ABAT is a pre-commercial-scale lithium-ion battery recycling and battery metals extraction company with a June 30 fiscal year-end. This 10-Q covers the six months ended December 31, 2025. Under a liquidation lens, the recovery posture has materially improved QoQ but remains negative at the equity level once PP&E and intangibles receive standard haircuts against the full face-value liability stack. Total assets are reported at $123.3M versus total liabilities of $4.4M, yielding GAAP book equity of $119.0M. However, the vast majority of asset value sits in PP&E net ($50.4M) and assets held for sale ($4.5M combined current and other), both of which receive 50-70% haircuts in liquidation. Applying conservative haircuts: cash/restricted cash ~$48.7M at 100% = $48.7M; AR $4.2M at 90% = $3.8M; inventory $0.3M at 60% = $0.2M; prepaid/other current $5.7M at 50% = $2.9M; grants receivable $0.5M at 50% = $0.2M; PP&E gross $59.9M less accumulated depreciation $9.5M = net $50.4M at 60% = $30.2M; intangibles $0.8M at 0% = $0; assets held for sale $4.5M at 60% = $2.7M; ROU asset $0.2M at 0% = $0; other receivables $0.4M at 50% = $0.2M. Gross liquidation asset pool approximately $89.0M. Against face-value liabilities of $4.4M (current $4.2M plus lease liabilities $0.25M), estimated net liquidation value to equity is approximately $84.6M, yielding a modestly positive but fragile recovery. The dominant improvement since the prior filing (September 30, 2025) is cash: unrestricted cash rose from $30.1M to $47.9M, driven by $55.4M in financing activity (warrant exercises and ATM issuances). Concurrently, notes payable were fully extinguished via equity conversion ($8.0M non-cash), eliminating the only material debt obligation. The liability stack is now almost exclusively trade payables and accrued liabilities ($4.1M) plus small operating lease obligations ($0.25M). The $19.5M and $40.5M Section 48C tax credits discussed in MD&A are not recognized on the balance sheet and are not included in any XBRL tag; they represent contingent upside not available in a liquidation scenario. The company carries $16.6M of unamortized stock compensation expense and continues burning approximately $16.9M in operating cash per half-year, making the current cash position ($47.9M unrestricted) sufficient for roughly 2.8 half-years of operating burn at current rates, absent revenue scaling. A pervasive material weakness in internal controls (segregation of duties) persists as of December 31, 2025, and a new CFO was appointed effective February 9, 2026. Accumulated deficit stands at $279.7M.
▼ Community Notes