# Atlas Lithium Corp: Form 10-Q for the period ended Mar 31, 2025

- Company: [Atlas Lithium Corp](/companies/atlx.md) (CIK 1540684)
- Form: 10-Q
- Filed: 2025-05-09
- Accepted by EDGAR: May 9, 2025, 20:05 ET
- Period: 2025-03-31
- Accession: 0001641172-25-009443
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1540684/000164117225009443/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1540684/000164117225009443/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $36.4k | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $87.8k | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | −$62.7k | us-gaap:GrossProfit |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | −$9.8m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $160.3k | us-gaap:InterestExpense |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$9.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.55 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.55 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 16,501,815 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$4.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $3.2m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-03-31 | $14.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $14.7m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $60.8m | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $6.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $36.5m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-03-31 | $23.6m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 13,015 characters.

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes to those financial statements included in Item 1 of this Quarterly Report and our consolidated financial statements and notes thereto and related Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”).

This Quarterly Report includes forward-looking statements that are subject to risks, uncertainties and other factors described in the section entitled “Risk Factors” in Item 1.A. of Part II of this Report that could cause actual results could differ materially from those anticipated in these forward-looking statements. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.

### Overview

Atlas Lithium Corporation (“Atlas Lithium”, the “Company”, “we”, “us”, or “our” refer to Atlas Lithium Corporation and its consolidated subsidiaries) is a mineral exploration and development company with lithium projects and multiple lithium exploration properties. In addition, we own exploration properties in other battery minerals, including nickel, copper, rare earths, graphite, and titanium. Our current focus is the development from exploration to active mining of our hard-rock lithium project located in the state of Minas Gerais in Brazil at a well-known pegmatitic district in Brazil, which has been denominated by the government of Minas Gerais as “Lithium Valley.” We intend to mine and then process our lithium-containing ore to produce lithium concentrate (also known as spodumene concentrate), a key ingredient for the battery supply chain.

We own 53,942 hectares (539 km2) for lithium in 95 mineral rights (2 in pre-mining concession stage, 85 in exploration stage, and 8 in pre-exploration stage). We believe that we hold the largest portfolio of exploration properties for lithium in Brazil among publicly listed companies.

In addition to our lithium exploration activities, as of March 31, 2025, we also own approximately 30.51% of the shares of common stock of Atlas Critical Minerals Corporation (formerly known as Jupiter Gold Corporation), which trades on the OTC Pink Marketplace operated by OTC Markets Group, Inc. under the symbol JUPGF. Atlas Critical Minerals Corporation (“Atlas Critical Minerals”) is an exploration stage company focused on the exploration and development of mineral rights relating to certain critical minerals such as rare earths, copper, graphite, nickel, iron, gold and quartzite. The results of operations of Atlas Critical Minerals are consolidated in our financial statements under generally accepted accounting principles in the U.S. (“U.S. GAAP”). On November 19, 2024, Atlas Critical Minerals consummated a merger with our majority-owned subsidiary, Apollo Resources Corporation, with Atlas Critical Minerals continuing its corporate existence as the surviving corporation (the “Merger”). For more information about the Merger, please refer to our 2024 Form 10-K.

### Operational Update

In January 2025, we hired a Project Manager Officer and Vice President of Engineering with decades of experience in multi-billion dollar project design and implementation in the mining industry in Brazil.

In February 2025, our modular dense media separation (“DMS”) lithium processing plant, newly manufactured in South Africa and designed to produce up to 150,000 tons of lithium concentrate per annum (“tpa”), was shipped by cargo vessel to Brazil, arriving in early March 2025. The shipment consisted of 141 containers and ten bulk items comprising all components for assembly of our DMS plant; two additional containers with spare parts are expected to be shipped later in 2025. Our DMS plant represents a cornerstone of our Neves Project, designed to deliver high-quality lithium concentrate to the global market for electric vehicles (“EVs”) and renewable energy storage systems. With worldwide lithium demand growing, we are positioned to emerge as a key contributor to the sustainable energy transition. This milestone marks a significant step in our progression toward becoming the next lithium producer in Brazil’s resource-rich Lithium Valley.

During the first quarter of 2025, we made significant progress towards the advance of our Definitive Feasibility Study (“DFS”) in partnership with SGS Canada Inc. (“SGS”), a globally recognized testing, inspection, and certification company as that we engaged to prepare the DFS. The primary author of the forthcoming DFS, a senior member of SGS, is a “qualified person” for lithium under the definition of Item 1300 of Regulation S-K. During the first quarter of 2025, we also made significant progress on the application process towards permitting additional mining pit areas. As previously reported, since October 2024 we have obtained all permits needed to assemble our DMS plant, mine certain of our mining pit areas, process such material in our plant, and sell any produced commercial lithium concentrate.

