2020 Q2 Form 10-Q Financial Statement

#000162183220000069 Filed on April 30, 2020

View on sec.gov

Income Statement

Concept 2020 Q2 2020 Q1 2019 Q1
Revenue $0.00 $18.00K $437.0K
YoY Change -100.0% -95.88% -74.68%
Cost Of Revenue $1.306M $1.454M $4.681M
YoY Change -81.82% -68.94% -13.89%
Gross Profit -$1.306M -$1.436M -$4.244M
YoY Change -77.1% -66.16% 14.39%
Gross Profit Margin -7977.78% -971.17%
Selling, General & Admin $2.450M $2.520M $4.520M
YoY Change -47.31% -44.25% 43.95%
% of Gross Profit
Research & Development $217.0K $242.0K $620.0K
YoY Change -35.8% -60.97% -57.97%
% of Gross Profit
Depreciation & Amortization $500.0K $600.0K $800.0K
YoY Change -44.44% -25.0% 0.0%
% of Gross Profit
Operating Expenses $217.0K $242.0K $9.317M
YoY Change -98.17% -97.4% 7.26%
Operating Profit -$3.768M -$4.063M -$8.880M
YoY Change -63.68% -54.25% 27.59%
Interest Expense $164.0K $183.0K $2.889M
YoY Change -19.21% -93.67% 392.16%
% of Operating Profit
Other Income/Expense, Net -$213.0K -$364.0K -$2.826M
YoY Change 69.05% -87.12% 395.79%
Pretax Income -$3.981M -$4.427M -$11.71M
YoY Change -62.09% -62.18% 55.46%
Income Tax $2.000K $0.00 $2.000K
% Of Pretax Income
Net Earnings -$3.983M -$4.427M -$11.71M
YoY Change -62.07% -62.19% 55.44%
Net Earnings / Revenue -24594.44% -2679.18%
Basic Earnings Per Share
Diluted Earnings Per Share -$66.18K -$74.35K -$269.1K
COMMON SHARES
Basic Shares Outstanding 60.01M shares 59.77M shares 44.35M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q2 2020 Q1 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.780M $6.390M $15.34M
YoY Change -82.5% -58.34% -12.34%
Cash & Equivalents $4.776M $6.386M $15.34M
Short-Term Investments
Other Short-Term Assets $5.200M $10.37M $1.160M
YoY Change 796.55% 793.97% 81.25%
Inventory $1.209M $1.209M $1.216M
Prepaid Expenses
Receivables $0.00 $0.00 $426.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $11.18M $17.96M $18.14M
YoY Change -63.52% -0.94% -11.1%
LONG-TERM ASSETS
Property, Plant & Equipment $37.61M $37.55M $46.59M
YoY Change -21.03% -19.41% 0.02%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $7.923M $5.932M $3.332M
YoY Change 81.6% 78.03% 113.59%
Total Long-Term Assets $46.45M $44.43M $51.05M
YoY Change -12.5% -12.97% 3.01%
TOTAL ASSETS
Total Short-Term Assets $11.18M $17.96M $18.14M
Total Long-Term Assets $46.45M $44.43M $51.05M
Total Assets $57.63M $62.40M $69.19M
YoY Change -31.18% -9.82% -1.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.883M $3.117M $3.035M
YoY Change -65.43% 2.7% 45.91%
Accrued Expenses $2.174M $2.420M $4.449M
YoY Change -9.9% -45.61% 166.41%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $490.0K $320.0K $280.0K
YoY Change 75.0% 14.29% -26.32%
Total Short-Term Liabilities $5.127M $6.415M $8.263M
YoY Change -40.74% -22.36% 90.83%
LONG-TERM LIABILITIES
Long-Term Debt $8.430M $8.350M $8.640M
YoY Change -1.75% -3.36% -17.79%
Other Long-Term Liabilities $1.350M $1.490M $2.010M
YoY Change -28.57% -25.87% 40.56%
Total Long-Term Liabilities $9.780M $9.840M $10.65M
YoY Change -6.59% -7.61% -10.8%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.127M $6.415M $8.263M
Total Long-Term Liabilities $9.780M $9.840M $10.65M
Total Liabilities $14.91M $16.25M $18.91M
YoY Change -21.99% -14.05% 16.23%
SHAREHOLDERS EQUITY
Retained Earnings -$148.3M -$144.3M -$106.8M
YoY Change 26.42% 35.12%
Common Stock $191.0M $190.5M $157.1M
YoY Change 5.0% 21.25%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $42.72M $46.14M $50.28M
YoY Change
Total Liabilities & Shareholders Equity $57.63M $62.40M $69.19M
YoY Change -31.18% -9.82% -1.1%

