美國
證券交易委員會 及交易所
華盛頓特區，20549
表單
截至年度季度結束
或
過渡期從 至
佣金
文件編號：
| （根據其章程指定的）及名稱完全一致的註冊人 |
(州 或其他轄區 公司組織或註冊證明書） |
（美國國稅局雇主識別號碼） 識別號碼） |
| (主要行政辦公室地址，包括郵政編碼) |
| (註冊人的電話號碼，包括區號) |
根據該法案第12(b)條紀錄的證券：
| 每個類別的標題 | 交易標誌 | 注冊在每個交易所的名稱 | ||
| 你接受的訓練數據截止到2023年10月。 |
請勾選是否申報人在過去12個月內（或申報人短於該季度而被要求申報的情況下）已申報所有《1934年證券交易法》第13條或第15條所要求的所有報告，並且申報人在過去90天內一直受到這些申報要求的約束。
標示：檢查符號是否顯示，即在過去12個月內（或對於要求提交此類文件的更短季度），登記人已遵守《S-t規則》第405條規定，遞交了每一份要求提交的互動數據文件。
請勾選指示是否申報人屬於大型、加速或非加速申報人、較小型上市公司或新興成長公司。詳見《交易所法》第120億2條中對「大型加速申報人」、「加速申報人」、「較小型上市公司」和「新興成長公司」的定義。
| 大型及加速提交者 | ☐ | 加速提交者 | ☐ | |
| ☒ | 較小的報告公司 | |||
| 新興成長型公司 |
如果是新興成長型公司，請在核對號選項中註明，表决人是否選擇不使用期限延長季度來遵守根據《交易法》第13(a)條提供的任何新的或修訂的財務會計準則。☐
通過勾選選項表示，是否登記的公司是一家殼公司（如交易所法案第1202條所定義） 是 ☐ 否
截至2024年11月8日，流通在外的普通股數量為 .
美國 電池科技公司及其子公司
指數 至表格10-Q
| 第一部分 – 基本報表（未經審核） | ||
| 事項 1 | 未經查核的基本報表 | 3 |
| 截止2024年9月30日和2024年6月30日的簡明合併資產負債表 | 3 | |
| 截止2024年和2023年9月30日的三個月簡明合併收益表 | 4 | |
| 截止2024年和2023年9月30日的三個月簡明合併股東權益變動表 | 5 | |
| 截止2024年和2023年9月30日的三個月簡明合併現金流量表 | 6 | |
| 附註至簡明綜合財務報表 | 7 | |
| 項目 2 | 管理層對財務狀況和業績的討論與分析 | 19 |
| 事項 3 | 有關市場風險的定量和定性披露 | 24 |
| 事項 4 | 內部控制及程序 | 24 |
| 第二部分。其他資訊 | ||
| 項目 1 | 法律訴訟 | 25 |
| 項目 1A | 風險因素 | 25 |
| 項目 2 | 股票權益的未註冊銷售和資金用途 | 35 |
| 項目 3 | 優先證券違約 | 35 |
| 項目 4 | 礦業安全披露 | 35 |
| 項目 5 | 其他資訊 | 35 |
| 項目 6 | 展品 | 36 |
| 簽名 | 37 | |
| 2 |
第一部分 - 財務信息
項目 1. 基本報表
美國 電池科技公司
未經查核的 合併資產負債表
| 2024年9月30日 | 2024年6月30日 | |||||||
| 資產 | ||||||||
| 現金 | $ | $ | ||||||
| 應收賬款 | ||||||||
| 庫存（註4） | ||||||||
| 應收補助款（註5） | ||||||||
| 預付費用和存款 | ||||||||
| 應收訂閱費（附註13） | ||||||||
| 持有待售資產（附註7） | ||||||||
| 流動資產總額 | ||||||||
| 不動產、廠房及設備，淨額（附註7） | ||||||||
| 採礦產業（附註8） | ||||||||
| 無形資產（註9） | ||||||||
| 使用權資產（附註12） | ||||||||
| 總資產 | $ | $ | ||||||
| 負債及股東權益 | ||||||||
| 應付帳款及應計負債（附註10） | $ | $ | ||||||
| 應付票據，流動（附註11） | ||||||||
| 流動負債總額 | ||||||||
| 股權補償負債（附註15） | ||||||||
| 長期負債（附註6） | ||||||||
| 總負債 | ||||||||
| 承諾和條件（註17） | ||||||||
| 臨時股權： | ||||||||
| D類優先股授權： 優先股，面值為$ 已發行及流通： 且 截至2024年9月30日及2024年6月30日的優先股。 | ||||||||
| 股東權益： | ||||||||
| 已授權A系列優先股： 優先股，面值：$ 每股；已發行和流通： 截至2024年9月30日和2024年6月30日的優先股。 | ||||||||
| 已授權B系列優先股： 優先股，面值：$ 每股；已發行和流通： 截至2024年9月30日及2024年6月30日的優先股。 | ||||||||
| 已授權的C系列優先股： 優先股，每股面值$ 已發行及流通： 截至2024年9月30日及2024年6月30日的優先股。 | ||||||||
| 普通股授權： 普通股，每股面值為$ 已發行及流通： 和 截至2024年9月30日及2024年6月30日，分別為普通股 | ||||||||
| 資本公積額額外增資 | ||||||||
| 可發行普通股（應收） | ( | ) | ( | ) | ||||
| 累積虧損 | ( | ) | ( | ) | ||||
| 股東權益總額 | ||||||||
| 負債和股東權益總額 | $ | $ | ||||||
隨附的附註是這些簡明合併未經審核的基本報表不可或缺的一部分。
| 3 |
美國 電池科技公司
未經審計的 簡明綜合損益表
| 截至三個月 2024 年 9 月 30 日結束， | Three months ended 2023年9月30日 | |||||||
| 營業收入 | $ | $ | ||||||
| 銷貨成本 | ||||||||
| 毛虧損 | ( | ) | ||||||
費用： | ||||||||
| 一般及行政費用 | $ | $ | ||||||
| 研發 | ||||||||
| 勘探成本 | ||||||||
| 營業費用總額 | ||||||||
| 其他收入（費用）之前的淨損失 | ( | ) | ( | ) | ||||
| 其他收入（費用） | ||||||||
| 利息支出 | ( | ) | ( | ) | ||||
| 攤銷及財務成本摺扣 | ( | ) | ( | ) | ||||
| 投資未實現收益（損失） | ( | ) | ||||||
| 衍生負債公允價值變化 | ||||||||
| 債務清償損失 | ( | ) | ||||||
| 定向增發虧損 | ( | ) | ||||||
| 負債歸類股本連結合約公平價值變動 | ( | ) | ||||||
| 其他收入 | ||||||||
| 其他總費用 | ( | ) | ( | ) | ||||
| 淨虧損 | $ | ( | ) | $ | ( | ) | ||
修改認股權證視同股息 | ( | ) | ||||||
| 可供普通股股東淨損失 | $ | ( | ) | $ | ( | ) | ||
| 每股淨損，基本與稀釋 | $ | ) | $ | ) | ||||
| 加權平均流通股數 | ||||||||
附註是這些簡略合併未經審核的基本報表不可或缺的一部分。
| 4 |
美國 電池科技公司
未經核數的股東權益簡明綜合陳述表
截至2024年9月30日止三個月：
| 優先股 | 普通股 | 追加 已付資本 | 普通股 | 累積 | ||||||||||||||||||||||||||||
| 股份 | 金額 | 股份 | 金額 | 資本 | 可發行 | 虧損 | 總計 | |||||||||||||||||||||||||
| 2024年6月30日資產負債表 | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||||
| 根據股份獎勵計畫而發行的股份 | - | ( | ) | |||||||||||||||||||||||||||||
| 基於股票的補償費用 | - | - | ||||||||||||||||||||||||||||||
| 根據股份購買協議發行的股份，扣除發行成本 | - | |||||||||||||||||||||||||||||||
| 根據股份購買協議的應收款項結算 | - | ( | ) | |||||||||||||||||||||||||||||
將股權相關合同重新分類為負債 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
發行D系列可贖回優先股 | - | |||||||||||||||||||||||||||||||
根據認購協議發行普通股和warrants | - | |||||||||||||||||||||||||||||||
| 根據債務消除發行的股份 | - | |||||||||||||||||||||||||||||||
| 根據股份購買協議進行的應收款項結算（Tysadco） | - | - | ||||||||||||||||||||||||||||||
| 本期淨虧損 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 截至2024年9月30日的餘額 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||||||||||
截至2023年9月30日的三個月：
| 優先股 | 普通股 | 追加 已付資本 | 普通股可發行 | 累積 | ||||||||||||||||||||||||||||
| 股份 | 金額 | 數字 | 金額 | 資本 | (應收款項) | 赤字 | 總計 | |||||||||||||||||||||||||
| 2023年6月30日結餘 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||||||||
| 發行股份以獲得專業服務 | - | ( | ) | ( | ) | |||||||||||||||||||||||||||
| 基於股份的獎勵歸屬 | - | ( | ) | |||||||||||||||||||||||||||||
| 基於股票的補償費用 | - | - | ||||||||||||||||||||||||||||||
| 根據反向股票拆分的四捨五入所發行的股份 | - | ( | ) | |||||||||||||||||||||||||||||
| 根據資產收購回收的股份 | - | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
| 根據股份購買協議發行的股份，扣除發行成本 | - | |||||||||||||||||||||||||||||||
| 根據認股權證費用所發行的股份 | - | ( | ) | |||||||||||||||||||||||||||||
| 本期淨虧損 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||
| 2023年9月30日的餘額 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||||||
附註是這些簡略合併未經審核的基本報表不可或缺的一部分。
| 5 |
美國 電池科技公司
未經查核 縮表合併現金流量表
| 三個月結束。 2024 年 9 月 30 日結束， | 三個月結束。 2023年9月30日 | |||||||
| 營運活動之現金流量： | ||||||||
| 淨虧損 | $ | ( | ) | $ | ( | ) | ||
| 調整為使淨虧損轉化為經營活動所使用現金： | ||||||||
| 折舊費用 | ||||||||
| 融資成本的攤薄 | ||||||||
| 租賃權資產攤銷 | ||||||||
| 投資未實現虧損 | ||||||||
| 基於股票的薪酬 | ||||||||
| 發行股份以獲得專業服務 | ( | ) | ||||||
| 衍生負債公允價值變化 | ( | ) | ||||||
| 換股選擇權公平價值變動 | ||||||||
| 負債分類權益連動合約公平價值變動 | ( | ) | ||||||
| 債務清償損失 | ||||||||
| 定向增發損失 | ||||||||
| 營運資產和負債的變化： | ||||||||
| 應收賬款 | ||||||||
| 存貨 | ( | ) | ( | ) | ||||
| 應收補助款 | ( | ) | ||||||
| 預付費用和存款 | ||||||||
| 其他流動資產 | ( | ) | ||||||
| 應付帳款及應計負債 | ( | ) | ||||||
| 經營活動所使用的淨現金流量 | ( | ) | ( | ) | ||||
| 投資活動現金流量： | ||||||||
| 其他收購存款 | ( | ) | ||||||
| 資產、設備和水權的收購 | ( | ) | ( | ) | ||||
| 購買水權/無形資產 | ( | ) | ||||||
| 投資活動使用的淨現金流量 | ( | ) | ( | ) | ||||
| 來自融資活動的現金流量： | ||||||||
| 通過市價公開發行普通股籌集的款項 | ||||||||
訂閱協議款項（附註13） | ||||||||
| 行使股票購買權的款項 | ||||||||
| 來自應付票據的收入，扣除發行成本後的淨額 | ||||||||
| 應付票據本金支付的款項 | ( | ) | ( | ) | ||||
| 股票購買協議的款項，扣除發行成本后的淨額 | ||||||||
| 融资活动提供的净现金 | ||||||||
| 現金增加（減少） | ( | ) | ||||||
| 現金 - 期間開始 | ||||||||
| 現金 - 期間結束 | $ | $ | ||||||
| 補充揭露（附註16） | ||||||||
附註是這些簡略合併未經審核的基本報表不可或缺的一部分。
| 6 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
1. 組織和營運性質
美國電池科技公司（「本公司」或「ABTC」）是鋰電池行業的新進入者，致力於通過探索新的鋰、鎳、鈷和錳等電池材料的原始資源，開發和商業化從原始資源中提取這些電池金屬的新技術，以及商業化內部開發的一個整合製程來回收鋰電池，從而增加美國國內這些電池材料的生產量，並確保當這些材料達到終端生命時，構成元素的電池金屬以閉環方式返回到國內製造業供應鏈。通過這種三管齊下的方式，本公司正致力於促進這些電池材料的國內生產，并確保這些材料在結束壽命時，其構成元素的電池金屬以閉環方式返回到國內製造業供應鏈。
