Fri, Jun 27, 9:22 PM (17 days ago)
**Summary of Evolution Metals LLC (EM LLC) Q1 2025 Financial Health and Performance** **Overview:** Evolution Metals LLC (EM LLC), a Delaware-based company, focuses on developing a secure global supply chain for critical minerals and materials. The company is in the process of a business combination with Welsbach Technology Metals Acquisition Corp. (WTMA), expected to result in the formation of Evolution Metals & Technologies Corp. (New EM). **Financial Performance (Q1 2025):** - **Revenue:** No revenue generated as of March 31, 2025. - **Expenses:** Total operating expenses amounted to $1,974,993, including general and administrative expenses of $1,850,749 and sales and marketing expenses of $124,244. - **Net Loss:** The company reported a net loss of $18,009,527 for the quarter, primarily due to re-measurement losses associated with derivative liabilities and allowances for credit losses. - **Cash Flow:** Net cash used in operating activities was $2,062,656, while net cash provided by financing activities was $5,335,000, mainly from the issuance of convertible preferred units. **Liquidity and Going Concern:** - **Cash Balance:** As of March 31, 2025, the company had a cash balance of $3,732,564. - **Working Capital Deficit:** The company had a net working capital deficit of $77,426,869, raising substantial doubt about its ability to continue as a going concern. **Future Operations and Impact:** - **Business Combination:** The company is in the process of a business combination with WTMA, which is expected to provide significant funding and strategic benefits. - **Capital Requirements:** The company's future capital requirements will depend on the timing and extent of its research, acquisition of processing facilities, and the consummation of the business combination. **Uncertainties and Risks:** - **Financing:** The company may need to raise additional financing if the proceeds from the business combination and other equity financing are insufficient to support its business needs. - **Market Risks:** The company is subject to potential credit risk related to business, economic, and financial market conditions. **Conclusion:** EM LLC's financial health is currently challenged by significant losses and a working capital deficit. However, the pending business combination with WTMA offers a potential path to improved liquidity and strategic growth. The company's ability to secure additional financing and successfully integrate the business combination will be critical to its future operations and financial stability.