Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast, Business Update

FREYR Battery Reports Second Quarter 2022 Results


FREYR Battery (NYSE: FREY) ("FREYR" or the "company"), a developer of clean, next-generation battery cell production capacity, today reported financial results for the second quarter of 2022.

Highlights of the second quarter 2022 and subsequent events:

"Our second quarter was punctuated by the achievement of key milestones, the demonstration of meaningful financial support from the Norwegian Government and other key OECD governmental entities, the consummation of new strategic relationships across the battery value chain, and accelerating commercial momentum," remarked Tom Einar Jensen, FREYR's CEO. "As energy security and government-backed decarbonization mandates gain traction in key end markets across Europe and the U.S., we are advancing several strategic initiatives to further our aspirations to become an industrial partner of choice in the clean battery space."

"Looking ahead to the second half of 2022 and beyond, our team is focused on executing construction of the Customer Qualification Plant and Giga Arctic projects in Mo i Rana, formalizing commitments with our financial, governmental, and strategic partners to accelerate our growth, and increasing our presence across the battery value chain," 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 18 months:

Presentation of Second Quarter 2022 Results

A presentation will be held today, August 8, 2022, at 7:30 am Eastern Daylight Time (1:30 pm Central European Time) to discuss financial results for the second 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: 868004

A webcast of the conference call will be broadcast simultaneously at https://streams.eventcdn.net/freyer/2022q2/ 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"); the ability to secure critical path, long-lead time equipment for the FREYR Facilities in a timely manner; the construction of FREYR's CQP and its anticipated factory acceptance testing in H2 2022, as well as the commencement of a ramp up of sample cell production in Q1 2023; the progress and development of customer relationships and offtake agreements; FREYR's ability to convert any conditional agreements, including heads of terms agreements, into definitive agreements; the development and growth of FREYR's target markets; the progress and development of FREYR's joint ventures and partnerships; the development and commercialization of other battery technologies or battery chemistries; 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 expansion across the battery value chain; FREYR's commitment to accelerating its development plans in the U.S. based on improving market conditions and the financial incentives attendant to the proposed Inflation Reduction Act; the continued favorable evolution of supply-demand dynamics in core end markets; FREYR's ability to replicate the Giga Arctic development across multiple jurisdictions based on a commercial framework of allocating 50% of respective plant capacities to long-term sales agreements and 50% to merchant sales; the pursuit of a technology licensing agreement with Aleees; 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; 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-1 filed with the Securities and Exchange Commission (the "SEC") on August 9, 2021, as amended, 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)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

484,204

 

 

$

563,956

 

Restricted cash

 

 

4,160

 

 

 

1,671

 

Prepaid assets

 

 

19,348

 

 

 

15,882

 

Other current assets

 

 

5,728

 

 

 

1,282

 

Total current assets

 

 

513,440

 

 

 

582,791

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

45,339

 

 

 

21,062

 

Convertible note

 

 

20,722

 

 

 

20,231

 

Equity method investments

 

 

2,475

 

 

 

2,938

 

Right-of-use asset under operating leases

 

 

12,785

 

 

 

?

 

Other long-term assets

 

 

11

 

 

 

11

 

Total assets

 

$

594,772

 

 

$

627,033

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,025

 

 

$

3,813

 

Accrued liabilities and other

 

 

31,853

 

 

 

15,077

 

Accounts payable and accrued liabilities - related party

 

 

620

 

 

 

3,316

 

Deferred income

 

 

1,236

 

 

 

1,380

 

Share-based compensation liability

 

 

985

 

 

 

2,211

 

Total current liabilities

 

 

43,719

 

 

 

25,797

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

 

24,420

 

 

 

49,124

 

Operating lease liability

 

 

11,090

 

 

 

?

 

Long-term share-based compensation liability

 

 

2,583

 

 

 

6,627

 

Total liabilities

 

 

81,812

 

 

 

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 June 30, 2022 and December 31, 2021 and 116,704 and 116,854 ordinary shares outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

116,854

 

 

 

116,854

 

Additional paid-in capital

 

 

539,639

 

 

 

533,418

 

Treasury stock

 

 

(1,052

)

 

 

?

 

Accumulated other comprehensive (loss) income

 

 

(7,982

)

 

 

(524

)

Accumulated deficit

 

 

(134,499

)

 

 

(104,263

)

Total shareholders' equity

 

 

512,960

 

 

 

545,485

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

594,772

 

 

$

627,033

 

FREYR BATTERY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In Thousands, Except per Share Amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2022

 

2021

 

2022

 

2021

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative

$

28,150

 

$

7,176

 

$

52,764

 

 

$

16,188

 

Research and development

 

3,082

 

 

3,045

 

 

5,941

 

 

 

5,952

 

Equity in losses from investee

 

296

 

 

?

 

 

463

 

 

 

?

 

Total operating expenses

 

31,528

 

 

10,221

 

 

59,168

 

 

22,140

 

Loss from operations

 

(31,528

)

 

(10,221

)

 

(59,168

)

 

(22,140

)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Warrant liability fair value adjustment

 

33,392

 

 

?

 

 

24,704

 

 

?

 

Redeemable preferred shares fair value adjustment

 

?

 

 

69

 

 

?

 

 

75

 

Convertible notes fair value adjustment

 

270

 

 

?

 

 

491

 

 

?