公司於2011年10月6日在內華達州法律下成立，目的是為了獲取礦產權，最終目標是成為一家生產性礦業公司。我們的業務歷史有限，並在2024財年第四季度產生了我們的初始營業收入。我們的主要執行辦公室位於內華達州雷諾市華盛頓大道100號，套房100，郵政編碼89503。
2. 流動性和營運持續性
截至2024年9月30日止三個月，本公司出現$淨損失
公司的持續經營依賴於其運營能夠產生利潤及其獲取債務或股權融資的能力。沒有保證公司能夠產生足夠的利潤、獲得這類融資，或以有利條件獲得這些融資，這可能會限制其運營。任何此類融資活動均受到市場條件的影響。這些不確定性導致對公司在這些基本報表發佈後的12個月內繼續作為一個持續經營體的能力產生了實質性的懷疑。這些簡化的合併基本報表並未包括對資產賬面金額的可回收性和分類以及負債的分類可能需要的任何調整，如果公司無法繼續作為一個持續經營體，這些調整可能是重大的。
對持續經營的評估不包括公司的即市場（ATM）募資（附註13），該募資可能提供資金來源。
根據我們目前的營運計劃，除非我們從設施的運營中產生收入或籌集額外資金（債務或股權），否則我們可能無法維持現有票據協議中的財務契約（票據11）。如果票據持有人不予以豁免此類契約違規，將會導致違約事件，並使未償還的餘額加速到期。如果我們通過公開或 股權 投資發行籌集額外資金，而不是債務或額外票據的發行，則現有股東的所有權利益可能會被稀釋。
3. 簡報基礎、重要會計政策摘要及最新會計聲明
本附帶的簡明合併基本報表是根據美國公認會計原則（"U.S. GAAP"）為臨時財務資訊所編製，並根據10-Q表格的指導和美國證券交易委員會（"SEC"）的規則10-01及S-X條例的指示編製，並與公司編製年度經審核合併基本報表的基準相同。
截至2024年9月30日的總體資產負債表和綜合損益表，以及股東權益變動和現金流量的總體簡表，未經核數，但包含所有調整，其中包括公司認為必須進行的對財務狀況、營業成果和現金流量進行公正呈現的正常往來調整。截至2024年9月30日的三個月的成果不一定代表預期2025年6月30日結束時的成果，也不代表任何未來中間期的成果。截至2024年6月30日的總體資產負債表取自核數的財務報表；然而，它並不包含美國通用會計準則所要求的所有信息和附註，以完成完整的財務報表。隨附的總體簡表應與截至2024年6月30日的年度核數財務報表和附註一起閱讀，這些附註包括公司於2024年6月30日之前的年度報告10-k，日期為2024年9月23日提交給證券交易委員會的文件。公司的合併子公司包括其全資子公司Oroplata Exploraciones E Ingenieria SRL（已解散）、LithiumOre Corporation（前身為Lithortech Resources Inc）、ABMC AG, LLC（已解散）和aqua metals transfer LLC。
隨附的簡明綜合中期基本報表包括公司及其子公司的賬戶。所有重要的公司間餘額和交易在合並中已被消除。
根據公司2024財年表格10-k的披露，在公司2023財年合併基本報表發佈後，公司識別出在適用會計標準編纂（“ASC”）710，“薪酬-一般”和ASC 718，“薪酬-股票薪酬”中有關現金和股權獎勵的支出確認存在錯誤，這些獎勵都需滿足服務和績效的控制項。ASC 710和ASC 718要求在績效控制項達到可能性時，需根據所需服務的提供來確認薪酬成本。歷史上，公司對某些現金和股權獎勵直到達到里程碑形式的績效控制項時，才確認薪酬成本，而對於公司普通股warrants績效基礎獎勵，當績效控制項成為可能實現時或實現時，之前並未確認任何薪酬成本。由於普通股warrants和限制性股票單位（“RSU”）的績效基礎獎勵是以固定的美元價值授予且以變量數量的普通股warrants或RSUs結算，這些獎勵在普通股warrants或RSUs的數量確定之前被歸類為負債，並應根據預期的獎勵結算時間，將相應的薪酬成本記錄為當前或長期負債，或額外的實收資本，當績效控制項成為可能實現時。
此錯誤的更正導致補償成本增加了$
| 7 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
公司還發現了在應用 ASC 815「衍生金融工具和避險」中的一個錯誤，該錯誤涉及於公司可轉換票據中一個不符合權益分類的獨立買權的起初和隨後認列。ASC 815要求將獨立買權進行分割，後續變動在分割衍生工具的公平價值中的變化應予記錄於收益中。在發行可轉換票據時，公司應當已認列衍生負債及由衍生物分割所產生的可轉換票據折扣，衍生負債的公平價值變動和折扣的累計應記錄於收益中。
這一錯誤的修正導致融資成本費用的攤銷和增值增加了少於$
本 公司已根據ASC 250《會計變更和錯誤更正》的指導，評估了下表中詳細說明的更正對之前發布的合併基本報表的影響， 無論是個別還是整體。 公司已得出結論，該等更正對其之前發布的合併基本報表均屬不重要。雖然管理層 認為該錯誤的影響對公司截至2023年9月30日的之前發布的合併基本報表無關緊要，但受到此錯誤影響的基本報表項目已經被更正。
以下的表格反映了公司綜合基本報表中受錯誤影響的部分。
綜合營運狀況總表
| 2023年9月30日結束的三個月 | ||||||||||||
| 如報告所示 | 調整 | 已更正 | ||||||||||
| 營運費用 | ||||||||||||
| 一般及行政費用 | $ | $ | $ | |||||||||
| 研發 | ||||||||||||
| 探索 | ||||||||||||
| 營業費用總額 | ||||||||||||
| 其他收入（費用）之前的淨損失 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| 其他收入（費用） | ||||||||||||
| 攤銷及財務成本摺扣 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| 其他收入（支出）總計 | ( | ) | ( | ) | ( | ) | ||||||
| 歸屬於普通股股東的淨虧損 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| 每股淨損，基本與稀釋 | $ | ) | $ | ) | $ | ) | ||||||
總結財務狀況表
| 2023年9月30日結束的三個月 | ||||||||||||
| 如報告 | 調整項目 | 已更正 | ||||||||||
| 股東權益 | ||||||||||||
| 額外投資資本： | ||||||||||||
| 基於股票的補償費用 | ||||||||||||
| 2023年9月30日的餘額 | $ | $ | $ | |||||||||
| 累積虧損 | ||||||||||||
| 期間淨虧損 | ( | ) | ( | ) | ( | ) | ||||||
| 2023年9月30日的餘額 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| 股東權益總額 | ||||||||||||
| 2023年9月30日的餘額 | $ | $ | ( | ) | $ | |||||||
現金流量表之簡明整合
| 2023年9月30日結束的三個月 | ||||||||||||
| 如報告所述 | 調整 | 已更正 | ||||||||||
| 經營活動 | ||||||||||||
| 可歸屬於股東的淨虧損 | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
| 調整為使淨虧損轉化為經營活動所使用現金： | ||||||||||||
| 攤銷及增值費用 | $ | $ | $ | |||||||||
| 基於股票的薪酬 | ||||||||||||
| 營運資產和負債的變化： | ||||||||||||
| 應付帳款及應計負債 | $ | $ | $ | |||||||||
| 經營活動所用的淨現金 | $ | ( | ) | $ | $ | ( | ) | |||||
| 8 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
使用估計值
這些遵循美國公認會計原則的簡明合併基本報表的編製要求管理層作出估計和假設，這些估計和假設影響報告的資產和負債的金額，以及在基本報表日期披露的或有資產和負債的相關資訊，以及報告期間的收入和費用的報告金額。公司定期評估與股權激勵補償的公允價值、長期資產及有形資產的估值及可回收性（需進行減值測試）及遞延所得稅資產的估值準備相關的估計和假設。
現金及現金等價物
公司認為所有原始到期日為三個月或更短的短期投資在購買時都視為等值現金。截至2024年9月30日和2024年6月30日，公司並無任何等值現金。
金融工具公允價值
公允價值被定義為在測量日市場參與者之間的有序交易中，所能獲得的賣出資產的價格或轉移負債所支付的價格。公允價值是一個退出價格概念，假設在願意的市場參與者之間進行有序交易，並需基於市場參與者在為資產或負債定價時所使用的假設。當前的會計指導建立了三層次的公允價值層級，作為考慮這些假設及對估值方法中所用輸入進行分類的基礎。這一層級要求實體最大化可觀察輸入的使用，並最小化不可觀察輸入的使用。用於測量公允價值的三個輸入層級如下：
水平 1：報告實體可以在計量日期評估的相同資產和負債的活躍市場中引用價格（未調整）。
層級 2：在層級1中除報價價格外，對於資產或負債而言是可觀察的，無論是直接或間接的。
層級 3: 對於資產或負債的不可觀察輸入，包括公司對市場參與者在根據在情況下最佳信息定價資產或負債時所使用的數據的假設。
公司的現金、應收賬款、預付費用和押金、應付票據、應付賬款及應計負債的賬面價值因其短期到期而接近公允價值。
公司的定期公允價值計量包括衍生負債的估值及分離票據的召喚、轉換選擇權，以及歸屬於負債分類的股權連結合同，這兩者皆被歸類為公允價值層級3。請查看相關公允價值披露的註6和11。由於使用不可觀察的輸入，導致對於輸入在報告日期可能合理地有所不同存在固有不確定性。
公司的非經常性公平值衡量包括2024年9月30日持有待售資產的估值。詳情請參閱附註7以查看相關的公平值披露。
最近會計公告的採用
公司持續評估新的會計準則，以判斷其適用性。當判斷一個新的會計準則影響公司的財務報告時，公司將進行審核，以判斷變更對其合併基本報表的影響，並確保有足夠的控制措施，以確認公司的合併基本報表正確地反映了變更。
在 2023年11月，財務會計準則委員會（"FASB"）發布了會計準則更新（"ASU"）2023-07， 分部報告 - 可報告分部披露的改進，該更新主要通過增強對重要分部費用和用於評估分部績效的資訊。 此ASU的修訂對於2023年12月15日之後開始的年度期間以及2024年12月15日之後開始的財政年度中的中期期間有效。 允許提前採用。公司正在過程中確定此ASU將對合併基本報表的註腳中所包含的披露產生的影響。
2023年12月，FASB發行了ASU 2023-09《所得稅披露的改善》，該標準主要更新了與利率協調和支付所得稅信息相關的所得稅披露。這一ASU還包括某些其他修訂，以提高所得稅披露的有效性。這一ASU中的修訂適用於2024年12月15日後開始的年度期間。允許對尚未發布或可發布的年度基本報表進行早期採納。公司正在評估這一ASU對所附合併財務報表附注中的披露將產生的影響。
2024年11月，FASb發布ASU 2024-03，綜合損益表 - 支出報告綜合收入 - 支出分解披露（子題220-40）：收入表支出分解。此更新中的修訂要求在財務報表附註中披露有關某些成本和費用的特定信息。修訂澄清了應披露哪些成本和費用包含在銷售成本和銷售、一般和行政費用類別中，該等成本和費用應以定性描述方式揭示其未單獨分解的金額。此外，修訂要求披露銷售費用的總金額和公司對銷售費用的定義。該更新將對截至2026年12月15日後開始的年度報告日和截至2027年12月15日後開始的中期報告日起有效，允許提前採納。公司正在評估此ASU對附註中所含合併財務報表披露的影響。
4. 存貨
公司的鋰礦電池回收操作庫存包括原材料，即電池進料形式的鋰礦，以及製成品，即黑色物料和其他金屬的形式。庫存價值以平均成本或淨可實現值較低者為基礎。庫存的攤銷值包括公司獲得電池進料及任何相關攜帶和加工成本。
| 2024年9月30日 | 2024年6月30日 | |||||||
| 原材料 | $ | $ | ||||||
| 成品 | ||||||||
| $ | $ | |||||||
5. 政府補助金和稅收抵免獎勵
資助款項應收款代表符合條件的成本，且有合理保證符合資助條件，但至報告日期仍未收到相應的所有基金類型。由於從聯邦政府的收款已經及預期將繼續及時進行，因此尚未設立懷疑帳戶的提存。如果金額變得無法收回，將計入營運成本。截至2024年9月30日，資助款項應收款為$
2021年1月20日，美國能源部（DOE）宣布公司已被選中進行為期三年的項目洽談，總預算為$
在2021年8月16日，公司獲得了一份為期30個月的項目合同，總預算為$
| 9 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
2022年10月21日，美國DOE宣布該公司已被選定進行為期五年的項目獲獎談判，總預算為$
開啟
2022 年 11 月 17 日，美國 DOE 宣布，該公司已被選為一項三年的項目進行獎勵談判，其中包括
總預算 $
2024年3月28日，ABTC獲選參與高達$營業收入的稅收抵免，透過符合條件的高級能源專案貸款(48C)計畫。這項稅收抵免由美國財政部國內稅務局頒發，經由美國DOE進行高度競爭的技術和經濟審查過程，評估申請人製造行業的設施是否符合條件，以推動美國在全球競爭性關鍵物料回收、處理和精煉製造行業的建設。這項稅收抵免可用於ABTC位於內華達州斯托里縣塔霍雷諾工業中心(TRIC)的電池回收設施迄今的資本支出返還，也可用於未來的資本支出。截至2024年9月30日，公司已涉及符合條件的支出以獲得此稅收抵免，但只有在合規標準有合理保證後才會予以確認。
此外
在2024年3月28日，ABTC被選中獲得高達$
在2024年9月23日，
美國能源部宣布該公司已被選中進行一項高度競爭的獎勵談判，金額為$
6. 衍生負債
在截至2024年9月30日的季度期間，公司的可轉換票據上的嵌入式轉換特徵及其未償還的warrants可能根據ASC 815-40「衍生品與對沖 – 實體自有股權的合約」被視為衍生負債，因為授權股份不足以結清這些未償還的與股權相關的合約，而這些工具的條款仍然允許持有人行使，這將要求公司以淨現金結清該工具。在這種情況下，公司已根據ASC 815-40採用排序方法來判斷其與股權相關的金融工具在發行時及每個後續報告日期的分類。根據這項排序政策，公司將最近發行或修改日期的與股權相關的金融工具重新分類為負債。衍生負債初始記錄於公允價值，並在每個報告日期重新估值，公允價值的變動在簡明合併的營運報告中報告。公司利用Black-Scholes選擇權定價模型在初始重新分類和後續估值日期對衍生負債進行評價，並根據適用的工具特定條款進行調整。
