Aqua Metals Inc (AQMS) 2024 Q3 法說會逐字稿

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.

下午好，歡迎參加 Aqua Metals 第三季財務業績電話會議。此時，所有參與者都處於只聽模式。問答環節將在正式演講之後進行。

You could submit a question via the web at any time by typing them in the ask a ask a question field. 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.

您可以隨時透過網路提交問題，只需在提問欄位中輸入問題即可。您已透過電話加入我們。您可以按星號一加入佇列。請注意，本次會議正在錄製中。現在我將把會議交給我們的主持人 Fnkir 的鮑勃·邁爾斯 (Bob Myers)，鮑勃 (Bob)。你可以開始了。

Thank you operator and thank you everybody for joining. Earlier today, Aquametals issued a press release providing an operational update and discussing financial results for the third quarter ended September 30th 2024.

謝謝運營商，也謝謝大家的加入。今天早些時候，Aquametals 發布了一份新聞稿，提供了截至 2024 年 9 月 30 日的第三季度的營運更新並討論了財務業績。

This release is available in the investor relations section on the company's website at Aquametals dotcom.

此新聞稿可在該公司網站 Aquametals dotcom 的投資者關係部分取得。

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.

今天主持電話會議的是總裁兼執行長 Steve Cotton 和財務長 Judd Merrill。在開始之前，我想提醒與會者，在電話會議期間，管理階層將做出前瞻性陳述。請參閱該公司 11 月 14 日提交的 10-Q 表格報告，以了解前瞻性陳述以及風險不確定性和其他可能導致實際結果與前瞻性陳述有重大差異的因素的摘要。

Aqua Metals cautions investors not to place undue reliance on any forward-looking statements. The company does not undertake and specifically disclaims any obligation to update or revise such statements to 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.

Aqua Metals 提醒投資者不要過度依賴任何前瞻性陳述。本公司不承擔並明確聲明不承擔更新或修改此類聲明以反映新情況或意外事件發生的任何義務，除非法律要求在正式言論後作為提醒，否則我們將接受提問，提問將被接受分析師和所有其他投資者可以透過電話透過今天和之前的新聞稿中提供的線上網路廣播入口網站提交問題。我們將在可用的時間內回答盡可能多的問題。

And with that, I'd like to turn the call over to Steve Cotton CEO of Aquametals. Steve. The call is yours.

說到這裡，我想將電話轉給 Aquametals 執行長 Steve Cotton。史蒂夫.電話是你的。

Thank you, Bob and thank you to everyone who joined us today. We're pleased to share aquametals 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 aquametals position as a leader in sustainable lithium battery recycling and Judd will discuss the Q3 financials since our second quarter conference call. In the previously announced loan decision, we have focused on three main objectives. First demonstrating the repeatability of our unique lithium 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 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 nonessential asset dispositions as well as long term capital to support the expansion of our Sierra Aqua 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 C 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 Art 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 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 hope visits from key industry players and government organizations including representatives from the de Dod epa workforce development and we're ready for what we believe will be a rapid 2 to 3 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 one building with plans to scale up to 10,000 tons in phase two on to cost efficiency and environmental leadership. Finally, I want to highlight the environmental and cost benefits of our 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 decarboniation. 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 and 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.

