0001728205-22-000040.txt : 20221104 0001728205-22-000040.hdr.sgml : 20221104 20221104171335 ACCESSION NUMBER: 0001728205-22-000040 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 64 CONFORMED PERIOD OF REPORT: 20220930 FILED AS OF DATE: 20221104 DATE AS OF CHANGE: 20221104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Piedmont Lithium Inc. CENTRAL INDEX KEY: 0001728205 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 364996461 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38427 FILM NUMBER: 221363053 BUSINESS ADDRESS: STREET 1: 42 E CATAWBA STREET CITY: BELMONT STATE: NC ZIP: 28012 BUSINESS PHONE: (704) 461-8000 MAIL ADDRESS: STREET 1: 42 E CATAWBA STREET CITY: BELMONT STATE: NC ZIP: 28012 FORMER COMPANY: FORMER CONFORMED NAME: Piedmont Lithium Ltd DATE OF NAME CHANGE: 20180116 10-Q 1 pll-20220930.htm 10-Q pll-20220930
false2022Q3000172820512/310.01P3Y100017282052022-01-012022-09-3000017282052022-10-28xbrli:shares00017282052022-09-30iso4217:USD00017282052021-12-31iso4217:USDxbrli:shares00017282052022-07-012022-09-3000017282052021-07-012021-09-3000017282052021-01-012021-09-3000017282052020-12-3100017282052021-09-300001728205us-gaap:CommonStockMember2021-12-310001728205us-gaap:AdditionalPaidInCapitalMember2021-12-310001728205us-gaap:RetainedEarningsMember2021-12-310001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001728205us-gaap:CommonStockMember2022-01-012022-03-310001728205us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-3100017282052022-01-012022-03-310001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001728205us-gaap:RetainedEarningsMember2022-01-012022-03-310001728205us-gaap:CommonStockMember2022-03-310001728205us-gaap:AdditionalPaidInCapitalMember2022-03-310001728205us-gaap:RetainedEarningsMember2022-03-310001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100017282052022-03-310001728205us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-3000017282052022-04-012022-06-300001728205us-gaap:CommonStockMember2022-04-012022-06-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001728205us-gaap:RetainedEarningsMember2022-04-012022-06-300001728205us-gaap:CommonStockMember2022-06-300001728205us-gaap:AdditionalPaidInCapitalMember2022-06-300001728205us-gaap:RetainedEarningsMember2022-06-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000017282052022-06-300001728205us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001728205us-gaap:CommonStockMember2022-07-012022-09-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001728205us-gaap:RetainedEarningsMember2022-07-012022-09-300001728205us-gaap:CommonStockMember2022-09-300001728205us-gaap:AdditionalPaidInCapitalMember2022-09-300001728205us-gaap:RetainedEarningsMember2022-09-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001728205us-gaap:CommonStockMember2020-12-310001728205us-gaap:AdditionalPaidInCapitalMember2020-12-310001728205us-gaap:RetainedEarningsMember2020-12-310001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001728205us-gaap:CommonStockMember2021-01-012021-03-310001728205us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100017282052021-01-012021-03-310001728205us-gaap:RetainedEarningsMember2021-01-012021-03-310001728205us-gaap:CommonStockMember2021-03-310001728205us-gaap:AdditionalPaidInCapitalMember2021-03-310001728205us-gaap:RetainedEarningsMember2021-03-310001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100017282052021-03-310001728205us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000017282052021-04-012021-06-300001728205us-gaap:CommonStockMember2021-04-012021-06-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001728205us-gaap:RetainedEarningsMember2021-04-012021-06-300001728205us-gaap:CommonStockMember2021-06-300001728205us-gaap:AdditionalPaidInCapitalMember2021-06-300001728205us-gaap:RetainedEarningsMember2021-06-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000017282052021-06-300001728205us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001728205us-gaap:CommonStockMember2021-07-012021-09-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001728205us-gaap:RetainedEarningsMember2021-07-012021-09-300001728205us-gaap:CommonStockMember2021-09-300001728205us-gaap:AdditionalPaidInCapitalMember2021-09-300001728205us-gaap:RetainedEarningsMember2021-09-300001728205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001728205pll:PiedmontLithiumLimitedMember2021-05-17xbrli:pure00017282052021-05-170001728205us-gaap:MiningPropertiesAndMineralRightsMember2022-09-300001728205us-gaap:MiningPropertiesAndMineralRightsMember2021-12-310001728205us-gaap:MineDevelopmentMember2022-09-300001728205us-gaap:MineDevelopmentMember2021-12-310001728205us-gaap:LandMember2022-09-300001728205us-gaap:LandMember2021-12-310001728205us-gaap:LeaseholdImprovementsMember2022-09-300001728205us-gaap:LeaseholdImprovementsMember2021-12-310001728205us-gaap:WellsAndRelatedEquipmentAndFacilitiesMember2022-09-300001728205us-gaap:WellsAndRelatedEquipmentAndFacilitiesMember2021-12-310001728205us-gaap:ConstructionInProgressMember2022-09-300001728205us-gaap:ConstructionInProgressMember2021-12-310001728205pll:SayonaMiningLimitedMember2022-09-300001728205pll:SayonaMiningLimitedMember2022-07-012022-09-300001728205pll:SayonaQuebecIncMember2022-09-300001728205pll:SayonaMiningLimitedMemberpll:SayonaQuebecIncMember2022-09-300001728205pll:NorthAmericanLithiumMiningMemberpll:SayonaQuebecIncMember2022-09-300001728205pll:SayonaQuebecIncMember2022-09-30utr:t0001728205pll:SayonaQuebecIncMember2022-09-300001728205pll:AtlanticLithiumMember2022-09-300001728205pll:AtlanticLithiumMember2022-09-300001728205pll:SayonaMiningLimitedMember2022-06-300001728205pll:SayonaQuebecIncMember2022-06-300001728205pll:AtlanticLithiumMember2022-06-300001728205pll:SayonaQuebecIncMember2022-07-012022-09-300001728205pll:AtlanticLithiumMember2022-07-012022-09-300001728205pll:SayonaMiningLimitedMember2021-06-300001728205pll:SayonaQuebecIncMember2021-06-300001728205pll:AtlanticLithiumMember2021-06-300001728205pll:SayonaMiningLimitedMember2021-07-012021-09-300001728205pll:SayonaQuebecIncMember2021-07-012021-09-300001728205pll:AtlanticLithiumMember2021-07-012021-09-300001728205pll:SayonaMiningLimitedMember2021-09-300001728205pll:SayonaQuebecIncMember2021-09-300001728205pll:AtlanticLithiumMember2021-09-300001728205pll:SayonaMiningLimitedMember2021-12-310001728205pll:SayonaQuebecIncMember2021-12-310001728205pll:AtlanticLithiumMember2021-12-310001728205pll:SayonaMiningLimitedMember2022-01-012022-09-300001728205pll:SayonaQuebecIncMember2022-01-012022-09-300001728205pll:AtlanticLithiumMember2022-01-012022-09-300001728205pll:SayonaMiningLimitedMember2020-12-310001728205pll:SayonaQuebecIncMember2020-12-310001728205pll:AtlanticLithiumMember2020-12-310001728205pll:SayonaMiningLimitedMember2021-01-012021-09-300001728205pll:SayonaQuebecIncMember2021-01-012021-09-300001728205pll:AtlanticLithiumMember2021-01-012021-09-300001728205pll:SayonaMiningLimitedMember2022-07-012022-09-300001728205pll:SayonaQuebecIncMember2022-07-012022-09-300001728205pll:AtlanticLithiumMember2022-07-012022-09-300001728205pll:SayonaMiningLimitedMember2021-07-012021-09-300001728205pll:SayonaQuebecIncMember2021-07-012021-09-300001728205pll:SayonaMiningLimitedMember2022-01-012022-09-300001728205pll:SayonaQuebecIncMember2022-01-012022-09-300001728205pll:AtlanticLithiumMember2022-01-012022-09-300001728205pll:SayonaMiningLimitedMember2021-01-012021-09-300001728205pll:SayonaQuebecIncMember2021-01-012021-09-300001728205us-gaap:FairValueInputsLevel3Member2022-09-300001728205us-gaap:FairValueInputsLevel3Member2021-12-310001728205pll:GhanaProjectMember2022-09-300001728205srt:MinimumMemberpll:GhanaProjectMember2022-01-012022-09-300001728205pll:GhanaProjectMembersrt:MaximumMember2022-01-012022-09-300001728205pll:GhanaProjectPhaseOneMember2022-09-300001728205pll:GhanaProjectPhaseTwoMember2022-09-300001728205pll:GhanaProjectMember2022-07-012022-09-300001728205pll:GhanaProjectMember2022-01-012022-09-300001728205pll:GhanaProjectMemberus-gaap:SubsequentEventMember2022-10-012022-11-040001728205pll:StockIncentivePlanMember2021-03-012021-03-310001728205pll:StockIncentivePlanMember2022-09-300001728205pll:ExplorationAndMineDevelopmentCostsMember2022-07-012022-09-300001728205pll:ExplorationAndMineDevelopmentCostsMember2021-07-012021-09-300001728205pll:ExplorationAndMineDevelopmentCostsMember2022-01-012022-09-300001728205pll:ExplorationAndMineDevelopmentCostsMember2021-01-012021-09-300001728205us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001728205us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001728205us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001728205us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-12-310001728205us-gaap:PerformanceSharesMember2021-12-310001728205us-gaap:RestrictedStockUnitsRSUMember2020-12-310001728205us-gaap:PerformanceSharesMember2020-12-310001728205us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001728205us-gaap:PerformanceSharesMember2022-01-012022-03-310001728205us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001728205us-gaap:PerformanceSharesMember2021-01-012021-03-310001728205us-gaap:RestrictedStockUnitsRSUMember2022-03-310001728205us-gaap:PerformanceSharesMember2022-03-310001728205us-gaap:RestrictedStockUnitsRSUMember2021-03-310001728205us-gaap:PerformanceSharesMember2021-03-310001728205us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001728205us-gaap:PerformanceSharesMember2022-04-012022-06-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001728205us-gaap:PerformanceSharesMember2021-04-012021-06-300001728205us-gaap:RestrictedStockUnitsRSUMember2022-06-300001728205us-gaap:PerformanceSharesMember2022-06-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-06-300001728205us-gaap:PerformanceSharesMember2021-06-300001728205us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001728205us-gaap:PerformanceSharesMember2022-07-012022-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001728205us-gaap:PerformanceSharesMember2021-07-012021-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2022-09-300001728205us-gaap:PerformanceSharesMember2022-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-09-300001728205us-gaap:PerformanceSharesMember2021-09-300001728205us-gaap:PerformanceSharesMember2022-01-012022-09-300001728205us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001728205us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001728205us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001728205us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001728205us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001728205us-gaap:PerformanceSharesMember2022-07-012022-09-300001728205us-gaap:PerformanceSharesMember2021-07-012021-09-300001728205us-gaap:PerformanceSharesMember2022-01-012022-09-300001728205us-gaap:PerformanceSharesMember2021-01-012021-09-30pll:segment0001728205pll:LedgerHoldingsPtyLtdMember2021-01-012021-09-300001728205us-gaap:SubsequentEventMember2022-10-31
`
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM 10-Q
__________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ________
Commission File Number 001-38427
___________________________________________________________
pll-20220930_g1.jpg

