y/y) and general and administrative expenses (+$1.0 million y/y) due to plant clean-up costs and non-cash stock-based compensation respectively.
  • Our prior content on AQMS can be accessed HERE.

EARNINGS SNAPSHOT

On November 4, 2021, Aqua Metals announced its 3Q21 earnings results. The company finalized its first and historic technology and equipment deployment agreement at a third- party facility, ACME Metal Enterprise Co. (ACME).

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