- Entered into a joint development agreement with Hyundai
following the conclusion of a successful technology
assessment.
- Collaboration with Siemens Energy for maritime fuel cell
solution, integrating combined reformer/fuel cell modules into
power supply systems for yachts.
- Opening of the new Hood Park manufacturing facility in Boston,
MA, for state-of-the-art development and scale-up production.
- Agreement with BASF to establish end-to-end supply chain for
hydrogen fuel cell systems in Europe.
- Working actively with the Greek State for the timely signing of
Advent’s Green HiPo project, following official ratification from
the European Commission for funding of up to €782.1 million under
the Important Projects of Common European Interest (“IPCEI”)
Hy2Tech Program.
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 March 31, 2023. 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 2023 Financial Highlights
(All comparisons are to Q1 2022, unless otherwise stated)
- Revenue of $1.0 million and income from grants of $0.5 million,
for a total of $1.5 million.
- Operating expenses of $11.6 million, a year-over-year decrease
of $1.0 million, as administrative cost reductions implemented
throughout 2022 were partially offset by an increase in research
and development expenses.
- Net loss in Q1 of $(12.0) million or $(0.23) per share.
- Unrestricted cash reserves were $19.5 million as of March 31,
2023, a decrease of $13.4 million from December 31, 2022, driven by
R&D and administrative and selling expenses, as well as annual
insurance renewals, a $2.2 million increase in inventory and $1.9
million of capex spending in the first quarter.
“We have further consolidated our operations and continue to
develop our state-of-the-art technology, which has resulted in
marked progress with joint development agreements and technology
assessments. The focus towards the mobility sector and stationary
power sector has been endorsed by significant opportunity wins for
Advent,” said Dr. Vasilis Gregoriou, Chairman and CEO of Advent
Technologies. “We shall remain focused on successfully developing
innovative fuel cell systems and expanding our collaboration
agreements with world-class partners.”
Business Updates
Joint Development Agreement with Hyundai Motor Company
(“Hyundai”): On March 22, 2023, Advent and Hyundai announced
the conclusion of a successful technology assessment. The
assessment evaluated Advent’s proprietary MEA technology for
supplying Hyundai’s high-temperature fuel cell needs, and following
its success, the two companies entered into a Joint Development
Agreement (“JDA”). The JDA solidifies the interest of one of the
world leaders in fuel cell technology to further develop the HT-PEM
technology in collaboration with Advent. The first step of the JDA
focuses on the MEA. Advent’s goal is to provide its MEAs and its
HT-PEM fuel cell development expertise to co-develop with
automotive manufacturers the next generation of fuel cells for
heavy-duty mobility. The HT-PEM fuel cell technology is highly
differentiated compared with the current LT-PEM technology because
it allows a vehicle to operate with efuels such as eMethanol,
biofuels, and low-purity hydrogen. It allows higher impurity in the
hydrogen fuel or air intake, each of which are very common and have
repeatedly hampered LT-PEM deployments in real-world conditions.
HT-PEM fuel cells have built-in resilience, as they do not rely on
water for conductivity, therefore eliminating the problems of
operating in extreme heat, cold, or humid conditions, and have a
higher efficiency as a result of their high-temperature operation
which allows for optimized cooling, a critical performance
parameter for heavy-duty trucks and aircraft. Based on these
advantages, Advent will pursue strategic joint development
agreements to achieve its goal of supplying key MEA components and
technology to the mobility market.
Maritime Fuel Cell Solution for Superyachts: On February
9, 2023, Advent announced a new maritime collaboration with Siemens
Energy, a globally renowned energy technology company, offering
sustainable solutions across the entire energy value chain. Advent
and Siemens Energy will work together to develop a 50kW–500kW
maritime fuel cell solution for a range of superyachts, which will
provide a sustainable and reliable source of auxiliary power and
offer improved power density. This maritime fuel cell solution is
initially expected to be used as a hybrid power source, enabling
clean electricity generation instead of using conventional diesel
engines and generators for procedures such as anchoring and
maneuvering. As part of the agreement, Siemens Energy has placed an
initial order for twenty of Advent’s methanol-powered Serene fuel
cell systems. Following the completion of this project, the two
parties will explore the potential of developing similar solutions
for a wider range of business applications beyond maritime, such as
industrial power solutions.
