Q3 2023 Aqua Metals Inc Earnings Call
Good afternoon, and welcome to the Aqua metals third quarter financial results Conference call.
Speaker 1: Good afternoon and welcome to the Aqua Metals third quarter financial 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 can submit a question via the web at any time by typing them into the ask a question field.
Speaker 1: At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
Speaker 1: You can submit a question via the web at any time by typing them into the Ask a Question field.
Please note this conference is being recorded.
Speaker 1: It's now my pleasure to turn the call over to Bob Myers of FNKIR. You may begin, Bob.
It's now my pleasure to turn the call over to Bob Myers, Our F N K I R. Maybe begin Bob.
Speaker 2: Thank you, operator, and thank you everybody for joining. Earlier today, Aqua Metals issued a press release providing an operational update and discussing financial results for the third quarter and its September 30, 2023. This release is available in the investor relations section on the company's website at aqua-metals.com.
Thank you operator, and thank you everybody for joining earlier today Aqua metals issued a press release, providing an operational update and discussing financial results for the third quarter ended September 30th 2023.
This release is available in the Investor Relations section on the company's website at Aqua metals dotcom.
Hosting the call today are Steve Cotton, President and Chief Executive Officer, and Judd Merrill Chief Financial Officer.
Speaker 2: Hosting the call today are Steve Cotton, President and Chief Executive Officer, and Judd Merrill, Chief Financial Officer.
Speaker 2: Before we begin, I would like to remind participants that during the call, management will be making forward looking statement.
Before we begin I would like to remind participants that during the call management will be making forward looking statements.
Speaker 2: Please refer to the company's report on Form 10-K filed March 9th, or Form 10-Q filed today, November 8th, for a summary of the forward-looking statements and the risks, uncertainties, and other factors that could cause the actual results to differ materially from those forward-looking statements.
Please refer to the company's report on Form 10-K filed March 9th or Form 10-Q filed today November eight 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.
Speaker 2: Aquametals cautions investors not to place undue reliance on any forward-looking statement.
Aqua metals cautious cautions investors not to place undue reliance on any forward looking statements.
Speaker 2: The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or un-intisputated events as they occur except as required by law.
The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances.
I didnt anticipated events as they occur except as required by law.
Speaker 2: As a reminder, after the formal remarks, we will be taking questions. Questions will be accepted over the phone from analysts, and all other investors can submit a question using the online webcast portal provided in today's and last week's press release.
As a reminder, after the formal remarks, we will be taking questions questions will be accepted over the phone from analysts and all other investors can submit a question using the online webcast portal provided in todays in last week's press releases.
Speaker 2: We will take as many questions as we can in our available time slot.
We will take as many questions as we can in our available time slot.
Speaker 2: And with that, I'd like to turn the call over to Steve Cotton, CEO of Aqua Metals. Steve, the call is yours.
And with that I'd like to turn the call over to Steve Cotton.
E O of Aqua metals.
The call is yours.
Thank you Bob and thank you to everyone, who joined US today, our strategy focus is paying off as we have made significant progress in commercializing our innovative technology. This strategy honed it lessons learned as the industry has matured it's based on self sustainability and measured growth. The rechargeable battery industry is still in its early stages.
Speaker 3: Thank you, Bob, and thank you to everyone who joined us today. Our strategy focus is paying off as we have made significant progress in commercializing our innovative technology. This strategy honed on lessons learned as the industry is matured, is based on self-sustainability and measured growth. The rechargeable battery industry is still in its early stages and is susceptible to growth in the electrification of cars, the slow expansion of a charging infrastructure, and technological innovation in batteries themselves.
And is susceptible to growth in the electrification of cars.
The slow expansion of a charging infrastructure and technological innovation and batteries themselves. The overall trajectory. However remains steep but short term fluctuations in growth rates investments and commercialization are to be expected in contrast to others in the industry Aqua metals has built a strategy that can expand with multiple <unk>.
Speaker 3: The overall trajectory, however, remains steep. But short-term fluctuations in growth rates, investments, and commercialization are to be expected. In contrast, to others in the industry, Aquabinoles has built a strategy that could expand with multiple revenue streams, and a measured pace, and most importantly does not involve a singular massive capital expenditure.
Revenue streams at a measured pace and most importantly does not involve a singular massive capital expenditure.
Speaker 3: Unlike others, we do not plan to build first a massive and expansive plant requiring government grants or loans to succeed. Put another way, we do not need to spend a billion dollars in capex to make a billion dollars in revenue.
Unlike others, we do not plan to build first a massive and expansive plant requiring government grants or loans to succeed put another way, we do not need to spend $1 billion in capex to make $1 billion in revenue with our unique technology and engineering design. Our commercial plant is expected to require about half of that.
Speaker 3: With our unique technology and engineering design, our commercial plant is expected to require about half of the cap experts ton of our closest competitor due to the inherent efficiency of our process. And because our ability to scale at a meter pace requires half of the capital cost of other technologies, we have significantly greater flexibility in our funding mechanisms. We can certainly apply for government grants and loans, and we are doing so.
Capex for ton of our closest competitor due to the inherent efficiency of our process and because of our ability to scale at a metered pace requires half the capital cost of other technologies, we have significantly greater flexibility in our funding mechanisms. We can certainly apply for government grants and loans and we are doing so if those.
Speaker 3: If those avenues do not come to fruition, we can use traditional debt to finance our growth because we will be in a better position to service that debt due to our greater efficiency and the significantly smaller capital needs.
Avenues do not come to fruition, we can use traditional debt to finance our growth because we will be in a better position to service that debt due to our greater efficiency and a significantly smaller capital needs.
Speaker 3: Additionally, partnerships, joint ventures, and similar structures create a viable pathway to scaling. And finally, our industry involves valuable tax credits which create additional monetization pathways that are available to us due to our lower-capics requirements and not to others.
Additionally, partnerships joint ventures, and similar structures create a viable pathway to scaling and finally, our industry involves valuable tax credits, which create additional monetization pathways that are available to us due to our lower capex requirements and not to others.
Speaker 3: Simply put, we have the strategy in place, supported by the right partners based on the previously announced expansion of our campus recycling facility in Tahoe, Reno, Nevada and the projects we have announced with key partners to succeed.
Simply put we have the strategy in place supported by the right partners based on the previously announced expansion of our campus recycling facility in Tahoe, Reno, Nevada, and the projects, we have announced with key partners to succeed we are not overextending ourselves either financially or strategically and we are developing multiple pathways to near term.
Speaker 3: We are not overextending ourselves, either financially or strategically, and we are developing multiple pathways to near-term success. As we watch the challenges of others in our industry amidst this environment where the cost of capital is high, we increasingly believe that our strategy is the right one. Let me speak to the expansion of our partners in the industry.
