FREYR Battery Reports Fourth Quarter and Full Year 2023 Results
Highlights:
-
New operations update: another key milestone reached at Customer Qualification Plant. Building on recent technical achievements, FREYR’s Asset Mo team at the Customer Qualification Plant (“CQP”) conducted successful automated anode casting trials with active anode slurry in the second half of February. With the success of the cathode casting trials earlier in February and today’s announcement, the remaining major milestone before the expected start of automated production at the CQP is the integration of the casting webs across the cathode, anode, and merge units of the Casting and
Unit Cell Assembly equipment using the highly complex Multi-Carrier System (“MCS”). FREYR expects to commence production of functional battery cells for customer samples using the full automation of the CQP in H1 2024. -
CQP progress to support
U.S. Department of Energy Title 17 application. Based on recent achievements and the production road map at the CQP, FREYR is positioning the Company to qualify for a conditional commitment from theU.S. Department of Energy (“DOE”) Loan Programs Office by year-end 2024. The Company’s Title 17 application is tied to the development ofGiga America using the 24M Technologies (“24M”)U.S. -based SemiSolidTM platform. Over the initial phase of the project,Giga America is expected to generate hundreds of jobs inCoweta County, GA and the surrounding areas. -
Launching FREYR 2.0 growth initiative. FREYR’s strong competitive and financial position is generating interest from a broad range of participants across the global battery value chain. Based on ongoing conversations with these stakeholders, the Company has established the FREYR 2.0 growth initiative, which encompasses the pursuit of five major opportunities tied to distinct projects using either the SemiSolid platform or conventional technology totaling more than 100 GWh of production capacity in the
U.S. andEurope . The prospective end markets for these projects include both Energy Storage Systems (“ESS”) and passenger EV applications with the possibility to produce both LFP and NMC cells. Additionally, the 2.0 initiative includes separate potential inorganic opportunities to accelerate FREYR’s path to market and first revenues.
“The actions we have taken to strengthen our organization to accelerate FREYR’s path to first production and enhance our financial position are driving tangible progress,” said
Recent news
-
February operations update: On
February 7 th, 2024, FREYR published an operations and financial update indicating that the company had reached the milestone of automatically casting electrodes with active electrolyte slurry in a dry room environment at the Customer Qualification Plant (“CQP”) in Mo i Rana,Norway . -
Year-end 2023 cash balance of
$276 million: Having ended the year with cash, restricted cash and equivalents of$275.7 million as indicated in the operations and financial update published onFebruary 7 th, and with FREYR’s reduced cash requirements for 2024 compared with 2023, FREYR has a two-year cash runway before any new financings associated with the DOE Title 17 process and/or the prospective project-level equity raise forGiga America . The Company’s 2024 spending will be focused on achieving production using the full automation at the CQP with 24M technology in H1 2024, the production ramp necessary to deliver testable cells from the CQP to our customers, the continued development ofGiga America including costs necessary to obtain conditional credit approval in 2024 for the 24M-based gigafactory from the DOE Title 17 loan program, and pursuing a conventional technology agreement and project to accelerate the path to first revenues and diversify FREYR’s end markets. Timing and amounts of cash outlays could vary depending on the pace and progress of each of these and other initiatives. -
FREYR is now a
U.S. company following completion of redomicile: OnJanuary 2 nd, 2024, FREYR announced that the Company completed the process to redomicile from Luxembourg tothe United States following a shareholder vote at the Company’s extraordinary general meeting onDecember 15, 2023 . FREYR’s Board of Directors believes that redomiciling tothe United States will enhance shareholder value by simplifying FREYR’s corporate structure and reporting requirements; expanding FREYR’s eligibility for inclusion in equity indexes which would trigger associated benchmarking by actively managed funds; aligning the Company more closely withNew York Stock Exchange listing standards andSEC governance requirements; and positioning FREYR to better respond to global tax developments andU.S. incentive programs for battery manufacturers. -
CQP interim milestone: On
October 4, 2023 , FREYR published an operations update indicating that the teams at the CQP had successfully begun automatic electrode casting with solvent slurry. This technically complex step was an important milestone in the ongoing commissioning process at the CQP and a precursor to automated production of functional cells for customer samples at the CQP.
