- Q1 Revenue of $1.49 million exceeds total fiscal year 2020
revenue
- Net income of $2.91 million and Adjusted Net Loss of $0.99
million excluding one-time acquisition-related charges and net
warrant valuation adjustment
- Company holds cash reserves of $124.97 million
- Strong market interest reflected in high level of commercial
activity
Advent Technologies Holdings, Inc. (NASDAQ: ADN) (“Advent”)
today announced consolidated financial results for the three months
ended March 31, 2021. All amounts are in U.S. dollars unless
otherwise noted and have been prepared in accordance with U.S.
generally accepted accounting principles (GAAP).
Q1 2021 Financial
Highlights
(all comparisons are to Q1 2020 unless otherwise noted)
- Total revenue was $1.49 million, a year-over-year increase of
$1.39 million, the result of increased demand for our products
across the board. Total Revenue for Q1 2021 exceeded the Total
Revenue for all of Fiscal Year 2020, due to:
- Increased demand for HT-PEM based fuel cell materials;
- Increased demand for redox flow battery components;
- Increased shipments of our IoT sensors; and
- Addition of Advent’s UltraCell business solid revenue
contribution.
- Gross Profit of $1.14 million, a year-over-year increase of
$1.11 million primarily due to higher revenues and a favorable
business mix.
- Operating costs of $8.14 million, a year-over-year increase of
$7.79 million, due to One-Time Transaction Related Expenses as well
as increased staffing, and public company costs.
- Net income and adjusted net loss were $2.91 million and ($0.99)
million. Adjusted net loss excludes the impact from the change in
the fair value of outstanding warrants as well as the one-time
transaction-related expenses.
- Net income per share was $0.08.
- Cash reserves were $124.97 million on March 31, 2021, an
increase of $124.45 million from December 31, 2020 driven by net
$140.17 million of cash raised in the quarter from our business
combination, including the $65.0 million PIPE, with AMCI that was
consummated on February 4, 2021.
“Following our successful business combination with AMCI
Acquisition Corp. and the subsequent acquisition of UltraCell LLC,
we saw strong demand for our products from existing and new
customers,” said Dr. Vasilis Gregoriou, Chairman and CEO of Advent
Technologies. “The substantial increase in revenue in the quarter
demonstrates a surge of market interest in high-temperature proton
exchange membrane (HT-PEM) based products. We are confident that
many of our customers are on a fast growth trajectory, and we are
working closely with them to provide MEAs and fuel cell technology
systems to serve their needs.”
Q1 2021 Financial
Summary
(in Millions of US dollars, except per
share data)
Three Months Ended March
31,
2021
2020
$ Change
Revenue, net
$ 1.49
$ 0.10
$ 1.39
Gross Profit
$ 1.14
$ 0.03
$ 1.11
Gross Margin (%)
77%
34%
Grants Income
$ 0.04
$ 0.23
$ (0.19)
Operating Income/(Loss)
$ (6.96)
$ (0.09)
$ (6.87)
Net Income/(Loss)
$ 2.91
$ (0.22)
$ 3.13
Net Income/(Loss) Per Share
$ 0.08
$ (0.03)
$ 0.11
Non-GAAP Financial Measures
Adjusted EBITDA
$ (0.90)
$ (0.10)
$ (0.80)
Adjusted Net Income/(Loss) - Excl
Warrant Adjustment and One-Time Transaction Related
Expenses
$ (0.99)
$ (0.22)
$ (0.77)
Cash Used in Operating
Activities
$ (12.19)
$ (0.34)
$ (11.85)
Cash and Cash Equivalents
$ 124.97
For a more detailed discussion of Advent’s first quarter 2021
results, please see the company’s financial statements and
management’s discussion & analysis, which are available at
ir.advent.energy.
The financial results include non-GAAP financial measures. These
non-GAAP measures are more fully described and are reconciled from
the respective measures determined under GAAP in “Presentation of
Non-GAAP Financial Measures” and the attached appendix tables.
Q1 2021 Business
Updates:
Key recent product development highlights include:
- Scale-up and commercialization of the U.S. Department of Energy
(DoE) next-generation MEA technology.
- Development of proprietary fuel cell stack technology for
mobility applications, leveraging the know-how of UltraCell
lightweight stacks.
- Production automation of MEA and fuel cell stack
production.
- Development of materials for low-capex AEM electrolyzers and
redox flow-batteries.
Dr. Gregoriou added, “We continue to find new use cases for our
technology and becoming a public company with access to the
financial markets has allowed us to accelerate this process. We are
seeing strong demand for our products coming from all of our
addressable markets.”
Order highlights include:
- Orders for MEAs (Membrane Electrode Assemblies, what we label
“the heart of the fuel-cell”), from fuel cell developers in the
markets of mobility and stationary applications in Asia.
