- Q2 Revenue up 400% versus prior year on increased customer
demand for Advent product offerings and acquisition of
UltraCell
- Net loss of $(3.14) million and adjusted net loss of $(6.79)
million excluding warrant valuation adjustment
- Company holds cash reserves of $116.11 million
- Strong market interest reflected in high level of commercial
activity
Advent Technologies Holdings, Inc. (NASDAQ: ADN) (“Advent” or
the “Company”), an innovation-driven leader in the fuel cell and
hydrogen technology space, today announced consolidated financial
results for the three months ended June 30, 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).
Q2 2021 Financial Highlights (all comparisons are to Q2
2020 unless otherwise noted)
- Total revenue of $1.00 million, a 400% year-over-year increase,
the result of increased customer demand for Advent’s products
across the board and the acquisition of UltraCell.
- Gross Profit of $0.33 million, a year-over-year increase of
$0.35 million primarily due to higher revenues.
- Operating expenses were $7.2 million, primarily related to
increased staffing and costs to operate as a public company, as
well as our cooperative research and development agreement
(“CRADA”) with the Department of Energy which we announced in March
2021.
- Net loss and adjusted net loss were $(3.14) million and $(6.79)
million, respectively. Adjusted net loss excludes the impact from
the change in the fair value of outstanding warrants.
- Net loss per share was $(0.07).
- Cash reserves were $116.11 million on June 30, 2021, a decrease
of $8.87 million from March 31, 2021, driven primarily by the use
of cash for operating and capital expenses and a $2 million payment
to complete the acquisition of UltraCell.
“As a public company, we continue to see strong demand for our
products from existing and new customers, especially following the
acquisition of UltraCell LLC,” said Dr. Vasilis Gregoriou, Chairman
and CEO of Advent Technologies. “The strong revenue growth in the
quarter continues to demonstrate 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 our HT-PEM based products are an enabling technology
that will serve their needs.”
Q2 2021 Financial Summary
(in Millions of US dollars, except per
share data)
Three Months Ended June
30,
2021
2020
$ Change
Revenue, net
$
1.00
$
0.20
$
0.80
Gross Profit
$
0.33
$
(0.02
)
$
0.35
Gross Margin (%)
33
%
(9
)%
Operating Income/(Loss)
$
(6.79
)
$
(0.41
)
$
(6.38
)
Net Income/(Loss)
$
(3.14
)
$
(0.31
)
$
(2.83
)
Net Income/(Loss) Per Share
$
(0.07
)
$
(0.02
)
$
(0.05
)
Non-GAAP Financial Measures
Adjusted EBITDA
$
(6.80
)
$
(0.40
)
$
(6.40
)
Adjusted Net Income/(Loss) - Excl
Warrant Adjustment
$
(6.79
)
$
(0.31
)
$
(6.48
)
Cash and Cash Equivalents
$
116.11
For a more detailed discussion of Advent’s second 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.
Q2 2021 Business Updates:
- Acquisition of the Fuel Cell Systems Businesses, Serenergy
and fischer eco solutions GmbH, from fischer Group: On June 25,
2021, Advent announced that the Company entered into an agreement
to acquire the fuel cell systems businesses, Serenergy and fischer
eco solutions GmbH, from fischer Group. Serenergy, based in Denmark
and the Philippines, is a leading manufacturer of HT-PEM fuel cell
systems globally, with thousands shipped around the globe during
its 15-year operation. fischer eco solutions (“FES”), based in
Germany, provides fuel-cell stack assembly and testing as well as
the production of critical fuel cell components, including membrane
electrode assemblies (“MEAs”), bipolar plates, and reformers. FES
operates a facility on fischer Group’s campus in Achern, Germany,
and that facility will be leased to Advent upon closing of the
deal. The transaction is expected to accelerate the implementation
of Advent’s business plan and to expand Advent’s growing revenue
base in full fuel cell stacks and systems. The transaction is
expected to close in the third quarter of 2021.
- Expanding Global Footprint Through Acquisitions: With
the addition of Serenergy and fischer eco solutions, Advent will
expand its geographic footprint by three countries in Europe and
southeast Asia and will add 92 employees to its growing team. The
deal will bring together some of the leading minds in the
high-temperature fuel cell space and will further build Advent’s
platform to meet the rapidly increasing demand for clean energy
worldwide. This transaction fully aligns with Advent’s “Any Fuel.
