FREYR Battery Reports Third Quarter 2024 Results
FREYR Battery Reports Third Quarter 2024 Results
NEW YORK & OSLO, Norway & NEWNAN, Ga.--(BUSINESS WIRE)-- FREYR Battery, Inc. (NYSE: FREY) (“FREYR” or the “Company”), a developer of sustainable clean energy capacity and solutions, today reported financial results for the third quarter of 2024.
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 ended September 30, 2024, compared to $24.4 million for the three months ended September 30, 2023, and a restructuring charge of $4.5 million for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.
- As of September 30, 2024, FREYR had cash, cash equivalents, and restricted cash of $184.1 million, and no debt.
FREYR BATTERY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) | ||||||||
|
| September 30, |
| December 31, | ||||
|
|
| ||||||
ASSETS | ||||||||
Current assets: |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 181,851 |
|
| $ | 253,339 |
|
Restricted cash |
|
| 2,202 |
|
|
| 22,403 |
|
Prepaid assets |
|
| 2,838 |
|
|
| 2,168 |
|
Other current assets |
|
| 12,583 |
|
|
| 34,044 |
|
Total current assets |
|
| 199,474 |
|
|
| 311,954 |
|
|
|
|
|
| ||||
Property and equipment, net |
|
| 368,342 |
|
|
| 366,357 |
|
Intangible assets, net |
|
| 2,700 |
|
|
| 2,813 |
|
Long-term investments |
|
| 21,819 |
|
|
| 22,303 |
|
Right-of-use asset under operating leases |
|
| 22,640 |
|
|
| 24,476 |
|
Other long-term assets |
|
| 10 |
|
|
| 4,282 |
|
Total assets |
| $ | 614,985 |
|
| $ | 732,185 |
|
|
|
|
|
| ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: |
|
|
|
| ||||
Accounts payable |
| $ | 10,080 |
|
| $ | 18,113 |
|
Accrued liabilities and other |
|
| 21,254 |
|
|
| 30,790 |
|
Share-based compensation liability |
|
| 19 |
|
|
| 281 |
|
Total current liabilities |
|
| 31,353 |
|
|
| 49,184 |
|
|
|
|
|
| ||||
Warrant liability |
|
| 721 |
|
|
| 2,025 |
|
Operating lease liability |
|
| 16,775 |
|
|
| 18,816 |
|
Other long-term liabilities |
|
| 27,446 |
|
|
| 27,444 |
|
Total liabilities |
|
| 76,295 |
|
|
| 97,469 |
|
|
|
|
|
| ||||
Commitments and contingencies |
|
|
|
| ||||
|
|
|
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| ||||
Stockholders’ equity: |
|
|
|
| ||||
Preferred stock, $0.01 par value, 10,000 shares authorized, none issued and outstanding as of both September 30, 2024 and December 31, 2023 |
|
| — |
|
|
| — |
|
Common stock, $0.01 par value, 355,000 shares authorized as of both September 30, 2024 and December 31, 2023; 140,490 issued and outstanding as of September 30, 2024; and 139,705 issued and outstanding as of December 31, 2023 |
|
| 1,405 |
|
|
| 1,397 |
|
Additional paid-in capital |
|
| 929,324 |
|
|
| 925,623 |
|
Accumulated other comprehensive loss |
|
| (34,035 | ) |
|
| (18,826 | ) |
Accumulated deficit |
|
| (358,004 | ) |
|
| (274,999 | ) |
Total stockholders' equity |
|
| 538,690 |
|
|
| 633,195 |
|
|
|
|
|
| ||||
Non-controlling interests |
|
| — |
|
|
| 1,521 |
|
Total equity |
|
| 538,690 |
|
|
| 634,716 |
|
|
|
|
|
| ||||
Total liabilities and equity |
| $ | 614,985 |
|
| $ | 732,185 |
|
FREYR BATTERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||
|
| Three months ended |
| Nine months ended | ||||||||||||
|
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
|
Operating expenses: |
|
|
|
|
|
|
|
| ||||||||
General and administrative |
| $ | 18,515 |
|
| $ | 27,772 |
|
| $ | 61,386 |
|
| $ | 85,405 |
|
Research and development |
|
| 8,616 |
|
|
| 7,086 |
|
|
| 30,854 |
|
|
| 18,295 |
|
Restructuring charge |
|
| 4,507 |
|
|
| — |
|
|
| 4,644 |
|
|
| — |
|
Share of net loss of equity method investee |
|
| 150 |
|
|
| 153 |
|
|
| 484 |
|
|
| 208 |
|
Total operating expenses |
|
| 31,788 |
|
|
| 35,011 |
|
|
| 97,368 |
|
|
| 103,908 |
|
Loss from operations |
|
| (31,788 | ) |
|
| (35,011 | ) |
|
| (97,368 | ) |
|
| (103,908 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other income (expense): |
|
|
|
|
|
|
|
| ||||||||
Warrant liability fair value adjustment |
|
| 1,096 |
|
|
| 24,399 |
|
|
| 1,294 |
|
|
| 23,248 |
|
Interest income, net |
|
| 1,074 |
|
|
| 1,284 |
|
|
| 3,627 |
|
|
| 6,042 |
|
Foreign currency transaction (loss) gain |
|
| (110 | ) |
|
| (3,213 | ) |
|
| 1,245 |
|
|
| 20,546 |
|
Other income, net |
|
| 2,172 |
|
|
| 2,537 |
|
|
| 7,806 |
|
|
| 6,103 |
|
