FREYR Battery Reports Third Quarter 2024 Results

By: FREYR Battery, Inc. via Business Wire

November 06, 2024 at 06:10 AM EST

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
	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/

Contacts

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

FREYR Battery Reports Third Quarter 2024 Results

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