NEW YORK & OSLO, Norway & LUXEMBOURG–(BUSINESS WIRE)–FREYR Battery (NYSE: FREY) (“FREYR” or the “company”), a developer of clean, next-generation battery cell production capacity, today reported financial results for the third quarter of 2022.
Highlights of the third quarter 2022 and subsequent events:
“We are excited with the progress FREYR demonstrated to support our industrialization plan during and subsequent to the third quarter, which included the start of our Giga America project development, securing our first binding long-term sales agreement with Nidec, and completing the initial stage of the project financing process for Giga Arctic” remarked Tom Einar Jensen, FREYR’s Co-Founder and CEO. “With the selection and purchase of the Giga America site now concluded, FREYR is moving rapidly and decisively to advance our strategic goal to become an industrialization partner of choice in the clean battery space on both sides of the Atlantic.”
“Looking through to the fourth quarter and 2023, our team is focused on meeting the key milestones that will further validate the 24M platform, unlock project financing for Giga Arctic, enable strategic capital formation, drive additional sales agreements, and facilitate accelerated development of Giga America,” concluded Jensen.
Business Update
Results Overview, Financing and Liquidity
Business Outlook
FREYR is focused on advancing the following strategic mandates and milestones over the next 12 months:
Presentation of Third Quarter 2022 Results
A presentation will be held today, November 14, 2022, at 7:30 am Eastern Standard Time (1:30 pm Central European Time) to discuss financial results for the third quarter 2022. The results and presentation material will be available for download at https://ir.freyrbattery.com.
To access the conference call, listeners should contact the conference call operator at the appropriate number listed below approximately 10 minutes prior to the start of the call.
Participant conference call dial-in numbers:
United Kingdom: 020 3936 2999
United States: 1 (646) 664 1960
All other locations: +44 20 3936 2999
The participant passcode for the call is: 303285
A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/2022q3 on a listen-only basis. Please log in at least 10 minutes in advance to register and download any necessary software.
A replay of the webcast will be available at https://ir.freyrbattery.com/events-and-presentations/Events-Calendar/default.aspx
About FREYR Battery
FREYR Battery aims to provide industrial scale clean battery solutions to reduce global emissions. Listed on the New York Stock Exchange, FREYR’s mission is to produce green battery cells to accelerate the decarbonization of energy and transportation systems globally. FREYR has commenced building the first of its planned factories in Mo i Rana, Norway and announced potential development of industrial scale battery cell production in Vaasa, Finland, and the United States. FREYR intends to deliver a minimum of 50 GWh of battery cell capacity by 2025, over 100 GWh of annual capacity by 2028, and over 200 GWh of annual capacity by 2030. To learn more about FREYR, please visit www.freyrbattery.com.
Cautionary Statement Concerning Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act 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, including, without limitation, statements regarding the development, construction, timeline, capacity, and other usefulness of FREYR’s CQP, Giga Arctic, and other planned or future production facilities or Gigafactories in the U.S. (collectively, the “FREYR Facilities”); Giga America’s initial battery cell production module of approximately 34 GWh; the progress and expected outcomes of FREYR’s industrialization plans and capital formation; the expected benefits and progress of any value-accretive upstream and downstream project opportunities; the ability to secure critical path production equipment for the FREYR Facilities in a timely manner; the construction of FREYR’s CQP and its anticipated acceptance tests in H1 2023, as well as the targeted start and ramp up of sample cell production in 1Q 2023; the progress and development of FREYR’s strategic and financial partnerships; FREYR’s ability to convert any conditional agreements into definitive agreements; the progress and development of FREYR’s joint ventures and partnerships; exploration of or progress toward additional debt or equity capital raises, including securing financial support, such as loan guarantees and debt financing support from governments and other entities, to fund FREYR’s planned expansion; FREYR’s ability to advance strategic initiatives to further its aspirations to become an industrial partner of choice in the clean battery space; FREYR’s commitment to accelerating its development plans in the U.S. based on the financial incentives attendant to the proposed Inflation Reduction Act or from any state or local governments; the expectation that the sample cells from the CQP will accelerate customer dialogues, fortify FREYR’s competitive position, demonstrate the scalability of the 24M manufacturing process, and satisfy key technical performance milestones; the progress of securing project financing credit support from ECAs and MDFIs; FREYR’s timeline of the project financing process for Giga Arctic; the progress of discussions that will further FREYR’s ambition to be a scaling partner of choice for leading parallel technology platforms that target distinct and complimentary end market applications across the ESS, passenger EV, and commercial electric mobility spaces; the advancement of FREYR’s augmented value proposition strategy and the ability to meet its key objectives in accordance with this strategy; FREYR’s intention to maximize sustainable long-term shareholder value and enhance its competitive position; FREYR’s intention to establish decarbonized and localized supply chains; and the attainment of operational milestones are forward looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from the expected results. Most of these factors are outside FREYR’s control and are difficult to predict. Additional information about factors that could materially affect FREYR is set forth under the “Risk Factors” section in (i) FREYR’s Registration Statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”) on September 1, 2022, and (ii) FREYR’s annual report on Form 10-K filed with the SEC on March 9, 2022, available on the SEC’s website at www.sec.gov.
Except as otherwise required by applicable law, FREYR 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. Should underlying assumptions prove incorrect, actual results and projections could differ material from those expressed in any forward-looking statements.
