Why did AQMS miss Q1 and Q2 forecasts in 2024?

Aqua Metals Inc (AQMS) missed the Q1 and Q2 forecasts in 2024 due to several factors: 1. **Strategic Developments and Financial Performance**: AQMS secured a major capitalization milestone with a $33 million loan term sheet, enhancing financial flexibility for Phase one of the Sierra ARC facility. However, the completion of the Sierra ARC facility remains on hold pending further financing, delaying potential expansion. This indicates that while the company has taken steps to improve its financial position, the delays in facility completion have impacted its performance. 2. **Revenue Recognition**: AQMS reported no revenue for Q1 and Q2 2024. The company's strategic focus on scaling its circular supply chain and advancing partnerships with 6K Energy may have prioritized long-term growth over immediate revenue generation during these quarters. 3. **Operational Costs**: Plant operations costs increased by 15% year-to-date, reaching $4.6 million. General and administrative expenses also rose by 3% for the year ended December 31, 2024, amounting to $329,000. These cost increases, coupled with the lack of revenue, contributed to the net losses reported for the periods. 4. **Interest and Financing Expenses**: The company recognized $1.1 million in interest expense for the year ended December 31, 2024. Additionally, there was an impairment of approximately $2.6 million related to vendor equipment deposits. These financial expenses have further strained the company's financial performance. 5. **Cash Flow and Liquidity**: AQMS faced challenges with cash flow and liquidity, with total cash decreasing to approximately $4.1 million at the end of Q4 2024. The company relied on financing activities, such as ATM offerings and loan agreements, to provide some cash inflows. In summary, AQMS's missed forecasts for Q1 and Q2 2024 can be attributed to strategic delays in facility expansion, lack of revenue recognition, increased operational and administrative costs, financial expenses, and cash flow challenges. Despite these challenges, the company has been actively working on strategic developments and financing efforts to support its growth and operational goals.