Advent Technologies Reports Q4 2023 Results
Q4 2023 Financial Highlights
(All comparisons are to Q4 2022, unless otherwise stated)
-
Revenue of
and income from grants of$1.5 million , totaling$0.8 million , which represents a decrease of (3.6)% year-over-year.$2.3 million -
Full year 2023 revenue of
and income from grants of$4.9 million , totaling$2.5 million . This represents a decrease of (20.9)% year-over-year.$7.4 million -
Operating expenses of
, representing a year-over-year decrease of$44.6 million .$1.1 million -
Net loss in Q4 of
or$(25.7) million per share, and adjusted net loss of$(12.04) or$(22.1) million per share. Adjusted net loss excludes a$(10.32) gain from the change in the fair value of outstanding warrants, and a$0.03 million goodwill and intangible asset impairment charge.$3.71 million -
Unrestricted cash reserves were
as of December 31, 2023, a decrease of$3.6 million from September 30, 2023.$0.1 million
“Our product development efforts center around a common core technology: a fuel cell and MEA (membrane electrode assembly) designed to address heavy-duty automotive applications and large-scale stationary systems. Success with our MEA technology is key to unlocking these markets with the right OEM partnerships,” said Dr. Vasilis Gregoriou, Advent’s Chairman and CEO. “Our recent restructuring initiatives have been pivotal in significantly reducing costs. We have already achieved a
Company Updates
Technology Update
The Advent Fuel Cell platform, based on our new Ion Pair™ Membrane Electrode Assembly (MEA), offers superior heat management and the ability to operate with liquid eFuels and biofuels. These unique properties, combined with the MEA’s increased power density, form the basis for breakthrough innovation in the fuel cell industry. Our partnerships with industry leaders such as Airbus, the US Army, Hyundai Motor Company, and Siemens Energy not only validate our technological achievements but also highlight the potential of our technology. Our HT-PEM fuel cell technology is ideal for marine and off-grid power applications, both of which are increasingly adopting methanol. Additionally, our high-temperature operation results in superior efficiency, reaching up to
Operations Update
In the past year, our journey has been marked by a blend of both encouraging and challenging developments. On a positive note, there has been an unprecedented surge in interest across various markets for methanol fuel cells and clean power solutions. However, the financial landscape for clean energy investments has been less favorable, pushing us to seek support through EU infrastructure loans and grants and a private loan from a US-based institutional investor. These processes are typically accompanied by extended bureaucratic processes. Over the years, particularly after our acquisition of Serenergy (
We have closed non-profitable subsidiaries and facilities in
Business Update
Our new approach involves forming joint ventures and technology transfer agreements with major local integrators, Tier 1 suppliers, and OEMs. By focusing on manufacturing the MEA and potentially the fuel cell stack, we are establishing a scalable, low-capex, and high-margin operational framework.
Global Market Expansion and Partnerships
1. Automotive
In the automotive industry, our MEA technology is currently evaluated by four of the top ten global automakers. In addition, our collaboration with Hyundai Motors has progressed to a Joint Development Agreement, and we aim to secure similar agreements with other major automakers by the end of 2024. Our high-temperature fuel cells offer exceptional benefits for trucks and heavy-duty vehicles, particularly in regions with extreme heat.
2. Aerospace
In aerospace, we have established a
3. Defense
In the defense sector, we signed in September and December 2023 two contracts (representing total value to the Company of
4. Marine
Our technology is already deployed in Sanlorenzo’s 50Steel methanol fuel cell superyacht, Almax. We believe methanol, including biomethanol and e-methanol, is crucial for decarbonizing the marine industry. With over 130 methanol projects globally, we anticipate significant adoption in both retrofitted and new yachts.
5. Data Centers
We are also pursuing collaborations with OEMs in the data center off-grid power market, where we believe our fuel cell technology presents distinct advantages. Data centers currently account for 1
We believe that our fuel cells can reduce capex and accelerate deployment by eliminating the need for grid upgrades and extensive permits. Our technology’s multifuel capability allows for immediate deployment with methanol (on green eMethanol), biogas and the option to switch to hydrogen or other fuels We are actively engaging with companies interested in leveraging our HT-PEM technology for large-scale data center projects.
R&D Programs
Our teams are actively engaged in a comprehensive portfolio of 13 research and development programs, with total funding amounting to approximately
Conference Call
The Company will host a conference call on Tuesday, August 20, 2024, at 9:00 AM ET to discuss its results. To access the call please dial (800) 715-9871 from
A replay of the call can also be accessed via phone through September 3, 2024, by dialing (800) 770-2030 from the
About Advent Technologies Holdings, Inc
Advent Technologies Holdings, Inc. is a
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to maintain the listing of the Company’s common stock on Nasdaq; future financial performance; public securities’ potential liquidity and trading; impact from the outcome of any known and unknown litigation; ability to forecast and maintain an adequate rate of revenue growth and appropriately plan its expenses; expectations regarding future expenditures; future mix of revenue and effect on gross margins; attraction and retention of qualified directors, officers, employees and key personnel; ability to compete effectively in a competitive industry; ability to protect and enhance Advent’s corporate reputation and brand; expectations concerning its relationships and actions with technology partners and other third parties; impact from future regulatory, judicial and legislative changes to the industry; ability to locate and acquire complementary technologies or services and integrate those into the Company’s business; future arrangements with, or investments in, other entities or associations; and intense competition and competitive pressure from other companies worldwide in the industries in which the Company will operate; and the risks identified under the heading “Risk Factors” in Advent’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on August 13, 2024, as well as the other information filed with the SEC. Investors are cautioned not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read Advent’s filings with the SEC, available at www.sec.gov , for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. Advent’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with
ADVENT TECHNOLOGIES HOLDINGS, INC. |
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CONSOLIDATED BALANCE SHEETS |
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(Amounts in USD thousands, except share and per share amounts) |
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December 31,
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December 31,
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
|
$ |
3,562 |
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$ |
32,869 |
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Restricted cash, current |
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100 |
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- |
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Accounts receivable, net |
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191 |
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979 |
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Contract assets |
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21 |
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52 |
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Inventories |
|
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2,707 |
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12,620 |
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Prepaid expenses and Other current assets |
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2,254 |
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|
2,980 |
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Total current assets |
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8,835 |
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|
49,500 |
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Non-current assets: |
|
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Goodwill |
|
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- |
|
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|
5,742 |
|
Intangibles, net |
|
|
79 |
|
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|
6,062 |
|
Property and equipment, net |
|
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21,549 |
|
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17,938 |
|
Right-of-use assets |
|
|
3,216 |
|
|
|
4,055 |
|
Restricted cash, non-current |
|
|
750 |
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|
750 |
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Other non-current assets |
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|
308 |
|
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|
5,221 |
|
Available for sale financial asset |
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- |
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|
320 |
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Total non-current assets |
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25,902 |
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|
40,088 |
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Total assets |
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$ |
34,737 |
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|
$ |
89,588 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Trade and other payables |
|
$ |
5,087 |
|
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$ |
4,680 |
|
Deferred income from grants, current |
|
|
530 |
|
|
|
801 |
|
Contract liabilities |
|
|
2,015 |
|
|
|
1,019 |
|
Other current liabilities |
|
|
1,916 |
|
|
|
4,703 |
|
Operating lease liabilities |
|
|
2,186 |
|
|
|
2,280 |
|
Income tax payable |
|
|
179 |
|
|
|
183 |
|
Total current liabilities |
|
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11,913 |
|
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|
13,666 |
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Non-current liabilities: |
|
|
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Warrant liability |
|
|
59 |
|
|
|
998 |
|
Long-term operating lease liabilities |
|
|
8,230 |
|
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|
9,802 |
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Defined benefit obligation |
|
|
83 |
|
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|
72 |
|
Deferred income from grants, non-current |
|
|
320 |
|
|
|
50 |
|
Other long-term liabilities |
|
|
684 |
|
|
|
852 |
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Total non-current liabilities |
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|
9,376 |
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|
11,774 |
