FREY FREYR Battery Inc

FREYR Battery, Inc. (NYSE: FREY) (“FREYR” or the “Company”), a developer of sustainable clean energy capacity and solutions, today reported financial results for the third quarter of 2024.

Results Overview, Financing, and Liquidity

• FREYR reported a net loss attributable to stockholders for the third quarter of 2024 of $(27.5) million, or $(0.20) per diluted share compared to a net loss for the third quarter of 2023 of $(9.8) million or $(0.07) per diluted share. The increase in net loss in the third quarter of 2024 was primarily due to a $1.1 million warrant liability fair value adjustment for the three months ended September 30, 2024, compared to $24.4 million for the three months ended September 30, 2023, and a restructuring charge of $4.5 million for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.
• As of September 30, 2024, FREYR had cash, cash equivalents, and restricted cash of $184.1 million, and no debt.

FREYR BATTERY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

September 30, 2024

 

December 31, 2023

 

 

 

ASSETS

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

181,851

 

 

$

253,339

 

Restricted cash

 

 

2,202

 

 

 

22,403

 

Prepaid assets

 

 

2,838

 

 

 

2,168

 

Other current assets

 

 

12,583

 

 

 

34,044

 

Total current assets

 

 

199,474

 

 

 

311,954

 

 

 

 

 

 

Property and equipment, net

 

 

368,342

 

 

 

366,357

 

Intangible assets, net

 

 

2,700

 

 

 

2,813

 

Long-term investments

 

 

21,819

 

 

 

22,303

 

Right-of-use asset under operating leases

 

 

22,640

 

 

 

24,476

 

Other long-term assets

 

 

10

 

 

 

4,282

 

Total assets

 

$

614,985

 

 

$

732,185

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

 

Accounts payable

 

$

10,080

 

 

$

18,113

 

Accrued liabilities and other

 

 

21,254

 

 

 

30,790

 

Share-based compensation liability

 

 

19

 

 

 

281

 

Total current liabilities

 

 

31,353

 

 

 

49,184

 

 

 

 

 

 

Warrant liability

 

 

721

 

 

 

2,025

 

Operating lease liability

 

 

16,775

 

 

 

18,816

 

Other long-term liabilities

 

 

27,446

 

 

 

27,444

 

Total liabilities

 

 

76,295

 

 

 

97,469

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock, $0.01 par value, 10,000 shares authorized, none issued and outstanding as of both September 30, 2024 and December 31, 2023

 

 

—

 

 

 

—

 

Common stock, $0.01 par value, 355,000 shares authorized as of both September 30, 2024 and December 31, 2023; 140,490 issued and outstanding as of September 30, 2024; and 139,705 issued and outstanding as of December 31, 2023

 

 

1,405

 

 

 

1,397

 

Additional paid-in capital

 

 

929,324

 

 

 

925,623

 

Accumulated other comprehensive loss

 

 

(34,035

)

 

 

(18,826

)

Accumulated deficit

 

 

(358,004

)

 

 

(274,999

)

Total stockholders' equity

 

 

538,690

 

 

 

633,195

 

 

 

 

 

 

Non-controlling interests

 

 

—

 

 

 

1,521

 

Total equity

 

 

538,690

 

 

 

634,716

 

 

 

 

 

 

Total liabilities and equity

 

$

614,985

 

 

$

732,185

 

FREYR BATTERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative

 

$

18,515

 

 

$

27,772

 

 

$

61,386

 

 

$

85,405

 

Research and development

 

 

8,616

 

 

 

7,086

 

 

 

30,854

 

 

 

18,295

 

Restructuring charge

 

 

4,507

 

 

 

—

 

 

 

4,644

 

 

 

—

 

Share of net loss of equity method investee

 

 

150

 

 

 

153

 

 

 

484

 

 

 

208

 

Total operating expenses

 

 

31,788

 

 

 

35,011

 

 

 

97,368

 

 

 

103,908

 

Loss from operations

 

 

(31,788

)

 

 

(35,011

)

 

 

(97,368

)

 

 

(103,908

)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Warrant liability fair value adjustment

 

 

1,096

 

 

 

24,399

 

 

 

1,294

 

 

 

23,248

 

Interest income, net

 

 

1,074

 

 

 

1,284

 

 

 

3,627

 

 

 

6,042

 

Foreign currency transaction (loss) gain

 

 

(110

)

 

 

(3,213

)

 

 

1,245

 

 

 

20,546

 

Other income, net

 

 

2,172

 

 

 

2,537

 

 

 

7,806

 

 

 

6,103

 

Total other income

 

 

4,232

 