### Results of Operations

### The Three Months Ended March 31, 2025, Compared to the Three Months Ended March 31, 2024

Net loss for the three months ended March 31, 2025 totaled $10.2 million, compared to net loss of $13.2 million during the three months ended March 31, 2024. The decrease is mainly due to:

- An increase in General and administrative expenses of approximately $1.7 million compared to the three months ended March 31, 2024, primarily due to: (i) $1.3 million increase in payroll expenses ($2.1 million in 2025 compared to $0.7 million in 2024) driven by team expansion as our Das Neves project progresses; and (ii) higher service costs related to marketing and investor relation activities of $0.5 million ($0.7 million in 2025 compared to $0.2 million in 2024);
- A decrease of approximately $2.0 million in stock-based compensation expense compared to the three months ended March 31, 2024, corresponding to a reduced fair value of the instruments issued due to the decreased trading price of the Company’s common stock compared to the three months ended March 31, 2024, partially offset by an increase in the number of instruments issued in the three months ended March 31, 2025 compared to the comparable period in 2024; and
- The absence of exploration cost expenses in the three months ended March 31, 2025, compared to $3.2 million in the three months ended March 31, 2024, as a result of the commencement of capitalizing exploration expenses due to the conclusion of a preliminary economic assessment of the Neves Project in the second quarter of 2024.

### Liquidity and Capital Resources

As of March 31, 2025, we had cash and cash equivalents of $14.0 million and working capital of $8.3 million.

Net cash used by operating activities totaled $4.4 million for the three months ended March 31, 2025, compared to net cash used of $6.1 million during the three months ended March 31, 2024, representing a decrease of $1.7 million. The decrease in net cash used by operating activities was mainly due to commencement of capitalizing exploration expenses, resulting in a $3.2 million positive impact to net cash used by operating activities, partially offset by an increase in general and administrative expenses of $1.7 million due to team expansion and service costs related to marketing activities.

Net cash used in investing activities totaled $4.2 million for the three months ended March 31, 2025, compared to net cash used of $6.1 million during the three months ended March 31, 2024, representing a decrease in cash used of $1.9 million or 30%. The increase reflects essentially:

- A decrease of $2.6 million in the payments made in connection with the acquisition of our lithium processing plant ($3.1 million in 2025, compared to $5.8 million in 2024) due to the finalization of the fabrication process in 2025;
- The capitalization of exploration costs incurred during the three months ended March 31, 2025 of $1.0 million. ($nil for the three months ended March 31, 2024); and
- Reduction of $0.2 million relating to the acquisition of intangible assets: $nil in the three months ended March 31, 2025, compared to $0.2 million for the same period of 2024 due to the implementation of SAP enterprise resource planning software.

Net cash provided by financing activities totaled $7.1 million for the three months ended March 31, 2025, compared to $nil during the three months ended March 31, 2024, representing an increase in cash provided of $7.1 million or 100%. The increase is due to the following financing activities that occurred during the three months ended March 31, 2025:

- The sale of an aggregate of 1,169,751 shares of our common stock pursuant to the ATM Agreement for proceeds of $6.6 million, net of commissions and fees.
- Net proceeds of $464,000 arising from the sale of shares of Atlas Critical Minerals, a consolidated subsidiary of the Company.

We have historically incurred net operating losses and have not yet generated material revenues from the sale of products or services. As a result, our primary sources of liquidity have been derived through proceeds from the sales of our equity and the equity of one of our subsidiaries. As of March 31, 2025, we had cash and cash equivalents of $14.0 million and working capital of $8.3 million, compared to cash and cash equivalents $15.5 million and working capital of $10.6 million as of December 31, 2024. We believe our cash and equivalents will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of these financial statements. However, our future short- and long-term capital requirements will depend on several factors, including but not limited to, the rate of our growth, our ability to identify areas for mineral exploration and the economic potential of such areas, the exploration and other drilling campaigns needed to verify and expand our mineral resources, the successful installation of our lithium processing facilities, and our ability to attract talent. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. If the needed financing is not available, or if the terms of financing are less desirable than we expect, we may be forced to scale back our existing operations and growth plans, which could have an adverse impact on our business and financial prospects and could raise substantial doubt about our ability to continue as a going concern.