謝謝你，鮑勃，也謝謝今天加入我們的所有人。我們很高興分享上個季度的水金屬進展，在此期間我們在鋰回收方面取得了重大進展，並加強了商業成長和營運擴張的舉措。我們將討論我們試點設施的營運成就、我們在策略融資方面的努力、繼續鞏固Aquametals 作為可持續鋰電池回收領域領導者地位的關鍵商業活動，賈德將討論自第二季度電話會議以來的第三季度財務狀況。在先前宣布的貸款決定中，我們將重點放在三個主要目標。首先展示我們獨特的鋰精煉製程的可重複性，其次，確保長期融資，第三，進一步建立商業合作夥伴關係以支持我們的成長。首先，我將談談我們的試點設施營運和生產品質。我們很高興地宣布，我們的試點設施已持續實現 24 小時營運能力，生產純度超過 99.5% 的高純度電池級碳酸鋰。這是對我們迄今為止鋰精煉製程的品質和一致性的重要驗證。我們已向潛在承購商和電池製造商提供了多個碳酸鋰樣品，他們都認可了我們回收材料的品質。我們相信，我們正在進行的試點業務正在為以有意義的收入規模進行全面商業回收鋪平道路。現在轉向我們在融資方面的策略融資和商業舉措。我們在透過非必要資產處置獲得短期資本以及支持 Sierra Aqua Refining 園區或 Sierra Arc 擴張的長期資本方面取得了長足進展。我們已經制定了多個投資意向書。其中之一是我們的成長計劃的大量資本承諾，包括完成 C 以及未來的產能擴張。另一份條款清單概述了與一家領先的電池材料製造商的商業供應協議，談判和敲定這些協議是我們的首要任務，這一舉措總體上需要我們大部分時間，我們相信這些協議將確保我們回收的黑色物質的穩定供應處理我們產品的銷售，這使我們能夠在長期運營中取得成功，並與我們的長期融資工作緊密結合。轉向塞拉藝術設施商業規模的進步。我們在現場調試準備工作方面取得了實質進展。等待最終融資。我們現在基本上已經完成了所有長期關鍵基礎設施升級，包括結構公用設施、電力服務和開關設備以及其他建築改進，使我們能夠在上個季度和迄今為止獲得融資後加速運營並開展商業活動，我們希望主要產業參與者和政府組織（包括de Dod epa 勞動力發展部門的代表）來訪，我們已做好準備，迎接2 至3 季度的快速建設。一旦資金到位，我們的初始營運將集中在第一階段建築中每年處理 3,000 噸黑色物質，並計劃在第二階段將規模擴大到 10,000 噸，以提高成本效率和環境領先地位。最後，我想強調我們的煉油技術的環境和成本效益。與產生大量硫酸鈉的傳統回收方法不同，硫酸鈉是一種昂貴的副產品，甚至超過了產品產量。我們的製程具有更高的資本和營運成本效率，消除廢物流並透過脫碳減少對環境的影響。這不僅加強了我們對永續發展的承諾，而且還轉化為我們認為的低成本生產商機會，使我們能夠大幅節省化學品採購、廢棄物處理和合規成本。同時在舒適的工作環境中創造出色的製造業就業機會，從而改善我們經營所在的社區。

As I said, our primary focus is on finalizing financing to complete phase one and phase two of the Sierra Arc buildout. Once funded, we anticipate commissioning the facility within 2 to 3 quarters, positioning aquametals to quickly scale commercial operations. With the goal of becoming the first truly commercial scale lithium battery recycler in the US.

正如我所說，我們的主要重點是完成融資以完成 Sierra Arc 建造的第一階段和第二階段。一旦獲得資金，我們預計該設施將在 2 到 3 個季度內投入運行，使 Aquametals 能夠快速擴大商業營運規模。目標是成為美國第一家真正商業規模的鋰電池回收商。

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.

我們也正在推進更多的客戶合作夥伴關係，以確保原料供應並與電池製造商簽訂協議。同時，我們的試點設施將繼續驗證我們的技術，並向現有和潛在的合作夥伴提供代表性的電池級樣品。我們對我們正在建立的勢頭感到樂觀，並期待隨著我們的合作夥伴關係和融資里程碑取得成果，分享進一步的最新消息。

In closing. I want to extend our gratitude to the Aquametals 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 US. We're energized by the response to our progress from industry leaders and other stakeholders and we're focused on bringing Sierra Arrk online and driving foundational and sustainable growth in the US critical battery mineral supply chain. I'll now turn it over to our Co Judd Merrill to discuss financials for the quarter.

結束時。我要對 Aquametals 團隊的奉獻和辛勤工作表示感謝。本季的成就反映了我們技術的可擴展性以及我們對在美國建立一家具有財務彈性、對環境負責的回收公司的承諾。產業領導者和其他利害關係人對我們進展的反應讓我們充滿活力，我們專注於讓 Sierra Arrk 上線並推動美國關鍵電池礦物供應鏈的基礎性和永續性成長。我現在將把它交給我們的聯合賈德·梅里爾討論本季度的財務狀況。

Thanks, Steve.