Success as we watched the challenges of others in our industry of amidst this environment, where the cost of capital is high we increasingly believe that our strategy is the right one.
Let me speak to the expansion of our partner ecosystem.
Speaker 3: Expanding our relationships with partners is a critical part of our commercialization strategy and we have made significant progress in this area. As an IP company, our strategy involves Aquametals positioned as an owner operator and also licensing our proven technology to partners. Licensing represents a highly capital-efficient way to grow revenue and profitability.
Expanding our relationships with partners is a critical part of our commercialization strategy and we have made significant progress in this area as an IP company. Our strategy involves aqua metals positioned as an owner operator and also licensing our proven technology to partners licensing represents a highly capital efficient.
Way to grow revenue and profitability during.
Speaker 3: During the third quarter, Dragonfly Energy announced it had successfully used high-purity lithium hydroxide recovered by Aqua Metals from recycled lithium-ion batteries.
During the third quarter Dragonfly energy announced it has successfully used high purity lithium hydroxide recovered by Aqua metals from recycled lithium ion batteries.
Speaker 3: to manufacture a lithium-based battery cell using dragonflies patented dry battery electrode coating technology. This is a major milestone for aqua metals and its partners, proving that we can deliver a closed lithium loop right here in Nevada, sourcing, manufacturing, and recycling key lithium battery materials all within the state.
The manufacturer of lithium based battery cell using dragonflies patented dry battery electrode coding technology. This is a major milestone for Aqua metals and his partners proving that we can deliver a closed lithium loop right here in Nevada sourcing manufacturing and recycling key lithium battery materials all within the state.
We also secured a strategic investment and partnership with South Korea based yoho in their Yoho materials Division. This partnership is intended to expand our geographic footprint to licensing of our lithium arc refining technology and Youll hose plant in South Korea. This is a large project and we are working closely.
Speaker 3: We also secured a strategic investment in partnership with South Korea-based Yulho and their Yulho Materials division. This partnership is intended to expand our geographic footprint through licensing of our lithium-ion refining technology in Yulho's plant in South Korea. This is a large project, and we are working closely with Yulho, giving them sufficient time to complete their belt out of their first black mass processing facility and ramp operations.
With yoho, giving them sufficient time to complete their build out of their first black mass processing facility and ramp operations. We are targeting to complete a licensing agreement with yoho in the first part of 2024.
Speaker 3: We are targeting to complete a licensing agreement with Yuho in the first part of 2024.
Speaker 3: Recently, we advanced our previously advanced plans with 6K energy and subsequently signed a multi-part memorandum of understanding that enhanced the scope of our collaboration.
Recently, we advanced our previously advanced plans with 6K energy and subsequently signed a multipart memorandum of understanding that enhance the scope of our collaboration the agreement outlines a future joint venture to co locate our lithium battery recycling facility with 6K in the eastern United States to be engineered in opera.
Speaker 3: The agreement outlines a future joint venture to co-locate a lithium battery recycling facility with 6K in the eastern United States to be engineered and operated by Aqua Metals.
Rated by Aqua metals, the plant will support 6K Energy's proprietary unit belt sustainable Cam manufacturing process that significantly reduces carbon pollution and waste stemming from the battery supply chain. This is another prime example of the value proposition that Aqua metals provides to our potential partners and customers we expect to.
Speaker 3: The plant will support 6K energies for proprietary unimelt sustainable cam manufacturing process that significantly reduces carbon pollution and waste stemming from the battery supply chain. This is another prime example of the value proposition that AquaMetals provides to our potential partners and customers. We expect to finalize the formal supply agreement with 6K by the end of this year.
Is the formal supply agreement with 6K by the end of this year.
Speaker 3: We believe that these partnerships, strategic investments and achievements serve as powerful validation for our technology, our strategy, and our position in the marketplace. And as a result of our partner ecosystem, we have agreements in place to receive Black Mass as we expand capacity at our own commercial campus. We have multiple partners to purchase our recycled components.
We believe that these partnerships strategic investments and achievements serve as powerful validation for our technology, our strategy and our position in the marketplace and as a result of our partner ecosystem, we have agreements in place to receive black mass as we expand capacity at our own commercial campus, we have multiple partners to purge.
Our recycled components. So buyers for output is not likely to be a challenge effectively we have created a closed loop significantly derisking. Our business model. We are squarely focused on building a circular supply chain that is sustainable with everything we produce aligning with battery manufactured qualifications.
Speaker 3: So buyers for our output is not likely to be a challenge. Effectively, we have created a closed loop significantly de-risking our business model. We are squarely focused on building a circular supply chain that is sustainable with everything we produce, aligning with battery manufactured qualifications for steadily increasing our IRA incentives.
For steadily increasing our I R a incentives.
Speaker 3: These incentives, as I mentioned earlier, can serve as another tailwind for our core strategy.
These incentives as I mentioned earlier conserve as another tailwind for our core strategy.
Speaker 3: In the third quarter, we generated modest revenue from the sale of some inventory. We also generated modest revenues from our NRE or non-recurring engineering fees associated with our Lithium Aquerie Finding Program.
In the third quarter, we generated modest revenue from the sale of some inventory. We also generated modest revenues from our NRA or nonrecurring engineering fees associated with our lithium Aqua refining program. However, our primary focus is on scaling our lithium ion battery recycling business, enabling us to reach.
Speaker 3: However, our primary focus is on scaling our lithium ion battery recycling business.
Speaker 3: enabling us to reach sailable truckload quantities and materials while retaining samples to provide to partners like 6K and Dragonfly so they can develop and execute their own testing program.
Sellable truckload quantities of materials, while retaining samples to provide to partners like 6K, and dragonfly. So they can develop and execute their own testing programs.
Speaker 3: A truckload of materials is approximately 20 tons. We expect to begin producing saleable quantities and materials from our sear arc in the second half of 2024 and expect significant and consistent growth in revenues from recycled materials beginning in 2025.
Truckload and materials is approximately 20 tons, we expect to begin producing salable quantities of materials from our Sierra arc in the second half of 'twenty 'twenty, four and expect significant and consistent growth in revenues from recycled materials beginning in 2025.
Speaker 3: The build-out of our Sierra Arc in Tahirino is progressing as planned.
The build out of our Sierra arc in Tahoe Reno is progressing as planned we have black mass input material and funding to begin the commissioning for this expansion and we are pursuing non dilutive financing options for the remaining amounts our primary strategy for this is in the form of our already submitted the USDA loan guarantee application that includes strong.
Speaker 3: We have black mass input material and funding to begin the commissioning for this expansion, and we are pursuing non-deludent financing options for the remaining amount.
Speaker 3: Our primary strategy for this is in the form of our already submitted USDA loan guarantee application that includes strong third-party validation in the form of a feasibility study of our overall business and strong third-party validation by a global engineering firm, ICF, in the form of a detailed technical life cycle analysis and validation of our novel process.
