10-Q 1 form10q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarter period ended March 31, 2022

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934

 

Commission File number: 000-55088

 

AMERICAN BATTERY TECHNOLOGY COMPANY
(Exact name of registrant as specified in its charter)

 

Nevada   33-1227980

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

100 Washington Ave. Suite 100, Reno, NV 89503

(Address of principal executive offices)

 

(775) 473-4744

(Registrant’s telephone number)

 

 

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large-accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large-accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” Rule 12b-2 of the Exchange Act.

 

  Large-accelerated filer Accelerated filer
  Non-accelerated filer Smaller reporting company
  Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

 

Yes ☐ No

 

The number of shares of the Registrant’s common stock, par value $0.001 per share, outstanding as of May 16, 2022 were 645,695,337 ..

 

 

 

 

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Table of Contents

 

   

Page

Number

PART I. FINANCIAL INFORMATION  
     
ITEM 1. Financial Statements 3
     
  Condensed Consolidated Balance Sheets (unaudited) at March 31, 2022 and June 30, 2021 4
     
  Condensed Consolidated Statements of Operations (unaudited) for the three and nine months ended March 31, 2022 and 2021 5
     
  Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three and nine months ended March 31, 2022 and 2021 6
     
  Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended March 31, 2022 and 2021 8
     
  Notes to the Condensed Consolidated Financial Statements (unaudited) 9
     
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
     
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 17
     
ITEM 4. Controls and Procedures 17
     
PART II. OTHER INFORMATION  
     
ITEM 1. Legal Proceedings 19
     
ITEM 1A. Risk Factors 19
     
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 19
     
ITEM 3. Defaults Upon Senior Securities 19
     
ITEM 4. Mine Safety Disclosure 19
     
ITEM 5. Other Information 19
     
ITEM 6. Exhibits 20
     
ITEM 7. Signatures 21

 

2

 

 

PART I – FINANCIAL STATEMENTS

 

ITEM 1. FINANCIAL STATEMENTS

 

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

 

Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that can be expected for the year ending June 30, 2022.

 

3

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Condensed Consolidated Balance Sheets

 

          
  

March 31, 2022

(Unaudited)

  

June 30, 2021

 
ASSETS          
Current assets          
           
Cash  $

36,323,316

   $12,843,502 
Investments   44,624    - 
Prepaid expenses and deposits   

400,929

    1,292,216 
           
Total current assets   

36,768,869

    14,135,718 
           
Property and equipment, net (Note 3)   

15,741,458

    5,484,225 
Intangible assets (Note 4)   3,815,910    1,643,160 
Right-of-use asset   273,449    - 
Total assets  $56,599,686   $21,263,103 
           
LIABILITIES & STOCKHOLDERS’ EQUITY          
           
Current liabilities          
           
Accounts payable and accrued liabilities  $3,528,576   $1,616,852 
Due to related parties (Note 5)   205,646    205,646 
           
Total current liabilities   3,734,222    1,822,498 
           
Long-term liabilities   204,081    - 
           
Total liabilities   

3,938,303

    1,822,498 
           
Commitments and contingencies (Note 11)        
           
STOCKHOLDERS’ EQUITY          
           
Series A Preferred Stock Authorized: 500,000 preferred shares, par value of $0.001 per share issued and outstanding: nil and 500,000 preferred share as of March 31, 2022 and June 30, 2021, respectively   -    500 
           
Series B Preferred Stock Authorized: 2,000,000 preferred shares, par value of $10.00 per share issued and outstanding: nil preferred shares as of March 31, 2022 and June 30, 2021   -    - 
           
Series C Preferred Stock Authorized: 2,000,000 preferred shares, par value of $10.00 per share issued and outstanding: nil and 207,700 preferred shares as of March 31, 2022 and June 30, 2021, respectively   -    2,077,000 
           
Common Stock Authorized: 1,200,000,000 common shares, par value of $0.001 per share issued and outstanding: 645,695,337  and 573,267,632 common shares as of March 31, 2022 and June 30, 2021, respectively   645,695    573,268 
           
Additional paid-in capital   183,792,910    121,615,738 
Common stock issuable   7,500    247,750 
Accumulated deficit   

