Executive Summary

Q2 FY2025 revenue was $0.33M, up from $0.20M in Q1, while net loss widened to $13.4M; diluted EPS was $(0.18) versus $(0.17) in Q1 and $(0.21) in prior-year Q2 .
Management implemented process enhancements at the Nevada recycling facility, reporting January throughput >225% of prior-quarter average and the first week of February >350%, following a temporary pause to upgrade operations .
Liquidity improved on capital raises and new notes: total cash on hand was $20.6M (including $15.6M available and $5.0M restricted) at quarter-end; working capital rose to $12.8M .
The DOE contracted a $144M grant to support ABAT’s second recycling facility (~5x throughput vs first); management emphasized scaling both recycling and claystone-to-LiOH primary resource operations .
No formal numeric guidance was issued; focus remains on throughput ramp and project execution amid a continuing going-concern emphasis in filings, which is a key stock narrative risk factor .

What Went Well and What Went Wrong

What Went Well

“Facility throughput in January 2025 was greater than 225% the average monthly throughput in the previous quarter… first week of February 2025 was greater than 350% the average weekly throughput in the previous quarter” – press release following upgrades .
Government grant reimbursement offset expenses ($2.3M in the six months), boosting non-dilutive funding; DOE contracted $144M for a second recycling facility, targeting ~100,000 tonnes/year capacity and 5x throughput vs first plant .
Ongoing validation of claystone-to-LiOH technologies with multi-ton-per-day pilot production; ABAT continues design of a 30,000 tonne/year LiOH refinery with a $57.7M DOE grant supporting the project .

What Went Wrong

Gross loss of $(3.0)M on $0.33M revenue; cost of goods sold was $3.31M, with cash COGS of $2.1M (non-GAAP), reflecting depreciation-heavy fixed costs and early-stage scaling inefficiencies .
Operating expenses increased to $10.83M in Q2 (vs $8.81M prior-year Q2), driven by G&A ($7.67M) and stock-based compensation; net loss widened to $(13.4)M .
Filings reiterate material weaknesses in internal controls and a going-concern emphasis; remediation efforts are ongoing (talent additions, process changes), but full effectiveness is not yet achieved .

Financial Results

Metric	Q2 FY2024 (Three months ended Dec 31, 2023)	Q1 FY2025 (Three months ended Sep 30, 2024)	Q2 FY2025 (Three months ended Dec 31, 2024)
Revenue ($USD)	$0.00	$201,960	$332,440
Cost of Goods Sold ($USD)	$0.00	$2,542,641	$3,305,743
Gross Loss ($USD)	$0.00	$(2,340,681)	$(2,973,303)
Total Operating Expenses ($USD)	$8,809,308	$7,462,483	$10,827,455
Net Loss ($USD)	$(10,177,859)	$(11,694,569)	$(13,400,506)
Diluted EPS ($USD)	$(0.21)	$(0.17)	$(0.18)

Segment breakdown: ABAT does not report segments; revenue is from recycled product sales during initial commercialization phase .

KPIs

KPI	Q2 FY2024	Q1 FY2025	Q2 FY2025
Cash on Hand ($USD)	$7.0M (FY2024 balance for context)	$5.77M	$20.6M (Total; $15.6M available, $5.0M restricted)
Inventory ($USD)	$154,320	$255,897	$574,103
Government Grant Reimbursement ($USD)	$1.7M (six months prior-year)	$1.4M (Q1 offset to R&D)	$2.3M (six months)
Facility Throughput vs Prior Quarter	N/A	N/A	January: >225% monthly avg; early Feb: >350% weekly avg
Working Capital ($USD)	N/A	$5.52M	$12.79M

Guidance Changes

No formal numeric financial guidance was provided this quarter; management emphasized throughput ramp, second-facility development, and pilot LiOH production progress. The table reflects absence of prior/current quantitative guidance.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	None disclosed	None disclosed	Maintained (no guidance)
Margin/OpEx	FY2025	None disclosed	None disclosed; commentary on COGS mix and efficiency gains expected as scale increases	Maintained (no guidance)
Capex/Projects	Multi-year	DOE grants/tax credits disclosed (non-guidance)	Continued execution; DOE $144M contracted for second recycling facility	N/A (program awards, not guidance)

Earnings Call Themes & Trends

Note: A Q2 FY2025 earnings call was hosted, but a transcript was not available in our document catalog; themes below derive from the 8-K press release and 10-Q MD&A .