- Orders for prototype fuel cell stacks from Europe, where we are
witnessing a strong increase of major hydrogen projects across the
European Union.
- Orders for redox flow battery materials that exceed
significantly last year’s activity.
- Revenue from engineering fees in the area of electrochemical
sensor development, where we are working closely with IoT companies
to commercialize the technology.
- Orders for UltraCell defense-related systems.
Dr. Gregoriou continued, “Following our business combination on
February 4, 2021, our team hit the ground running and the momentum
continues. We expect to see both revenues and bookings increase as
we move through the rest of 2021. In addition, we secured a new
headquarters and technology manufacturing space in the highly
competitive Boston market, helping us attract top-level talent in
order to execute on our business plan.”
Q1 2021 Operating
Highlights
- Selection of Advent’s Wearable Fuel
Cell for the 2021 Validation Program: On March 31, 2021,
Advent announced that UltraCell’s 50 W Reformed Methanol Wearable
Fuel Cell Power System (“Honey Badger”) had been selected by the
U.S. Department of Defense’s National Defense Center for Energy and
Environment (“NDCEE”) to take part in its demonstration/validation
program for 2021. The NDCEE is a Department of Defense program that
addresses high-priority environmental, safety, occupational health,
and energy technological challenges that are demonstrated and
validated at active installations for military application.
UltraCell’s “Honey Badger 50” fuel cell is the only fuel cell that
is part of this program that supports the U.S. Army’s goal of
having a technology-enabled force by 2028.
- Collaboration with the DOE:
On March 1, 2021, Advent announced that it had entered into a joint
development agreement (the “CRADA”) with the United States
Department of Energy’s (DOE’s) Los Alamos National Laboratory
(LANL), Brookhaven National Laboratory (BNL), and National
Renewable Energy Laboratory (NREL). Under this CRADA, along with
support from the DOE’s Hydrogen and Fuel Cell Technologies Office
(HFTO), Advent’s team of scientists plan to work closely with its
LANL, BNL, and NREL counterparts over the coming years to develop
breakthrough materials to help strengthen U.S. manufacturing in the
fuel cells sector and bring high-temperature proton exchange
membrane (HT-PEM) fuel cells to the market.
- Acquisition of UltraCell
LLC: On February 18, 2021, Advent acquired UltraCell
LLC, the fuel cell business of Bren-Tronics, Inc. for $4.0 million
and a maximum of $2.0 million upon the achievement of certain
milestones. Those milestones were met and the additional $2.0
million was paid on April 16, 2021. This transaction was critical
because it brings a full stack and systems business to Advent’s
product portfolio. UltraCell is a leader in lightweight fuel cells
for the portable power market with mature products and cutting-edge
technology.
- New HQ and technology center in
Boston, MA: On February 5, 2021, Advent leased 6,041
square feet of premier office space at 200 Clarendon Street in
Boston, MA. This iconic building is in the heart of Boston and
provides Advent with ample room to house its executive, technology,
and administrative teams. On March 8, 2021, Advent also secured a
new eight-year lease for 21,401 square feet in the heart of
Boston’s technology and R&D community at Hood Park in
Charlestown, MA as its technologies facility to accelerate product
development on recent next-generation membrane electrode assembly
(MEA) initiatives, including high-temperature polymer electrolyte
membrane (HT-PEM) fuel cell technology for the automotive
industry.
Dr. Gregoriou concluded, “I am confident the future for Advent
Technologies has never been brighter. Our fuel-cell technology,
allowing the use of multiple fuels, is an ideally suited solution
for the defense and off-grid markets. We believe the “Any Fuel.
Anywhere” products give us a clear advantage in a market for which
very few companies compete and where hydrogen in its compressed gas
form required by the low-temperature PEM competitors is not an
economical option. In the mobility market, and particularly in the
heavy-duty truck and aviation areas, we have strong validation that
the high-temperature PEM technology is well-designed for achieving
the total cost of ownership goals of our customers. Furthermore, we
have recently seen increased interest in large-scale combined heat
and power projects, where the heat produced by our PEM products is
something that low-temp products cannot provide. Given that our
value-add is in the MEA and fuel cell stack technology rather than
in the end-system and application area, we plan to can address all
these markets with the same MEA technology rather than completely
independent efforts, which would prove very expensive. New policy
goals across the developed and developing world are only
accelerating this trend, and Advent is well positioned to take
advantage of these dynamics.”
Conference Call
The Company will host a conference call on Thursday, May 20,
2021, at 9:00 AM ET to discuss its results.
To access the call please dial (866) 498-0631 from the United
States, or (873) 415-0202 from outside the U.S. The conference call
I.D. number is 2763459. Participants should dial in 5 to 10 minutes
before the scheduled time.
