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American Battery Technology pany(ABAT) - 2025 Q3 - Quarterly Report
ABATAmerican Battery Technology pany(ABAT)2025-05-15 20:47

Revenue and Losses - Revenue for the three months ended March 31, 2025, was 979,977,comparedto979,977, compared to 0 for the same period in 2024, indicating a significant increase[12] - Net loss for the three months ended March 31, 2025, was (11,495,947),comparedto(11,495,947), compared to (9,995,136) for the same period in 2024, representing an increase in losses[12] - For the nine months ended March 31, 2025, the company reported a net loss of 36.6million,comparedtoanetlossof36.6 million, compared to a net loss of 29.1 million for the same period in 2024, indicating a 26% increase in losses year-over-year[21] - The company reported a net loss per share of (0.14)forthethreemonthsendedMarch31,2025,comparedto(0.14) for the three months ended March 31, 2025, compared to (0.19) for the same period in 2024[12] Expenses and Financial Performance - Gross loss for the three months ended March 31, 2025, was (2,689,960),whilethegrosslossfortheninemonthsendedMarch31,2025,was(2,689,960), while the gross loss for the nine months ended March 31, 2025, was (8,003,944)[12] - Total operating expenses for the nine months ended March 31, 2025, were 26,245,059,comparedto26,245,059, compared to 25,433,780 for the same period in 2024, reflecting a slight increase[12] - The company incurred stock-based compensation expenses of 12.8millionfortheninemonthsendedMarch31,2025,comparedto12.8 million for the nine months ended March 31, 2025, compared to 12.3 million in the same period of 2024[21] - Stock-based compensation expense for the period reached 6,330,914,contributingtotheoverallfinancialperformance[15]AssetsandLiabilities−CashandcashequivalentsasofMarch31,2025,were6,330,914, contributing to the overall financial performance[15] Assets and Liabilities - Cash and cash equivalents as of March 31, 2025, were 2,849,257, down from 7,001,786asofJune30,2024[9]−Totalcurrentassetsincreasedto7,001,786 as of June 30, 2024[9] - Total current assets increased to 23,285,228 as of March 31, 2025, compared to 18,406,048asofJune30,2024[9]−Totalliabilitiesdecreasedto18,406,048 as of June 30, 2024[9] - Total liabilities decreased to 10,851,323 as of March 31, 2025, from 16,207,492asofJune30,2024[9]−Stockholders′equityincreasedto16,207,492 as of June 30, 2024[9] - Stockholders' equity increased to 65,605,927 as of March 31, 2025, compared to 61,467,640asofJune30,2024[9]InventoryandProduction−AsofMarch31,2025,thetotalinventorywas61,467,640 as of June 30, 2024[9] Inventory and Production - As of March 31, 2025, the total inventory was 252,945,000, an increase from 154,320,000asofJune30,2024,representingagrowthof63.9154,320,000 as of June 30, 2024, representing a growth of 63.9%[49] - The cost of goods sold for the three months ended March 31, 2025, was 3.7 million, significantly exceeding the related revenue, attributed to the depreciation of fixed assets and production process finalization[36] - The Company expects the high cost of goods sold to continue rising but to decrease as a percentage of revenue as production scales and efficiencies are gained[36] Financing and Capital Structure - The company issued 8,773,586 common shares and warrants pursuant to registered direct offerings, raising 13,911,000[16]−ThecompanycompletedanAt−The−Marketoffering,resultingintheissuanceof5,938,786shares,raising13,911,000[16] - The company completed an At-The-Market offering, resulting in the issuance of 5,938,786 shares, raising 6,327,168[15] - The Company’s shareholders approved an increase in authorized shares from 80 million to 250 million, allowing for the reclassification of derivative liabilities totaling 2.1milliontoadditionalpaid−incapital[62]−TheCompanyhasauthorizedatotalof250,000,000sharesofcommonstockasofMarch31,2025,followinganamendmenttoincreasethenumberofauthorizedshares[93]GrantsandTaxCredits−TheCompanywasawardedataxcreditofupto2.1 million to additional paid-in capital[62] - The Company has authorized a total of 250,000,000 shares of common stock as of March 31, 2025, following an amendment to increase the number of authorized shares[93] Grants and Tax Credits - The Company was awarded a tax credit of up to 40.5 million through the 48C program for a new battery recycling facility in the U.S.[56] - The Company received a grant award of 144millionfromtheU.S.DOEfortheconstructionofalithium−ionbatteryrecyclingfacility,withcumulativefundsinvoicedtotaling144 million from the U.S. DOE for the construction of a lithium-ion battery recycling facility, with cumulative funds invoiced totaling 0.2 million as of March 31, 2025, representing 0.2% of total eligible reimbursements[57] - The Company recognized 4.3millionofinvoicedgovernmentfundsasanoffsettoresearchanddevelopmentcostsduringtheninemonthsendedMarch31,2025[50]OperationalChallengesandFutureOutlook−Thecompanyhasasignificantrelianceonobtainingdebtorequityfinancingtocontinueoperations,withsubstantialdoubtregardingitsabilitytocontinueasagoingconcernforthenext12months[25]−Thecompanyisfocusedonincreasingdomesticproductionofcriticalbatterymaterialsanddevelopingnewtechnologiesforextractionandrecyclingoflithium−ionbatteries[22]−Thecontinuationofthecompanyasagoingconcernisdependentongeneratingprofitfromoperationsandobtainingfinancing,withsubstantialdoubtexistingregardingitsabilitytocontinueforthenext12months[25]ShareholderandStockActivity−Theweightedaveragesharesoutstandingincreasedto85,090,957forthethreemonthsendedMarch31,2025,from51,993,863forthesameperiodin2024[12]−ThetotalunvestedshareawardsasofMarch31,2025,were7,816,136,withaweightedaveragegrantdatefairvalueof4.3 million of invoiced government funds as an offset to research and development costs during the nine months ended March 31, 2025[50] Operational Challenges and Future Outlook - The company has a significant reliance on obtaining debt or equity financing to continue operations, with substantial doubt regarding its ability to continue as a going concern for the next 12 months[25] - The company is focused on increasing domestic production of critical battery materials and developing new technologies for extraction and recycling of lithium-ion batteries[22] - The continuation of the company as a going concern is dependent on generating profit from operations and obtaining financing, with substantial doubt existing regarding its ability to continue for the next 12 months[25] Shareholder and Stock Activity - The weighted average shares outstanding increased to 85,090,957 for the three months ended March 31, 2025, from 51,993,863 for the same period in 2024[12] - The total unvested share awards as of March 31, 2025, were 7,816,136, with a weighted average grant date fair value of 2.18 per unit[110] - The Company issued 14,360,308 total warrants during the nine months ended March 31, 2025, including 3,548,426 warrants from a private placement[106] Depreciation and Impairment - The Company recognized a depreciation expense of 3.8millionfortheninemonthsendedMarch31,2025,significantlyhigherthan3.8 million for the nine months ended March 31, 2025, significantly higher than 121,075 in the previous year[21] - The Company recognized a depreciation expense of 1.2millionforthethreemonthsendedMarch31,2025,comparedto1.2 million for the three months ended March 31, 2025, compared to 39,665 for the same period in 2024[65] - An impairment charge of $10.3 million was recorded on assets held-for-sale for the fiscal year ended June 30, 2024[67]