Topic	Previous Mentions (Q4 FY2024 and Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Recycling Throughput & Scale	Initial commercialization; Q1 revenue $0.20M with cash COGS $1.3M; ramp ongoing	Post-upgrade throughput spikes (>225% monthly; >350% weekly); Q2 revenue $0.33M	Accelerating
DOE Grants & Tax Credits	48C credits: $19.5M and $40.5M selections; $150M DOE grant selected for negotiation	$144M DOE grant contracted for second facility; $57.7M DOE LiOH grant in execution	Advancing
Claystone-to-LiOH	Pilot plant commissioned; customer evaluation batches; Amended Initial Assessment published	Multi-ton/day pilot ongoing; LiOH refinery design and DOE support reiterated	Steady progress
Costs/COGS Structure	High depreciation/stock comp in COGS; early-stage scaling	Cash COGS $2.1M (six months $3.4M); efficiencies expected as volume scales	Improvement expected over time
Liquidity & Financing	ATM equity; private placements; notes amended	New $12M notes; $15M equity offerings; cash $20.6M with $5M restricted	Strengthened liquidity
Controls & Governance	Material weaknesses disclosed; remediation plan initiated	Material weaknesses persist; further remediation and CFO search underway	Work-in-progress

Management Commentary

“Company demonstrates significantly increased throughput at its first lithium-ion battery recycling facility” – press release framing throughput gains post upgrades .
“We are extremely proud to have been awarded this highly competitive grant contract from the U.S. DOE… expanding domestic supply of… battery grade… materials” – CEO on $144M DOE grant for second facility .
MD&A emphasizes non-GAAP cash COGS analysis and expectation that costs will decline as a percentage of revenue with scale: “cost of goods sold… cash cost of goods sold was $2.1 million… will be reduced as a percentage of revenue as we scale” .
Concurrent commercialization strategy across recycling and primary claystone lithium operations reiterated to diversify domestic feedstock and products .

Q&A Highlights

A Q2 FY2025 call was hosted, but a transcript was not available in our catalog to extract Q&A. Management’s filings suggest focus areas included throughput ramp timing, cost structure normalization with scale, DOE grant milestones, and liquidity/covenant management .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY2025 was unavailable via our data service at this time; as a result, comparisons versus consensus EPS/revenue and estimate revisions are not provided.

Key Takeaways for Investors

Early-stage scale-up continues: throughput metrics post-upgrade are strong (>225% monthly, >350% weekly), but current revenue remains nascent ($0.33M), and fixed-cost depreciation creates heavy gross losses; narrative hinges on translating throughput into sustained sales and margin normalization with volume .
Liquidity improved meaningfully (cash $20.6M; new $12M notes; $15M equity), yet going-concern risk and covenant sensitivities remain central; execution on ramp and non-dilutive funding drawdowns is critical for de-risking .
Strategic upside from DOE programs is substantial: $144M grant for second facility and $57.7M LiOH grant underpin capacity expansion and primary resource commercialization; monitor contracting milestones, capex phasing, and project timetables .
Cost curve should improve as scale rises: management expects COGS as a percentage of revenue to decline; track depreciation per unit, labor/overhead absorption, and cash COGS trends over the next 2–3 quarters .
Governance/control remediation remains a watch item; hiring and process improvements underway; any progress toward remediation by FY2025 year-end could reduce perceived execution risk .
With no formal guidance, focus on operational KPIs (throughput, shipments, product qualifications) and liquidity/covenant updates; catalysts include customer qualification wins, second facility milestones, and LiOH pilot-to-refinery progression .
Estimate comparisons are not available; near-term trading likely driven by operational disclosures (throughput/sales ramp), financing updates, and DOE project news rather than earnings beats/misses.

AMERICAN BATTERY TECHNOLOGY Co (ABAT)·Q2 2025 Earnings Summary