Atlas Lithium Corporation

Performance Summary

Atlas Lithium Corporation reported a net loss of $31.9 million for fiscal year 2025, representing a 28.1% improvement from the $44.4 million loss in 2024. The company generated minimal revenue of $92,491, a significant 86.1% decrease from $667,131 in the prior year, primarily due to paused quartzite production in the first half of 2025. Operating expenses decreased by 28.4% to $31.6 million, driven by a $16.0 million reduction in stock-based compensation expense and a $3.0 million reduction in exploration costs, partially offset by a $6.7 million increase in general and administrative expenses. The net loss attributable to Atlas Lithium stockholders was $28.1 million, or $1.54 per share, compared to $42.2 million, or $2.91 per share, in 2024.

Revenue Analysis

The company's revenue of $92,491 represents a substantial decline from the prior year's $667,131. This decrease resulted from the company pausing production of quartzite blocks and slabs in the first half of 2025 to effect modifications to operations and address identified issues, including adopting an updated drainage plan for the quarry. The company has retained an engineering firm to prepare an updated drainage plan and expects to resume operations during the second half of 2026. Revenue in 2024 was generated from sales of 551 m³ of unprocessed blocks of quartzite and 905 m² of processed slabs produced by the company's quartzite operation. The company had four customers accounting for more than 10% of revenue each, collectively representing 88% of total revenue.

Margins & Profitability

The company reported a gross loss of $59,431 for 2025, compared to a gross profit of $265,694 in 2024, resulting in a gross margin of -64.3% versus 39.8% in the prior year. This deterioration reflects the minimal revenue generation combined with cost of revenue of $151,922. Operating loss improved to $31.7 million from $43.9 million in 2024, representing a 27.8% reduction. The improvement in operating performance was primarily due to the significant reduction in stock-based compensation expense of $16.0 million, which decreased from $25.3 million in 2024 to $9.3 million in 2025, corresponding to a reduced fair value of instruments issued due to the decreased trading price of the company's common stock.

Cash Flow & Balance Sheet

Net cash used in operating activities was $22.2 million for 2025, compared to $18.8 million in 2024, representing an 18.0% increase in cash usage. Net cash used in investing activities decreased by 67.2% to $9.0 million, primarily due to reduced payments for the lithium processing plant ($6.1 million in 2025 versus $22.4 million in 2024). Net cash provided by financing activities increased by 60.4% to $51.5 million, driven by equity offerings including $41.7 million from ATM sales and $10.0 million from a registered direct offering. The company ended the period with $35.9 million in cash and cash equivalents, net working capital of $23.1 million, total assets of $87.7 million, and total liabilities of $35.2 million. Total stockholders' equity was $52.5 million, with accumulated deficit of $171.6 million.

Outlook

The company believes its cash on hand will be sufficient to meet working capital and capital expenditure requirements for at least twelve months. However, future capital requirements will depend on several factors including growth rate, mineral exploration activities, drilling campaigns, processing facility needs, and talent acquisition. The company may need to seek additional equity or debt financing if current resources prove insufficient. Atlas Lithium continues to focus on advancing its Minas Gerais Lithium Project in Brazil, having received its dense media separation plant designed to produce 150,000 tons of lithium concentrate annually. The company has entered into an Offtake and Sales Agreement with Mitsui for the purchase of lithium concentrate, including a spot quantity of 15,000 dry metric tons and up to 60,000 dry metric tons annually for five years subject to conditions. Since the beginning of 2026, the company has received written indications of interest from multiple parties to purchase future lithium concentrate production.