Good afternoon, and welcome to the Aqua Metals Fourth Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I'll now turn the call over to our host Bob Meyers with FNK IR. Bob, please go ahead.

Thank you, operator, and thank you, everybody, for joining. Earlier today, Aqua Metals issued a press release providing an operational update and discussing financial results for the fourth quarter and full year ended December 31, 2023. This release is available in the Investor Relations section on the company's website at aquametals.com. Hosting the call today are Steve Cotton, President and Chief Executive Officer; and Judd Merrill, Chief Financial Officer. Before we begin, I would like to remind participants that during the call, management will be making forward-looking statements. Please refer to the company's report on Form 10-K filed today, March 27th, for a summary of the forward-looking statements and the risks, uncertainties, and other factors that could cause actual results to differ materially from those forward-looking statements. Aqua Metals cautions investors not to place undue reliance on any forward-looking statements. The company does not undertake and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by law. As a reminder, after the formal remarks, we will be taking questions. Questions will be accepted over the phone from analysts, and all other investors can submit a question using the online webcast portal provided in today's and earlier press releases. We will take as many questions as we can in our available time slot. To start the call, we will show a brief video that highlights our progress. For those that have dialed in, you will be able to hear the narration and replays will be available on the website. Steve will lead the call from there.

To initiate commercialization as we enter 2024, we're advancing our commercial activities. First, our pilot plant now has over a full year of operation and learnings and is currently operating 24 hours a day and five days a week. The pilot has been producing nickel, cobalt, lithium hydroxide, lithium carbonate, and other valuable materials that we've been using to validate our capabilities and to provide representative materials shipments to an expanding list of existing and potential customers and partners. Unlike other moonshot approaches with cost overruns and delays, our commitment to the pilot has served to de-risk our process, capitalization, and projected operating costs for our commercial-sized Sierra-ARC facility. The Sierra ARC campus is located right here in the Tahoe-Reno Industrial Center, and Phase 1 of the ARC scales our production from the pilot to 3,000 metric tons of black mass processing, which is a 30 times increase over our pilot production. Importantly, development of the Sierra ARC remains on time and under budget. Judd will speak more on the budgeting side, but our ability to upfit the existing building, design, build, commission, equip, and calibrate a state-of-the-art commercial scale facility in a short timeframe with prudent spending is a testament to the hard work and accuracy with which we planned the growth strategy of the company. We continue to add key personnel to manage this facility and to expand our industry presence. Simultaneously, we have secured our input feedstock supply of black mass. We expect Phase 1 of the Sierra ARC at its full nameplate capacity to generate approximately 30,000 average EV battery packs worth of critical battery minerals on an annual basis or roughly $30 million of revenues at today's metal prices. Because of the inherent economic advantages of ARC refining, including full recovery of all valuable minerals, the elimination of one-time use chemical purchases, and expensive waste streams, we believe that even at today's lower metal prices, Phase 1 of the ARC still has favorable economics. With input feedstock established, we now have a clear line of sight to our processing capabilities with commissioning beginning this summer at the Sierra ARC. For our output, we have just finalized our first key off-take agreement announced yesterday with 6K Energy. This is our first marquee off-take agreement. The supply agreement with 6K establishes a first-of-its-kind sustainable circular supply chain for minerals essential for manufacturing lithium-ion batteries. Beginning in 2024, Aqua Metals will supply 6K Energy with sustainably recycled critical minerals, ramping up to provide up to 30% of the nickel and lithium carbon needed for 6K's PlusCAM facility. This is a pivotal collaboration for both companies and the industry as we together define industry standards for low-cost, low-carbon, domestically produced materials. With our input, processing, and output solidified, we believe that we are moving towards significant revenues and cash flow while revolutionizing the lithium-ion industry. Risk mitigation is also key to our strategy. Others attempted to ramp production rapidly, requiring massive capital commitments with challenging deadlines, without systematically scaling and de-risking technology along the way. In contrast, we are moving methodically, proving our technology step by step, advancing in a phased approach to reasonable, but still meaningful production levels, and building our partner ecosystem. As we look towards the next phases of our growth, we are pursuing a variety of funding options, including non-dilutive government grants, debt, as well as traditional financing. We will, however, continue to move methodically, recognizing that this industry is still maturing. As we have said before, our strategy is also based on self-sustainability. Flexibility is a big part of our strategy and is based on multiple revenue streams, starting with build, own, operate, but then adding licensing, joint venture, co-location, and other structures, all of which we can consider given that our IP is all developed in-house. With our unique technology and engineering design, our commercial plants are expected to require less than half of the CapEx per ton compared to traditional hydrometallurgical players, along with an operating cost per ton advantage due to low chemical usage and a lack of waste streams like sodium sulfate, which our unique process eliminates. This efficiency and our measured approach give us significant optionality and serve as a durable competitive advantage. In fact, we believe that the inherent environmental and economic challenges of both pyro and standard hydro disqualify those processes as viable long-term solutions for the industry. In an environment where commodity prices have shifted, this serves us well. As part of a nascent industry, we are facing some of the typical ebbs and flows in a rapidly evolving industry. Expanding our partner ecosystem is a critical component of our commercialization strategy, and we have made significant progress in this area. Beyond our recently announced supply agreement with 6K Energy, we continue to make progress on our partnership as we expect to complete by April the 6K Energy funded development agreement for a specialized nitration process. As you may recall, in October, we signed a multi-part memorandum of understanding that is the basis for our collaboration that is expected to extend for many years to come. We have taken significant steps towards our common vision of deploying the nitration process, as well as a new ARC adjacent to their PlusCAM one facility in Jackson, Tennessee. Our partnership with Yulho continues to progress. Yulho's first black mass production facility build-out is nearly completed and operations will commence pending environmental approvals. Discussions are ongoing as we negotiate our first licensing agreement. We worked with Dragonfly Energy to supply them with what we believe is the first sustainably recycled lithium hydroxide, which they then used to produce and successfully cycle lithium-ion cells with their unique dry deposition solid state technology. We believe that this is the first time sustainably recycled battery minerals have actually been tested in new batteries. As Dragonfly Energy successfully builds their production capacity, we expect them to be a buyer of our lithium products right here in Tahoe-Reno, Nevada. Turning our attention now to overall industry dynamics, I would like to make a comment on where we see the industry going. Despite some recent negative headlines, the energy transition is alive and well, as evidenced by a 30% year-over-year growth in North American EV sales. Despite some bumps in that growth curve and the deployment of over one terawatt hour of battery production capacity in the US by the decade's end, which is literally 200 times the capacity of 2020, just a few short years ago. This represents hundreds of billions of dollars being invested in just a decade to build one of the country's largest industries from the ground up. These new gigafactories will ramp scrap production rapidly, driving the need for sustainable recycling, to close the loop, and to help qualify domestically produced EVs for the IRA tax incentives. As evidenced in our meetings and discussions with several gigafactory operators and auto manufacturers, we see an enormous opportunity to be a market maker and assist them in closing the loop. We also strongly believe that the word recycling could be mistakenly conflated with the word sustainable. Competing technologies produce two to seven times the weight of the batteries to be recycled in greenhouse gases, and one to two times the weight of the batteries in sodium sulfate waste streams, destined for landfills or even oceans. In addition to environmental impacts, ARC refining allows for safe, clean jobs. Our employees do not have to wear smelting hot suits or uncomfortable chemical suits. So in summary, we believe that these partnerships, strategic investments, and achievements serve as powerful validation for our technology, our strategy, and our growing position in the marketplace. I look forward to sharing further updates with all of you soon. And for now, I'll turn it over to our Chief Financial Officer, Judd Merrill, to discuss the results for the year ended 2023.