<unk> third party validation in the form of a feasibility study of our overall business and strong third party validation by a global engineering firm ICF in the form of a detailed technical lifecycle analysis and validation of our novel processes. This package also includes detailed line by line hard quote.
Speaker 3: This package also includes detailed line by line hard quotes for the entire phase one build out Already underway of the Sierra Arc which gives us great confidence in the overall cost
For the entire phase one build out already underway of the Sierra arc, which gives us great confidence in the overall costs in the event. The USDA loan guarantee does not work out for US we have solid alternative debt based backup plans in the works.
Speaker 3: In the event the USDA loan guarantee does not work out for us, we have solid alternative debt-based backup plans in the works.
Speaker 3: I'd add that the government grants we are pursuing are for new lines of business, not for the core business with the ARC, and we are not dependent on securing those particular grants to move forward with the ARC. If successful, those grants will accelerate our overall expansion effort.
I'd add that the government grants, we are pursuing are for new lines of business not for the core business with the arc and we are not dependent on securing those particular grant to move forward with the arc is successful those grants will accelerate our overall expansion efforts, we raised capital in the third quarter and successfully strengthened our balance sheet to carriers.
Speaker 3: We raised capital in the third quarter and successfully strengthened our balance sheet to carry us through market fluctuations that can be expected. With our flexible business model and funding options that are not solely reliant on government entities, we believe we are well positioned to execute.
Through market fluctuations that can be expected with our flexible business model and funding options that are not solely reliant on government entities. We believe we are well positioned to execute.
Speaker 3: In summary, we said that 2023 was the year that we said we would transition from pilot phase to commercialization, and that initiative is well underway and accelerating. We have successfully proven our technology at pilot scale and have leveraged that success to numerous announcements developing partnerships. We have secured input and offtake partners with more coming.
In summary, we said the 2023 was the year that we said we would transition from pilot phase to commercialization and that initiative is well underway and accelerating we have successfully proven our technology at pilot scale and have leveraged that success to numerous announced in developing partnerships, we have secured input and offtake partners with more.
Coming we are scaling operations in a measured and phased way to minimize capital expenditures and limit risk, we have a healthy balance sheet and a growing number of options to secure the remaining growth capital. Our strategy is rapidly coming together and we believe that 'twenty 'twenty four will be a watershed year for Aqua metals.
Speaker 3: We are scaling operations in a measured and phased way to minimize capital expenditures and limit risk. We have a healthy balance sheet and a growing number of options to secure the remaining growth capital. Our strategy is rapidly coming together and we believe that 2024 will be a watershed year for Aqua Metals. I look forward to sharing further updates with you all soon. And now I'm going to turn it over to Judd Spamaryl, our chief financial officer, to discuss the results for the third quarter.
I look forward to sharing further updates with you all soon and now I'm going to turn it over to Judd Merrill our Chief financial officer to discuss the results for the third quarter.
Speaker 4: Thanks, Steve. Let me start my comments with our balance sheet. As of September 30, 2023, we had total assets of $42 million and working capital of $23.1 million. We ended the quarter with total cash of approximately $25.6 million.
Thanks, Steve.
Let me start my comments with our balance sheet as of September 32023, we had total assets of 42 million and working capital of $23 1 million.
We ended the quarter with total cash of approximately $25 6 million.
Speaker 4: During the quarter, we completed a public offering of approximately 18 million shares, resulting in 20 million of gross proceeds.
During the quarter, we completed a public offering of approximately 18 million shares resulting in $20 million of gross proceeds.
Speaker 4: In addition, we entered into an agreement to execute a license agreement with UAHL, which included UAHL investing $5 million into AquaMetal.
In addition, we entered into an agreement to execute a license agreement with U haul, which included Youll investing 5 million into the Aqua metals.
Speaker 4: This capital supports our plan for phase one of our 10,000 ton per year campus facility.
This capital supports our plan for phase one of our 10000 ton per year campus facility.
Speaker 4: There were no other significant changes on the balance sheet since our last quarterly report. So, I'll move to the income statement.
There are no other significant changes on the balance sheet since our last quarterly report.
I'll move on to.
The income statement.
Speaker 4: In Q3, we were focused on advancing and executing our operations at our pilot facility. The costs related to operating this facility were approximately $1.8 million for the quarter. We generated a small amount of revenue, as Steve mentioned, primarily related to the cell lead inventory.
In Q3, we were focused on advancing and executing our operations at our pilot facility.
The costs related to operating this facility were approximately $1 8 million for the quarter, we generated a small amount of revenue as Steve mentioned, primarily related to this outlet inventory.
Speaker 4: We also recorded modest service fees from our development agreement with 6K. Those fees are recorded in other income.
We also recorded modest service fees from our development agreement with six games those fees are recorded in other income.
Speaker 4: research and development costs decreased approximately 21% compared to the quarter ended September 30th, 2022. Included in R&D expenses are costs related to our agreement with 6K.
Research and development costs decreased approximately 21% compared to the quarter ended September 32022.
Included in R&D expenses are costs related to our agreement with 6K.
Speaker 4: General and administrative expenses increased approximately 7.8% for the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022, in line with expectations and guidance.
General and administrative expenses increased approximately seven 8% for the quarter ended September 32023, compared to the quarter ended September 32022 in line with expectations and guidance.
Speaker 4: for the third quarter of 2023, we had an operating loss of $4.9 million compared to an operating loss of $3.9 million for the same period in 2022.
Well the third quarter of 2023, we had an operating loss of $4 9 million compared to an operating loss of $3 9 million for the same period in 2022.
Speaker 4: Our net loss for the quarter was $4.5 million or a negative $0.04 per basic and diluted share compared to a net loss of $3.9 million or a negative $0.05 per basic and diluted share for the same period in 2022.
Our net loss for the quarter was $4 5 million or and then you get a four cents per basic and diluted share compared to a net loss of $3 9 million or a negative five cents per basic and diluted share for the same period in 2022.
Speaker 4: Moving to the cash flow statement, cash provided by operating activities for the quarter ended September 30th, 2023 was $2.2 million and consisted primarily of cash received from the cell of our old lead recycling facility.
Moving to the cash flow statement cash provided by operating activities for the quarter ended September 32023.
It was 2.2 million and consisted primarily of cash received from the sale of our old bad recycling facility.
Net cash used in investing activities for the quarter was $6 3 million. This consisted mainly of $4 3 million utilized towards the purchase of our campus property and $1 8 million of equipment, primarily related to the build out of our first commercial demonstration facility.
Speaker 4: Net cash used in investing activities for the quarter was $6.3 million, which consisted mainly of $4.3 million utilized towards the purchase of our campus property and $1.8 million of equipment primarily related to the build out of our first commercial demonstration facility.