 

 

25,007

 

 

 

13,972

 

 

 

55,939

 

Loss before income taxes

 

 

(27,556

)

 

 

(10,004

)

 

 

(83,396

)

 

 

(47,969

)

Income tax expense

 

 

—

 

 

 

—

 

 

 

(11

)

 

 

(341

)

Net loss

 

 

(27,556

)

 

 

(10,004

)

 

 

(83,407

)

 

 

(48,310

)

Net loss attributable to non-controlling interests

 

 

81

 

 

 

219

 

 

 

402

 

 

 

517

 

Net loss attributable to stockholders

 

$

(27,475

)

 

$

(9,785

)

 

$

(83,005

)

 

$

(47,793

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

140,490

 

 

 

139,705

 

 

 

140,102

 

 

 

139,705

 

Net loss per share attributable to stockholders - basic and diluted

 

$

(0.20

)

 

$

(0.07

)

 

$

(0.59

)

 

$

(0.34

)

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

Net loss

 

$

(27,556

)

 

$

(10,004

)

 

$

(83,407

)

 

$

(48,310

)

Foreign currency translation adjustments

 

 

5,973

 

 

 

6,134

 

 

 

(15,209

)

 

 

(48,009

)

Total comprehensive loss

 

$

(21,583

)

 

$

(3,870

)

 

$

(98,616

)

 

$

(96,319

)

Comprehensive loss attributable to non-controlling interests

 

 

81

 

 

 

219

 

 

 

402

 

 

 

517

 

Comprehensive loss attributable to stockholders

 

$

(21,502

)

 

$

(3,651

)

 

$

(98,214

)

 

$

(95,802

)

FREYR BATTERY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Nine months ended September 30,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(83,407

)

 

$

(48,310

)

Adjustments to reconcile net loss to cash used in operating activities:

 

 

 

 

Share-based compensation expense

 

 

6,449

 

 

 

7,859

 

Depreciation and amortization

 

 

7,028

 

 

 

1,922

 

Reduction in the carrying amount of right-of-use assets

 

 

1,282

 

 

 

1,005

 

Warrant liability fair value adjustment

 

 

(1,294

)

 

 

(23,248

)

Share of net loss of equity method investee

 

 

484

 

 

 

208

 

Foreign currency transaction net unrealized gain

 

 

(1,075

)

 

 

(19,346

)

Other

 

 

—

 

 

 

(929

)

Changes in assets and liabilities:

 

 

 

 

Prepaid assets and other current assets

 

 

13

 

 

 

1,672

 

Accounts payable, accrued liabilities and other

 

 

(429

)

 

 

28,401

 

Operating lease liability

 

 

(1,626

)

 

 

(3,212

)

Net cash used in operating activities

 

 

(72,575

)

 

 

(53,978

)

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Proceeds from the return of property and equipment deposits

 

 

22,735

 

 

 

—

 

Proceeds from property related grants

 

 

—

 

 

 

3,500

 

Purchases of property and equipment

 

 

(34,683

)

 

 

(168,811

)

Investments in equity method investee

 

 

—

 

 

 

(1,655

)

Purchases of other long-term assets

 

 

—

 

 

 

(1,000

)

Net cash used in investing activities

 

 

(11,948

)

 

 

(167,966

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Payment for non-controlling interest

 

 

(4,130

)

 

 

—

 

Net cash used in financing activities

 

 

(4,130

)

 

 

—

 

 

 

 

 

 

Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash

 

 

(3,036

)

 

 

(13,240

)

Net decrease in cash, cash equivalents, and restricted cash

 

 

(91,689

)

 

 

(235,184

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

275,742

 

 

 

563,045

 

Cash, cash equivalents, and restricted cash at end of period

 

$

184,053

 

 

$

327,861

 

 

 

 

 

 

Supplementary disclosure for non-cash activities:

 

 

 

 

Accrued purchases of property and equipment

 

$

6,133

 

 

$

11,187

 

 

 

 

 

 

Reconciliation to condensed consolidated balance sheets:

 

 

 

 

Cash and cash equivalents

 

$

181,851

 

 

$

299,419

 

Restricted cash

 

 

2,202

 

 

 

28,442

 

Cash, cash equivalents, and restricted cash

 

$

184,053

 

 

$

327,861

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241105739786/en/

Investor contact: Jeffrey Spittel Senior Vice President, Investor Relations and Corporate Development jeffrey.spittel@freyrbattery.com Tel: (+1) 409-599-5706

Media contact: Amy Jaick Global Head of Communications amy.jaick@freyrbattery.com Tel: (+1) 973 713-5585