在2024年8月，公司根據定向增發認購協議發行了普通股及可購買普通股的warrants。詳情見第13註解。由於在發行時授權股份不足，warrants被分類為衍生負債，按發行時的公允價值衡量，並在2024年9月30日重新衡量為公允價值。
對於剩餘的定向增發認購協議，本公司確認了權證的公允價值為$
在
2024 年 9 月，本公司的可換股票據被修訂，以提高轉換期權的兌換率。查看更多
在註 11 上討論。修改後，本公司不再擁有足夠的授權股份，以完成所有股權掛鈎合約
包括可能轉換後的可轉換票據，因此，嵌入式轉換功能已從
可轉換票據將作為衍生性負債帳目。公司計算出分裂轉換功能的公平價值
金額為 $
| 10 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
在截至2024年9月30日的季度內，公司根據其ATm發行了額外的
普通股，並由於公司的排序政策，沒有足夠的授權
股份來結清其所有的股本相關金融工具。公司將公允價值為$的warrants重分類至負債。
以下表格列出了公司在截至9月30日的季度進行估值和重新評估衍生負債的Black-Scholes模型輸入數據和假設：
| 2024 | ||||
| 加權平均預期期限（年） | ||||
| 無風險利率 | % | |||
| 股息率 | % | |||
| 波動率 | % | |||
截至2024年9月30日的季度衍生負債相關活動摘要如下：
| 認股權 衍生負債 | 轉換 選擇權衍生負債 | 總計 衍生負債 | ||||||||||
| 2024年6月30日資產負債表 | $ | $ | $ | |||||||||
| 再分類之 公允價值於期間內 | ||||||||||||
| 發行之 公允價值於期間內 | ||||||||||||
| 公允價值變動 | ( | ) | ||||||||||
| 餘額，2024年9月30日 2024年 | $ | $ | $ | |||||||||
7. 產業、廠房及設備
下表顯示截至2024年9月30日及2024年6月30日的固定資產、廠房及設備：
| 2024年9月30日 | 2024年6月30日 | |||||||
| 土地 | $ | $ | ||||||
| 建築 | ||||||||
| 設備和車輛 | ||||||||
| 總財產、廠房及設備 | ||||||||
| 減：累積折舊 | ( | ) | ( | ) | ||||
| 不動產、廠房及設備淨值 | $ | |||||||
公司承認了$的折舊費用
在2024財年第四季，公司批准了一項計劃，賣出主要由Fernley地點的土地和建築物等資產組成。公司做出了這個決定，是因為秘魯設施的收購將加快我們的生產和商業化進程。Fernley地點的資產賬面金額為$
8. 採礦物業
在2022年7月21日，本公司行使購買涉及內華達州托諾帕未申請專利的礦區權益的選擇權。從那時起，本公司與第三方合作進行鑽探計畫和分析，以驗證礦區的品位和連續性。 超過50%的推斷礦產資源已升級為測定和指示性分類。本公司仍處於勘探階段並支出所有礦區勘探成本。如果本公司確定了已證實和可疑的儲備，並制定了經濟營運礦山的計劃，將進入發展階段，並將未來成本資本化，直到生產建立。
2023年7月22日，公司開展了第三個勘探計劃，以推進Tonopah Flats鋰礦項目。此鑽探計劃包括核心填補和外推鑽探，以支持國內資源的發展，目標是升級到“確認和指示”資源分類。公司選擇並聘用了Kb Drilling進行本次最新鑽探計劃的填補和外推採樣，其中包括從另外八個鑽孔中採集樣品
在
2023年12月，公司簽訂了一份空地出讓及接受協議，以收購某些礦產專利，總計$
於2024年4月24日，公司宣布完成"修訂後資源評估及初步經濟評估 針對位於內華達州美國埃斯梅拉達和奈郡的Tonopah Flats 鋰礦項目（"修訂IA"）"，並發佈 S-k 1300技術報告摘要（"TRS"），披露Tonopah Flats 鋰礦項目的礦產資源，包括初步經濟評估。 該TRS由合格者RESPEC Company LLC完成，符合S-k法規第1300項的要求，生效日期為2024年4月5日。
9. 無形資產
於2023年9月12日，公司從托馬斯·C·伍德沃德生前信託獲得約
公司收購TRIC的商業規模電池回收設施，其中包括價值$水權
下表顯示了在以下地點的總無形資產:
| 2024年9月30日 | 2024年6月30日 | |||||||
| 水權 | $ | $ | ||||||
| 11 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
10. 應付賬款和應計負債
下表顯示截至時的應付帳款及應計負債總額：
| 2024年9月30日 | 2024年6月30日 | |||||||
| 應付帳款 | $ | $ | ||||||
| 應計固定資產 | ||||||||
| 應計費用 | ||||||||
| 市場協議結算 | ||||||||
| 使用權負債，流動 | ||||||||
| 應付帳款和應計負債總額 | $ | $ | ||||||
於2024年7月3日，公司與美洲Mercuria Energy America LLC達成協議，以解決他們分別與一項市場協議有關的爭端，該協議於2023年5月訂立。根據和解協議條款，公司同意向Mercuria Energy America LLC進行六次每月支付，每次支付$
11. 應付票據
在2023年5月17日，本公司與Mercuria Investments US, Inc.簽訂了一項信貸協議（「信貸協議」），用於預付款購買本公司的回收電池金屬製品。因此，庫存作為未償餘額的擔保品。信貸協議的總貸款金額最高可達$
2023年8月30日，公司全額償還了所有依據信貸協議所負的債務、負債及其他義務，並終止了信貸協議。由於終止信貸協議，公司並未因此而產生任何重大提前終止罰款。
於2023年8月29日，公司與High Trail（以下稱「買方」）簽訂了一份證券購買協議（以下稱「購買協議」），根據該協議，公司向買方出售最高達$
本公司根據ASC 815-15「衍生工具與對沖」的衍生會計考量分析了票據的轉換特徵，並確定獨立看漲期權應當分拆並作為衍生負債進行單獨會計。因此，該衍生負債在每個報告日按公允價值計量，相關的收益或損失在簡明合併營運報表中反映。請參見 以前發佈的合併基本報表的更正 於注釋3。本公司確定該衍生負債在票據發行時的公允價值為 $
注意
折扣和發行成本總計$
開啟
二零二四年九月十三日，該等債券被修訂，允許支付總本金為 $
下表顯示截至：的票據淨賬面價值。
| 2024年9月30日 | ||||
| 本金未償還 | $ | |||
| 與分離換股權有關的債務折扣 | ( | ) | ||
| 從衍生負債的債務折扣攤銷 | ||||
| 損耗價值淨額 | $ | |||
下表顯示截至2024年9月30日的應付票據的到期情況：
| 2024年10月15日 | $ | |||
| 減：未攤銷的債務折扣和發行費用 | ( | ) | ||
| 總標的付款 | $ | |||
| 票據應付款，流動 | $ | |||
| 應付票據，非流動 | $ |
| 12 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
12. 租賃
租約賦予承租人在一定期間內控制特定資產使用權的權利，以交換對價。操作租約的 使用權資產（「RoU資產」）在公司合併資產負債表的資產部分列示， 而租賃負債則包含在公司合併資產負債表的負債部分，日期為2024年9月30日及2024年6月30日。
RoU 資產代表公司在租賃期間使用基礎資產的權利，而營運租賃負債代表公司應根據租約支付租金的義務。公司在合約起初確定是否為租約。 RoU資產和負債基於租賃開始日期被承認，其基礎是租賃期間內租金支付的現值。大多數營運租約包括續約期權，根據市場現況調整租金。用於計算某些物業RoU資產的條款包括公司有合理把握會行使的續約期權。
用於判斷租約支付的開始日期現值的折現率是租約中隱含的利率，或者
當該利率無法輕易判斷時，公司會根據歷史貸款協議估計一個利率，
公司租用辦公設施，租期至各不相同的日期屆滿，其中許多不超過一年。
截至2024年9月30日的三個月營運租賃成本，每個都約為$
截至2024年9月30日，當前租賃負債中包括$
| 2024年9月30日 | 2024年6月30日 | |||||||
| 經營租賃權使用資產 | $ | $ | ||||||
| 租賃負債 | $ | $ | ||||||
下表顯示截至2024年9月30日的經營租賃負債的到期情況：
| 2025年9月30日 | $ | |||
| 2026年9月30日 | ||||
| 總租賃付款 | ||||
| 扣除：折扣 | ( | ) | ||
| 總經營租賃負債 | $ | |||
| 營運租賃負債，流動 | $ | |||
| 營運租賃負債，非流動 | $ |
以下的表格顯示了截至2024年9月30日時計算營運租賃權利使用資產的加權平均剩餘租賃期限和加權平均折扣率。
| 加權平均租賃期限（年） | ||||
| 加權折現率加權值 | % |
| 13 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
13. 股東權益
此優先股
我們 修訂及重述的公司章程授權發行優先股，並規定優先股可以不時以一個或多個系列的形式發行。我們的董事會將有權確定每個系列股份的投票權（如有）、指定、權力、偏好、相對的、參與的、可選擇的或其他特殊權利，以及任何限制、條件和條款。我們的董事會將能在不需股東批准的情況下發行帶有投票權及其他權利的優先股，這可能會對普通股持有者的投票權和其他權利產生不利影響，並可能產生反收購效果。我們的董事會無需股東批准便能發行優先股的能力，可能會延遲、推遲或防止我們的控制權變更或現有管理層的更換。
截至目前，公司已授權總計 股優先股。其中公司已指定總計 股備有四個類別的優先股，分別為A系列優先股、B系列優先股、C系列優先股和D系列優先股。截至 2024年9月30日 和 2024年6月30日，有 和 股D系列優先股已發行並流通。以下是各類別優先股的描述：
二零二四年九月十六日，公司進行認購及投資
與其行政總裁 Ryan Melsert（Ryan Melsert）（該公司為認可投資者）的代表協議，根據該協議，該公司根據該協議
同意發行和出售五個（) 本公司 D 系優先股股份，面值 $ 每股，致梅爾塞特先生
總購買價格為 $
D系列優先股應全額贖回，但不得部分贖回，
隨時（i）如董事會全權裁量下命令此贖回，或（ii）在經修訂的公司章程的修正案生效時，自動贖回，實施增加公司已授權普通股股份的數量。
在此贖回時，D系列優先股的持有人將收到考慮金額$
系列A優先股
該公司在2024年6月30日及2023年12月31日分別發行並流通優先股。 授權的A系列優先股股份數量，面值為$ 公司擁有 截至2024年9月30日和2024年6月30日，已發行且流通的A系列優先股股份數量。
系列b優先股
該公司在2024年6月30日及2023年12月31日分別發行並流通優先股。 授權發行面值為$的B系列優先股。 每股公司的 年6月30日和2024年9月30日，B系列優先股發行和流通股為
序列C優先股
該公司在2024年6月30日及2023年12月31日分別發行並流通優先股。 授權發行帶有面值$的C系列優先股。 每股。公司於2024年9月30日和2024年6月30日持有。 C系列優先股已發行並在2024年9月30日和2024年6月30日持有。
系列 D優先股
該公司在2024年6月30日及2023年12月31日分別發行並流通優先股。 授權每股面值為$的D系列優先股。 本公司擁有 股份和 截至2024年9月30日和2024年6月30日已發行及流通的D系列優先股的股份。
普通 股票
該公司在2024年6月30日及2023年12月31日分別發行並流通優先股。 授權發行百萬股普通股，面值為$ 。
| 14 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
截至2024年9月30日止三個月：
在該期間內，公司發行了 在股份獎勵解鎖時發行普通股。
於2024年4月3日，公司與Virtu Americas LLC簽訂了ATm銷售協議，根據該協議 公司可以不時透過銷售代理人分別發售股份（「股份」），每股面值為$，總發售價高達$
在2024年8月1日，公司同意賣出 普通股的
股份，
在發行時，公司認為其授權股票不足以結清warrants（見註6）。因此，這些warrants被歸類為負債類別，並在每個報告期重新測量其公允價值，公司首先將收益分配給warrants，任何剩餘收益則分配給普通股。當認列的普通股和warrants的公允價值超過收到的收益時，會認列當日損失。
在此期間內，公司發行了 普通股，代替現金支付$
在
2024年7月22日，董事會授權並批准將到期日延長至4月30日，2025年，針對
在此期間內，公司承認了$的股票酬勞費用。 百萬美元，這增加了$的股本溢價和$的權益酬勞負債。
| 2024 | 2023 | |||||||
| 可換債券 | ||||||||
| 認股權證 | ||||||||
| 分享獎勵未償還 | ||||||||
| 總潛在稀釋 | ||||||||
| 15 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
截至2024年9月30日的三個月內，發生了 根據定向增發發行的warrants
（見註釋13），其中
| 數量 認股權 | 加權平均 行使價 | 加權平均 剩餘合約期限 |
總內在價值 | |||||||||||
| 2024年6月30日資產負債表 | $ | |||||||||||||
| 已授予 | ||||||||||||||
| 已行使 | ||||||||||||||
| 已過期 | ( | ) | ||||||||||||
| 截至2024年9月30日的餘額 | $ | $ |
| |||||||||||
| 可行使，2024年9月30日 | $ | $ | ||||||||||||
公司已設立了2021年保留計劃（“保留計劃”），以發行股份來留住關鍵高管、董事和員工。保留計劃允許授予多種不同類型的獎勵，包括但不限於受限股份單位和受限股份獎，總稱為“股份獎勵”。股份獎勵通常在美國通用會計準則下具有相同的費用特徵，並且通常在四年期限內按照一定比率解鎖。 每年％的利率。