(131,784,722

)   (105,073,651)
           
Total stockholders’ equity   

52,661,383

    19,440,605 
           
Total liabilities and stockholders’ equity  $

56,599,686

   $21,263,103 

 

(The accompanying notes are an integral part of these condensed consolidated unaudited financial statements)

 

4

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Condensed Consolidated Statements of Operations

(unaudited)

 

                     
  

Three months ended

March 31,

2022

  

Three months ended

March 31,

2021

  

Nine months ended

March 31,

2022

  

Nine months ended

March 31,

2021

 
Operating expenses                    
                     
Exploration costs  $202,555   $211   $473,539   $109,910 
General and administrative   2,631,020    6,806,803    26,454,436    31,727,157 
                     
Total operating expenses   2,833,575    6,807,014    26,927,975    31,837,067 
                     
Net loss before other income (expense)   (2,833,575)   (6,807,014)   (26,927,975)   (31,837,067)
                     
Other income (expense)                    
                     
Accretion and interest expense   (5,962)   (713,970)   (10,102)   (2,914,470)
Financing costs   -    (41)   -    (405,137)
Change in fair value of derivative liability (Note 7)   -    (12,637,125)   -    (19,655,296)
Gain on settlement of debt   -    15,220,668    -    18,683,279 
Gain on sale of mining claims   153,393    -    153,393    - 
Unrealized loss on investment   (5,376)   -    (5,376)   - 
Other income   60,969    1,396    100,744    1,396 
                     
Total other income (expense)   203,024    

1,870,928

    238,659    (4,290,228)
                     
Net loss attributable to stockholders  $(2,630,551)  $(4,936,086)  $(26,689,316)  $

(36,127,295

)
                     
Net loss per share, basic and diluted  $(0.00)  $(0.01)  $(0.04)  $(0.08)
                     
Weighted average shares outstanding   634,379,111    506,775,985    619,973,643    476,505,278 

 

(The accompanying notes are an integral part of these condensed consolidated unaudited financial statements)

 

5

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

 

For the three months ended March 31, 2022

 

                                                   
   Series A Preferred Shares  

Series A

Preferred Par Amount

   Series C Preferred Shares  

Series C

Preferred Par Amount

   Common Shares   Par Amount  

Additional

Paid-In

Capital

  

Common Stock

Issuable

  

Accumulated

Deficit

   Total 
Balance, December 31, 2021   500,000    500    27,700    277,000    631,787,717    631,788    180,279,474    3,304,500    (129,154,171)   55,339,091 

Shares issued for services

   -    -    -    -    4,023,470    4,023    4,675,820    (3,297,000)   -    1,382,843 
Cancellation of previously issued shares   -    -    -    -    (1,000,000)   (1,000)   (2,029,000)   -    -    (2,030,000)
Shares issued for exercise of warrants   -    -    -    -    8,668,150    8,668    591,332    -    -    600,000 
Shares issued pursuant to Series C preferred share conversion   -    -    (27,700)   (277,000)   2,216,000    2,216    274,784    -    -    - 
Redemption of Series A preferred shares   (500,000)   (500)   -    -    -    -    500    -    -    - 
Dividends declared   -    -    -    -    -    -    -    -    -    - 
Net loss for the period   -    -    -    -    -    -    -    -    (2,630,551)   (2,630,551)
Balance, March 31, 2022   -    -    -    -    645,695,337    645,695    183,792,910    7,500    (131,784,722)   52,661,383 

 

For the three months ended March 31, 2021

 

   Series A Preferred Shares  

Series A

Preferred Par Amount

   Series C Preferred Shares  

Series C

Preferred Par Amount

   Common Shares   Par Amount  

Additional

Paid-In

Capital

  

Common Stock

Issuable

  

