FREYR Battery Reports Third Quarter 2024 Results
Results Overview, Financing, and Liquidity
-
FREYR reported a net loss attributable to stockholders for the third quarter of 2024 of
$(27.5) million , or$(0.20) per diluted share compared to a net loss for the third quarter of 2023 of$(9.8) million or$(0.07) per diluted share. The increase in net loss in the third quarter of 2024 was primarily due to a$1.1 million warrant liability fair value adjustment for the three months endedSeptember 30, 2024 , compared to$24.4 million for the three months endedSeptember 30, 2023 , and a restructuring charge of$4.5 million for the three months endedSeptember 30, 2024 compared to none for the three months endedSeptember 30, 2023 . -
As of
September 30, 2024 , FREYR had cash, cash equivalents, and restricted cash of$184.1 million , and no debt.
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CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
181,851 |
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$ |
253,339 |
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Restricted cash |
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|
2,202 |
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|
22,403 |
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Prepaid assets |
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2,838 |
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2,168 |
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Other current assets |
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12,583 |
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34,044 |
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Total current assets |
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199,474 |
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311,954 |
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Property and equipment, net |
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368,342 |
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366,357 |
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Intangible assets, net |
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2,700 |
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|
2,813 |
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Long-term investments |
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21,819 |
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22,303 |
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Right-of-use asset under operating leases |
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22,640 |
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24,476 |
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Other long-term assets |
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10 |
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4,282 |
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Total assets |
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$ |
614,985 |
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$ |
732,185 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
10,080 |
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$ |
18,113 |
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Accrued liabilities and other |
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21,254 |
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30,790 |
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Share-based compensation liability |
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19 |
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|
281 |
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Total current liabilities |
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31,353 |
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49,184 |
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Warrant liability |
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721 |
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2,025 |
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Operating lease liability |
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16,775 |
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18,816 |
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Other long-term liabilities |
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27,446 |
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27,444 |
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Total liabilities |
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76,295 |
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97,469 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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1,405 |
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1,397 |
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Additional paid-in capital |
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929,324 |
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925,623 |
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Accumulated other comprehensive loss |
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(34,035 |
) |
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(18,826 |
) |
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Accumulated deficit |
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(358,004 |
) |
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(274,999 |
) |
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Total stockholders' equity |
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538,690 |
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633,195 |
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Non-controlling interests |
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— |
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1,521 |
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Total equity |
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538,690 |
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634,716 |
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Total liabilities and equity |
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$ |
614,985 |
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$ |
732,185 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share amounts) (Unaudited) |
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Three months ended
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Nine months ended
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2024 |
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2023 |
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2024 |
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2023 |
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Operating expenses: |
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General and administrative |
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$ |
18,515 |
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$ |
27,772 |
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$ |
61,386 |
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$ |
85,405 |
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Research and development |
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8,616 |
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7,086 |
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30,854 |
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18,295 |
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Restructuring charge |
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4,507 |
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— |
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|
4,644 |
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— |
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Share of net loss of equity method investee |
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150 |
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|
153 |
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|
484 |
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|
208 |
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Total operating expenses |
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31,788 |
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35,011 |
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97,368 |
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103,908 |
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Loss from operations |
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(31,788 |
) |
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(35,011 |
) |
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(97,368 |
) |
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(103,908 |
) |
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Other income (expense): |
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Warrant liability fair value adjustment |
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1,096 |
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24,399 |
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1,294 |
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23,248 |
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Interest income, net |
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1,074 |
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|
1,284 |
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3,627 |
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6,042 |
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Foreign currency transaction (loss) gain |
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(110 |
) |
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(3,213 |
) |
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|
1,245 |
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20,546 |
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Other income, net |
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|
2,172 |
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|
2,537 |
