EPS of $-9.94 decreased by 779.7% from previous year
Net income of -6.15M
""No transcript data available for QQ2 2024 provided in this input."" -
Aqua Metals Inc (0HH6.L) QQ2 2024 Results: Cash Runway Intact but Persistent Losses Highlight Need for Revenue Levers in Lead Recycling
Executive Summary
Aqua Metals Inc. reported a challenging QQ2 2024 quarter characterized by continued cash burn and a substantive operating loss, underscored by negative gross profit and an EBITDA loss of roughly $5.72 million. Net income declined to about $6.15 million for the period, with EPS of −$9.94. The company ended the quarter with roughly $7.83 million in cash and cash equivalents and a net debt position of about −$3.97 million, reflecting a net cash runway supported primarily by financing activities rather than core operating performance.
Operationally, Revenue for the quarter was not disclosed in the primary income statement snapshot, while costs of revenue were reported at $2.373 million, producing a negative gross profit of the same magnitude. Operating expenses totaled approximately $6.17 million, driving a GAAP operating loss of about $6.16 million. Cash flow showed a mixed picture: operating cash flow was negative at about $3.75 million, capital expenditures were about $4.23 million, resulting in a free cash flow burn of around $7.98 million. Financing activities provided approximately $7.47 million, moderating the cash burn but not altering the structural cash-flow dynamics.
From a balance-sheet perspective, Aqua Metals maintains a solid equity base (approximately $25.21 million) and modest debt (total debt around $3.86 million; long-term debt $0.59 million). The company reports favorable liquidity ratios (current 1.19x, quick 1.07x, cash ratio near 1.0x), with a working capital footprint that supports near-term liquidity but not self-sustained profitability. Cumulative deficits remain a material concern, as reflected in retained earnings of roughly −$235 million, indicating a long history of losses that investors should weigh against any potential upside from technology licensing or scale-up.
Overall, the QQ2 2024 results reaffirm Aqua Metals’ status as a capital-intensive, early-stage lead-recycling technology company. The near-term investment thesis hinges on meaningful revenue generation, successful cost containment, and the realization of strategic value from AquaRefining technology through licensing or partnerships. Stakeholders should monitor progress on any commercialization milestones, capital efficiency improvements, and the ability to convert financing into durable earnings.
Key Performance Indicators
Operating Income
-6.16M
QoQ: -6.39% | YoY:-26.92%
Net Income
-6.15M
QoQ: -6.92% | YoY:-29.23%
EPS
-9.94
QoQ: 4.88% | YoY:-779.65%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed in the income statement snapshot; quarterly data in the fourth-quarter/quarterly tables indicate revenue around the mid-$2 million range for Q2 2024 in the four-quarter table, but the primary income statement line items show cost of revenue of $2.373 million and a gross loss of $2.373 million, implying negative gross margins under the reported structure.
Gross profit: −$2.373 million (gross margin not computable from the shown revenue line in the primary statement; the four-quarter table records revenue near $2.373 million, which would imply a breakeven to negative margin given the provided gross profit figure).
EBITDA: −$5.723 million.
Operating income: −$6.162 million.
Net income: −$6.15 million; Earnings per share (EPS): −$9.94; Weighted average shares outstanding: 618,965.
Financial Highlights
Revenue and profitability:
- Revenue: Not disclosed in the income statement snapshot; quarterly data in the fourth-quarter/quarterly tables indicate revenue around the mid-$2 million range for Q2 2024 in the four-quarter table, but the primary income statement line items show cost of revenue of $2.373 million and a gross loss of $2.373 million, implying negative gross margins under the reported structure.
- Gross profit: −$2.373 million (gross margin not computable from the shown revenue line in the primary statement; the four-quarter table records revenue near $2.373 million, which would imply a breakeven to negative margin given the provided gross profit figure).
- EBITDA: −$5.723 million.
- Operating income: −$6.162 million.
- Net income: −$6.15 million; Earnings per share (EPS): −$9.94; Weighted average shares outstanding: 618,965.
Cash flow and balance sheet:
- Net cash provided by operating activities: −$3.751 million.
- Capital expenditures: −$4.233 million.
- Free cash flow: −$7.984 million.
- Net debt: −$3.973 million (net cash position after cash and debt considerations).
- Cash and cash equivalents: $7.833 million at period end.
- Total assets: $33.658 million; total liabilities: $8.447 million; total stockholders’ equity: $25.211 million.
- Current ratio: 1.186x; quick ratio: 1.070x; cash ratio: 0.997x.
- Short-term debt: $3.267 million; long-term debt: $0.593 million; total debt: $3.860 million.
- Retained earnings: −$235.117 million; strong equity offset by large accumulated losses historically.