Cashflow Statement

Concept 2020 Q2 2020 Q1 2019 Q1
OPERATING ACTIVITIES
Net Income -$3.983M -$4.427M -$11.71M
YoY Change -62.07% -62.19% 55.44%
Depreciation, Depletion And Amortization $500.0K $600.0K $800.0K
YoY Change -44.44% -25.0% 0.0%
Cash From Operating Activities -$4.060M -$4.262M -$6.304M
YoY Change -26.58% -32.39% 5.81%
INVESTING ACTIVITIES
Capital Expenditures -$680.0K $1.563M $1.612M
YoY Change -57.23% -3.04% 20.57%
Acquisitions
YoY Change
Other Investing Activities $2.880M $4.710M $40.00K
YoY Change -352.63% 11675.0%
Cash From Investing Activities $2.200M $3.149M -$1.574M
YoY Change -180.59% -300.06% 17.73%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $9.063M
YoY Change -100.0% 330.14%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 250.0K -$76.00K $2.322M
YoY Change -98.76% -103.27% 16.16%
NET CHANGE
Cash From Operating Activities -4.060M -$4.262M -$6.304M
Cash From Investing Activities 2.200M $3.149M -$1.574M
Cash From Financing Activities 250.0K -$76.00K $2.322M
Net Change In Cash -1.610M -$1.189M -$5.556M
YoY Change -113.45% -78.6% 4.91%
FREE CASH FLOW
Cash From Operating Activities -$4.060M -$4.262M -$6.304M
Capital Expenditures -$680.0K $1.563M $1.612M
Free Cash Flow -$3.380M -$5.825M -$7.916M
YoY Change -14.21% -26.41% 8.51%

