Advent Technologies Holdings Inc (ADN)

[WeTheMarket]

Advent Technologies Reports Q1 2023 Results
05/15/2023
https://ir.advent.energy/news/news-details/2023/Advent-Technologies-Reports-Q1-2023-Results/default.aspx

Highlights
- Entered into a joint development agreement with Hyundai following the conclusion of a successful technology assessment.
- Collaboration with Siemens Energy for maritime fuel cell solution, integrating combined reformer/fuel cell modules into power supply systems for yachts.
- Opening of the new Hood Park manufacturing facility in Boston, MA, for state-of-the-art development and scale-up production.
- Agreement with BASF to establish end-to-end supply chain for hydrogen fuel cell systems in Europe.
- Working actively with the Greek State for the timely signing of Advent’s Green HiPo project, following official ratification from the European Commission for funding of up to €782.1 million under the Important Projects of Common European Interest (“IPCEI”) Hy2Tech Program.

BOSTON--(BUSINESS WIRE)-- Advent Technologies Holdings, Inc. (NASDAQ: ADN) (“Advent” or the “Company”), an innovation-driven leader in the fuel cell and hydrogen technology space, today announced consolidated financial results for the three months ended March 31, 2023. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Q1 2023 Financial Highlights
(All comparisons are to Q1 2022, unless otherwise stated)

- Revenue of $1.0 million and income from grants of $0.5 million, for a total of $1.5 million.
- Operating expenses of $11.6 million, a year-over-year decrease of $1.0 million, as administrative cost reductions implemented throughout 2022 were partially offset by an increase in research and development expenses.
- Net loss in Q1 of $(12.0) million or $(0.23) per share.
- Unrestricted cash reserves were $19.5 million as of March 31, 2023, a decrease of $13.4 million from December 31, 2022, driven by R&D and administrative and selling expenses, as well as annual insurance renewals, a $2.2 million increase in inventory and $1.9 million of capex spending in the first quarter.

“We have further consolidated our operations and continue to develop our state-of-the-art technology, which has resulted in marked progress with joint development agreements and technology assessments. The focus towards the mobility sector and stationary power sector has been endorsed by significant opportunity wins for Advent,” said Dr. Vasilis Gregoriou, Chairman and CEO of Advent Technologies. “We shall remain focused on successfully developing innovative fuel cell systems and expanding our collaboration agreements with world-class partners.”

Business Updates

Joint Development Agreement with Hyundai Motor Company (“Hyundai”): On March 22, 2023, Advent and Hyundai announced the conclusion of a successful technology assessment. The assessment evaluated Advent’s proprietary MEA technology for supplying Hyundai’s high-temperature fuel cell needs, and following its success, the two companies entered into a Joint Development Agreement (“JDA”). The JDA solidifies the interest of one of the world leaders in fuel cell technology to further develop the HT-PEM technology in collaboration with Advent. The first step of the JDA focuses on the MEA. Advent’s goal is to provide its MEAs and its HT-PEM fuel cell development expertise to co-develop with automotive manufacturers the next generation of fuel cells for heavy-duty mobility. The HT-PEM fuel cell technology is highly differentiated compared with the current LT-PEM technology because it allows a vehicle to operate with efuels such as eMethanol, biofuels, and low-purity hydrogen. It allows higher impurity in the hydrogen fuel or air intake, each of which are very common and have repeatedly hampered LT-PEM deployments in real-world conditions. HT-PEM fuel cells have built-in resilience, as they do not rely on water for conductivity, therefore eliminating the problems of operating in extreme heat, cold, or humid conditions, and have a higher efficiency as a result of their high-temperature operation which allows for optimized cooling, a critical performance parameter for heavy-duty trucks and aircraft. Based on these advantages, Advent will pursue strategic joint development agreements to achieve its goal of supplying key MEA components and technology to the mobility market.

Maritime Fuel Cell Solution for Superyachts: On February 9, 2023, Advent announced a new maritime collaboration with Siemens Energy, a globally renowned energy technology company, offering sustainable solutions across the entire energy value chain. Advent and Siemens Energy will work together to develop a 50kW–500kW maritime fuel cell solution for a range of superyachts, which will provide a sustainable and reliable source of auxiliary power and offer improved power density. This maritime fuel cell solution is initially expected to be used as a hybrid power source, enabling clean electricity generation instead of using conventional diesel engines and generators for procedures such as anchoring and maneuvering. As part of the agreement, Siemens Energy has placed an initial order for twenty of Advent’s methanol-powered Serene fuel cell systems. Following the completion of this project, the two parties will explore the potential of developing similar solutions for a wider range of business applications beyond maritime, such as industrial power solutions.