 

Interest income

 

26

 

 

2

 

 

61

 

 

8

 

Interest expense

 

(12

)

 

?

 

 

(32

)

 

?

 

Foreign currency transaction gain (loss)

 

1,421

 

 

(208

)

 

1,090

 

 

(188

)

Other income, net

 

1,102

 

 

2,322

 

 

2,618

 

 

2,322

 

Total other income (expense)

 

36,199

 

 

2,185

 

 

28,932

 

 

2,217

 

Income (loss) before income taxes

 

4,671

 

 

(8,036

)

 

(30,236

)

 

(19,923

)

Income tax expense

 

?

 

 

?

 

 

?

 

 

?

 

Net income (loss)

$

4,671

 

$

(8,036

)

$

(30,236

)

$

(19,923

)

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

116,830

 

 

37,452

 

 

116,842

 

 

37,452

 

Diluted

 

119,250

 

 

37,452

 

 

116,842

 

 

37,452

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

Basic

$

0.04

 

$

(0.21

)

$

(0.26

)

$

(0.53

)

Diluted

 

0.04

 

 

(0.21

)

 

(0.26

)

 

(0.53

)

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Net income (loss)

$

4,671

 

$

(8,036

)

$

(30,236

)

$

(19,923

)

Foreign currency translation adjustments

 

(7,791

)

 

177

 

 

(7,458

)

 

234

 

Total comprehensive loss

$

(3,120

)

$

(7,859

)

$

(37,694

)

$

(19,689

)

FREYR BATTERY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

Six months ended
June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(30,236

)

 

$

(19,923

)

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

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

2,923

 

 

 

4,688

 

Depreciation

 

 

186

 

 

 

24

 

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

 

 

746

 

 

 

?

 

Warrant liability fair value adjustment

 

 

(24,704

)

 

 

?

 

Redeemable preferred shares fair value adjustment

 

 

?

 

 

 

(75

)

Convertible note fair value adjustment

 

 

(491

)

 

 

?

 

Equity in losses from investee

 

 

463

 

 

 

?

 

Foreign currency transaction net unrealized gain

 

 

(2,113

)

 

 

?

 

Other

 

 

?

 

 

 

28

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid assets

 

 

(5,229

)

 

 

(1,049

)

Other current assets

 

 

(7,434

)

 

 

(50)

 

Accounts payable and accrued liabilities

 

 

15,265

 

 

3,659

 

Accounts payable and accrued liabilities ? related party

 

 

638

 

 

 

950

 

Other current liabilities

 

 

(1

)

 

 

?

 

Deferred income

 

 

?

 

 

 

1,431

 

Operating lease liability

 

 

(443

)

 

 

?

 

Net cash used in operating activities

 

 

(50,430

)

 

 

(10,317

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Proceeds from property related grants

 

 

4,874

 

 

 

?

 

Purchases of property and equipment

 

 

(26,420

)

 

 

(107

)

Investments in equity method investee

 

 

(3,000

)

 

 

?

 

Purchases of other long-term assets

 

 

?

 

 

 

(12

)

Net cash used in investing activities

 

 

(24,546

)

 

 

(119

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of treasury shares

 

 

(1,052

)

 

 

?

 

Proceeds from issuance of redeemable preferred shares

 

 

?

 

 

 

7,500

 

Net cash (used in) provided by financing activities

 

 

(1,052

)

 

 

7,500

 

 

 

 

 

 

 

 

 

 

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

and restricted cash

 

 

(1,235

)

 

 

73

 

Net decrease in cash, cash equivalents, and restricted cash

 

 

(77,263

)

 

 

(2,863)

 

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

 

 

565,627

 

 

 

14,945

 

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

 

$

488,364

 

 

$

12,082

 

 

 

 

 

 

 

 

 

 

Reconciliation to consolidated balance sheets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

484,204

 

 

$

11,279

 

Restricted cash

 

 

4,160

 

 

 

803

 

Cash, cash equivalents, and restricted cash

 

$

488,364

 

 

$

12,082

 

 

 


These press releases may also interest you

at 10:00
Summit...

1 oct 2022
Consolidated Edison, Inc. ("Con Edison") today announced that it entered into a purchase and sale agreement pursuant to which Con Edison agreed to sell its interest in its wholly-owned subsidiary, Con Edison Clean Energy Businesses, Inc. and its...

1 oct 2022
Dylan Bowman, Red Bull athlete and multi-time ultra trail running champion, has entered a partnership with Japanese outdoor apparel brand, Goldwin. Bowman is Goldwin's first US athlete and will help to grow Goldwin's running apparel line in the US....

1 oct 2022
Yiwu is the world's capital of commodities, Yiwugo.com is the official website of the Yiwu Commodity Market, which is the largest commodity wholesale market in the world. Yiwugo hosts 50,000 merchants and 10 million registered buyers, 10% of whom are...

1 oct 2022
Development finance leader Alvaro Lario takes the helm of the UN's International Fund for Agricultural Development on Saturday with an urgent mission to battle poverty and hunger among the world's rural poor as they face existential threats of...

1 oct 2022
Today, the Minister of Seniors, Kamal Khera and the Minister of Health, Jean-Yves Duclos, issued the following statement: "Happy National Seniors Day! Every year, on October 1st, we celebrate seniors in Canada and express our gratitude for all of...



News published on 8 august 2022 at 06:05 and distributed by: