NEW YORK & OSLO & LUXEMBOURG / Nov 09, 2023 / Business Wire / FREYR Battery (NYSE: FREY) (“FREYR” or the “Company”), a developer of clean, next-generation battery cell production capacity, today reported financial results for the third quarter of 2023.
Highlights of the Third Quarter 2023 and Subsequent Events:
“FREYR is navigating a highly volatile environment in which time and optionality are valuable,” remarked Birger Steen, FREYR’s Chief Executive Officer. “Against this fluid industry, policy, and financing backdrop, we will prioritize financial strength, make dispassionate business decisions based on the evolving market dynamics, and allocate resources towards key priorities to maximize the value of our real options for our shareholders, customers, partners, and employees. We are excited about the path ahead, and the entire FREYR team is unified in our purpose to establish the Company as a global developer and scaler of clean battery solutions.”
“As stated previously, the speed at which FREYR has been maturing the SemiSolidTM production platform is impressive,” commented Laurent Demortier, President of Nidec’s Energy & Infrastructure Division. ”The extension of the CQP timeline to reach automated production is understandable given the complexity of the commissioning packages, and we are confident that the FREYR team will continue to make strides at the CQP by collaborating with their ecosystem of partners. Nidec remains committed to our long-term partnership with FREYR to develop integrated, fit-for-purpose Energy Storage Systems solutions through our Nidec Energy AS Joint Venture, and we continue to explore avenues to further strengthen our partnership.”
Business Update
Overview of Financial Results
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones:
Presentation of Third Quarter 2023 Results
A presentation will be held today, November 9, 2023, at 8:30 am Eastern Standard Time (2:30 pm Central European Time) to discuss financial results for the third quarter 2023. 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 States: 1 (646) 307-1963
United Kingdom: +44 20 3481 4247
Norway: +47 57 98 94 30
Denmark: +45 32 74 07 10
Spain: +34 910 489 958
Germany: +49 69 589964217
Sweden: +46 8 505 246 90
The participant passcode for the call is: 4087726
A webcast of the conference call will be broadcast simultaneously at https://app.webinar.net/ZpzL2e52jo0 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 clean 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 United States. To learn more about FREYR, please visit www.freyrbattery.com.
Cautionary Statement Concerning Forward-Looking Statements
All statements, other than statements of present or historical fact included in this press release, including, without limitation, FREYR Battery’s (“FREYR”) ability to achieve automated, in-spec, customer-testable battery production beyond 4Q 2023; the development, financing, construction, timeline, capacity, and other usefulness of FREYR’s CQP, Giga Arctic, Giga America, and other planned or future production facilities or Gigafactories; FREYR’s plan to prevent additional delays; any potential project equity raise for the development of Giga America; the competitiveness of the Norwegian battery cell production and any potential governmental incentives; any potential benefits of the U.S. Inflation Reduction Act; FREYR’s ability to navigate a highly volatile environment; the development of any potential conventional technology partnerships; FREYR’s ability to reduce spending, including in connection with Giga Arctic; any potential benefits of redomiciling to the U.S.; the giga-scalability of the 24M platform; and the implementation and effectiveness of FREYR’s overall business, technology, capital-raising, and liquidity strategies are forward-looking statements.
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 Securities and Exchange Commission (the “SEC”) on September 1, 2022, (ii) FREYR Battery, Inc.’s Registration Statement on Form S-4 filed with the SEC on September 8, 2023 and subsequent amendments thereto filed on October 13, 2023, October 19, 2023, and October 31, 2023, (iii) FREYR’s Annual Report on Form 10-K filed with the SEC on February 27, 2023, and (iv) FREYR’s Quarterly Reports on Form 10-Q filed with the SEC on May 15, 2023 and August 10, 2023 and 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 presentation. Should underlying assumptions prove incorrect, actual results and projections could differ materially from those expressed in any forward-looking statements.
