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 |
|
|
|
|
||||
|
|
|
|
|
||||
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/