Net cash provided from financing activities was $22 6 million for the quarter.
This consisted of $3 8 million in net proceeds from the sale Aqua metals shares pursuant to that the market offering.
Speaker 4: 2.9 million in proceeds from the loan agreement secured with Summit Investment, and 18.3 million in net proceeds from our July 23rd, 2023 public offering, and 4.6 million in net proceeds from the U-Haul transactions.
$2 9 million of proceeds from the loan agreement secured with some investment in.
And $18 3 million in net proceeds from our July 23rd 2023, public offering and $4 6 million in net proceeds from the U haul transaction.
These include inflows were offset mainly by the 6 million used to pay off the note payable as reported in note 11 of our 10-Q report.
Speaker 4: These inflows were offset mainly by the 6 million used to pay off the no payable as reported in note 11 of our 10-Q report.
Speaker 4: We have bolstered our balance sheet and are managing our cash widely by actively reviewing and considering every dollar spent. One of the positives of higher interest rates is that we are earning a nice return on the cash balance we currently have in the bank.
We have bolstered our balance sheet and are managing our cash wisely by actively reviewing and considering every dollar spent.
One of the positives of higher interest rates is that we are earning a nice return on the cash balance. We currently have in the bank.
Speaker 4: We believe that 2024 is an important year as we finish construction and begin production at our first commercial demonstration plant.
We believe that 2024 is an important year as we finish construction and began production at our first commercial demonstration plant.
Speaker 4: It is an important milestone as we believe that the plant will generate positive cash flows for the company. As we noted in our 10-Q report, we believe that we will need additional capital to fund our proposed business plan beyond the next 12 months, including the completion of the Phase 1 build-out of our recycling campus at TRIG.
It is an important milestone as we believe that the plant will generate positive cash flows for the company.
As we noted in our 10-Q report we believe that we will need additional capital to fund our proposed business plan beyond the next 12 months, including the completion of the phase one build out of our recycling countless metric.
Speaker 4: and the start of our full-scale commercial operations.
And the start of our full scale commercial operations.
Speaker 4: We are actively pursuing non-dilutive options such as the USDA Government Guaranteed Loan for $25 million.
We are actively pursuing non dilutive options such as.
The USDA government guaranteed loan for $25 million. However.
Speaker 4: However, we are not reliant on the USDA loan, as we have been working on securing funds from other sources, such as from conventional lenders, the DOE, strategic partners, and possible dilutive options.
However, we are not relying on the U S E.
Alone and as we have been working on securing funds from other sources such as from conventional conventional lenders. The D. O E strategic partners impossible dilutive options or access to cash is key to ensure our funding success and bridges to positive cash generation.
Speaker 4: Our access to cash is key to ensure our funding success and bridges to positive cash generation as we expect from our first commercial demonstration plant. We are confident in our financial strength and our ability to execute on our business strategy. And with that, that concludes my remarks on the financials. I will now turn it back over to the moderator for Q&A.
As we expect from our first commercial demonstration plant, we are confident your financial strength and our ability to execute on our business strategy.
And with that that concludes my remarks on the financials I'll now turn it back over to the moderator for Q&A.
Speaker 1: Thank you. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, please press star one on your telephone keypad. You can also type your question over the webcast at any time by typing your question into the ask a question field. One moment please while we poll for questions.
Thank you well now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad. You can also type a question over the webcast at any time by typing. Your question into the ask a question field. One moment. Please while we poll for questions our first.
Speaker 1: Our first question is coming from Samir Joshi from H.C. Wainwright, your line is now live.
Question is coming from Sameer Joshi from H C. Wainwright your line is alive.
Speaker 5: Yes. Thanks for taking my questions. The CLR facility, can you remind us what capex has already been spent on it and what is the remaining amount to be spent on this?
Yeah, Thanks for taking my questions.
The Seattle facility.
Computer models, one capex has already been spent.
In one month.
Spend on this.
Speaker 4: Yes, this is Judd. The total capex for this project is just about $30 million, and so
As you know this is jed.
The total Capex was projects just about $30 million.
And so Inc. And this quarter, we spent about 1.8 million towards that.
Speaker 4: In this quarter, we spent about $1.8 million towards that.
Speaker 4: Um, and then, or that's the third quarter, um, and fourth quarter, we'll see that, uh, spend pick up quite a bit. Um, and with the, you know, the goal of getting that thing built, um, by early to mid Q2, uh, next year.
And that that's the third quarter and fourth quarter, we'll see that spend tick up quite a bit.
And with the you know the.
The goal.
Getting that thing built.
By early.
To mid Q2.
Next year.
Speaker 5: And that will be the phase one with around 3,000 tons per year capacity.
And that will be the phase one whipped around 3000 tons per year of capacity exactly.
Speaker 4: 3,000 tons of black mass processed per year, that's the capacity. Processed, oh, black mass processed, okay.
The 3000 tons of black mass process per year, that's the capacity Rob says Oh, that's not okay got it.
Speaker 5: So, just looking at the next 18, 12 to 18 months, what are the milestones that we should be looking at and also in the next six months between now and this facility coming online, what can investors expect to see? Should we see more relationships like 6K or Dragonfly or some other milestones?
So just looking at that.
The next 18 12 to 18 months.
What are the milestones that we should be looking at and also within the next six months between now and this facility.
What can this does expect to see.
Should we see more relationships like 60.
Our dragonfly or some other milestones.
Speaker 3: Yeah, so lots of milestones to come for 6K and Dragonfly will of course be progressing those relationships and we believe that we'll be announcing new relationships and partnerships both from the feedstock and offtake part of the ecosystem.
Yeah, so lots of milestones to come for <unk>.
6K in Dragon fly will of course, the progressing those relationships and we.
We believe that we'll be announcing new relationships and partnerships both from the feedstock and offtake.
Part of the ecosystem, so there'll be those commercial developments that are continuing to.
Speaker 3: So there'll be those commercial developments that are continuing to work through the cycle of engaging with these other parties. And really the tool that we're using to do that, of course, is not only our own organizational capability, but leveraging.
Worked through that.
The cycle of engaging with these other parties and really the tool that we're using to do that of course is not only our own organizational capability, but leveraging that people can come and witness our pilot operating and producing these materials.
Speaker 3: that people can come and witness our pilot operating and producing these materials.
Speaker 3: See it for themselves and those commercial partnerships will continue to progress. But of course, we'll also see the pilot progress into the Sierra arc facility, which is just about 1.8 miles down the road.
See it for themselves.
Oh, those commercial partnerships will continue to progress but of course, we will also see the pilot progressed into the Euro arc facility, which is just about 1.8 miles down the road.
Speaker 3: Uh, from the pilot operation, as Judd was mentioning earlier, that is expected to start coming online black mass material into it in Q2 of next year, which really isn't that far away. It's only a matter of a few months.