Business update
-
CQP. FREYR’s teams at the CQP, in conjunction with the Company’s vendors and partners, are advancing towards the expected start of functional cell production for customer samples using the full automation of the CQP in H1 2024. As of publication, FREYR has completed handovers of 363 of 388 (94%) discrete production line equipment commissioning and testing packages. With operations under dry room conditions including automated production of electrodes underway and the commissioning process largely complete, the team’s’ collective emphasis has shifted from installation and commissioning the plant to producing functional cells. The remaining 6% of commissioning packages will be finalized upon final handover of the
Casting & Unit Cell Assembly equipment to operations later this year, which is expected to take place after the commencement of functional cell production using the full automation of the CQP.
Results Overview, Financing, and Liquidity
-
FREYR reported net loss attributable to stockholders for the fourth quarter of 2023 of
$(24.2) million , or$(0.17) per diluted share compared to net income for the fourth quarter 2022 of$25.3 million or$0.20 per diluted share. The net loss in the fourth quarter of 2023 was primarily due to corporate overhead, spending to support FREYR's projects and business development activities, research and development spending, and severance and other termination benefits related to our restructuring, partially offset by a$8.5 million non-cash gain on warrant liability fair value adjustment. Net income in the fourth quarter of 2022 was driven by a$59.8 million non-cash gain on warrant liability fair value adjustment. -
For the full year ended
December 31, 2023 , FREYR reported net loss attributable to stockholders of$(71.9) million , or$(0.51) per diluted share compared to net loss of$(98.8) million , or$(0.83) per diluted share for the full year endedDecember 31, 2022 . The net loss in 2023 was primarily due to corporate overhead, spending to support FREYR's projects and business development activities, and research and development spending, partially offset by gains on changes in warranty liabilities and foreign currency gains during the period. -
As of
December 31, 2023 , FREYR had cash, cash equivalents, and restricted cash of$275.7 million .
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones:
-
Commencing production of functional cells for customer samples using the full automation of the CQP in H1 2024 is FREYR’s top strategic priority. Customer validation of the SemiSolid production process at giga scale and acceptance of product performance characteristics are key precursors to anticipated customer offtake conversions and unlocking potential project-level equity and debt financing, including through the DOE Title 17 program, for
GIga America . - Completing the DOE Title 17 application process and securing a conditional commitment from the Loan Programs Office before year-end 2024.
- Formalizing and announcing an agreement with a conventional battery technology solutions provider potentially in H1 2024.
- Targeting the formalization of commercial relationships to trigger development of the project options that are included in the FREYR 2.0 growth initiative.
- Maintaining the Company’s strong balance sheet and liquidity profile while making selected investments to advance FREYR’s strategic development.
Presentation of Fourth Quarter and Full Year 2023 Results
A presentation will be held today,
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:
The participant passcode for the call is: 6712391
A webcast of the conference call will be broadcast simultaneously at https://app.webinar.net/bP012wvryqm 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
Cautionary Statement Concerning Forward-Looking Statements
