Electra Battery Materials (ELBM) - 2023 Q2 - Quarterly Report

Financial Performance - The company reported a net income of CAD 12,002,000 for the three months ended June 30, 2023, compared to a net income of CAD 7,534,000 for the same period in 2022, reflecting a year-over-year increase of 59.5%[4] - Operating loss for the six months ended June 30, 2023, was CAD 8,327,000, compared to CAD 6,378,000 for the same period in 2022, indicating an increase in losses of 30.6%[4] - As of June 30, 2023, Electra Battery Materials Corporation reported a net loss of CAD 9,976,000 for the period[6] - The company reported a net loss of $9,976 for the six months ended June 30, 2023, compared to a net income of$9,864 in the same period of 2022[72] - The basic loss per share for the six months ended June 30, 2023, was $(0.28), while the diluted loss per share was also$(0.28)[72] Assets and Liabilities - Total assets increased to CAD 198,977,000 as of June 30, 2023, up from CAD 187,524,000 at December 31, 2022, representing a growth of 6.5%[2] - The company’s total liabilities rose to CAD 79,840,000 as of June 30, 2023, compared to CAD 61,015,000 at December 31, 2022, marking an increase of 30.8%[2] - Shareholders' equity decreased to CAD 119,137,000 as of June 30, 2023, down from CAD 126,509,000 at December 31, 2022, a decline of 5.8%[2] - As of June 30, 2023, the accumulated deficit increased to CAD 190,755,000 from CAD 180,779,000 at the end of 2022[6] - The balance of long-term government loans payable was $4,159 as of June 30, 2023, compared to$3,777 on December 31, 2022, representing an increase of approximately 10.1%[44] Cash Flow and Financing - Cash and cash equivalents decreased to CAD 6,228,000 as of June 30, 2023, down from CAD 7,952,000 at December 31, 2022, a decline of 21.7%[2] - The company reported cash flows used in operating activities of CAD 4,997,000 for the six months ended June 30, 2023, compared to CAD 8,803,000 for the same period in 2022, a decrease of 43.5%[5] - The company completed a private placement on August 11, 2023, raising gross proceeds of CAD 21,500,000, consisting of CAD 16,500,000 from a brokered placement and CAD 5,000,000 from a non-brokered placement[13] - Electra is actively pursuing various financing alternatives, including equity and debt financing, to enhance liquidity and capital resources[13] - The company does not have sufficient financial resources to complete the construction and final commissioning of the refinery without additional financing in 2023 and 2024[11] Capital Expenditures and Investments - The total capital costs for the refinery complex under construction are estimated to be between CAD 155,000,000 and CAD 167,000,000, with approximately CAD 81,700,000 spent as of June 30, 2023[11] - The carrying value of property, plant, and equipment increased to $100,184 as of June 30, 2023, up from$82,288 on December 31, 2022, reflecting a growth of approximately 21.8%[26] - Capitalized development costs for the period ended June 30, 2023, totaled $14,978, a decrease from$64,080 as of December 31, 2022[27] Shareholder Information - The weighted average number of shares outstanding (basic) increased to 35,972,480 for the three months ended June 30, 2023, compared to 32,069,929 for the same period in 2022, an increase of 12.0%[4] - The balance of common shares increased from 35,185,977 on December 31, 2022, to 35,635,073 on June 30, 2023[6] - The total number of warrants increased from 3,464,177 at the end of 2022 to 13,279,204 by June 30, 2023, with no warrants exercised during the period[66] - The company issued 10,796,054 warrants in conjunction with 2028 Notes during the six months ended June 30, 2023[67] Strategic Initiatives - The company initiated a strategic business review process to evaluate potential strategic alternatives to maximize shareholder value[13] - The company is exploring its Idaho mineral properties as a potential future source of North American cobalt and copper[14] Other Financial Metrics - The company incurred CAD 1,291,000 in salary and benefits expenses for the three months ended June 30, 2023, compared to CAD 529,000 for the same period in 2022, an increase of 143.5%[4] - The company recorded a foreign exchange gain of $2,020 for the three months ended June 30, 2023, compared to a loss of$(342) in the same period of 2022[71] - The company incurred a fair value gain of $21,945 on convertible notes payable and warrants for the six months ended June 30, 2023[53]