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Stardust Power Inc.(SDST) - 2025 Q1 - Quarterly Report
SDSTStardust Power Inc.(SDST)2025-05-14 21:10
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Lithium Refinery Development - Stardust Power is developing a large-scale lithium refinery in Oklahoma to supply battery-grade lithium primarily for the electric vehicle market [171]. - The company plans to construct a refinery with a phased approach, starting with a production line of up to 25,000 metric tons per annum, with a second line to increase total capacity to 50,000 metric tons per annum [193]. - The total refinery cost is estimated at 1,165million,withplanstofinancethroughamixofdebt,equity,andpotentialgovernmentgrants[232].FinancialPerformanceandFunding−Thecompanyhasnotgeneratedanyrevenuesinceinceptionandhasbeenoperatingataloss,withanetlossof1,165 million, with plans to finance through a mix of debt, equity, and potential government grants [232]. Financial Performance and Funding - The company has not generated any revenue since inception and has been operating at a loss, with a net loss of 3,809,700 for the three months ended March 31, 2025, compared to a net loss of 1,399,213forthesameperiodin2024[217].−Generalandadministrativeexpensesincreasedsignificantlyto1,399,213 for the same period in 2024 [217]. - General and administrative expenses increased significantly to 5,748,648 for the three months ended March 31, 2025, up from 1,235,366inthesameperiodof2024,reflectinganincreaseof1,235,366 in the same period of 2024, reflecting an increase of 4,513,282 [217]. - The company has an accumulated deficit and has not earned any revenue since inception, raising concerns about its ability to continue operations without additional capital [252]. - The company anticipates funding its near-term operations through the sale of equity securities, promissory notes, and debt financing [233]. - For the three months ended March 31, 2025, net cash used in operating activities was 2,875,187,asignificantincreasefrom2,875,187, a significant increase from 934,680 in the same period of 2024 [246][247]. - The Company reported net cash provided by financing activities of 4,511,080forthethreemonthsendedMarch31,2025,primarilyfromapublicofferingthatraised4,511,080 for the three months ended March 31, 2025, primarily from a public offering that raised 5,750,400 [250]. Agreements and Partnerships - Stardust Power executed a non-binding letter agreement with Sumitomo for a long-term offtake agreement to supply 20,000 metric tons of lithium carbonate annually, with potential for increase [182]. - The company is in the process of negotiating with multiple suppliers for brine feedstock, including producers from the oil and gas industry, to source raw materials for lithium production [203]. - The Company entered into a consulting agreement with DRE Chicago LLC for 500,000andaloanof500,000 and a loan of 250,000 at 15% interest, maturing in March 2025, with an equity kicker of 375,000inCommonStock[268].−AbindingtermsheetwasestablishedwithEnduranceAntarcticaPartnersII,LLCforaloanof375,000 in Common Stock [268]. - A binding term sheet was established with Endurance Antarctica Partners II, LLC for a loan of 1,750,000 at 15% interest, maturing in March 2025, along with 3,500,000inCommonStockasanequitykicker[269].ComplianceandRegulatoryIssues−ThecompanyreceivednoticesfromNasdaqregardingnon−compliancewithlistingstandardsduetomarketvalueandbidpriceissues[186].−Thecompanyhasa180−daycomplianceperioduntilSeptember15,2025,toregaincompliancewithNasdaq′sMinimumPriceRule,requiringaminimumbidpriceof3,500,000 in Common Stock as an equity kicker [269]. Compliance and Regulatory Issues - The company received notices from Nasdaq regarding non-compliance with listing standards due to market value and bid price issues [186]. - The company has a 180-day compliance period until September 15, 2025, to regain compliance with Nasdaq's Minimum Price Rule, requiring a minimum bid price of 1.00 per share for 10 consecutive business days [187]. - The company also has until September 30, 2025, to comply with the MVLS Rule, which requires a market value of publicly held shares to close at 50,000,000ormorefor10consecutivebusinessdays[189].InvestmentsandEquity−Thecompanyinvested50,000,000 or more for 10 consecutive business days [189]. Investments and Equity - The company invested 1.6 million in IRIS Metals Limited, acquiring approximately 6% of its total equity, to explore strategic partnerships [181]. - The company issued 3,981 shares of common stock during the three months ended March 31, 2025, generating net proceeds of 15,922[238].−ThefairvalueoftheCompany′sCommonStockisdeterminedbasedonthird−partyappraisalsandvariousmarketconditions,impactingstock−basedcompensationmeasurements[261].MarketandEconomicConditions−TheCompanyiscurrentlyfacingavolatileinflationaryenvironment,whichcouldimpactitsfinancialconditionandoperations[289].−TheCompanyissubjecttocreditriskforcashbalancesexceedingtheFDICinsuredamountof15,922 [238]. - The fair value of the Company's Common Stock is determined based on third-party appraisals and various market conditions, impacting stock-based compensation measurements [261]. Market and Economic Conditions - The Company is currently facing a volatile inflationary environment, which could impact its financial condition and operations [289]. - The Company is subject to credit risk for cash balances exceeding the FDIC insured amount of 250,000, with only one financial banking institution [288]. - As of March 31, 2025, the Company had no significant risk related to changes in interest rates [287].