ESS Inc. Announces Third Quarter 2021 Financial Results
ESS Tech Inc. (NYSE:GWH) reported strong third-quarter results for 2021, marking significant milestones after its recent public listing. Highlights include securing an additional 45,000 sq/ft of manufacturing space and identifying over $8 billion in global opportunities. The company’s backlog remains robust, with over 72% of customers in the pipeline classified as booked or awarded. ESS completed a business combination with ACON S2 Acquisition Corp, resulting in $246 million of cash. Key contracts include partnerships with TerraSol Energies and Enel Green Power, further establishing ESS’s position in long-duration energy storage.
- Secured 45,000 sq/ft of manufacturing space in Wilsonville, OR.
- Identified global opportunities exceeding $8 billion, up from $7 billion in Q2.
- 72%+ of customers in the pipeline are classified as booked or awarded.
- Increased total company headcount by more than 30% in Q3.
- Closed business combination with ACON S2, resulting in $246 million cash.
- Contract with Enel Green Power España to deliver 17 battery systems for a solar farm in Spain.
- Supply constraints remain a concern for manufacturers, including ESS.
Product shipments and deployments remain on schedule
“ESS made immense progress in the third quarter and, in October, became the first publicly traded
Recent Operational Highlights
-
Secured an additional 45,000 sq/ft of manufacturing space in
Wilsonville, OR -
Global identified opportunities in excess of
$8 billion $7 billion -
Customers continue to mature through pipeline for 2022 with
72% + classified as booked or awarded -
Successful hiring efforts led to a more than
30% increase in total company headcount in Q3
1 |
Our |
Third Quarter 2021 Business Highlights
-
ESS finalized the business combination with ACON S2 Acquisition Corp. on
October 11, 2021 , and its shares and warrants began trading on theNew York Stock Exchange (“NYSE”) under the new ticker symbols “GWH” and “GWH.W”, respectively. The closing of the business combination resulted in cash received of$246 million 100% of their equity holdings into the new public company. -
On
August 3, 2021 , ESS announced it was selected byTerraSol Energies, Inc. , a developer and manager of turnkey solar and storage solutions for commercial customers, to deliver anESS Energy Warehouse flow battery at a commercial facility inPennsylvania .The Energy Warehouse system will be integrated with solar PV as part of a microgrid to reduce electricity demand charges and provide safe, sustainable backup power toSycamore International , an Information Technology Asset Disposition (ITAD) company with a focus on data security. -
On
September 16, 2021 , ESS announced expanded coverage of its industry-leading 10-year warranty insurance coverage for its Energy Center product through Munich Re, the world’s largest reinsurance company. The innovative policy provides a warranty backstop for ESS Inc.’s proprietary flow battery technology and electrolyte management system, supporting the system performance guarantee regardless of project size or location. ESS has also collaborated with Munich Re to similarly expand its Project Cover to ensure a bankable product offering for the Energy Center. The Cover eliminates any technology or business continuity risk for operators and can be extended to provide long-term assurance of project performance to system owners, investors and lenders. -
On
September 23, 2021 , ESS announced a contract with Enel Green Power España to deliver 17ESS Energy Warehouse iron flow battery systems, which will be used to support a solar farm inSpain as a part of a broader EU-wide engagement, providing resilience for the local power grid. With a combined capacity of 8.5 MWh, the ESS systems will be among the largest battery storage resources inSpain . -
On
September 30, 2021 , ESS announced that it has entered into a framework agreement with SB Energy, a wholly owned subsidiary of SoftBank Group Corp, to deploy 2 GWh of ESS batteries through 2026. The first ESS system has already been delivered to an SB Energy location inDavis, California , and is currently being commissioned. SB Energy plans to install additional ESS flow battery systems to complement its expanding portfolio of solar power projects inTexas andCalifornia .
About
Forward-Looking Statements
This communication contains certain forward-looking statements, including statements regarding ESS’ and its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. 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. These forward-looking statements are based on ESS’ current expectations and beliefs concerning future developments and their potential effects on ESS. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. There can be no assurance that the future developments affecting ESS will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond ESS’ control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Certain of these risks are identified and discussed in the section titled “Risk Factors” in the definitive proxy statement/prospectus filed by ACON S2 Acquisition Corp. with the
| Condensed Balance Sheets | |||||||||
| (In thousands, except share data) | |||||||||
| As of | |||||||||
2021 (Unaudited) |
2020 |
||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ |
8,019 |
|
$ |
4,901 |
|
|||
| Restricted cash |
|
1,217 |
|
|
1,167 |
|
|||
| Prepaid expenses and other current assets |
|
6,506 |
|
|
793 |
|
|||
| Total current assets |
|
15,742 |
|
|
6,861 |
|
|||
| Property and equipment, net |
|
2,007 |
|
|
1,836 |
|
|||
| Restricted cash |
|
75 |
|
|
326 |
|
|||
| TOTAL ASSETS | $ |
17,824 |
|
$ |
9,023 |
|
|||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ |
3,037 |
|
$ |
522 |
|
|||
| Accrued and other current liabilities |
|
4,595 |
|
|
2,194 |
|
|||
| Notes payable, current |
|
23,415 |
|
|
5,678 |
|
|||
| Total current liabilities |
|
31,047 |
|
|
8,394 |
|
|||
| Notes payable, non-current |
|
2,253 |
|
|
19 |
|
|||
| Other non-current liabilities |
|
3,662 |
|
|
2,258 |
|
|||
| Derivative liabilities |
|
248,450 |
|
|
22,911 |
|
|||
| Warrant liabilities |
|
- |
|
|
3,329 |
|
|||
| Total liabilities |
|
285,412 |
|
|
36,911 |
|
|||
| COMMITMENTS AND CONTINGENCIES (NOTE 5) | |||||||||
| REDEEMABLE CONVERTIBLE PREFERRED STOCK: | |||||||||
| Redeemable convertible preferred stock ( |
|||||||||
| 61,436,037 shares authorized, 38,768,389 and 32,865,949 shares | |||||||||
| issued and outstanding, liquidation preferences of |
|||||||||
|
90,073 |
|
|
34,372 |
|
||||
| STOCKHOLDERS' DEFICIT: | |||||||||
| Common stock ( |
|||||||||
| as of |
|||||||||
| 9,125,954 and 7,134,668 shares issued and outstanding | |||||||||
| as of September, 2021 and |
|
1 |
|
|
1 |
|
|||
| Common stock warrants |
|
- |
|
|
153 |
|
|||
| Additional paid-in capital |
|
2,516 |
|
|
1,079 |
|
|||
| Accumulated deficit |
|
(360,178 |
) |
|
(63,493 |
) |
|||
| Total stockholders' deficit |
|
(357,661 |
) |
|
(62,260 |
) |
|||
| TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT | $ |
17,824 |
|
$ |
9,023 |
|
|||
| Condensed Statements of Operations and Comprehensive Loss | ||||||||||||||||
| (Unaudited, in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | $ |
7,672 |
|
$ |
3,935 |
|
$ |
19,546 |
|
$ |
8,903 |
|
||||
| Sales and marketing |
|
1,048 |
|
|
279 |
|
|
2,261 |
|
|
876 |
|
||||
| General and administrative |
|
2,316 |
|
|
630 |
|
|
7,667 |
|
|
2,178 |
|
||||
| Total operating expenses |
|
11,036 |
|
|
4,844 |
|
|
29,474 |
|
|
11,957 |
|
||||
| Loss from operations |
|
(11,036 |
) |
|
(4,844 |
) |
|
(29,474 |
) |
|
(11,957 |
) |
||||
| Other income (expense): | ||||||||||||||||
| Interest expense, net |
|
(1,582 |
) |
|
(38 |
) |
|
(1,693 |
) |
|
(106 |
) |
||||
| Gain (loss) on revaluation of warrant liabilities |
|
(2,949 |
) |
|
24 |
|
|
(17,753 |
) |
|
78 |
|
||||
| Gain (loss) on revaluation of derivative liabilities |
|
(36,703 |
) |
|
2,089 |
|
|
(248,691 |
) |
|
5,849 |
|
||||
| Other income (expense), net |
|
945 |
|
|
(2 |
) |
|
926 |
|
|
(64 |
) |
||||
| Total other income (expense) |
|
(40,289 |
) |
|
2,073 |
|
|
(267,211 |
) |
|
5,757 |
|
||||
| Loss before income taxes |
|
(51,325 |
) |
|
(2,771 |
) |
|
(296,685 |
) |
|
(6,200 |
) |
||||
| Provision for income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Net loss and comprehensive loss | $ |
(51,325 |
) |
$ |
(2,771 |
) |
$ |
(296,685 |
) |
$ |
(6,200 |
) |
||||
| Net loss per share - basic and diluted | $ |
(5.82 |
) |
$ |
(0.39 |
) |
$ |
(35.08 |
) |
$ |
(0.87 |
) |
||||
| Weighted average shares used in per share calculation | ||||||||||||||||
| - basic and diluted |
|
8,823,458 |
|
|
7,102,536 |
|
|
8,458,054 |
|
|
7,099,532 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211115006337/en/
Investors:
investors@essinc.com
Media:
978-750-0333 x.101
gene@trevicomm.com
Source:
FAQ
What were ESS Tech's financial results for Q3 2021?
How has ESS Tech expanded its manufacturing capabilities?
What is the significance of ESS Tech's business combination with ACON S2?
What partnerships has ESS Tech announced recently?
How many customers are in ESS Tech's pipeline for 2022?