Hood Park R&D and Manufacturing Facility: On March 6, 2023,
Advent announced that it opened its new R&D and manufacturing
facility at Hood Park in Boston, Massachusetts. Less than one month
later, on April 3, 2023, Massachusetts Governor Maura Healey, along
with other elected officials, esteemed guests and business
partners, attended the grand opening celebration. Hood Park will
enable Advent to scale-up and deliver on the increasing global
demand for electrochemical components in the clean energy sector by
including state-of-the-art coating machines to support the seamless
transition from prototypes to production runs for advanced
membranes and electrodes; a complete analytical facility dedicated
to quality control, performance analysis, and improving product
lifetime; fuel cell and water electrolysis test stations for
statistical process control and development of next-generation MEA
materials, and a mechanical engineering lab for developing
automated assembly processes for MEAs. One of the products to be
manufactured at Hood Park is the Ion Pair™ Advent MEA which is
currently being developed within the framework of L’Innovator, the
Company’s joint development program with the U.S. Department of
Energy. Advent intends that its proprietary fuel cell products,
such as Serene and Honey Badger 50™, will use the Ion Pair™ Advent
MEAs beginning in 2024. The Company expects that the introduction
of the Ion Pair™ Advent MEA will significantly reduce the cost of
our Serene flagship product suite and thus expand the immediately
addressable market. Furthermore, the expected system increase in
power density and lifetime will highly differentiate Advent’s fuel
cells in the heavy-duty mobility industry.
Agreement with BASF: On May 9, 2023, Advent and BASF
Environmental Catalyst and Metal Solutions, a global leader in
precious metals and catalysis, jointly announced a new agreement to
join efforts in building a closed loop component supply chain for
fuel cells and enter discussions to extend the partnership into the
field of water electrolysis. For 20 years, BASF Environmental
Catalyst and Metal Solutions has been a leader in membrane and MEA
technology for HT-PEM fuel cells with a strong foundation in
precious metal services and catalysis. HT-PEM fuel cells operate at
120 to 180°C, offer a broad operating window and tolerate
impurities in the hydrogen fuel source. The fuel cells also enable
simplified cooling and need no humidification. Advent offers
competitive fuel cell systems for stationary and portable
applications based on methanol and on-site reforming. In the
future, HT-PEM fuel cells will also be available for heavy duty
mobility and maritime power uses. The scope of the agreement
includes BASF’s role in scaling up MEA production at Advent’s
planned state-of-the-art manufacturing facility in Western
Macedonia, Greece, while offering Advent its full portfolio of
products and services to enable circularity in key materials. Both
companies will cooperate on BASF’s latest membrane development,
Celtec®-Z, and the new Ion Pair™ MEA by Advent, aiming for improved
performance, lifetime, and cost competitiveness.
Green HiPo Project: On March 29, 2023, Advent announced
that its Chairman and CEO, Dr. Vasilis Gregoriou, was elected as
the Chair of the IPCEI Hy2Tech Facilitation Group. The election
took place at the 1st General Assembly for Hy2Tech and Hy2Use, two
of the European Union’s IPCEIs, which aim to promote research,
innovation, and the first industrial deployment of hydrogen
technology infrastructure in Europe. The General Assembly was held
on March 28, 2023, in Berlin, and was attended by executives from
companies with projects ratified by the EU under the IPCEI
framework, as well as government and EU officials. Advent’s Green
HiPo project received a notification in June 2022 for up to €782.1
million in funding from the Greek State, the highest amount of
funding received for a project under IPCEI Hy2Tech. The European
Union officially ratified the project in July 2022. Green HiPo will
be based in the Western Macedonia region of Greece, where a
state-of-the-art facility will be established for the R&D and
production of innovative fuel cells and electrolyzer systems.
Advent has been actively working with the Greek State for the
timely signing of the contract.
