Nuvve Provides First Quarter 2024 Financial Update

Rhea-AI Summary

Nuvve Holding Corp. (NVVE), a green energy technology company, released its Q1 2024 financial update. Key highlights include the deployment of their 500th electric school bus EVSE, increased managed megawatts by 6.0% to 26.6 MW, and selection for Fresno EOC's $16M fleet project. However, Q1 revenue fell 58% to $0.78M from $1.85M in Q1 2023, primarily due to lower product and services sales. Operating expenses excluding cost of sales fell to $7.5M from $8.3M in Q1 2023. The net loss decreased 12.2% to $6.7M from $7.7M. Cash reserves stood at $5.3M as of March 31, 2024.

Positive

• Deployment of 500th electric school bus EVSE.
• Increased managed megawatts by 6.0% to 26.6 MW as of March 31, 2024.
• Selected for Fresno EOC's $16M 50-shuttle fleet project.
• Operating expenses excluding cost of sales decreased to $7.5M from $8.3M in Q1 2023.
• Net loss decreased by 12.2% to $6.7M from $7.7M in Q1 2023.

Negative

• Total revenue decreased 58% to $0.78M from $1.85M in Q1 2023.
• Products revenue decreased by $0.95M, and services revenue decreased by $0.1M.
• Cost of products and services revenue fell to $0.5M, down 65.1% from $1.5M in Q1 2023.
• Research and development expenses decreased by 24.3% to $1.6M from $2.1M.
• Cash reserves stood at $5.3M as of March 31, 2024, indicating potential liquidity concerns.

Insights

Financial Analyst

The financial update from Nuvve Holding Corp. presents a mixed bag for investors. On one hand, the company has made notable strides in some operational metrics, such as deploying their 500th electric school bus EVSE and securing a $16 million project with Fresno EOC. These achievements demonstrate the company’s capability to grow its footprint in the EV space.

However, the financials paint a challenging picture. The revenues have decreased by 58% from $1.85 million in Q1 2023 to $0.78 million in Q1 2024. This significant drop primarily stems from lower customer sales orders and shipments. The drop in revenue, despite a slight increase in product and services margin to 26.8%, indicates that the company is struggling to maintain its sales momentum. Furthermore, Nuvve’s net loss, though reduced, remains substantial at $6.7 million.

From an investor’s perspective, the company's cash reserves of $5.3 million might raise concerns, especially considering the need for ongoing investments in R&D and growth initiatives. Despite reduced operating expenses, the sustainability of these cost cuts and their impact on the company’s future growth need to be scrutinized.

While the company’s efforts to manage costs and improve margins are commendable, the decline in revenue and the substantial net loss highlight ongoing financial challenges. Investors should closely monitor whether the new projects and operational improvements translate into better financial performance in the upcoming quarters.

Tech Expert

Nuvve's progress in deploying its V2G technology and expanding its megawatts under management is promising from a technical standpoint. The deployment of the 500th electric school bus EVSE and the integration of their GIVe™ software platform showcase the company's commitment to advancing EV infrastructure. The partnership with Fresno EOC, which includes an ambitious project featuring 50 electric shuttles and a comprehensive energy management system, is a testament to Nuvve's technical capabilities.

The company's V2G technology not only enables better management of electric grids but also provides potential revenue streams by storing and reselling unused energy. This technology could be a game-changer in the EV industry, offering significant value to fleet operators and grid managers. However, it is important for Nuvve to scale this technology effectively and demonstrate tangible financial benefits to gain investor confidence.

Additionally, increasing the megawatts under management from 25.1 MW to 26.6 MW shows incremental progress, but the pace of growth needs acceleration to make a more substantial impact. The success of the Fresno EOC project and similar initiatives will be essential in proving the scalability and financial viability of Nuvve's solutions.

In summary, while Nuvve's technical achievements are impressive, the real test lies in translating these advancements into strong financial performance and wider market adoption.

Market Research Analyst

Nuvve's recent developments highlight its strategic efforts to penetrate the commercial EV market. The deployment of the 500th school bus EVSE and the contract with Fresno EOC for a fleet electrification program underscore the company’s focus on large-scale projects. These initiatives align well with the growing trend towards electrification in transportation, driven by regulatory pressures and sustainability goals.

However, the significant decline in revenue is a red flag. It suggests that despite operational achievements, market demand for Nuvve’s products and services is not keeping pace. This discrepancy could be due to several factors, including market competition, pricing strategies, or delays in customer procurement decisions, as mentioned regarding the EPA's Clean School Bus Program.

For retail investors, it's important to understand that while Nuvve is operating in a high-growth industry, the financial performance needs to catch up. Monitoring how the company leverages its recent projects to drive revenue growth and how it manages its cash reserves will be key. If Nuvve can convert its technical and operational successes into robust financial metrics, it could offer substantial long-term value. However, the current financials warrant a cautious approach.

Investor Conference Call to be Held Today at 5:00 PM Eastern Time (2:00 PM PT)

SAN DIEGO, May 14, 2024 /PRNewswire/ -- Nuvve Holding Corp. (Nuvve) (Nasdaq: NVVE), a green energy technology company that provides a globally-available, commercial vehicle-to-grid (V2G) technology platform that enables electric vehicle (EV) batteries to store and resell unused energy back to the local electric grid and provides other grid services, today provided a first quarter 2024 update. 

 First Quarter Highlights and Recent Developments

• Celebrated the 500^th electric school bus EVSE to be deployed which will be managed through its proprietary GIVe™ bidirectional, smart-charging software platform
• Selected to implement its turnkey fleet electrification program for Fresno EOC's $16M 50-shuttle fleet project
• Increased megawatts under management by 6.0% to 26.6 megawatts as of March 31, 2024 from 25.1 megawatts on December 31, 2023
• Reduced operating expenses excluding cost of sales in first quarter 2024 to $7.5 million compared to $8.3 million in first quarter 2023
• Cash and cash equivalents of $5.3 million as of March 31, 2024

Management Discussion

Gregory Poilasne, Chief Executive Officer of Nuvve, said, "We positively jump-started 2024 by celebrating our 500^th electric school bus EVSE to be deployed which will be managed through our proprietary GIVe™ bidirectional, smart-charging software platform.  The momentum continued when we were informed by the Board of the Fresno Economic Opportunities Commission (EOC) that we were selected to implement our turnkey fleet electrification program for their 50-shuttle fleet. This solution is planned to include 50 electric Class-A shuttles, a 2.5-megawatt on-site solar generation system, a battery storage system, DC fast chargers, and our GIVe™ software platform and V2G technology. With delayed announcements from the EPA on second round winners of the Clean School Bus Program, K-12 customers adjusted their procurement decisions accordingly. We continue to proactively communicate with current and prospective K-12 customers, ensuring they have everything they need from Nuvve to make the best decision for their EVSE needs." 

2024 First Quarter Financial Review

Total revenue was $0.78 million for the three months ended March 31, 2024, compared to $1.85 million for the three months ended March 31, 2023, a decrease of $1.08 million, or 58.0%. The decrease was primarily attributable to a $0.95 million decrease in products revenue and $0.1 million decrease in services revenue due to lower customers sales orders and shipments. Products and services revenue for the three months ended March 31, 2024, consisted of DC and AC Chargers of $0.48 million, grid services revenue of $0.04 million, and engineering services of $0.18 million.

Cost of products and services revenue for the three months ended March 31, 2024, decreased by $1.0 million to $0.5 million, or 65.1% compared to $1.5 million for the three months ended March 31, 2023 due to lower customers sales orders and shipments. Products and services margin increased by 8.9% to 26.8% for the three months ended March 31, 2024, compared to 17.9% in the same prior year period. Margin benefited from a lower mix of hardware charging stations' sales and a higher mix of engineering services in the current quarter compared with the first quarter of 2023.   

Selling, general and administrative expenses consist of selling, marketing, advertising, payroll, administrative, legal, finance, and professional expenses. Selling, general and administrative expenses were $5.9 million for the three months ended March 31, 2024, as compared to $6.2 million for the three months ended March 31, 2023, a decrease of $0.3 million, or 4.0%. 

The decrease during the three months ended March 31, 2024 was primarily attributable to decreases in insurance related expenses of $0.1 million, decreases in public company related costs of $0.1 million, decreases in office related expenses of $0.1 million, decreases in subcontractor and outside services expenses of $0.3 million, and decreases in travel and marketing/promotions related expenses of $0.2 million, partially offset by increases in compensation expenses of $0.6 million, including share-based compensation. Expenses resulting from the consolidation of Levo's activities during the three months ended March 31, 2024, accounted for $0.2 million of the decrease in selling, general and administrative expenses.

Research and development expenses decreased by $0.5 million, or 24.3%, from $2.1 million for the three months ended March 31, 2023 to $1.6 million for the three months ended March 31, 2024. The decrease during the three months ended March 31, 2024 was primarily attributable to decreases in compensation expenses and subcontractor expenses used to advance our platform functionality and integration with more vehicles.

Other income, net consists primarily of interest expense, change in fair value of warrants liability and derivative liability, and other income (expense). Other income, net increased by $0.3 million from $0.2 million of other income for the three months ended March 31, 2023, to $0.5 million in other income for the three months ended March 31, 2024. The increase during the three months ended March 31, 2024 was primarily attributable to the change in fair value of the warrants liability, partially offset by sublease income related to the subleasing of part of our main office space.

Net loss decreased by $0.9 million, or 12.2%, from $7.7 million for the three months ended March 31, 2023, to $6.7 million for the three months ended March 31, 2024. The decrease in net loss was primarily due to an increase in other income of $0.3 million, and a decrease in operating expenses of $1.7 million, which includes a decrease in cost of product and services of $1.0 million, partially offset by decrease in revenue of $1.1 million, for the above aforementioned reasons.

Net Income (Loss) Attributable to Non-Controlling Interest

Net loss attributable to non-controlling interest was $0.01 million for the three months ended March 31, 2024 compared to net income attributable to non-controlling interest of $0.01 million for the three months ended March 31, 2023.

Net income (loss) is allocated to non-controlling interests in proportion to the relative ownership interests of the holders of non-controlling interests in Levo, an entity formed by us with Stonepeak and Evolve. We own 51% of Levo's common units and Stonepeak and Evolve own 49% of Levo's common units. We have determined that Levo is a variable interest entity ("VIE") in which we are the primary beneficiary. Accordingly, we consolidated Levo and recorded a non-controlling interest for the share of Levo owned by Stonepeak and Evolve during the three months ended March 31, 2024.  

Megawatts Under Management

Megawatts under management refers to the potential available charging capacity Nuvve is currently managing around the world.

Conference Call Details

The Company will hold a conference call to review its financial results for the first quarter of 2024, along with other Company developments, at 5:00 PM Eastern Time (2:00 PM PT) today, Tuesday, May 14, 2024.

To participate, please register for and listen via a live webcast, which is available in the 'Events' section under the 'News & Events' tab of Nuvve's investor relations website at https://investors.nuvve.com/. In addition, a replay of the call will be made available for future access.

About Nuvve Holding Corp.

Nuvve Holding Corp. (Nasdaq: NVVE) is leading the electrification of the planet, beginning with transportation, through its intelligent energy platform. Combining the world's most advanced vehicle-to-grid (V2G) technology and an ecosystem of electrification partners, Nuvve dynamically manages power among electric vehicle (EV) batteries and the grid to deliver new value to EV owners, accelerate the adoption of EVs, and support the world's transition to clean energy. By transforming EVs into mobile energy storage assets and networking battery capacity to support shifting energy needs, Nuvve is making the grid more resilient, enhancing sustainable transportation, and supporting energy equity in an electrified world. Since its founding in 2010, Nuvve has successfully deployed V2G on five continents and offers turnkey electrification solutions for fleets of all types. Nuvve is headquartered in San Diego, California, and can be found online at nuvve.com.

Nuvve and associated logos are among the trademarks of Nuvve and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "aims," "anticipates," "plans," "looking forward to," "estimates," "projects," "assumes," "guides," "targets," "forecasts," "continue," "seeks" or the negatives of such terms or other variations on such terms or comparable terminology, although not all forward-looking statements contain such identifying words. Forward-looking statements include, but are not limited to, statements concerning Nuvve's expectations, plans, intentions, strategies, prospects, business plans, product and service offerings, new deployments, potential project successes, expected timing of recently announced projects, anticipated growth of various business areas and other statements that are not historical facts. Nuvve cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Nuvve. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially.  Some of these risks and uncertainties can be found in Nuvve's most recent Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC). Copies of these filings are available online at www.sec.gov, https://investors.nuvve.com or on request from Nuvve. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Nuvve's filings with the SEC. Such forward-looking statements speak only as of the date made, and Nuvve disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in this press release.

Trademarks

This press release contains trademarks, service marks, trade names and copyrights of Nuvve and other companies, which are the property of their respective owners.

Nuvve Investor Contact
investorrelations@nuvve.com
+1 (619) 483-3448

Nuvve Press Contacts
press@nuvve.com
+1 (619) 483-3448 

FINANCIAL TABLES FOLLOW

 

NUVVE HOLDING CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	March 31, 2024		December 31, 2023
Assets
Current assets
Cash	$                5,283,031		$                1,534,660
Restricted cash	480,000		480,000
Accounts receivable, net	1,281,024		1,724,899
Inventories	6,082,633		5,889,453
Prepaid expenses	826,601		994,719
Deferred costs	1,455,821		1,667,602
Other current assets	686,010		751,412
Total current assets	16,095,120		13,042,745
Property and equipment, net	750,347		766,264
Intangible assets, net	1,167,343		1,202,203
Investment in equity securities	670,951		670,951
Investment in leases	109,606		112,255
Right-of-use operating lease assets	4,717,550		4,839,526
Financing receivables	—		288,872
Security deposit, long-term	25,832		27,690
Total assets	$              23,536,749		$              20,950,506
Liabilities, Mezzanine Equity and Stockholders' Equity
Current liabilities
Accounts payable	$                1,478,830		$                1,694,325
Due to customers	—		—
Accrued expenses	5,264,444		4,632,101
Deferred revenue	1,079,530		1,030,056
Operating lease liabilities - current	851,813		856,250
Other liabilities	105,573		105,141
Total current liabilities	8,780,190		8,317,873
Operating lease liabilities - noncurrent	4,530,861		4,646,383
Warrants liability	3,069,277		4,621
Derivative liability - non-controlling redeemable preferred shares	321,261		309,728
Other long-term liabilities	754,819		681,438
Total liabilities	17,456,408		13,960,043
Commitments and Contingencies
Mezzanine equity
Redeemable non-controlling interests, preferred shares, zero par value, 1,000,000 shares authorized, 3,138 shares issued and outstanding at      March 31, 2024 and December 31, 2023; aggregate liquidation preference of $3,825,205 and  $3,750,201 at March 31, 2024 and December 31,      2023, respectively	4,355,095		4,193,629
Class D Incentive units, zero par value, 1,000,000 units authorized; 50,000 units issued and outstanding at March 31, 2024 and December 31,      2023, respectively	247,455		216,229
Stockholders' equity
Preferred stock, $0.0001 par value, 1,000,000 shares authorized;  zero shares issued and outstanding at March 31, 2024 and December 31, 2023,       respectively	—		—
Common stock, $0.0001 par value, 100,000,000 shares authorized; 6,070,642 and 1,246,589 shares issued and outstanding at March 31, 2024 and       December 31, 2023, respectively	6,357		5,927
Additional paid-in capital	161,491,576		155,615,962
Accumulated other comprehensive income	80,025		93,676
Accumulated deficit	(154,955,297)		(148,240,859)
Nuvve Holding Corp. Stockholders' Equity	6,622,661		7,474,706
Non-controlling interests	(5,144,870)		(4,894,101)
Total stockholders' equity	1,477,791		2,580,605
Total Liabilities, Mezzanine Equity and Stockholders' Equity	$              23,536,749		$              20,950,506

 

NUVVE HOLDING CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three Months Ended March 31,
	2024		2023
Revenue
Products	$             476,469		$              1,428,886
Services	219,871		351,499
Grants	83,416		74,401
Total revenue	779,756		1,854,786
Operating expenses
Cost of products	336,672		1,368,573
Cost of services	172,772		92,331
Selling, general, and administrative	5,928,110		6,172,024
Research and development	1,589,577		2,100,088
Total operating expenses	8,027,131		9,733,016
Operating loss	(7,247,375)		(7,878,230)
Other income (expense)
Interest income, net	9,012		68,337
Change in fair value of warrants liability	727,662		(213,758)
Change in fair value of derivative liability	(11,533)		(76,840)
Other, net	(206,503)		440,386
Total other income, net	518,638		218,125
Loss before taxes	(6,728,737)		(7,660,105)
Income tax expense	—		—
Net loss	$        (6,728,737)		$            (7,660,105)
Less: Net (loss) income attributable to non-controlling interests	(14,299)		6,288
Net loss attributable to Nuvve Holding Corp.	$        (6,714,438)		$            (7,666,393)
Less: Preferred dividends on redeemable non-controlling interests	75,004		69,292
Less: Accretion on redeemable non-controlling interests preferred shares	161,466		161,466
Net loss attributable to Nuvve Holding Corp. common stockholders	$        (6,950,908)		$            (7,897,151)
Net loss per share attributable to Nuvve Holding Corp. common stockholders, basic and diluted	$                 (1.69)		$                   (12.84)
Weighted-average shares used in computing net loss per share attributable to Nuvve Holding Corp. common stockholders, basic and diluted	4,114,430		614,905

 

NUVVE HOLDING CORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
	Three Months Ended March 31,
	2024		2023
Net loss	$          (6,728,737)		$      (7,660,105)
Other comprehensive (loss) income, net of taxes
Foreign currency translation adjustments, net of taxes	$               (13,651)		$              8,934
Total comprehensive loss	$          (6,742,388)		$      (7,651,171)
Less: Comprehensive income (loss) attributable to non-controlling interests	$               (14,299)		$              6,288
Comprehensive loss attributable to Nuvve Holding Corp.	$          (6,728,089)		$      (7,657,459)
Less: Preferred dividends on redeemable non-controlling interests	$               (75,004)		$           (69,292)
Less: Accretion on redeemable non-controlling interests preferred shares	(161,466)		(161,466)
Comprehensive loss attributable to Nuvve Holding Corp. common stockholders	$          (6,491,619)		$      (7,426,701)

 

NUVVE HOLDING CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended March 31,
	2024		2023
Operating activities
Net loss	$                (6,728,737)		$                (7,660,105)
Adjustments to reconcile to net loss to net cash used in operating activities
Depreciation and amortization	86,656		76,520
Stock-based compensation	877,782		965,820
Change in fair value of warrants liability	(727,662)		213,758
Change in fair value of derivative liability	11,533		76,840
Warrants issuance costs	305,065		—
Gains from sale of investments in equity securities	—		(325,155)
Noncash lease expense	126,178		115,576
Change in operating assets and liabilities
Accounts receivable	443,875		(1,427,503)
Inventory	(193,180)		1,519,589
Prepaid expenses and other assets	732,925		(342,511)
Accounts payable	(215,495)		(28,178)
Accrued expenses and other liabilities	504,358		1,021,709
Deferred revenue	52,123		(38,062)
Net cash used in operating activities	(4,724,580)		(5,831,702)
Investing activities
Purchase of property and equipment	(40,907)		(11,125)
Proceeds from sale of investments in equity securities	—		1,325,155
Net cash provided (used) in investing activities	(40,907)		1,314,030
Financing activities
Proceeds from Direct Offering of common stock, net of issuance costs	—		470,000
Proceeds from common stock offering, net of issuance costs	8,516,741		136,717
Payment of finance lease obligations	(2,888)		(1,896)
Net cash provided in financing activities	8,513,853		604,821
Effect of exchange rate on cash	5		5,413
Net increase (decrease) in cash and restricted cash	3,748,371		(3,907,438)
Cash and restricted cash at beginning of year	2,014,660		16,233,896
Cash and restricted cash at end of period	$                   5,763,031		$                12,326,458

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SOURCE Nuvve Holding Corp.

FAQ

What were the Q1 2024 revenues for NVVE?

Nuvve reported Q1 2024 revenues of $0.78 million, a decrease of 58% from $1.85 million in Q1 2023.

How much did Nuvve's net loss decrease in Q1 2024?

Nuvve's net loss decreased by 12.2% to $6.7 million from $7.7 million in Q1 2023.

What was the percentage increase in megawatts under management for NVVE in Q1 2024?

Nuvve increased its managed megawatts by 6.0% to 26.6 MW as of March 31, 2024.

What are Nuvve's operating expenses excluding cost of sales for Q1 2024?

Nuvve's operating expenses excluding cost of sales were reduced to $7.5 million in Q1 2024 from $8.3 million in Q1 2023.

How much cash did NVVE have as of March 31, 2024?

Nuvve had $5.3 million in cash and cash equivalents as of March 31, 2024.

What is the significance of Fresno EOC's $16M fleet project for NVVE?

Nuvve was selected to implement its turnkey fleet electrification program for Fresno EOC's $16M 50-shuttle fleet project, showcasing its continued expansion in fleet electrification.