StockDriftsAMERICAN BATTERY TECHNOLOGY Co · ABAT · 10-K · Filed
Reports FY2026 Net Loss of $73.4M, Material Weaknesses in ICFR
Source: SEC EDGAR, accession 0001493152-26-042497
What did AMERICAN BATTERY TECHNOLOGY Co announce?
The company reported a net loss of $73.4 million for FY2026 and identified material weaknesses in internal controls over financial reporting.
AMERICAN BATTERY TECHNOLOGY Co (ABAT) reported a net loss of $73.4 million for the fiscal year ended June 30, 2026. This compares to generating revenue for the first time in the fourth quarter of fiscal year 2024. The company's accumulated deficit as of June 30, 2026, was $333.5 million, and it experienced negative cash flows from operating activities of $24.2 million for the same fiscal year. The company expects to continue incurring significant expenditures as it scales up its recycling operations and develops the Tonopah Flats Lithium Project.
The company identified material weaknesses in its internal controls over financial reporting (ICFR). While it aims to remediate these weaknesses, there is no guarantee this will be successful. The company noted that its reporting obligations as a public entity strain its management and resources, and a failure to maintain effective controls could lead to delays or inaccuracies in financial reporting, potentially impacting its stock price and attracting regulatory scrutiny.
A recently-issued federal directive, effective August 27, 2026, prohibits black mass exports unless an exception is obtained. Sales of black mass constitute a majority of the company's total revenue, and most current black mass customers are international. The directive is expected to be in effect for approximately one year. The company has requested an exception from the U.S. Department of Commerce’s Bureau of Industry and Security but cannot predict the outcome or timeframe for a decision.
The Tonopah Flats Lithium Project, one of the largest identified lithium resources in the United States, is estimated to contain 2.7 million tonnes of lithium hydroxide monohydrate (LHM) as proven and probable reserves. The projected total processing cost for manufacturing battery-grade LHM from this project is $4,307 per tonne LHM. The pre-feasibility study estimates initial capital costs of $2.0 billion and overall operating costs of $6,994 per tonne of LHM produced.
Key details
- Net loss for the fiscal year ended June 30, 2026, was $73.4 million, with an accumulated deficit of $333.5 million.
- Negative cash flows from operating activities for the fiscal year ended June 30, 2026, were $24.2 million.
- A recently-issued federal directive on August 27, 2026, prohibits black mass exports for approximately one year, which would materially affect revenue as most customers are foreign.
- The Tonopah Flats Lithium Project is estimated to have 2.7 million tonnes of LHM proven and probable reserves with a projected processing cost of $4,307 per tonne LHM.
Why it matters
This 10-K reports a periodic report at AMERICAN BATTERY TECHNOLOGY Co. The likely share-price reaction reads as negative.