Q4 2021 Aqua Metals Inc Earnings Call
[music].
Ladies and gentlemen, we thank you for your patience. Please standby the Aqua Metals' conference will begin shortly again, we thank you for your patience and please continue to standby the Aqua Metals' conference will begin shortly.
[music].
Greetings welcome to Aqua metals full year 2021 results conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
You may submit a question via the web at any time by using the ask a question feature on the side of your screen.
Anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note this conference is being recorded.
I will now turn the conference over to spokesperson Glenn Axelrod. Thank you you may begin.
Thank you operator, welcome to Aqua metals fourth quarter and year end 2021 results conference call earlier today Aqua metals released financial results for the quarter and year ended December 31, 2021, the release its available on the investors section of the Companys website at Www Dot Aqua metals Dot com.
Joining us for today's call from management is Steve Cotton, President and CEO Judd Merrill Chief <unk> Company's Chief Financial Officer, and Dan Tucker, Chief Engineering, and operating officer. During today's call manager will be making forward looking statements. Please refer to the company's report on Form 10-K filed today February 24th.
Many 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 you.
Reflect new circumstances or unanticipated events as they occur except as required by law.
Winder after management's formal remarks, we will be taking questions questions will be accepted over the telephone from analysts and all other investors can submit a question using the online webinar portal provided in todays in last week's press release, we will take as many questions as we can in our available time slot.
I'd like to turn the call over to Steve Cotton CEO of alcohol metals, Steve. Please go ahead.
Thank you Glen and welcome and thank you everybody for attending today's call.
I will start and I'll read off the slide numbers and all of US will read off the slide numbers as we go through the deck that you can follow along if you're offline.
So the first slide is slide number one about aqua metals, leading or evolution, both in led and lithium battery recycling.
Slide number two.
Glen basically just read you the safe Harbor, it's for reference on the website.
Slide number three it starts off with our mission and that is to provide sustainable metal recycling for materials that are strategic to energy storage applications.
And our proven technology, which we call Aqua refining returns those raw materials back into the manufacturing supply chain in a clean way in an economical way that reduces the reliance on mining to meet demand and growing demand for all these minerals.
Number four.
Clean metals is really it.
Terms of recycling is key to our future you can see the quotes there both from the U S Secretary of energy as well as the U S Department of energy.
And I'll point out that Aqua refining uniquely uses the renewable electronic versus fire or chemicals as the reagent, which is really in support of what the U S. Department of energy is saying here, which is that the vision is for a global production of metal using just air and water.
Clean energy as inputs. If you use the elektron is the reagent you have the ability to vastly reduce the emissions and make it worthwhile to electrify the world and recycled batteries and that closed loop.
Slide number five.
Pointing out that operated finding for led and Aqua refining for lithium are really the only technology that are aligned with that vision and supporting that is that it is room temperature in a closed loop in a fundamentally noncollegiate process, we've already commercially proven the extraction of led and and <unk>.
It cleaner and more cost efficient recovery and recycling process.
We also produce a higher quality product because we played metals, we played ultra pure metals in fact.
Barry.
<unk> high purity as they command higher values in the marketplace, we're expanding the lead into lithium recycling and youll see the listing of minerals, there such as cobalt and nickel and manganese and copper in lithium and we'll get into some more detail on how we're doing that and our status as we move forward through our development process in the lithium space.
And this whole area of technologies in Sweden, Aqua refining technologies is patent protected and I'll get into more details on that little bit later.
Number six really shows our journey as a company.
And I'm I'm not going to read all of these milestones to you all but I'm going to point out that in the last quarterly update call.
Green area is the future of the Blue area as the present in the past and we've moved to the present and past really the September and the December milestones and the key milestones that we've had recently that we're reporting on is that we've achieved lab scale testing of the lithium mine recycling, while we also shipped off refining.
For led equipment to our first licensee and partner in Taiwan.
So if you look forward and look at the Green portion of the Arrow, you'll notice that in August of 'twenty. Two we expect to achieve operational testing of the full size lithium ion off refining recycling unit and then by early next year potentially a full scale development and deployment of Aqua refining for lithium ion batteries.
Our ticker on the stock exchange as AQR Maths on NASDAQ Our corporate headquarters is in Tahoe Reno area of Nevada were incorporated in 2014 and as of the end of the year, we had 74 million shares outstanding.
And the cash in hand is $8 1 million as of 12 31, and we are debt free with a strong balance sheet and Judd will speak to our financials in more detail coming up in our.
A discussion today.
Moving on to slide number seven we're going to get into the highlights of our accomplishments for 2021. This is the year of 2021 summarized in two slides.
First off we wanted to really brag about our innovation center that we did open up in the Tahoe Reno Industrial Center. This is a separate facility.
Less than a mile away from the original Aqua refinery that we sold two linacre with emerging lithium ion battery recycler in our innovation Center is really focused on the development and.
Prove out of the lithium ion battery recycling technology.
We also developed our third generation Aqua wiser for led and completed that in the year and that resulted in a 300% improvement in the production as compared to the original model that we ran 24 by seven in 2018 in 2019, and it's that version that is shipping to our partner in Taiwan.
We also increased our ownership throughout the year in political by 20% through some exercised warrants our patent portfolio increased.
Pretty significantly for the year to eight U S and 63 international patents from six and 40 international patents in the prior year.
And the lithium ion patent application did convert from a provisional recently to a non provisional patent and expect to see a lot more activity from Aqua metals in terms of patent prosecution because we do take the IP very seriously.
And ensure that we protect it on a global basis.
We signed our agreement with Acme metal.
And that agreement is to deploy unlicensed aqua refining equipment at its facility in Kelowna, Taiwan.
And we also did our final insurance settlement payment and collection of $5 to $5 million. So a total of 32 5 billion in total insurance proceeds collected from the 2019 fire event.
Yes.
Moving on to slide number eight I'm, a little bit more on the progress at the innovation Center since we established it down through the year.
And that is that the lithium ion battery recycling R&D is well underway and we've completed and are already lab tested plating of cobalt. We believed that the cobalt plating is the first cobalt that's been played from lithium ion batteries in our metal form.
We're also targeting a pilot circuit to produce materials by Q3 of this year in that innovation center on the pilots circuit.
We also established a collaboration agreement, which is really important with linacre political stands for lithium nickel cobalt and again, that's the company that purchased the Aqua refinery, which is about 140000 square foot facility, that's about a mile away from our innovation center in the Tahoe Reno Industrial Center and.
And that collaboration agreement anticipates.
We anticipate commercial production beginning in the beginning to scale by late this year and getting into early 2023. The focus on that collaboration agreement really is that <unk> will focus on the.
Lithium ion battery, breaking and separation and creation of black mass.
As the amalgam of the minerals that need to be recovered in Aqua metals will focus its technology and efforts through the innovation center on extraction of the various minerals.
That black mass.
We also added some very important strategic capabilities for the year. The first is Dave, but mercury as our chief strategist you can find the profile of date and laboratory on the about US and management teams section of our website and I recommend you go and look at Daves fast background.
In strategic corporate activities.
David is also spearheading our relationship with silver State government relations.
Also headed up.
Bye, Sir Adler, who.
It was really a champion for Aqua metals, and achieving our U S Department of agriculture $10 million loan that we repaid early to Derisk and establish our technology, we're working with her and silver state government relations.
As it relates to lithium battery.
Discussions with local and national politicians.
Justin Chen also joined US as our Asia Pac Regional leader Justin comes from a deep background of lithium ion space and it's also helping us with our efforts with Acme in Taiwan and building those relationships with acme's customers. We also shipped the first shipments.
Two.
Acme metals and expect soon to be in the installation and commissioning efforts later this year.
Next slide number nine.
Summarizes the latest status of our really robust and strategic IP portfolio.
And you can see here the coverage being the blue dark Blue issued and allowed patents and then the lighter blue the pending patents really covering the space that we intend to operate it because remember our model as an enabler is technology and licensing and it's also strategically.
Beneficial because it's geographically unbound, and we could take off refining technologies anywhere in the world.
The next slide number 10 talks really about the lithium space and they're really truly massive market opportunity as lithium ion recycling grows the predicted volumes of used batteries really make it imperative that the recycling is done.
To begin with because today only 5% of lithium ion batteries are recycled the rest of it the art.
And the industry aims to get that to a 100% but to get there is one thing but to get there sustainably is another and that's back to the point of the technology that our underlying off refining technology enables and we'll be getting into some more detail on the differentiators there shortly but to summarize here, we really estimate our total addressable.
But to be about $10 billion by 2025, and 31 billion based on a.
2030 time frame and the Aqua refining recovery rates that we'll be getting into some more detail on so it's a very rapidly changing and growing new industry and it's going to be very complementary to the led industry.
