FREYR Battery (NYSE: FREY) (“FREYR” or the “Company”), a developer of clean, next-generation battery cell production capacity, today reported financial results for the fourth quarter and full year of 2022.
Highlights of the fourth quarter 2022 and subsequent events:
“The fourth quarter was punctuated by our successful secondary equity offering and the launch of our expansion into the U.S., which we have since decided to accelerate further,” remarked Tom Einar Jensen, FREYR’s Co-Founder and CEO. “Turning our attention to the road immediately ahead, we are announcing the operational startup of the CQP on March 28th, which represents the inaugural launch of clean, next-generation battery technology production on the 24M platform at GWh scale marking a fundamental milestone for the SemiSolid™ Technology platform.”
“We expect 2023 to be a truly exciting and transformative year for FREYR and our 24M licensing partners as we move into live battery production. Our teams are working tirelessly to achieve key milestones that include, among other things, producing testable batteries from the CQP, continuing the construction of Giga Arctic, running several financing processes in parallel, developing new strategic relationships, and bringing initial production from Giga America online as fast as possible. We ended the year with a nearly identical cash balance to what we started with in 2022 and have in the meantime made strong progress across our entire value chain with an opportunity set in front of us which is more robust than ever.” concluded Jensen.
Business Update
Results Overview, Financing, and Liquidity
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones over the next 12 months:
Presentation of Fourth Quarter and Full Year 2022 Results
A presentation will be held today, February 27, 2023, at 7:30 am Eastern Standard Time (1:30 pm Central European Time) to discuss financial results for the fourth quarter and full year 2022. The results and presentation material will be available for download at https://ir.freyrbattery.com.
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:
United Kingdom: 020 3936 2999
United States: 1 (646) 664 1960
All other locations: +44 20 3936 2999
The participant passcode for the call is: 649807
A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/freyr-battery-q4-2022-earnings-conference-call 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 FREYR Battery
FREYR Battery aims to provide industrial scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce green battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has commenced building the first of its planned factories in Mo i Rana, Norway and announced potential development of industrial scale battery cell production in the U.S. and Vaasa, Finland. FREYR intends to deliver a minimum of 50 GWh of battery cell capacity by 2025, over 100 GWh of annual capacity by 2028, and over 200 GWh of annual capacity by 2030. To learn more about FREYR, please visit www.freyrbattery.com.
Cautionary Statement Concerning Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, including, without limitation, statements regarding the development, construction, timeline, capacity, and other usefulness of FREYR’s CQP, Giga Arctic, Giga America, and other planned or future production facilities or Gigafactories (collectively, the “FREYR Facilities”); Giga America’s initial battery cell production module of approximately 34 GWh; the progress and expected outcomes of FREYR’s industrialization plans and capital formation; FREYR’s targeted start and ramp up of sample cell production in 1Q 2023; the progress and development of FREYR’s strategic and financial partnerships; the progress and development of FREYR’s joint ventures and partnerships; exploration of or progress toward additional debt or equity capital raises, including securing financial support to fund FREYR’s planned expansion; FREYR’s ability to advance strategic initiatives to further its aspirations to become an industrial partner of choice in the clean battery space; FREYR’s commitment to accelerating its development plans in the U.S. based on the financial incentives attendant to the proposed Inflation Reduction Act or from any state or local governments; the expectation that the sample cells from the CQP will accelerate customer dialogues, fortify FREYR’s competitive position, demonstrate the scalability of the 24M manufacturing process, and satisfy key technical performance milestones; the progress of discussions that will further FREYR’s ambition to be a scaling partner of choice for leading parallel technology platforms that target distinct and complimentary end market applications across the ESS, passenger EV, and commercial electric mobility spaces; FREYR’s intention to maximize sustainable long-term shareholder value and enhance its competitive position; FREYR’s intention to establish decarbonized and localized supply chains; the development of 24M Technologies, Inc.’s technologies and their use in the FREYR Facilities; and the attainment of operational milestones are forward looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause 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 U.S. Securities and Exchange Commission (the “SEC”) on September 1, 2022 and (ii) FREYR's Annual Report on Form 10-K for the year ended December 31, 2022 that is expected to be filed with the SEC on February 27, 2023, available on the SEC’s website at www.sec.gov.