根據保留計劃，公司被授權向員工和非員工發行最多十百分之（）的股份，這是截至2022年12月31日的已發行普通股總數的完全稀釋基礎上。公司每年12月31日根據該計劃調整授權股份，當保留計劃繼續有效。截止2024年9月30日的三個月內，公司授予了 百萬股獎勵股份。
| 16 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
15. 股權補償獎勵（續）
| 單位 | 加權- 平均 授予日期 公允價值 每股 | |||||||
| 2024年6月30日的未發放股份獎勵 | $ | |||||||
| 已授予 | ||||||||
| 已歸屬 | ( | ) | ||||||
| 沒收 | ( | ) | $ | |||||
| 2024年9月30日未授予的獎勵 | $ | |||||||
當獎項被授予時，基於授予日期之基礎普通股的公平市場價值相當的股價補償將在要求的服務期內支出，在通常為四年，最多為十年的合約期限內，使用符合ASC 718「補償-股票補償」下可接受的分期授予歸屬方法。公司在發生剝奪時進行核算。2024年9月30日結束的季度內獲得的股份獎項的公平價值總計為$ 百萬元。
公司在截至2024年和2023年9月30日的三個月內分別承認了$百萬的股票報酬費用。 百萬 和 $ 截至2024年和2023年9月30日的三個月內的金額為百萬美元。到2024年9月30日和2024年6月30日， 股權補償負債總計為$ 百萬美元和$ 百萬美元與授予公司高級職員的warrants和RSUs相關， 當時員工和高級職員尚未實現績效目標，但達成的可能性較高。在2024年9月30日之後，績效目標已經達成，並且已獲得董事會的批准。
截至2024年9月30日，未攤銷與尚未實現的股權酬勞費用約為$ 百萬之多，應於加權平均剩餘期間內承認的支出 年。
| 2024 | 2023 | |||||||
| 銷貨成本 | $ | $ | ||||||
| 一般及行政費用 | ||||||||
| 研發 | ||||||||
| 探索 | ||||||||
| 總股票基礎 補償 | $ | $ | ||||||
執行長和選定的其他關鍵員工有資格根據董事會的決定獲得基於公司營運目標達成程度的普通股績效獎勵。這些股份獎勵的支付金額會根據公司營運目標的達成程度而有所不同。這些基於績效的獎勵通常包括一個基於服務年限的要求，一般為四年。
| 17 |
美國 電池科技公司
附註 至簡明合併基本報表
（未經審核）
16. 補充現金流量表揭露
截至9月30日的三個月：
| 2024 | 2023 | |||||||
| 補充揭露： | ||||||||
| 支付利息 | $ | $ | ||||||
| 非現金投資和融資活動： | ||||||||
| 在流動負債中累計的財產及設備購買 | ||||||||
| 資本化的存款作為投資活動 | ||||||||
| 作為融資活動確認的其他應收款 | ||||||||
| 以普通股支付的債務 | ||||||||
17. 承諾和條件
不時，該公司可能會參與各種訴訟和法律程序，這些都是在業務的正常過程中發生的。訴訟存在固有的不確定性，而這些或其他事項中的不利結果可能不時出現，這可能會對業務造成損害。除非在此另有說明，否則管理層目前並不知悉任何可能對我們的業務、財務狀況或經營業績，單獨或總體上造成重大不利影響的法律程序或索賠。
經營 租約
公司在內華達州雷諾市租賃其主要辦公地點。它還在內華達大學雷諾校區短期租賃實驗室空間。主要辦公地點的租約將於2024年11月30日到期，實驗室租約也將於2024年11月30日到期。 根據ASC 842的指導，該公司已將主要辦公室租約記錄在其綜合平衡表的運營租約中。關於運營租約承諾的詳細資訊，請參閱第12註釋－租約。
財務 保證:
內華達州
和其他州，以及管理聯邦土地礦業運作的聯邦法規，要求提供財務保證
用於礦山填海和封閉的估計成本，包括地下水質保護計劃。公司滿意
使用現金債券和擔保債券的組合使用的財務保證要求。本公司財務保證金額為
要求提供將因法律、法規、填海和封閉要求以及成本估算的變化而有所不同。在九月
2024 年 30 日，本公司與美國礦井關閉及填海/恢復成本估算相關的財務保證義務
總計 $
18. 隨後的事件
在2024年6月18日，根據公司的薪酬委員會的建議，我們的董事會通過了一項2024年美國電池科技公司員工股票購買計劃（簡稱「ESPP」），該計劃提供發行最多的股份。 在2024年11月13日，於我們的2024年度股東大會（簡稱「年度大會」）上，我們的股東批准了ESPP。ESPP的目的是為公司的員工及其子公司（如ESPP所述）提供透過購買普通股獲得公司所有權益的機會。
在2024年11月12日，2024年8月1日執行的部分定向增發交易被撤銷，導致總共發行41個單位，組成如下：
於2024年11月13日舉行的年度大會上，我們的股東通過並採納了對公司章程的修訂（「修正案」），以增加公司普通股的授權股份数 1-4482 。 於2024年11月14日，修正案已向內華達州州務卿提出並在提交時生效。
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項目 2. 管理層對財務狀況和營運結果的討論與分析
以下的討論和分析應與我們的簡明綜合基本報表及相關註釋一同閱讀， 如「項目 1. 簡明綜合基本報表」。本報告中提及的「美國電池」、「公司」、「我們」、「我們的」和「我們」均指美國電池科技公司及其子公司。
前瞻性陳述
我們在本報告中發表前瞻性陳述，並可能在未來向證券交易委員會（SEC）或交易所提交文件時發表此類陳述。我們也可能在新聞稿或其他公開或股東通訊中發表前瞻性陳述。我們的前瞻性陳述受到風險和不確定性的影響，包括我們目前的期望和可能或假定的未來營運結果信息。當我們使用「可能」、「也許」、「將」、「應該」、「相信」、「期待」、「預期」、「估計」、「繼續」、「可能」、「規劃」、「潛在」、「預測」、「預測」、「計畫」、「致力於」或類似的用語，或就我們的意圖、信念或當前期望發表聲明時，我們在進行前瞻性陳述。我們的前瞻性陳述還包括但不限於關於我們的流動性和資本資源、我們作為持續營業實體的能力、成功執行我們的業務策略的能力、籌集額外資本的能力以及關於我們預期的未來財務狀況、營運結果、現金流和業務計劃的聲明。
雖然我們相信我們的前瞻性陳述是合理的，但您不應該過度依賴任何此類前瞻性陳述，這些陳述基於我們在本報告日期或其他地方製作日期可獲得的信息。由於這些前瞻性陳述基於需進行重大業務、經濟和競爭不確定性的估算和假設，其中許多超出我們的控制範圍或可能變動，因此實際結果可能大不相同。可能導致這種差異之因素包括但不限於本報告中討論的風險和不確定性，“第1A節-風險因素”在我們截至2024年6月30日年度的10-k表格中以及不時在我們向證券交易委員會提交的其他報告中討論的風險因素。
其他 目前未預見的因素可能也會對我們的經營成果、現金流和財務狀況產生實質性和不利的影響。 我們無法保證未來的結果將會符合預期。前瞻性陳述僅在本報告的日期有效 我們明確聲明不打算因為新信息、未來事件或其他原因更新或更改任何陳述， 除非適用法律要求這樣做。
Overview
美國 電池科技公司（以下稱「公司」）是一家在鋰礦電池行業板塊內的成長公司，致力於提高美國國內電池材料的生產，例如鋰、鎳、鈷及錳，通過探索新的國內美國電池金屬的主要資源，開發及商業化提取這些電池金屬的新技術，以及商業化內部開發的鋰礦電池回收的綜合流程。通過這三管齊下的方法，公司正努力增加國內這些電池材料的生產，並確保用過的電池能以經濟、環保的閉環方式，將其元素電池金屬重新回到國內製造業供應鏈中。
為了實施這項業務策略，公司已建立起其第一座整合式鋰離子電池回收設施，從電動車、固定儲能和消費電子行業回收廢棄物和用盡壽命的電池材料。該設施的擴建和運營對公司至為重要，因此公司已大幅增加執行該計畫所需的資源，包括進一步內部聘請技術人員、擴建實驗室設施以及採購設備。公司已獲得美國先進電池聯盟的競標補助金，以支援200萬美元的項目，加快整合式鋰離子電池回收設施內部技術的發展和示範。公司還獲得了美國能源部的額外補助金，以支援根據《兩黨基礎設施法》進行的2000萬美元項目，驗證、測試和部署三種下一代顛覆性先進分離和處理回收技術。
此外，公司正在加速展示和商業化其內部研發的低成本和低環境影響的製造鋰水氫氧化物的處理過程，該過程使用內華達州沉積粘板岩資源。公司已獲得美國能源部的先進製造和材料技術辦公室通過關鍵材料創新計劃的競爭性補助金，支持一項450萬美元的項目，用於施工和運作每天多噸的一體化連續示範系統，以支持這些技術的擴大和商業化。公司還獲得了《跨黨派基礎設施法》下的額外補助金，用於支持一個11500萬美元的項目，該項目旨在設計、施工和啟動一個首創的商業規模精煉廠，每年生產30,000公噸的電池級鋰水氫氧化物。
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ABTC已完成其黏土岩至鋰羥基（LiOH）試驗廠的施工和投產，標誌著其自行開發的商業化過程對開拓未實現的國內原生鋰礦資源的重要里程碑。該試驗廠的施工和投產使ABTC能夠展示其技術，以存取其非傳統資源Tonopah鋰蓄電池專案（TFLP）中的鋰，並以一個整合且連續的系統生產大量的電池級鋰羥基，以供交付給客戶進行質量鑒定和評估。這個試驗展示廠的施工和操作得到了美國能源部（DOE）以競爭性方式授予的450萬美元補助金的支持。來自試驗廠的產品正在被送去進行分析，以確認和驗證資源。
ABTC 已提交其托諾帕平原鋰礦項目（TFLP）的修訂初步評估。TFLP是美國最大識別的鋰資源之一，儘管先前評估中的初步開採設計和經濟分析評估了全部資源，但這次更新的初步評估採用了一種商業化路徑，並採用更嚴謹的礦山計劃，考慮僅利用已測量和指示的礦產資源，並排除推測的礦產資源，以供應計劃中的商業規模鋰氫氧化物煉廠。這種商業化路徑允許進行分階段的工程開發，改善對資源中更高品質部分的訪問，並改善項目的經濟性。
於2024年3月28日，ABTC被選中獲得約$1950萬的稅收優惠，通過符合資格的高級能源項目優惠（48C）計劃。該稅收優惠由美國財政部國內稅務局授予，經美國能源部（DOE）進行高度競爭的技術和經濟審查程序，評估了申請人設施促進美國競爭全球關鍵物料回收、處理和精煉製造行業的可行性。這筆$1950萬的稅收優惠可以用於迄今為止的資本支出的退款，也可以用於ABTC在内華達州斯托里郡的翡翠灣工業中心（TRIC）的電池回收設施進行價值增值操作的設備和基礎設施。截至2024年9月30日，該公司已經為這一稅收優惠支出合格的開支，但將不會承認任何金額，直到合理保證符合相關標準。公司打算賣出這一優惠以實現其價值。
此外 在2024年3月28日，ABTC被選中獲得4050萬美元的附加稅收抵免，通過合格的愛文思控股能源項目抵免 計劃(48C)，以支持設計和施工一個新的、下一代的商業電池回收設施，該設施將位於 美國。與ABTC最初在48C計劃下獲得的1950萬美元稅收抵免，用於支持其在內華達州的電池回收設施的施工和建設 相同，這一附加獎勵是由美國財政部國稅局授予的，該獎勵是在美國能源部(DOE)進行的高度競爭的技術和經濟審查過程後授予的，該過程評估了申請設施的可行性，以推進美國在全球競爭中的關鍵材料回收、加工和提煉的製造行業建設。截止到2024年9月30日，公司尚未發生任何符合條件的支出，用於此稅收抵免。
財務 亮點：
| ● | 截至2024年9月30日的三個月內，收入為202,000美元，這是公司在2024財政年度第四季度首次確認的收入。 | |
| ● | 截至2024年9月30日的三個月內，現金銷貨成本為130萬美元，扣除非現金項目如折舊費用和基於股票的補償後。 | |
| ● | 2024年9月23日，公司獲得美國能源部的15000萬美元新競爭性補助金，用於建設第二座鋰離子電池回收設施。 | |
| ● | 政府補助金報銷為截至2024年9月30日的三個月內為140萬美元，而去年同期為50萬美元。在本期的140萬美元補助金中，30萬美元作為固定資產的抵銷，因為這是與設備購置相關的報銷，而80萬美元則記錄為在合併的簡明營運報表中對研究和開發成本的抵銷。 | |
| ● | 截至2024年9月30日，該公司手頭上的現金總額為580萬美元。 | |
| ● | 截至2024年9月30日的三個月內，經營活動使用的現金為560萬美元，與2023年9月30日結束的三個月內使用的480萬美元現金相比。 | |
| ● | 在2024年8月1日，該公司進行了一項定向增發，總金額為190萬美元。 |
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損益表元件
收入
截至2024年9月30日的三個月，我們的營業收入為20萬美元。這與我們從回收業務生產的再生產品的銷售有關，並延續了公司在2024財年第四季度初期產生的營業收入。這些材料被銷售給一位客戶，該客戶在我們的工廠接收，這些材料將留在我們的工廠，在第二階段的工廠完成後進行進一步處理。
銷貨成本
截至2024年9月30日的三個月內，營業成本為250萬美元。在扣除了120萬美元的折舊費用（110萬美元）和股份報酬（10萬美元）等非現金項目後，現金營業成本為130萬美元。高營業成本與回收設施固定資產的折舊（110萬美元，根據時間計算）以及生產過程的最終確定有關。我們預計這些成本將繼續以絕對基礎上升，但隨著生產和銷售規模的擴大和生產過程效率的提高，這些成本將作為收入的一個百分比而降低。在2024財年第四季，公司獲得了首次收入並開始記錄營業成本。截至2024年6月30日的三個月內，營業成本為330萬美元，其中130萬美元與折舊費用有關，20萬美元與股份報酬有關。2024年6月30日結束的三個月內的現金營業成本為180萬美元。
營運開支
在截至2024年9月30日的三個月內，公司產生了750萬美元的營業費用，而在截至2023年9月30日的三個月內，則為800萬美元。
總務及行政費用包括股票報酬、辦公室費用、法律費用、招聘費用、業務拓展、公共關係和一般設施費用。截至2024年9月30日的三個月，總務及行政費用為500萬美元，較去年同期增加190萬美元，主要是由於股票報酬、人員成本、審計和保險成本增加。
研究 和開發費用主要包括實驗室租金、耗材、薪資、股票薪酬及員工福利。 截至2024年9月30日及2023年9月30日的三個月內，研究和開發費用分別為200萬及360萬。 這一減少主要是由於將這些成本分配至營業成本和庫存，作為第2024財年第四季度開始運行的第一階段回收操作的一部分。 這些費用部分由聯邦資助的獎勵基金抵消，該基金是與各聯邦機構簽約的。該公司確認了與這些獎勵相關的研究和開發成本抵消，分別為80萬和50萬，針對截至2024年及2023年9月30日的三個月。
探索 成本主要包括鑽探、測試、權利費用、員工工資、股票補償、辦公室和倉庫成本、旅行，以及 與內華達州中部權利勘探相關的其他成本。至2024年9月30日止的三個月，探索費用總計40萬美元，而去年同期為140萬美元。與去年相比，減少的原因主要是因為去年相關於鑽探、測試和工程方面的成本較高，這些投入旨在進一步界定並潛在提升礦產權的地質分類。