In the sense of our business mission, because you've got an established led industry that were innovated and are working to evolve and then a new lithium ion battery recycling industry that we believe that we've got some really differentiating technology.
And to do justice to describe that technology I'm going to ask Ben tack or who is our chief engineering and operations officer to take everybody through the next two slides and described.
What it is about off refining that makes us special and unique so on the hand it over to Bert go ahead Ben.
Thanks, Steve.
When comparing aqua refinery to existing smelting operations and hydro operations underdevelopment Aqua refineries some clear advantages.
Smelting requires hazardous shipments to large scale smelters strategically located throughout the world.
Aqua refinery is quite modular and could eliminate that smelting also doesn't recover all of the metals and it has a high impact on the environmental and worker safety of the operators.
For hydro.
Scaling is one of the largest challenges at cost and that's driven by the mix of batteries, we have ability to set recipes for that mix as well as high chemical usage and high chemical output as a result of.
The different types of batteries coming in.
Refinery, however, can we cycle mechanicals.
And also recovers all of the metals and a very high value format, which could easily be sold back into the battery industry or into the metals industry, giving them flexibility and potential higher profits.
Moving on to slide 12.
Again.
<unk> operating costs is one of the big advantages and that's really driven by the reduced processing as well as the lower chemical usage compared to the other operators out there.
Refinery well, having that lower conversion costs also produces the highest value product output as a result of the high efficiency recovery of all the metal.
Higher than any of the other potential options out there as well as the types of formats that they are covered in.
Looking forward to the business model.
Again because of the modularity.
Cause of the environmentally friendly process. We can put this anywhere we can put this right next to the existing operators and support them in their growth.
Environmentally friendly way to produce high value metals can you saw back into the market.
The environmental and worker safety.
Impacts from a low temperature.
Lower processing lower chemical usage process.
Our our clear advantage for Aqua refinery.
And with that I'll turn it over to John go through the financials.
Thank you Ben.
Moving on to the financials, we ended the year in solid financial position and our expectations for the year, placing us in good shape.
The year to come.
Let me first make some comments on our balance sheet.
As of December 31, 2021, cash and working capital balances were $8 1 million and $8 4 million, respectively as compared to cash of $6 5 million working capital of $4 9 million as of December 31, 2020.
This places us in stronger financial strength at the end of this year as compared to the prior year.
We accounted for certain assets with a net book value of $2 6 million as assets held for sale.
These are noncore assets and are no longer necessary for our future operating plans in fact subsequent to year end, we sold some of these assets politico totaling approximately 800000 and an additional 600000 noncore equipment to other vendors.
As we've mentioned in prior quarters, we accounted for the lease to buy agreement with <unk> as a sales type lease as a component of the accounting for this agreement we recognized the fair value of the land in the plant of.
Of approximately $17 million of the lease receivable and.
And during the fourth quarter of 2021 clinical made their first required deposit of $1 million to $5 million.
The deposit is nonrefundable, however, it will be applied to the purchase price of the building at the time.
Is due in full.
We believe that when it co wants.
Wants to pay off the building later this year and in fact, they're incentivized to do so.
Accrued liabilities includes approximately $2 3 million in remaining costs to repair the plants.
Repairs were successful and the portion of the plant damaged by the fire now it's brand new and it is in great condition.
The plant was amazing and the cleanup and repair efforts were very successful when it goes put up their sign of getting close to beginning their installation of equipment.
Moving on to the income statement.
Cost of product sales increased approximately 28% for the 12 months ended December 31, 2021 as compared to the prior year cost of product sales for the year increased as a result of the plant cleanup costs in preparation for the lease and eventual cell the trick facility.
If we look just at the basic cost of product sales without the cleanup without the plant cleanup cost.
Our cost of product sales have been very consistent even for the last two years and we expect these costs to actually come down.
Somewhat in 2022.
During the 12 months ended December 31, 2021 research and development costs shifted to primarily lithium ion recycling.
As the lead recycling product development concluded while also decreasing overall for the year by approximately 9% compared to 2020.
Our research and development is a key part of our business strategy includes our focus on continuous product improvement of the company's proprietary technology for lead acid battery recycling and further advancing our development related to the application of work refining to the lithium ion batteries.
General and administrative expense increased approximately 8% for the 12 months ended December 31 2021.
Compared to the 12 months ended December 31 2020.
The increases in general and administrative expense included changes in stock based comp in addition to increasing legal expenses insurance premiums.
G&A expense had been consistent.
Likewise for the last two years and in line with our expectations.
In conjunction with our year end accounting, we recognized a non cash impairment charge for the years ended December 31, 2021 and 2020.
A 5.5 million and 11.7 million respectively. Subsequent to an analysis of our fixed assets and the write down.
It's a fair market values.
We recognized a loss on the sale of assets held for sale of approximately $1 4 million. During the year ended December 31, 2021, as a result of disposals completed in conjunction with the plant cleanup.
In addition, we recognized a loss on the sale of assets of $3 5 million recognized in conjunction with the county for the lease to purchase arrangement for the Companys Mccarran, Nevada facility.
Net loss for the year was a negative $18 2 million and basic and diluted net loss per share was a negative 26.
For sure and that was in line with our management guidance and expectation.
Just report the company does have a federal NOL carry forward of approximately 135 million.
Of which they do not start expiring until 2034.
My final comments are related to cash flows.
Our net cash used in operating activities for the year ended December 31, 2021, and December 31st 2020 was $7 6 million and $11 million respectively.
Covers our opex and our G&A cost and was adjusted for noncash items.
The details of which are in our 10-K.
We don't see a cash used for operations growing in the near term.
Even with adding new hires and strategic consultants, who add to our bench strength and our team. We believe that these costs will be these.
These increases in costs will be partially offset by reduced costs elsewhere, such as reduced costs as we moved out of the plant early this year.
Net cash used in investing activities for the year ended December 31, 2021 was $2 2 million compared to the prior year of $6.6 million.
Net cash in investing activities. During these periods consisted.
Primarily.
Purchases for fixed assets and insurance proceeds received.
And then finally net cash used for net cash provided by financing activities for the year ended December 31, 2021 consisted of $10 2 million net proceeds from ATM share sells the majority of the ATM proceeds happened in Q1 with a very.
Little used the remainder of the year.
And our strategy with the ATM has been seems to be the we tried to use it when there's only.
Strategic opportunities to invest.
I will now turn the time over to the moderator to begin the question and answer portion.
Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is in the question queue.
You May press star two if you'd like to remove your question from the queue for.
All participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.
As a reminder, you may submit questions via the web or by using the ask a question feature on the side of your screen.
Our first question comes from the line of Colin Rusch with Oppenheimer. Please proceed with your question.
Thanks, so much guys.
Can we start with just a monthly cash flow just wanted to make sure. We fully understand how much you guys are spending on a monthly basis and when you are expecting in Monaco to actually close on the purchase of the building at this point.
They're calling for Jeff Thanks for the question.
So our monthly cash outflows have been very consistent with what we saw in 2021.
Which is about 700 to $750000 a month.
For G&A.
<unk>.
Now.
Had ad <unk>.
We've added some capabilities to our team.
But that number is not going to change a whole lot because we've been able to reduce some of our opex costs in other areas.
So that should be.
Pretty similar going forward, that's what we expect and then on the terms of politico.
They are incentivized to pay off the building by October one of this year.
So they have the option to either put a $2 million additional deposit and then the payout date would be stretch out to.
March of 2023.
But if they do that it cost us an extra million dollars. So they're incentivized to make that payment in October .
And we believe that they want to do that if they do that's $13 million that would be coming in.
You know in a couple of quarters from now.
Okay. That's super helpful. And then in terms of the process first and there is no one else, particularly on the lithium side can you talk a little bit about where you're at in terms of partnership development customer interest on this obviously theirs.
And an enormous opportunity for want to understand kind of as you can.
Get closer to technical validation, where you're at in terms of commercial.
Commercial relationships at this point.
Yeah, Colin Steve So thanks for that question and yes, we are engaged in both.
Sides of the ecosystem, we would call it on the feedstock side.
We already have feedstock coming in in the form of both black mass and in the form of lithium ion batteries for the lithium ion side of it.
Just we haven't announced anything specific to that at this point in time on the offtake side as we begin to generate materials. We're in lots of conversations because there's people that are quite interested the fact that we played in metals and that we create.
A really interesting combination of materials, including the compounds such as like a lithium hydroxide and so we are setting the stage for analysis at the materials that come off of our pilot systems, and we'll have more to say about the whole ecosystem side of things in the future.
Okay perfect. Thanks, so much guys.
Yeah.
Thank you.
