Aqua Metals, Inc.

Good afternoon and welcome to the Aqua Metals third quarter financial results call. At this time, all participants are in a listen-only mode. The question and answer session will follow the formal presentation. You can submit a question via the web at any time by typing them in the ask a question field. If you have joined us by phone, you may press star one to join the queue. Please note that this conference is being recorded. I will now turn the conference over to our host, Bob Myers of FNKIR. Bob, you may begin.

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, 2024. This release is available in the investor relations section on the company's website at aquametals.com. Hosting the call today are Steve Cotton, President and Chief Executive Officer, and Judd Merrill, Chief Financial Officer. Before we begin, I would like to remind participants that during the call, management will be making forward-looking statements. Please refer to the company's report on Form 10-Q filed November 14th 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. Aquamentals cautions investors not to place undue reliance on any forward-looking statements. The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law. As a reminder, after the formal remarks, we will 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 earlier press releases. We will take as many questions as we can in our available time slot. And with that, I'd like to turn the call over to Steve Cotton, CEO of Aquametals. Steve, the call is yours.

Thank you, Bob, and thank you to everyone who joined us today. We're pleased to share AquaMetal's progress over the last quarter, during which we've made significant advancements in lithium recycling and bolstered initiatives for commercial growth and operational expansion. We'll discuss the operational achievements at our pilot facility, our efforts on strategic financing, key commercial engagements that continue to solidify AquaMetal's position as a leader in sustainable lithium battery recycling, and Judd will discuss the Q3 financials. Since our second quarter conference call and the previously announced loan decision, We have focused on three main objectives. First, demonstrating the repeatability of our unique lithium aqua refining processes. Second, securing long-term financing. And third, further establishing commercial partnerships to support our growth. First, I'll talk about our pilot facility operations and production quality. We're excited to announce that our pilot facility has consistently achieved 24-hour operational capacity, producing high-purity, battery-grade lithium carbonate with over 99.5% purity. This is a critical validation of the quality and consistency of our lithium aqua refining process. To date, we have delivered multiple lithium carbonate samples to potential off-takers and battery manufacturers, all of whom have acknowledged the quality of our recycled materials. we're confident that our ongoing pilot operations are paving the way for full-scale commercial recycling at meaningful revenue scale. Moving on now to our strategic financing and commercial initiatives. In terms of financing, we've made strides in securing both short-term capital through non-essential asset dispositions, as well as long-term capital to support the expansion of our Sierra Aquara Refining Campus, or Sierra ARC. We have multiple term sheets in place. one of which is a substantial capital commitment for our growth plans, which includes the completion of the CR arc as well as future capacity expansions. Another term sheet outlines a commercial supply agreement with a leading battery materials manufacturer. Negotiating and finalizing these agreements is our highest priority, and this initiative is demanding most of our time. Holistically, we believe that these agreements will secure a steady supply of black mass for our recycling processes, offtake of our products, which positions us well for long-term operational success and fits hand in glove with our long-term financing efforts. Turning to advancements at our commercial scale at the Sierra Arc facility, we've made substantial progress in preparing the site for commissioning, pending final financing. We're now materially completed of all the long lead time critical infrastructure upgrades, including structural, utility, electrical service, and switch gear and other building improvements, to enable us to accelerate operations and reach commercial activity once financing is secured. This past quarter and to date, we've hosted visits from key industry players and government organizations, including representatives from the DOE, DOD, EPA, Workforce Development, and we're ready for what we believe will be a rapid two- to three-quarter build-out once capital is finalized. Our initial operations will focus on processing 3,000 tons of black mass per year in our Phase 1 building with plans to scale up to 10,000 tons in Phase 2. On to cost efficiency and environmental leadership. Finally, I want to highlight the environmental and cost benefits of our off-refining technology. Unlike traditional recycling methods that generate massive quantities of sodium sulfate, which is a costly byproduct that even exceeds product output, Our process is much more capital and operating cost efficient, eliminating waste streams and reducing environmental impacts through decarbonization. This not only strengthens our commitment to sustainability, but also translates into what we believe is a low-cost producer opportunity for us to achieve significant cost savings in chemical purchases, waste handling, and compliance. all while creating great manufacturing jobs in a comfortable working environment that enhances the communities in which we will operate as i said our primary focus is on finalizing financing to complete phase one and phase two of the sierra arc build out once funded we anticipate commissioning the facility within two to three quarters positioning aqua metals to quickly scale commercial operations with the goal of becoming the first truly commercial-scale lithium battery recycler in the U.S. We're also advancing additional customer partnerships to secure feedstock supply and established agreements with battery manufacturers. In parallel, our pilot facility will continue to validate our technology and supply representative battery-grade samples to existing and potential partners. We're optimistic about the momentum we're building, and we look forward to sharing further updates as our partnerships and financing milestones come to fruition. In closing, I want to extend our gratitude to the Aqua Metals team for their dedication and hard work. This quarter's accomplishments reflect the scalability of our technology and our commitment to building a financially resilient, environmentally responsible recycling company right here in the U.S. We're energized by the response to our progress from industry leaders and other stakeholders and we're focused on bringing Sierra Arc online and driving foundational and sustainable growth in the U.S. critical battery mineral supply chain. I'll now turn it over to our CFO, Judd Merrill, to discuss financials for the quarter.