Accumulated

Deficit

   Total 
Balance, December 31, 2020   500,000    500    281,450    2,814,500    502,622,746    502,622    84,517,981    28,750    (94,408,024)   (6,543,671)
Shares issued for services   -    -    -    -    2,510,036    2,510    4,457,182    (35,000)   -    4,424,692 
Shares issued for exercise of warrants   -    -    -    -    30,716,118    30,715    500,535    -    -    531,250 
Shares issued pursuant to note conversion   -    -    -    -    1,400,779    1,400    5,326,525    -    -    5,327,925 
Shares issued pursuant to Series C preferred shares conversion   -    -    (41,250)   (412,500)   3,300,000    3,300    409,200    -    -    - 
Shares issued pursuant to share purchase agreement   -    -    -    -    4,250,000    4,250    9,227,388    -    -    9,231,638 
Share subscriptions received   -    -    -    -    -    -    -    100,000    -    100,000 
Beneficial conversion feature on convertible debt   -    -    -    -    69,252    69    271,710              271,779 
Dividends declared   -    -    -    -    -    -    -    -    (51,270)   (51,270)
Net loss for the period   -    -    -    -    -    -    -    -    (4,936,086)   (4,936,086)
Balance, March 31, 2021   500,000    500    240,200    2,402,000    544,868,931    544,866    104,710,521    93,750    (99,395,380)   8,356,257 

 

6

 

 

For the nine months ended March 31, 2022

 

                                                   
   Series A Preferred Shares  

Series A

Preferred Par Amount

   Series C Preferred Shares  

Series C

Preferred Par Amount

   Common Shares   Par Amount  

Additional

Paid-In

Capital

  

Common Stock

Issuable

  

Accumulated

Deficit

   Total 
Balance, June 30, 2021   500,000    500    207,700    2,077,000    573,267,632    573,268    121,615,738    247,750    (105,073,651)   19,440,605 
Shares issued for services   -    -    -    -    14,128,728    14,128    20,323,815    (221,500)   -    20,116,443 
Cancellation of previously issued shares   -    -    -    -    (1,000,000)   (1,000)   (2,029,000)   -    -    (2,030,000)
Shares issued for exercise of warrants   -    -    -    -    14,293,366    

14,293

    

923,207

    (18,750)   -    918,750 
Shares issued from private placement, net of issuance costs   -    -    -    -    25,389,611    25,390    36,913,261    -    -    36,938,651 
Shares issued pursuant to Series C preferred shares conversion   -    -    (207,700)   (2,077,000)   16,616,000    16,616    2,060,384    -    -    - 
Redemption of Series A preferred shares   (500,000)   (500)   -    -    -    -    500    -    -    - 
Shares issued pursuant to share purchase agreement   -    -    -    -    3,000,000    3,000    3,985,005    -    -    3,988,005 
Dividends declared   -    -    -    -    -    -    -    -    (21,755)   

(21,755

)
Net loss for the period   -    -    -    -    -    -    -    -    (26,689,316)   (26,689,316)
Balance, March 31, 2022   -    -    -    -    645,695,337    645,695    183,792,910    7,500    (131,784,722)   52,661,383 

 

For the nine months ended March 31, 2021

 

   Series A Preferred Shares  

Series A

Preferred Par Amount

   Series C Preferred Shares  

Series C

Preferred Par Amount

   Common Shares   Par Amount  

Additional

Paid-In

Capital

  

Common Stock

Issuable

  

Accumulated

Deficit

   Total 
Balance, June 30, 2020   300,000    300    -    -    365,191,213    365,191    55,452,951    2,450,000    (63,208,946)   (4,940,504)
Shares issued for services   

200,000

    

200

    -    -    33,650,036    33,650    27,038,312    -    -    27,072,162 
Shares issued for exercise of warrants   -    -    -    -    43,097,680    43,096    488,154    -    -    531,250 
Shares issued from private placement, net of issuance costs   -    -    241,450    2,414,500    60,625,000    60,625    2,389,375    (2,450,000)   -    2,414,500 
Shares issued pursuant to note conversion   -    -    40,000    400,000    22,685,750    22,685    7,890,707    -    -    8,313,392 
Shares issued pursuant to Series C preferred shares conversion   -    -    (41,250)   (412,500)   3,300,000    3,300    409,200    -    -    - 
Shares issued pursuant to share purchase agreement   -    -    -    -    16,250,000    16,250    10,415,388    -    -    10,431,638 
Shares issued pursuant to property purchase agreement   -    -    -    -    69,252    69    271,710    -    -    271,779 
Share subscriptions received   -    -    -    -    -    -    -    93,750    -    93,750 
Share purchase warrants issued   -    -    -    -    -    -    83,724    -    -    83,724 
Beneficial conversion feature on convertible debt   -    -    -    -    -    -    271,000             271,000 
Dividends declared   -    -    -    -    -    -    -    -    (59,139)   (59,139) 
Net loss for the period   -    -    -    -    -    -    -    -    (36,127,295)   (36,127,295)
Balance, March 31, 2021   500,000    500    240,200    2,402,000    544,868,931    544,866    104,710,521    93,750    (99,395,380)   8,356,257 