謝謝，史蒂夫。

Let me start my comments with our balance sheet, we ended the quarter with total cash of approximately $3 million.

讓我從我們的資產負債表開始我的評論，本季末我們的現金總額約為 300 萬美元。

One of the more noticeable changes to the balance sheet and the statement of stockholders equity is the effect of the reverse stock split during the quarter. We implemented a reverse stock split of our common stock at a ratio of one post split share for every 20 pre split shares. The reverse stock split became effective on November 5th 2024. All share and per share amounts included in the 10-Q are presented as if the stock split had been effective from the beginning of the earliest period presented this reverse stock split was done to enable us to meet NASDAQ listing requirements for this quarter. There were only minor changes to our balance sheet compared to the previous quarter ended June 30th 2024. So I will move on to the income statement.

資產負債表和股東權益表最顯著的變化之一是本季反向股票分割的影響。我們對普通股實施了反向股票分割，比例為每 20 股分割前股票一股分割後股票。反向股票分割於2024年11月5日生效。10 季度中包含的所有股份和每股金額均按股票分割從最早期間開始生效的方式列示，進行反向股票分割是為了使我們能夠滿足本季度納斯達克的上市要求。與截至 2024 年 6 月 30 日的上一季相比，我們的資產負債表僅發生了微小變化。所以我將繼續討論損益表。

The costs related to plant operations were approximately 1.6 million for the quarter and 6.2 million for the nine months.

本季與工廠營運相關的成本約為 160 萬美元，前九個月約為 620 萬美元。

This represents an approximate 9% decrease for the quarter which was due to a decrease in payroll and payroll related fees. As we completed a reduction in force during August 2024. We expect further decrease in plant operation costs in the fourth quarter.

這意味著本季下降了約 9%，這是由於工資和工資相關費用的減少。我們在 2024 年 8 月完成了兵力裁減。我們預計第四季工廠營運成本將進一步下降。

General and administrative expense were little changed compared to the prior year, both quarter and year-to-date. We expect G&A costs to decrease for Q4. And as we head into 2025 total base operating and base G&A costs are expected to be about 500 to $600,000 per month in this quarter and into 2025.

與去年同期相比，無論是季度還是年初至今，一般費用和管理費用幾乎沒有變化。我們預計第四季的一般管理費用將會下降。隨著我們進入 2025 年，本季和 2025 年的基本營運和基本 G&A 成本預計每月約為 500 至 60 萬美元。

Reflecting the effects of the reverse, the reverse stock split our net loss for the three months ended September 30th 2024 was approximately 5.2 million or a negative 76¢ per basic and diluted share compared to a net loss of 4.5 million or a negative 89¢ per per basic and diluted share for the same quarter. In 2023 our net loss for the nine months ended September 30th 2024 was approximately 17 million or a negative $2.77 per basic and diluted share compared to a net loss of 13.9 million or a negative $3.12 per basic and diluted share for the same period. In 2023 cash provided by financing activities and cash used in investing activities did not change significantly compared to the prior quarter. Cash used in operations decreased slightly from the prior quarter and is expected to decrease further in the coming quarter.

截至2024 年9 月30 日的三個月，反向股票分割使我們的淨虧損約為520 萬美元，即每股基本股和稀釋股負76 美分，而淨虧損為450 萬股，即每股負89 美分。2023 年，截至2024 年9 月30 日的九個月，我們的淨虧損約為1,700 萬美元，或每股基本股和稀釋股負2.77 美元，而同期淨虧損為1,390 萬美元，或每股基本股和稀釋股負3.12 美元。2023年融資活動提供的現金和投資活動所使用的現金與上季相比沒有明顯變化。營運中使用的現金較上一季略有下降，預計下一季將進一步減少。

That concludes my remarks on the company financials. I will now turn it back over to the moderator for Q&A.