Except as otherwise required by applicable law, FREYR disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Should underlying assumptions prove incorrect, actual results and projections could differ materially from those expressed in any forward-looking statements.
FREYR BATTERY CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) | ||||||||
|
| As of December 31, | ||||||
|
| 2022 |
| 2021 | ||||
ASSETS | ||||||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 443,063 |
|
| $ | 563,956 |
|
Restricted cash |
|
| 119,982 |
|
|
| 1,671 |
|
Prepaid assets |
|
| 8,293 |
|
|
| 15,882 |
|
Other current assets |
|
| 8,117 |
|
|
| 1,282 |
|
Total current assets |
|
| 579,455 |
|
|
| 582,791 |
|
|
|
|
|
| ||||
Property and equipment, net |
|
| 210,777 |
|
|
| 21,062 |
|
Intangible assets, net |
|
| 2,963 |
|
|
| — |
|
Convertible note |
|
| 19,954 |
|
|
| 20,231 |
|
Equity method investments |
|
| — |
|
|
| 2,938 |
|
Right-of-use asset under operating leases |
|
| 14,538 |
|
|
| — |
|
Other long-term assets |
|
| 11 |
|
|
| 11 |
|
Total assets |
| $ | 827,698 |
|
| $ | 627,033 |
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 6,765 |
|
| $ | 3,813 |
|
Accrued liabilities and other |
|
| 51,446 |
|
|
| 19,773 |
|
Share-based compensation liability |
|
| 4,367 |
|
|
| 2,211 |
|
Total current liabilities |
|
| 62,578 |
|
|
| 25,797 |
|
|
|
|
|
| ||||
Warrant liability |
|
| 33,849 |
|
|
| 49,124 |
|
Operating lease liability |
|
| 11,144 |
|
|
| — |
|
Long-term share-based compensation liability |
|
| — |
|
|
| 6,627 |
|
Total liabilities |
|
| 107,571 |
|
|
| 81,548 |
|
|
|
|
|
| ||||
Commitments and contingencies |
|
|
|
| ||||
|
|
|
|
| ||||
Shareholders' equity |
|
|
|
| ||||
Ordinary share capital, no par value, 245,000 ordinary shares authorized as of both December 31, 2022 and December 31, 2021; 139,854 and 139,705 ordinary shares issued and outstanding, respectively, as of December 31, 2022; and 116,854 ordinary shares both issued and outstanding as of December 31, 2021 |
|
| 139,854 |
|
|
| 116,854 |
|
Additional paid-in capital |
|
| 772,602 |
|
|
| 533,418 |
|
Treasury stock |
|
| (1,041 | ) |
|
| — |
|
Accumulated other comprehensive income (loss) |
|
| 9,094 |
|
|
| (524 | ) |
Accumulated deficit |
|
| (203,054 | ) |
|
| (104,263 | ) |
Total ordinary shareholders' equity |
|
| 717,455 |
|
|
| 545,485 |
|
|
|
|
|
| ||||
Non-controlling interests |
|
| 2,672 |
|
|
| — |
|
Total equity |
|
| 720,127 |
|
|
| 545,485 |
|
|
|
|
|
| ||||
Total liabilities and equity |
| $ | 827,698 |
|
| $ | 627,033 |
|
FREYR BATTERY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In Thousands, Except per Share Amounts) | ||||||||||||||||
|
| Three months ended |
| Years ended | ||||||||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
Operating expenses: |
|
|
|
|
|
|
|
| ||||||||
General and administrative |
| $ | 29,469 |
|
| $ | 15,510 |
|
| $ | 107,357 |
|
| $ | 61,755 |
|