All statements, other than statements of present or historical fact included in this presentation, including, without limitation, FREYR Battery’s (“FREYR”) ability to achieve automated, functional, customer-testable battery sample cells in H1 2024; scaling the SemiSolid platform as a path to sustainable competitive differentiation; FREYR’S cost and capital efficiency; FREYR’s plan to expand on the battery value chain into high value adjacencies and cultivate partnerships across the cell production technology spectrum; FREYR’s efforts to accelerate the path to commercialization; the pursuit of five major project opportunities in accordance with the FREYR 2.0 growth strategy; potential inorganic growth opportunities and the ability to generate revenue in the near-term through possible acquisitions; approaching milestones at FREYR’s CQP; customer acceptance and validation of the 24M SemiSolid process and product technology; securing a conditional commitment from the
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
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,
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As of |
||||||
|
|
2023 |
|
2022 |
||||
ASSETS |
||||||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
253,339 |
|
|
$ |
443,063 |
|
Restricted cash |
|
|
22,403 |
|
|
|
119,982 |
|
Prepaid assets |
|
|
2,168 |
|
|
|
8,293 |
|
Other current assets |
|
|
34,044 |
|
|
|
8,117 |
|
Total current assets |
|
|
311,954 |
|
|
|
579,455 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
366,357 |
|
|
|
210,777 |
|
Intangible assets, net |
|
|
2,813 |
|
|
|
2,963 |
|
Long-term investments |
|
|
22,303 |
|
|
|
— |
|
Convertible note |
|
|
— |
|
|
|
19,954 |
|
Right-of-use asset under operating leases |
|
|
24,476 |
|
|
|
14,538 |
|
Other long-term assets |
|
|
4,282 |
|
|
|
11 |
|
Total assets |
|
$ |
732,185 |
|
|
$ |
827,698 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
18,113 |
|
|
$ |
6,765 |
|
Accrued liabilities and other |
|
|
30,790 |
|
|
|
51,446 |
|
Share-based compensation liability |
|
|
281 |
|
|
|
4,367 |
|
Total current liabilities |
|
|
49,184 |
|
|
|
62,578 |
|
|
|
|
|
|
||||
Warrant liability |
|
|
2,025 |
|
|
|
33,849 |
|
Operating lease liability |
|
|
18,816 |
|
|
|
11,144 |
|
Other long-term liabilities |
|
|
27,444 |
|
|
|
— |
|
Total liabilities |
|
|
97,469 |
|
|
|
107,571 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1,397 |
|
|
|
— |
|
Ordinary share capital, no par value shares, 245,000 authorized, 139,854 issued, and 139,705 outstanding as of |
|
|
— |
|
|
|
139,854 |
|
Additional paid-in capital |
|
|
925,623 |
|
|
|
772,602 |
|
|
|
|
— |
|
|
|
(1,041 |
) |
Accumulated other comprehensive (loss) income |
|
|
(18,826 |
) |
|
|
9,094 |
|
Accumulated deficit |
|
|
(274,999 |
) |
|
|
(203,054 |
) |
Total stockholders' equity |
|
|
633,195 |
|
|
|
717,455 |
|
|
|
|
|
|
||||
Non-controlling interests |
|
|
1,521 |
|
|
|
2,672 |
|
Total equity |
|
|
634,716 |
|
|
|
720,127 |
|
|
|
|
|
|
||||
Total liabilities and equity |
|
$ |
732,185 |
|
|
$ |
827,698 |
|
|
||||||||||||||||
|
|
Three months ended
|
|
Years ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
General and administrative |
|
$ |
22,728 |
|
|
$ |
29,469 |
|
|
$ |
108,133 |
|
|
$ |
107,357 |
|
Research and development |
|
|
10,162 |
|
|
|
4,380 |
|
|
|
28,457 |
|
|
|
13,574 |
|
Restructuring charge |
|
|
6,016 |
|
|
|
— |
|
|
|
6,016 |
|
|
|
— |
|
Share of net loss of equity method investee |
|
|
171 |
|
|
|
426 |
|
|
|
379 |
|
|
|
1,557 |
|
Total operating expenses |
|
|
39,077 |
|
|
|
34,275 |
|
|
|
142,985 |
|
|
|
122,488 |
|
Loss from operations |
|
|
(39,077 |
) |
|
|
(34,275 |
) |
|
|
(142,985 |
) |
|
|
(122,488 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Warrant liability fair value adjustment |
|
|
8,515 |
|
|
|
59,771 |
|
|
|
31,763 |
|
|
|
14,183 |
|
Convertible note fair value adjustment |
|
|
— |
|
|
|
(544 |
) |
|
|
1,074 |
|
|
|
(277 |
) |
Interest income, net |
|
|
3,907 |
|
|
|
1,691 |
|
|
|
9,949 |
|
|
|
1,780 |
|
Foreign currency transaction gain (loss) |
|
|
309 |
|
|
|
(2,903 |
) |
|
|
20,855 |
|
|
|
2,512 |
|
Other income, net |
|
|
1,889 |
|
|
|
1,227 |
|
|
|
6,918 |
|
|
|
5,171 |
|
Total other income (expense) |
|
|
14,620 |
|
|
|
59,242 |
|
|
|
70,559 |
|
|
|
23,369 |
|
(Loss) income before income taxes |
|
|
(24,457 |