 

(The accompanying notes are an integral part of these condensed consolidated unaudited financial statements)

 

7

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

             
  

Nine months ended

March 31, 2022

  

Nine months ended

March 31, 2021

 
         
Operating Activities          
           
Net loss, attributable to stockholders  $(26,689,316)  $(36,127,295)
           
Adjustments to reconcile net loss to net cash used in operating activities:          
           
Accretion expense   -    2,803,429 
Depreciation expense   36,818    7,741 
Right-of-use asset amortization   38,121    - 
Net change in operating lease liability   (21,384)   - 
Change in fair value of derivative liability   -    19,655,296 
Discount on convertible notes payable   -    73,500 
Gain on settlement of debt   -    (18,683,279)
Shares issued for services   

18,086,443

    27,072,162 
Loss on impairment   186,779    - 
Settlement of mining claims in stock   (50,000)   - 
Unrealized loss on investment   5,376    - 
           
Changes in operating assets and liabilities:          
           
Prepaid expenses and deposits   

891,287

   (184,253)
Accounts payable and accrued liabilities   254,676    561,498 
Due to related parties   -    (419,303)
           
Net Cash Used in Operating Activities   

(7,261,200

)   

(5,240,504

)
           
Investing Activities          
           
Acquisition of property and equipment   

(8,805,942

)   (907,380)
Purchase of water rights   (2,172,750)   (817,000)
           
Net Cash Used In Investing Activities   

(10,978,692

)   (1,724,380)
           
Financing Activities          
           
Dividends paid   (125,700)   - 
Proceeds from issuance of convertible notes payable   -    1,350,000 
Repayment of convertible note payable   -    (1,761,397)
Repayment of note payable   -    (59,236)
Proceeds from share purchase agreement   -    10,431,638 
Proceeds from exercise of share purchase warrants   918,750    614,974 
Proceeds from issuance of common shares   43,088,006    2,508,250 
Share issuance costs   (2,161,350)   - 
           
Net Cash Provided by Financing Activities   41,719,706    13,084,229 
           
Change in Cash   23,479,814    6,119,345 
           
Cash – Beginning   12,843,502    829,924 
           
Cash – End  $

36,323,316

   $6,949,269 
           
Supplemental disclosures          
Interest paid   10,102    - 
           
Non-cash investing and financing activities          
           
Fair value of preferred shares redeemed   100    - 
Noncash construction costs in accounts payable   

1,674,888

    - 
Initial value of lease liabilities   311,570    - 
Discount on convertible debt   -    403,378 
Original issuance discount on convertible debt   -    51,000 
Beneficial conversion feature on convertible debt   -    271,000 
Common shares issued for conversion of debt   -    7,913,392 
Preferred shares issued for conversion of debt   -    400,000 
Common shares issued for conversion of preferred shares   2,216,000    412,500 
Common shares issued for acquisition of property   -    271,779 
Fair value of commission warrants issued   2,699,039    - 

 

The accompanying notes are an integral part of these condensed consolidated unaudited financial statements)

 

8

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

For the period ended March 31, 2022

(unaudited)

 

1. Organization and Nature of Operations

 

American Battery Technology Company (“ABTC”) is a startup company in the lithium-ion battery industry that is working to increase the domestic US production of battery materials, such as lithium, nickel, cobalt and manganese through its engagement in the exploration of new primary resources of battery metals, in the development and commercialization of new technologies for the extraction of these battery metals from primary resources, and in the commercialization of an internally developed integrated process for the recycling of lithium-ion batteries. Through this three-pronged approach ABTC is working to both increase the domestic production of these battery materials, and to ensure that as these materials reach their end of lives that the constituent elemental battery metals are returned to the domestic manufacturing supply chain in a closed-loop fashion.