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CY2019Q1 us-gaap Repayments Of Debt
RepaymentsOfDebt
90000 USD
CY2020Q1 us-gaap Repayments Of Convertible Debt
RepaymentsOfConvertibleDebt
USD
CY2019Q1 us-gaap Repayments Of Convertible Debt
RepaymentsOfConvertibleDebt
6651000 USD
CY2020Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-76000 USD
CY2019Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2322000 USD
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-1189000 USD
CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-5556000 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
7575000 USD
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
20892000 USD
CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
6386000 USD
CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
15336000 USD
CY2020Q1 us-gaap Income Taxes Paid
IncomeTaxesPaid
0 USD
CY2019Q1 us-gaap Income Taxes Paid
IncomeTaxesPaid
2000 USD
CY2020Q1 us-gaap Interest Paid Net
InterestPaidNet
161000 USD
CY2019Q1 us-gaap Interest Paid Net
InterestPaidNet
188000 USD
CY2020Q1 aqms Change In Accounts Receivable From Funds Held In Escrow
ChangeInAccountsReceivableFromFundsHeldInEscrow
2750000 USD
CY2019Q1 aqms Change In Accounts Receivable From Funds Held In Escrow
ChangeInAccountsReceivableFromFundsHeldInEscrow
0 USD
CY2020Q1 aqms Increase In Property And Equipment Resulting From Increase In Accounts Payable
IncreaseInPropertyAndEquipmentResultingFromIncreaseInAccountsPayable
-973000 USD
CY2019Q1 aqms Increase In Property And Equipment Resulting From Increase In Accounts Payable
IncreaseInPropertyAndEquipmentResultingFromIncreaseInAccountsPayable
455000 USD
CY2020Q1 aqms Increase In Property And Equipment Resulting From Increase In Accrued Expenses
IncreaseInPropertyAndEquipmentResultingFromIncreaseInAccruedExpenses
189000 USD
CY2019Q1 aqms Increase In Property And Equipment Resulting From Increase In Accrued Expenses
IncreaseInPropertyAndEquipmentResultingFromIncreaseInAccruedExpenses
103000 USD
CY2020Q1 aqms Change In Equity Resulting From A Change In Accrued Expenses
ChangeInEquityResultingFromAChangeInAccruedExpenses
24000 USD
CY2019Q1 aqms Change In Equity Resulting From A Change In Accrued Expenses
ChangeInEquityResultingFromAChangeInAccruedExpenses
0 USD
CY2020Q1 us-gaap Nature Of Operations
NatureOfOperations
Organization<span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Aqua Metals, Inc. (the “Company”) was incorporated in Delaware and commenced operations on June 20, 2014 (inception). On January 27, 2015, the Company formed two wholly-owned subsidiaries, Aqua Metals Reno, Inc. (“AMR”) and Aqua Metals Operations, Inc. (collectively, the “Subsidiaries”), both incorporated in Delaware. The Company is engaged in the business of lead recycling through its patented and patent-pending AquaRefining™ technology. Unlike smelting, AquaRefining is a room temperature, water-based process that emits less pollution than smelting, the traditional method of lead recycling. The Company built its first recycling facility in Nevada’s Tahoe Reno Industrial Center (“TRIC”) in McCarran, Nevada and intends to pursue the development of additional lead acid battery recycling facilities based on the Company’s AquaRefining technology, likely through licensing or joint development arrangements. The Company commenced the shipment of products for sale, consisting of lead compounds and plastics in April 2017, and through March 31, 2018 substantially all revenue was derived from the sale of lead compounds and plastics. In April 2018, the Company began shipping cast lead bullion (mixture of lead purchased to prime the kettles and AquaRefined lead from our AquaRefining process) blocks in addition to lead compounds and plastics and in June 2018, the Company began shipping high-purity lead from its AquaRefining process. During the second and third quarters of 2019, the Company operated up to four of the Company's initial modules (modules 1 through 4) on a 24x7 basis.</span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:12pt;font-weight:400;line-height:120%;"> </span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">Throughout these quarters, the Company made significant progress related to its goal of ramping up the plant to full production. Some of the milestones reached were related to production and revenue records while at the same time reducing general and administrative expense. During the fourth quarter of 2019, the Company focused its efforts on completing the Phase 2 capital upgrades, including work done to commission the remaining 12 modules. On whole, completion of the Phase 2 capital work was expected to improve the plant's contribution margin. These projects included concentrate production improvements, electrolyte chilling improvements, improvements in briquetting our spongy AquaRefined lead to prepare for melting and ingot casting, water recovery and management systems, upgrades to all the AquaRefining modules and finally, the paste drying system to increase yields and throughput. On the evening of November 29, 2019, a fire occurred in the AquaRefining area of the facility. The fire and related intense heat and smoke caused significant damage to a material amount of equipment in the AquaRefinery area, including all 16 AquaRefining modules, electrical and tank infrastructure, steel superstructure, control wiring and other supporting infrastructure. As of the date of this report, we are developing and analyzing a strategy of accelerating licensing activities rather than engaging in a capital intensive rebuild of the facility.</span>