我對公司財務狀況的評論到此結束。我現在將其轉回給主持人進行問答。

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

謝謝。我們現在將進行問答環節。如果您想提問，請按電話鍵盤上的星號一。

The confirmation to will indicate your line is in the question queue.

確認訊息將表明您的線路已在問題佇列中。

You may press star two to remove your question from the queue. Participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys one moment please. While we pull for your questions, our first questions come from the line of Samir Joshi with HC Wainwright. Please proceed with your questions.

您可以按星號二將您的問題從佇列中刪除。參與者使用揚聲器設備。請先拿起聽筒，再按星號鍵。當我們徵求你們的問題時，我們的第一個問題來自 Samir Joshi 和 HC Wainwright。請繼續回答您的問題。

So I, I was going to ask you about the doe visits. I think there was a grant that was expected towards the phase two of the project. I don't know what the status of that grant is right now.

所以我，我想問你關於母鹿拜訪的事情。我認為該專案的第二階段預計會獲得一筆贈款。我不知道該補助金現在的狀況如何。

Yes, Samir, this is Steve. Thanks for the question. The, the mesc grant announcements already went out and we were not selected for that latest round. However, we have been engaging with the various agencies with physical visits to the plant and things like that that I was talking about earlier. So we're bullish on our future opportunity to receive grant dollars as we continue to work with those various departments to get to know aqua Metals further.

是的，薩米爾，這是史蒂夫。謝謝你的提問。mesc 撥款公告已經發布，我們沒有被選入最新一輪。然而，我們一直在與各個機構合作，對工廠進行實地考察以及我之前談到的類似事情。因此，我們看好未來獲得資助的機會，因為我們將繼續與各部門合作，進一步了解水族金屬。

Got it. And for the long term financing, you did mention a couple of types of investors that are looking at it including a strategic investor. But can you just describe the status and stage of progress? Are there multiple parties at the table for each of these categories? And what kind of structures are being discussed?

知道了。對於長期融資，您確實提到了幾種正在考慮的投資者，包括策略投資者。但您能簡單介紹一下目前的狀況和進展階段嗎？每個類別是否都有多個參與者參與？正在討論什麼樣的結構？

So.

所以。

We've been speaking to folks in the financial side for quite a while. And as I mentioned earlier since August and we can't really comment on the structure at this point in time, but it is a a great interest in our part to not only fund phase one of the CRR but to have a path and flight path to get to the phase two, which is the build out to 10,000 tons and work with patient and strategic capital that is looking at the space strategically and from a long term perspective. So that's what we really prioritized and we're having a great, great discussions in great levels of detail that's taking a great amount of our time and we expect to have more to report there not too long from now. On the commercial side, as I mentioned, we have been providing this battery grade lithium carbonate to multiple O ems and players in the industry. And the consistent feedback we get is a, the samples that we provide are consistently battery grade. And that just as importantly, we seem to be the only North American Recycler that is able to provide battery grade recycle lithium carbonate. And that is a big deal and that opens up the commercial discussions in great levels of detail for long term feedstock and offtake agreements. That of course go hand in glove when you're looking at financing facility. So you have that input processing output and all those economics put together. Fortunately because our process is much more favorable than other processes for the CapEx expenditure per ton of capacity as well as for the conversion cost per ton of material that goes through it. Even with today's suppressed metals prices, which we think are not going to be extending for a terribly much longer amount of time, we could still produce cash at a plant level. So that means getting the scale more quickly is more important and finding the funding to get from the 3,000 to the 10,000 is a is a critical part of our funding strategy. So we expect to be able to report more on the commercial and financing activities as we get towards the end and into next early part of next year.

我們已經與財務方面的人士進行了相當長的交談。正如我之前從 8 月開始提到的，我們目前無法真正評論該結構，但我們對此非常感興趣，不僅為 CRR 第一階段提供資金，而且還擁有一條通往 CRR 的路徑和飛行路徑。第二階段，即建造10,000 噸，並與耐心和戰略資本合作，從戰略和長遠角度看待這一領域。所以這就是我們真正優先考慮的事情，我們正在進行非常非常詳細的討論，這花費了我們大量的時間，我們希望從現在起不久就會有更多的報告。在商業方面，正如我所提到的，我們一直在向業內多個原始設備製造商和參與者提供這種電池級碳酸鋰。我們得到的一致回饋是，我們提供的樣品始終是電池級的。同樣重要的是，我們似乎是北美唯一一家能夠提供電池級回收碳酸鋰的回收商。這是一件大事，它開啟了長期原料和承購協議的詳細商業討論。當您考慮融資便利性時，這當然是密切相關的。因此，您將輸入、處理、輸出和所有這些經濟因素放在一起。幸運的是，我們的流程比其他流程更有利於每噸產能的資本支出以及每噸材料的轉換成本。即使今天的金屬價格受到抑制（我們認為這種情況不會持續很長時間），我們仍然可以在工廠層面產生現金。因此，這意味著更快擴大規模更為重要，而找到從 3,000 人到 10,000 人的資金是我們融資策略的關鍵部分。因此，我們希望在年底和明年初能夠報告更多有關商業和融資活動的資訊。

Understood. Thanks and then one last one pro probably for J I think you mentioned 500 to $600,000 a month of expenses. Is this all inclusive that is, does it include the plant operations in it as well or were were you only referring to the G&A and R&D cash expenses?

明白了。謝謝，最後一位專業人士可能是 J，我想您提到了每月 500 至 600,000 美元的費用。這是全包的嗎？

Now, this is G&A and operations, this is total kind of cash needs.

現在，這是一般行政費用和運營，這就是現金需求。

Right now and we've done a good job getting our burn way down and, and trying to manage that cost. And so that includes everything.

目前，我們在降低燒錢方面做得很好，並努力控製成本。這包括一切。

And for the plant operations, You did mention you expected them to be lower. What, what levels can you reach without like so that you can restart the operations when needed.

對於工廠運營，您確實提到您預計它們會更低。如果沒有這樣的功能，您可以達到什麼級別，以便您可以在需要時重新啟動操作。

So.

所以。

What level can you just say that again?

什麼水平你還能再說一次？

I think you were at 1.6 million for plant operations.

我想你的工廠營運費用是 160 萬。

Yeah, yeah, I mean, we'll see similar once we you know, start up the plant again and start ramping back up, we'll see similar kind of cost and, and cash needs that, that we had before. Kind of, I mean, if you look back at Q2, it's kind of a good example, we were ramping up at that point and had hired most of our people. So I think that's kind of similar to what we expect. Once we turn things back on.

是的，是的，我的意思是，一旦我們知道，我們會看到類似的情況，再次啟動工廠並開始回升，我們會看到類似的成本和現金需求，就像我們以前一樣。我的意思是，如果你回顧第二季度，這是一個很好的例子，我們當時正在加大力度，並僱用了大部分員工。所以我認為這與我們的預期有點相似。一旦我們重新啟動。

I understood.

我明白了。

Oh, okay. Thanks for taking my questions.

哦好的。感謝您回答我的問題。

Thank you. As a reminder. If you would like to ask a question by phone, please press star one on your telephone keypad.

謝謝。作為提醒。如果您想透過電話提問，請按電話鍵盤上的星號一。

Thank you. I'm not showing any further questions on the phone, Bob, I'd like to pass the call back to you for any questions submitted via the webcast.

謝謝。鮑勃，我不會在電話中提出任何進一步的問題，對於透過網路廣播提交的任何問題，我想將電話轉給您。

Sure. Thank you. First question, can you talk a little bit more about why you executed the reverse stock split.

當然。謝謝。第一個問題，可以多談談為什麼要進行反向股票分割嗎？

Yeah, I'll take that question. The primary reason was to regain compliance with the NASDAQ listing requirements.

是的，我會回答這個問題。主要原因是重新符合納斯達克上市要求。

So this is something that many companies, particularly those that, you know, the micro cap or even the lithium related industry that have had to deal with. And we probably have to do in order to maintain that NASDAQ listing rule. And so that's what we did.