A replay of the call can also be accessed via phone through June
3, 2021 by dialing (800) 585-8367 from the U.S., or (416) 621-4642
from outside the U.S. The conference I.D. number is 2763459.
About Advent Technologies Holdings,
Inc.
Advent Technologies Holdings, Inc. is a U.S. corporation that
develops, manufactures, and assembles critical components for fuel
cells and advanced energy systems in the renewable energy sector.
Advent is headquartered in Boston, Massachusetts, with offices in
the San Francisco Bay Area and Europe. With 120-plus patents
(issued and pending) for its fuel cell technology, Advent holds the
IP for next-gen high-temperature proton exchange membranes (HT-PEM)
that enable various fuels to function at high temperatures under
extreme conditions – offering a flexible ‘Any Fuel.
Anywhere’ option for the automotive, maritime, aviation, and
power generation sectors. www.advent.energy
Important Cautions 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. These forward-looking statements
address various matters including the Company’s plans and
expectations with respect to its operating and financial
performance for the remainder of 2021, the increased demand for its
MEAs and fuel cell technology, the continued development of its
next-generation HT-PEM technology alongside the Department of
Energy, the advancement of potential breakthrough materials for the
HT-PEM market, and the opening of its new manufacturing facility
and headquarters in Boston. 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
realize the benefits from the business combination; 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 our corporate reputation and brand; expectations
concerning our relationships and actions with our 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 our Annual Report on
Form 10-K filed with the Securities and Exchange Commission on
March 26, 2021, as amended on May 19, 2021 as well as the other
information we file with the SEC. We caution investors not to place
considerable reliance on the forward-looking statements contained
in this press release. You are encouraged to read our 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
we undertake no obligation to update or revise any of these
statements. Our 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 U.S.
generally accepted accounting principles (“GAAP”) throughout this
press release, the Company has provided non-GAAP financial
measures— Adjusted Net Income /(Loss),EBITDA and Adjusted EBITDA
—which present results on a basis adjusted for certain items. The
Company uses these non-GAAP financial measures for business
planning purposes and in measuring its performance relative to that
of its competitors. The Company believes that these non-GAAP
financial measures are useful financial metrics to assess its
operating performance from period-to-period by excluding certain
items that the Company believes are not representative of its core
business. These non-GAAP financial measures are not intended to
replace, and should not be considered superior to, the presentation
of the Company’s financial results in accordance with GAAP. The use
of the terms Adjusted Net Income / (Loss), EBITDA and Adjusted
EBITDA may differ from similar measures reported by other companies
and may not be comparable to other similarly titled measures. These
measures are reconciled from the respective measures under GAAP in
the appendix below.
ADVENT TECHNOLOGIES HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
March 31, 2021
December 31, 2020
ASSETS Current assets: Cash and cash
equivalents
$
124,974,831
$
515,734
Accounts receivable, net
1,138,454
421,059
Due from related parties
-
67,781
Contract assets
745,513
85,930
Inventories
812,744
107,939
Prepaid expenses and Other current assets
4,121,554
496,745
Total current assets
131,793,096
1,695,188
Non-Current Assets Goodwill and intangibles, net
5,178,771
-
Property and equipment, net
317,996
198,873
Total Non-Current Assets
5,596,767
198,873
Total assets
$
137,289,863
$
1,894,061
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)
Current liabilities: Trade and other payables
$
1,462,789
$
881,394
Due to related parties
-
1,114,659
Deferred income from grants, current
306,917
158,819
Contract liabilities, current
44,185
167,761
Other current liabilities
2,956,116
904,379
Income tax payable
199,653
201,780
Total current liabilities
4,969,660
3,428,792
Warrant Liability
23,350,695
-
Deferred income from grants, non-current
67,848
182,273
Other long-term liabilities
193,719
76,469
Total liabilities
28,581,922
3,687,534
Commitments and contingent liabilities
-
-
Stockholders’ equity/(deficit) Common stock
($0.0001 par value per share;Shares authorized: 110,000,000 at
March 31, 2021 and December 31, 2020;Issued and outstanding:
46,105,947 and 25,033,398at March 31, 2021 and December 31, 2020,
respectively)
4,611
2,503
