Eos Energy Enterprises, Inc. (NASDAQ: EOSE) ("Eos" or the
“Company”), a leading provider of safe, scalable, efficient, and
sustainable zinc-based long duration energy storage systems, today
announced financial results for the second quarter ended June 30,
2023.
Key Highlights
- $0.2 million of revenue, compared
to $5.9 million in 2Q 2022, as the Company strategically
transitions manufacturing to the Eos Z3™ energy storage
system.
- Cost of Goods Sold of $11.2
million, a 69% decrease compared to 2Q 2022, driven by a decrease
in volume partially offset by commissioning related expenses.
- $23.6 million in operating
expenses, an 11% decrease compared to 2Q 2022, primarily driven by
reduced professional services partially offset by a non-cash Gen
2.3 equipment write down.
- $23.2 million cash balance on June
30, 2023, compared to $16.1 million on March 31, 2023.
- Booked $86.9 million in orders
during the first half of 2023, resulting in an order backlog of
$533.6 million as of June 30, 2023, a 17% increase compared to June
30, 2022.
- The Company continues to progress
through the Department of Energy Loan Programs’ process for its
Title XVII loan and is anticipating a decision regarding
conditional approval in the near term.
Eos Chief Executive Officer Joe Mastrangelo
said, "We have made significant progress on our transition to Z3
and I am very pleased with the initial output and performance of
the semi-automated line. We are seeing clear advantages with Z3’s
cycle time, performance consistency, and system simplification.
Being able to run discrete manufacturing processes in the first
half of the year has resulted in valuable learnings which we
believe will result in both time and capital efficiencies as we
develop our state-of-the art manufacturing line and begin to scale
our production.”
Mastrangelo continued, “There is still a lot of
hard work ahead of us and we are excited to build out our future
manufacturing line and continue the Z3 transition to deliver, at
scale, what the market needs so badly – a commercially available
alternative to lithium-ion technology that we believe is safe,
durable, flexible, non-flammable, non-corrosive and easily
recycled.”
Earnings Conference Call and Audio Webcast
Eos will host a conference call to discuss its
second quarter 2023 financial results on August 15, 2023, at 8:30
a.m. ET. A live webcast of the call will be available on the
“Investor Relations” page of the Company’s website at
https://investors.eose.com. To access the call by phone, please
register in advance using this link (registration link), and you
will be provided with dial in details via email upon registration.
To avoid delays, we encourage participants to dial into the
conference call fifteen minutes ahead of the scheduled start
time.
The conference call replay will be available via
webcast through Eos’s investor relations website for a limited
time. The webcast replay will be available from 11:30 a.m. ET
August 15, 2023, and can be accessed by visiting
https://investors.eose.com/events-and-presentations.
About Eos
Eos Energy Enterprises, Inc. is accelerating the
shift to clean energy with positively ingenious solutions that
transform how the world stores power. Our breakthrough Znyth™
aqueous zinc battery was designed to overcome the limitations of
conventional lithium-ion technology. Safe, scalable, efficient,
sustainable—and manufactured in the U.S—it's the core of our
innovative systems that today provide utility, industrial, and
commercial customers with a proven, reliable energy storage
alternative for 3- to 12-hour applications. Eos was founded in 2008
and is headquartered in Edison, New Jersey. For more information
about Eos (NASDAQ: EOSE), visit eose.com.
Contacts |
|
Investors: |
ir@eose.com |
Media: |
media@eose.com |
|
|
Forward Looking Statements
Except for the historical information contained
herein, the matters set forth in this press release are
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements regarding the tax credits available to our customers or
to Eos pursuant to the Inflation Reduction Act of 2022, statements
regarding our ability to secure conditional commitment or final
approval of a loan from the Department of Energy LPO, or our
anticipated use of proceeds from any loan facility provided by the
US Department of Energy, statements that refer to projections,
forecasts or other characterizations of future events or
circumstances, including any underlying assumptions. The words
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intends," "may," "might," "plan," "possible," "potential,"
"predict," "project," "should," "would" and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements are based on our management’s beliefs,
as well as assumptions made by, and information currently available
to, them. Because such statements are based on expectations as to
future financial and operating results and are not statements of
fact, actual results may differ materially from those
projected.
