Overview of Stardust Power’s Financial Performance

Stardust Power is a development stage battery grade lithium manufacturer that is in the process of creating capacity to manufacture battery grade lithium products, primarily for the EV market. The company has not generated any revenue to date, as it is still in the process of setting up its operations and facilities.

Key Financial Highlights:

• Stardust Power incurred a net loss of $23.8 million in 2024, up from a net loss of $3.8 million in the prior period from March 16, 2023 (inception) to December 31, 2023. This increase in net loss was primarily driven by higher general and administrative expenses as the company ramped up operations, as well as various non-cash charges related to the fair value changes in SAFE notes, convertible notes, investments, warrant liability, and earnout shares.

• General and administrative expenses increased significantly to $18.0 million in 2024, up from $2.7 million in the prior period, as the company incurred higher costs for professional services, legal and accounting, personnel, and other administrative expenses to support the growth of the business.

• The company used $9.7 million in cash for operating activities in 2024, up from $3.0 million in the prior period, as it continued to invest in setting up its operations.

• Stardust Power used $4.8 million in cash for investing activities in 2024, primarily for capital expenditures related to the construction of its refinery facility, land purchase, and investments in equity securities.

• The company generated $14.2 million in cash from financing activities in 2024, through proceeds from the business combination, PIPE financing, short-term loans, and other financing arrangements.

Strengths and Weaknesses:

Strengths:

• Stardust Power has secured a site for its planned lithium refinery facility and is making progress on the engineering and design work.
• The company has established strategic partnerships and investments to secure access to lithium brine feedstock.
• Stardust Power has received significant financial incentives from the state of Oklahoma to support its operations.

Weaknesses:

• As a development stage company, Stardust Power has not generated any revenue and has incurred significant operating losses.
• The company has a limited operating history, which makes it difficult to assess its long-term viability and growth potential.
• Stardust Power will require substantial additional capital to fund the construction and operation of its planned refinery facility.

Outlook:

Stardust Power’s future success will depend on its ability to successfully construct and commission its lithium refinery facility, secure long-term offtake agreements with customers, and manage its operating costs effectively. The company’s performance will also be influenced by broader market dynamics, such as the demand for battery-grade lithium and the competitive landscape. While the company has made progress in setting up its operations, it continues to face significant challenges as a development stage company and will need to raise additional capital to fund its growth plans.