PIEDMONT LITHIUM INC.
(Exact name of Registrant as specified in its Charter)
_________________________________________________________________________________________
Delaware36-4996461
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
42 E Catawba Street
Belmont, North Carolina
28012
(Address of principal executive offices)(Zip Code)
    
Registrant’s telephone number, including area code: (704) 461-8000
___________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.0001 per sharePLL
The Nasdaq Capital Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒     No ☐
1

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒     No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act.     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act).
Yes No ☒
As of October 28, 2022, there were 18,010,228 shares of the Registrant’s common stock outstanding.
2

Table of Contents
3

Part I - Financial Information
Item 1.    Financial Statements.
PIEDMONT LITHIUM INC.
CONSOLIDATED BALANCE SHEETS

(Unaudited)
September 30,
2022
December 31,
2021
Assets
Cash and cash equivalents$117,588,915 $64,244,983 
Other current assets3,362,103 2,514,602 
Total current assets120,951,018 66,759,585 
Property, plant and mine development, net64,342,373 40,055,354 
Other non-current assets15,728,575 4,561,122 
Equity method investments in unconsolidated affiliates96,833,438 58,872,710 
Total assets$297,855,404 $170,248,771 
Liabilities and Stockholders’ Equity
Accounts payable$1,959,376 $1,262,744 
Accrued expenses4,664,569 5,425,498 
Current portion of long-term debt458,572 762,189 
Other current liabilities119,584 99,587 
Total current liabilities7,202,101 7,550,018 
Long-term debt, net of current portion244,700 914,147 
Operating lease liabilities, net of current portion1,210,230  
Deferred tax liabilities3,814,015  
Total liabilities12,471,046 8,464,165 
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock; $0.0001 par value, 100,000,000 shares authorized; 17,994,576, and 15,894,395, shares issued and outstanding at September 30, 2022, and December 31, 2021, respectively
1,799 1,589 
Additional paid-in capital380,140,254 255,131,836 
Accumulated deficit(94,754,054)(92,683,000)
Accumulated other comprehensive loss(3,641)(665,819)
Total stockholders’ equity285,384,358 161,784,606 
Total liabilities and stockholders’ equity$297,855,404 $170,248,771 
The accompanying notes are an integral part of these unaudited financial statements.
4

PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Operating expenses:
Exploration and mine development costs
$434,177 $5,563,028 $1,484,889 $12,865,364 
General and administrative expenses7,160,482 4,818,647 20,199,852 11,506,078 
Total operating expenses7,594,659 10,381,675 21,684,741 24,371,442 
Loss from equity method investments in unconsolidated affiliates(2,002,617)(410,538)(6,547,499)(475,164)
Loss from operations(9,597,276)(10,792,213)(28,232,240)(24,846,606)
Other income (expense):
Interest income373,204  373,492 3,830 
Interest expense(20,640)(59,051)(97,250)(191,966)
Loss from foreign currency exchange(35,469)(10,095)(60,118)(35,627)
Gain on dilution of equity method investments in unconsolidated affiliates29,367,281  29,367,281  
Total other income (expense)29,684,376 (69,146)29,583,405 (223,763)
Income (loss) before taxes20,087,100 (10,861,359)1,351,165 (25,070,369)
Income tax expense3,422,219  3,422,219  
Net income (loss)$16,664,881 $(10,861,359)$(2,071,054)$(25,070,369)
Basic net income (loss) per weighted-average share$0.93 $(0.68)$(0.12)$(1.64)
Diluted net income (loss) per weighted-average share$0.92 $(0.68)$(0.12)$(1.64)
Basic weighted-average number of shares outstanding17,965,858 15,863,027 17,343,309 15,242,261 
Diluted weighted-average number of shares outstanding18,081,486 15,863,027 17,343,309 15,242,261 
The accompanying notes are an integral part of these unaudited financial statements.
5

PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)


Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Net income (loss)$16,664,881 $(10,861,359)$(2,071,054)$(25,070,369)
Other comprehensive income (loss):
Equity method investments income in other comprehensive income (loss), net of tax(1)
811,301 105,263 662,178 73,975 
 Other comprehensive income, net of tax811,301 105,263 662,178 73,975 
Comprehensive income (loss)$17,476,182 $(10,756,096)$(1,408,876)$(24,996,394)
__________________________
(1)Equity method investments income in other comprehensive income (loss) is presented net of tax expense of $391,796 for the three and nine months ended September 30, 2022. We did not reflect a tax expense during the three and nine months ended September 30, 2021 because we had a full tax valuation allowance in impacted jurisdictions during these periods.


The accompanying notes are an integral part of these unaudited financial statements.
6

PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
20222021
Cash flows from operating activities:
Net loss$(2,071,054)$(25,070,369)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense2,643,433 1,851,805 
Loss from equity method investments in unconsolidated affiliates6,547,499 475,164 
Gain on dilution of equity method investments in unconsolidated affiliates(29,367,281) 
Deferred taxes3,422,219  
Depreciation32,475 6,485 
Noncash lease expense72,253 113,914 
Loss on sale of property, plant and mine development11,542  
Unrealized loss on investment51,969  
Changes in operating assets and liabilities:
Other assets(959,175)(2,374,222)
Operating lease liabilities(68,819)(115,551)
Accounts payable270,493 576,344 
Accrued expenses and other current liabilities(2,627,020)2,547,983 
Net cash used in operating activities(22,041,466)(21,988,447)
Cash flows from investing activities:
Capital expenditures(21,891,950)(22,352,553)
Advances on Ewoyaa Lithium project (Ghana)(9,815,418) 
Purchases of equity investments in unconsolidated affiliates(14,086,972)(58,940,518)
Net cash used in investing activities(45,794,340)(81,293,071)
Cash flows from financing activities:
Proceeds from issuances of common stock, net of issuance costs122,059,476 114,087,891 
Proceeds from exercise of stock options93,326 773,251 
Principal payments on long-term debt(973,064)(563,466)
Net cash provided by financing activities121,179,738 114,297,676 
Net increase in cash53,343,932 11,016,158 
Cash and cash equivalents at beginning of period64,244,983 70,936,994 
Cash and cash equivalents at end of period$117,588,915 $81,953,152 
Supplemental disclosure of cash flow information:
Noncash capital expenditures in accounts payable and accrued expenses$2,226,692 $ 
Cash paid for interest97,250 191,966 
Capitalized stock-based compensation212,393  
Noncash acquisitions of mining interests financed by sellers 241,002 
The accompanying notes are an integral part of these unaudited financial statements.
7

PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Common StockAdditional
Paid-In
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive Income
(Loss)
Total
Stockholders’
Equity
SharesAmount
December 31, 202115,894,395 $1,589 $255,131,836 $(92,683,000)$(665,819)$161,784,606 
Issuance of common stock, net2,012,500 201 122,059,275 — — 122,059,476 
Stock-based compensation, net of forfeitures— — (85,908)— — (85,908)
Shares issued for exercise/vesting of share-based compensation awards22,631 3 (3)— —  
Equity method investments income in other comprehensive income (loss), net of tax— — — — 193,644 193,644 
Net loss— — — (9,154,632)— (9,154,632)
March 31, 202217,929,526 1,793 377,105,200 (101,837,632)(472,175)274,797,186 
Stock-based compensation, net of forfeitures— — 1,591,231 — — 1,591,231 
Shares issued for exercise/vesting of stock-based compensation awards35,337 3 93,323 — — 93,326 
Equity method investments loss in other comprehensive income (loss), net of tax— — — — (342,767)(342,767)
Net loss— — — (9,581,303)— (9,581,303)
June 30, 202217,964,863 1,796 378,789,754 (111,418,935)(814,942)266,557,673 
Stock-based compensation, net of forfeitures— — 1,350,503 — — 1,350,503 
Shares issued for exercise/vesting of stock-based compensation awards29,713 3 (3)— —  
Equity method investments income in other comprehensive income (loss), net of tax— — — — 811,301 811,301 
Net income— — — 16,664,881 — 16,664,881 
September 30, 202217,994,576 $1,799 $380,140,254 $(94,754,054)$(3,641)$285,384,358 
The accompanying notes are an integral part of these unaudited financial statements.
8

PIEDMONT LITHIUM INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Common StockAdditional
Paid-In
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive Income
(Loss)
Total
Stockholders’
Equity
SharesAmount
December 31, 202013,914,731 $1,375 $137,249,496 $(57,125,635)$(796,565)$79,328,671 
Issuance of common stock, net1,750,000 175 114,087,716 — — 114,087,891 
Stock-based compensation— — 406,488 — — 406,488 
Shares issued for exercise/vesting of share-based compensation awards13,356 — 30,452 — — 30,452 
Net loss— — — (6,576,038)— (6,576,038)
March 31, 202115,678,087 1,550 251,774,152 (63,701,673)(796,565)187,277,464 
Stock-based compensation— — 611,808 — — 611,808 
Shares issued for exercise/vesting of stock-based compensation awards81,446 — 185,699 — — 185,699 
Conversion of performance rights5,000 — — — — — 
Equity method investments loss in other comprehensive loss, net of tax— — — — (31,288)(31,288)
Net loss— — — (7,632,972)— (7,632,972)
June 30, 202115,764,533 1,550 252,571,659 (71,334,645)(827,853)180,410,711 
Stock-based compensation— — 833,509 — — 833,509 
Shares issued for exercise/vesting of stock-based compensation awards104,862 10 557,090 — — 557,100 
Equity method investments income in other comprehensive loss, net of tax— — — — 105,263 105,263 
Net loss— — — (10,861,359)— (10,861,359)
September 30, 202115,869,395 $1,560 $253,962,258 $(82,196,004)$(722,590)$171,045,224 
The accompanying notes are an integral part of these unaudited financial statements.
9

PIEDMONT LITHIUM INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.DESCRIPTION OF COMPANY
Nature of Business
Piedmont Lithium Inc. (“Piedmont Lithium,” “we,” “our,” “us,” or “Company”) is a United States (“U.S.”) based, development stage company advancing a multi-asset, integrated lithium business in support of a clean energy economy and America’s national energy security. We plan to supply lithium hydroxide to the electric vehicle and battery manufacturing supply chains in North America by processing spodumene concentrate produced from assets we own or have an economic interest. Our projects include our proposed Carolina Lithium and Tennessee Lithium projects in the southeastern U.S. and strategic investments in lithium assets in Canada and Ghana. Subject to obtaining permits and approvals, we plan to develop our operations with the aim of our equity method investments bringing spodumene concentrate production online in 2023 (Quebec) and 2024 (Ghana), and our lithium hydroxide production online in 2025 (Tennessee) and 2026 (North Carolina). Our investments in Canada should provide the opportunity for near-term revenue through production and offtake of spodumene concentrate. Offtake agreements from our international investments are expected to supply spodumene concentrate to our Tennessee Lithium project for conversion to lithium hydroxide, while our proposed Carolina Lithium project is a fully integrated spodumene-to-hydroxide operation in North Carolina. These diversified operations should enable us to play a pivotal role in supporting America’s energy independence and the electrification of transportation and energy storage.
Change in Fiscal Year-End
Effective January 1, 2022, we changed our fiscal year end from June 30 to December 31. The six-month period from July 1, 2021, to December 31, 2021, served as a transition period. Our fiscal year for 2022 commenced on January 1, 2022, and will end on December 31, 2022. See our Transition Report on Form 10-KT (“Transition Report”) filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2022.
Basis of Presentation
The accompanying unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and in conformity with the rules and regulations of the SEC applicable to interim financial information. The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Unless otherwise indicated, all references to “$” are to U.S. dollars, and all references to “AUD” are to Australian dollars. Our reporting currency is U.S. dollars. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. Therefore, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-KT for the six-month transition period ended December 31, 2021. These unaudited consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are considered necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the year ending December 31, 2022, for any other interim period or for any other future fiscal year.
Certain prior period amounts have been reclassified to conform with the current period presentation including reclassification of the Company’s proportional share of income in equity investments into operating income. See Note 3—Equity Method Investments in Unconsolidated Affiliates for further discussion.
Piedmont Lithium acquired all of the issued and outstanding ordinary shares of Piedmont Lithium Pty Ltd (formerly named Piedmont Lithium Limited) (“Piedmont Australia”), our Australian predecessor and currently a wholly-owned subsidiary, pursuant to a Scheme of Arrangement under Australian law, which was approved by Piedmont Australia’s shareholders on February 26, 2021 and by the Supreme Court of Western Australia on May 5, 2021 (collectively referred to as “Redomiciliation”). As part of the Redomiciliation, we changed our place of domicile from Australia to the state of Delaware in the U.S., effective May 17, 2021.
Piedmont Australia’s ordinary shares were listed on the Australian Securities Exchange (“ASX”), and Piedmont Australia’s American Depositary Shares (“ADSs”), each representing 100 of Piedmont Australia’s ordinary shares, were traded on the Nasdaq Capital Market (“Nasdaq”). Following the approval of the Redomiciliation, we moved the primary listing of our shares of common stock from
10

the ASX to Nasdaq and retained an ASX listing via Chess Depositary Interests (“CDIs”), each representing 1/100th of a share of common stock of Piedmont Lithium Inc.
All issued and outstanding shares of our common stock and per share amounts have been retroactively adjusted in these unaudited consolidated financial statements to reflect the 100:1 ratio and share consolidation. Shares of our common stock issued in connection with the Redomiciliation trade on Nasdaq under the symbol “PLL.”
Risk and Uncertainties
We are subject to a number of risks similar to those of other companies of similar size in our industry, including but not limited to, the success of our exploration and development activities, success of our equity investments in international projects, construction and permitting delays, the need for additional capital or financing to fund operating losses, competition from substitute products and services from larger companies, protection of proprietary technology, litigation, and dependence on key individuals.
We have accumulated deficits of $94.8 million, and $92.7 million as of September 30, 2022 and December 31, 2021, respectively. We have incurred net losses and utilized cash in operations since inception, and we expect to incur future additional losses. We have cash available on hand and believe this cash will be sufficient to fund our operations and meet our obligations as they come due for at least one year from the date these unaudited consolidated financial statements are issued. In the event our cash requirements change during the next twelve months, management has the ability and commitment to make corresponding changes to our operating expenses as necessary. Until commercial production is achieved from our planned operations, we will continue to incur operating and investing net cash outflows associated with, among other things, funding capital projects, development stage technical studies, permitting activities associated with our projects, funding our commitments in Quebec and Ghana, maintaining and acquiring exploration properties and undertaking ongoing exploration activities. Our long-term success is dependent upon our ability to successfully raise additional capital or financing or enter into strategic partnership opportunities. Our long-term success is also dependent upon our ability to obtain certain permits and approvals, develop our planned portfolio of projects, earn revenues, and achieve profitability.
Our unaudited consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions, and allocations that affect amounts reported in the consolidated financial statements and related notes. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets, fair value of stock-based compensation awards, income tax uncertainties, valuation of deferred tax assets, contingent assets and liabilities, legal claims, asset impairments and environmental remediation. Actual results could differ due to the uncertainty inherent in the nature of these estimates.
We base our estimates and assumptions on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Significant Accounting Policies
Exploration and Mine Development Costs
We incur costs in resource exploration, evaluation and development during the different phases of our resource development projects. Exploration costs incurred before the declaration of proven and probable reserves, which primarily include exploration, drilling, engineering, metallurgical test-work, and compensation for employees associated with exploration activities, are expensed as incurred. We have also expensed as incurred engineering costs attributable to the evaluation of land for our future lithium hydroxide conversion plants and spodumene concentrator, development project management costs, feasibility studies and other project expenses that do not qualify for capitalization. After proven and probable reserves are declared, exploration and mine development costs necessary to bring the properties to commercial capacity, increase their capacity or extend their useful life are capitalized.
11

Mine Development
Mine development assets include engineering and metallurgical test-work, drilling and other related costs to delineate an ore body, and the removal of overburden to initially expose an ore body at open pit surface mines. Costs incurred before mineral resources are classified as proven and probable reserves are expensed and recorded to “Exploration and mine development costs” in our statements of operations. Capitalization of mine development project costs begins once mineral resources are classified as proven and probable reserves. Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting mineralized material to proven and probable reserves. All other drilling and related costs are expensed as incurred. The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as pre-stripping costs. Pre-stripping costs will be capitalized during the development of an open pit mine. The removal, production, and sale of de minimis salable materials may occur during the development phase of an open pit mine and are assigned incremental mining costs related to the removal of that material. Mine development assets will be depleted using the units-of-production method based on estimated recoverable metric tons in proven and probable reserves. To the extent that these costs benefit an entire ore body, they will be depleted over the estimated life of the ore body. As of September 30, 2022, we had no projects in the production phase, and we did not record depletion expense for any of our mine development assets.
Equity Method Investments in Unconsolidated Affiliates
We apply the equity method of accounting for investments when we have significant influence, but not controlling interest in the investee. Judgment regarding the level of influence over each equity method investment includes key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions, operational decision-making authority, and material intercompany transactions. Under this method of accounting, our proportionate share of the net income (loss) resulting from these investments is reported in “Loss from operations” in the consolidated statements of operations since the activities of the investees are closely aligned with, and a critical part of, our operations. The carrying value of our equity method investments is reported as “Equity method investments in unconsolidated affiliates” in our consolidated balance sheets. For all equity method investments, we record our share of an investee’s income or loss on a one quarter lag. We evaluate material events occurring during the quarter lag to determine whether the effects of such events should be disclosed in our financial statements. We classify distributions received from equity method investments using the cumulative earnings approach on our consolidated statements of cash flows. A change in our proportionate share of an investee’s equity resulting from issuance of common shares or in-substance common shares by the investee to third parties is recorded as a gain or loss in our consolidated statements of operations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 323, “Investments-Equity Method and Joint Ventures” (Subtopic 10-40-1). We assess investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. If the decline in value is considered to be other than temporary, the investment is written down to its estimated fair value, which establishes a new cost basis in the investment. We did not record any such impairment charges for any periods presented.
For a further discussion of our significant accounting policies, see Note 2—Summary of Significant Accounting Policies within Part II, Item 8 of our Transition Report for the six-month period ended December 31, 2021.
Recently Issued and Adopted Accounting Pronouncements
We have considered the applicability and impact of all recently issued accounting pronouncements and have determined that they were either not applicable or were not expected to have a material impact on our unaudited consolidated financial statements.
12

2.PROPERTY, PLANT AND MINE DEVELOPMENT
Property, plant and mine development, net, is presented in the following table:
September 30,
2022
December 31,
2021
Mining interests$54,955,840 $39,303,043 
Mine development2,461,131  
Land688,829 688,829 
Leasehold improvements276,421  
Facilities and equipment548,698 107,248 
Construction in process5,456,049  
Property, plant and mine development64,386,968 40,099,120 
Accumulated depreciation(44,595)(43,766)
Property, plant and mine development, net$64,342,373 $40,055,354 
Depletion of mining interests and mine development assets does not commence until the assets are placed in service. As of September 30, 2022, we have not recorded depletion expense for any of our mining interests or mine development assets.
Mining interests and mine development costs relate to our Carolina Lithium project. The vast majority of our construction in process relates to capitalized costs associated with our Tennessee Lithium and Carolina Lithium projects.
Depreciation expense is included in “General and administrative expenses” in our consolidated statements of operations. Depreciation expense was $21,267 and $3,733 for the three months ended September 30, 2022 and 2021, respectively, and $32,475 and $6,485 for the nine months ended September 30, 2022 and 2021, respectively.
3.EQUITY METHOD INVESTMENTS IN UNCONSOLIDATED AFFILIATES
We apply the equity method to investments when we have the ability to exercise significant influence over the operational decision-making authority and financial policies of the investee. We account for our existing investments in Atlantic Lithium Limited (“Atlantic Lithium”), Sayona Mining Limited (“Sayona”), and Sayona Quebec Inc. (“Sayona Quebec”), a subsidiary of Sayona and Piedmont Lithium, as equity method investments.
We continue to evaluate operational developments and the impact of the anticipated significant expansion of the operations of our existing equity method investments. As discussed below, Atlantic Lithium’s completion of a prefeasibility study for the Ewoyaa Lithium project (“Ewoyaa”), along with the anticipated restart of Sayona Quebec’s North American Lithium operations, was impactful to the consideration of how we most appropriately reflect our proportional share of income (loss) from our three existing equity method investments. Offtake agreements with our equity method investments are expected to supply the majority of the spodumene concentrate to our wholly-owned Tennessee Lithium project for conversion to lithium hydroxide, or re-sell into the market. Based on our analysis, it was determined that our equity method investments have evolved into a critical, integrated part of our ongoing operations. We have determined this justifies a more meaningful and transparent presentation of our proportional share of income (loss) in our equity method investments as a component of our operating income. As a result, we have reclassified our share of income (loss) in equity method investments to operating income for all periods presented.
Our share of the income (loss) from Atlantic Lithium, Sayona and Sayona Quebec is recorded on a one quarter lag within “Loss from operations” in our consolidated statements of operations. Below is a summary of our equity method investments as of September 30, 2022.
Sayona
We own an equity interest of approximately 14% in Sayona, an Australian company publicly listed on the ASX, and have formed a strategic partnership with Sayona to explore, evaluate, develop, mine, and ultimately produce spodumene concentrate in Quebec, Canada.
13

Sayona completed equity offerings of its shares of common stock to raise additional capital. The issuances of additional shares reduced our ownership interest in Sayona. These shares were issued at a valuation greater than the carrying value of our ownership interest, which was diluted by not participating in these equity offerings. As a result, we recognized a noncash gain of $29.4 million in the three and nine months ended September 30, 2022. The additional share issuances were made during Sayona’s fiscal year ended June 30, 2022. We recorded the cumulative gain in “Gain on dilution of equity investments in unconsolidated affiliates” in our consolidated statements of operations. Certain portions of the gain related to prior periods which were determined by management to be immaterial.
Sayona Quebec
We own an equity interest of 25% in Sayona Quebec for the purpose of furthering our investment and strategic partnership in Quebec, Canada with Sayona. The remaining 75% equity interest is held by Sayona. Sayona Quebec holds a 100% interest in the existing lithium mining operations of North American Lithium, the Authier Lithium project and the Tansim Lithium project.
We have a long-term supply agreement with Sayona Quebec, under which Sayona Quebec will supply Piedmont Lithium the greater of 113,000 metric tons per year or 50% of spodumene concentrate production on a life-of-mine basis. Purchases of spodumene concentrate by Piedmont Lithium from Sayona Quebec are subject to market pricing with a price floor of $500 per metric ton and a price ceiling of $900 per metric ton.
In addition to spodumene mining and concentrate production, the North American Lithium complex also includes a partially completed lithium carbonate refinery, which was developed by a prior operator of North American Lithium. In the event Piedmont Lithium and Sayona decide to jointly construct and operate a lithium conversion plant through their jointly owned entity, Sayona Quebec, then spodumene concentrate produced from North American Lithium would be preferentially delivered to that conversion plant upon commencement of conversion operations. Any remaining spodumene concentrate not delivered to a jointly owned conversion plant would first be delivered to Piedmont Lithium up to Piedmont Lithium’s offtake right and then to third parties. Any decision to construct jointly-owned lithium conversion capacity must be agreed by both parties.
Atlantic Lithium
We own an equity interest of approximately 9% in Atlantic Lithium, an Australian company publicly listed on the Alternative Investment Market of the London Stock Exchange and the ASX, and have formed a strategic partnership with Atlantic Lithium to explore, evaluate, mine, develop, and ultimately produce spodumene concentrate in Ghana. We have the right to acquire a 50% equity interest in Atlantic Lithium’s Ghanaian-based lithium portfolio companies (collectively, “Atlantic Lithium Ghana”), which are wholly-owned subsidiaries of Atlantic Lithium, through current and future staged investments.
We have a long-term supply agreement whereby Atlantic Lithium will sell 50% of spodumene concentrate produced in Ghana for the life of the mine to Piedmont Lithium, subject to us electing to exercise our option to fund construction costs of the Ewoyaa project. See Note 5—Other Assets.
The following tables summarize the carrying amounts, including changes therein, of our equity method investments:
Three Months Ended September 30, 2022
Sayona
Sayona QuebecAtlantic LithiumTotal
Balance at beginning of period$17,117,606 $33,047,198 $14,068,805 $64,233,609 
Additional investments 4,032,068  4,032,068 
Gain (loss) on dilution of equity method investments (1)
29,401,727  (34,446)29,367,281 
Loss from equity method investments(228,393)(453,986)(1,320,238)(2,002,617)
Share of income (loss) from equity method investments included in other comprehensive income (loss)1,336,618  (133,521)1,203,097 
Balance at end of period$47,627,558 $36,625,280 $12,580,600 $96,833,438 
__________________________
(1)     Gain (loss) on dilution of equity method investments relates to: (i) issuances of additional shares of Sayona, as discussed above, which reduced our ownership interest in Sayona, and as a result, we recognized a noncash gain of $29.4 million and (ii) the exercise of certain Atlantic Lithium stock options and share grants which resulted in a reduction of our ownership in Atlantic Lithium.
14

Three Months Ended September 30, 2021
Sayona
Sayona QuebecAtlantic LithiumTotal
Balance at beginning of period$11,194,905 $5,067,593 $ $16,262,498 
Additional investments7,183,273 19,449,545 15,949,288 42,582,106 
Loss from equity method investments(374,151)(36,387) (410,538)
Share of income (loss) from equity method investments included in other comprehensive loss105,263   105,263 
Balance at end of period$18,109,290 $24,480,751 $15,949,288 $58,539,329 
Nine Months Ended September 30, 2022
Sayona
Sayona QuebecAtlantic LithiumTotal
Balance at beginning of period$18,256,488 $25,215,851 $15,400,371 $58,872,710 
Additional investments1,075,921 13,011,051  14,086,972 
Gain (loss) on dilution of equity method investments (1)
29,401,727  (34,446)29,367,281 
Loss from equity method investments(2,507,711)(1,646,382)(2,393,406)(6,547,499)
Share of income (loss) from equity method investments included in other comprehensive loss1,401,133 44,760 (391,919)1,053,974 
Balance at end of period$47,627,558 $36,625,280 $12,580,600 $96,833,438 
__________________________
(1) Gain (loss) on dilution of equity method investments relates to: (i) issuances of additional shares of Sayona, as discussed above, which reduced our ownership interest in Sayona, and as a result, we recognized a noncash gain of $29.4 million and (ii) the exercise of certain Atlantic Lithium stock options and share grants which resulted in a reduction of our ownership in Atlantic Lithium.
Nine Months Ended September 30, 2021
Sayona
Sayona QuebecAtlantic LithiumTotal
Balance at beginning of period$ $ $ $ 
Additional investments18,474,092 24,517,138 15,949,288 58,940,518 
Loss from equity method investments(438,777)(36,387) (475,164)
Share of income (loss) from equity method investments included in other comprehensive loss73,975   73,975 
Balance at end of period$18,109,290 $24,480,751 $15,949,288 $58,539,329 
As of September 30, 2022
Sayona
Sayona QuebecAtlantic Lithium
Fair value of equity investments where market values from publicly traded entities are readily available$178,254,197 Not publicly traded$28,440,000 
15

The following tables present summarized financial information included in our share of income (loss) from equity method investments noted above for our significant equity investments. The balances below were compiled from information provided to us by each investee and are presented in accordance with U.S. GAAP:
Three Months Ended September 30,
20222021
Sayona
Sayona QuebecAtlantic Lithium
Sayona
Sayona Quebec
Revenue$ $ $ $ $ 
Net loss from operations(1,584,963)(1,815,945)(13,458,082)(1,880,157)(145,550)
Other comprehensive income (loss), net of tax9,275,626  (1,361,066)528,961  
Comprehensive income (loss)7,690,663 (1,815,945)(14,819,148)(1,351,196)(145,550)
Nine Months Ended September 30,
20222021
Sayona
Sayona QuebecAtlantic Lithium
Sayona
Sayona Quebec
Revenue$ $ $ $ $ 
Net loss from operations(15,397,751)(6,585,527)(24,287,222)(2,204,911)(145,550)
Other comprehensive income (loss), net of tax9,666,593 179,041 (3,968,514)371,737  
Comprehensive loss(5,731,158)(6,406,486)(28,255,736)(1,833,174)(145,550)
4.FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
We follow FASB ASC Topic 820, “Fair Value Measurement and Disclosure,” which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows:
Level 1:Quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2:Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived from observable market data by correlation or other means.
Level 3:Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement.
Measurement of Fair Value
Our financial instruments consist primarily of cash and cash equivalents, investments in equity securities, trade and other payables, and long-term debt as follows:
Long-term debt—As of September 30, 2022 and December 31, 2021, we had $0.7 million and $1.7 million, respectively, of principal debt outstanding associated with seller financed loans. The carrying value of our long-term debt approximates its estimated fair value.
Investments in equity securities—As of September 30, 2022 and December 31, 2021, we had $0.5 million and $0.5 million, respectively, of investments in equity securities which are recorded at fair value based on Level 3 inputs. See Note 5—Other Assets.
16

