FREYR Battery Reports Second Quarter 2024 Results
Key Messages:
- FREYR’s new Board of Directors and leadership team executing plan to achieve first revenues and EBITDA as soon as 2025. The Company’s top priority is to focus resources on financeable projects and inorganic opportunities that accelerate FREYR’s commercialization and pathway to cash flows.
-
FREYR is prioritizing conventional technology strategy to achieve commercialization. FREYR is advancing discussions and diligence tied to agreements to develop conventional battery technology solutions in the
U.S. andEurope under its previously unveiled FREYR 2.0 growth initiative. Within the commercial and project pipelines, the Company is focusing on less-capital intensive opportunities tied to downstream modules and packs which offer the fastest and most readily financeable paths to first revenues and cash flows.
- Maintaining strict financial discipline and balance sheet strength. The Company remains committed to preserving the strength of its debt-free balance sheet by reducing its cash burn rate. The spending reductions currently underway are expected to extend FREYR’s cash liquidity runway to approximately 36 months. As part of the Company’s commitment to value maximization, FREYR is concurrently evaluating value accretive business models and use cases for Giga Arctic.
- Evaluating inorganic opportunities. FREYR is pursuing potential inorganic opportunities to accelerate its commercialization efforts.
- Maintaining ambition to establish long-term competitive moat based on next-generation intellectual property with the 24M SemiSolidTM platform. As FREYR intensifies its near-term commercialization efforts with its conventional technology strategy, the Company is preserving the option value of its position on 24M’s SemiSolidTM platform. After hitting several production milestones at the Customer Qualification Plant (“CQP”) in 2024, the Company is exploring new funding and commercial pathways for its next-generation IP to augment its long-term competitive position.
“Following the second quarter’s production achievements at the CQP on the 24M platform, FREYR’s reconfigured Board of Directors and management team have unified the organization’s focus on rapid commercialization while we extend our liquidity runway to 36 months,” commented
Recent news
- Successful production trials at Customer Qualification Plant (“CQP”). Following several prior interim milestones at the CQP earlier this year, in June, FREYR announced that it had become the first company to complete automated production trials on the second-generation 24M SemiSolidTM manufacturing platform. While simultaneously running the anode casting, cathode casting, and merge units in automatic mode, FREYR produced more than 50 individual unit cells. FREYR is now exploring funding pathways for the long-term development of its next-generation technology stack.
-
Leadership changes to support FREYR’s commitment to accelerate path to profitability. In
June 2024 , FREYR announced the return of Co-founder and previous CEO and Executive ChairmanTom Jensen to the CEO role, and the appointments ofEvan Calio as FREYR’s CFO, and ofDaniel Barcelo as the Chairman of FREYR’s Board of Directors. FREYR’s Board and management team are focused on key initiatives, including: pursuing organic and inorganic opportunities in theU.S. andEurope to accelerate FREYR’s timelines to revenues and EBITDA and maintaining strict financial discipline to preserve the strength of the Company’s clean balance sheet and extend FREYR’s cash liquidity runway to 36 months.
Results Overview, Financing, and Liquidity
-
FREYR reported a net loss attributable to stockholders for the second quarter of 2024 of
$(27.0) million , or$(0.19) per diluted share compared to net loss for the second quarter 2023 of$(25.3) million or$(0.18) per diluted share. The increase in net loss in the second quarter of 2024 was primarily due to a$0.1 million net foreign currency transaction loss for the three months endedJune 30, 2024 , compared to a$7.7 million gain for the three months endedJune 30, 2023 , partially offset by lower operating expenses mainly from decreases in personnel costs and legal and professional fees.
-
As of
June 30, 2024 , FREYR had cash, cash equivalents, and restricted cash of$221.5 million , and no debt.
Presentation of Second Quarter 2024 Results
A presentation will be held today,
To access the conference call, listeners should contact the conference call operator at the appropriate number listed below approximately 10 minutes prior to the start of the call.
Participant conference call dial-in numbers:
The participant passcode for the call is: 4087726
A webcast of the conference call will be broadcast simultaneously at https://events.q4inc.com/attendee/250372491 on a listen-only basis. Please log in at least 10 minutes in advance to register and download any necessary software.
A replay of the webcast will be available at https://ir.freyrbattery.com/events-and-presentations/Events-Calendar/default.aspx.
