Stardust Power Q1 Net Loss $5.23M; Substantial Doubt on Going Concern
Stardust Power Inc. reported a net loss of $5,234,692 for the first quarter of 2026, an increase from $3,809,700 in the same period last year. The company's cash balance significantly decreased to $1,235,564, and it disclosed substantial doubt about its ability to continue as a going concern due to insufficient cash and ongoing operational costs. To address liquidity, Stardust Power secured new financing agreements, including a $15,000,000 convertible debt facility with Lind Global Asset Management and a $10,000,000 common stock purchase agreement with B. Riley Principal Capital II, in addition to a post-quarter-end at-market sales agreement for up to $5,000,000 in common stock. The company also entered into several non-binding letter agreements for the supply of lithium chloride for its planned refinery.
Key Highlights
- Stardust Power reported a net loss of $5,234,692 for the three months ended March 31, 2026, compared to $3,809,700 in the prior year period.
- The company had $1,235,564 in unrestricted cash as of March 31, 2026, down from $3,480,151 at December 31, 2025.
- Accumulated deficit reached $73,577,276 and stockholders' deficit was $7,867,665 as of March 31, 2026.
- Stardust Power entered a $15,000,000 senior secured convertible debt financing agreement with Lind Global Asset Management XIII LLC, drawing $3,792,500 net proceeds.
- The company secured a Common Stock Purchase Agreement with B. Riley Principal Capital II, LLC, with the right to sell up to $10,000,000 of common stock, having issued 465,120 shares for $1,220,015 net proceeds.
- Subsequent to quarter-end, an At Market Issuance Sales Agreement was signed with B. Riley Securities, Inc. to sell up to $5,000,000 in common stock.
- Non-binding letter agreements for lithium chloride supply include 6,000 metric tons per annum from Prairie Lithium, 7,500 metric tons per annum from Mandrake Resources, and 15,000 metric tons per annum from a strategic counterparty.
- The company is involved in a legal proceeding with H.C. Wainwright & Co., LLC regarding an alleged breach of an engagement agreement.