Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — Investor Presentation (March 2020)
30 slides from Aqua Metals's investor presentation, Mar 11, 2020
Slide 1: Corporate Presentation: Leading a Revolution in the Lead Acid Battery Industry
Corporate Presentation March 11, 2020 Leading a Revolution In the Lead Acid Battery Industry
Slide 2: Safe Harbor
Safe Harbor This document contains forward-looking statements concerning Aqua Metals, Inc. (“Aqua Metals”, the “Company,” “we,” “us,” and “our”). Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words suc
Slide 3: Aqua Metals at a Glance
Aqua Metals at a Glance Developed a proprietary and environmentally friendly lead acid battery recycling technology, called AquaRefining AquaRefining uses water and organic acids rather than heat and furnaces to create 99.996% ultra pure lead for the ~$20B lead recycling industry which feeds the ~$6
Slide 4: The Current Problem and the Solution to Recycling Lead Acid Batteries
The Current Problem and the Solution to Recycling Lead Acid Batteries (LABs) Smelting AquaRefining The current, conventional method of LAB recycling Electrochemical alternative to LAB recycling • A high temperature, polluting process with large costs and risks • Room temperature, water-based process
Slide 5: Key Business Drivers
Key Business Drivers $20+ billion addressable global lead recycling industry needs a major upgrade Growth in lead acid battery applications (automotive, data centers, renewables, etc.) driving market demand Industry and planet needs an environmentally friendly technology to increase sustainability b
Slide 6: How Did We Get Here?
How Did We Get Here? Production, Fire 24x7 Ops Produced to ~35K Ingots Veolia Operated Plant IPO, Break Ground Partnering + A Setback (towards capital light goal) $30M IPO Jul ’15 Clarios Partnership Feb ’17 11/29 Fire caused ~$40-50M loss $10M USDA Backed Loan Sticky Lead” Problem & Delays ~50% Ent
Slide 7: Demonstration Plant has Proven That AquaRefining Works
Demonstration Plant has Proven That AquaRefining™ Works ~35,000 ingots or 55 truckloads produced and shipped to Clarios, the Worlds’ largest battery manufacturer for test battery production In 2019, AquaRefinery process ran for several months at or above 2.4 tonnes/day/module design Produced 99.996+
Slide 8: Fire Event – November 29, 2019
Fire Event – November 29, 2019 Cause of fire was not related to Aqua technology or process but rather contracting work being done in the AquaRefining area Occurred during final weeks of preparation to scale from 4 to full capacity of 16 AquaRefining modules Insurance - $37M+ claims so far in equipme
Slide 9: We Have Shifted To Accelerate Licensing & Our Capital Light Strategy
We Have Shifted To Accelerate To Licensing & Our Capital Light Strategy Build Cash - Conserving and building our cash balance and runway Finalize Licensed Electrolyzer - Run 1-2 updated electrolyzers in Q2 in final licensable form License AquaRefining - Identify Licensing site #1 in 2020 for deploym
Slide 10: Electrolyzer V1.25L – Readying For Licensing
Electrolyzer V1.25L – Readying For Licensing Engineering team has been implementing minor improvements to the current electrolyzer design 1 Improved power distribution to improve electrical efficiency and operating cost 2 Tank profile changes to automate solid removal from the tank – run 90+ days 3
Slide 11: 2020 First Half Initiatives
2020 First Half Initiatives Collect Insurance Proceeds - Working with public adjustor + specialized counsel to assist in facilitating payment collections for casualty + business interruption losses Sell Unneeded Assets - Balance sheet shows ~$37M (NBV) on books for equipment, some can be sold and re
Slide 12: Our Cash Needs Runway Can Be Non-dilutive
Our Cash Needs Runway Can Be Non-dilutive 2020~2021 2022 & Beyond Fund Capital Light Pivot From Insurance Proceeds Potential Licensing Revenue + Asset Sales Copyright © 2019 Aqua Metals, Inc. All Rights Reserved. 12
Slide 13: Our Longer Term Vision
Our Longer Term Vision Extend AquaRefining Apps Extend work to prove Aqua Battery Performance Self Sufficiency Strengthen Industry Influence Grow Cash Position Work Towards Best Available Technology Status Seek to Deploy Licensed Site #1 Seek to Contract Licensed Site #2+ 2020 2021 2022 2023 2024 Pi
Slide 14: Market Drivers
Market Drivers New High-Growth LAB Applications Require High-Purity Lead Auto growth in emerging Renewable energy Data Center & Telecom Electric Vehicles use markets - China, India and economy is growing and industries are growing lead batteries in addition South America Cars dependent on energy rap
Slide 15: LAB Market Driving Growing Demand for Lead
