NEW YORK & OSLO, Norway & NEWNAN, Ga.--(BUSINESS WIRE)--
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
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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 $184.1 million, and no debt.
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FREYR BATTERY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
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September 30,
2024
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December 31,
2023
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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181,851
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$
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253,339
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Restricted cash
|
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2,202
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|
|
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22,403
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|
|
Prepaid assets
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2,838
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|
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2,168
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|
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Other current assets
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|
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12,583
|
|
|
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34,044
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Total current assets
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199,474
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311,954
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Property and equipment, net
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368,342
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366,357
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Intangible assets, net
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2,700
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|
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2,813
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Long-term investments
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21,819
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22,303
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Right-of-use asset under operating leases
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22,640
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24,476
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Other long-term assets
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10
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4,282
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Total assets
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$
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614,985
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$
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732,185
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$
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10,080
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$
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18,113
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Accrued liabilities and other
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21,254
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30,790
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Share-based compensation liability
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19
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281
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Total current liabilities
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31,353
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49,184
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Warrant liability
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721
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2,025
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Operating lease liability
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16,775
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18,816
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Other long-term liabilities
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27,446
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27,444
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Total liabilities
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76,295
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97,469
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Commitments and contingencies
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Stockholders’ equity:
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Preferred stock, $0.01 par value, 10,000 shares authorized, none issued and outstanding as of both September 30, 2024 and December 31, 2023
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—
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—
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Common stock, $0.01 par value, 355,000 shares authorized as of both September 30, 2024 and December 31, 2023; 140,490 issued and outstanding as of September 30, 2024; and 139,705 issued and outstanding as of December 31, 2023
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1,405
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1,397
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Additional paid-in capital
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929,324
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925,623
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Accumulated other comprehensive loss
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(34,035
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)
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(18,826
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)
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Accumulated deficit
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(358,004
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)
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(274,999
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)
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Total stockholders' equity
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538,690
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633,195
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Non-controlling interests
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—
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1,521
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Total equity
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538,690
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634,716
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Total liabilities and equity
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$
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614,985
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$
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732,185
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FREYR BATTERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except per share amounts)
(Unaudited)
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Three months ended
September 30,
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Nine months ended
September 30,
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2024
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2023
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2024
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2023
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Operating expenses:
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General and administrative
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$
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18,515
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$
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27,772
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$
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61,386
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$
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85,405
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Research and development
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8,616
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7,086
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30,854
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18,295
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Restructuring charge
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4,507
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—
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4,644
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—
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Share of net loss of equity method investee
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150
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|
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|
153
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|
484
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|
208
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Total operating expenses
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31,788
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35,011
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97,368
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103,908
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Loss from operations
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(31,788
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)
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(35,011
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)
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(97,368
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)
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(103,908
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)
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Other income (expense):
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Warrant liability fair value adjustment
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1,096
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24,399
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1,294
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23,248
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Interest income, net
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1,074
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1,284
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3,627
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6,042
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Foreign currency transaction (loss) gain
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(110
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)
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(3,213
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)
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1,245
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20,546
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Other income, net
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2,172
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|
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2,537
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|
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7,806
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6,103
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Total other income
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4,232
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25,007
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13,972
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55,939
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Loss before income taxes
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(27,556
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)
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(10,004
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)
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(83,396
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)
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(47,969
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)
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Income tax expense
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|
—
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—
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(11
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)
|
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(341
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)
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Net loss
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(27,556
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)
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(10,004
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)
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(83,407
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)
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(48,310
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)
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Net loss attributable to non-controlling interests
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|
81
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|
|
|
219
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|
|
|
402
|
|
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|
517
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Net loss attributable to stockholders
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$
|
(27,475
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)
|
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$
|
(9,785
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)
|
|
$
|
(83,005
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)
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|
$
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(47,793
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)
|
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|
|
|
|
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Weighted average shares outstanding - basic and diluted
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140,490
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|
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|
139,705
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|
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140,102
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|
|
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139,705
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Net loss per share attributable to stockholders - basic and diluted
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$
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(0.20
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)
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$
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(0.07
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)
|
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$
|
(0.59
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)
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$
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(0.34
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)
|
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|
|
|
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Other comprehensive (loss) income:
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|
|
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Net loss
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$
|
(27,556
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)
|
|
$
|
(10,004
|
)
|
|
$
|
(83,407
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)
|
|
$
|
(48,310
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)
|
|
Foreign currency translation adjustments
|
|
|
5,973
|
|
|
|
6,134
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|
|
|
(15,209
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)
|
|
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(48,009
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)
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Total comprehensive loss
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|
$
|
(21,583
|
)
|
|
$
|
(3,870
|
)
|
|
$
|
(98,616
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)
|
|
$
|
(96,319
|
)
|
|
Comprehensive loss attributable to non-controlling interests
|
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|
81
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|
|
|
219
|
|
|
|
402
|
|
|
|
517
|
|
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Comprehensive loss attributable to stockholders
|
|
$
|
(21,502
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)
|
|
$
|
(3,651
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)
|
|
$
|
(98,214
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)
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|
$
|
(95,802
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)
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FREYR BATTERY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
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Nine months ended
September 30,
|
|
|
|
|
2024
|
|
|
|
2023
|
|
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Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(83,407
|
)
|
|
$
|
(48,310
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)
|
|
Adjustments to reconcile net loss to cash used in operating activities:
|
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|
|
|
|
Share-based compensation expense
|
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|
6,449
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|
|
|
7,859
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|
|
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
|
)
|
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Other
|
|
|
—
|
|
|
|
(929
|
)
|
|
Changes in assets and liabilities:
|
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|
|
|
|
Prepaid assets and other current assets
|
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|
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
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)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
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|
|
|
|
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
|
|
Source: FREYR Battery, Inc.