Other financial instruments—The carrying amounts of cash and cash equivalents and trade and other payables approximate fair value due to their short-term nature.
Level 3 activity was not material for all periods presented.
5.OTHER ASSETS
Other current assets consisted of the following:
September 30,
2022
December 31,
2021
Investments in equity securities$461,542 $513,511 
Prepaid assets and other receivables2,900,561 2,001,091 
Total other current assets$3,362,103 $2,514,602 
As of September 30, 2022, our investments in equity securities consisted of common shares in Ricca Resources Limited (“Ricca”), which we acquired as part of a spin-out of Ricca from Atlantic Lithium. Ricca is a private company focused on gold exploration in Africa.
Other non-current assets consisted of the following:
September 30,
2022
December 31,
2021
Advances on exploration project$14,125,591 $4,310,173 
Other non-current assets275,115 190,030 
Operating lease right-of-use assets1,327,869 60,919 
Total other non-current assets$15,728,575 $4,561,122 
We have a strategic partnership with Atlantic Lithium that includes Atlantic Lithium Ghana. Under our partnership, we entered into a project agreement to acquire a 50% equity interest in Atlantic Lithium Ghana as part of two phases of future staged investments by Piedmont Lithium in the Atlantic Lithium’s Ewoyaa project over an approximate period of three to four years.
We are currently in phase one, which allows us to acquire a 22.5% equity interest in Atlantic Lithium Ghana by funding approximately $17 million for exploration and definitive feasibility study expenses. Our future equity interest ownership related to phase one is contingent upon completing a definitive feasibility study and making an election to proceed with phase two. Phase two allows us to acquire an additional 27.5% equity interest in Atlantic Lithium Ghana upon completion of funding approximately $70 million for capital costs associated with the construction of the Ewoyaa project. The current estimated capital costs of the Ewoyaa project, as defined by Atlantic Lithium’s prefeasibility study in September 2022, is approximately $125 million. Any cost savings or cost overruns from the initial commitment for each phase will be shared equally between Piedmont Lithium and Atlantic Lithium. Upon completion of phases one and two, we will have a total equity interest of 50% in Atlantic Lithium Ghana. Phase one funding costs are included in “Other non-current assets” in our consolidated balance sheets as an advance on our expected future investments in the Ewoyaa project.
Our maximum exposure to a loss as a result of our involvement in the Ewoyaa project is limited to the total funding paid by Piedmont Lithium to Atlantic Lithium. As of September 30, 2022, we did not own an equity interest in Atlantic Lithium Ghana. We have made advanced payments primarily related to the Ewoyaa project, totaling $2.7 million and $9.8 million during the three and nine months ended September 30, 2022, respectively, and additional advance payments totaling $1.7 million have been made beginning October 1, 2022 through the date of this filing.
During the quarter ended September 30, 2022, we entered into a new lease with a term of 7 years for our corporate offices in Belmont, North Carolina. Accordingly, we recorded a right-of-use asset and lease liability of $1.3 million as of the commencement date of the lease.
17

6.EQUITY
We are authorized to issue up to 100,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share. We have no outstanding shares of preferred stock.
As of September 30, 2022, we had $369.2 million remaining under our shelf registration statement, which expires on September 24, 2024.
7.STOCK-BASED COMPENSATION
Stock Incentive Plans
In March 2021, our Board adopted, in connection with the Redomiciliation, the Piedmont Lithium Inc. Stock Incentive Plan (“Incentive Plan”). The Incentive Plan authorized the grant of stock options, stock appreciation rights, restricted stock units and restricted stock, any of which may be performance-based. Our Compensation Committee determines the exercise price for stock options and the base price of stock appreciation rights, which may not be less than the fair market value of our common stock on the date of grant. Generally, stock options or stock appreciation rights vest after three years of service and expire at the end of ten years. Performance rights awards (“PRAs”) vest upon achievement of certain pre-established performance targets that are based on specified performance criteria over a performance period. As of September 30, 2022, 2,293,130 shares of common stock were available for issuance under our Incentive Plan.
We include the expense related to stock-based compensation in the same financial statement line item as cash compensation paid to the same employee. Additionally, and if applicable, we capitalize personnel expenses attributable to the development of our mine and construction of our plants, including stock-based compensation expenses. We recognize share-based award forfeitures as they occur.
Stock-based compensation related to all stock-based incentive plans is presented in the following table:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Components of stock-based compensation:
Stock-based compensation$1,358,391 $833,509 $3,714,477 $1,851,805 
Stock-based compensation forfeitures(7,888) (858,651) 
Stock-based compensation, net of forfeitures
$1,350,503 $833,509 $2,855,826 $1,851,805 
Presentation of stock-based compensation in the unaudited consolidated financial statements:
Exploration and mine development costs$131,382 $336,375 $133,382 $730,316 
General and administrative expenses1,129,146 497,134 2,510,051 1,121,489 
Stock-based compensation expense, net of forfeitures(1)
1,260,528 833,509 2,643,433 1,851,805 
Capitalized stock-based compensation(2)
89,975  212,393  
Stock-based compensation, net of forfeitures
$1,350,503 $833,509 $2,855,826 $1,851,805 
__________________________
(1)For the three and nine months ended September 30, 2022 and 2021, we did not reflect a tax benefit associated with stock-based compensation expense in our consolidated statements of operations because we had a full tax valuation allowance in impacted jurisdictions during these periods. As such, the table above does not reflect the tax impacts of stock-based compensation expense.
(2)Capitalized stock-based compensation relates to direct labor costs associated with our Carolina Lithium and Tennessee Lithium projects and is included in “Property, plant and mine development, net” in our consolidated balance sheets.
18

A summary of activity relating to our share-based awards is presented in the following table:
20222021
Stock Option AwardsRestricted Stock UnitsPerformance Rights AwardsStock Option AwardsRestricted Stock UnitsPerformance Rights Awards
January 1272,504 51,277 30,000 443,694  65,000 
Granted135,957 17,437 29,120 50,000   
Exercised, surrendered or vested(15,000)(14,285) (18,906)  
Forfeited or expired(19,458)(17,209)    
March 31374,003 37,220 59,120 474,788  65,000 
Granted58,949 7,972 10,348 33,004 36,745  
Exercised, surrendered or vested(37,500)(9,219) (115,288) (5,000)
Forfeited or expired(719)     
June 30394,733 35,973 69,468 392,504 36,745 60,000 
Granted 3,255 10,000    
Exercised, surrendered or vested(36,250)(1,250) (120,000)