ASP Isotopes(ASPI) - 2024 Q1 - Quarterly Report

Financial Performance - The company recognized revenue of $840,354 for the three months ended March 31, 2024, compared to$0 for the same period in 2023[192]. - Cost of goods sold for the three months ended March 31, 2024, was $561,484, resulting in a gross margin of$278,870[194]. - Research and development expenses increased to $215,134 for the three months ended March 31, 2024, from$207,334 in the same period of 2023[198]. - Selling, general and administrative expenses rose significantly to $5,878,546 for the three months ended March 31, 2024, compared to$3,517,490 in 2023[200]. - The company incurred a net loss of $7,012,463 for the three months ended March 31, 2024, compared to a net loss of$3,615,078 for the same period in 2023[195]. - The company reported a net cash used in operating activities of $2,970,469 for the three months ended March 31, 2024, compared to$1,444,965 for the same period in 2023, indicating an increase in operational losses[212][213]. - The company’s net loss for the three months ended March 31, 2024, was $6,964,844, which was adjusted for various non-cash expenses[212]. Funding and Capital Structure - In March 2024, the company's subsidiary Quantum Leap Energy raised$20.55 million through the issuance of Convertible Promissory Notes, maturing on March 7, 2029[166]. - The company completed an IPO in November 2022, raising net proceeds of $3.8 million from the sale of 1,250,000 shares at$4.00 per share[163]. - In October 2023, the company entered into agreements to issue 9,952,510 shares for total cash consideration of approximately $9.13 million, with share prices ranging from$0.9105 to $0.96[165]. - Future funding requirements indicate that existing cash will not be sufficient to cover operating expenses and capital expenditures for at least the next 12 months[205]. - The company expects to finance its cash needs through public or private equity or debt financings, but may face challenges due to adverse global economic conditions and market volatility[210]. - The company may require substantial additional financing to support the development and commercialization of future isotopes and nuclear medical doses for PET scanning[208][209]. - The company is facing potential dilution of stockholder ownership if additional capital is raised through equity or convertible debt securities[210]. Operations and Acquisitions - The company is focused on the production and commercialization of enriched isotopes, including Carbon-14, Molybdenum-100, and Silicon-28, with a multi-isotope enrichment plant expected to be operational by mid-2024[162]. - The company has developed Quantum Enrichment technology for producing isotopes like Uranium-235, which may be used in next-generation nuclear reactors[163]. - The company acquired 51$2 million, with the first installment of $500,000 paid in November 2023[167]. - The company acquired assets from Molybdos for approximately$734,000 and a dormant Silicon-28 plant for about $364,000[169][170]. - The company has entered into a lease for a Molybdenum processing plant that will expire on December 31, 2030[178]. - The company is planning additional isotope enrichment plants beyond the one in Pretoria, South Africa[162]. - The company has entered into a lease for additional laboratory space in Pretoria, South Africa, to support its research and development activities[179]. - The company has begun recognizing revenue from the sale of nuclear medical doses for PET scanning following the acquisition of 51$506,390 related to the March 2023 stock issuance[164]. - Financing activities generated net cash of $20,263,995 for the three months ended March 31, 2024, primarily from the issuance of convertible notes payable, a significant increase from$4,493,610 in the same period of 2023[215][216]. - Net cash used in investing activities was $1,245,825 for the three months ended March 31, 2024, compared to$362,056 in the same period of 2023, reflecting increased investment in machinery and equipment[214]. - The company has ongoing lease obligations totaling approximately $28,000 per month for its main facility in Pretoria, South Africa, with terms expiring in 2026[218]. Future Outlook - The company anticipates that future isotopes will not be commercially available in substantial quantities until at least the second half of 2024, with U-235 availability being highly uncertain and potentially taking several years[207]. - The company expects substantial increases in research and development expenses as it continues to develop future isotopes[184]. - The company has no off-balance sheet arrangements as defined by SEC regulations during the periods presented[219].