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, SEC filings, and public conference calls and webcasts. The contents of FREYR’s website and other social media channels shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
FREYR BATTERY CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited) | ||||||||
|
| September 30, 2023 |
| December 31, 2022 | ||||
|
|
| ||||||
ASSETS | ||||||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 299,419 |
|
| $ | 443,063 |
|
Restricted cash |
|
| 28,442 |
|
|
| 119,982 |
|
Prepaid assets |
|
| 5,690 |
|
|
| 8,293 |
|
Other current assets |
|
| 7,317 |
|
|
| 8,117 |
|
Total current assets |
|
| 340,868 |
|
|
| 579,455 |
|
|
|
|
|
| ||||
Property and equipment, net |
|
| 349,388 |
|
|
| 210,777 |
|
Intangible assets, net |
|
| 2,850 |
|
|
| 2,963 |
|
Long-term investments |
|
| 22,475 |
|
|
| — |
|
Convertible note |
|
| — |
|
|
| 19,954 |
|
Right-of-use asset under operating leases |
|
| 23,233 |
|
|
| 14,538 |
|
Other long-term assets |
|
| 14 |
|
|
| 11 |
|
Total assets |
| $ | 738,828 |
|
| $ | 827,698 |
|
|
|
|
|
| ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 18,751 |
|
| $ | 6,765 |
|
Accrued liabilities and other |
|
| 27,793 |
|
|
| 51,446 |
|
Share-based compensation liability |
|
| 1,806 |
|
|
| 4,367 |
|
Total current liabilities |
|
| 48,350 |
|
|
| 62,578 |
|
|
|
|
|
| ||||
Warrant liability |
|
| 10,540 |
|
|
| 33,849 |
|
Operating lease liability |
|
| 18,353 |
|
|
| 11,144 |
|
Other long-term liabilities |
|
| 27,145 |
|
|
| — |
|
Total liabilities |
|
| 104,388 |
|
|
| 107,571 |
|
|
|
|
|
| ||||
Commitments and contingencies |
|
|
|
| ||||
|
|
|
|
| ||||
Shareholders’ equity: |
|
|
|
| ||||
Ordinary share capital, no par value, 245,000 ordinary shares authorized, and 139,854 and 139,705 ordinary shares issued and outstanding, respectively, as of both September 30, 2023 and December 31, 2022 |
|
| 139,854 |
|
|
| 139,854 |
|
Additional paid-in capital |
|
| 783,234 |
|
|
| 772,602 |
|
Treasury stock |
|
| (1,041 | ) |
|
| (1,041 | ) |
Accumulated other comprehensive (loss) income |
|
| (38,915 | ) |
|
| 9,094 |
|
Accumulated deficit |
|
| (250,847 | ) |
|
| (203,054 | ) |
Total ordinary shareholders' equity |
|
| 632,285 |
|
|
| 717,455 |
|
|
|
|
|
| ||||
Non-controlling interests |
|
| 2,155 |
|
|
| 2,672 |
|
Total equity |
|
| 634,440 |
|
|
| 720,127 |
|
|
|
|
|
| ||||
Total liabilities and equity |
| $ | 738,828 |
|
| $ | 827,698 |
|
FREYR BATTERY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In Thousands, Except per Share Amounts) (Unaudited) | ||||||||||||||||
|
| Three months ended September 30, |
| Nine months ended September 30, | ||||||||||||
|
|
| 2023 |
|
|
| 2022 |
|
|
| 2023 |
|
|
| 2022 |
|
Operating expenses: |
|
|
|
|
|
|
|
| ||||||||
General and administrative |
| $ | 27,772 |
|
| $ | 25,124 |
|
| $ | 85,405 |
|
| $ | 77,888 |
|
Research and development |
|
| 7,086 |
|
|
| 3,253 |
|
|
| 18,295 |
|
|
| 9,194 |
|
Share of net loss of equity method investee |
|
| 153 |
|
|
| 668 |
|
|
| 208 |
|
|
| 1,131 |
|
Total operating expenses |
|
| 35,011 |
|
|
| 29,045 |
|
|
| 103,908 |
|
|
| 88,213 |
|
Loss from operations |
|
| (35,011 | ) |
|
| (29,045 | ) |
|
| (103,908 | ) |
|
| (88,213 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other income (expense): |
|
|
|
|
|
|
|
| ||||||||
Warrant liability fair value adjustment |
|
| 24,399 |
|
|
| (70,292 | ) |
|
| 23,248 |
|
|
| (45,588 | ) |
Convertible note fair value adjustment |
|
| — |
|
|
| (224 | ) |
|
| 1,074 |
|
|
| 267 |
|
Interest income, net |
|
| 1,284 |
|
|
| 60 |
|
|
| 6,042 |
|
|
| 89 |
|
Foreign currency transaction (loss) gain |
|
| (3,213 | ) |
|
| 4,325 |
|
|
| 20,546 |
|
|
| 5,415 |
|
Other income, net |
|
| 2,537 |
|
|
| 1,326 |
|
|
| 5,029 |
|
|
| 3,944 |
|
Total other income (expense) |
|
| 25,007 |
|
|
| (64,805 | ) |
|
| 55,939 |
|
|
| (35,873 | ) |
Loss before income taxes |
|
| (10,004 | ) |
|
| (93,850 | ) |
|
| (47,969 | ) |
|
| (124,086 | ) |
Income tax expense |
|
| — |
|
|
| — |
|
|
| (341 | ) |
|
| — |
|
Net loss |
|
| (10,004 | ) |
|
| (93,850 | ) |
|
| (48,310 | ) |
|
| (124,086 | ) |
Net loss attributable to non-controlling interests |
|
| 219 |
|
|
| — |
|
|
| 517 |
|
|
| — |
|
Net loss attributable to ordinary shareholders |
| $ | (9,785 | ) |
| $ | (93,850 | ) |
| $ | (47,793 | ) |
| $ | (124,086 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average ordinary shares outstanding - basic and diluted |
|
| 139,705 |
|
|
| 116,704 |
|
|
| 139,705 |
|
|
| 116,795 |
|
Net loss attributable to ordinary shareholders per share - basic and diluted |
| $ | (0.07 | ) |
| $ | (0.80 | ) |
| $ | (0.34 | ) |
| $ | (1.06 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
| ||||||||
Net loss |
| $ | (10,004 | ) |
| $ | (93,850 | ) |
| $ | (48,310 | ) |
| $ | (124,086 | ) |
Foreign currency translation adjustments |
|
| 6,134 |
|
|
| (9,089 | ) |
|
| (48,009 | ) |
|
| (16,547 | ) |
Total comprehensive loss |
| $ | (3,870 | ) |
| $ | (102,939 | ) |
| $ | (96,319 | ) |
| $ | (140,633 | ) |
Comprehensive loss attributable to non-controlling interests |
|
| 219 |
|
|
| — |
|
|
| 517 |
|
|
| — |
|
Comprehensive loss attributable to ordinary shareholders |
| $ | (3,651 | ) |
| $ | (102,939 | ) |
| $ | (95,802 | ) |
| $ | (140,633 | ) |
|
|
|
|
|
|
|
|
|
FREYR BATTERY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) | ||||||||
|
| Nine months ended September 30, | ||||||
|
|
| 2023 |
|
|
| 2022 |
|
Cash flows from operating activities: |
|
|
|
| ||||
Net loss |
| $ | (48,310 | ) |
| $ | (124,086 | ) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
| ||||
Share-based compensation expense |
|
| 7,859 |
|
|
| 9,280 |
|
Depreciation and amortization |
|
| 1,922 |
|
|
| 298 |
|
Reduction in the carrying amount of right-of-use assets |
|
| 1,005 |
|
|
| 1,096 |
|
Warrant liability fair value adjustment |
|
| (23,248 | ) |
|
| 45,588 |
|
Convertible note fair value adjustment |
|
| (1,074 | ) |
|
| (267 | ) |
Share of net loss of equity method investee |
|
| 208 |
|
|
| 1,131 |
|
Foreign currency transaction net unrealized gain |
|
| (19,346 | ) |
|
| (4,864 | ) |
Other |
|
| 145 |
|
|
| — |
|
Changes in assets and liabilities: |
|
|
|
| ||||
Prepaid assets and other current assets |
|
| 1,672 |
|
|
| (7,059 | ) |
Accounts payable, accrued liabilities and other |
|
| 28,401 |
|
|
| 6,692 |
|
Operating lease liability |
|
| (3,212 | ) |
|
| (802 | ) |
Net cash used in operating activities |
|
| (53,978 | ) |
|
| (72,993 | ) |
|
|
|
|
| ||||
Cash flows from investing activities: |
|
|
|
| ||||
Proceeds from property related grants |
|
| 3,500 |
|
|
| 10,461 |
|
Purchases of property and equipment |
|
| (168,811 | ) |
|
| (77,687 | ) |
Investments in equity method investee |
|
| (1,655 | ) |
|
| (3,000 | ) |
Purchases of other long-term assets |
|
| (1,000 | ) |
|
| — |
|
Net cash used in investing activities |
|
| (167,966 | ) |
|
| (70,226 | ) |
|
|
|
|
| ||||
Cash flows from financing activities: |
|
|
|
| ||||
Repurchase of treasury shares |
|
| — |
|
|
| (1,052 | ) |
Net cash used in financing activities |
|
| — |
|
|
| (1,052 | ) |
|
|
|
|
| ||||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
| (13,240 | ) |
|
| (2,765 | ) |
Net decrease in cash, cash equivalents, and restricted cash |
|
| (235,184 | ) |
|
| (147,036 | ) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
| 563,045 |
|
|
| 565,627 |
|
Cash, cash equivalents, and restricted cash at end of period |
| $ | 327,861 |
|
| $ | 418,591 |
|
|
|
|
|
| ||||
Significant non-cash investing and financing activities: |
|
|
|
| ||||
Accrued purchases of property and equipment |
| $ | 11,187 |
|
| $ | 18,514 |
|
|
|
|
|
| ||||
Reconciliation to condensed consolidated balance sheets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 299,419 |
|
| $ | 416,431 |
|
Restricted cash |
|
| 28,442 |
|
|
| 2,160 |
|
Cash, cash equivalents, and restricted cash |
| $ | 327,861 |
|
| $ | 418,591 |
Last Trade: | US$1.02 |
Daily Change: | 0.01 0.99 |
Daily Volume: | 421,171 |
Market Cap: | US$142.490M |
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