Dr. Gregoriou concluded, “Advent continues to make significant
progress, and with the endorsement of our technology platform and
products, we now have a commercial portfolio that will advance
throughout 2023 and beyond. We will continue to consolidate our
business with a view to maximizing efficiency and effectiveness
throughout our global operations, and to focus on core markets and
significant projects. The opening of our R&D and manufacturing
facility at Hood Park provides an anchor for our operations in
North America. The Greek State is progressing with the process for
initiating the Green HiPo project, and we will provide an update at
the appropriate time. I remain confident in the potential of Advent
and our technology, and I am very optimistic that we will continue
to increase market share as economies embrace clean energy and
decarbonization.”
Conference Call
The Company will host a conference call on Monday, May 15, 2023,
at 9:00 AM ET to discuss its results.
To access the call please dial (888) 660-6182 from the United
States, or (929) 203-0891 from outside the U.S. The conference call
I.D. number is 3273042. Participants should dial in 5 to 10 minutes
before the scheduled time.
A replay of the call can also be accessed via phone through May
29, 2023, by dialing (800) 770-2030 from the U.S., or (647)
362-9199 from outside the U.S. The conference I.D. number is
3273042.
About Advent Technologies Holdings, Inc.
Advent Technologies Holdings, Inc. is a U.S. corporation that
develops, manufactures, and assembles complete fuel cell systems as
well as supplying customers with critical components for fuel cells
in the renewable energy sector. Advent is headquartered in Boston,
Massachusetts, with offices in California, Greece, Denmark,
Germany, and the Philippines. With more than 150 patents issued,
pending, and/or licensed for fuel cell technology, Advent holds the
IP for next-generation HT-PEM that enables various fuels to
function at high temperatures and under extreme conditions,
suitable for the automotive, aviation, defense, oil and gas,
marine, and power generation sectors. For more information, please
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
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 31, 2023, 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. 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
(Amounts in USD thousands,
except share and per share amounts)
As of
ASSETS
March 31, 2023
(Unaudited)
December 31, 2022
Current assets:
Cash and cash equivalents
$
19,545
$
32,869
Accounts receivable
563
979
Contract assets
294
52
Inventories
14,858
12,620
Prepaid expenses and Other current
assets
3,739
2,980
Total current assets
38,999
49,500
Non-current assets:
Goodwill
5,742
5,742
Intangibles, net
5,843
6,062
Property and equipment, net
20,162
17,938
Right-of-use assets
4,024
4,055
Other non-current assets
5,754
5,971
Available for sale financial asset
326
320
Total non-current assets
41,851
40,088
Total assets
$
80,850
$
89,588
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Trade and other payables
$
5,397
$
4,680
Deferred income from grants, current
833
801
Contract liabilities
986
1,019
Other current liabilities
5,079
4,703
Operating lease liabilities
2,424
2,280
Income tax payable
187
183
Total current liabilities
14,906
13,666
Non-current liabilities:
Warrant liability
608
998
Long-term operating lease liabilities
9,407
9,802
Defined benefit obligation
80
72
Deferred income from grants,
non-current
35
50
Other long-term liabilities
746
852
Total non-current liabilities
10,876
11,774
Total liabilities
25,782
25,440
Commitments and contingent
liabilities
Stockholders’ equity
Common stock ($0.0001 par value per share;
Shares authorized: 110,000,000 at March 31, 2023 and December 31,
2022; Issued and outstanding: 52,261,643 and 51,717,720 at March
31, 2023 and December 31, 2022, respectively)
5
5
Preferred stock ($0.0001 par value per
share; Shares authorized: 1,000,000 at March 31, 2023 and December
31, 2022; nil issued and outstanding at March 31, 2023 and December
31, 2022)
-
-
Additional paid-in capital
177,081
174,509
Accumulated other comprehensive loss
(2,268
)