Anywhere.” option and this, together with the previously completed
UltraCell acquisition, makes Advent a true global leader in the
remote and off-grid power market for fuel cell production, with
mobility and aviation products on the horizon as well.
- 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
are working closely with its LANL, BNL, and NREL counterparts to
develop breakthrough materials to help strengthen U.S.
manufacturing in the fuel cell sector and bring high-temperature
proton exchange membrane (HT-PEM) fuel cells to the market. This
very important program has continued to progress over recent
months, including delivery and testing of samples for key
components of next generation HT-PEM materials.
- Announced Participation in Major European Hydrogen Project
(IPCEI) “White Dragon” Proposal Submission: On May 19, 2021,
Advent announced the national proposal for hydrogen technologies
"White Dragon" was submitted by a group of the largest energy
companies in Greece. The proposal sets forth a future vision for
the entire hydrogen value chain and a path to expand its role in
the Greek energy system’s reduced carbon goals. The objective of
the project is to gradually replace the lignite power plants of
Western Macedonia and transition to clean energy production and
transmission, with the ultimate goal of fully decarbonizing
Greece's energy system. The "White Dragon" project plans to use
large-scale renewable electricity to produce green hydrogen by
electrolysis in Western Macedonia. This hydrogen would then be
stored and, through Advent’s high-temperature fuel cells, supply
all of Greece with clean electricity, green energy and heat.
Further, in July 2021, Advent announced that it had been nominated
by the Greek Ministry of Development and Investment to be part of
the first wave of IPCEI on Hydrogen and had also been selected by
the Ministry to be the Coordinator of Technology Field 2 dedicated
to fuel cells and associated technologies. The company is pleased
to be the designated fuel cell partner for an €8 billion
project.
- Selection of Advent’s Wearable Fuel Cell for the New
Contract with U.S. Department of Defense: On June 7, 2021,
Advent signed a new contract through its subsidiary, UltraCell,
with the U.S. Department of Defense for a wearable fuel cell.
Through this contract, Advent will be focusing on completing the
MIL-STD certification of UltraCell’s 50 W Reformed Methanol
Wearable Fuel Cell Power System (“Honey Badger”). Honey Badger is
designed to integrate with materials already utilized by the U.S.
Army and will operate as a wearable battery that can be functioning
“on the move.” As noted previously, Honey Badger was selected by
the DoD’s National Defense Center for Energy and Environment
(NDCEE) to take part in its 2021 demonstration/validation program.
The Company remains excited about the continued progress of Honey
Badger, and partnering with the U.S. Army is a landmark for Advent
as its products become a key choice for defense applications.
- Announced New Chief Financial Officer: On July 2, 2021,
Advent announced that Kevin Brackman joined the Company as its new
Chief Financial Officer. He will report to Advent Chairman and CEO
Dr. Vasilis Gregoriou. Mr. Brackman replaces Bill Hunter, who had
served as CFO of Advent following its merger in February 2021 with
AMCI Acquisition Corp., where he was Chief Executive Officer.
Dr. Gregoriou continued, “Our business momentum continues to
build as we focus on developing and fostering new and existing
customer relationships that support our strategic growth
initiatives. Our sales of MEAs and redox flow battery components
remain strong, and we expect to see both revenues and bookings
increase as we move through the remainder of 2021. In addition, the
pending acquisition of the fuel cell systems businesses, Serenergy
and FES, from fischer Group will help us execute on our business
plan.”
“The future for Advent Technologies has never been brighter. We
are optimistic that Advent will continue to increase market share
as the world focuses more on clean energy. Advent’s “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. Countries representing over half of global GHG
emissions have communicated net-zero emissions targets. We believe
our fuel cell technology will play a key role in driving
decarbonization and as we move worldwide towards clean renewable
energy, Advent is prepared to increasingly contribute to the goal
of 100% clean energy.”
Conference Call
The Company will host a conference call on Thursday, August 12,
2021, at 9:00 AM ET to discuss its results.
To access the call please dial (833) 952-1516 from the United
States, or (236) 714-2129 from outside the U.S. The conference call
I.D. number is 1738845. Participants should dial in 5 to 10 minutes
before the scheduled time.
