Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — Investor Presentation (December 2018)
20 slides from Aqua Metals's investor presentation, Dec 11, 2018
Slide 1: Leading a Revolution in the Lead Acid Battery Industry: Lead Reinvented
Leading a Revolution in the Lead Acid Battery Industry “Lead Reinvented” Corporate Presentation December 2018
Slide 2: Forward-Looking Statements
This document contains forward - looking statements concerning Aqua Metals, Inc. Forward - looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as “expects,” “contemplates,” “anticipates,” “plans,” “intend
Slide 3: Aqua Metals Overview
• Innovative recycling technology produces high purity lead from used lead acid batteries (“LABs”) with major emissions reductions as compared to smelting • Novel, IP - protected modular equipment/process utilizes a safe and bio - degradable electrolyte to dissolve lead compounds for electroplating
Slide 4: Investment Highlights
4 Investment Highlights Proven Technology Targeting $20+ Billion Global Lead Commodity Market First Company to Develop a Cleaner Alternative to Smelting for Lead Recycling Pursuing Strategic Partnership with Johnson Controls, Inc., the World’s Largest Battery Company Supply Agreements with Interstat
Slide 5: Lead Acid Battery Market Driving Demand for Lead
Lead Acid Battery (LAB) Market Driving Demand for Lead 5 96% 4% LAB Li-ion NiMH Other • LAB production constitutes the largest use of lead today (1) • Annual LAB sales expected to grow from $50+ billion today to $84+ billion by 2025 (2) driving demand for lead • To address growing shortage of high -
Slide 6: The Problem and Solution to Recycling LABs
• Smelting - the current, conventional method of LAB recycling – A high temperature, polluting process with large costs and risks for proper environmental containment that can also leave behind large volumes of waste – Additional refining required to produce the high purity lead required for more mo
Slide 7: How AquaRefining Works
• Used LABs are delivered, broken down and separated, with the plastics and hard metallics removed and the remaining lead paste (approximately 50% of the battery) sent to AquaRefining • AquaRefining occurs in two steps: – A room temperature, water - based and bio - degradable lead - containing elect
Slide 8: TRIC Production Facility – Significant Progress Made
– Initial phase to be completed around end of 2018 which is expected to recapture 75% of electrolyte – Second phase set for first half of 2019 which is expected to recapture remaining 25% of electrolyte We have proven that AquaRefining works! Completed first 24 - hour run of an AR module Q2 2018 Beg
Slide 9: Johnson Controls: The World's Largest Battery Company
The World’s Largest Battery Company • Produces 20 - 30% of the world’s LABs and utilizes an equivalent percentage of the global lead supply (1) • Pioneered vertical integration and closed loop management of product life - cycle (manufacture batteries, distribute/recover, recycle) • Significant opera
Slide 10: Capital Light Strategy and Path to Margin Improvement
• Utilize current cash for capital programs targeting electrolyte recycling/reuse to improve contribution margin • Continue to focus production and improvements on first four modules to minimize losses and conserve capital • Increase proportion of finished metallic lead recovered from breaking batte
Slide 11: Licensing Greatly Expands Market Opportunity
Illustrative Scope Description Aqua Metals intends to complete ramp up at its lead recycling facility to 16 modules and potentially expand to 32 modules Aqua Metals intends to supply AR equipment, technology and services to convert and update lead recycling facilities worldwide Reach US NAFTA, EU, C
Slide 12: Technology Supported by Strong IP Portfolio
• IP Strategy focused on “Materials and Methods” – Proving electrochemical battery recycling is viable – Actively protecting our breakthrough technology • Filed 90 patent applications across 7 distinct patents • Key patents filed in up to 21 different countries / regions • 9 patents granted and 1 al
Slide 13: Management Team
Stephen Cotton, President • Extensive background in building, deploying, managing and decommissioning lead - acid batteries • Served as Chief Commercial Officer of Aqua Metals from January 2015 to June 2017 • Spent 15 years as the Co - Founder and CEO of Data Power Monitoring Corporation and Intelli
Slide 14: Financial Overview
Financial Overview OfeArs
Slide 15: Capitalization as of September 30, 2018
Capitalization as of September 30, 2018 15 Cash and Cash Equivalents $28.8 million Debt Interstate Batteries, 11% Secured Convertible Note, $7.12 Conversion Price, Matures May 18, 2019 $6.1 million Green Bank, Prime Rate plus 2 - 6% Secured Loan, Matures November 3, 2036 (1) $9.7 million Thermo Fish
Slide 16: Operating Results
Operating Results 16 2018 2017 2018 2017 Product sales 1,169$ 589$ 3,378$ 1,192$ Operating cost and expense Cost of product sales 6,453 3,140 16,489 5,671 Research and development cost 967 1,367 3,645 6,538 General and administrative expense 2,174 1,925 7,862 4,897 Impairment charge - - - 2,411 Tota
Slide 17: Balance Sheet
Balance Sheet 17 ASSETS September 30, 2018 December 31, 2017 Current assets Cash and cash equivalents 28,772$ 22,793$ Accounts receivable 861 882 Inventory 1,089 1,239 Prepaid expenses and other current assets 322 770 Total current assets 31,044 25,684 Non-current assets Property and equipment, net
Slide 18: Key Prospective Milestones
• Complete Phase I of capital improvement plan expected to achieve 75% recovery of electrolyte • Continue discussions with additional prospective partners • Prove contribution margin to begin scaling of facility to 16 modules (capex & opex improvements) • Begin Phase II of capital improvement plan e
Slide 19: Takeaways
19 Takeaways • Aqua Metals is at a key inflection point – Fortified management and board members focused on execution – AquaRefining works and in early stages of commercial production – Partnerships are strengthening and new partnership potential is growing • The lead market is growing in size and c
Slide 20: www.AquaMetals.com
www.AquaMetals.com NASDAQ: AQMS