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Total liabilities |
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|
21,289 |
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|
25,440 |
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Commitments and contingent liabilities |
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Stockholders’ equity |
|
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Common stock ( |
|
|
8 |
|
|
|
5 |
|
Preferred stock ( |
|
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
|
194,933 |
|
|
|
174,509 |
|
Accumulated other comprehensive loss |
|
|
(2,334 |
) |
|
|
(2,604 |
) |
Accumulated deficit |
|
|
(179,159 |
) |
|
|
(107,762 |
) |
Total stockholders’ equity |
|
|
13,448 |
|
|
|
64,148 |
|
Total liabilities and stockholders’ equity |
|
$ |
34,737 |
|
|
$ |
89,588 |
|
ADVENT TECHNOLOGIES HOLDINGS, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts in USD thousands, except share and per share amounts) |
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Three months ended December 31, |
Years Ended December 31, |
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(Unaudited) |
(Unaudited) |
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2023 |
2022 |
2023 |
2022 |
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Revenue, net |
$ |
1,506 |
|
$ |
1,957 |
|
$ |
4,859 |
|
$ |
7,837 |
Cost of revenues |
(12,442) |
(2,455) |
(18,287) |
(8,581) |
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Gross profit / (loss) |
|
(10,936) |
|
|
(498) |
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|
(13,428) |
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|
(744) |
Income from grants |
814 |
449 |
2,504 |
1,460 |
|||||||
Research and development expenses |
|
(3,957) |
|
|
(2,458) |
|
|
(12,112) |
|
|
(9,796) |
Administrative and selling expenses |
(6,732) |
(9,258) |
(32,468) |
(35,915) |
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Sublease income |
|
139 |
|
|
- |
|
|
543 |
|
|
- |
Amortization of intangible assets |
|
(116) |
|
|
(651) |
|
|
(642) |
|
|
(2,764) |
Credit loss – customer contracts |
|
(1,207) |
|
|
(1,116) |
|
|
(1,270) |
|
|
(1,116) |
Gain from purchase price adjustment |
|
- |
|
|
2,370 |
|
|
- |
|
|
2,370 |
Impairment losses |
|
(3,705) |
|
|
(38,922) |
|
|
(13,468) |
|
|
(38,922) |
Operating loss |
|
(25,700) |
|
(50,084) |
|
(70,341) |
|
(85,427) |
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Fair value change of warrant liability |
|
39 |
|
|
2,127 |
|
|
394 |
|
|
9,375 |
Finance income / (expenses), net |
(44) |
61 |
74 |
52 |
|||||||
Foreign exchange gains / (losses), net |
|
(9) |
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|
(40) |
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|
97 |
|
|
(91) |
Other income / (expenses), net |
(19) |
4 |
(902) |
(216) |
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Loss before income tax |
|
(25,733) |
|
|
(47,932) |
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|
(70,678) |
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|
(76,307) |
Income taxes |
1 |
307 |
(719) |
1,970 |
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Net loss |
$ |
(25,732) |
|
$ |
(47,625) |
|
$ |
(71,397) |
|
$ |
(74,337) |
Net loss per share |
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Basic loss per share |
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(12.04) |
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(27.63) |
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(37.24) |
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|
(43.28) |
Basic weighted average number of shares |
2,136,840 |
1,723,924 |
1,917,179 |
1,717,623 |
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Diluted loss per share |
|
(12.04) |
|
|
(27.63) |
|
|
(37.24) |
|
|
(43.28) |
Diluted weighted average number of shares |
2,136,840 |
1,723,924 |
1,917,179 |
1,717,623 |
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ADVENT TECHNOLOGIES HOLDINGS, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Amounts in USD thousands) |
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Years Ended December 31, (Unaudited) |
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2023 |
2022 |
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Net Cash used in Operating Activities |
$ |
(32,115) |
$ |
(32,125) |
|
Cash Flows from Investing Activities: |
|
|
|
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Proceeds from sale of property and equipment |
|
256 |
|
- |
|
Purchases of property and equipment |
(3,371) |
(11,527) |
|||
Purchases of intangible assets |
|
- |
|
(117) |
|
Advances for the acquisition of property and equipment |
(1,255) |
(2,557) |
|||
Acquisition of a subsidiary, net of cash acquired |
|
(1,864) |
|
- |
|
Acquisition of available for sale financial assets |
- |
(316) |
|||
Net Cash used in Investing Activities |
$ |
(6,234) |
$ |
(14,517) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
Issuance of common stock and paid-in capital, net of issuance costs paid |
9,059 |
- |
|||
Repayments of debt |
|
- |
|
(40) |
|
Net Cash (used in) provided by Financing Activities |
$ |
9,059 |
$ |
(40) |
|
Net (decrease) / increase in cash, cash equivalents, restricted cash and restricted cash equivalents |
$ |
(29,290) |
$ |
(46,682) |
|
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents |
83 |
537 |
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Cash, cash equivalents, restricted cash and restricted cash equivalents at the beginning of year |
|
33,619 |
|
79,764 |
|
Cash, cash equivalents, restricted cash and restricted cash equivalents at the end of year |
$ |
4,412 |
$ |
33,619 |
Supplemental Non-GAAP Measures and Reconciliations
In addition to providing measures prepared in accordance with GAAP, we present certain supplemental non-GAAP measures. These measures are EBITDA, Adjusted EBITDA and Adjusted Net Income / (Loss), which we use to evaluate our operating performance, for business planning purposes and to measure our performance relative to that of our peers. These non-GAAP measures do not have any standardized meaning prescribed by GAAP and therefore may differ from similar measures presented by other companies and may not be comparable to other similarly titled measures. We believe these measures are useful in evaluating the operating performance of the Company’s ongoing business. These measures should be considered in addition to, and not as a substitute for net income, operating expense and income, cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. The calculation of these non-GAAP measures has been made on a consistent basis for all periods presented.