Total other income |
|
| 4,232 |
|
|
| 25,007 |
|
|
| 13,972 |
|
|
| 55,939 |
|
Loss before income taxes |
|
| (27,556 | ) |
|
| (10,004 | ) |
|
| (83,396 | ) |
|
| (47,969 | ) |
Income tax expense |
|
| — |
|
|
| — |
|
|
| (11 | ) |
|
| (341 | ) |
Net loss |
|
| (27,556 | ) |
|
| (10,004 | ) |
|
| (83,407 | ) |
|
| (48,310 | ) |
Net loss attributable to non-controlling interests |
|
| 81 |
|
|
| 219 |
|
|
| 402 |
|
|
| 517 |
|
Net loss attributable to stockholders |
| $ | (27,475 | ) |
| $ | (9,785 | ) |
| $ | (83,005 | ) |
| $ | (47,793 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average shares outstanding - basic and diluted |
|
| 140,490 |
|
|
| 139,705 |
|
|
| 140,102 |
|
|
| 139,705 |
|
Net loss per share attributable to stockholders - basic and diluted |
| $ | (0.20 | ) |
| $ | (0.07 | ) |
| $ | (0.59 | ) |
| $ | (0.34 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
| ||||||||
Net loss |
| $ | (27,556 | ) |
| $ | (10,004 | ) |
| $ | (83,407 | ) |
| $ | (48,310 | ) |
Foreign currency translation adjustments |
|
| 5,973 |
|
|
| 6,134 |
|
|
| (15,209 | ) |
|
| (48,009 | ) |
Total comprehensive loss |
| $ | (21,583 | ) |
| $ | (3,870 | ) |
| $ | (98,616 | ) |
| $ | (96,319 | ) |
Comprehensive loss attributable to non-controlling interests |
|
| 81 |
|
|
| 219 |
|
|
| 402 |
|
|
| 517 |
|
Comprehensive loss attributable to stockholders |
| $ | (21,502 | ) |
| $ | (3,651 | ) |
| $ | (98,214 | ) |
| $ | (95,802 | ) |
FREYR BATTERY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
|
| Nine months ended | ||||||
|
|
| 2024 |
|
|
| 2023 |
|
Cash flows from operating activities: |
|
|
|
| ||||
Net loss |
| $ | (83,407 | ) |
| $ | (48,310 | ) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
| ||||
Share-based compensation expense |
|
| 6,449 |
|
|
| 7,859 |
|
Depreciation and amortization |
|
| 7,028 |
|
|
| 1,922 |
|
Reduction in the carrying amount of right-of-use assets |
|
| 1,282 |
|
|
| 1,005 |
|
Warrant liability fair value adjustment |
|
| (1,294 | ) |
|
| (23,248 | ) |
Share of net loss of equity method investee |
|
| 484 |
|
|
| 208 |
|
Foreign currency transaction net unrealized gain |
|
| (1,075 | ) |
|
| (19,346 | ) |
Other |
|
| — |
|
|
| (929 | ) |
Changes in assets and liabilities: |
|
|
|
| ||||
Prepaid assets and other current assets |
|
| 13 |
|
|
| 1,672 |
|
Accounts payable, accrued liabilities and other |
|
| (429 | ) |
|
| 28,401 |
|
Operating lease liability |
|
| (1,626 | ) |
|
| (3,212 | ) |
Net cash used in operating activities |
|
| (72,575 | ) |
|
| (53,978 | ) |
|
|
|
|
| ||||
Cash flows from investing activities: |
|
|
|
| ||||
Proceeds from the return of property and equipment deposits |
|
| 22,735 |
|
|
| — |
|
Proceeds from property related grants |
|
| — |
|
|
| 3,500 |
|
Purchases of property and equipment |
|
| (34,683 | ) |
|
| (168,811 | ) |
Investments in equity method investee |
|
| — |
|
|
| (1,655 | ) |
Purchases of other long-term assets |
|
| — |
|
|
| (1,000 | ) |
Net cash used in investing activities |
|
| (11,948 | ) |
|
| (167,966 | ) |
|
|
|
|
| ||||
Cash flows from financing activities: |
|
|
|
| ||||
Payment for non-controlling interest |
|
| (4,130 | ) |
|
| — |
|
Net cash used in financing activities |
|
| (4,130 | ) |
|
| — |
|
|
|
|
|
| ||||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
| (3,036 | ) |
|
| (13,240 | ) |
Net decrease in cash, cash equivalents, and restricted cash |
|
| (91,689 | ) |
|
| (235,184 | ) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
| 275,742 |
|
|
| 563,045 |
|
Cash, cash equivalents, and restricted cash at end of period |
| $ | 184,053 |
|
| $ | 327,861 |
|
|
|
|
|
| ||||
Supplementary disclosure for non-cash activities: |
|
|
|
| ||||
Accrued purchases of property and equipment |
| $ | 6,133 |
|
| $ | 11,187 |
|
|
|
|
|
| ||||
Reconciliation to condensed consolidated balance sheets: |
|
|
|
| ||||
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/
Contacts
Investor contact:
Jeffrey Spittel
Senior Vice President, Investor Relations and Corporate Development
jeffrey.spittel@freyrbattery.com
Tel: (+1) 409-599-5706
Media contact:
Amy Jaick
Global Head of Communications
amy.jaick@freyrbattery.com
Tel: (+1) 973 713-5585
Source: FREYR Battery, Inc.
View this news release online at:
http://www.businesswire.com/news/home/20241105739786/en