因此，這是許多公司，特別是那些微型資本甚至鋰相關產業必須處理的問題。為了維持納斯達克上市規則，我們可能必須這樣做。這就是我們所做的。

Got it. Thank you.

知道了。謝謝。

And this was touched upon, but the financing term sheet is great news. Is there something in particular that gives you confidence that this will advance to a signed agreement?

這已經被提及，但融資條款清單是個好消息。有什麼特別的事情讓您相信這將推進簽署協議嗎？

Yeah, I'll, I'll just take that this is so, you know, we've talked about our desire and our goal to make sure that we fund this not only in the, in the short term, but in the long term. And so we spent a lot of time and effort in this area. We've done things internally in terms of like, you know, purchasing certain modeling software and organizing and doing extended runs of our pilot operation, all with that goal. And so, you know, there's a tremendous amount of work that's being done to, to secure our future. And so that gives us optimism. You know, but there's still work to do.

是的，我會，我會認為事情就是這樣，你知道，我們已經討論過我們的願望和目標，以確保我們不僅在短期內而且在長期內為此提供資金學期。所以我們在這方面花了大量的時間和精力。我們在內部做了一些事情，例如購買某些建模軟體以及組織和擴展我們的試點操作，所有這些都是為了這個目標。所以，你知道，為了確保我們的未來，我們正在做大量的工作。這讓我們感到樂觀。你知道，但仍有工作要做。

Got it. Thank you. The next question, assuming everything goes well and you do secure long term funding. Can you talk a little bit more about the commissioning schedule for the Sierra Arc?

知道了。謝謝。下一個問題，假設一切順利並且您確實獲得了長期資金。您能多談談 Sierra Arc 的調試時間表嗎？

Yeah, Bob, this is Steve, I'll take that one. So I I would start with saying our confidence in our ability to ramp quickly is really a reflection of the consistent pilot operations that we strategically chose to do compared to a lot of others in the industry and have been successfully doing for now, nearly two years. And as mentioned in our earlier remarks, capital dependent, of course, we do project that we can get the first phase of the CRR to reach commissioning within 2 to 3 quarters. And that's really because we have the building ready for equipment placement and a lot of that equipment on order and sitting in vendors, warehouses and our warehouses ready to be installed and commissioned. And that gives us a unique and really interesting rapid time to market upon funding. So we've already gotten that real head start with that building acquisition and upfit and equipment and finalized designs, et cetera. This, I believe would really put us into an industry leadership position of being the first North American and certainly the first us producer of critical battery materials that's shipping truckloads of battery grade materials. And, and, and even with the frustrating delays that we've seen not only for aqua metals but for the industry as a whole. E even with that, that puts us in what we believe will be a leadership position in the entire industry.

是的，鮑勃，這是史蒂夫，我就選那個。因此，我首先要說的是，我們對快速提升能力的信心實際上反映了與業內許多其他公司相比，我們戰略性地選擇進行的持續試點運營，並且已經成功實施了近兩年。正如我們之前的評論中提到的，當然，這取決於資本，我們確實預計 CRR 第一階段可以在 2 到 3 個季度內運作。這實際上是因為我們已經為設備放置做好了準備，並且許多設備已訂購併存放在供應商、倉庫和我們的倉庫中，準備安裝和調試。這為我們提供了獨特且非常有趣的融資後快速上市時間。因此，我們已經在建築收購、裝修、設備和最終設計等方面取得了真正的領先優勢。我相信，這確實會讓我們處於行業領導地位，成為北美第一家，當然也是美國第一家關鍵電池材料生產商，運輸大量電池級材料。而且，甚至我們不僅看到水金屬，而且整個行業都出現了令人沮喪的延誤。即便如此，我們相信這將使我們在整個產業中處於領先地位。

Great. Thank you. The next question following on on the funding. Can you tell us more about your commercial development?