(2,604
)
Accumulated deficit
(119,750
)
(107,762
)
Total stockholders’ equity
55,068
64,148
Total liabilities and stockholders’
equity
$
80,850
$
89,588
ADVENT TECHNOLOGIES HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Amounts in USD thousands,
except share and per share amounts)
Three months ended March
31, (Unaudited)
2023
2022
Revenue, net
$
977
$
1,256
Cost of revenues
(1,484
)
(1,517
)
Gross loss
(507
)
(261
)
Income from grants
534
508
Research and development expenses
(3,141
)
(2,149
)
Administrative and selling expenses
(8,489
)
(10,498
)
Amortization of intangibles
(221
)
(699
)
Operating loss
(11,824
)
(13,099
)
Fair value change of warrant liability
390
8,376
Finance income / (expenses), net
110
(10
)
Foreign exchange gains / (losses), net
(41
)
(17
)
Other income / (expenses), net
173
(3
)
Loss before income tax
(11,192
)
(4,753
)
Income taxes
(796
)
657
Net loss
$
(11,988
)
$
(4,096
)
Net loss per share
Basic loss per share
(0.23
)
(0.08
)
Basic weighted average number of
shares
52,003,168
51,253,591
Diluted loss per share
(0.23
)
(0.08
)
Diluted weighted average number of
shares
52,003,168
51,253,591
ADVENT TECHNOLOGIES HOLDINGS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in USD
thousands)
Three months ended March
31, (Unaudited)
2023
2022
Net Cash used in Operating
Activities
$
(11,448
)
$
(19,311
)
Cash Flows from Investing
Activities:
Purchases of property and equipment
(911
)
(950
)
Purchases of intangible assets
-
(13
)
Advances for the acquisition of property
and equipment
(976
)
(50
)
Receipt of government grants
-
3
Net Cash used in Investing
Activities
$
(1,887
)
$
(1,010
)
Net decrease in cash, cash equivalents,
restricted cash and restricted cash equivalents
$
(13,335
)
$
(20,321
)
Effect of exchange rate changes on cash,
cash equivalent, restricted cash and restricted cash
equivalents
11
(161
)
Cash, cash equivalents, restricted cash
and restricted cash equivalents at the beginning of the period
33,619
79,764
Cash, cash equivalents, restricted cash
and restricted cash equivalents at the end of the period
$
20,295
$
59,282
Supplemental Cash Flow
Information
Cash activities
Interest paid
$
-
$
6
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
Advent’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 items such as one-time
transaction costs, asset impairment charges, and fair value changes
in the warrant liability.
The following tables show a reconciliation of net loss to EBITDA
and Adjusted EBITDA for the three months ended March 31, 2023 and
2022.
EBITDA and Adjusted EBITDA
Three months ended March
31, (Unaudited)
(in Millions of US dollars)
2023
2022
$ change
Net loss
$
(11.99
)
$
(4.10
)
(7.89
)
Depreciation of property and equipment
$
0.40
$
0.42
(0.02
)
Amortization of intangibles
$
0.22
$
0.70
(0.48
)
Finance income / (expenses), net
$
(0.11
)
$
0.01
(0.12
)
Other income / (expenses), net
$
(0.17
)
$
-
(0.17
)
Foreign exchange differences, net
$
0.04
$
0.02
0.02
Income taxes
$
0.80
$
(0.66
)
1.46
EBITDA
$
(10.81
)
$
(3.61
)
(7.20
)
Net change in warrant liability
$
(0.39
)
$
(8.38
)
7.99
Adjusted EBITDA
$
(11.20
)
$
(11.99
)
0.79
Adjusted Net Loss
This supplemental non-GAAP measure is provided to assist readers
in determining our financial performance. We believe this measure
is useful in assessing performance and highlighting trends on an
overall basis. Adjusted Net Loss differs from the most comparable
GAAP measure, net loss, primarily because it does not include
one-time transaction costs, asset impairment charges and warrant
liability changes. The following table shows a reconciliation of
net loss to Adjusted Net Loss for the three months ended March 31,
2023 and 2022.
Adjusted Net Loss
Three months ended March
31, (Unaudited)
(in Millions of US dollars)
2023
2022
$ change
Net loss
$
(11.99)
$
(4.10)
(7.89)
Net change in warrant liability
$
(0.39)
$
(8.38)
7.99
Adjusted Net Loss
$
(12.38)
$
(12.48)
0.10
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005356/en/
Advent Technologies Holdings, Inc.
Naiem Hussain nhussain@advent.energy
Chris Kaskavelis press@advent.energy
Advent Technologies (NASDAQ:ADN)
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