 

The Company was incorporated under the laws of the State of Nevada on October 6, 2011 for the purpose of acquiring rights to mineral properties with the eventual objective of being a producing mineral company. We have limited operating history and have not yet generated or realized any revenues from our activities. Our principal executive offices are located at 100 Washington Ave., Suite 100, Reno, NV 89503.

 

Liquidity and Capital Resources

 

During the nine months ended March 31, 2022, the Company incurred a net loss of $26.7 million and used cash of $7.3 million for operating activities. At March 31, 2022, the Company has an accumulated deficit of $131.8 million.

 

On September 27, 2021, the Company secured net proceeds of $36,938,651 to construct and commission its lithium-ion battery recycling pilot plant, fund operations, and increase research and development activities. The Company believes its recent capital raise, and its current cash holdings will be sufficient to meet its future working capital needs. The Company cannot give assurance that it can increase its cash balances or limit its cash consumption and thus maintain sufficient cash balances for its planned operations. The Company may need to raise additional capital in the future. However, the Company cannot assure that it will be able to raise additional capital on acceptable terms, or at all. Subject to the foregoing, management believes that the Company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying financial statements.

 

These condensed consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

2. Summary of Significant Accounting Policies

 

a)Basis of Presentation and Principles of Consolidation

 

The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is June 30.

 

These condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Oroplata Exploraciones E Ingenieria SRL (inactive) and LithiumOre Corporation (formerly Lithortech Resources Inc) and ABTC AG, LLC. All inter-company accounts and transactions have been eliminated upon consolidation.

 

b)Interim Financial Statements

 

These condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The interim financial statements and notes thereto should be read in conjunction with the Company’s latest Annual Report on Form 10-K for the fiscal year ended June 30, 2021. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

 

c)Use of Estimates

 

The preparation of these condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the fair value of stock-based compensation, recoverability of long-lived assets and deferred income tax asset valuation allowances.

 

The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

9

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

For the period ended March 31, 2022

(unaudited)

 

2. Summary of Significant Accounting Policies (continued)

 

d)Loss per Share

 

The Company computes net income (loss) per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options, warrants and convertible shares. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. At March 31, 2022, the Company had 41,210,611 share purchase warrants outstanding exercisable into 41,210,611 common shares that are dilutive in nature.

 

e)Recent Accounting Pronouncements

 

In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments. The guidance removes certain accounting models that separate the embedded conversion features from the host contract for convertible instruments, requiring bifurcation only if the convertible debt feature qualifies as a derivative under ASC 815 or for convertible debt issued at a substantial premium. The ASU is effective for annual reporting periods beginning after December 15, 2021, including interim reporting periods within those annual periods, with early adoption permitted no earlier than the fiscal year beginning after December 15, 2020. The Company is currently evaluating the timing and method of adoption and the related impact of the new guidance on the earnings per share and on its financial statements.

 

In November 2021, FASB issued ASU No. 2021-10 “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.” This ASU will improve the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. ASU No. 2021-10 is effective for financial statements issued for annual periods beginning after December 15, 2021, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning July 1, 2022. The Company is currently evaluating the timing and method of adoption and the related impact of the new guidance on the earnings per share and on its financial statements.

 

3. Property and Equipment

 

   Building   Equipment   Vehicles   Land   Total 
Cost:                         
                          
Balance, June 30, 2021  $-   $99,466   $61,916   $5,340,621   $5,502,003 
Additions        38,327    -    1,571,322    1,609,649 
Construction in process   7,732,151    1,139,030    -    -    8,871,181 
Impairment loss   -    -    -    (186,779)   (186,779)
                          
Balance, March 31, 2022  $7,732,151   $1,276,823   $61,916   $6,725,164   $15,796,054 
                          
Accumulated Depreciation: