Stardust Power (NASDAQ:SDST) said it continued to advance engineering, commercial and financing activities for its planned lithium refinery in Muskogee, Oklahoma, during the second quarter, while remaining focused on securing construction financing.
The company remains pre-revenue and reported a second-quarter net loss of $3.9 million, compared with a $3.7 million loss in the prior-year period. Chief Financial Officer Uday Devasper said the higher loss was primarily driven by financing-related costs, partly offset by favorable changes in the fair value of the company’s warrant liability.
Site Work and Project Readiness
Pujari said Stardust Power’s second-quarter work centered on activities intended to improve project readiness, reduce execution risk and support the refinery’s path toward financing and construction.
The company engaged third-party contractors to conduct geotechnical and subsurface investigations at the Muskogee site. The work is intended to identify and test locations for load-verification efforts and support detailed design and constructability planning, Pujari said.
Stardust Power has obtained key permits required for construction and commissioning, according to Pujari. He said the site work further positions the refinery for engineering, procurement and construction activities once commercial and financing milestones are achieved.
Devasper said the company has completed final major permitting and front-end engineering and design, or FEL-3, engineering. Its current investment profile is increasingly focused on targeted pre-construction and strategic development work as it prepares the refinery for construction, he said.
Commercial and Government Engagement
Stardust Power was selected as the industrial partner in a U.S. Department of Energy-funded research initiative led by Ohio University involving next-generation lithium extraction technologies. Pujari said the collaboration supports evaluation of potential future domestic feedstock sources and strengthens the company’s position in the domestic critical-minerals ecosystem.
The company also continued discussions with potential feedstock suppliers, offtake counterparties, government stakeholders and potential strategic financing partners during the quarter. Pujari said there were no material developments to announce from those discussions.
Following the end of the quarter, members of Stardust Power’s executive team traveled to Washington, D.C., to meet with Oklahoma’s congressional delegation and representatives of federal agencies. Pujari said those discussions addressed the need to expand domestic critical-mineral processing capacity and the company’s potential role in the U.S. battery-material supply chain.
The company also cited workforce, regulatory and community engagement activities in Muskogee and elsewhere in Oklahoma, including participation in Muskogee Public Service Recognition Week, the Muskogee Fair, the Environmental Federation of Oklahoma Regulatory Newsreel and workforce-development discussions.
Liquidity and Capital-Raising Facilities
Devasper said Stardust Power continued to build its access to capital during and after the second quarter. In the first quarter, the company established a $10 million equity line of credit with B. Riley Principal Capital II. It subsequently established a $5 million at-the-market equity program with B. Riley Securities during the second quarter.
- The equity line of credit had generated about $1.35 million in additional capital proceeds since its establishment.
- The company raised approximately $161,000 in gross proceeds through its at-the-market program during the quarter.
- As of the company’s 10-Q filing date, the at-the-market program had generated approximately $2.9 million in additional net proceeds after the quarter ended.
As of June 30, Stardust Power had approximately $500,000 in cash and cash equivalents, down from $3.5 million at Dec. 31, 2025. Devasper said the decline reflected operating activities and continued investment in advancing the Muskogee refinery during the first half of the year.
For the first six months of 2026, net cash used in operating activities totaled $4 million, compared with $4.5 million in the same period of 2025. Investing cash outflows were $200,000, down from $2.2 million a year earlier, which Devasper attributed primarily to a more phased and disciplined deployment of capital.
Net cash provided by financing activities was $1.3 million in the first half, compared with $8.4 million in the prior-year period. The earlier period included higher proceeds from public offerings completed in the first half of 2025, Devasper said.
Nasdaq Compliance
Stardust Power said it is actively evaluating alternatives to address continued Nasdaq listing requirements, including minimum market-value thresholds. Devasper said the company remains committed to maintaining its Nasdaq listing while acting in shareholders’ best interests.
The company did not provide forward-looking guidance during the call. Management said its near-term priorities are strengthening commercial and strategic foundations for project financing, advancing engineering and site readiness, and expanding relationships with prospective customers, suppliers, partners and government stakeholders.
About Stardust Power (NASDAQ:SDST)
Stardust Power Inc is a vertically-integrated lithium refinery that engages in producing battery-grade lithium. The company was founded in 2022 and is based in Greenwich, Connecticut.