其他 收入（花費）
截至2024年9月30日的三個月內，公司記錄了其他費用190萬美元，包括120萬美元的債務融資成本攤銷、70萬美元的債務清償損失、60萬美元的定向增發損失，以及20萬美元的責任分類工具的公允價值變化；反之則是70萬美元的衍生負債公允價值變化的其他收入，以及10萬美元的利息收入。
Net Loss
During the three months ended September 30, 2024, the Company incurred a net loss of $11.8 million or $0.17 loss per share compared to a net loss of $8.9 million, or $0.19 loss per share, during the three months ended September 30, 2023.
Liquidity and Capital Resources
At September 30, 2024, the Company had cash of $5.8 million and total assets of $73.8 million compared to cash of $7.0 million and total assets of $77.7 million at June 30, 2024. The decrease of cash is due to normal transactional activities related to plant production and paydown of debt obligation.
The Company had total current liabilities of $10.0 million at September 30, 2024, compared to $15.8 million at June 30, 2024. The decrease related to paydown of debt and timing of payments for accounts payable and accrued expenses.
As of September 30, 2024 the Company had working capital of $5.5 million compared to $2.6 million at June 30, 2024. The positive working capital at the end of both periods results from the classification of $8.4 million of held-for-sale assets as current at September 30, 2024 and June 30, 2024. Absent this classification, the working capital deficiency would have been $2.9 million and $5.8 million at September 30, 2024 and June 30, 2024, respectively.
The continuation of the Company as a going concern is dependent upon generating profit from its operations and its ability to obtain debt or equity financing. There is no assurance that the Company will be able to generate sufficient profits, obtain such financings, or obtain them on favorable terms, which could limit its operations. Any such financing activities are subject to market conditions. These uncertainties cause substantial doubt to exist as to the Company’s ability to continue as a going concern for 12 months from issuance of these financial statements. These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These adjustments could be material.
The going concern assessment excludes the Company’s at-the-market (“ATM”) offering, which could provide sources of liquidity.
Based on our current operating plan, unless we generate income from the operations of our facilities or raise additional capital (debt or equity), it is possible that we will be unable to maintain our financial covenants under our existing Note agreement. If such covenant violations are not waived by the Note holder, it would result in an event of default, causing an acceleration of the outstanding balances. If we do raise additional capital through public or private equity offerings, as opposed to debt or additional Note issuances, the ownership interest of our existing stockholders may be diluted.
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Cash Flows
For the three months ended September 30:
| 2024 | 2023 | |||||||
| Cash used in operating activities | $ | (5,552,350 | ) | $ | (4,758,984 | ) | ||
| Cash used in investing activities | (863,158 | ) | (7,272,098 | ) | ||||
| Cash provided by financing activities | 5,182,758 | 15,090,046 | ||||||
| Net increase (decrease) in cash during the period | (1,232,750 | ) | 3,058,964 | |||||
Cash from Operating Activities.
During the three months ended September 30, 2024, the Company used $5.5 million of cash for operating activities, compared to $4.8 million cash used during the three months ended September 30, 2023. In both periods, the cash used has supported an increased scale of operations including employee headcount and personnel costs, production, and, administrative costs related to insurance, legal and accounting.
Cash from Investing Activities
During the three months ended September 30, 2024, the Company used cash in investing activities of $0.9 million for acquisition of property and equipment for its recycling facilities. This is in comparison to cash used in investing activities of $7.3 million for the three months ended September 30, 2023. The decrease is due to the Company purchasing more equipment in the beginning stages of the plant build-out in prior year.
Cash from Financing Activities
During the three months ended September 30, 2024, the Company had cash provided by financing activities of $5.2 million, compared to $15.1 million provided during the three months ended September 30, 2023. The Company has relied on equity and debt financings to support the increased operating activities, and the ramp up of the recycling plant, development of the lithium ore pilot plant, and upgrades to the geological category of its Tonopah claims through additional studies and assessments.
The Company had proceeds from equity financings of $8.8 million in the three months ended September 30, 2024 compared to $2.4 million in the prior year period. The reduction in cash provided by financing activities in the three months ended September 30, 2024 compared to the prior year results from the paydown of notes payable of $3.6 million without any borrowings while, in the 2023 period, the Company had net borrowings of $12.7 million.
Working Capital
| September 30, 2024 | June 30, 2024 | |||||||
| Current assets | $ | 15,483,244 | $ | 18,406,048 | ||||
| Current liabilities | 9,963,859 | 15,798,298 | ||||||
| Working capital | 5,519,385 | 2,607,750 | ||||||
Future Financing
We will continue to rely on sales of our common shares, debt, or other financing to fund our business operations as needed beyond any revenue generated from internal operations and the government tax credits and grants that offset research & development expenses, and capital expenditures. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the securities or arrange for debt or other financing to fund planned operating activities, acquisitions and exploration activities.
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Critical Accounting Estimates
Our condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates and assumptions.
While some of our significant accounting policies are more fully described in Note 2, “Summary of Significant Accounting Policies” in the notes to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q, all our critical accounting policies and significant estimates are detailed in our Annual Report on Form 10-K for the year ended June 30, 2024.
