 Recent Highlights: Successful and regular operation of the first V1.25 electrolyzer, ahead of schedule Continued test runs of the V1.25a electrolyzer have demonstrated improvements, including increases in lead producedhour Collected 15.0 million in insurance proceeds through Q2 2020; potential to collect over 30.0 million for the replacement value of damaged assets, not including potential business interruption recovery proceeds Escrow balance has grown to 4.9 million, allocated for the retirement of the Veritex loan Company has transitioned to a capital light, AquaRefiningTM equipment supply and licensing business model The Company is executing on its plan for maintaining adequate cash on hand; current cash and anticipated insurance and asset sale proceeds are expected to be the primary source of capitalization Continued progress with potential licensing partners; ongoing discussions with several parties, inclusive of ClariosMCCARRAN, Nev., Aug. 04, 2020 GLOBE NEWSWIRE -- Aqua Metals, Inc. NASDAQ:AQMS Aqua Metals or the Company, which is reinventing lead recycling with its AquaRefiningTM technology, today announced financial and operational results for its second quarter ended June 30, 2020.Steve Cotton, President and Chief Executive Officer, commented The Aqua Metals team made substantial operational progress during the second quarter. Our V1.25L electrolyzer program commenced ahead of schedule, even with the significant limitations resulting from COVID-19. Through ongoing test runs, we have already seen very encouraging results from the first iteration of this program V1.25a. Automation enhancements have been implemented and lead produced per hour results have been very encouraging due to improved electrical efficiency. In addition, the groundwork is in place for the fabrication of the second electrolyzer iteration of the program V1.25b. The design of a new, more cost-effective tank has been completed and a more efficient electrical rectifier is on order as we prepare for installation of our V1.25b iteration. Early indications of the program are very positive, and we believe the results will solidify a robust value proposition for future licensing partners. Financially, we continue to make progress as well. We have collected 15.0 million from our insurance provider, with significantly more expected. We have reduced expenses and have established plans to sell unneeded assets, which we anticipate will supplement our financial position. Overall, I am pleased with the progress we have made, and believe Aqua Metals is well positioned for a successful future.Second Quarter 2020 Financial ResultsThe Company did not recognize revenue during the quarter ended June 30, 2020, as a result of the plant fire and the acceleration of the licensing strategy. During the quarter ended June 30, 2019, the Company recognized revenue of 1.5 million. Product sales for the second quarter of 2019 consisted of high-purity lead from the AquaRefining process, as well as lead bullion, lead compounds and plastics.Cost of product sales decreased by approximately 82 for the quarter to 1.3 million, compared to 7.2 million for the second quarter of 2019. Cost of product sales were lower in 2020 due to the suspension of production resulting from the fire.General and administrative expenses for the second quarter of 2020 decreased approximately 48 to 2.2 million, from 4.3 million in the second quarter of 2019. The decrease is attributed to the suspension of operations and expenses under the Operations, Maintenance and Management Agreement with Veolia, reduced Company payroll and efficiencies in nearly all other expense categories.Interest expense for the second quarter of 2020 was approximately 0.2 million, consistent with 0.2 million for the second quarter of 2019.For the quarter ended June 30, 2020, the Company had an operating loss of 3.8 million compared to an operating loss of 10.4 million for the second quarter of 2019. The net loss for the second quarter of 2020 was 4.0 million, or 0.07 per basic and diluted share, compared to a net loss of 10.5 million, or 0.21 per basic and diluted share, in the second quarter of 2019.The net loss for the second quarter of 2020 was impacted by non-cash items including 0.6 million in stock-based compensation. By comparison, non-cash stock-based compensation totaled 0.9 million for the second quarter of 2019.Insurance proceeds receivable totaled 4.9 million as of June 30, 2020. This balance reflects a decrease of 12.5 million from December 31, 2019, as a result of insurance payments received. The 19.9 million of insurance proceeds receivable recorded during the fourth quarter of 2019, was limited by GAAP accounting standards to the net book value of assets written off as a result of the fire. It is anticipated that actual total insurance collections, reflecting actual asset replacement cost and business interruption coverage, will be significantly more than the net book value of damaged assets. As of June 30, 2020, the Company had 4.8 million in cash and cash equivalents. In addition, the Company has 4.9 million in escrow, to be used for the retirement of the Veritex loan.Outlook for 2020 The Company has accelerated its transition to a capital light business strategy designed to optimize shareholder value through focusing on equipment supply and licensing opportunities, which has always been a core part of Aqua Metals business plan. This direction is anticipated to be far less capital intensive than rebuilding the plant and is expected to be funded primarily from a combination of cash on hand, insurance proceeds and the disposition of unnecessary assets. The strategy focuses on building new partnerships and pursuing licensing opportunities within the lead battery recycling marketplace. The Companys cash burn rate has improved significantly as a result of managements swift cost reduction steps taken following the plant fire. It is anticipated that the rate of spend will continue to improve in the latter half of 2020. The Company is pursuing opportunities to dispose of certain assets that are not essential to the capital light licensing strategy. Further, the V1.25L electrolyzer program has successfully begun. It is anticipated that this program will continue with three iterations through the end of 2020. The goal of the V1.25L program is to build upon past success and demonstrate improved electrolyzers that will further decrease manufacturing costs and improve operating efficiency. Aqua Metals capital light business strategy is expected to require less space and equipment and promote cash preservation, all while focusing on the needs of future licensees.Aqua Metals has used, and intends to continue using, its investor relations website in addition to its Twitter, LinkedIn and YouTube accounts at: aquamatalsinc, and respectively, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Conference Call and WebcastAqua Metals will hold a conference call on Tuesday, Aug. 4, 2020 at 1:30 p.m. PDT 4:30 p.m. EDT to discuss second quarter results and corporate developments. Interested parties are invited to the live call by dialing 1-855-327-6837 toll free or 1-631-891-4304 for international callers. Participants have the option of listening to the conference call online by accessing the following link: A live webcast or replay of the conference call is also available via the Company website, and can be found at the following link: A telephone replay will be available until Sep. 4, 2020 by dialing 1-844-512-2921 or 1-412-317-6671 and using pin number 10010547.About Aqua MetalsAqua Metals, Inc. NASDAQ: AQMS is reinventing lead recycling with its patented AquaRefiningTM technology. Unlike smelting, AquaRefining is a room temperature, water-based process that emits less pollution. The modular systems are intended to allow the Company to vastly reduce environmental impact and scale lead acid battery recycling production capacity by licensing the AquaRefining technology to partners. This could help to meet growing demand for lead to power new applications including stopstart automobile batteries which complement the vehicles main battery, lead acid batteries which are in electric vehicles, Internet data centers, alternative energy applications including solar, wind, and grid scale storage. Aqua Metals is based in McCarran, Nevada. To learn more, please visit HarborThis press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as expects, contemplates, anticipates, plans, intends, believes, estimates, potential and variations of such words or similar expressions that convey uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our expectations for the development and completion of our V1.25 electrolyzer, the benefits of the V1.25 electrolyzer, our receipt of additional insurance proceeds or cash from assets sales and the future of lead acid battery recycling via traditional smelters. Those forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially. 