From the pilot operation as Judd was mentioning earlier that is expected to start coming online.
Like mass material into it in Q2 next year, which really isn't that far away its only a matter.
A few months until we begin to start.
Speaker 3: until we begin to start commissioning and then ultimately producing tonnage of materials from that facility. So we'll see that type of progress. And then further with our existing relationships, I mentioned 6K and Dragonfly, but also our licensing partner and investor, Yulho Materials.
Commissioning and then ultimately producing tonnage of materials from from that facility. So we will see that type of progress.
Then further.
With our existing relationships I've mentioned 6K in Dragon fly, but also our licensing partner in Investor Yoho materials in South Korea, we anticipate that we'll be able to work out the details of the licensing agreement tied.
Speaker 3: In South Korea, we anticipate that we'll be able to work out the details of the licensing agreement tied to some due diligence that both parties are completing, inclusive of our business and technical trip we'll be making to South Korea soon.
Tied to some due diligence that both parties are completing inclusive of our business.
Business and tactical trip will be making to South Korea soon and we'll be able to announce some news there on the financial development side and continuing to keep that balance sheet strong jud.
Speaker 3: and we'll be able to announce some news there. On the financial development side, and continuing to keep that balance sheet strong, Judd mentioned where we are with the USDA loan application, which we're very confident in.
Jud mentioned, where we are with the USDA loan application, which we're very competent in but.
Speaker 3: But we also have alternatives, too, that don't have quite as nice terms as USDA has for the loan guarantee program. But we will see continued strength of the balance sheet as we progress through the year.
But we also have alternatives.
To that that don't have quite as nice terms as the USDA.
For the the loan guarantee program, but you'll see continued strength of the balance sheet as we progressed through the year as our as our planned a set of milestones.
Speaker 3: as our planned set of milestones.
Speaker 5: And just, I know you mentioned this, but just wanted to clarify.
Uh huh.
I know you mentioned.
Okay cool.
Speaker 5: The additional funding that you are seeking is not required for the completion of the phase one of the theater art.
Ooh Ooh funding, but you'll see.
It's not required.
He is one.
That's correct.
Speaker 4: So, as a matter of fact, if I got the question, right, you're talking about the funding for phase one cap X. Is that right? Yes. Yes.
So some here, but if I got the question right you were talking about the funding for phase one capex is that right, yes, yes, yes.
Speaker 4: Yeah, so we do need, we do require, you know, either the US, Yale or, all right, some type of data or instruments to complete that project.
So we do need we do.
Require.
Either the USDA or Iraq on some type of debt instruments.
To complete that project.
Speaker 4: You know, we ended the quarter with just almost $26 million in cash, but the bigger cash outlays for the CapEx are coming in the next few months, and so that's what we've been working towards to make sure that we ensure that we have the funding to do that. And the intent is to do that with the debt finance that we have.
We ended the quarter with just almost twice 6 million in cash, but the bigger cash outlays for capex or are coming in the next few months. So that's what we've been working towards to make sure that we.
Ensure that we have the funding to do that and the intent is to do that with them.
With a debt finance.
Okay. So I'll go to new long lead items are about to be purchased small so don't you call them.
Speaker 5: Okay, so I've only long read items that can be purchased now so that you can have efficiently up and running mid-next year.
It shouldn't be up and running.
Next year.
Speaker 3: We already did purchase the really long lead items last year, which is the switch gear. There's a global supply chain challenge with getting a switch gear. That's the equipment that takes the main power from the power drop to a facility that distributes the power throughout the facility.
We already.
Purchase a really long lead items last year, which is the switchgear, there's a global supply chain challenge with getting a switch gear. That's the equipment that takes the main power from the power drop to a facility in distributed power throughout the facility. So we secured delivery.
Speaker 3: So, we've secured delivery dates of that for early next year. So, that long lead time has already been taken care of as well as the electrical supply itself other long lead time parts and materials have been ordered already. And that's what judge was talking about in terms of our cap expenditures ramping as we go.
The delivery dates of that early next year. So that long lead time has already been taken care of as well as the electrical supply itself other long lead time.
Parts and materials have been ordered already and that's what John was talking about in terms of our capex expenditures ramping as we go through the quarter.
Speaker 4: and Judd may have that. Yeah, I mean, a lot of what we've spent so far is putting deposits down on a long a wee time equipment once we've gone through the process of selecting the vendor and meeting with them. We spend quite a bit of time ensuring that we understand the sources, you know, and embedding them out and make sure that they fit our needs and then putting deposits down. So now we're moving into, you know, printing.
And Judd may have something that yeah, I mean, a lot of the what we've spent so far is putting deposits down on the long lead time equipment. Once we've gone through the process of selecting the vendor and meeting with them and we spent quite a bit of time, ensuring that we understand the sources.
Embedding them out make sure that they fit our needs and then putting deposits down.
So now we're moving into.
Bringing things on site and start the installation process.
Speaker 4: and start the installation process. So it's a lot of foundational work's been done. Now we're gonna be very rapid on installation and construction.
So it's.
A lot of foundational work has been done now we're gonna be very rapid on installation.
Understood.
Speaker 5: and just one more clarification. The revenue is roughly 25,000. These are from the web, but it's not too...
Just one more clarification.
25000 people.
From blood.
Hum.
Speaker 5: I'm not going to help or from begins or maybe I did not hear.
Hum.
Maybe I didn't want to hear it right.
Speaker 4: Yeah, there was there was a few sources of some cash coming in other than, you know, the raise that we did. But there's about twenty five thousand of lead inventory that we sold in the quarter. And there were some other income mainly related to our partnership of six case and the work we're doing with them. And so those kind of the big pieces of those, you know, amounts that came in during the quarter.
Yeah. There was there was a few sources.
Cash coming in other than they.
Raised up you did but there's.
There's about 25000, a lad inventory sold in the quarter, but there were some other income.
Mainly related to our partnership with six case and the work we're doing with them.
And so that was kind of the big pieces of those you know I'm a bounce that came in during the quarter.
Okay got it.
Speaker 1: Thanks for taking my questions. Good luck. Thanks, Samir. All right, thank you. Thank you. I'd like to turn the floor back over to Bob for further questions.
Thanks for taking my question so good luck.
Thanks, Amir alright, thank you.
Relative turn the floor back over to Bob for further questions.
Yeah.
Speaker 2: Thank you, operator. The first question. In your sector, there are companies announcing delays, cost over runs and layoffs.
Thank you operator, the first question in your sector. There are companies announcing delays cost overruns and lay offs can.
Speaker 2: Can you tell us how AquaMetals is able to navigate some of the recent market fluctuations and the ones we can probably anticipate?
Can you tell us how aqua metals is able to navigate some of the recent market fluctuations and the ones, we can probably anticipate.
Speaker 3: Sure Bob, and thanks for whoever asked the question. So,
Sure Bob.
And thanks for whoever asked the question so.
Speaker 3: Yes, as we've seen the EV sector and even energy transition is showing like any other nascent and rapidly growing industry not to have a linear growth.
Yes.
We've seen the EV sector.
And even energy transition is showing them like any other nascent and rapidly growing industry not to have a linear growth.
Speaker 3: But if you look at the year over year, shipment of ED, bottles announced, and energy storage systems announced being deployed, it is still growing and it's growing in a very rapid pace. But there is gonna be some undulation to that market. Others in the EV battery recycling space specifically do continue to pursue what we view is very capital intensive, loonshot types of approaches.
But if you look at the year over year shipments IBD models announced an energy storage systems are now being deployed it is still growing and it's growing at a very rapid pace, but there is.
I'm going to be some undulation to that market.
Others in the EV battery recycling space specifically.
You continue to pursue what we view as very capital intensive moonshot types of approaches.
Speaker 3: And we believe could potentially run into some continued challenges as you relate that to the undulation of the market. So that's why we set our strategy.
And we believe could potentially run into some continued challenges.
As you relate that to the undulations in the market and so that's why we set our strategy.
Speaker 3: And that really is a phased expansion plan and having a flexible business model. So we're not building gigantic initial facility, but one facility that will carry the company and be able to grow into the 3,000 tons to do that and get to the 10,000 tons with our first facility. The flexible business model allows us to have an opportunity to license our technology because we have.
And that really is a phased expansion plan and having a flexible business model. So we're not building gigantic initial facility, but one facility that will carry the company and be able to grow into the 3000 tons to do that and get to the 10000 tons with our first facility. The flexible business model allows us to have an opportunity to.
License, our technology, because we have the.
Speaker 3: The underlying IP that we've prosecuted to make sure that we could be in the business of even partnering and licensing our technology as evidence to buy our relationship with you low and expect it other license.
<unk> the underlying IP that we've prosecuted to make sure that we could be in the business of even partnering and licensing our technology as evidenced by our relationship with Euro and expected other licensees.
Speaker 3: We have lower capital requirements. We think about a half of what some of the others have because we don't have to have sodium sulfate, crystallization equipment that cost millions of dollars per facility and many other things that handle those waste streams are just not part of our process and so we can build for less.
We have lower capital requirements.
We think about a half of what.
Some of the others.
<unk>, because we don't have to have sodium sulphate crystallization equipment that cost millions of dollars per facility.
And many other things that handle those waste streams are just not part of our processes. So we can build for less and less capital we could scale rationally, particularly with our approach of modular building blocks.
Speaker 3: and less capital, we can scale rationally, particularly with our approach to modular building blocks.
Speaker 3: And we're also, we've designed a business to be not reliant on government grants or loans, but have that as being an upside to our core business plan by design. And so I think that really separates Aqua Metals from many of the other parties that are out there in the market is that we view all those types of programs as upside to our business, but not core to our business. And then the high-period product
And we're also we've designed the business to be done.
Not reliant on government grants or loans, but have that as being an upside to our core business plan by design.
And so I think that really separates aqua metals from many of the other parties that are out there in the market is that we.
Do you all those types of programs is upside to our business, but not core to our business.
And then the high purity products that we produce.
Speaker 3: can be get many buyers because we go to metals before we go to the salts and pre-cathod active materials that we will be working with, of course, with 6K energy to produce the cathod active materials. We can also sell those metals into the global metals markets. There's plenty of people that are quite interested in buying IPRD cobalt and nickel as well. So that hopefully provides a general answer to the overall sector question.
Can be get many buyers because we go to metals before we go to.
The salt and pre cathode active materials that we will be working with of course with 6K energy to produce the cathode active materials. We can also sell those metals into the global metals markets and there's plenty of people that are quite interested in buying high purity cobalt and nickel.
As well so.
That hopefully provides a general answer to the the overall sector question.
Speaker 2: Great, thank you. The next question, during the call you mentioned your catback.
Great. Thank you. The next question during the call you mentioned your Capex.
Speaker 2: could be about half of that of other companies in the industry. Are you able to expand on?
It could be about half of that of other companies in the industry are you able to expand on that.
Yes.
Speaker 4: Yeah, thanks for the question. You know, we look at kind of the public estimates out there for the competing hydro technologies.
Yeah.
Thanks for the question.
Look at kind of the public estimates out there for the computing Hydro technologies.
Speaker 4: You know, we said that our initial plant takes about 30 million catbacks, but the build out full campus is about 100 million total, including that 30 million catback.
We've said that our initial plans it takes about 30 million in capex, but to build out full campus is about 100 million in total including that 30 million in capex.
Speaker 4: And that's processing 10,000 tons of black mass per year. And based on what we're seeing, that's about half of what the other hydroprosps.
And that's processing 10000 tonnes of black mass per year and.
And based on what we're seeing in work that's about half of what the other hydro processes are.
Speaker 4: are, are, you know, quoting the public. And that's partly, you know, to be able to talk about, you know, we don't use the same amount of chemicals. So we save on all the storage space. We have lots of equipment, you know, we have minimal waste.
Or are you quoting the public and that's partly what Steve was talking about we don't use the same amount of chemicals. So we save on them all the storage space.
We have lots of equipment, you know we have minimum waste.
Speaker 4: We don't have big, you know, rooting furnaces, and we're not using one time use chemical. So that's what drives, you know, that significant reduction in cat-backs that we're seeing on our hands.
We don't have big you know, including furnaces, and we're not using onetime use chemicals. So that's what drives them.
You know that that's significant.
Reduction in Capex that we're seeing on our end.
Yeah.
Speaker 2: Great, thank you. The next question has several parts, so I'll try and address them one at a time. Many of the partnerships you have announced today have been seemingly overlooked by the market. Can you perhaps provide some more granularity on economics? Do light and agreements require...
Great. Thank you.
Next question and it has several parts so.
I'll try and address them one at a time.
Many of the partnerships you have announced to date have been seemingly overlooked by the market.
Can you, perhaps provide some more granularity on economics.
Since the agreements which require capex.
Speaker 2: What kind of royalty rate should we expect? And congratulations on the success so far.
What kind of Royal T rate should we expect.
And congratulations on the X on the success so far.
Speaker 3: Yeah, good question. So in terms of the partnerships that we've announced today, I should kind of take everybody through them one by one of what that means for the economic ultimately, for what that means for what metal.
Yeah.
Good question. So in terms of the partnerships that we've announced to date kind of take everybody through them one by one of what.
That means for the economics ultimately.
For what what that means for Aqua metals. So let's start with 6K energy as an example, we've already announced an mou to develop or co located facility to supply.
Speaker 3: So let's start with 6K Energy as an example. We've already announced an MOU to develop a co-located facility to supply.