### Currency Risk

We operate primarily in Brazil, which exposes us to currency risks. Our business activities may generate intercompany receivables or payables that are in a currency other than the functional currency of the entity. Changes in exchange rates from the time the activity occurs to the time payments are made may result in it receiving either more or less in local currency than the local currency equivalent at the time of the original activity.

Our condensed consolidated financial statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting in the condensed consolidated financial statements. Our foreign subsidiaries translate their financial results from the local currency into U.S. dollars in the following manner: (a) income statement accounts are translated at average exchange rates for the period; (b) balance sheet asset and liability accounts are translated at end of period exchange rates; and (c) equity accounts are translated at historical exchange rates. Translation in this manner affects the shareholders’ equity account referred to as the foreign currency translation adjustment account. This account exists only in the foreign subsidiaries’ U.S. dollar balance sheets and is necessary to keep the foreign subsidiaries’ balance sheets in agreement.

### Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of American (“U.S. GAAP”). Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

## Controls and procedures

As filed, 1,974 characters.

### Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the design, operation, and effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that as of March 31, 2025, our disclosure controls and procedures were effective at a reasonable assurance level.

### Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred in the quarter ended March 31, 2025 that materially affected, or would be reasonably likely to materially affect, our internal control over financial reporting.

### Limitations of the Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance that the information required to be disclosed in reports filed or submitted pursuant to the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to management, including its Principal Executive Officer and Principal Financial Officer as appropriate, to allow timely decisions regarding required disclosure. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgement in evaluating the benefits of possible controls and procedures relative to their costs.

## Risk factors

As filed, 3,850 characters.

*Investing in our common stock involves a high degree of risk. You should carefully consider the information in this Quarterly Report, including our financial statements and the related notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as any additional risk factors that may be described in our other filings with the SEC from time to time, including our Annual Report on Form 10-K for fiscal year ended December 31, 2024, before deciding whether to invest in our securities. The occurrence of any of the risks, the events or developments described below could harm our business, financial condition, operating results, and growth prospects. In such an event, the market price of our common stock could decline, and you may lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. You should consider carefully the risks and uncertainties included in this Quarterly Report and elsewhere in our Annual Report and other SEC filings before you decide to invest in our common stock.*

***Tariffs, trade restrictions and other changes in international trade policy could adversely affect our business, financial condition and results of operations.***

Materials and products imported into the EU, the United States and other countries are subject to import duties. In addition, we cannot predict whether future Brazilian, U.S. or international laws, regulations, trade remedy actions or international agreements may impose additional duties or other restrictions on exports of minerals from Brazil. In recent periods, the U.S. government has announced and, in particular following the U.S. presidential election in November 2024, may continue to announce, various import tariffs on goods imported from certain trade partners, such as the EU and China, which have resulted, and may continue to result, in reciprocal tariffs on goods exported from the United States to such trade partners. For example, on April 2, 2025, the Trump Administration announced sweeping global tariffs, which has resulted in a period of considerable volatility, trade negotiations and consideration of retaliatory trade measures. Then, on April 23, 2025, the U.S. Department of Commerce started an analysis under Section 232 of the Trade Expansion Act of 1962 (“Section 232”) to evaluate the national security impacts of reliance on foreign imports of critical minerals. Such analysis may result in the imposition of tariffs on certain critical mineral imports to the U.S., including lithium. We are unable to predict whether such tariffs would be directed primarily at China, as the global leader of critical mineral exports, or whether exporters of critical minerals from Brazil, including the Company, would be impacted. An escalating global trade war, including tariffs under Section 232 or other trade policies, such as trade restrictions between the United States and China or retaliatory trade measures by global policymakers, could harm our business and growth prospects. Trade barriers and other governmental action related to tariffs or international trade agreements around the world have the potential to decrease demand for our minerals and adversely impact the markets in which we operate. In addition, uncertainty and rapid changes in global trade policy may continue to result in general macroeconomic volatility. Our ability to mitigate the impacts of such trade policies on our business will be limited, and there can be no assurances that such mitigation efforts would be successful. As such, any changes in legislation and government policy by the U.S., China or other critical producers or consumers of critical minerals may have a material adverse effect on our business.

Filed May 9, 2025.
Source: SEC EDGAR, the filing index for accession 0001641172-25-009443. Last ingested by Listed: Oct 24, 2026, 15:13 ET. No prices; not investment advice.