A replay of the call can also be accessed via phone through
August 26, 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
1738845.
About Advent Technologies Holdings, Inc.
Advent Technologies Holdings, Inc. is a US 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
(or pending) for its fuel cell technology, Advent holds the IP for
next-generation 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. For more information, visit
www.Advent.energy.
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
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/A filed with the Securities and Exchange Commission on
May 20, 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) 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) 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
As of
ASSETS
June 30, 2021
(Unaudited)
December 31, 2020
Current assets:
Cash and cash equivalents
$
116,109,057
$
515,734
Accounts receivable
1,110,825
421,059
Due from related parties
16,153
67,781
Contract assets
435,164
85,930
Inventories
857,671
107,939
Prepaid expenses and Other current
assets
2,846,143
496,745
Total current assets
121,375,013
1,695,188
Non-current assets:
Goodwill and intangibles, net
5,207,817
-
Property and equipment, net
1,115,176
198,737
Other non-current assets
2,660,939
136
Total non-current assets
8,983,932
198,873
Total assets
$
130,358,945
$
1,894,061
LIABILITIES AND STOCKHOLDERS’
EQUITY/(DEFICIT)
Current liabilities:
Trade and other payables
$
2,883,325
$
881,394
Due to related parties
30,000
1,114,659
Deferred income from grants, current
65,180
158,819
Contract liabilities
140,940
167,761
Other current liabilities
331,071
904,379
Income tax payable
191,194
201,780
Total current liabilities
3,641,711
3,428,792
Non-current liabilities:
Warrant liability
19,704,861
-
Deferred income from grants,
non-current
176,525
182,273
Other long-term liabilities
182,140
76,469
Total non-current liabilities
20,063,525
258,742
Total liabilities
23,705,236
3,687,534
Commitments and contingent liabilities
-
-
Stockholders’ equity /
(deficit)
Common stock ($0.0001 par value per share;
Shares authorized: 110,000,000 at June 30, 2021 and December 31,
2020; Issued and outstanding: 46,128,745 and 25,033,398 at June 30,
2021 and December 31, 2020, respectively)
4,613
2,503
Preferred stock ($0.0001 par value per
share; Shares authorized: 1,000,000 at June 30, 2021 and December
31, 2020; nil issued and outstanding at June 30, 2021 and December
31, 2020
-
-
Additional paid-in capital
119,964,708
10,993,762
Accumulated other comprehensive (loss) /
income
(176,457
)
111,780
Accumulated deficit
(13,139,155
)
(12,901,518
)
Total stockholders’ equity /
(deficit)
106,653,709
(1,793,473
)
Total liabilities and stockholders’
equity / (deficit)
$
130,358,945
$
1,894,061
ADVENT TECHNOLOGIES HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(All amounts in USD, except
for number of shares)
Three months ended June
30, (Unaudited)
Six months ended June 30,
(Unaudited)
2021
2020
2021
2020
Revenue, net
$
1,003,464
$
200,354
$
2,492,756
$
300,620
Cost of revenues
(669,352
)
(217,916
)
(1,016,695
)
(283,953
)
Gross profit / (loss)
334,112
(17,562
)
1,476,061
16,667
Income from grants
85,727
54,828
124,180
143,106
Research and development expenses
(638,753
)
-
(667,835
)
(43,633
)
Administrative and selling expenses
(6,595,735
)
(444,129
)
(14,517,593
)
(754,434
)
Amortization of intangibles
29,047
-
(157,713
)
-
Operating loss
(6,785,602
)
(406,863
)
(13,742,899
)
(638,294
)
Finance costs
(3,139
)
(514
)
(13,419
)
(3,037
)
Fair value change of warrant liability
3,645,835
-
13,411,460
-
Foreign exchange differences, net
(10,839
)
8
13,116
(18,579
)