FREYR BATTERY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
September 30,
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
416,431
$
563,956
Restricted cash
2,160
1,671
Prepaid assets
9,397
15,882
Other current assets
9,317
1,282
Total current assets
437,305
582,791
Property and equipment, net
90,392
21,062
Convertible note
20,498
20,231
Equity method investments
1,807
2,938
Right-of-use asset under operating leases
12,730
—
Other long-term assets
9
11
Total assets
$
562,741
$
627,033
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
2,795
$
3,813
Accrued liabilities and other
34,026
15,077
Accounts payable and accrued liabilities – related party
799
3,316
Deferred income
1,306
1,380
Share-based compensation liability
8,227
2,211
Total current liabilities
47,153
25,797
Warrant liability
94,712
49,124
Operating lease liability
9,933
—
Long-term share-based compensation liability
—
6,627
Total liabilities
151,798
81,548
Commitments and contingencies
Shareholders’ equity:
Ordinary share capital, no par value, 245,000 ordinary shares authorized and 116,854 issued as of both September 30, 2022 and December 31, 2021 and 116,704 and 116,854 ordinary shares outstanding as of September 30, 2022 and December 31, 2021, respectively
116,854
116,854
Additional paid-in capital
540,561
533,418
Treasury stock
(1,052
)
—
Accumulated other comprehensive (loss) income
(17,071
)
(524
)
Accumulated deficit
(228,349
)
(104,263
)
Total shareholders’ equity
410,943
545,485
Total liabilities and shareholders’ equity
$
562,741
$
627,033
FREYR BATTERY
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,
2022
2021
2022
2021
Operating expenses:
General and administrative
$
25,124
$
30,057
$
77,888
$
46,245
Research and development
3,253
5,257
9,194
11,209
Equity in losses from investee
668
—
1,131
—
Total operating expenses
29,045
35,314
88,213
57,454
Loss from operations
(29,045
)
(35,314
)
(88,213
)
(57,454
)
Other income (expense):
Warrant liability fair value adjustment
(70,292
)
(11,173
)
(45,588
)
(11,173
)
Redeemable preferred shares fair value adjustment
—
—
—
75
Convertible note fair value adjustment
(224
)
—
267
—
Interest income
71
51
132
59
Interest expense
(11
)
(1
)
(43
)
(1
)
Foreign currency transaction gain
4,325
1,015
5,415
827
Other income, net
1,326
3
3,944
2,325
Total other income (expense)
(64,805
)
(10,105
)
(35,873
)
(7,888
)
Loss before income taxes
(93,850
)
(45,419
)
(124,086
)
(65,342
)
Income tax expense
—
—
—
—
Net loss
$
(93,850
)
$
(45,419
)
$
(124,086
)
$
(65,342
)
Weighted average ordinary shares outstanding – basic and diluted
116,704
108,713
116,795
61,467
Net loss per share – basic and diluted
$
(0.80
)
$
(0.42
)
$
(1.06
)
$
(1.06
)
Other comprehensive loss:
Net loss
$
(93,850
)
$
(45,419
)
$
(124,086
)
$
(65,342
)
Foreign currency translation adjustments
(9,089
)
(558
)
(16,547
)
(324
)
Total comprehensive loss
$
(102,939
)
$
(45,977
)
$
(140,633
)
$
(65,666
)
FREYR BATTERY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Nine months ended
September 30,
2022
2021
Cash flows from operating activities:
Net loss
$
(124,086
)
$
(65,342
)
Adjustments to reconcile net loss to cash used in operating activities:
Share-based compensation expense
9,280
14,367
Depreciation
298
54
Reduction in the carrying amount of right-of-use assets
1,096
—
Warrant liability fair value adjustment
45,588
11,173
Redeemable preferred shares fair value adjustment
—
(74
)
Convertible note fair value adjustment
(267
)
—
Equity in losses from investee
1,131
—
Foreign currency transaction net unrealized gain
(4,864
)
—
Other
—
(54
)
Changes in assets and liabilities:
Prepaid assets
4,054
(6,065
)
Other current assets
(11,113
)
(236
)
Accounts payable and accrued liabilities
5,692
8,365
Accounts payable and accrued liabilities – related party
820
738
Other current liabilities
(2
)
—
Deferred income
182
1,431
Operating lease liability
(802
)
—
Net cash used in operating activities
(72,993
)
(35,643
)
Cash flows from investing activities:
Proceeds from property related grants
10,461
—
Purchases of property and equipment
(77,687
)
(4,099
)
Investments in equity method investee
(3,000
)
—
Purchases of other long-term assets
—
(12
)
Net cash used in investing activities
(70,226
)
(4,111
)
Cash flows from financing activities:
Repurchase of treasury shares
(1,052
)
—
Proceeds from Business Combination
—
70,836
Proceeds from PIPE Investment
—
600,000
Issuance cost
—
(26,334
)
Payments for the Norway Demerger
—
(3,002
)
Proceeds from issuance of redeemable preferred shares
—
7,500
Net cash (used in) provided by financing activities
(1,052
)
649,000
Effect of changes in foreign exchange rates on cash, cash equivalents, and restricted cash
(2,765
)
(730
)
Net (decrease) increase in cash, cash equivalents, and restricted cash
(147,036
)
608,516
Cash, cash equivalents, and restricted cash at beginning of period
565,627
14,945
Cash, cash equivalents, and restricted cash at end of period
$
418,591
$
623,461
Reconciliation to consolidated balance sheets:
Cash and cash equivalents
$
416,431
$
622,582
Restricted cash
2,160
879
Cash, cash equivalents, and restricted cash
$
418,591
$
623,461
Investor contact:
Jeffrey Spittel
Vice President, Investor Relations
[email protected]
Tel: (+1) 281-222-0161
Media contact:
Katrin Berntsen
Vice President, Communication and Public Affairs
[email protected]
Tel: (+47) 920 54 570
Investor contact:
Jeffrey Spittel
Vice President, Investor Relations
[email protected]
Tel: (+1) 281-222-0161
Media contact:
Katrin Berntsen
Vice President, Communication and Public Affairs
[email protected]
Tel: (+47) 920 54 570