LAB Market Driving Growing Demand for Lead Annual LAB sales expected to nearly double 90 84.46 BILLION to $84+ billion by 2025¹ driving demand for lead AquaRefining could help lead recyclers meet IN 2025 80 the growing demand for battery production while reducing environmental impact. S LAB producti
Slide 16: The AquaRefined Advantage
The AquaRefined Advantage Compared to traditional recycling technologies, AquaRefining offers large advantages: purity 6% 9 9 . 9 9 Improved Enables Global Reduced Potentially at an Equal Product Quality Battery Recyclers Environmental or Lower Total Cost Purest Lead to Meet Demand Impact to Recycle
Slide 17: Planned Revenue Sources
Planned Revenue Sources 2020 - Insurance Collections Sets up potentially lucrative global • Already collected $10M of insurance payouts licensing model for existing and • Working towards total payout of up to $50M greenfield battery recycling facilities • Licensing model is built; licensee pipeline
Slide 18: AquaRefining Licensing Opportunity
AquaRefining Licensing Opportunity Aqua Metals’ vision is to partner with battery recycling centers across the globe to increase production without increasing emissions – over 300 potential plants already identified We Believe Recycling Centers Have Two Models For Retrofitting With AquaRefining: Inc
Slide 19: Licensing Market Drivers
Licensing Market Drivers Secondary lead demand is projected to increase by an estimated 1,803,000 tonnes between 2018 and 2030¹ All new batteries need 70% - 85% recycled lead We believe Secondary lead demand will eventually surpass Secondary lead smelting capacity due to environmental limits on furn
Slide 20: Smelters Could Benefit From AquaFit
Smelters Could Benefit From “AquaFit” “AquaFit” – Adding AquaRefining to Smelters • Increase capacity without the permitting challenges of adding a furnace while reducing emissions • Lower emissions without decreasing capacity • Can produce higher quality product • Produce the purest lead on Earth r
Slide 21: Licensing Market Opportunity
Licensing Market Opportunity Addressable Market based on 2018 Secondary lead production Secondary Lead Production 7,240,000 Tonnes Total Paste available for AquaRefining 3,600,000 Tonnes Total Addressable market ($2000.00 per T lead) $7,200,000,000 Source: Wood MacKenzie Copyright © 2019 Aqua Metals
Slide 22: Over $180M Invested
Over $180M Invested Investment Made Supports Global Licensing Business IP Strategy Focused on “Materials And Methods” $180M+ invested into getting the technology patented, proven and Proves that electrochemical battery recycling is near licensable state technologically viable Heavy investment to dat
Slide 23: Experienced Management and Engaged Board Focused on Execution
Experienced Management and Engaged Board Focused on Execution Executive Management Team Independent Directors Stephen Cotton, President and CEO, Executive Director S. Shariq Yosufzai, Non-Executive Chairman • Aqua Metals’ Chief Commercial Officer from January 2015 to June 2017 • Held various executi
Slide 24: Aqua Metals - In Summary
Aqua Metals - In Summary First of its kind environmentally friendly solution for lead acid battery recycling – producing 99.996% pure lead Company has proven AquaRefining at demonstration commercial scale which we believe is a catalyst to launch our global licensing business $20B+ and growing addres
Slide 25: Financial Overview
AQUA BMETALS Financial Overview f§ AQUAMETALS
Slide 26: Capitalization
Capitalization Cash and Cash Equivalents as of December 31, 2019 $7.6 million Debt as December 31, 2019 ¹Net of issuance costs. Green Bank, Prime Rate plus 2-6% Secured Loan, Matures November 3, 2036 (1) $8.6 million ² Does not include warrants to be issued to Veolia: Pursuant to the (2) Warrants (O
Slide 27: Consolidated Balance Sheet
December 31, 2019 December 31, 2018 ASSETS Current assets Cash and cash equivalents $ 7,575 $ 20,892 (Accounts receivable, net 244 725 Insurance Proceeds receivable 17,446 Inventory, net 1,257 765 Prepaid expenses and other current assets 981 370 Total current assets 27,503 22,752 Consolidated Non-c
Slide 28: Consolidated Statements of Operation
Consolidated Statements of Operation 2019 G&A expenses (in thousands, except share and per share amounts) Year ended December 31, 2019 2018 Includes several non-cash expense items: Product sales $ 4,874 $ 4,449 $3.1M Veolia OM&M agreement $5.8M Veolia warrant expense Operating cost and expense $3.4M
Slide 29: Consolidated Cash Flow Statement
Year ended December 31, 2019 2018 Cash flows from operating activities: Net loss $ (44,795) $ (40,254) Reconciliation of net loss to net cash used in operating activities Depreciation 3,899 3,213 Amortization of intellectual property 182 190 Accretion of asset retirement obligation 46 44 Fair value
Slide 30: www.aquametals.com
NASDAQ: AQMS WWW.AQUAMETALS.COM