Research and development |
|
| 4,380 |
|
|
| 2,607 |
|
|
| 13,574 |
|
|
| 13,816 |
|
Share of net loss of equity method investee |
|
| 426 |
|
|
| 62 |
|
|
| 1,557 |
|
|
| 62 |
|
Total operating expenses |
|
| 34,275 |
|
|
| 18,179 |
|
|
| 122,488 |
|
|
| 75,633 |
|
Loss from operations |
|
| (34,275 | ) |
|
| (18,179 | ) |
|
| (122,488 | ) |
|
| (75,633 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other income (expense): |
|
|
|
|
|
|
|
| ||||||||
Warrant liability fair value adjustment |
|
| 59,771 |
|
|
| (10,686 | ) |
|
| 14,183 |
|
|
| (21,859 | ) |
Convertible note fair value adjustment |
|
| (544 | ) |
|
| — |
|
|
| (277 | ) |
|
| — |
|
Interest income, net |
|
| 1,691 |
|
|
| 256 |
|
|
| 1,780 |
|
|
| 314 |
|
Foreign currency transaction (loss) gain |
|
| (2,903 | ) |
|
| 498 |
|
|
| 2,512 |
|
|
| 1,325 |
|
Redeemable preferred shares fair value adjustment |
|
| — |
|
|
| (75 | ) |
|
| — |
|
|
| — |
|
Other income, net |
|
| 1,227 |
|
|
| 150 |
|
|
| 5,171 |
|
|
| 2,475 |
|
Total other income (expense) |
|
| 59,242 |
|
|
| (9,857 | ) |
|
| 23,369 |
|
|
| (17,745 | ) |
Income (loss) before income taxes |
|
| 24,967 |
|
|
| (28,036 | ) |
|
| (99,119 | ) |
|
| (93,378 | ) |
Income tax expense |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Net income (loss) |
|
| 24,967 |
|
|
| (28,036 | ) |
|
| (99,119 | ) |
|
| (93,378 | ) |
Net loss attributable to non-controlling interests |
|
| 328 |
|
|
| — |
|
|
| 328 |
|
|
| — |
|
Net income (loss) attributable to ordinary shareholders |
| $ | 25,295 |
|
| $ | (28,036 | ) |
| $ | (98,791 | ) |
| $ | (93,378 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average ordinary shares outstanding: |
|
|
|
|
|
|
|
| ||||||||
Basic |
|
| 123,455 |
|
|
| 116,597 |
|
|
| 118,474 |
|
|
| 75,363 |
|
Diluted |
|
| 127,889 |
|
|
| 116,597 |
|
|
| 118,474 |
|
|
| 75,363 |
|
|
|
|
|
|
|
|
|
| ||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
| ||||||||
Basic |
| $ | 0.20 |
|
| $ | (0.24 | ) |
| $ | (0.83 | ) |
| $ | (1.24 | ) |
Diluted |
| $ | 0.20 |
|
| $ | (0.24 | ) |
| $ | (0.83 | ) |
| $ | (1.24 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
| ||||||||
Net income (loss) |
| $ | 24,967 |
|
| $ | (28,036 | ) |
| $ | (99,119 | ) |
| $ | (93,378 | ) |
Foreign currency translation adjustments |
|
| 26,165 |
|
|
| (858 | ) |
|
| 9,618 |
|
|
| (1,182 | ) |
Total comprehensive income (loss) |
|
| 51,132 |
|
|
| (28,894 | ) |
|
| (89,501 | ) |
|
| (94,560 | ) |
Comprehensive loss attributable to non-controlling interests |
|
| 328 |
|
|
| — |
|
|
| 328 |
|
|
| — |
|
Comprehensive income (loss) attributable to ordinary shareholders |
| $ | 51,460 |
|
| $ | (28,894 | ) |
| $ | (89,173 | ) |
| $ | (94,560 | ) |
FREYR BATTERY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) | ||||||||
|
| For the years ended | ||||||
|
| 2022 |
| 2021 | ||||
Cash flows from operating activities: |
|
|
|
| ||||
Net loss |
| $ | (99,119 | ) |