About
Cautionary Statement Concerning Forward-Looking Statements
All statements, other than statements of present or historical facts included in this press release, including, without limitation,
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside FREYR’s control and are difficult to predict. Additional information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in (i) FREYR’s Registration Statement on Form S-3 filed with the
FREYR intends to use its website as a channel of distribution to disclose information which may be of interest or material to investors and to communicate with investors and the public. Such disclosures will be included on FREYR’s website in the ‘Investor Relations’ sections. FREYR also intends to use certain social media channels, including, but not limited to, Twitter and LinkedIn, as means of communicating with the public and investors about FREYR, its progress, products, and other matters. While not all the information that FREYR posts to its digital platforms may be deemed to be of a material nature, some information may be. As a result, FREYR encourages investors and others interested to review the information that it posts and to monitor such portions of FREYR’s website and social media channels on a regular basis, in addition to following FREYR’s press releases,
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) |
||||||
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|
2024 |
|
2023 |
||
|
|
|
||||
ASSETS |
||||||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
219,560 |
|
$ |
253,339 |
Restricted cash |
|
|
1,977 |
|
|
22,403 |
Prepaid assets |
|
|
868 |
|
|
2,168 |
Other current assets |
|
|
12,016 |
|
|
34,044 |
Total current assets |
|
|
234,421 |
|
|
311,954 |
|
|
|
|
|
||
Property and equipment, net |
|
|
362,641 |
|
|
366,357 |
Intangible assets, net |
|
|
2,738 |
|
|
2,813 |
Long-term investments |
|
|
21,969 |
|
|
22,303 |
Right-of-use asset under operating leases |
|
|
22,603 |
|
|
24,476 |
Other long-term assets |
|
|
9 |
|
|
4,282 |
Total assets |
|
$ |
644,381 |
|
$ |
732,185 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
14,688 |
|
$ |
18,113 |
Accrued liabilities and other |
|
|
20,495 |
|
|
30,790 |
Share-based compensation liability |
|
|
168 |
|
|
281 |
Total current liabilities |
|
|
35,351 |
|
|
49,184 |
|
|
|
|
|
||
Warrant liability |
|
|
1,817 |
|
|
2,025 |
Operating lease liability |
|
|
16,921 |
|
|
18,816 |
Other long-term liabilities |
|
|
27,443 |
|
|
27,444 |
Total liabilities |
|
|
81,532 |
|
|
97,469 |
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
||
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
1,405 |
|
|
1,397 |
Additional paid-in capital |
|
|
930,781 |
|
|
925,623 |
Accumulated other comprehensive loss |
|
|
(40,008) |
|
|
(18,826) |
Accumulated deficit |
|
|
(330,529) |
|
|
(274,999) |
Total stockholders' equity |
|
|
561,649 |
|
|
633,195 |
|
|
|
|
|
||
Non-controlling interests |
|
|
1,200 |
|
|
1,521 |
Total equity |
|
|
562,849 |
|
|
634,716 |
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
644,381 |
|
$ |
732,185 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share amounts) (Unaudited) |
||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Operating expenses: |
|
|
|
|
|
|
|
|
||||
General and administrative |
|
$ |
20,107 |
|
$ |
27,631 |
|
$ |
43,008 |
|
$ |
57,633 |
Research and development |
|
|
10,493 |
|
|
6,365 |
|
|
22,238 |
|
|
11,209 |
Share of net loss of equity method investee |
|
|
178 |
|
|
30 |
|
|
334 |
|
|
55 |
Total operating expenses |
|
|
30,778 |
|
|
34,026 |
|
|
65,580 |
|
|
68,897 |
Loss from operations |
|
|
(30,778) |
|
|
(34,026) |
|
|
(65,580) |
|
|
(68,897) |
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
||||
Warrant liability fair value adjustment |
|
|
52 |
|
|
(2,556) |
|
|
198 |
|
|
(1,151) |
Interest income, net |
|
|
1,148 |
|
|
1,755 |
|
|
2,553 |
|
|
4,758 |
Foreign currency transaction (loss) gain |
|
|
(122) |
|
|
7,711 |
|