偉大的。謝謝。下一個問題是關於資金的。您能告訴我們更多有關您的商業發展的資訊嗎？

Yeah. So being able to repeatedly produce battery grade materials versus what's what's called technical grade or even lower grade than technical lithium carbonate and other materials to O Ems has really bolstered our supply and offtake discussions that that is really a qualifying event in order to even have those detailed discussions, we've been told that we're the ones that are being that are able to consistently provide those so those engagements are very serious. We've even been told that we're the only Recycler in North America to have been able to really do this. And as I mentioned earlier, the commercial and funding fit together hand in glove and all parties are in talks. We're not just in talks with commercial and in talks with the financial side. We're all in talks because it is hand in glove. And it all fits together to see this thing through. And we expect that we'll be able to update on the commercial development further even later this year or early next.

是的。因此，能夠重複生產電池級材料，而不是所謂的技術級材料，甚至比技術級碳酸鋰和其他材料的O Ems 等級更低，這確實增強了我們的供應和承購討論，這實際上是一個合格的活動，以便甚至擁有這些材料經過詳細的討論，我們被告知我們是能夠持續提供這些服務的人，因此這些參與是非常認真的。我們甚至被告知，我們是北美唯一一家能夠真正做到這一點的回收商。正如我之前提到的，商業和融資密切相關，各方都在進行談判。我們不僅在與商業方面和財務方面進行談判。我們都在進行談判，因為這是密切相關的。所有這些都結合在一起才能完成這件事。我們預計，我們將能夠在今年稍後或明年初進一步更新商業開發。

Thank you. Next question regarding other partnerships in particular six K and the time line to support them with recycled materials.

謝謝。下一個問題是關於其他合作夥伴關係，特別是 6 K 以及用回收材料支持他們的時間表。

Yeah, so we continue to work with our partner six K. We've made a lot of great progress in this past quarter. And so, in addition to directly providing that battery grade lithium carbonate 20 ems, we've also provided the same six K along with that NRE project or non-recurring engineering project that we developed for them of nitrated metals, inclusive of recycled metals from our process and they've been producing battery grade cam or cathode active material samples for their OEM relationships. And we've evidenced together we believe the lowest cost decarbonized recycled content supply chain right here in the US that can truly compete with the China Factor and just this past quarter. And together, we're really engaging quite a few of those various OEM counterparties through that partnership in addition to some direct discussions and samples that we provided, as I mentioned earlier. So we're really excited about that future with six K together achieving a lot of goals for securing critical battery minerals right here in the US with the cost and environmental advantage.

是的，所以我們繼續與我們的合作夥伴 6 K 合作。我們在過去的一個季度取得了很大的進步。因此，除了直接提供電池級碳酸鋰 20 ems 之外，我們還提供了相同的 6 K 以及我們為他們開發的硝化金屬的 NRE 項目或非經常性工程項目，包括來自我們的流程，他們一直在為其OEM 關係生產電池級凸輪或陰極活性材料樣品。我們共同證明，我們相信美國成本最低的脫碳回收材料供應鏈可以真正與中國因素以及上個季度的競爭。正如我之前提到的，除了我們提供的一些直接討論和樣品之外，我們還透過這種合作夥伴關係確實與相當多的 OEM 對手方進行了合作。因此，我們對未來感到非常興奮，六 K 共同實現了許多目標，以成本和環境優勢在美國確保關鍵電池礦物的安全。

Great. Thank you.

偉大的。謝謝。

Can you discuss in a little bit more detail, you outlined industry leaders as well as several government agencies that have visited the P the plant. And where you think some of those discussions might lead.

您能否更詳細地討論一下，您概述了參觀過 P 工廠的行業領導者以及幾個政府機構。您認為其中一些討論可能會導致什麼結果。

Yeah. Well, it was, it was great to have representatives visit just this past quarter from the doe from the dod from the EPA Workforce Development, visiting our Innovation Center and our pilot facility operating within that Innovation Center as well as the CRR facility. And we highlighted our cost benefits and environmental benefits and worker safety and comfort advantages for the community. Right, in an operating plant producing battery grade critical materials before their eyes, as they visited, we think that's quite impactful. And that that will really help our build of our relationship with the various government agencies on a go forward basis. And we've subsequent to those business had further interaction with those agencies. And we expect that continued conversations ought to do a great deal to help us support our ongoing grant efforts. And let's remember also that grants require cost share. So any company that's awarded a grant is going to have to provide a significant cost share. So you have to have the right financial strategic partner in order to support that cost share. So as I was mentioned earlier, the commercial and the overall financing go together hand in glove. Well, so does this because we've seen some companies that are have been awarded provisionally a large grant dollars. And everybody's wondering where they're going to get their cost share and how that's going to impact the company to be able to support that cost share. We think that strategic capital is what's going to be really required for the government to feel comfortable supporting companies on a go forward basis.