Factors which may cause actual results to differ
materially from current expectations include, but are not limited
to: changes adversely affecting the business in which we are
engaged; our ability to forecast trends accurately; our ability to
generate cash, service indebtedness and incur additional
indebtedness; our ability to raise financing in the future; our
customers’ ability to secure project financing; the amount of final
tax credits available to our customers or to Eos pursuant to the
Inflation Reduction Act, uncertainties around our ability to secure
conditional commitment in a timely manner or at all, or final
approval of a loan from the Department of Energy, the Loan Programs
Office, or the timing of funding and the final size of any loan if
approved; the possibility of a government shutdown while we remain
in the due diligence phase with the U.S. Department of Energy Loan
Programs Office or while we await notice of a decision regarding
the issuance of a loan from the Department Energy Loan Programs
Office; our ability to develop efficient manufacturing processes to
scale and to forecast related costs and efficiencies accurately;
fluctuations in our revenue and operating results; competition from
existing or new competitors; the failure to convert firm order
backlog and pipeline to revenue; risks associated with security
breaches in our information technology systems; risks related to
legal proceedings or claims; risks associated with evolving energy
policies in the United States and other countries and the potential
costs of regulatory compliance; risks associated with changes to
U.S. trade environment; risks resulting from the impact of global
pandemics, including the novel coronavirus, Covid-19; our ability
to maintain the listing of our shares of common stock on NASDAQ;
our ability to grow our business and manage growth profitably,
maintain relationships with customers and suppliers and retain our
management and key employees; risks related to the adverse changes
in general economic conditions, including inflationary pressures
and increased interest rates; risk from supply chain disruptions
and other impacts of geopolitical conflict; changes in applicable
laws or regulations; the possibility that Eos may be adversely
affected by other economic, business, and/or competitive factors;
other factors beyond our control; risks related to adverse changes
in general economic conditions; and other risks and
uncertainties.
The forward-looking statements contained in this
press release are also subject to additional risks, uncertainties,
and factors, including those more fully described in the Company’s
most recent filings with the Securities and Exchange Commission,
including the Company’s most recent Annual Report on Form 10-K and
subsequent reports on Forms 10-Q and 8-K. Further information on
potential risks that could affect actual results will be included
in the subsequent periodic and current reports and other filings
that the Company makes with the Securities and Exchange Commission
from time to time. Moreover, the Company operates in a very
competitive and rapidly changing environment, and new risks and
uncertainties may emerge that could have an impact on the
forward-looking statements contained in this press release.
Forward-looking statements speak only as of the
date they are made. Readers are cautioned not to put undue reliance
on forward-looking statements, and, except as required by law, the
Company assumes no obligation and does not intend to update or
revise these forward-looking statements, whether as a result of new
information, future events, or otherwise.
Key Metrics
Backlog. Our backlog represents
the amount of revenue that we expect to realize from existing
agreements with our customers for the sale of our battery
energy storage systems and performance of services. The
backlog is calculated by adding new orders in the current
fiscal period to the backlog as of the end of the prior fiscal
period and then subtracting the shipments in the current
fiscal period. If the amount of an order is modified or cancelled,
we adjust orders in the current period and our backlog accordingly,
but do not retroactively adjust previously published backlogs.
There is no comparable US-GAAP financial measure for backlog. We
believe that the backlog is a useful indicator regarding the future
revenue of our Company.
Pipeline. Our pipeline
represents projects for which we have submitted technical proposals
or non-binding quotes plus letters of intent (“LOI”) or firm
commitments from customers. Pipeline does not include lead
generation projects.
Booked Orders. Booked orders
are orders where we have legally binding agreements with a Purchase
Order (“PO”) or Master Supply Agreement (“MSA”) executed by both
parties.
|
EOS ENERGY ENTERPRISES, INC.EARNINGS
RELEASE TABLESUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS(In thousands, except share and per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
Total
revenue |
$ |
249 |
|
|
$ |
5,895 |
|
|
$ |
9,084 |
|
|
$ |
9,193 |
|
|
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
|
|
Cost of goods sold |
|
11,246 |
|
|
|
36,866 |
|
|
|
38,186 |
|
|
|
72,443 |
|
Research and development
expenses |
|
5,026 |
|
|
|
5,464 |
|
|
|
10,471 |
|
|
|
10,427 |
|
Selling, general and
administrative expenses |
|
13,138 |
|
|
|
19,115 |
|
|
|
27,093 |
|
|
|
33,394 |
|
Loss from write-down of
property, plant, and equipment |
|
5,436 |
|
|
|
1,997 |
|
|
|
6,196 |
|
|
|
2,005 |
|
Grant (income) expense,
net |
|
- |
|
|
|
(169 |
) |
|
|
- |
|
|
|
4 |
|
Total costs and
expenses |
|
34,846 |
|
|
|
63,273 |
|
|
|
81,946 |
|
|
|
118,273 |
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(34,597 |
) |
|
|
(57,378 |
) |
|
|
(72,862 |
) |
|
|
(109,080 |
) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
4,886 |
|
|
|
284 |
|
|
|
9,715 |
|
|
|
622 |
|
Interest expense - related
party |
|
14,758 |
|
|
|
2,664 |
|
|
|
28,513 |
|
|
|
4,838 |
|
Change in fair value of
derivatives - related party |
|
74,633 |
|
|
|
(4,248 |
) |
|
|
87,723 |
|
|
|
(12,510 |
) |
Loss on debt extinguishment /
other expense |
|
2,754 |
|
|
|
632 |
|
|
|
4,405 |
|
|
|
513 |
|
Loss before income
taxes |
$ |
(131,628 |
) |
|
$ |
(56,710 |
) |
|
$ |
(203,218 |
) |
|
$ |
(102,543 |
) |
Income tax expense
(benefit) |
|
2 |
|
|
|
(23 |
) |
|
|
12 |
|
|
|
(65 |
) |
Net loss |
$ |
(131,630 |
) |
|
$ |
(56,687 |
) |
|
$ |
(203,230 |
) |
|
$ |
(102,478 |
) |
|
|
|
|
|
|
|
|
Basic and diluted loss
per share attributable to common shareholders |
|
|
|
|
|
|
|
Basic |
$ |
(1.12 |
) |
|
$ |
(1.01 |
) |
|
$ |
(1.99 |
) |
|
$ |
(1.86 |
) |
Diluted |
$ |
(1.12 |
) |
|
$ |
(1.01 |
) |
|
$ |
(1.99 |
) |
|
$ |
(1.86 |
) |
|
|
|
|
|
|
|
|
Weighted average
shares of common stock |
|
|
|
|
|
|
|
Basic |
|
117,320,802 |
|
|
|
56,021,185 |
|
|
|
102,106,041 |
|
|
|
54,991,475 |
|
Diluted |
|
117,320,802 |
|
|
|
56,021,185 |
|
|
|
102,106,041 |
|
|
|
54,991,475 |
|
|
EOS ENERGY ENTERPRISES, INC.EARNINGS
RELEASE TABLES UNAUDITED CONSOLIDATED BALANCE
SHEETS DATA(In thousands) |
|
|
June 30, 2023 |
|
|
December 31,2022 |
Balance sheet
data |
|
|
|
|
Cash and cash equivalents |
$ |
23,243 |
|
|
|
$ |
17,076 |
|
Other current assets |
40,728 |
|
|
|
38,071 |
|
Property and equipment, net |
19,683 |
|
|
|
27,169 |
|
Other assets |
25,296 |
|
|
|
24,472 |
|
Total assets |
108,950 |
|
|
|
106,788 |
|
Total liabilities |
338,491 |
|
|
|
239,499 |
|
Total deficit |
(229,541 |
) |
|
|
(132,711 |
) |
UNAUDITED STATEMENTS OF CASH FLOW DATA(In
thousands) |
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
|
2022 |
|
Cash used in operating activities |
$ |
(75,582 |
) |
|
|
$ |
(86,992 |
) |
Cash used in investing activities |
|
(10,100 |
) |
|
|
|
(11,758 |
) |
Cash provided by financing activities |
|
92,612 |
|
|
|
|
10,584 |
|
Effect of foreign exchange on
cash, cash equivalents & restricted cash |
|
3 |
|
|
|
|
2 |
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
6,933 |
|
|
|
|
(88,164 |
) |
Cash, cash equivalents and
restricted cash, beginning of the period |
|
31,223 |
|
|
|
|
105,692 |
|
Cash, cash equivalents and
restricted cash, end of the period |
$ |
38,156 |
|
|
|
$ |
17,528 |
|
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