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Off-Balance Sheet Arrangements
As of September 30, 2024, we had no off-balance sheet arrangements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Not Applicable.
Item 4. Controls and Procedures
Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act of 1934, as amended (the “Exchange Act”). Disclosure controls and procedures are controls and other procedures designed to ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable and not absolute assurance of achieving the desired control objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
The Company’s management, with the participation of the Chief Executive Officer and Chief Financial Officer of the Company, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act as of September 30, 2024, the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2024, the Company’s disclosure controls and procedures are not effective, based on the material weaknesses described below.
Material Weakness in Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Management, with the participation of the principal executive officer and principal financial officer, under the oversight of our Board of Directors, assessed the effectiveness of our internal control over financial reporting as of September 30, 2024 based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework (2013 Framework). Based on this assessment, management concluded that, as of September 30, 2024, our internal control over financial reporting was not effective, due to the material weaknesses in internal control over financial reporting, described below.
Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including the individuals serving as our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of annual or interim financial statements will not be prevented or detected on a timely basis.
The Company did not have a sufficient complement of personnel with appropriate technical expertise to perform an effective risk assessment. In addition, the Company did not maintain proper segregation of duties related to accounting processes. As a consequence, internal control deficiencies related to the design and operation of process-level controls were determined to be pervasive throughout the Company’s financial reporting processes. While these material weaknesses did result in immaterial misstatements of the Company’s consolidated financial statements, these material weaknesses create a reasonable possibility that a material misstatement of account balances or disclosures in the consolidated financial statements may not be prevented or detected in a timely manner. Therefore, we concluded that the deficiencies represent material weaknesses in the Company’s internal control over financial reporting and our internal control over financial reporting was not effective as of September 30, 2024.
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Remediation Plan
During the fiscal year ended June 30, 2024, remediation efforts included removing accounting personnel access to both create and post a journal entry, moving the systems administration tasks to personnel outside of the accounting department, and adding review procedures by qualified personnel over complex accounting matters by way of engaging third-party professionals with whom to consult regarding complex accounting applications and valuations. However, there is no guarantee that these measures will remediate the material weaknesses described above.
In addition to the above steps taken, in July 2024, we hired a new corporate controller with extensive experience in technical accounting, SEC reporting and internal control over financial reporting. In October 2024, we hired a senior accountant with public accounting and public company reporting experience, which will help to mitigate segregation of duties weakness. We plan to continue to utilize an outside CPA firm for technical expertise and we plan to perform a complete risk assessment to update our control procedures. These additional steps will help mitigate the technical expertise weakness, the segregation of duties weakness and identify any other areas of risk to be incorporated in our overall internal control plan. We expect to remediate these material weaknesses by the end of fiscal year 2025.
We are committed to ensuring that our internal control over financial reporting is designed and operating effectively. While we believe procedures are in place as of September 30, 2024 to address the material weaknesses, remediation steps are required to be in place and effective for an adequate period of time. We cannot provide assurance that such material weaknesses will be remediated, and we may discover additional material weaknesses that may require additional time and resources to remediate.
Changes in Internal Control over Financial Reporting
Except as noted above with respect to the completion of certain steps in the remediation plan, there was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter covered by this Interim Report on Form 10–Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
We may be involved in certain routine legal proceedings from time to time before various courts and governmental agencies. We cannot predict the final disposition of such proceedings. We regularly review legal matters and record provisions for claims considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on our operations or consolidated financial statements in the period in which they are resolved.
On September 24, 2024, the Company filed a complaint in the U.S. District Court for the District of Nevada, Case No. 3:24-cv-00434, asserting claims against Tysadco Partners, LLC (“Tysadco”) for amounts due and owing under March 16, 2024, March 21, 2024, and March 31, 2024, purchase agreements between Tysadco and the Company related to a Prospectus Supplement for the sale of Company stock. The Company promptly fulfilled its obligations under the Purchase Agreements by issuing the agreed upon shares of its common stock. However, to date Tysadco has only made partial payments to the Company under the purchase agreements, with the remaining $1,415,804.65 still unpaid. The Company intends to vigorously pursue its remedies against Tysadco for its nonpayment.
Item 1A. Risk Factors
Our business is subject to various risks, including those described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2024. There have been changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended June 30, 2024 under “Item 1A - Risk Factors” as noted below.
An investment in the Company’s securities is subject to a number of risks at any given time. Below is a description of the principal risk factors affecting the Company. The risk factors set out below are not exhaustive and unidentified risks may have potential to adversely affect the Company’s financial condition, operating results, business or future prospects. Investors should carefully consider these risk factors, many of which are beyond the Company’s control, together with other disclosures and market information before investing in the Company’s securities.
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Pre-Commercialization Company Risks
Because we have not yet achieved full commercialization, a company like ours is inherently subject to many risks. These risks and difficulties include (a) significant capital requirements and challenges with respect to obtaining financing until we can achieve full commercialization; (b) accumulated and continuing losses; (c) challenges in accurate financial planning; (d) uncertainties resulting from a relatively limited time period in which to develop and evaluate business strategies as compared to companies with longer operating histories; (e) cost and complexity of compliance with significant regulations in connection with our operations and products; (f) reliance on third parties for consulting, laboratory work, regulatory, commercialization or other activities; (g) reliance on third parties to carry out contractual arrangements; and (h) meeting the challenges of the other risk factors described herein. We are subject to all risks incident to an emerging company.
Working Capital Risks
We will need additional financing to execute our business plan and fund operations, which additional financing may not be available on reasonable terms or at all. We will need to raise capital over the next 12 months to satisfy such requirements, the receipt of which cannot be assured. We will also require capital in order to fully develop our recycling, extraction and refining operations. We intend to seek additional funds through various financing sources, including the private sale of our equity and debt securities, potential joint ventures with capital partners, grants, government loans, and project financing of our recycling facilities. However, there can be no guarantees that such funds will be available on commercially reasonable terms, if at all. If such financing is not available on satisfactory terms, we may be unable to further pursue our business plan and we may be unable to continue operations, in which case you may lose your entire investment.
Risks of Competitive Industry
Inherent to competitive industries, there are risks the Company may be unable to maintain or acquire financing, seek available opportunities, retain existing personnel or hire new personnel, or maintain or acquire technical or other resources, supplies or equipment, all on terms it considers acceptable to complete the development of its projects. Battery recycling is a highly competitive and speculative business. Competing recycling processes and facilities are primarily located in the United States, Europe, and China and employ various techniques for extraction of the contained battery metals. In seeking available opportunities, we will compete with a number of other companies, including established, multi-national companies that have more experience and resources than we do. There also may be other small companies that are developing similar processes and are farther along than the Company. Because we may not have the financial and managerial resources to compete with other companies, we may not be successful in our efforts to develop technology which is commercially viable.
Business Model Risks
We intend to engage in the business of lithium recycling through proprietary recycling technology. While the production of lithium-ion recycling is an established business, to date most lithium-ion recycling has been produced by way of performing bulk high temperature calcinations or bulk acid dissolutions. We have developed a highly strategic recycling processing train that does not employ any high temperature operations or any bulk chemical treatments of the full battery. We have tested our recycling process on a small scale and to a limited degree; however, there can be no assurance that we will be able to produce battery metals in commercial quantities at a cost of production that will provide us with an adequate profit margin. The uniqueness of our process presents potential risks associated with the development of a business model that is untried and unproven as we undertake the build-out and operation of a large-scale facility capable of recycling commercial quantities. There can be no assurance that as we commence large scale manufacturing or operations that we will not incur unexpected costs or hurdles that might restrict the desired scale of our intended operations or negatively impact our projected gross profit margin.
Share Price Risks
The market price of the stock of a publicly traded company is affected by a number of variables, many of which are outside the Company’s control. Such factors include: the general condition of markets for resource stocks, and particularly for stocks of lithium exploration and development companies and other battery-metals stocks; the general strength of the economy; the availability and attractiveness of alternative investments; analysts’ recommendations and their estimates of financial performance; investor perception and reactions to disclosures made by the Company, and by the Company’s competitors; future securities sales; reputational risks of the Company; and the breadth of the public markets for the stock. Investors could suffer significant losses if the Company’s common stock is depressed or illiquid when an investor seeks liquidity.
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Market Risks
The Company is exposed to commodity price movements for the inventory it holds and the products it plans to produce. Commodity price risk management activities are currently limited to monitoring market prices. The Company’s future revenues, if any, are sensitive to the market prices of the metals contained in its planned products.
The Company’s projects are highly dependent on the demand for and uses of lithium-based end products. This includes lithium-ion batteries for electric vehicles and other large format batteries that currently have limited market share and whose projected adoption rates are not assured. To the extent that such markets do not develop in the manner contemplated by the Company, then the long-term growth in the market for lithium products will be adversely affected. This would inhibit the potential for development of the projects, their potential commercial viability and would otherwise have a negative effect on the business and financial condition of the Company. In addition, as a commodity, lithium market demand is subject to the substitution effect in which end-users adopt an alternate commodity as a response to supply constraints or increases in market pricing. These circumstances could limit the quantity of customers and prices paid for our products. To the extent that these factors arise in the market for lithium, it could have a negative impact on overall prospects for growth of the lithium market and pricing, which in turn could have a negative effect on the Company and its projects.
Product Price and Quality Risks
The ability to reach and sustain profitable operations on the recycling and extraction projects, if and to the extent the projects are developed and enter full commercial operation, will be significantly affected by changes in the market price of lithium-based end products. The market price of these products fluctuates widely and is affected by numerous factors beyond the Company’s control, including world supply and demand, pricing characteristics for alternate energy sources such as oil and gas, government policy and laws, interest rates, the rate of inflation and the stability of currency exchange rates, and other geopolitical and global economic factors. Such external economic factors are influenced by changes in international investment patterns, various political developments and macro-economic circumstances. Furthermore, the price of lithium products is significantly affected by their purity and performance, and by the specifications of end-user battery manufacturers. If the products produced from the Company’s projects do not meet battery-grade quality and/or do not meet customer specifications, pricing will be reduced from that expected for battery-grade product. In turn, the company may lose or fail to attract customers. The Company may not be able to effectively mitigate pricing risks for its products. Depressed pricing for the Company’s products will affect the level of revenues expected to be generated by the Company, which in turn could affect the value of the Company, its share price and the potential value of its properties.
Project and Process Risks
The processes contemplated by the Company for refining of extracted materials and refining of recycled materials have not previously been demonstrated at commercial scale. There are risks that efficiencies of recovery and throughput capacity will not be met, and risks that scaled production will not be cost effective or operate as expected. In addition, there is potential for unforeseen costs, additional changes to the process chemistry and engineering, and other unforeseen circumstances that could result in delays to the projects or increased capital or operating costs.
The Company is in the process of exploring and assessing a mineral resource in Tonopah, Nevada, with the intent of progressing the project to mining and processing activities. The Company has no prior history of completing the development of a mining project or conducting mining operations. If found to be economically feasible, the future development of mineral resources will require the construction and operation of a mine, processing plant and related infrastructure. While certain members of management have mining development and operational experience, the Company does not have any such experience as a collective organization. As a result of these factors, the Company’s future success is more uncertain than if it had a proven operating history.
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If the Tonopah project advances, the Company is and will continue to be subject to all risks inherent with establishing new mining operations including: the time and costs of construction of mining and processing facilities and related infrastructure; the availability and costs of skilled labor and mining equipment and supplies; the need to obtain necessary environmental and other governmental approvals, licenses and permits, and the timing of the receipt of those approvals, licenses and permits; the availability of funds to finance construction and development activities; potential opposition from non-governmental organizations, indigenous peoples, environmental groups or local groups which may delay or prevent development activities; and potential increases in construction and operating costs due to various factors, including changes in the costs of fuel, power, labor, contractors, materials, supplies and equipment.
It is common in new mining operations to experience unexpected costs, problems and delays during construction, commissioning and mine start-up, as well as delays in the early stages of mineral production.
The Company is concurrently overseeing the advancement of our major lithium projects. Work to advance these projects requires the dedication of considerable time and resources by the Company and its management team. The advancement of the projects concurrently brings with it the associated risk of strains on managerial, human and other resources. The Company’s ability to successfully manage each of these processes will depend on a number of factors, including its ability to manage competing demands on time and other resources, financial or otherwise, and successfully retain personnel and recruit new personnel to support its growth and the advancement of its projects.
Risks Relating to the U.S. DOE Grant Programs
The DOE’s invitation to enter into confirmatory due diligence and term sheet negotiations is not an assurance that DOE will offer a term sheet to the applicant, or that the terms and conditions of any term sheet will be consistent with the terms proposed by the applicant. The outcome of the Company’s application to the DOE for funding is wholly dependent on the results of DOE advanced due diligence and DOE’s determination whether to proceed, and there can be no assurances as to the outcome of such due diligence review, whether the DOE will determine to proceed and as to the terms and conditions of any term sheet that may be offered, if any.
Permitting Risks
Our operations in the United States are subject to the federal, state and local environmental, health and safety laws applicable to the reclamation of lithium-ion batteries and exploration for, and the development and operation of, mineral properties. Depending on how any particular operation is structured, our operations and related facilities will have to obtain environmental permits or approvals to operate, including those associated with, among other things, air emissions, water discharges, waste management and storage, and exploration and development of mineral properties on federal lands and related processing facilities. We may face opposition from local residents or public interest groups to the installation and operation of our facilities. Failure to secure (or significant delays in securing) the necessary approvals could prevent us from pursuing some of our planned operations and adversely affect our business, financial results and growth prospects. Additionally, there can be no certainty that current permits will be maintained, permitting changes will be approved, estimated permitting timelines will be met, estimated costs will be accurate, or additional or approvals required to carry out recycling, extraction and refining will be obtained. There is the risk that existing permits will be subject to challenges of regulatory administrative processes and similar litigation and appeal processes. Litigation and regulatory review processes can result in lengthy delays, with uncertain outcomes. Such issues could impact the expected timelines of the Company’s projects and consequently have a material adverse effect on the Company’s prospects and business.
Geopolitical Risks
In recent years there has been a substantial increase in political tensions, which is particularly acute in respect to lithium. Lithium has been identified as a ‘critical mineral’ in multiple jurisdictions and is the subject of increasingly active industrial policy. The Company does not believe this will result in a substantive adverse change to its business or operations. However, the Company does expect that over time it may limit our ability to undertake business opportunities with actors from non-Western countries.
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Cost Estimate Risks
Capital costs, operating costs, raw materials costs, production and other estimates may differ significantly from those anticipated by the Company’s current estimates, and there can be no assurance that the Company’s actual costs will not be higher than currently anticipated. The Company’s actual costs and production may vary from estimates for a variety of reasons, including, but not limited to: lack of or availability of raw materials, resources or necessary supplies or equipment; inflationary pressures flowing from global supply chain shortages and increased transportation costs, which in turn are causing increased costs for supplies and equipment; increasing labor and personnel costs; unexpected construction or operating problems; higher than expected cost of commodities or feedstock; lower than expected realized lithium prices; revisions to construction plans; risks and hazards associated with exploration or mineral production; natural phenomena; floods; unexpected labor shortages or strikes; and general inflationary pressures. Many of these factors are beyond the Company’s control and could have a material effect on the Company’s operating cash flow, including the Company’s ability to service its indebtedness.
Operating Risks
The Company’s operations are subject to all the hazards and risks normally incidental to the exploration for, and the development and operation of, mineral properties. The Company strives to implement comprehensive health and safety measures designed to comply with government regulations and protect the health and safety of the Company’s workforce in all areas of its business. The Company also strives to comply with environmental regulations in its operations. Nonetheless, risks associated with the Company’s planned operations include fires, power outages, shutdowns due to equipment breakdown or failure, aging of equipment or facilities, unexpected maintenance and replacement expenditures, human error, labor disruptions or disputes, inclement weather, higher than forecast precipitation, flooding, shortages of water, explosions, releases of hazardous materials, landslides, earthquakes, industrial accidents and explosions, protests and other security issues, and the inability to obtain adequate machinery, equipment or labor due to shortages, strikes or public health issues such as pandemics.
Risk of Hazardous Substances
We may be held responsible for the costs of remediating contamination at the site of current or former activities or at third party sites or be held liable to third parties for exposure to hazardous substances should those be identified in the future. Under the U.S. Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”) and its state law equivalents, current or former owners of properties may be held jointly and severally liable for the costs of site cleanup or required to undertake, remedial actions in response to unpermitted releases of hazardous substances at such property, in addition to, among other potential consequences, liability to governmental entities for the cost of damages to natural resources, which may be significant.
Costs and Requirements of Being a Public Company
As a public reporting company, we are subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended, and other federal securities laws, rules and regulations. Complying with these laws and regulations requires more time and attention of our Board of Directors and management and requires additional employees compared to a privately-held company. In addition, the costs of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC, furnishing audited reports to stockholders, maintaining more comprehensive compliance functions, policies and procedures, and corporate governance, are greater than that of a privately-held company.
To the extent any public or private offering of our securities is not conducted in accordance with applicable federal or state securities laws, purchasers of our securities could be entitled to rescission rights.
We have issued a significant number of securities in public and private offerings and as payment for services or in connection with transactions. It is possible, by reason of procedural or similar failures, or failures to provide disclosure or notices of sales, that a violation of federal or state securities laws may have occurred. If a holder of our securities were successful in claiming that securities were issued to such holder without such issuance being in compliance with applicable securities laws, we believe that the remedy to such holder would be a rescission of the sale, pursuant to which the holder could be entitled to recover the amount paid for the security, plus interest (usually at a statutory rate prescribed by state law).
Risk of Fraud, Misconduct, or Non-Compliance with Anti-Corruption Laws
We may be exposed to fraud, non-compliance with anti-corruption laws, or other misconduct committed by our employees, potential joint venture partners, representatives, agents, vendors, customers or other third parties undertaking actions on our behalf that could subject us to litigation, financial losses and fines or penalties imposed by governmental authorities and affect our reputation.
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Such misconduct could include, but is not limited to, misappropriating funds, engaging in misrepresentation or fraudulent, deceptive or otherwise improper activities, including activities in exchange for personal benefit or gain or activities that otherwise do not comply with applicable laws or our internal policies and procedures. The risk of fraud or other misconduct could increase as we expand our business.
Risk of Failure to Meet Development Timelines and Capital Estimates
Our required capital expenditures can be complex and challenging to predict, may experience delays or other difficulties, and the costs may exceed our estimates.
Our capital expenditures primarily consist of substantial investments in new or used equipment, facilities and properties, as well as expenditures to maintain and improve existing equipment, facilities and properties. Execution of these capital expenditures can be complex, and commencement of production requires start-up, commission and certification of product quality by our customers, which may impact the expected output and timing of sales of product from such facilities. Construction of large operations is subject to numerous risks and uncertainties, including, among others, the ability to complete a project on a timely basis and in accordance with the estimated budget for such project and our ability to estimate future demand for our products. In addition, our returns on these capital expenditures may not meet our expectations. Future capital expenditures may be significantly higher, depending on the investment requirements of each of our business lines, and may also vary substantially if we are required to undertake actions to compete with new technologies in our industry. We may not have the capital necessary to undertake these capital investments. If we are unable to do so, we may not be able to effectively compete in some of our markets.
Risk of Failure to Comply with Covenants
The Company has contractual arrangements that contain affirmative and negative covenants that must be adhered to. It is possible that the Company could fail to meet the requirements of one or more covenants, resulting in penalties or acceleration of amounts due. No assurance can be given that a breach will not occur. This could result in a default under our credit agreements that would permit the applicable lenders to declare all amounts outstanding thereunder to be due and payable, together with accrued and unpaid interest. If we are unable to repay our debt, creditors would have the right to proceed against the collateral securing the debt. This in turn could have a material adverse effect on the Company’s business and operations.
Going Concern Risk
The continuation of the Company as a going concern is dependent upon generating profit from its operations and its ability to obtain debt or equity financing to meet expected cash requirements. There is no assurance that the Company will be able to generate sufficient profits, obtain such financings, or obtain them on favorable terms, which could limit its operations. Any such financing activities are subject to market conditions.
These uncertainties cause substantial doubt about the Company’s ability to continue as a going concern for 12 months from issuance of these financial statements. In their report on our financial statements included in this Form 10-K, our independent auditors have expressed substantial doubt about our ability to continue as a going concern.
Risks from Changing Regulations and Laws
Changes to government laws and regulations may affect the development of the Company’s projects. Such changes could include laws relating to grant funds availability, taxation, royalties, restrictions on production, environmental, biodiversity and ecological compliance, mine development and operations, mine safety, permitting and numerous other aspects of the business.
Environmental Risks and Regulations
The Company must comply with stringent environmental regulations. These are evolving in a manner that is expected to require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. Applicable environmental laws and regulations may require enhanced public disclosure and consultation. It is possible that a legal protest could be triggered through one of these requirements or processes that could delay development activities. No assurance can be given that new environmental laws and regulations will not be enacted or that existing environmental laws and regulations will not be applied in a manner that could limit or curtail the Company’s development programs. Such changes in environmental laws and regulations and associated regulatory requirements could delay and/or increase project costs or increase the risk of environmental liability associated with project operations. This in turn could have a material adverse effect on the Company’s business and operations.
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Insurance Risks
While the Company maintains insurance to protect against certain risks associated with its business, insurance may not be available to insure against all risks, or the costs of such insurance may be uneconomic. The Company may also elect not to obtain insurance for other reasons. Insurance policies maintained by the Company may not be adequate to cover the full costs of actual liabilities incurred by the Company or may not be continued by insurers for reasons not solely within the Company’s control. The Company maintains liability insurance in accordance with industry standards. However, losses from uninsured and underinsured liabilities have the potential to materially affect the Company’s financial position and prospects.
Health and Safety Risks
The Company carries a risk of liability related to workers’ health and safety. Compliance with health and safety laws, and any changes to such laws, and the requirements of applicable permits and other regulatory requirements remains material to the Company’s business. The Company may become subject to government orders, investigations, inquiries or other proceedings (including civil claims) relating to health and safety matters. The occurrence of any of these events or any changes, additions to or more rigorous enforcement of health and safety laws, permits or other approvals could have a significant impact on operations and result in additional costs or penalties. In turn, these could have a material adverse effect on the Company’s reputation, operations and future prospects.
Risk of Catastrophic Events, Terrorism and War
The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and decrease demand for our products. Certain assets may be at greater risk of future terrorist attacks than other possible targets in the United States and around the world. Extraordinary events cannot be predicted, and their occurrence may negatively affect the economy in general, and the markets for our products in particular. The resulting damage from a direct attack on our assets, or assets used by us, could include loss of life and property damage. In addition, available insurance coverage may not be sufficient to cover all the damage incurred or, if available, may be prohibitively expensive.
Risk of Accounting Estimates and Impairment Charges
We make certain accounting estimates and projections in connection with our impairment analysis for long-lived assets in accordance with applicable accounting guidance. An impairment charge may be required if the impairment analysis indicates that the carrying value of an asset exceeds the sum of the expected undiscounted cash flows of the asset. The projection of future cash flows used in this analysis requires the use of judgment and a number of estimates and projections of future operating results. If actual results differ from Company estimates, additional charges for asset impairments may be required in the future. If impairment charges are significant, our financial results could be negatively affected.
Mineral Resource and Mineral Reserve Estimation Risks
Mineral Resources and Mineral Reserves figures are estimates only. Estimated tonnages and grades may not be achieved if the projects are brought into production; differences in grades and tonnage could be material; and, estimated levels of recovery may not be realized. The estimation of Mineral Resources and Mineral Reserves carries with it many inherent uncertainties, of which many are outside the control of the Company. Estimation is by its very nature a subjective process, which is based on the quality and quantity of available data, engineering assumptions, geological interpretation and judgements used in the engineering and estimation processes. Estimates may also need to be revised based on changes to underlying assumptions, such as commodity prices, drilling results, metallurgical testing, production, and changes to mine plans of operation. Any material decreases in estimates of Mineral Resources or Mineral Reserves, or an inability to extract Mineral Reserves could have a material adverse effect on the Company, its business, results of operations and financial position.
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Any estimates of Inferred Mineral Resources are also subject to a high degree of uncertainty and may require a significant amount of exploration work to determine if they can be upgraded to a higher confidence category. Risks associated with upgrading the Tonopah project to a higher confidence category include the accuracy of fault modeling and offset of lithium-hosting lithologies on western-side of mineral resource, the lack of project-specific lithologic density data, the accuracy of processing cost used in the pit optimization to define the resource which can potentially affect resource cut-off grades, and the large fluctuations in commodity prices which can potentially affect resource cut-off grades.