Speaker 4: 6K energy enough material to have a significant depth in their supply chain for their 13,000 ton per year facility, this plus cam that starts in Jackson, Tennessee. We'll begin supplying that out of our facility right here in Tahoe, Reno. When the Sierra Arch is beginning to produce tonages of the materials, we're already supplying 6K energy with quite a bit of the materials that we produce for samples.
6K energy enough material.
To have a significant dent in their supply chain for their 13000 ton per year facility.
Plus Tam that starts in Jackson, Tennessee will begin supplying that out of our facility right here in Tahoe Reno when you see our arc is beginning to produce tonnage materials were already supplying 60 energy was quite a bit of the materials that we produce for samples that they're putting in the hands of ETE manufacturers sell manufacturers by taking the samples.
Speaker 3: If they're putting in the hands of ED manufacturers and so many factors by taking the samples that we provide, the connector technology that we get to non-recurring engineering deal with them to ultimately be able to do that. And then just to supply that facility.
Provide the connector technology that we get the nonrecurring engineering.
Deal with them.
To ultimately be able to do that and then as the supply of that facility should generate a yield initially tens of millions and then ultimately hundreds of billions of dollars of revenue for Aqua metals.
Speaker 3: should generate initially tens of millions and then ultimately hundreds of millions of dollars of revenue for all of that else. And so that's a very exciting
And so that's very exciting.
Speaker 6: supply agreement and not only in the sense that we can work with them to supply the materials that come off of our own facilities here in CERAR but also off of the facility that we jointly build and then we'll operate for them in the east coast for their plus camp facility. So lots of opportunity on that to hope shed some light on that relationship and we've already received revenue.
Supply agreement and not only in the sense that we can work with them to supply the materials that come off of our own facilities here in <unk>, but also off at the facility that we jointly build.
We will operate.
For them and B.
The east coast for their plus can't facility, so lots of opportunity.
That to shed.
Shed some light on that relationship and we've already received revenue.
Speaker 6: Effectively from 6K with the non-recurring engineering fees that we've been charging to develop the the connecting technology to get the metals into the material form that they can make their cathodic material.
Effectively from 6K with the other nonrecurring engineering.
Fees that we've been charging to develop the <unk>.
Connecting technology to to get the metals into that material for them that they can make their cathode active material.
Speaker 6: I'll move on now to Dragonfly Energy, who was local right here within the Tahoe Reno area. And it's obviously quite interested in getting lithium from aqua metals. And as previously announced, has already taken lithium from aqua metals and built and cycled lithium cell and proved that the lithium sustainably that we provided to them.
I'll move on now to Dragonfly energy, who was local bright here within the Tahoe Reno area and it's obviously quite interested in getting lithium.
From Aqua metals, and as previously announced has already taken lithium from Aqua metals and built in cycles.
He himself.
And proves that the lithium sustainably that we provided to them is a great material for them to use to produce new battery cells. So as they begin to scale their pilot line, which is a significant pilot.
Speaker 6: is a great material for them to use to produce new battery cells. So as they begin to scale their pilot line, which is a significant pilot, I was joked with them. Last time I checked 100 megawatt hour facility battery facility is not really up as much of a pilot. It's more of like a commercial demonstration plant. And that is going to be revenue generating for them and for the Rock with an ultimate supply of lithium for them to a significant.
I always joke with them.
Last time, I checked 100 megawatt hour facility battery facility is not really a oh.
Much of a pilot.
It's more of like a commercial demonstration plant and that is going to be revenue generating for them and for aqua metals and supply of lithium for them too.
To a significant degree.
Speaker 6: Then if we move on to you'll hold materials in South Korea they're working on completion of their initial 8,000 tons
And then if we move on to your whole materials in South Korea there.
Working on completion of their initial 8000 ton per year facility in South Korea that will take feedstock from the major battery makers in Korea is production.
Speaker 3: Per year facility in South Korea that will take seed stock from the major battery makers.
In Korea's production, the scrap feed stock.
Scrap feedstock and then build basically the twin of initially phase of our phase one facility and see her art and ultimately scaling back to their 8000 tons and that.
And then build basically the twin of initially phase of our phase one facility in CIR arc then ultimately scaling that to their 8,000 times.
And that can generate a lot of tens of millions of dollars of revenue for them, plus a significant percentage of that revenue coming back to offer the ultimate formal licensing and running real T.C.
That can generate a lot of tens of millions of dollars of revenue for them plus.
A significant percentage of that revenue coming back to Aqua metals in the form of licensing and running royalty fees.
They plan to expand that to a size of 24,000 tons per year, black mass production. And if we scale the equivalent of the CRR, ultimately, with them to that size, the silly, that's about a quarter of a billion dollars. Give or take, depending, again, on metals prices and things like that, that we could collect a significant percentage in the form of very high margin licensing.
We plan to expand that to a size of 24000 tons per year black mass production and if we scale. The the equivalent of the C or are ultimately with them to that size facility. That's about a quarter of a $1 billion give or take depending again on metals prices and things like that that we can collect.
A significant percentage.
And therefore very high margin licensing.
and running Royal T-Fees. And that's just really the beginning. There's many other parties that we're working with out there. They're also considering licensing our technology. And we're taking all the right steps to mutually get through those due diligence process discussions to make sure that those are good fits.
And running royalty fees.
It's just really the beginning there's there's many other.
<unk> that we're working with out there Theres also considering licensing our technology and we're taking all the right steps to mutually get through those due diligence process discussions to make sure that those are good fits.
as well as other opportunities for us to potentially deploy additional Aquameda's own and run facilities like we're doing with 6K Energy. So I hope that shed some light on what the economics for these deals looks like. And I'll just conclude that answer with that's a testament to the diversity of our business model to build on and operate and to license the technology.
As well as other opportunities for us to potentially deploy additional aqua metals owned and run our facilities like we're doing with 6K energy. So I hope that sheds some light on what the economics for these deals looks like and I'll just conclude that answer with that's a testament to the diversity of our business model to.
Build own and operate and to license the technology and anything kind of in between yes also known as a joint venture or co location.
and anything kind of in between, you know, also known as a joint venture co-location.
Great, thank you. Next question. Have you seen any decrease from commercial interest from potential partners?
Great. Thank you next question.
Have you seen any decrease from commercial interests from potential partners.
Given the recent and likely near-term downdrift in prices for some of the battery metal.
Given the recent and likely near term down drift in prices for some of the battery metals.
No, in short. So there might be a downturn like I was mentioning earlier, an undulation in the rapid growth of...
No in short so there might be a downturn like I was mentioning earlier undulation in the the rapid growth of the space, but.