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7,806 |
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6,103 |
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Total other income |
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4,232 |
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25,007 |
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13,972 |
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55,939 |
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Loss before income taxes |
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(27,556 |
) |
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(10,004 |
) |
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(83,396 |
) |
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(47,969 |
) |
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Income tax expense |
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— |
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— |
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|
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(11 |
) |
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|
(341 |
) |
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Net loss |
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(27,556 |
) |
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|
(10,004 |
) |
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(83,407 |
) |
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(48,310 |
) |
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Net loss attributable to non-controlling interests |
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81 |
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|
219 |
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|
402 |
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|
517 |
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Net loss attributable to stockholders |
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$ |
(27,475 |
) |
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$ |
(9,785 |
) |
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$ |
(83,005 |
) |
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$ |
(47,793 |
) |
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Weighted average shares outstanding - basic and diluted |
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140,490 |
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139,705 |
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|
140,102 |
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|
139,705 |
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Net loss per share attributable to stockholders - basic and diluted |
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$ |
(0.20 |
) |
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$ |
(0.07 |
) |
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$ |
(0.59 |
) |
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$ |
(0.34 |
) |
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Other comprehensive (loss) income: |
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Net loss |
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$ |
(27,556 |
) |
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$ |
(10,004 |
) |
|
$ |
(83,407 |
) |
|
$ |
(48,310 |
) |
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Foreign currency translation adjustments |
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|
5,973 |
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6,134 |
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(15,209 |
) |
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(48,009 |
) |
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Total comprehensive loss |
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$ |
(21,583 |
) |
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$ |
(3,870 |
) |
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$ |
(98,616 |
) |
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$ |
(96,319 |
) |
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Comprehensive loss attributable to non-controlling interests |
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81 |
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|
219 |
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|
402 |
|
|
|
517 |
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Comprehensive loss attributable to stockholders |
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$ |
(21,502 |
) |
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$ |
(3,651 |
) |
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$ |
(98,214 |
) |
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$ |
(95,802 |
) |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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Nine months ended
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2024 |
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2023 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(83,407 |
) |
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$ |
(48,310 |
) |
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Adjustments to reconcile net loss to cash used in operating activities: |
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Share-based compensation expense |
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6,449 |
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|
7,859 |
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Depreciation and amortization |
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|
7,028 |
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|
1,922 |
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Reduction in the carrying amount of right-of-use assets |
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|
1,282 |
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|
1,005 |
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Warrant liability fair value adjustment |
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|
(1,294 |
) |
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(23,248 |
) |
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Share of net loss of equity method investee |
|
|
484 |
|
|
|
208 |
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Foreign currency transaction net unrealized gain |
|
|
(1,075 |
) |
|
|
(19,346 |
) |
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Other |
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— |
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|
(929 |
) |
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Changes in assets and liabilities: |
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Prepaid assets and other current assets |
|
|
13 |
|
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|
1,672 |
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Accounts payable, accrued liabilities and other |
|
|
(429 |
) |
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|
28,401 |
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Operating lease liability |
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|
(1,626 |
) |
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(3,212 |
) |
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Net cash used in operating activities |
|
|
(72,575 |
) |
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(53,978 |
) |
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Cash flows from investing activities: |
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Proceeds from the return of property and equipment deposits |
|
|
22,735 |
|
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|
— |
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Proceeds from property related grants |
|
|
— |
|
|
|
3,500 |
|
|
Purchases of property and equipment |
|
|
(34,683 |
) |
|
|
(168,811 |
) |
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Investments in equity method investee |
|
|
— |
|
|
|
(1,655 |
) |
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Purchases of other long-term assets |
|
|
— |
|
|
|
(1,000 |
) |
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Net cash used in investing activities |
|
|
(11,948 |
) |
|
|
(167,966 |
) |
|
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|
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Cash flows from financing activities: |
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Payment for non-controlling interest |
|
|
(4,130 |
) |
|
|
— |
|
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Net cash used in financing activities |
|
|
(4,130 |
) |
|
|
— |
|
|
|
|
|
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Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
|
(3,036 |
) |
|
|
(13,240 |
) |
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Net decrease in cash, cash equivalents, and restricted cash |
|
|
(91,689 |
) |
|
|
(235,184 |
) |
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Cash, cash equivalents, and restricted cash at beginning of period |
|
|
275,742 |
|
|
|
563,045 |
|
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Cash, cash equivalents, and restricted cash at end of period |
|
$ |
184,053 |
|
|
$ |
327,861 |
|
|
|
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Supplementary disclosure for non-cash activities: |
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Accrued purchases of property and equipment |
|
$ |
6,133 |
|
|
$ |
11,187 |
|
|
|
|
|
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Reconciliation to condensed consolidated balance sheets: |
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|
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|
||||
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Cash and cash equivalents |
|
$ |
181,851 |
|
|
$ |
299,419 |
|
|
Restricted cash |
|
|
2,202 |
|
|
|
28,442 |
|
|
Cash, cash equivalents, and restricted cash |
|
$ |
184,053 |
|
|
$ |
327,861 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105739786/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:
