Nuvve Provides Second Quarter 2023 Financial Update
- Introduced Astrea AI forecasting into the Nordic energy market
- Launched Nuvve K-12 division for turnkey electrification services
- Secured largest DC Fast Charger order to-date
- Reduced cash operating costs to $7.3 million in Q2 2023
- Megawatts under management increased by 9.0%
- Backlog increased to $6.1 million
- Total revenue for Q2 2023 was $2.1 million, a 62.9% increase compared to Q2 2022
- None.
Investor Conference Call to be Held Today at 5:00 PM Eastern Time (2:00 PM PT)
Second Quarter Highlights
- Introduced Astrea AI forecasting into the Nordic energy market to optimize revenue generation from ancillary market services
- Launched Nuvve K-12, a new division focused on turnkey electrification services for student transportation, and hired new team to build out the program
- Secured Nuvve's largest DC Fast Charger order to-date with 25 bi-directional DC Rapid HD Charging Stations for a member of Beacon Mobility in
Massachusetts - Reduced cash operating costs in second quarter 2023 to
compared$7.3 million in second quarter 2022$8.3 million - Megawatts under management increased
9.0% to 20 megawatts as of June 30, 2023 compared to 18.3 megawatts on March 31, 2023; backlog increased to at June 30, 2023 from$6.1 million on March 31, 2023$4.2 million - Cash and cash equivalents of
as of June 30, 2023$11.1 million
Management Discussion
Gregory Poilasne, Chief Executive Officer of Nuvve, said, "We are pleased to have achieved record orders for our DC Fast Chargers during the second quarter of 2023 – the second quarter in a row of record orders for Nuvve – driving a significant increase in our backlog. We came into 2023 with optimism that this year would mark an inflection point for our company, and so far, results across a variety of metrics have supported our optimism. Beyond our results, we have seen a significant increase in interest in our technology and our IP as well as our integrated solution. For example, we began to integrate our Astrea AI capabilities into our product offering, further enhancing the benefits we offer our end users. We also established Nuvve K-12, a dedicated division for school bus fleet electrification, to help customers cross the finish-line and successfully initiate what look to be increasingly bigger fleet electrification programs. Overall, visibility is gradually improving, and we expect to sustain momentum from the first half of the year in the second half."
2023 Second Quarter Financial Review
Total revenue was
Cost of products and services revenue for the three months ended June 30, 2023, increased by
Selling, general and administrative expenses consist of selling, marketing, advertising, payroll, administrative, legal, finance, and professional expenses. Selling, general and administrative expenses were
The decrease during the three months ended June 30, 2023 was primarily attributable to decreases in compensation expenses of
Research and development expenses increased by
Other income (expense) consists primarily of interest expense, change in fair value of warrants liability and derivative liability, and other income (expense). Other income (expense) decreased by
In the three months ended June 30, 2023 and 2022, we recorded no material income tax expenses. The income tax expenses during the three months ended June 30, 2023 and 2022 were minimal primarily due to operating losses that receive no tax benefits as a result of a valuation allowance recorded for such losses.
Net loss increased by
Net Income (Loss) Attributable to Non-Controlling Interest
Net income attributable to non-controlling interest was
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
Conference Call Details
The Company will hold a conference call to review its financial results for the second quarter of 2023, along with other Company developments, at 5:00 PM Eastern Time (2:00 PM PT) today, Thursday, August 10, 2023.
To participate, please register for and listen via a live webcast, which is available in the 'Events' section 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) has developed a proprietary vehicle-to-grid (V2G) technology, including its Grid Integrated Vehicle ("GIVe™") cloud-based software platform, that enables it to link multiple electric vehicle ("EV") batteries into a virtual power plant to provide bi-directional energy to the electrical grid in a qualified and secure manner. Combining the world's most advanced 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. With products designed to transform EVs into mobile energy storage assets and networking battery capacity to support shifting energy needs, Nuvve is working toward 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
Nuvve and associated logos are among the trademarks of Nuvve and/or its affiliates in
Forward Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this press release, regarding Nuvve and Nuvve's strategy, future operations, estimated and projected financial performance, prospects, plans and objectives are forward-looking statements. When used in this press release, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Nuvve disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. 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. In addition, Nuvve cautions you that the forward-looking statements contained in this press release are subject to the following factors: (i) risks related to the rollout of Nuvve's business and the timing of expected business milestones; (ii) Nuvve's dependence on widespread acceptance and adoption of electric vehicles and increased installation of charging stations; (iii) Nuvve's ability to maintain effective internal controls over financial reporting, including the remediation of identified material weaknesses in internal control over financial reporting relating to segregation of duties with respect to, and access controls to, its financial record keeping system, and Nuvve's accounting staffing levels; (iv) Nuvve's current dependence on sales of charging stations for most of its revenues; (v) overall demand for electric vehicle charging and the potential for reduced demand if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of electric vehicles or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; (vi) potential adverse effects on Nuvve's backlog, revenue and gross margins if customers increasingly claim clean energy credits and, as a result, they are no longer available to be claimed by Nuvve; (vii) the effects of competition on Nuvve's future business; (viii) risks related to Nuvve's dependence on its intellectual property and the risk that Nuvve's technology could have undetected defects or errors; (ix) the risk that we conduct a portion of our operations through a joint venture exposes us to risks and uncertainties, many of which are outside of our control; (x) that our joint venture with Levo Mobility LLC may fail to generate the expected financial results, and the return may be insufficient to justify our investment of effort and/or funds; (xi) changes in applicable laws or regulations; (xii) risks related to disruption of management time from ongoing business operations due to our joint ventures; (xiii) risks relating to privacy and data protection laws, privacy or data breaches, or the loss of data; (xiv) the possibility that Nuvve may be adversely affected by other economic, business, and/or competitive factors; (xv) risks related to the benefits expected from the
Use of Projections
This press release contains projected financial information with respect to Nuvve. Such projected financial information constitutes forward-looking information, and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive and other risks and uncertainties. See "Forward-Looking Statements" above. Actual results may differ materially from the results contemplated by the financial forecast information contained in this press release, and the inclusion of such information in this press release should not be regarded as a representation by any person that the results reflected in such forecasts will be achieved.
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
ICR Inc.
nuvve@icrinc.com
+1 (646) 200-8872
FINANCIAL TABLES FOLLOW
NUVVE HOLDING CORP. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(Unaudited) | |||
June 30, 2023 | December 31, 2022 | ||
Assets | |||
Current assets | |||
Cash | $ 11,059,004 | $ 15,753,896 | |
Restricted cash | 480,000 | 480,000 | |
Accounts receivable, net | 2,027,621 | 1,121,694 | |
Inventories | 8,939,296 | 11,551,831 | |
Prepaid expenses | 1,556,991 | 1,487,582 | |
Other current assets | 1,139,212 | 1,454,563 | |
Total current assets | 25,202,124 | 31,849,566 | |
Property and equipment, net | 652,658 | 636,944 | |
Intangible assets, net | 1,271,921 | 1,341,640 | |
Investment in equity securities | 670,951 | 1,670,951 | |
Investment in leases | 117,436 | 97,054 | |
Right-of-use operating lease assets | 5,076,837 | 5,305,881 | |
Financing receivables | 288,872 | 288,872 | |
Security deposit, long-term | 8,682 | 8,682 | |
Total assets | $ 33,289,481 | $ 41,199,590 | |
Liabilities, Mezzanine Equity and Stockholders' Equity | |||
Current liabilities | |||
Accounts payable | $ 796,435 | $ 2,390,422 | |
Due to customers | 2,980,318 | — | |
Accrued expenses | 4,214,358 | 3,347,399 | |
Deferred revenue | 1,103,058 | 1,221,497 | |
Operating lease liabilities - current | 856,635 | 824,326 | |
Other liabilities | 112,721 | 113,844 | |
Total current liabilities | 10,063,525 | 7,897,488 | |
Operating lease liabilities - noncurrent | 4,867,157 | 5,090,170 | |
Warrants liability | 290,848 | 220,884 | |
Derivative liability - non-controlling redeemable preferred shares | 353,006 | 359,225 | |
Other long-term liabilities | 538,563 | 393,179 | |
Total liabilities | 16,113,099 | 13,960,946 | |
Commitments and Contingencies | |||
Mezzanine equity | |||
Redeemable non-controlling interests, preferred shares, zero par value, 1,000,000 shares authorized, 3,138 | 3,870,697 | 3,547,765 | |
Class D Incentive units, zero par value, 1,000,000 units authorized; 50,000 and 250,000 units issued and | 153,778 | 445,479 | |
Stockholders' equity | |||
Preferred stock, | — | — | |
Common stock, | 3,126 | 2,427 | |
Additional paid-in capital | 150,076,184 | 144,073,505 | |
Accumulated other comprehensive income | 86,415 | 76,182 | |
Accumulated deficit | (132,615,484) | (116,956,528) | |
Nuvve Holding Corp. Stockholders' Equity | 17,550,241 | 27,195,586 | |
Non-controlling interests | (4,398,334) | (3,950,186) | |
Total stockholders' equity | 13,151,907 | 23,245,400 | |
Total Liabilities, Mezzanine Equity and Stockholders' Equity | $ 33,289,481 | $ 41,199,590 |
NUVVE HOLDING CORP. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenue | |||||||
Products and services | $ 2,049,009 | $ 1,068,029 | $ 3,829,394 | $ 3,321,813 | |||
Grants | 71,118 | 233,698 | 145,519 | 350,947 | |||
Total revenue | 2,120,127 | 1,301,727 | 3,974,913 | 3,672,760 | |||
Operating expenses | |||||||
Cost of product and service revenue | 1,951,116 | 1,034,596 | 3,412,020 | 3,176,908 | |||
Selling, general, and administrative | 6,097,336 | 8,136,522 | 12,269,360 | 15,762,072 | |||
Research and development | 2,387,215 | 2,170,139 | 4,487,303 | 4,305,714 | |||
Total operating expenses | 10,435,667 | 11,341,257 | 20,168,683 | 23,244,694 | |||
Operating loss | (8,315,540) | (10,039,530) | (16,193,770) | (19,571,934) | |||
Other income (expense) | |||||||
Interest income, net | 20,644 | 6,945 | 88,981 | 8,403 | |||
Change in fair value of warrants liability | 143,794 | 4,585,000 | (69,964) | 9,361,000 | |||
Change in fair value of derivative liability | 83,059 | (32,536) | 6,219 | 20,936 | |||
Other, net | 83,946 | 22,020 | 524,332 | (7,767) | |||
Total other income, net | 331,443 | 4,581,429 | 549,568 | 9,382,572 | |||
Loss before taxes | (7,984,097) | (5,458,101) | (15,644,202) | (10,189,362) | |||
Income tax expense | — | — | — | — | |||
Net loss | $ (7,984,097) | $ (5,458,101) | $ (15,644,202) | $ (10,189,362) | |||
Less: Net income (loss) attributable to non-controlling interests | 8,466 | (189,945) | 14,754 | (290,878) | |||
Net loss attributable to Nuvve Holding Corp. | $ (7,992,563) | $ (5,268,156) | $ (15,658,956) | $ (9,898,484) | |||
Less: Preferred dividends on redeemable non-controlling interests | 70,678 | 65,296 | 139,970 | 129,311 | |||
Less: Accretion on redeemable non-controlling interests preferred | 161,466 | 161,466 | 322,932 | 322,932 | |||
Net loss attributable to Nuvve Holding Corp. common stockholders | $ (8,224,707) | $ (5,494,918) | $ (16,121,858) | $ (10,350,727) | |||
Net loss per share attributable to Nuvve Holding Corp. common | $ (0.30) | $ (0.29) | $ (0.62) | $ (0.55) | |||
Weighted-average shares used in computing net loss per share | 27,734,130 | 19,064,854 | 26,129,789 | 18,965,167 |
NUVVE HOLDING CORP AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Net loss | $ (7,984,097) | $ (5,458,101) | $ (15,644,202) | $ (10,189,362) | |||
Other comprehensive (loss) income, net of taxes | |||||||
Foreign currency translation adjustments, net of taxes | $ 1,299 | $ (26,314) | $ 10,233 | $ (39,998) | |||
Total Comprehensive loss | $ (7,982,798) | $ (5,484,415) | $ (15,633,969) | $ (10,229,360) | |||
Less: Comprehensive income (loss) attributable to non- | $ 8,466 | $ (189,945) | $ 14,754 | $ (290,878) | |||
Comprehensive loss attributable to Nuvve Holding Corp. | $ (7,991,264) | $ (5,294,470) | $ (15,648,723) | $ (9,938,482) | |||
Less: Preferred dividends on redeemable non-controlling | $ (70,678) | $ (65,296) | $ (139,970) | $ (129,311) | |||
Less: Accretion on redeemable non-controlling interests | (161,466) | (161,466) | (322,932) | (322,932) | |||
Comprehensive loss attributable to Nuvve Holding Corp. | $ (7,759,120) | $ (5,067,708) | $ (15,185,821) | $ (9,486,239) |
NUVVE HOLDING CORP. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited) | |||
Six Months Ended June 30, | |||
2023 | 2022 | ||
Operating activities | |||
Net loss | $ (15,644,202) | $ (10,189,362) | |
Adjustments to reconcile to net loss to net cash used in operating activities | |||
Depreciation and amortization | 156,290 | 137,755 | |
Stock-based compensation | 2,069,227 | 3,357,859 | |
Change in fair value of warrants liability | 69,964 | (9,361,000) | |
Change in fair value of derivative liability | (6,219) | (20,936) | |
Gains from sale of investments in equity securities | (325,155) | — | |
Noncash lease expense | 233,730 | 283,251 | |
Change in operating assets and liabilities | |||
Accounts receivable | (903,652) | (74,278) | |
Inventory | 2,612,535 | 322,156 | |
Prepaid expenses and other assets | 249,728 | (1,462,221) | |
Accounts payable | (1,595,737) | (2,409,448) | |
Due to customers | 2,980,318 | — | |
Accrued expenses | 1,195,845 | (684,517) | |
Deferred revenue | (140,783) | 79,576 | |
Net cash used in operating activities | (9,048,111) | (20,021,165) | |
Investing activities | |||
Purchase of property and equipment | (101,775) | (317,225) | |
Investments in equity securities | — | (1,000,000) | |
Proceeds from sale of investments in equity securities | 1,325,155 | — | |
Net cash provided (used) in investing activities | 1,223,380 | (1,317,225) | |
Financing activities | |||
Proceeds from forward option put exercise | — | 1,994,073 | |
Proceeds from Direct Offering of common stock, net of offering costs | 2,347,192 | — | |
Proceeds from common stock offering, net of offering costs | 781,624 | 1,859,685 | |
Payment of finance lease obligations | (4,480) | (4,425) | |
Proceeds from exercise of stock options | — | 173,575 | |
Net cash provided in financing activities | 3,124,336 | 4,022,908 | |
Effect of exchange rate on cash | 5,503 | (54,796) | |
Net decrease in cash and restricted cash | (4,694,892) | (17,370,278) | |
Cash and restricted cash at beginning of year | 16,233,896 | 32,740,520 | |
Cash and restricted cash at end of period | $ 11,539,004 | $ 15,370,242 | |
NUVVE HOLDING CORP. AND SUBSIDIARIES | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) | |||
(Unaudited) | |||
Six Months Ended June 30, | |||
2023 | 2022 | ||
Supplemental Disclosure of Noncash Financing Activity | |||
Transfer of inventory to property and equipment | $ — | $ 87,095 |
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SOURCE Nuvve Holding Corp.
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