EBITDA and Adjusted EBITDA
These supplemental non-GAAP measures are provided to assist readers in determining our operating performance. We believe this measure is useful in assessing performance and highlighting trends on an overall basis. We also believe EBITDA and Adjusted EBITDA are frequently used by securities analysts and investors when comparing our results with those of other companies. EBITDA differs from the most comparable GAAP measure, net income / (loss), primarily because it does not include interest, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets. Adjusted EBITDA adjusts EBITDA for one-time transaction costs, asset impairment charges, changes in warrant liability, and executive severance.
The following tables show a reconciliation of net income / (loss) to EBITDA and Adjusted EBITDA for the three months and years ended December 31, 2023 and 2022.
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Three months ended December 31, |
Years Ended December 31, |
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EBITDA and Adjusted EBITDA |
(Unaudited) |
(Unaudited) |
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(in Millions of |
|
2023 |
2022 |
$ change |
2023 |
2022 |
$ change |
||||||
Net loss |
$ |
(25.73) |
|
$ |
(47.63) |
21.90 |
$ |
(71.40) |
|
$ |
(74.34) |
2.94 |
|
Depreciation of property and equipment |
$ |
0.91 |
$ |
0.36 |
0.55 |
$ |
3.01 |
$ |
1.49 |
1.52 |
|||
Amortization of intangibles |
$ |
0.11 |
|
$ |
0.65 |
(0.54) |
$ |
0.64 |
|
$ |
2.76 |
(2.12) |
|
Finance income / (expenses), net |
$ |
0.05 |
$ |
(0.06) |
0.11 |
$ |
(0.07) |
$ |
(0.05) |
(0.02) |
|||
Other income / (expenses), net |
$ |
0.02 |
|
$ |
0.00 |
0.02 |
$ |
0.90 |
|
$ |
0.22 |
0.68 |
|
Foreign exchange differences, net |
$ |
0.01 |
$ |
0.04 |
(0.03) |
$ |
(0.10) |
$ |
0.09 |
(0.19) |
|||
Income taxes |
$ |
- |
|
$ |
(0.31) |
0.31 |
$ |
0.72 |
|
$ |
(1.97) |
2.69 |
|
EBITDA |
$ |
(24.63) |
|
$ |
(46.95) |
22.32 |
$ |
(66.30) |
|
$ |
(71.80) |
5.50 |
|
Net change in warrant liability |
$ |
(0.03) |
|
$ |
(2.13) |
2.10 |
$ |
(0.39) |
|
$ |
(9.38) |
8.99 |
|
Gain from purchase price adjustment |
$ |
- |
|
$ |
(2.37) |
2.37 |
$ |
- |
|
$ |
(2.37) |
2.37 |
|
Impairment loss – intangible assets and goodwill |
$ |
3.71 |
|
$ |
38.92 |
(35.21) |
$ |
13.47 |
|
$ |
38.92 |
(25.45) |
|
Adjusted EBITDA |
$ |
(20.95) |
|
$ |
(12.53) |
(8.42) |
$ |
(53.22) |
|
$ |
(44.63) |
(8.59) |
Adjusted Net Income / (Loss)
This supplemental non-GAAP measure is provided to assist readers in determining our financial performance. We believe this measure is useful in assessing performance and highlighting trends on an overall basis. Adjusted Net Loss differs from the most comparable GAAP measure, net income / (loss), primarily because it does not include one-time transaction costs, asset impairment charges, changes in warrant liability, and executive severance. The following table shows a reconciliation of net income / (loss) for the three months and years ended December 31, 2023 and 2022.
Three months ended December 31, |
Years Ended December 31, |
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Adjusted Net Loss |
(Unaudited) |
(Unaudited) |
|||||||||||
(in Millions of |
2023 |
2022 |
$ change |
2023 |
2022 |
$ change |
|||||||
Net loss |
$ |
(25.73) |
$ |
(47.63) |
21.90 |
$ |
(71.40) |
$ |
(74.34) |
2.94 |
|||
Net change in warrant liability |
$ |
(0.03) |
$ |
(2.13) |
2.10 |
$ |
(0.39) |
$ |
(9.38) |
8.99 |
|||
Gain from purchase price adjustment |
$ |
- |
$ |
(2.37) |
2.37 |
$ |
- |
$ |
(2.37) |
2.37 |
|||
Impairment loss – intangible assets and goodwill |
$ |
3.71 |
$ |
38.92 |
(35.21) |
$ |
13.47 |
$ |
38.92 |
(25.45) |
|||
Adjusted Net Loss |
$ |
(22.05) |
$ |
(13.21) |
(8.84) |
$ |
(58.32) |
$ |
(47.17) |
(11.15) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240820647258/en/
Advent Technologies Holdings, Inc.
Michael Trontzos
press@advent.energy
Source: Advent Technologies Inc.