Thanks, Steve. Our 10-K report is finishing up some final reviews with the auditors as we made a switch from one audit firm, who is no longer doing public accounting company audits, to four of us, a top 10 accounting firm with extensive public company experience. These final reviews will be completed shortly, and we expect to file the 10-K on time before the April 1st deadline. Since the 10-K hasn't been filed yet, I am not able to share as many financial metrics on today's calls as I normally do. However, I am able to share some key financial information today. Let me start with the balance sheet. As of December 31, 2023, we ended the year with total cash of approximately $16.5 million. Cash on hand will support costs related to operating the pilot plant, general working capital, and the ongoing outfitting and commissioning of Phase 1 of the Sierra-ARC. As Steve discussed, the buildout of our Phase 1 commercial facility is on schedule and under budget. It has been a priority for Aqua Metals to accurately forecast the capital needs of our phased growth plan. There were no other significant changes on our balance sheet since our last report, so I'll move to the income statement. For 2023, we were focused on executing our operations at our pilot plant and the buildout of our commercial facility. The cost related to plant operations were approximately $6.3 million for the year. During the year, we did record modest revenue service fees from the successful completion of the NRE, or the Non-Recurring Engineering Agreement, with 6K Energy. Research and development costs decreased approximately 4% compared to the year ended December 31, 2022. General and administrative expenses increased approximately 19% for the year ended December 31, 2023 compared to the year ended December 31, 2022, which was in line with our expectations and our growth plans. For the year ended December 31, 2023, we recognized a non-cash impairment charge of approximately $4.8 million. This is related to our investment in LINICO and ACME metals. For LINICO, we wrote off $1.4 million, and this is a result of the sale of our LINICO common stock to LINICO's parent Comstock Inc. for $600,000. In addition, we recognize a loss of $3.5 million related to the ACME construction and process as a result of the pause of the development of recycling operations. This loss is accounted for to comply with GAAP standards, but the showcase facility remains a place at ACME Taiwan and can still be operated for various prospective opportunities that Steve outlined earlier. Net loss for the year was approximately $23.9 million or a negative $0.25 per basic and diluted share compared to a net loss of $15.4 million or a negative $0.20 per basic and diluted share for 2022. When we removed the one-time non-cash-related impairment charge, our non-GAAP net loss for the year was $19.1 million, or a negative $0.20 per basic and diluted share, which is in line with expectations for the year. Cash used in operating activities for the year ended December 31, 2023, was $3.2 million. Our cash flows from financing activities increased, related mainly from the 2023 equity raise and strategic investment from our partnership with Yulho. We believe 2024 is an important year as we finish construction and begin production at our first commercial demonstration plant, the Sierra-ARC, which we believe will begin to generate cash at a plant level in 2025. Construction, installation, and equipment arrival is on time and currently under budget. We will need additional capital to fund our proposed business plan beyond the next 12 months, including the completion of the Phase 1 buildout of our Sierra ARC Recycling Campus and the start of our full-scale commercial operations. We are actively pursuing non-dilutive options such as the USDA government guaranteed loan for $25 million, which we should have an answer from USDA in the coming weeks. In addition to the USDA loan, we have also been working on securing funds from other sources, such as conventional lenders, the DOE, strategic partners, and possible dilutive options. We have filed with the DOE for a sizable grant and expect to hear back this summer. Our access to cash is key to ensuring our funding success and greatest deposit cash generation that we expect from our first commercial demonstration plant. That concludes my remarks on the company's financials. I will now turn it back over to the moderator for Q&A.

Thank you. We'll now be conducting a question-and-answer session. Our first question today is coming from Michael Legg from the Benchmark Company. Your line is now live.

Thanks. Good afternoon and congrats on all the accomplishments to date. Wanted to touch base on how much CapEx is left on Phase 1. And let's start with that and the cash needs I want to get into. Thanks.

Yes. Thanks, Mike. So we have about $18 million to $20 million left on the CapEx needs to finish up the plant, which we've already spent some of that in Q1.

Okay. How much more do we expect to burn in operational G&A over the quarter?

So on a quarterly basis, about $5 million per quarter.

Okay. And we expect to hear back from the USDA. Give me a little more detail on the requirements to get approved by the USDA? And why do you think you have a good shot at getting it?

Yes. One of the biggest things that the USDA wants is to see that we can create jobs in a rural area. And that's exactly where we're at. We've actually got a USDA loan guarantee when we started the lead recycling back in 2018. So they like this type of area. They like the type of company that's creating jobs and bringing more industry to these areas. And so, that is an important step. And then we went through all the process that they require, which is completing a feasibility study, which we did, which was positive, it was done by a third party. We completed an engineering study by a third party, which we did, and turned those in. They like to see some operations, and so our pilot plant operated all last year and so that's positive. So there's a lot of positives there to protect the boxes for the USDA requirement.

Okay, great. It's good to hear. And then as you get closer to commercial production and the pilot plant has proved out, what type of inbound requests are you getting from possible clients? And then long-term, how much of the production do you want to have contracted out?

Yes. So this is Steve answering your question. Good to hear from you, Mike. For the makeup of our off-take, we announced yesterday in partnership with 6K Energy that we're going to supply 30% of their PlusCAM facility. And that is equal to around $50 million a year as that facility gets up to its full capacity at today's mineral prices. And then in our full campus environment, that would be a portion of our output, because it will produce more than that. That allows us to continue to find other off-take partners, and we are having a lot of meetings to develop those relationships. And it also allows for us to work with 6K Energy to have them incorporate 30% recycled materials into their processes through the technology that we develop for them through the non-recurring engineering project that nitrates the metals that they can get from us and they can get from other sources, mined or otherwise, so they can fulfill their needs. So it's a really good symbiotic relationship where neither party is totally 100% dependent upon each other for our offtake or for them for their supply. And then we also have optionality and the ability to continue to develop our relationships with other offtake partners, for which we're meeting with a lot.