Growth and efficiency indicators:
- Days inventory outstanding: 34.44 days; payables outstanding: 63.68 days; CCC: −29.24 days (negative CCC reflects supplier payment timing relative to inventory turns).
- Debt to equity: 0.153x; debt to capital: 0.133x; enterprise value multiple and other market-based ratios show a negative implied enterprise value due to the loss-making profile and cash burn in the near term.
- Revenue growth YoY (where available): Not disclosed in the standard revenue ledger; gross profit YoY: −60.23%; operating income YoY: −26.92%; net income YoY: −29.23%; EPS YoY: −779.65% (the latter driven by base effects and share count changes, given small or variable quarterly earnings in prior periods).
- QoQ changes: Gross profit QoQ −7.42%; operating income QoQ −6.39%; net income QoQ −6.92%; EPS QoQ +4.88% (reflecting volatility in quarterly earnings and potentially small base effects).
Key takeaway metrics:
- The quarter shows ongoing proportionate burn to support development and potential commercialization, with negative gross profit and EBITDA. The company relies on financing activities to fund operations, as evidenced by the $7.47 million financing inflow that helped offset cash burn. liquidity metrics remain adequate for near-term obligations but do not reflect self-sustaining profitability.
- The negative free cash flow and ongoing losses indicate a high-risk, high-uncertainty profile with an emphasis on execution risk around AquaRefining technology monetization and any licensing/partnership deals.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-2.37M
-60.23%
-7.42%
Operating Income
-6.16M
-26.92%
-6.39%
Net Income
-6.15M
-29.23%
-6.92%
EPS
-9.94
-779.65%
4.88%
Key Financial Ratios
currentRatio
1.19
returnOnAssets
-18.3%
returnOnEquity
-24.4%
debtEquityRatio
0.15
operatingCashFlowPerShare
$-0.61
freeCashFlowPerShare
$-1.29
priceToBookRatio
1.63
priceEarningsRatio
-1.67
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the input. No earnings-call transcript highlights are available for QQ2 2024, and there are no quoted management remarks included in the supplied materials.
"No transcript data available for QQ2 2024 provided in this input."
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"Management commentary from the QQ2 2024 cycle is not included here; thus, quotes cannot be sourced from the transcript data."
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Forward Guidance
No formal guidance was included in the provided data. Given Aqua Metals’ current trajectory, investors should expect minimal revenue visibility in the near term absent a successful monetization of AquaRefining technology or material licensing deals. Near-term catalysts could include: (1) signing licensing/partnership agreements to monetize AquaRefining, (2) cost optimization to reduce operating expenses while scaling production, and (3) updates on any pilot or commercialization milestones that validate unit economics. Monitoring points include revenue progression, gross margin improvement (via cost controls or higher-value product mix), progress on capital expenditure efficiency, and the company’s ability to convert financing activity into durable earnings. The achievability of near-term targets is contingent on: (a) establishment of revenue-generating licenses or customer pilots, (b) successful scaling or deployment of AquaRefining technology, and (c) continued access to capital to fund operations until profitability is achieved.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HH6.L Focus
0.00%
0.00%
-24.40%
-1.67%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Aqua Metals remains a high-risk, high-pallback investment tied to the successful monetization of AquaRefining technology and the ability to scale or license the technology. The company shows a modest liquidity runway and a negative earnings trajectory, but a net cash cushion and limited debt provide flexibility to pursue strategic partnerships or licensing deals. The primary near-term catalysts are any formal licensing agreements, strategic partnerships, or pilots that demonstrate a path to revenue and improved unit economics. Absent meaningful top-line growth or margin expansion, the investment case remains contingent on management delivering a credible commercial deployment plan and a pathway to profitability.
Key Investment Factors
Growth Potential
Potential monetization of AquaRefining through licensing agreements or strategic partnerships; opportunities to commercialize new lead recycling processes or high-value downstream products; potential efficiency gains from process improvements and capex optimization.
Profitability Risk
Persistent losses and negative gross margin signal fundamental profitability risk; reliance on external financing to fund operations; regulatory and environmental compliance costs; potential competition from mature recycling incumbents; dependence on successful commercialization of AquaRefining.
Financial Position
Net cash position of approximately $3.97 million (net debt negative) provides modest liquidity runway; debt levels are light, but cumulative deficits remain a material concern; strong equity base offsets near-term liquidity risk but not profitability risk.
SWOT Analysis
Strengths
Moderate net cash position with $7.83m in cash and equivalents; low debt load and a relatively light near-term debt maturities.
Strong equity base with total stockholders’ equity of ~$25.21m provides balance-sheet resilience.
Inventory and receivables balance relatively modest, supporting liquidity.
Ongoing focus on AquaRefining technology positions the company to potentially monetize through licensing or partnerships if commercialization milestones are met.