| $ | (93,378 | ) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
| ||||
Share-based compensation expense |
|
| 8,643 |
|
|
| 14,818 |
|
Depreciation and amortization |
|
| 478 |
|
|
| 120 |
|
Loss on US joint venture consolidation |
|
| 1,619 |
|
|
| — |
|
Reduction in the carrying amount of lease assets |
|
| 1,458 |
|
|
| — |
|
Warrant liability fair value adjustment |
|
| (14,183 | ) |
|
| 21,859 |
|
Convertible note fair value adjustment |
|
| 277 |
|
|
| — |
|
Share of net loss of equity method investee |
|
| 1,557 |
|
|
| 62 |
|
Foreign currency transaction net unrealized gain |
|
| (2,868 | ) |
|
| — |
|
Other |
|
| 2 |
|
|
| (131 | ) |
Changes in assets and liabilities: |
|
|
|
| ||||
Prepaid assets and other current assets |
|
| (3,664 | ) |
|
| (16,419 | ) |
Other long-term assets |
|
| — |
|
|
| (230 | ) |
Accounts payable, accrued liabilities and other |
|
| 17,385 |
|
|
| 10,163 |
|
Operating lease liability |
|
| (1,594 | ) |
|
| — |
|
Net cash used in operating activities |
|
| (90,009 | ) |
|
| (63,136 | ) |
|
|
|
|
| ||||
Cash flows from investing activities: |
|
|
|
| ||||
Proceeds from property related grants |
|
| 10,461 |
|
|
| — |
|
Purchases of property and equipment |
|
| (180,787 | ) |
|
| (13,775 | ) |
Investments in equity method investee |
|
| (3,000 | ) |
|
| — |
|
Asset acquisition, cash acquired |
|
| 300 |
|
|
| — |
|
Investments in convertible note |
|
| — |
|
|
| (20,000 | ) |
Purchases of other long-term assets |
|
| (2,000 | ) |
|
| (12 | ) |
Net cash used in investing activities |
|
| (175,026 | ) |
|
| (33,787 | ) |
|
|
|
|
| ||||
Cash flows from financing activities: |
|
|
|
| ||||
Proceeds from issuance of ordinary shares, net |
|
| 251,124 |
|
|
| — |
|
Repurchase of treasury shares |
|
| (1,052 | ) |
|
| — |
|
Proceeds from Business Combination |
|
| — |
|
|
| 70,836 |
|
Proceeds from PIPE Investment, net |
|
| — |
|
|
| 573,666 |
|
Proceeds from issuance of redeemable preferred shares |
|
| — |
|
|
| 7,500 |
|
Payments for the Norway Demerger |
|
| — |
|
|
| (3,002 | ) |
Net cash provided by financing activities |
|
| 250,072 |
|
|
| 649,000 |
|
|
|
|
|
| ||||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
| 12,381 |
|
|
| (1,395 | ) |
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
| (2,582 | ) |
|
| 550,682 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
| 565,627 |
|
|
| 14,945 |
|
Cash, cash equivalents, and restricted cash at end of period |
| $ | 563,045 |
|
| $ | 565,627 |
|
|
|
|
|
| ||||
Reconciliation to consolidated balance sheets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 443,063 |
|
| $ | 563,956 |
|
Restricted cash |
|
| 119,982 |
|
|
| 1,671 |
|
Cash, cash equivalents, and restricted cash |
| $ | 563,045 |
|
| $ | 565,627 |
|
Last Trade: | US$2.16 |
Daily Change: | 0.35 19.34 |
Daily Volume: | 5,234,415 |
Market Cap: | US$301.750M |
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