Great. Congrats on your accomplishments. Look forward to seeing the rest of your pan out. Thanks.

Thanks.

Thank you. Next question is coming from Sameer Joshi from H.C. Wainwright. Your line is now live.

Thanks for taking my questions. Just a clarification on the previous answer. The $50 million potential is once you ramp up to the total 30% of their capacity, right?

Yes, Sameer. The PlusCAM facility in Jackson, Tennessee is currently under construction and will be operational later this year. We anticipate that to meet 30% of its capacity, we will be in Phase 2 of our Sierra ARC development by that time. At present metal prices, Phase 1 is estimated to generate about $30 million in revenue. Phase 2 will nearly triple the capacity of Phase 1. Therefore, we will need to complete Phase 2 to fully utilize the facility as it reaches its maximum capacity.

Yes, understood. That's what I was trying to get to. Thanks for that clarification. On the cash flow front, the $5 million per quarter, does that include the category of cost of plant operations? Is that also included in addition to SG&A and R&D?

Yeah, that's correct. It includes production, ramp-up, and R&D.

On the Dragonfly Energy, I know you briefly touched on it, but what are the next steps and are there any milestones that we should expect next year during 2024 and 2025?

Yeah, so it's really exciting what we've already done together with Dragonfly, where we provided them the lithium hydroxide right out of our pilot plant processes. And they've taken that lithium hydroxide and incorporated that into their advanced dry deposition LFP battery technology, which has a solid state, silicon anode, etc. And that gives them the opportunity to take our lithium, produce cells, and cycle those cells and prove it out, which they've already done. And the next steps are as they continue to develop their pilot line for their gigafactory production capabilities right here in Tahoe-Reno. They're going to need more and more lithium. And that's another off-take partnership that we're working out with them, much like we've already worked out with 6K. And that's a local partner right here in the state of Nevada that we're really excited about continuing to develop that relationship as they develop their gigafactory operations over time.

Understood. Where is the equipment that is with ACME located? It has been written off, but I believe you mentioned it can still be used for demonstration. Who is currently in control of that equipment and where is it located?

Yeah, so that installation is sitting near Taipei. So it's really Taipei, Taiwan. Our partner ACME has that equipment on the ground and runs it from time to time. We actually still have quite a few interested parties that we're engaging with that are very interested in the lead technology, and that is more of our licensing-only solution for the lead technology to focus our capital efforts on the build, own, and operate of the lithium. But that still serves as a showcase display. We'll, for example, be planning to visit that with one of the prospects from Southeast Asia that we're engaged with to talk about licensing lead recycling in the coming month or so. That is a great showcase facility that just happens to have an accounting rule that required us to do what we had to do to comply with the GAAP accounting. It doesn't mean that the investment made and the showcase effect of the facility is any different. Our partner at ACME is very excited about continuing to work with us and show that technology to other parties and participate in potential business dealings.

Thanks for that color. That's all for me. I'll take other questions offline. Thank you.

Great. Thank you.

I'd like to turn the floor back over to Bob Myers for further Q&A.

Thank you, operator. The first question is on 6K. What does the supply agreement with 6K mean for the company? And how long do you have until you need to start sending them recycled materials?

Yes. Great question. We're really excited about getting the supply agreement finalized, which is the first of some more agreements that will come down the line that our memorandum of understanding outlined. That's a significant event for the company and the industry, because together we're establishing the first sustainable circular supply chain for all these critical battery minerals right here in the US. We think between our technology and 6K decarbonized technology, we are really the first. It's really another validation of our off-refining technology with partners that can absorb large quantities of our processing capacity. We'll be sending them some initial amounts of recycled lithium carbonate this year in 2024, ramping up to larger quantities of all the various battery minerals as we get into 2025 and beyond when we get the Sierra-ARC fully up and running in Phase 1. Again, this is a foundational step for additional agreements with 6K that we're working on now, which includes co-locating another ARC right next to their Jackson, Tennessee facility for which we've sent teams out for workforce development, engineering, land allocation, and all the things associated with the co-location type of an agreement. So there's more to come with 6K, and this is a really foundationally established first big step in the partnership, and both companies are excited about it.

Thank you, Steve. Next question. You mentioned the Sierra-ARC is currently on time and budget. Can you share a bit more detail?