Exploration Stage Company Risks
We cannot assure you about the existence of economically extractable mineralization at this time, nor about the quantity or grade of any mineralization we may have found. Because the probability of an individual prospect ever having reserves is uncertain, our properties may not contain any reserves and any funds spent on evaluation and exploration may be lost. Even if we confirm reserves on our properties, any quantity or grade of reserves we indicate must be considered as estimates only until such reserves are mined. We do not know with certainty that economically recoverable minerals exist on our properties. In addition, the quantity of any reserves may vary depending on commodity prices. Any material change in the quantity or grade of reserves may affect the economic viability of our properties. Further, our lack of established reserves means that we are uncertain about our ability to generate revenue from our operations.
Even if we do eventually discover a mineral reserve on one or more of our properties, there can be no assurance that they can be developed into producing mines and that we can extract those minerals. Both mineral exploration and development involve a high degree of risk, and few mineral properties that are explored are ultimately developed into producing mines.
Water Management Risks
Water management regulations are in place in Nevada where the Company’s projects are located. As such, the Company must obtain sufficient water rights and transfer those rights such that they may be used for planned recycling and extraction projects. The Company’s flowsheets are designed and/or being designed to lower the use of water to the extent possible by incorporating recycling technologies. The availability of water and pricing of water rights are risks that may be heightened by the potential effects of climate change and could have a material adverse effect on the Company’s business.
Climate Change Risks
The introduction of climate change legislation is an increasing focus of various levels of government worldwide. The Company is committed to developing its business with a view to contributing to the low carbon economy. This includes incorporating sustainable energy sources and minimizing the use of non-renewable sources of energy to the extent that renewable sources are available with sufficient capacity, at cost effective pricing and that are complementary to the facilities and site design. However, the use of such low carbon technologies may be more costly in certain instances than non-renewable options in the near-term, or may result in higher design costs, long-term maintenance costs or replacement costs. Additionally, if the trend toward increasing regulations continues, the Company may face increasing operating costs at its projects to comply with these changing regulations. Until then, the Company views the risk of occurrence of such litigation as being low.
Risk of Future Losses and Lack of Profitability
The Company anticipates it will continue to have negative cash flow from operating activities in future periods until profitable commercial production is achieved. Although the Company has cash on hand and access to additional cash, the Company’s ability to continue as a going concern will be dependent upon its ability to generate profits from its proposed operations, or to raise capital through equity or debt financing to continue to meet its obligations and repay its liabilities arising from normal business operations when they come due.
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Intellectual Property Risks
The Company relies on the ability to protect its intellectual property rights and depends on patent, trademark and trade secret legislation to protect its proprietary know-how. There is no assurance that the Company has adequately protected or will be able to adequately protect its valuable intellectual property rights or will at all times have access to all intellectual property rights that are required to conduct its business or pursue its strategies, or that the Company will be able to adequately protect itself against any intellectual property infringement claims. There is also a risk that the Company’s competitors could independently develop similar technology, processes or know-how; that the Company’s trade secrets could be revealed to third parties; that any current or future patents, pending or granted, will be broad enough to protect the Company’s intellectual property rights; or, that foreign intellectual property laws will adequately protect such rights. The inability to protect the Company’s intellectual property could have a material adverse effect on the Company’s business, results of operations and financial condition. Additionally, the applied science industry is characterized by frequent allegations of intellectual property infringement. Though we do not expect to be subject to any of these allegations, any allegation of infringement could be time consuming and expensive to defend or resolve, result in substantial diversion of management resources, cause suspension of operations or force us to enter into royalty, license, or other agreement, rather than dispute the merits of such allegation. If patent holders or other holders of intellectual property initiate legal proceedings, we may be forced into protracted and costly litigation. We may not be successful in defending such litigation and may not be able to procure any required royalty or license agreements on acceptable terms or at all.
Risk of Defects in Title
We have investigated our rights to the assets we have purchased and developed, and, to the best of our knowledge, those rights are in good standing. However, no assurance can be given that such rights will not be revoked, or significantly altered, to our detriment. There can also be no assurance that our rights will not be challenged or impugned by third parties, including by governments and non-governmental organizations.
Risks Related to Research, and Development, and Changing Technology
Our research and development efforts may not succeed in addressing changes in our customers’ needs, and our competitors may develop more effective or successful products. The development and adoption of new battery technologies could rely on inputs other than lithium compounds which could significantly impact our prospects and future revenues.
Current and next generation high energy density batteries for use in electric vehicles rely on lithium compounds as a critical input. The pace of advances in current battery technologies, the development and adoption of new battery technologies that rely on inputs other than lithium compounds, or a delay in the development and adoption of next generation high nickel battery technologies that utilize lithium hydroxide could significantly impact our prospects and future revenues. Many materials and technologies are being researched and developed with the goal of making batteries lighter, more efficient, faster charging and less expensive. Some of these could be less reliant on lithium hydroxide or other lithium compounds, especially if the demand for batteries for use in electric vehicles outstrips the available supply of lithium hydroxide or other lithium compounds. We cannot predict which new technologies may ultimately prove to be commercially viable and their share in the overall mix over any time horizon. Commercialized battery technologies that use less lithium compounds could materially and adversely impact our prospects and future revenues.
Joint Venture, Acquisition and Strategic Alliance Risks
Our business strategy includes, in part, entering into potential joint ventures, acquisitions, and strategic alliances with parties involved in the manufacture and recycling of lithium-ion products. Failure to successfully identify or integrate such potential joint ventures, acquisitions or strategic alliances into our operations could adversely affect our business. Joint ventures, acquisitions and strategic alliances may involve significant other risks and uncertainties, including distraction of management’s attention away from normal business operations, insufficient revenue generation to offset liabilities assumed and expenses associated with the transaction, and unidentified issues not discovered in our due diligence process, such as product quality, technology issues and legal contingencies. In addition, we may be unable to effectively integrate any such initiatives into our operations. Our operating results could be adversely affected by any problems arising during or from such activity.
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Risks of Relying on Consultants
The Company has relied on, and may continue to rely on, consultants and others for mineral exploration and exploitation expertise. The Company believes that those consultants are competent and that they have carried out their work in accordance with internationally recognized industry standards. However, if the work conducted by those consultants is ultimately found to be incorrect or inadequate in any material respect, the Company may experience delays or increased costs in developing its properties.
Risk of No Dividends
The Company has not paid dividends on its Common Shares since incorporation, and currently has no ability to generate earnings as it is pre-revenue. The Company anticipates that it will retain its earnings and other cash resources for future operations and the ongoing development of its business. As such, the Company does not intend to declare or pay any cash dividends in the foreseeable future. Payment of any future dividends is solely at the discretion of the Board, which will take into account many factors including the Company’s operating results, financial condition and anticipated cash needs.
Information Technology and Cybersecurity Risks
Threats to information technology systems associated with cybersecurity risks and cyber incidents or attacks continue to grow and evolve in terms of severity and sophistication, particularly with the increase in remote work that began during the COVID-19 pandemic. A cybersecurity attack has the potential to compromise the business, financial and other systems of the Company, and could go unnoticed for some time. Risks associated with cybersecurity threats include, among other things, loss of intellectual property, disruption of business operations and safety procedures, loss or damage to worksite data delivery systems, privacy and confidentiality breaches, and increased costs and time to prevent, respond to or mitigate cybersecurity incidents. The Company has implemented a cybersecurity policy and provided training to its personnel as mitigation measures. System and network maintenance, upgrades and similar best practices are also followed. However, despite these measures, the occurrence of a significant cybersecurity incident could have a material adverse effect on the Company’s business and result in a prolonged disruption to it.
Talent Risk
The Company highly values the contributions of its key personnel. The success of the Company continues to depend largely upon the performance of key officers, employees and consultants who have advanced the Company to its current stage of development and contributed to its potential for future growth. The market for qualified talent has become increasingly competitive, with shortages of qualified talent relative to the number of available opportunities being experienced in all markets where the Company conducts its operations. The ability to remain competitive by offering higher compensation packages and programs for growth and development of personnel, with a view to retaining existing talent and attracting new talent, has become increasingly important to the Company and its operations in the current climate. Any prolonged inability to retain key individuals, or to attract and retain new talent as the Company grows, could have a material adverse effect upon the Company’s growth potential and prospects.
Additionally, the Company has not purchased any “key-man” insurance for any of its directors, officers or key employees and currently has no plans to do so.
Implementation of Business Plan Risks
Our ability to successfully implement our business plan requires an effective planning and management process. If funding is available, we may elect to increase the scope of our operations and acquire complementary businesses. Implementing our business plan will require significant additional funding and resources. If we grow our operations, we will need to hire additional employees and make significant capital investments. If we grow our operations, it will place a significant strain on our existing management and resources. Additionally, we will need to improve our financial and managerial controls and reporting systems and procedures, and we will need to expand, train and manage our workforce. Any failure to manage any of the foregoing areas efficiently and effectively would cause our business to suffer.
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Risk of Failure of Internal Control Over Financial Reporting
Our reporting obligations as a public company place a significant strain on our management, operational and financial resources and systems. Because we failed to maintain an effective system of internal control over financial reporting, we could experience delays or inaccuracies in our reporting of financial information, or non-compliance with the SEC, reporting and other regulatory requirements. This could subject us to regulatory scrutiny and result in a loss of public confidence in our management, which could, among other things, cause our stock price to drop.
Risks of Legal Proceedings
The Company may be subject to a variety of regulatory requirements, and resulting investigations, claims, lawsuits and other proceedings in the ordinary course of its business, as a result of its status as a publicly traded company and because of its mining exploration and development business. Litigation related to environmental and climate change-related matters, ESG disclosure, and securities class actions arising from share price volatility is also on the rise. The occurrence and outcome of any legal proceedings cannot be predicted with any reasonable degree of certainty due to the inherently uncertain nature of litigation, including the effects of discovery of new evidence or advancement of new legal theories, the difficulty of predicting decisions of judges and juries and the possibility that decisions may be reversed on appeal. Defense and settlement costs of legal claims can be substantial, even with respect to claims that are determined to have little or no merit.
Litigation may be costly and time-consuming and can divert the attention of management and key personnel away from day-to-day business operations. The Company and its projects are, from time to time, subject to legal proceedings or the threat of legal proceedings. If the Company were to be unsuccessful in defending any such claims against it, or unable to settle claims on a satisfactory basis, the Company may be faced with significant monetary damages, injunctive relief or other negative impacts that could have a material adverse effect on the Company’s business and financial condition. To the extent the Company is involved in any active litigation, the outcome of such matters may not be determinable, and it may not be possible to accurately predict the outcome or quantum of any such proceedings at a given time.
Changes to Tax Laws and Other Tax Risks
Changes to U.S. tax laws could adversely affect the Company or holders of the Common Shares. In recent years, many changes to U.S. federal income tax laws have been proposed and made, and additional changes to U.S. federal income tax laws are likely to continue to occur in the future.
We are subject to review and audit by U.S. federal, state, local tax authorities. Tax authorities may disagree with or challenge tax positions we take, which if successful could harm our business. We may be subject to additional tax liabilities due to changes in non-income based taxes resulting from changes in federal, state or local tax laws, changes in taxing jurisdictions’ administrative interpretations, decisions, policies, and positions, results of tax examinations, settlements, or judicial decisions, changes in accounting principles, changes to our business operations, including acquisitions, as well as the evaluation of new information that results in a change to a tax position taken in a prior period. In the future, the company may also be subject to foreign jurisdictions where tax law changes may pose a similar risk.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
None.
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Item 6. Exhibits
The following exhibits are either provided with this Annual Report or are incorporated herein by reference:
*Furnished herewith.
** Certain Confidential information contained in this exhibit has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. Additionally, certain personally identifiable information has been omitted from this exhibit pursuant to Item 601(a)(6) under Regulation S-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
AMERICAN BATTERY TECHNOLOGY COMPANY
(Registrant)
| Date: November 14, 2024 | By: | /s/ Ryan Melsert |
| Ryan Melsert | ||
| Chief Executive Officer (Principal Executive Officer) | ||
| Date: November 14, 2024 | By: | /s/ Jesse Deutsch |
| Jesse Deutsch | ||
| Chief Financial Officer (Principal Accounting Officer) |
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