Our next question comes from the line of Sameer Joshi with H C. Wainwright. Please proceed with your question.
Yes, Thanks, Steve Jud, Thanks for your time in taking my questions.
Yes.
The units that will be tested.
Tested right now.
We expect it to be operational by August of this.
This year.
What exactly is being done are you working on improving the yield or are you.
Working on improving the empirical attunity Devin.
Just and optimization improvement overall.
Yes. Thank you that's a great question. This is Ben.
We're currently working on optimizing the size of the layout of each piece of equipment.
We're actually running a lab scale operation.
<unk> size and dimensions as needed to allow it to meet that timeline that we are on target for.
Okay, Okay and in terms of.
Cost I think jetblue upward.
Costs.
The remaining stable over the next few quarters.
How much additional cost as this.
It also is taking the operations testing or is it included in the Opex and not capitalized.
Yeah. So there's a there's two pieces kind of well, there's an opex and that's.
These numbers are included in that.
What I said that the 700 to 750.
We do have additional R&D work that is related more to the lithium side.
That we did in last year was about $1 million, we'll see that increase a little bit this year.
A little bit to maybe even a little more but.
750 include that Opex related to the lead.
Work that we're doing.
Okay. Okay.
And then do you have milestones.
Internally, we set up to.
Is it as far as issue is concerned what are the next steps there should we expect any announcements about on any.
Whitestone so any.
Key events.
Yes, so it will be.
We showed the timeline slide showing the major milestones that we'll be talking about.
For the remainder of the year.
But there'll be.
As developments happen, we'll be providing information.
On the metals that we play and the progress that we'd make technologically throughout the process as well as commercial arrangements.
And things along those lines, so there'll be a continual update and communication stream to everybody as we worked through the year.
Got it and then one last one.
I think you own I don't Glenn Glenn.
Glenn close until swimming pool right now.
That's right.
Is that any possibility of increasing that further.
Or is that now.
<unk> reached a well.
Although what I believe to maximum.
Yeah. So the original agreement allowed us about 10%, which we actually.
And last year, and then we had some warrants that we could exercise to increase our ownership by 20%, which we did just recently and so we're sitting just around 12% ownership.
And then in the fall, we signed a collaboration agreements where there can be some work done.
So right now.
Those percentages will probably hold pretty steady.
You know obviously.
There's some great work that were.
Both doing together and so we'll see how that plays out but right now I don't I don't see any change in ownership.
Got it okay.
Thanks.
I will step back in queue.
Thanks Amir.
Our next question comes from the line of Shawn Severson with water Tower Research. Please proceed with your question.
Great. Thank you good afternoon, everyone.
Steve I was wondering when you look at the.
State and government targets, obviously spending more effort there what things are on the horizon are out there that would be.
Logical for you to go after in terms of grant funds or is this looking more regulatory environment or just kind of clarify where you've gone down that path.
Yes.
Thanks, Sean Theres, a lot of activity in that area and as I mentioned earlier in the presentation here, we brought in David <unk>, Our chief strategist, who is working with silver State government relations and it's it's a multi layered approach one is going for the traditional Boe.
Type a.
Grants and grants that are associated with the extraction of critical minerals are out there, there's more and more coming that are related to this area, particularly with the pass of the infrastructure Bill and there might be more down the line of build back better in some form or another gets passed but also we're working with.
Our local government folks here in Nevada, because Nevada is becoming quite the minerals state.
Originally called the silver state for that matter, but theres a lot of activity in this area and our local politicians.
We are quite interested in what we and other players are doing so we're interfacing with those those folks as well as on the Hill.
And inclusive of our neighbors state, California et cetera, So there's lots of activities on that front and it seems like not a week goes by where we're all learning of new things that are.
Loan related grant related et cetera. So there's no shortage of dollars that are being thrown into the electrification space and we see Aqua metals is in a great position to to pick.
Some of those funds, which will be great for all of us are shareholders, because it's not it's non dilutive.
Totally.
Next question is also having a conversation with a battery company. The other day and the topic came up really about them, having interest in recycling their own lithium metal lithium ion batteries and as we started thinking about it.
Wondering where in your world, where the the drivers by come from for something like this I mean, if you had conversations with automotive our automotive Oems thinking about this like look we want to recycle our batteries, we want to we want a path and track that it and reuse. It on some of the same with a battery company or is that something that.
Seem to have traction or I'm trying to understand is this one of the strengths of kind of a cost spread on commodity model for recycling.
So it's interesting question because you know when you look at that ecosystem. So manufacturers, there's EV manufacturers and there's even a major users of lithium batteries that are out there.
That debt are interested some in verticalizing, such as you said, which is recycling their own batteries that either they make where build packs from or distribute and use and collect so some of the opportunities. We're talking to are looking at that full vertical <unk>, what's great about our business model is that we are an enabler and we can help those parties.
Fully vertically integrated if they so choose.
Or if they would like to work with us on a joint venture or other forms too.
Apply our technology in their space that that is another way of doing it look at <unk> as an example.
We have a co ownership of clinical.
So that's one example of where we've taken the other models. So again our model is really geographically inbound, but also kind of business model unbound and the key to it all is making sure that our technology, which we think is going to extract the highest value materials with the least amount of waste streams.
Is gonna be quite appealing as we continue these conversations with players in each and every category. So.
So it's gonna be exciting years, we get worked through all of these meetings and discussions to see how the commercial pieces of the of our.
Our efforts come together.
Thanks. My last question is maybe more Brooklyn is co management than you but.
What types of things should we expect out of them and your relationship there as we look forward I, you know timeline roadmap and I know they are running their own business, but what can we look forward that's relevant to.
Aqua metals coming out of there over the next six months or 12 months.
Yeah. So so as we say we're going to be getting our pilot operating later this year that will go from the black mass forward, what you'll see with Lin It go or things about equipment being turned on in the facility to begin their focus which is on the battery collection, breaking separation and creation of that black mass.
And <unk> will provide those updates for atlantica will provide our updates for our technology as it goes into that facility.
And it's really a great partnership because it's quite a quite an effort to do with the equivalent of the spoke which is the battery breaking and separation black mass creation.
And you know that the hub, but part of it which is really our technology combined so we will communicate more about the hub they will communicate more about the spoke and they will communicate more about the overall integration of the two in their facility.
Alright, Thanks, Steve I'll take the rest of my questions offline.
Okay great.
Thanks.
Okay. Thanks for that Steve we have no other questions in the queue for the <unk>.
Unfortunately, now, but we do have a few questions in the queue online and actually I think the question that we will start with is the one that you sort of just addressed but maybe expand on it and the question is political has been promoting their own in house process for lithium recycling can you clarify what portion of the process is when it closes.
And what portion is expected to be Aqua metals.
Yes so.
The <unk> focus is really on the battery breaking and separation and creating them.
They and we consider a very innovative.
Way of creating a superior black mass product, which again is the amalgam of all the metals.
And compounds that can be extracted.
What were really stepping in to do is to focus and take that black mass for word.
Towards the extraction of the various minerals and compounds.
And Ben you may have something to add.
On that front.
No I mean, one of the great things about political processes, we've been able to work directly with their engineers.
Setup their front end process to allow us to to come in and take their black mask and a fast track.
Metals.
And to help recover all of the metals out of the black mastering.
Okay Super Thank you.
Just sticking with clinical then there's a question in terms of where do they get their feedstock and that he currently have any contracts with.
Battery companies that they received their feedstock from.
Yeah. So it was aqua metals, we won't really release feedstock agreement information and speak on their behalf but.
Rest assured that theres plenty of discussions that they and we are assisting them with are having with various feedstock providers. So I think.
People will see communications around that piece of it as we worked through the year.
Okay Super Thank you for that.
No I've got a few questions around this topic. So maybe what I'll do is I'll just paraphrase all the questions into one and then you could.
Colin or give us.
And so and it's regarding Acme.
Regarding the timing of alchemy, and then at what point does actually begin to scale and potentially generate revenues for you.
Yeah. This is Dan I'll take that question.
At me as Theyre, receiving equipment right now on site.
By pairing for an install that will start here really Q2, and the completion of that install in Q2 with commissioning starting late Q2.
At the end of commissioning is when we'd really see that thing scale to its full potential.
Okay. Thank you.
There are no further questions in the queue that I don't believe you've addressed during.
During this question and answer period.
Some closing comments for you then and I guess, we'll end the call.
Yeah. So thanks.
Anybody for attending and again, we will be providing news updates throughout.
In between these calls and we're really excited about some of the milestones that we have ahead I think everybody knows what we're after and I think that.
You guys can all just stay tuned and please stay in touch with the company make sure you subscribe to our Twitter feed.
If you Havent already and we look forward to talking next quarter at a minimum.
Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.