Sure. The fact that the Sierra-ARC is on time and on budget is truly a validation of our phased growth strategy. Unlike others in the industry, we took a painstaking detail of time and effort and resources to go with the pilot and pilot the technology first and outfit the new plan ultimately with lower and more predictable overall capital spend, which helps us stay on time and on budget because we took that disciplined approach. It also took a lot of financial discipline to work with the various suppliers and manage expected delays and unknowns in the supply chain because we had already gone through that supply chain a bit to get the pilot. So it's a more established, mature supply chain for us now that gives us confidence in time and schedule and costs and all those things. As we showed in our opening video, for those of you that called in, you can also see that video on our Aqua Metals site. Just click on Media and then go to the blog. It will be the first entry there under the blog area. The video shows the significant progress we've made, and our current future off-take partners are really eager to see us get to that production stage. Many of the folks we're engaged with, beyond who we've already announced, are supporting our efforts and working with us to take those sample materials coming from the pilot, getting those to the stage where they can sign up their offtake agreements for the Sierra-ARC as well. The upfitting of that plant is being finalized, and the video shows the inside of the plant ready with the equipment platform and the brand new base floor. We now have epoxy on the floors even after the filming of that video, and the equipment is ready to be staged and put in, and we'll be turning that plant on this summer. Again, on time and on budget, really driven by our disciplined modular approach, where we took the pilot and really had that inform the build of the plant.

Great, thank you. The next question, can you elaborate on the path to revenue generation?

Absolutely. Aside from the non-recurring engineering that we've already received from 6K Energy to develop the nitration technology, which we're finalizing in a few weeks, the pilot plant output serves more strategic purposes, providing samples to our partners, and that has been going well where we provided lithium, nickel, and cobalt to various partners. Some of that material, of course, has gone through 6K, where they've taken that material and produced cathode-active material to get that into the hands of cell manufacturers and automakers. The Sierra-ARC is primarily focused on growing revenues and driving profitability for the company, starting with Phase 1 at 3,000 tons per year. We expect to produce materials from black mass that we introduced this summer in 2024, with production ramping to saleable quantities late 2024, but certainly as we get into Q1 of 2025 and work through revenue recognition. Production is still set to commence as we get into the latter part of the year after commissioning is complete.

Thank you. Now the next question, on the funding side, can you offer an update on your capital needs and funding and the status of the USDA in particular and other options, as you talked about in the prepared remarks?

Okay, Bob, I'll take that question. As we've discussed, the USDA or another lending mechanism is important for us to finish the buildout of Phase I Sierra-ARC. On the USDA, the application has been filed and submitted and from our understanding has gone through the initial review process on their side. There is a final committee that has to still meet and review, so we should be hearing back soon on that. The government tends to take longer than we'd like it to, but I think we're very close to hearing back. We like the USDA loan because the debt service terms are favorable. The cost of capital is a little better than some of the other options out there. We've been talking to other lenders because the USDA is really meant for funding that Phase 1, and there's an opportunity to fund not only Phase 1 but to contemplate Phase 1 and Phase 2 through additional debt lending. Those discussions are ongoing. We're having meaningful discussions with potential partners that we really like and think will be a good fit. Even if we didn't get the USDA, we could use those sources to fund Phase 1 and potentially Phase 2. If we do get the USDA in place, we can use these partners to fund Phase 2 starting next year. A lot of groundwork is being done to protect our ability to move forward.

Thank you. Moving back to some partners on Yulho, when do we expect to get closer to an agreement and more updates on that partnership?

I'll take that one, Bob. The productive trip we had late last year to South Korea, seeing Yulho's black mass facility, was a significant proof to us that they are on the verge of turning that facility on. In fact, it was materially complete at the end of last year, and initial commissioning has been happening subsequently. It's an impressive brand new facility with state-of-the-art technology where the crushing technology, among other things, is developed right there in South Korea. They're currently working on final environmental permits to operate and start putting batteries through. One of our team members is over there right now witnessing some of the initial activities in preparation for that. We'll be working with Han Yang University to evaluate those materials and provide assays. This sets us up to continue our conversations in the coming months, where we'll negotiate the licensing agreement. Pending the success of those negotiations, they would begin building a process that looks a lot like the Sierra-ARC Phase 1. The engineering package is already complete and it can move very quickly to replicate a process similar to ours. As we have those conversations and material items developed, we'll continue to provide updates, but we're excited about the opportunity that we have with our partner and investor with Yulho Materials.

Great, thank you. Related to ACME Metals, you indicated earlier there were some non-cash impairment charges. Can you review that in a bit more detail?

It's really a GAAP accounting exercise when you look at assets. We've been clear that our focus related to the lithium side of the business. This doesn’t mean things aren't ongoing on the lead side, but when you look at the assets in Taiwan that we had listed on our balance sheet, we went through that GAAP checklist of items and concluded it would be better off to write those down. The important point is that it's still operational and serves as a showcase for potential lead recycling business opportunities. Our partner at ACME is very excited about continuing to work with us and show that technology to other parties.

Great, thank you. There was another question here about cash burn and if you could talk a little bit about what you see going forward.

As we stated, I think with a couple of questions from before, we have additional CapEx related to the plant, and the ongoing cash needs for OpEx and G&A of about $5 million per quarter.

Thank you. Next question, how many tons of black mass is the pilot plant currently processing per week?

The pilot plant is scaled to be one-thirtieth of the size of the production plant. That allows us to operate around 50 to 100 tons per year of processing capacity, and that capacity is black mass input. We’ll continue to take materials we're producing from the pilot and use that for samples and sample quantities, which are significant. They’re not just in grams or kilograms but more than that for various partners in the industry. The pilot's purpose is to produce those materials and distribute them to the partners for evaluation and qualification.

Great, thank you. What is the typical lithium yield from 1 ton of black mass?

Yes, the easy but confusing answer is, it depends. It depends upon the makeup of the material. What's great about our technology is that we've been able to process lithium, perhaps with a 5% composition in the black mass to a higher percentage found in cathode powder. So we're very flexible in the types of recipes that come. The important aspect of what we do is we extract a very high 90% of the lithium from whatever those sources are from various battery recipes. This advantage sets us apart from pyro or smelting methods that recover 0% of the lithium.

Thank you. Next question, how many times can you recycle the precious metals in a typical lithium-ion battery without losing their efficacy?

The beauty of critical minerals recovery is that all these critical minerals can be reused infinitely. Once recycled, minerals are certainly ahead of oil and gas where you can’t recycle gasoline and oil. Lithium batteries are close to 0% to 1% recycled content now, and over time, as recycling closes the loop, the market will mature, increasing those numbers significantly.

Thank you. Thanks, Steve. Next question, despite some of the progress and opportunities that you've outlined, there still have been some headwinds in the market and the way the stock trades a little bit. What do you believe to be the disconnect and what milestones can we look for in the coming year to further investor confidence in the company?

There’s investor confidence in the industry and in the company. If you look at investor confidence in the industry, metals prices have come down, and there have been misleading articles about EVs being a fad, which isn't true. We've seen 30% year-over-year growth in EVs just in 2023. The manufacturers know by 2030 it’s going to cost less to make electric vehicles than internal combustion engine vehicles due to supply chain costs. Strong data points indicate growth inevitability for this industry. Regarding Aqua Metals, the nascent industry of lithium-ion battery recycling presents challenges, and solidify our position in comparison to competitors that have faced difficulties. We'll see increased value and share price if we continue to achieve the milestones we’ve set out. Our intent is to keep progressing on our commitments, which we believe will positively impact our valuation.

Great, thank you. Next question, are there any active discussions that you can expand upon with US auto OEMs or battery manufacturers?

As I said before, we can't name names, but we are constantly engaging with them and providing samples. We continually meet and develop relationships, which take time, but we believe our level of engagement will yield further announcements beyond what we’ve announced yesterday with 6K.

Great, thank you. And you touched upon this a little bit in the earlier question, but another question about the market and your perspective on Aqua Metals not getting as much credit with the carbon-friendly process versus some of the other companies out there that have hydro and pyro?

It’s not only the CO2 and the fact that alternative hydro and pyro processes generate significantly more CO2 than what's being recycled, but we've generated minimal amounts. People are realizing our lack of sodium sulfate production, which is deemed unsustainable from an environmental and cost perspective. The cost to manage these waste streams is considerable. We generate minimal waste while maintaining low energy input. Thus, we have strong recognition within the industry, including from the DOE. We're waiting for broader recognition of our sustainability advantages, which also leads to economic benefits.

Thank you. This is all the time we have for questions. I'd like to turn the floor back over to management for any further or closing comments.

Thank you again everyone for your time and attention. We are rapidly advancing our operational and commercial initiatives on a global scale, and it's an exciting time for Aqua Metals. We look forward to providing updates on our continued progress. If anyone has questions, feel free to contact us or reach out to our IR team. Thanks again.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.