Aqua Metals sees 2020 expenses decrease from change in business model
Aqua Metals sees 2020 expenses decrease from change in business model
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McCarran, Nevada-based Aqua Metals Inc. has announced financial results for the year ended Dec. 31, 2020. The company changed its business strategy after a fire at its plant in November of 2019, focusing on a capital-light technology licensing and equipment supply strategy rather than on recycling lead in-house using its AquaRefining technology at its McCarran facility.
“Aqua Metals ended 2020 with tremendous momentum that has continued into 2021,” Steve Cotton, president and chief executive officer of Aqua Metals says in a news release announcing the company’s 2020 financial performance. “After a difficult end to 2019, our team rose to the challenge, showing tremendous resiliency and demonstrated the ability to deliver on our stated objectives. We have achieved numerous milestones that strengthen the organization and validate our value proposition to future technology license and equipment supply partners. Specifically, through the V1.25L program, we have dramatically improved AquaRefining with a 100 percent increase in production over previously achieved volumes, in addition to other enhancements, including the Pure Metrics integrated, real-time software portal.”
Earlier in 2021, Aqua Metals announced it had entered into a lease-to-buy agreement with LiNiCo, a company focused on lithium-ion battery recycling. This agreement led Aqua Metals to shift from a planned sale of its McCarran production facility to a strategic lease.
“As we announced on February 16, the arrangement created many advantages for Aqua Metals,” Cotton says. “To offset our decision to defer immediate cashflow from an outright plant sale in favor of this strategic relationship, we decided to utilize our existing ATM (at-the-market offering) to further strengthen our balance sheet and reduce potential risk to cash flow and the company. As a result, we have further strengthened our financial position. With no debt and a combination of insurance proceeds, ATM share sales, future purchase deposits for the facility, proceeds from the expected sale of equipment and the noncore McCarran, Nevada, facility, as well as a decreased cash burn due to the triple-net plant lease beginning in April, we are confident our balance sheet is in good shape and provides us with the flexibility we need. Any future ATM share sales will be strategic and opportunistic to grow our business and build long-term shareholder value.”
Cotton adds, “I am more confident than ever as I envision the future of this company and the accomplishments we are on the cusp of achieving.”
Aqua Metals was not in commercial production during 2020 and, therefore, generated minimal revenue. The revenue the company did realize in 2020 resulted from the sale of lead compounds in inventory that were generated in 2019.
With the suspension of commercial production in 2020, the cost of product sales decreased by approximately 78 percent during the year to $5.5 million compared with $24.8 million in 2019.
Aqua Metals reports general and administrative expenses for 2020 of $9 million compared with $19.3 million in 2019, a decrease of approximately 53 percent. The company says the most significant driver of this decrease was the suspension of activities under the operations, maintenance and management agreement with Veolia. In contrast, for the year ended Dec. 31, 2019, Aqua Metals recognized $9 million in noncash expense related to the Veolia agreement while it recognized $0.6 million in noncash expense related to the Veolia agreement in 2020. The company says it also reduced payroll and made improvements in nearly all other expense categories.
For the year ended Dec. 31, 2020, Aqua Metals had an operating loss of $15.4 million compared with an operating loss of $40.8 million for the year ended Dec. 31, 2019. The net loss for 2020 was $25.8 million, or 42 cents per basic and diluted share, compared with a net loss of $44.8 million, or 86 cents per basic and diluted share, for the year ended Dec. 31, 2019.
Aqua Metals says it recognized an impairment expense of $11.7 million during the fourth quarter of 2020 related to a review of its fixed assets, which concluded that the remaining useful lives of certain equipment had decreased because of the anticipated plant sale and the company’s focus on a capital-light business strategy. Excluding the impact of the impairment expense in 2020 and the Veolia expense recognized in 2019 and 2020, the company says its adjusted net loss for Dec. 31, 2020, was $13.4 million, or 22 cents per basic and diluted share, and $35.8 million, or 69 cents per basic and diluted share, for the year ended Dec. 31, 2019.
Aqua Metals received insurance proceeds of $20.9 million during 2020. Subsequent to the end of 2020, the company says it received an insurance payment of $0.1 million, bringing the total collected to $23.5 million.
During the fourth quarter of 2020, Aqua Metals retired its loan with Vertex Bank, leaving the company essentially debt-free. As of Dec. 31, 2020, the company reports $6.5 million in cash and cash equivalents.
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Source: Recycling Today
Aqua Metals sees 2020 expenses decrease from change in business model
<![CDATA[McCarran, Nevada-based Aqua Metals Inc. has announced financial results for the year ended Dec. 31, 2020. The company changed its business strategy after a fire at its plant in November of 2019, focusing on a capital-light technology licensing and equipment supply strategy rather than on recycling lead in-house using its AquaRefining technology at its McCarran facility.“Aqua Metals ended 2020 with tremendous momentum that has continued into 2021,” Steve Cotton, president and chief executive officer of Aqua Metals says in a news release announcing the company’s 2020 financial performance. “After a difficult end to 2019, our team rose to the challenge, showing tremendous resiliency and demonstrated the ability to deliver on our stated objectives. We have achieved numerous milestones that strengthen the organization and validate our value proposition to future technology license and equipment supply partners. Specifically, through the V1.25L program, we have dramatically improved AquaRefining with a 100 percent increase in production over previously achieved volumes, in addition to other enhancements, including the Pure Metrics integrated, real-time software portal.”Earlier in 2021, Aqua Metals announced it had entered into a lease-to-buy agreement with LiNiCo, a company focused on lithium-ion battery recycling. This agreement led Aqua Metals to shift from a planned sale…