Preferred stock ($0.0001 par value per share;Shares authorized:
1,000,000 at March 31, 2021 andDecember 31, 2020;nil issued and
outstanding at March, 31, 2021and December 31, 2020
-
-
Additional Paid in Capital
118,568,449
10,993,762
Accumulated Other Comprehensive Income
130,725
111,780
Accumulated Deficit
(9,995,844
)
(12,901,518
)
Total stockholders’ equity/(deficit)
108,707,941
(1,793,473
)
Total liabilities and stockholders’ equity/(deficit)
$
137,289,863
$
1,894,061
ADVENT TECHNOLOGIES HOLDINGS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (All amounts in
USD, except for share data)
Three months
ended March 31,
2021
2020
Revenue, net
$1,489,292
$100,266
Cost of revenues
(347,342
)
(66,037
)
Gross profit/(loss)
1,141,950
34,229
Income from Grants
38,453
228,764
Research and development expenses
(29,082
)
(51,269
)
Administrative and selling expenses
(7,921,858
)
(302,669
)
Amortization of intangibles
(186,760
)
-
Operating Loss
(6,957,297
)
(90,945
)
Finance costs
(10,280
)
(2,523
)
Change fair value of warrant liability
9,765,625
-
Foreign exchange differences, net
23,955
(18,587
)
Other income / (expense)
83,671
(104,561
)
Income / (Loss) before income tax
2,905,674
(216,616
)
Income tax expense
-
-
Net income/(loss)
$2,905,674
($216,616
)
Other comprehensive income (loss), net of tax effect:
Foreign currency translation adjustment
18,945
(49,841
)
Total other comprehensive income (loss)
18,945
(49,841
)
Comprehensive income/ (loss)
$2,924,619
($266,457
)
Net income/(loss) per share, basic
0.08
(0.03
)
Weighted Average shares outstanding, Basic
37,769,554
8,403,184
Net income/(loss) per share, diluted
0.07
(0.03
)
Weighted Average shares outstanding, Diluted
40,987,346
8,403,184
ADVENT TECHNOLOGIES HOLDINGS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three months ended March 31,
2021
2020
Net Cash used in Operating Activities
($12,196,101
)
($341,664
)
Cash Flows from Investing Activities:
Purchases of property
and equipment
(77,112
)
(34,699
)
Acquisition of a subsidiary, net of cash acquired
(3,975,940
)
-
Net Cash used in Investing Activities
($4,053,052
)
($34,699
)
Cash Flows from Financing Activities:
Business Combination
and PIPE financing, net of issuance costs paid
140,693,116
-
Proceeds of issuance of preferred stock
-
1,430,005
Repayment of Loan
-
(487,708
)
Net Cash provided by Financing Activities
$140,693,116
$942,297
Net increase (decrease) in cash and cash equivalents
$124,443,963
$565,932
Effect of exchange rate changes on cash and cash equivalents
15,134
7,893
Cash and cash equivalents at the beginning of the period
515,734
1,199,015
Cash and cash equivalents at the end of the period
$124,974,831
$1,772,840
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 to 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 income taxes, depreciation of property,
plant and equipment, and amortization of intangible assets.
Adjusted EBITDA adjusts EBITDA for transactional gains and losses,
asset impairment charges, finance and other income and acquisition
costs.
The following tables show a reconciliation of net income/(loss)
to EBITDA and Adjusted EBITDA for the three months ended March 31,
2021 and 2020.
(in Millions of US dollars)
Three Months Ended March 31,
2021
2020
$ Change
Net Income/(Loss)
$2.91
($0.22
)
$3.13
Amortization of intangibles
$0.19
$0.00
$0.19
Finance Costs
$0.01
$ -
$0.01
Other Income/(Expense)
($0.08
)
$0.10
($0.18
)
Foreign Exchange
($0.02
)
$0.02
($0.04
)
Income Taxes
$ -
$ -
$ -
EBITDA
$3.00
($0.10
)
$3.10
Net Change in Warrant Liability
($9.77
)
$ -
($9.77
)
One-Time Transaction Related Expenses (1)
$5.87
$ -
$5.87
Adjusted EBITDA
($0.90
)
($0.10
)
($0.80
)
(1) Bonus awarded after consummation of the business combination
effective February 4, 2021.
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 our actual performance by adjusting our
results from continuing operations for changes in warrant liability
and one-time transaction costs. Adjusted Net Loss differs from the
most comparable GAAP measure, net income / (loss), primarily
because it does not include one-time transaction costs and warrant
liability changes. The following table shows a reconciliation of
net income/(loss) for the three months ended March 31, 2021 and
2020.
Adjusted Net Income/(Loss)
(in Millions of US dollars) Three Months Ended March
31,
2021
2020
$ Change
Net Income/(Loss)
$2.91
($0.22
)
$3.13
One-Time Transaction Related Expenses(1)
$5.87
$ -
$5.87
Net Change in Warrant Liability
($9.77
)
$ -
($9.77
)
Adjusted Net Income/(Loss)
($0.99
)
($0.22
)
($0.77
)
(1) Bonus awarded after consummation of the business combination
effective February 4, 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210520005582/en/
Advent Technologies Elisabeth Maragoula emaragoula@advent.energy
Sloane & Company Joe Germani / James Goldfarb
jgermani@sloanepr.com / jgoldfarb@sloanepr.com
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