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The call conveyed meaningful technical progress and financial discipline: Aqua Metals demonstrated validated battery-grade lithium carbonate production from multiple feedstocks, achieved >5,000 operating hours, and materially reduced operating expenses and net loss year-over-year. However, the company faces near-term liquidity constraints (cash of ~$6.8M and ~$3.8M quarterly cash burn), unresolved exposure to the Lion Energy financing (~$4.1M) with a $437k provision, and no binding commercial contracts yet—progress toward commercialization is contingent on site selection and financing. Overall, the positives around validated technology, reduced losses and financing flexibility (ATM capacity) outweigh the near-term operational and liquidity risks, but execution on site selection and commercial conversions remains critical.
Guidance from the call emphasized advancing commercialization through site selection, continued engineering/technical validation and expanded commercial engagement over the balance of 2026, with the company saying site selection for its first commercial lithium battery recycling facility is well underway (short list of U.S. locations) and that progress to FEL2-style engineering will follow once site, feedstock and offtake alignment are finalized; key operational metrics cited include more than 5,000 cumulative operating hours, independent production of battery‑grade lithium carbonate from both NMC and LFP feedstocks, and manganese sulfate purity of ~99.8%, while financial metrics reported for Q1 2026 were a net loss of ~$4.0M (~$1.22 per share) versus a net loss of ~$8.3M (~$10.27 per share) in Q1 2025, operating expenses of ~$4.1M (vs. $8.7M), cash and equivalents of ~$6.8M, working capital of ~$7.5M, cash used in operations of ~$3.8M, ~$1.3M raised under the ATM with ~$48.6M remaining capacity, and disclosed Lion Energy exposure of ~ $4.1M (including a $2.0M advance) with a $437k provision for credit losses; management reiterated disciplined capital management and said it expects to report additional updates soon.
Net loss improved to approximately $4.0M in Q1 2026 from $8.3M in Q1 2025, a ~51.8% year-over-year reduction; loss per share improved to $1.22 from $10.27, an ~88.2% improvement driven primarily by the absence of prior-year noncash impairment charges.
Total operating expenses were ~$4.1M in the quarter versus ~$8.7M in Q1 2025, a ~52.9% reduction, reflecting continued cost discipline while supporting technical and engineering activities.
Surpassed 5,000 cumulative operating hours across multi-feedstock campaigns and successfully produced independently-validated, industry-grade battery-grade lithium carbonate from multiple recycled feedstocks including NMC and LFP, supporting the AquaRefining commercialization pathway.
Achieved manganese sulfate production purity of approximately 99.8%, demonstrating broader applicability of the AquaRefining process across critical minerals and battery precursor markets.
Advanced site selection and engineering work for the first commercial lithium battery recycling facility with a short list of U.S. locations under evaluation (focus on feedstock access, logistics, utilities, permitting and partner proximity); plant configuration, operating parameters and capital planning are being refined to enable timely commercialization.
Raised approximately $1.3M net under ATM during the quarter and report approximately $48.6M of remaining capacity under the ATM program, indicating available additional financing flexibility while continuing to evaluate alternatives.
Good afternoon. Welcome to Aqua Metals' First Quarter 2026 Earnings Conference Call. My name is Tom, and I will be your operator this afternoon. [Operator Instructions] It is now my pleasure to turn the call over to your host, [ Dan Scott, ] Investor Relations. Dan, please proceed.
Thank you, operator, and thank you, everyone, for joining us today. Earlier today, Aqua Metals issued a press release providing an operational update and discussing results for the first quarter ended March 31, 2026. This release is available in the Investor Relations section of the company's website at aquametals.com. Hosting the call today are Steve Cotton, President and Chief Executive Officer; and Eric West, Chief Financial Officer. Before we begin, I would like to remind participants that during this call, management will be making forward-looking statements. Please refer to the company's report on Form 10-K for a summary of the forward-looking statements and the risks, uncertainties and other factors that could cause actual results to differ materially from those forward-looking statements. Aqua Metals cautions investors 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.
As a reminder, after the formal remarks, we will conduct a question-and-answer session. With that, I'd like to turn the call over to Steve Cotton, President and CEO of Aqua Metals.
Thank you, Dan. Good afternoon,...