Li-Cycle Holdings Corp (NYSE:LICY), an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America, stock fell 3.05% (As on September 15, 11:28:40 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 22. Net loss for the quarter was approximately $27.5 million, compared to a net loss of approximately $6.9 million in the third quarter 2021. This loss for the current quarter included $8.6 million of fair value gains on financial instruments. Adjusted EBITDA loss for the quarter was $31.6 million, compared to $5.3 million in the third quarter 2021. This was largely driven by higher operating expenses described above, which was directly related to the growth and expansion of the Company’s Spoke & Hub network. Adjusted EBITDA was also unfavorably impacted by a non-cash FMV pricing adjustment of $(7.3) million, versus an FMV gain of $0.4 million in the third quarter 2021. Additionally, non-cash stock-based compensation increased to $4.0 million, from $0.3 million in the third quarter 2021

Meanwhile, during the quarter, the company continued to advance development at our Rochester Hub, which is on track to start commissioning in stages in 2023. The company also took deliberate steps to optimize operations at the new Spoke facilities in Arizona and Alabama, which are the first of their kind to process entire EV and stationary energy storage battery packs without the need for dismantling. In order to make these improvements, the company temporarily slowed the pace of operations at the Arizona Spoke and the company has moderately postponed the start-up of operations at the Alabama Spoke. This has pushed out achievement of our FY2022 production target for those operations by one to two quarters and resulted in lower black mass production during the third quarter than originally planned. Revenues from product sales and recycling services of $5.4 million increased from $1.3 million in the third quarter of 2021.

LICY in the third quarter of FY 22 has reported the adjusted loss per share of 16 cents, missing the analysts’ estimates for the adjusted loss per share of 12 cents. The company had reported the adjusted revenue of ($2) million in the third quarter of FY 22, missing the analysts’ estimates for revenue of $10.62 million. This included an unfavorable non-cash fair market value (FMV) pricing adjustment of $(7.3) million relating to prior-period black mass sales. In the third quarter of 2021, total revenue was $1.7 million, which included a FMV benefit of $0.4 million.