Hood Park R&D and Manufacturing Facility: On March 6, 2023, Advent announced that it opened its new R&D and manufacturing facility at Hood Park in Boston, Massachusetts. Less than one month later, on April 3, 2023, Massachusetts Governor Maura Healey, along with other elected officials, esteemed guests and business partners, attended the grand opening celebration. Hood Park will enable Advent to scale-up and deliver on the increasing global demand for electrochemical components in the clean energy sector by including state-of-the-art coating machines to support the seamless transition from prototypes to production runs for advanced membranes and electrodes; a complete analytical facility dedicated to quality control, performance analysis, and improving product lifetime; fuel cell and water electrolysis test stations for statistical process control and development of next-generation MEA materials, and a mechanical engineering lab for developing automated assembly processes for MEAs. One of the products to be manufactured at Hood Park is the Ion Pair™ Advent MEA which is currently being developed within the framework of L’Innovator, the Company’s joint development program with the U.S. Department of Energy. Advent intends that its proprietary fuel cell products, such as Serene and Honey Badger 50™, will use the Ion Pair™ Advent MEAs beginning in 2024. The Company expects that the introduction of the Ion Pair™ Advent MEA will significantly reduce the cost of our Serene flagship product suite and thus expand the immediately addressable market. Furthermore, the expected system increase in power density and lifetime will highly differentiate Advent’s fuel cells in the heavy-duty mobility industry.

Agreement with BASF: On May 9, 2023, Advent and BASF Environmental Catalyst and Metal Solutions, a global leader in precious metals and catalysis, jointly announced a new agreement to join efforts in building a closed loop component supply chain for fuel cells and enter discussions to extend the partnership into the field of water electrolysis. For 20 years, BASF Environmental Catalyst and Metal Solutions has been a leader in membrane and MEA technology for HT-PEM fuel cells with a strong foundation in precious metal services and catalysis. HT-PEM fuel cells operate at 120 to 180°C, offer a broad operating window and tolerate impurities in the hydrogen fuel source. The fuel cells also enable simplified cooling and need no humidification. Advent offers competitive fuel cell systems for stationary and portable applications based on methanol and on-site reforming. In the future, HT-PEM fuel cells will also be available for heavy duty mobility and maritime power uses. The scope of the agreement includes BASF’s role in scaling up MEA production at Advent’s planned state-of-the-art manufacturing facility in Western Macedonia, Greece, while offering Advent its full portfolio of products and services to enable circularity in key materials. Both companies will cooperate on BASF’s latest membrane development, Celtec®-Z, and the new Ion Pair™ MEA by Advent, aiming for improved performance, lifetime, and cost competitiveness.

Green HiPo Project: On March 29, 2023, Advent announced that its Chairman and CEO, Dr. Vasilis Gregoriou, was elected as the Chair of the IPCEI Hy2Tech Facilitation Group. The election took place at the 1st General Assembly for Hy2Tech and Hy2Use, two of the European Union’s IPCEIs, which aim to promote research, innovation, and the first industrial deployment of hydrogen technology infrastructure in Europe. The General Assembly was held on March 28, 2023, in Berlin, and was attended by executives from companies with projects ratified by the EU under the IPCEI framework, as well as government and EU officials. Advent’s Green HiPo project received a notification in June 2022 for up to €782.1 million in funding from the Greek State, the highest amount of funding received for a project under IPCEI Hy2Tech. The European Union officially ratified the project in July 2022. Green HiPo will be based in the Western Macedonia region of Greece, where a state-of-the-art facility will be established for the R&D and production of innovative fuel cells and electrolyzer systems. Advent has been actively working with the Greek State for the timely signing of the contract.

Dr. Gregoriou concluded, “Advent continues to make significant progress, and with the endorsement of our technology platform and products, we now have a commercial portfolio that will advance throughout 2023 and beyond. We will continue to consolidate our business with a view to maximizing efficiency and effectiveness throughout our global operations, and to focus on core markets and significant projects. The opening of our R&D and manufacturing facility at Hood Park provides an anchor for our operations in North America. The Greek State is progressing with the process for initiating the Green HiPo project, and we will provide an update at the appropriate time. I remain confident in the potential of Advent and our technology, and I am very optimistic that we will continue to increase market share as economies embrace clean energy and decarbonization.”

Conference Call

The Company will host a conference call on Monday, May 15, 2023, at 9:00 AM ET to discuss its results.

To access the call please dial [phone] from the United States, or [phone] from outside the U.S. The conference call I.D. number is 3273042. Participants should dial in 5 to 10 minutes before the scheduled time.

A replay of the call can also be accessed via phone through May 29, 2023, by dialing [phone] from the U.S., or [phone] from outside the U.S. The conference I.D. number is 3273042.

About Advent Technologies Holdings, Inc.

Advent Technologies Holdings, Inc. is a U.S. corporation that develops, manufactures, and assembles complete fuel cell systems as well as supplying customers with critical components for fuel cells in the renewable energy sector. Advent is headquartered in Boston, Massachusetts, with offices in California, Greece, Denmark, Germany, and the Philippines. With more than 150 patents issued, pending, and/or licensed for fuel cell technology, Advent holds the IP for next-generation HT-PEM that enables various fuels to function at high temperatures and under extreme conditions, suitable for the automotive, aviation, defense, oil and gas, marine, and power generation sectors. For more information, please visit www.advent.energy.