CY2020Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="padding-left:36pt;text-align:justify;margin-top:10pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration: underline;">Use of estimates</span></div><div style="padding-left:36pt;text-align:justify;margin-top:10pt;"><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;">The preparation of the condensed consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount and valuation of long-lived assets, the valuation of conversion features of convertible debt, valuation allowances for deferred tax assets, the determination of fair value of estimated asset retirement obligations, the determination of stock option expense and the determination of the fair value of stock warrants issued. Actual results could differ from those estimates.</span></div>
CY2020Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4912152 shares
CY2019Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6129550 shares
CY2020Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2020Q1 aqms Geographic Segment
GeographicSegment
1 segment
CY2019Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
44207000 USD
CY2020Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
7061000 USD
CY2020Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
Concentration of credit riskRevenues from the following customers each represented at least 10% of total revenue for the three months ended March 31, 2020 and March 31, 2019, respectively. They also represented a significant portion of our trade accounts receivable as of December 31, 2019. The Company did not have a trade accounts receivable balance as of March 31, 2020.
CY2019Q4 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
10000000.0 USD
CY2019Q4 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
10000000.0 USD
CY2019Q4 us-gaap Escrow Deposit
EscrowDeposit
2750000 USD
CY2020Q1 us-gaap Escrow Deposit
EscrowDeposit
2750000 USD
CY2020Q1 aqms Percentage Of Revenue Accounted Products Transferred To Customers
PercentageOfRevenueAccountedProductsTransferredToCustomers
1
CY2019Q1 aqms Percentage Of Revenue Accounted Products Transferred To Customers
PercentageOfRevenueAccountedProductsTransferredToCustomers
1
CY2019Q4 us-gaap Notes Payable Current
NotesPayableCurrent
296000 USD
CY2020Q1 us-gaap Long Term Notes Payable
LongTermNotesPayable
8323000 USD
CY2020Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
23000 USD
CY2019Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
47000 USD
CY2020Q1 us-gaap Inventory Work In Process
InventoryWorkInProcess
303000 USD
CY2019Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
322000 USD
CY2020Q1 us-gaap Inventory Raw Materials
InventoryRawMaterials
883000 USD
CY2019Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
888000 USD
CY2020Q1 us-gaap Inventory Net
InventoryNet
1209000 USD
CY2019Q4 us-gaap Inventory Net
InventoryNet
1257000 USD
CY2020Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
44609000 USD
CY2019Q1 us-gaap Depreciation
Depreciation
800000 USD
CY2019Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
6564000 USD
CY2020Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
37548000 USD
CY2019Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
37643000 USD
CY2020Q1 us-gaap Depreciation
Depreciation
600000 USD
CY2017Q1 us-gaap Asset Retirement Obligations Noncurrent
AssetRetirementObligationsNoncurrent
700000 USD
CY2020Q1 us-gaap Accretion Expense
AccretionExpense
12000 USD
CY2019Q1 us-gaap Accretion Expense
AccretionExpense
11000 USD
CY2020Q1 us-gaap Notes Payable Current
NotesPayableCurrent
310000 USD
CY2020Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P2Y
CY2019Q4 us-gaap Long Term Notes Payable
LongTermNotesPayable
8404000 USD
CY2020Q1 aqms Lessee Finance Lease Number Of Leases
LesseeFinanceLeaseNumberOfLeases
1 contract
CY2020Q1 aqms Lessee Operating Lease Number Of Leases
LesseeOperatingLeaseNumberOfLeases
2 contract
CY2020Q1 us-gaap Sublease Income
SubleaseIncome
108150 USD
CY2019Q1 us-gaap Sublease Income
SubleaseIncome
43750 USD
CY2020Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1080000.00 USD
CY2020Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1250000 USD
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
1530000 USD
CY2019Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1750000 USD
CY2020Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
158000 USD
CY2019Q1 us-gaap Operating Lease Payments
OperatingLeasePayments
154000 USD
CY2020Q1 us-gaap Operating Lease Cost
OperatingLeaseCost
144000 USD
CY2019Q1 us-gaap Operating Lease Cost
OperatingLeaseCost
144000 USD
CY2020Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
647000 USD
CY2020Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
634000 USD
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P2Y2M12D
CY2020Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0966
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0966
CY2020Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
91000 USD
CY2020Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1372000 USD
CY2020Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
120000 USD
CY2020Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1252000 USD
CY2020Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
563000 USD
CY2020Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
689000 USD
CY2020Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1252000 USD
CY2020Q1 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
5000 USD
CY2020Q1 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
25000 USD
CY2020Q1 us-gaap Share Based Compensation
ShareBasedCompensation
956000 USD
CY2019Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1067000 USD
CY2019Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P3Y4M24D
CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0
CY2018Q4 aqms Severance Restricted Stock Units Weighted Average Stock Price Trading Days
SeveranceRestrictedStockUnitsWeightedAverageStockPriceTradingDays
20 day

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