|
1,355 |
|
|
23,759 |
Other income, net |
|
|
2,550 |
|
|
1,851 |
|
|
5,634 |
|
|
3,566 |
Total other income |
|
|
3,628 |
|
|
8,761 |
|
|
9,740 |
|
|
30,932 |
Loss before income taxes |
|
|
(27,150) |
|
|
(25,265) |
|
|
(55,840) |
|
|
(37,965) |
Income tax expense |
|
|
(11) |
|
|
(138) |
|
|
(11) |
|
|
(341) |
Net loss |
|
|
(27,161) |
|
|
(25,403) |
|
|
(55,851) |
|
|
(38,306) |
Net loss attributable to non-controlling interests |
|
|
174 |
|
|
121 |
|
|
321 |
|
|
298 |
Net loss attributable to stockholders |
|
$ |
(26,987) |
|
$ |
(25,282) |
|
$ |
(55,530) |
|
$ |
(38,008) |
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - basic and diluted |
|
|
140,107 |
|
|
139,705 |
|
|
139,905 |
|
|
139,705 |
Net loss per share attributable to stockholders - basic and diluted |
|
$ |
(0.19) |
|
$ |
(0.18) |
|
$ |
(0.40) |
|
$ |
(0.27) |
|
|
|
|
|
|
|
|
|
||||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(27,161) |
|
$ |
(25,403) |
|
$ |
(55,851) |
|
$ |
(38,306) |
Foreign currency translation adjustments |
|
|
4,862 |
|
|
(20,425) |
|
|
(21,182) |
|
|
(54,143) |
Total comprehensive loss |
|
$ |
(22,299) |
|
$ |
(45,828) |
|
$ |
(77,033) |
|
$ |
(92,449) |
Comprehensive loss attributable to non-controlling interests |
|
|
174 |
|
|
121 |
|
|
321 |
|
|
298 |
Comprehensive loss attributable to stockholders |
|
$ |
(22,125) |
|
$ |
(45,707) |
|
$ |
(76,712) |
|
$ |
(92,151) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||
|
|
Six months ended
|
||||
|
|
|
2024 |
|
|
2023 |
Cash flows from operating activities: |
|
|
|
|
||
Net loss |
|
$ |
(55,851) |
|
$ |
(38,306) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
||
Share-based compensation expense |
|
|
5,044 |
|
|
5,201 |
Depreciation and amortization |
|
|
4,578 |
|
|
732 |
Reduction in the carrying amount of right-of-use assets |
|
|
732 |
|
|
491 |
Warrant liability fair value adjustment |
|
|
(198) |
|
|
1,151 |
Share of net loss of equity method investee |
|
|
334 |
|
|
55 |
Foreign currency transaction net unrealized gain |
|
|
(1,188) |
|
|
(23,247) |
Other |
|
|
— |
|
|
(929) |
Changes in assets and liabilities: |
|
|
|
|
||
Prepaid assets and other current assets |
|
|
2,038 |
|
|
2,834 |
Accounts payable, accrued liabilities and other |
|
|
1,242 |
|
|
19,967 |
Operating lease liability |
|
|
(932) |
|
|
(2,669) |
Net cash used in operating activities |
|
|
(44,201) |
|
|
(34,720) |
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
||
Proceeds from the return of property and equipment deposits |
|
|
22,735 |
|
|
— |
Purchases of property and equipment |
|
|
(29,099) |
|
|
(128,361) |
Investments in equity method investee |
|
|
— |
|
|
(1,655) |
Purchases of other long-term assets |
|
|
— |
|
|
(1,000) |
Net cash used in investing activities |
|
|
(6,364) |
|
|
(131,016) |
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
||
Net cash provided by financing activities |
|
|
— |
|
|
— |
|
|
|
|
|
||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
|
(3,640) |
|
|
(13,520) |
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(54,205) |
|
|
(179,256) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
275,742 |
|
|
563,045 |
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
221,537 |
|
$ |
383,789 |
|
|
|
|
|
||
Supplementary disclosure for non-cash activities: |
|
|
|
|
||
Accrued purchases of property and equipment |
|
$ |
8,908 |
|
$ |
23,085 |
|
|
|
|
|
||
Reconciliation to condensed consolidated balance sheets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
219,560 |
|
$ |
334,364 |
Restricted cash |
|
|
1,977 |
|
|
49,425 |
Cash, cash equivalents, and restricted cash |
|
$ |
221,537 |
|
$ |
383,789 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240809031799/en/
Investor contact:
Senior Vice President, Investor Relations and Corporate Development
jeffrey.spittel@freyrbattery.com
Tel: (+1) 409-599-5706
Media contact:
Global Head of Communications
amy.jaick@freyrbattery.com
Tel: (+1) 973 713-5585
Source: