XML 18 R8.htm IDEA: XBRL DOCUMENT v3.21.2
Note 1 - Organization
9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Nature of Operations [Text Block]

1. Organization

 

Aqua Metals, Inc. (the “Company”) was incorporated in Delaware and commenced operations on June 20, 2014 (inception). On January 27, 2015, the Company formed two wholly-owned subsidiaries, Aqua Metals Reno, Inc. (“AMR”) and Aqua Metals Operations, Inc. (collectively, the “Subsidiaries”), both incorporated in Delaware. The Company is engaged in the business of equipment supply, technology licensing and related services for recycling metals through a novel, proprietary and patented process the Company developed and named AquaRefining. The process was originally designed for Lead recycling but can also be applied to other metals such as those found in lithium-ion batteries. Unlike smelting, AquaRefining is a room temperature, water-based process that emits less pollution than smelting, the traditional method of lead recycling and the process used by some lithium battery recyclers. The Company built its recycling facility in Nevada’s Tahoe Reno Industrial Center (“TRIC”) in McCarran, Nevada and intended to pursue the development of additional lead acid battery recycling facilities based on the Company’s AquaRefining technology, likely through licensing or joint development arrangements.

 

The Company commenced the shipment of products for sale, consisting of lead compounds and plastics in April 2017, and through March 31, 2018 substantially all revenue was derived from the sale of lead compounds and plastics. In April 2018, the Company commenced the limited production of lead bullion, including AquaRefined lead. In July 2018, the Company commenced the sale of pure AquaRefined lead in the form of two tonne blocks and in October 2018, the Company commenced the sale of AquaRefined lead in the form of battery manufacturing ready ingots. In November 2018, the Company received official vendor certification from Clarios for its AquaRefined lead and, in December 2018, the Company commenced shipments directly to Clarios owned and partner battery manufacturing facilities. In 2019, the Company operated its demonstration AquaRefinery at commercial quantity production levels and produced over 35,000 AquaRefined ingots by operating the AquaRefinery 24 hours a day and seven days a week for sustained periods of time. The AquaRefining Aqualyzers produced at or above the target 100 Kg/Hr of production throughput per module of six Aqualyzers or ~16-17 Kg/Hr per Aqualyzer and ran sustained endurance runs for over one month several times.

 

In  November, 2019, a fire occurred in the AquaRefining area of the facility. The fire was related to contractor expansion activities. Following the fire, the Company adopted a capital light strategy designed to optimize shareholder value by focusing on equipment supply and licensing opportunities, which have always been a core part of the Company’s business plans. During 2020 and 2021, the Company completed research and development activities on its AquaRefining equipment resulting in lead production that is over 300% greater than the original Aqualyzer deployed at the AquaRefinery during commercial production in 2018 and 2019. In early 2021, the Company made an investment in LINICO Corporation as part of its strategy to develop lithium-ion battery recycling technology. On July 29, 2021, the Company signed a definitive agreement with ACME Metal Enterprise Co., Ltd. (ACME) to deploy AquaRefining equipment at its facility in Keelung, Taiwan. The Company believes the path of licensing its proprietary technology is the optimal strategy to maximize shareholder value.

 

In September 2021, the Company announced the establishment of its Innovation Center, in McCarran, Nevada, focused on applying AquaRefining technology to lithium-ion battery recycling research and development. Aqua Metals is now applying its commercialized clean, water-based recycling technology principles to develop the cleanest and most cost-efficient recycling solution to recover and recycle metals contained in lithium-ion batteries. The AquaRefining process is intended to recover the highest quality metals at a lower operating cost than traditional methods without the damaging effects of furnaces and greenhouse gas emissions.