) |
|
|
24,967 |
|
|
|
(72,426 |
) |
|
|
(99,119 |
) |
Income tax expense |
|
|
(329 |
) |
|
|
— |
|
|
|
(670 |
) |
|
|
— |
|
Net (loss) income |
|
|
(24,786 |
) |
|
|
24,967 |
|
|
|
(73,096 |
) |
|
|
(99,119 |
) |
Net loss attributable to non-controlling interests |
|
|
634 |
|
|
|
328 |
|
|
|
1,151 |
|
|
|
328 |
|
Net (loss) income attributable to stockholders |
|
$ |
(24,152 |
) |
|
$ |
25,295 |
|
|
$ |
(71,945 |
) |
|
$ |
(98,791 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
139,705 |
|
|
|
123,455 |
|
|
|
139,705 |
|
|
|
118,474 |
|
Diluted |
|
|
139,705 |
|
|
|
127,889 |
|
|
|
139,705 |
|
|
|
118,474 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.17 |
) |
|
$ |
0.20 |
|
|
$ |
(0.51 |
) |
|
$ |
(0.83 |
) |
Diluted |
|
$ |
(0.17 |
) |
|
$ |
0.20 |
|
|
$ |
(0.51 |
) |
|
$ |
(0.83 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
|
$ |
(24,786 |
) |
|
$ |
24,967 |
|
|
$ |
(73,096 |
) |
|
$ |
(99,119 |
) |
Foreign currency translation adjustments, net of tax |
|
|
20,089 |
|
|
|
26,165 |
|
|
|
(27,920 |
) |
|
|
9,618 |
|
Total comprehensive (loss) income |
|
|
(4,697 |
) |
|
|
51,132 |
|
|
|
(101,016 |
) |
|
|
(89,501 |
) |
Comprehensive loss attributable to non-controlling interests |
|
|
634 |
|
|
|
328 |
|
|
|
1,151 |
|
|
|
328 |
|
Comprehensive (loss) income attributable to stockholders |
|
$ |
(4,063 |
) |
|
$ |
51,460 |
|
|
$ |
(99,865 |
) |
|
$ |
(89,173 |
) |
|
||||||||
|
|
For the years ended |
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(73,096 |
) |
|
$ |
(99,119 |
) |
Adjustments to reconcile net loss to cash used in operating activities: |
|
|
|
|
||||
Share-based compensation expense |
|
|
11,595 |
|
|
|
8,643 |
|
Depreciation and amortization |
|
|
3,344 |
|
|
|
478 |
|
Loss on |
|
|
— |
|
|
|
1,619 |
|
Reduction in the carrying amount of right-of-use assets |
|
|
1,351 |
|
|
|
1,458 |
|
Warrant liability fair value adjustment |
|
|
(31,763 |
) |
|
|
(14,183 |
) |
Convertible note fair value adjustment |
|
|
(1,074 |
) |
|
|
277 |
|
Share of net loss of equity method investee |
|
|
379 |
|
|
|
1,557 |
|
Foreign currency transaction net unrealized gain |
|
|
(19,648 |
) |
|
|
(2,868 |
) |
Other |
|
|
469 |
|
|
|
2 |
|
Changes in assets and liabilities: |
|
|
|
|
||||
Prepaid assets and other current assets |
|
|
4,487 |
|
|
|
(3,664 |
) |
Other long-term assets |
|
|
— |
|
|
|
— |
|
Accounts payable, accrued liabilities and other |
|
|
20,039 |
|
|
|
17,385 |
|
Operating lease liability |
|
|
(4,012 |
) |
|
|
(1,594 |
) |
Net cash used in operating activities |
|
|
(87,929 |
) |
|
|
(90,009 |
) |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from property related grants |
|
|
3,500 |
|
|
|
10,461 |
|
Purchases of property and equipment |
|
|
(187,823 |
) |
|
|
(180,787 |
) |
Investments in equity method investee |
|
|
(1,655 |
) |
|
|
(3,000 |
) |
Asset acquisition, cash acquired |
|
|
— |
|
|
|
300 |
|
Purchases of other long-term assets |
|
|
(1,000 |
) |
|
|
(2,000 |
) |
Net cash used in investing activities |
|
|
(186,978 |
) |
|
|
(175,026 |
) |
|
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from issuance of ordinary shares, net |
|
|
— |
|
|
|
251,124 |
|
Repurchase of treasury shares |
|
|
— |
|
|
|
(1,052 |
) |
Net cash provided by financing activities |
|
|
— |
|
|
|
250,072 |
|
|
|
|
|
|
||||
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash |
|
|
(12,396 |
) |
|
|
12,381 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
|
(287,303 |
) |
|
|
(2,582 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
|
563,045 |
|
|
|
565,627 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
275,742 |
|
|
$ |
563,045 |
|
|
|
|
|
|
||||
Reconciliation to consolidated balance sheets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
253,339 |
|
|
$ |
443,063 |
|
Restricted cash |
|
|
22,403 |
|
|
|
119,982 |
|
Cash, cash equivalents, and restricted cash |
|
$ |
275,742 |
|
|
$ |
563,045 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229252927/en/
Investor contact:
Head of Investor Relations
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: