Just a few months after breaking ground on the 66-acre site of a lithium mining operation near Muskogee, Stardust Power Inc., the startup company headquartered in Connecticut reported nearly $24 million in losses for the year 2024.
The company released it financial report in recent days and said it incurred a net loss of $23.8 million or 55 cents a share for the year ended December 31, 2024.
On Friday, Stardust recorded a significant drop of shares, falling nearly 27% in the days trading.
But the loss over the past six months was even greater.
At the same time,the company announced it had entered into a non-binding agreement for a potential long-term supply deal for up to 25,000 metric tons of lithium carbonate annuallly with Sumitomo Americas. The 10-year agreement included an option to extend to 15 years.
In another major step, Stardust Power also signed an agreement with KMX Technologies for its advanced technology which granted access across the U.S., Canada and select international markets for lithium production.
Roshan Pujari, CEO and Founder of Stardust Power stated,
“As we move forward, we are focused on executing our business plan and achieving key milestones that are crucial for meeting the growing demand for secure U.S. supply chains and energy independence.”
He said the firm’s successful Nasdaq listing in 2024 was a signifiant step.
“With strong support from new hires, key partnerships, like the Agreement with Sumitomo, and strategic investments in innovative technologies, we are positioning ourselves for growth and value creation in the lithium sector.”
The company also noted that it had hired Chris Celano as Chief Operating Officer and added Martyn Buttenshaw to the Board of Directors.
- Capital raise: During the year a total of $6.4 million of capital raised consisting of $2.8 million equity and $3.5 million debt funding general operational, engineering and corporate uses
Full Year 2024 Financial Highlights
- For the year ended December 31, 2024 i.e. the current year, the Company incurred a net loss of $23.8 million and for the period from March 16, 2023 (inception date) through December 31, 2023 i.e. the prior period, the Company incurred a net loss of $3.8 million, the increase being driven by higher administrative expenses in connection with being a public company and to complement an increased scope of operations.
- Loss per share was $0.55 for the current year, compared to $0.09 for the prior period, the increase being driven primarily by higher general and administrative costs due to personnel related costs and finance charges for short term loans.
- Net cash used in operating activities totaled $9.7 million for the current year, compared to $3.0 million for the prior period , the increase driven by continued investment in operations, hiring of key talent and certain expenses related to the close of the Business Combination.
- Net cash used in investing activities was $4.8 million for the current year, compared to $0.3 million for the prior period, the increase driven by the purchase of land, engineering, initial capital investments made in the anticipated building of the refinery, strategic investments and promissory notes given to partners.
- Net cash provided by financing activities was $14.1 million during the current year, compared to $4.6 million for the prior period. The increase was driven primarily by $11.6 million in cash received from subscription agreements entered around the time of the closing of the Business Combination, short term loans and exercise of warrants. Funds were used to meet working capital needs, capital investments and to pay for some of the transaction costs related to the Business Combination.