But EV penetration is not a fad, it's happening, and it's happening, and it's about the speed of the growth rate, and all the cell manufacturers, needing manufacturers, working very hard to make sure that they can secure the tax-benefit domestically sourced mineral production, for which we're one of the only companies in North America already, if it's producing lithium as an example, as well as the other battery metals like the nickel and the cobalt, and so on.
But EV penetration is not a fad, it's happened and it's happening and it's about the speed of the growth rate and all the cell manufacturers and EV manufacturers working very hard to make sure that they can secure the tax benefited.
Domestically sourced mineral production.
For which we're one of the only companies in North America are right. It is producing lithium as an example, as well as the other battery metals like the nickel and cobalt so on.
So we have seen no decline in activity. And in fact, probably if anything, a little bit more interest because some of the earlier movers have run into some challenges. So people are shopping around a little bit for who else they can work with to secure long-term supplies. Because those EV manufacturers, the film manufacturers, if anything else are committed to continue to grow and develop this industry.
So we have seen no decline in activity and in fact, probably if anything a little bit more interest because some of the earlier movers or have run into some challenges and so people are shopping around a little bit for who else. They can they can work with to secure long term supplies because those EV manufacturers in cell.
<unk> if anything else are committed to continue to grow and develop this industry.
Perfect, thank you. A couple on commercialization.
Perfect. Thank you a couple on on commercialization.
trying to combine them. When do you see enough revenue to break even? And then when do you see sustainable revenue streams?
Try and combine them when do you see enough revenue to break even.
And then when do you see sustainable revenue streams.
Okay.
Yeah, no. So in my comments at the beginning of the call, I mentioned that our first commercial demonstration plan that we're building now, the 3000 tonne is a mile.
Yeah no.
So in my comments at the beginning of the call I mentioned that our first commercial demonstration plant that we're building now are the.
The 3000 ton is a milestone for us because that.
That will generate positive cash flows. So that break even, you know, concept that we're all looking forward to.
That will generate positive cash flows.
So that breakeven.
Concept that we're all looking forward to.
M D.
That's where our models are predicting that at first plant. So that's a positive milestone, that's what we're constructing, that's what we're working towards. And so that's good.
That's where our models are predicting that our that at first plant. So that's that's a positive milestone that's what we're constructing that's what we're working towards and so that's good.
And once that gets set up and running, we believe that
And once that gets set up and running.
We believe that that.
that will have sustainable revenues from that. There's a lot of interest in our materials already, even though we just only produce.
And that will have sustainable revenues from that and Theres a lot of interest.
In our materials already even though we just only produced some at the pilot operations.
some of the pilot operations. So once that first phase gets going, we believe what Sam will grab an ingestion from that first phase, and then we'll work to construct the second phases.
So.
Once that first phase gets going and we believe are sustainable revenue just from that first phase and then we will work to construct the second.
of that campus facility and you'll enjoy the revenues from that as well.
Phases.
Of that campus facility.
Yes.
Enjoy the revenues from that as well.
Great, thank you. And then on the partnerships, just a little clarification. Are you able to offer a little bit more on the time frame around 6K?
Great. Thank you and then on the partnerships just a little clarification are you able to offer a little bit more on the timeframes around 6K and U haul.
So, timeframes in terms of agreements, we've said that we would be announcing, we attend to announce by around the end of this year what the Goat Thord Plan is with 6K based upon that already announced in the EU, and that will provide the details of what the future looks like, but it will be...
So timeframes in terms of agreements, we've said that we would be announcing we.
We intend to announce by around the end of this year. What the go forward plan is with 6K based upon that already announced Mou and that will provide the details of what the.
The future looks like but it will be likely.
likely what I was saying before, which is the co-location and the opportunity for us to generate 10, that's not hundreds of millions of dollars a year, as we get into year two and beyond with 6K energy and supply agreement with them alone. And that's not cumulative, that's per year.
What I was saying before which is that co location and the opportunity for us to generate tens if not hundreds of billions of dollars a year as we get into year two and beyond.
With 6K energy and supply agreement with them alone and that's not cumulative that's per year.
So that hopefully gives you some insight on the timing on that. And then on the UHO side of the equation, we do have a business series of business meanings just in a matter of a few weeks.
So that hopefully gives you some insight to the timing on that and then on the yoho side of the equation, we do have a business series of business meetings.
Just in a matter of a few weeks in South Korea.
in South Korea for further discussions on the licensing agreement and due diligence on our part at a business level on their facility that they are just about ready to begin commissioning on their own.
For further discussions on the licensing agreement and due diligence on our part at a business level.
On their facility that they are just about ready to begin commissioning on their own.
And then there's a further series of technical meetings that will be taking place in Q1 and we expect that we'll be able to announce together what they go forward plan is on the licensing arrangements with a yellow on a more formal level at the conclusion of those due diligence and final meetings.
And then Theres a.
Excuse me a further series of tactical meetings that'll be taking place in Q1, and we expect that we'll be able to announce together what the go forward plan is on the licensing arrangements with yoho on a more formal level.
At the conclusion of those due diligence and final meetings that we'll be having and we're really excited to be out there with them and see the facility as they begin to.
that we'll be having. And we're really excited to be out there with them and see the facility as they begin to really bring it online as we get into Q1 of next year. So coming soon.
You don't really bring it online as soon as we get into Q1 of next year, so coming soon.
Thank you. We reached out to our question and answer session. I'd like to turn the floor back over to management for further closing comments.
Thank you we've reached end of our question and answer session I'd like to turn the floor back over to management for any further or closing comments.
All right, well, thank you and I'll just conclude by thanking everybody for your interest and support and attention today.
Alright, well, thank you and I'll just conclude by thanking everybody for your.
Your interest and support and attention today and I'll just add that we believe as a management team that we've got the right technology. That's environmentally correct technology as strong balance sheet that we secured already and we have a very rational and methodical approach to our business plan and our growth plan and we feel that our <unk>.
And I'll just add that we believe as a management team that we've got the right technology, that is environmentally correct technology, a strong balance sheet that we've secured already. And we have a very rational and methodical approach to our business plan.
in our growth plan and we feel that our multifaceted business model can really differentiate us in the industry to be able to really work with anyone that, rather than compete.
<unk> business model can really differentiate us in the industry to be able to really work with anyone that debt.
Rather to compete and we see that as a really strong asset for Aqua metals that we can continue to leverage as evidenced by what we've already done with 6K energy and you'll owe and dragonfly energy. We really appreciate everyone's time and look forward to impending updates and see you. All next time soon.
And we see that as a really strong asset for aqua models that we can continue to leverage as evidence by what we've already done with 6K Energy and ULO.
Dragonfly Energy. We really appreciate everyone's time and look forward to depending updates and see you all next time soon.
Thank you. That does include today's teleconference of webcast and we disconnect your line at this time and have a wonderful day. We thank you for your participation today.
Thank you that does conclude today's teleconference and webcast you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.