是的。嗯，很高興在上個季度有 EPA 勞動力發展部門的代表來訪，參觀我們的創新中心以及在該創新中心內運營的試點設施以及 CRR 設施。我們也強調了我們為社區帶來的成本效益、環境效益以及工人安全和舒適優勢。是的，正如他們所參觀的那樣，在他們眼前生產電池級關鍵材料的營運工廠中，我們認為這非常有影響力。這將真正有助於我們不斷建立與各個政府機構的關係。在這些業務之後我們與這些機構進行了進一步的互動。我們預計，持續的對話應該能夠極大地幫助我們支持我們正在進行的資助工作。我們也要記住，贈款需要分攤成本。因此，任何獲得資助的公司都必須提供大量的成本份額。因此，您必須擁有合適的財務策略夥伴才能支援成本分攤。正如我之前提到的，商業和整體融資密切相關。嗯，這也是因為我們看到一些公司暫時獲得了大筆撥款。每個人都想知道他們將從哪裡獲得成本分攤，以及這將如何影響公司支持該成本分攤。我們認為，戰略資本是政府真正需要的，才能放心地支持企業的發展。

Thank you. Next question. What is happening with the process material that aquametals is currently producing.

謝謝。下一個問題。Aquametals 目前生產的工藝材料發生了什麼情況。

Yes. So we are producing these materials and those materials are being sent to the samples that we've been talking about today to the various OEMS, etcetera. The overall capacity of the pilot facility, A design capacity is between 50-100 tons per year. So they're not giant amount, 20 tons is a truckload. So over the process of a year getting materials produced, sampled into the hands of O Ems and meaningful quantities for them to do their evaluation. As well as some of that is kind of a working capital to help prime the pumps. We'll call it for our commercial facility. So that's much more valuable than a small tiny trickle of revenue that we could have and we could be reporting, but we've chosen not to go that path because it's much more important to take that finite amount of materials and seed the market to develop those commercial relationships. So that's really what's been happening with the materials at the facility.

是的。因此，我們正在生產這些材料，這些材料將發送到我們今天討論的各種原始設備製造商等的樣品中。試驗裝置整體產能，設計產能為50-100噸/年。所以數量不是很大，20噸就一卡車了。因此，在一年的過程中，生產材料、取樣到 O Ems 手中，並獲得有意義的數量以供他們進行評估。其中一些是幫助啟動泵浦的營運資金。我們稱之為我們的商業設施。因此，這比我們可以擁有並且可以報告的一小部分收入更有價值，但我們選擇不走這條路，因為使用有限數量的材料並為市場發展提供種子更為重要那些商業關係。這就是該設施中材料的實際情況。

Thank you. That is all the time we have for questions today. I'd like to hand the call back over to Steve Cotton for any closing remarks.

謝謝。這就是我們今天提問的時間了。我想將電話轉回給史蒂夫·科頓（Steve Cotton），讓其結束語。

Great. Well, thanks everybody for continuing your support and having interest in aqua metals. And I think we'll have a lot more news to report in the near future as we are very busily working the way and what we've been talking about today and we look forward to reporting soon in our next quarterly update or sooner.

偉大的。好吧，感謝大家一直以來的支持以及對水金屬的興趣。我認為在不久的將來我們將有更多的新聞要報道，因為我們正在非常忙碌地工作以及我們今天所討論的內容，我們期待在下一個季度更新或更早的時間裡盡快報道。

Thanks everyone.

謝謝大家。

Thank you. That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你剩下的時光。