Other income / (expenses), net
10,435
98,351
94,105
(6,210
)
Loss before income tax
(3,143,311
)
(309,017
)
(237,637
)
(666,120
)
Income tax
-
(3,101
)
-
(3,101
)
Net loss
$
(3,143,311
)
$
(312,118
)
$
(237,637
)
$
(669,221
)
Net loss per share
Basic loss per share
(0.07
)
(0.02
)
(0.01
)
(0.04
)
Basic weighted average number of
shares
46,126,490
18,736,370
42,041,473
17,623,672
Diluted loss per share
(0.07
)
(0.02
)
(0.01
)
(0.04
)
Diluted weighted average number of
shares
46,126,490
18,736,370
42,041,473
17,623,672
ADVENT TECHNOLOGIES HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
(Unaudited)
2021
2020
Net Cash used in Operating
Activities
$
(16,231,479
)
$
(690,905
)
Cash Flows from Investing
Activities:
Purchases of property and equipment
(947,846
)
(64,786
)
Advances for the acquisition of property
and equipment
(2,528,957
)
-
Acquisition of a subsidiary, net of cash
acquired
(5,922,871
)
-
Net Cash used in Investing
Activities
$
(9,399,674
)
$
(64,786
)
Cash Flows from Financing
Activities:
Business Combination and PIPE financing,
net of issuance costs paid
141,120,851
-
Proceeds of issuance of preferred
stock
-
1,430,005
Proceeds from issuance of non-vested stock
awards
-
12,801
Repurchase of shares
-
(34,836
)
Proceeds of issuance of common stock and
paid-in capital from warrants exercise
262,177
-
State loan proceeds
117,490
-
Repayment of convertible promissory
notes
-
(500,000
)
Net Cash provided by Financing
Activities
$
141,500,518
$
907,970
Net increase in cash and cash
equivalents
$
115,869,365
$
152,279
Effect of exchange rate changes on cash
and cash equivalents
(276,042
)
(4,224
)
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
$
116,109,057
$
1,347,070
Supplemental Cash Flow
Information
Non-cash Operating Activities:
Recognition of stock grant plan
$
702,894
$
176,768
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 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 and six months
ended June 30, 2021 and 2020.
EBITDA and Adjusted EBITDA
Three months ended June
30, (Unaudited)
Six months ended June 30,
(Unaudited)
(in Millions of US dollars)
2021
2020
$ change
2021
2020
$ change
Net loss
$
(3.14
)
$
(0.31
)
(2.83
)
$
(0.24
)
$
(0.67
)
0.43
Depreciation of property and equipment
$
0.02
$
0.01
0.01
$
0.03
$
0.01
0.02
Amortization of intangibles
$
(0.03
)
$
0.00
(0.03
)
$
0.16
$
0.00
0.16
Finance costs
$
0.00
$
0.00
0.00
$
0.01
$
0.00
0.01
Other income / (expenses), net
$
(0.01
)
$
(0.10
)
0.09
$
(0.09
)
$
0.01
(0.10
)
Foreign exchange differences, net
$
0.01
$
(0.00
)
0.01
$
(0.01
)
$
0.02
(0.03
)
EBITDA
$
(3.15
)
$
(0.40
)
(2.75
)
$
(0.14
)
$
(0.63
)
0.49
Net change in warrant liability
$
(3.65
)
$
-
(3.65
)
$
(13.41
)
$
-
(13.41
)
One-Time Transaction Related Expenses
(1)
$
-
$
-
-
$
5.87
$
-
5.87
Adjusted EBITDA
$
(6.80
)
$
(0.40
)
(6.40
)
$
(7.68
)
$
(0.63
)
(7.05
)
(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 and six months ended June 30, 2021
and 2020.
Adjusted Net Loss
Three months ended June
30, (Unaudited)
Six months ended June 30,
(Unaudited)
(in Millions of US dollars)
2021
2020
$ change
2021
2020
$ change
Net loss
$
(3.14
)
$
(0.31
)
(2.83
)
$
(0.24
)
$
(0.67
)
0.43
One-Time Transaction Related Expenses
(1)
$
-
$
-
-
$
5.87
$
-
5.87
Net change in warrant liability
$
(3.65
)
$
-
(3.65
)
$
(13.41
)
$
-
(13.41
)
Adjusted Net Loss
$
(6.79
)
$
(0.31
)
(6.48
)
$
(7.78
)
$
(0.67
)
(7.11
)
(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/20210812005261/en/
Advent Technologies Holdings, Inc. Elisabeth Maragoula
emaragoula@advent.energy
Sloane & Company James Goldfarb / Emily Mohr
jgoldfarb@sloanepr.com / emohr@sloanepr.com
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