Stardust Power Inc. reported its financial results for the first quarter of 2026, revealing a net loss of $5.2 million, an increase of 37% compared to a net loss of $3.8 million in the same period last year. The company, which has yet to generate any revenue, attributed the loss primarily to general and administrative expenses totaling $4 million, down 31% from $5.7 million in the prior year. This reduction was largely due to decreased employee-related costs and lower professional consulting fees. The weighted average shares outstanding increased significantly to approximately 9.9 million, reflecting the company's ongoing capital raising efforts.
In terms of liquidity, Stardust Power's cash reserves decreased to $1.2 million as of March 31, 2026, down from $3.5 million at the end of 2025. The company has been actively pursuing financing options, including a recent $15 million convertible debt agreement with Lind Global Asset Management and a $10 million common stock purchase agreement with B. Riley Principal Capital II. These agreements are part of Stardust's strategy to secure funding for its planned lithium refinery in Muskogee, Oklahoma, which aims to produce battery-grade lithium products.
Operationally, Stardust Power has made significant strides, including receiving an air quality construction permit from the Oklahoma Department of Environmental Quality, a critical step for the development of its refinery. The company is also in the process of negotiating supply agreements for lithium chloride feedstock, which is essential for its production plans. As of March 31, 2026, Stardust Power had entered into a non-binding letter agreement for the supply of 15,000 metric tons per annum of lithium chloride, with an initial contract term of 12 years.
Despite these developments, the company faces challenges, including a substantial accumulated deficit of $73.6 million and a stockholders' deficit of $7.9 million. The management has expressed concerns about its ability to continue as a going concern, emphasizing the need for additional capital to fund operations and meet its financial obligations. The company is currently under scrutiny from Nasdaq for not meeting the minimum market value requirement, which adds to the urgency of its capital-raising efforts.
Looking ahead, Stardust Power remains focused on establishing itself as a key player in the lithium market, driven by the increasing demand for battery-grade lithium products. The company is optimistic about its future prospects, contingent on successful financing and the timely execution of its operational plans.
About Stardust Power Inc.
Stardust Power Inc. develops a lithium refinery in Oklahoma focused on producing battery-grade lithium for electric vehicles, energy storage, and national security. It sources lithium from multiple feedstock types, including brines and produced water, aiming to enhance domestic supply and reduce reliance on imports. The company partners with industry experts, leverages government incentives, and targets the growing U.S. EV and energy storage markets through sustainable, scalable refining operations.
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