AQMSHIGH SIGNALFINANCIAL10-K

AQMS underwent a major debt restructuring while dramatically scaling up R&D investments, with debt falling 96% and R&D expenses surging 493%.

The massive debt reduction from $9.3M to $332K represents either a major debt restructuring, conversion to equity, or debt forgiveness that fundamentally changed the company's capital structure. The simultaneous 493% increase in R&D spending to $8.1M signals aggressive investment in their battery recycling technology development, though this contributed to continued operating losses.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

The company's financial profile transformed dramatically with current assets nearly tripling to $13.4M (driven by 165% cash increase to $10.8M) while total debt plummeted 96% to just $332K, suggesting either significant new equity financing or major debt restructuring. R&D expenses exploded 493% to $8.1M while capital expenditures dropped 95% to $425K, indicating a shift from facility buildout to technology development, though operating cash flow remained deeply negative at -$10.3M. The overall picture suggests AQMS secured substantial new funding to eliminate debt burden and accelerate R&D, but investors should monitor cash burn rates given the significant operating losses.

FINANCIAL STATEMENT CHANGES
R&D Expense
P&L
+492.8%
$1.4M$8.1M

R&D investment increased 492.8% — signals commitment to future product development, though near-term margin impact.

Interest Expense
P&L
+396.8%
$125K$621K

Interest expense surged 396.8% — significant debt increase or rising rates materially impacting earnings.

Current Assets
Balance Sheet
+188.7%
$4.6M$13.4M

Current assets grew 188.7% — improving short-term liquidity or inventory/receivables build.

Cash & Equivalents
Balance Sheet
+165%
$4.1M$10.8M

Cash position surged 165% — strong cash generation or capital raise providing significant financial cushion.

Total Debt
Balance Sheet
-96.4%
$9.3M$332K

Debt reduced 96.4% — deleveraging strengthens balance sheet and reduces financial risk.

Capital Expenditure
Cash Flow
-94.6%
$7.9M$425K

Capex reduced 94.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Liabilities
Balance Sheet
-51.2%
$10.1M$4.9M

Liabilities reduced 51.2% — deleveraging improves balance sheet strength and financial flexibility.

Current Liabilities
Balance Sheet
-45.9%
$8.2M$4.4M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Assets
Balance Sheet
-25.3%
$26.4M$19.7M

Total assets contracted 25.3% — asset sales, write-downs, or balance sheet optimization underway.

Operating Cash Flow
Cash Flow
+24.8%
-$13.6M-$10.3M

Operating cash flow grew 24.8% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
false --12-31 FY 2025 At Aqua Metals, Inc., we are committed to protecting our information systems, data, and sensitive information from unauthorized access, breaches, and cyber-attacks.
State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category for the years ended December 31, 2025 and 2024.
Business Background Aqua Metals was incorporated in Delaware on June 20, 2014, to develop and commercialize metals recycling technologies based on its proprietary AquaRefining process.
In 2015, the Company developed its initial AquaRefining technology for lead-acid battery recycling, and between 2017 and 2019 operated a demonstration facility that achieved sustained production of recycled lead using a smelterless process.
In 2021, the Company expanded its focus to lithium-ion battery recycling following the development of intellectual property applicable to lithium battery materials.
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REMOVED
Business Background We were formed as a Delaware corporation on June 20, 2014, for the purpose of engaging in the business of recycling metals through an innovative, proprietary and patent-pending process that we developed and named AquaRefining.
In 2015, Aqua Metals developed a breakthrough metal recycling technology that utilizes a clean, closed-loop process that can produce high-purity metal.
We believe this innovative approach can deliver raw materials back into the manufacturing supply chain while reducing emissions and toxic byproducts and creating a safer work environment.
In particular, the modular AquaRefining systems have already demonstrated the ability to recover critical minerals from both lithium-ion and lead acid batteries and can reduce the cost and environmental impact of battery recycling.
Aqua Metals has a history of battery recycling, having first owned and operated a lead acid battery recycling facility between 2017 and 2019.
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