05/12/2022 | Press release | Distributed by Public on 05/12/2022 14:22
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
83-0982969
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification Number)
|
200 Clarendon Street
Boston, Massachusetts
|
02116
|
|
(Address of principal executive offices)
|
(Zip code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
Common Stock, par value $0.0001 per share
|
ADN
|
The Nasdaq Capital Market
|
||
Warrants
|
ADNWW
|
The Nasdaq Capital Market
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☒
|
Smaller reporting company
|
☒
|
Emerging growth company
|
☒
|
•
|
our ability to maintain the listing of our shares of common stock and warrants on Nasdaq;
|
•
|
our ability to raise financing in the future;
|
•
|
our success in retaining or recruiting officers, key employees or directors;
|
•
|
factors relating to our business, operations and financial performance, including:
|
o
|
our ability to control the costs associated with our operations;
|
o
|
our ability to grow and manage growth profitably;
|
o
|
our reliance on complex machinery for our operations and production;
|
o
|
the market's willingness to adopt our technology;
|
o
|
our ability to maintain relationships with customers;
|
o
|
the potential impact of product recalls;
|
o
|
our ability to compete within our industry;
|
o
|
increases in costs, disruption of supply or shortage of raw materials;
|
o
|
risks associated with strategic alliances or acquisitions, including the acquisition of SerEnergy A/S, a Danish stock corporation ("SerEnergy") and fischer eco solutions GmbH, a German limited liability company ("FES"), former wholly-owned subsidiaries of F.E.R. fischer Edelstahlrohre GmbH, completed on August 31, 2021;
|
o
|
the impact of unfavorable changes in U.S. and international regulations;
|
o
|
the availability of and our ability to meet the terms and conditions for government grants and economic incentives; and
|
o
|
our ability to protect our intellectual property rights;
|
•
|
market conditions and global and economic factors beyond our control, including the potential adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment and our liquidity, operations and personnel;
|
•
|
volatility of our stock price and potential share dilution;
|
•
|
future exchange and interest rates; and
|
•
|
other factors detailed within the 2021 Annual Report under the section entitled "Risk Factors."
|
Page
|
||
PART I-FINANCIAL INFORMATION
|
||
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
3 |
Unaudited Condensed Consolidated Balance Sheets
|
3 | |
Unaudited Condensed Consolidated Statements of Operations
|
4 | |
Unaudited Condensed Consolidated Statements of Comprehensive Income / (Loss)
|
5
|
|
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity / (Deficit)
|
6 | |
Unaudited Condensed Consolidated Statements of Cash Flows
|
8
|
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
9
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
33
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
49
|
Item 4.
|
Controls and Procedures
|
49
|
PART II-OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
50
|
Item 1A.
|
Risk Factors
|
50 |
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
50
|
Item 3. |
Defaults Upon Senior Securities |
50 |
Item 4. |
Mine Safety Disclosures |
50 |
Item 5. |
Other Information |
50 |
Item 6.
|
Exhibits
|
50
|
Signatures
|
51 |
Item 1.
|
Unaudited Condensed Consolidated Financial Statements
|
As of |
||||||||
ASSETS
|
March 31, 2022
(Unaudited)
|
December 31,
2021
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
59,282
|
$
|
79,764
|
||||
Accounts receivable
|
2,806
|
3,139
|
||||||
Contract assets
|
1,090
|
1,617
|
||||||
Inventories
|
9,211
|
6,958
|
||||||
Prepaid expenses and Other current assets
|
10,235
|
5,873
|
||||||
Total current assets
|
82,624
|
97,351
|
||||||
Non-current assets: |
||||||||
Goodwill
|
30,030
|
30,030
|
||||||
Intangibles, net
|
22,657 |
23,344 |
||||||
Property and equipment, net
|
8,964
|
8,585
|
||||||
Other non-current assets
|
2,523 | 2,475 | ||||||
Deferred tax assets
|
1,374 |
1,246 |
||||||
Total non-current assets | 65,548 | 65,680 | ||||||
Total assets
|
$
|
148,172
|
$
|
163,031
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Trade and other payables
|
$
|
5,474
|
$
|
4,837
|
||||
Deferred income from grants, current
|
192
|
205
|
||||||
Contract liabilities
|
558
|
1,118
|
||||||
Other current liabilities
|
7,963
|
12,515
|
||||||
Income tax payable
|
192
|
196
|
||||||
Total current liabilities
|
14,379
|
18,871
|
||||||
Non-current liabilities: | ||||||||
Warrant liability
|
1,997
|
10,373
|
||||||
Deferred tax liabilities
|
2,197 |
2,500 |
||||||
Defined benefit obligation
|
95
|
90
|
||||||
Other long-term liabilities
|
956
|
996
|
||||||
Total non-current liabilities | 5,245 | 13,959 | ||||||
Total liabilities
|
19,624
|
32,830
|
||||||
Commitments and contingent liabilities
|
||||||||
Stockholders' equity
|
||||||||
Common stock ($0.0001par value per share; Shares authorized: 110,000,000at March 31, 2022and December 31, 2021; Issued and outstanding: 51,253,591and 51,253,591at March 31, 2022and December 31, 2021, respectively)
|
5
|
5
|
||||||
Preferred stock ($0.0001par value per share; Shares authorized: 1,000,000at March 31, 2022and December 31, 2021; nilissued and outstanding at March 31, 2022and December 31, 2021)
|
-
|
-
|
||||||
Additional paid-in capital
|
167,755
|
164,894
|
||||||
Accumulated other comprehensive loss
|
(1,691
|
)
|
(1,273
|
)
|
||||
Accumulated deficit
|
(37,521
|
)
|
(33,425
|
)
|
||||
Total stockholders' equity
|
128,548
|
130,201
|
||||||
Total liabilities and stockholders' equity
|
$
|
148,172
|
$
|
163,031
|
|
Three months ended March 31,
(Unaudited)
|
|||||||
|
2022
|
2021
|
||||||
Revenue, net
|
$
|
1,256
|
$
|
1,489
|
||||
Cost of revenues
|
(1,517
|
)
|
(347
|
)
|
||||
Gross profit / (loss)
|
(261
|
)
|
1,142
|
|||||
Income from grants
|
508
|
38
|
||||||
Research and development expenses
|
(2,149
|
)
|
(29
|
)
|
||||
Administrative and selling expenses
|
(10,498
|
)
|
(7,922
|
)
|
||||
Amortization of intangibles
|
(699
|
)
|
(187
|
)
|
||||
Operating loss
|
(13,099
|
)
|
(6,958
|
)
|
||||
Fair value change of warrant liability
|
8,376
|
9,766
|
||||||
Finance expenses, net
|
(10 | ) | (10 | ) | ||||
Foreign exchange (losses) / gains, net
|
(17
|
)
|
24
|
|||||
Other (expenses) / income, net
|
(3
|
)
|
84
|
|||||
Income / (loss) before income tax
|
(4,753
|
)
|
2,906
|
|||||
Income taxes
|
657
|
-
|
||||||
Net income / (loss)
|
$
|
(4,096
|
)
|
$
|
2,906
|
|||
Net income / (loss) per share |
||||||||
Basic income / (loss) per share
|
(0.08
|
)
|
0.08
|
|||||
Basic weighted average number of shares
|
51,253,591
|
37,769,554 | ||||||
Diluted income / (loss) per share
|
(0.08
|
)
|
0.07
|
|||||
Diluted weighted average number of shares
|
51,253,591
|
40,987,346
|
Three months ended March 31,
(Unaudited)
|
||||||||
2022
|
2021
|
|||||||
Net income / (loss)
|
$
|
(4,096
|
)
|
$
|
2,906
|
|||
Other comprehensive income / (loss):
|
||||||||
Foreign currency translation adjustment
|
(418
|
)
|
19
|
|||||
Total other comprehensive income / (loss)
|
(418
|
)
|
19
|
|||||
Total comprehensive income / (loss)
|
$
|
(4,514
|
)
|
$
|
2,925
|
Three Months Ended March 31, 2022
|
||||||||||||||||||||||||||||||||||||||||
Preferred
Stock Series A Shares |
Amount
|
Preferred Stock
Series Seed Shares |
Amount
|
Common Stock
Shares |
Amount
|
Additional Paid-in
Capital |
Accumulated
Deficit |
Accumulated
OCI |
Total Stockholders'
Equity |
|||||||||||||||||||||||||||||||
Balance as of December 31, 2021
|
-
|
$
|
-
|
-
|
$
|
-
|
51,253,591
|
$
|
5
|
$
|
164,894
|
$
|
(33,425
|
)
|
$
|
(1,273
|
)
|
$
|
130,201
|
|||||||||||||||||||||
Stock based compensation expense (Unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
2,861
|
-
|
-
|
2,861
|
||||||||||||||||||||||||||||||
Net loss (Unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,096
|
)
|
-
|
(4,096
|
)
|
||||||||||||||||||||||||||||
Other comprehensive loss (Unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(418
|
)
|
(418
|
)
|
||||||||||||||||||||||||||||
Balance as of March 31, 2022 (Unaudited)
|
-
|
$
|
-
|
-
|
$
|
-
|
51,253,591
|
$
|
5
|
$
|
167,755
|
$
|
(37,521
|
)
|
$
|
(1,691
|
)
|
$
|
128,548
|
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Preferred
Stock Series A Shares |
Amount
|
Preferred Stock
Series Seed Shares |
Amount
|
Common Stock
Shares |
Amount
|
Additional Paid-in
Capital |
Accumulated
Deficit |
Accumulated
OCI |
Total Stockholders'
(Deficit) Equity
|
|||||||||||||||||||||||||||||||
Balance as of December 31, 2020
|
844,037
|
$
|
1
|
2,095,592
|
$
|
1
|
3,017,057
|
$
|
3
|
$
|
10,991
|
$
|
(12,902
|
)
|
$
|
112
|
$
|
(1,794
|
)
|
|||||||||||||||||||||
Retroactive application of recapitalization (Unaudited) | (844,037 | ) | (1 | ) | (2,095,592 | ) | (1 | ) | 22,016,341 | (1 | ) | 3 | - | - | - | |||||||||||||||||||||||||
Adjusted balance, beginning of period (Unaudited)*
|
-
|
-
|
-
|
-
|
25,033,398
|
2
|
10,994
|
(12,902
|
)
|
112
|
(1,794
|
)
|
||||||||||||||||||||||||||||
Business combination and PIPE financing (Unaudited)
|
-
|
-
|
-
|
-
|
21,072,549
|
2
|
107,575
|
-
|
-
|
107,577
|
||||||||||||||||||||||||||||||
Net income (Unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,906
|
-
|
2,906
|
||||||||||||||||||||||||||||||
Other comprehensive income (Unaudited)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
19
|
||||||||||||||||||||||||||||||
Balance as of March 31, 2021 (Unaudited)
|
-
|
$
|
-
|
-
|
$
|
-
|
46,105,947
|
$
|
4
|
$
|
118,569
|
$
|
(9,996
|
)
|
$
|
131
|
$
|
108,708
|
*
|
The amounts have been retroactively restated to give effect to the recapitalization transaction.
|
Three months ended March 31,
(Unaudited)
|
||||||||
2022
|
2021
|
|||||||
Net Cash used in Operating Activities
|
$
|
(19,311
|
)
|
$
|
(12,196
|
)
|
||
Cash Flows from Investing Activities:
|
||||||||
Proceeds from sale of property and equipment |
0 |
- |
||||||
Purchases of property and equipment
|
(950
|
)
|
(77
|
)
|
||||
Purchases of intangible assets |
(13 | ) |
- |
|||||
Advances for the acquisition of property and equipment |
(50 | ) |
- |
|||||
Acquisition of subsidiaries, net of cash acquired
|
-
|
(3,976
|
)
|
|||||
Receipt of government grants |
3 |
- |
||||||
Net Cash used in Investing Activities
|
$
|
(1,010
|
)
|
$
|
(4,053
|
)
|
||
Cash Flows from Financing Activities:
|
||||||||
Business Combination and PIPE financing, net of issuance costs paid
|
-
|
140,693
|
||||||
Net Cash provided by Financing Activities
|
$
|
-
|
$
|
140,693
|
||||
Net increase / (decrease) in cash and cash equivalents
|
$
|
(20,321
|
)
|
$
|
124,444
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(161
|
)
|
15
|
|||||
Cash and cash equivalents at the beginning of the period
|
79,764
|
516
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
59,282
|
$
|
124,975
|
||||
Supplemental Cash Flow Information | ||||||||
Cash activities | ||||||||
Interest paid | $ | 6 | $ | - | ||||
Non-cash Investing and Financing Activities: |
||||||||
Stock-based compensation |
$ | 2,861 | $ | - |
1. |
Basis of presentation
|
Company Name
|
Country of
Incorporation
|
Ownership Interest
|
Statements of Operations
|
||
Direct
|
Indirect
|
2022
|
2021
|
||
Advent Technologies, Inc.
|
USA
|
100%
|
-
|
01/01- 3/31
|
01/01- 3/31
|
Advent Technologies S.A.
|
Greece
|
100%
|
-
|
01/01- 3/31
|
01/01- 3/31
|
Advent Technologies LLC
|
USA
|
-
|
100%
|
01/01- 3/31
|
02/19- 3/31
|
Advent Technologies GmbH
|
Germany
|
100%
|
-
|
01/01- 3/31
|
-
|
Advent Technologies A/S
|
Denmark
|
100%
|
-
|
01/01- 3/31
|
-
|
Advent Green Energy Philippines, Inc
|
Philippines
|
-
|
100%
|
01/01- 3/31
|
-
|
2. |
Summary of Significant Accounting Policies
|
|
• |
Level 1: Quoted prices in active markets for identical assets or liabilities.
|
|
• |
Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.
|
|
• |
Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.
|
As of March 31, 2022 (unaudited)
|
||||||||
(Amounts in thousands)
|
Fair Value
|
Unobservable Inputs
(Level 3)
|
||||||
Liabilities
|
||||||||
Warrant liability
|
$
|
1,997
|
$
|
1,997
|
||||
$
|
1,997
|
$
|
1,997
|
As of December 31, 2021
|
||||||||
(Amounts in thousands)
|
Fair Value
|
Unobservable Inputs
(Level 3)
|
||||||
Liabilities
|
||||||||
Warrant liability
|
$
|
10,373
|
$
|
10,373
|
||||
$
|
10,373
|
$
|
10,373
|
Warrant Liability |
||||||||
(Amounts in thousands)
|
For the Three
Months Ended
March 31, 2022
(unaudited)
|
For the Three
Months Ended
March 31, 2021
(unaudited)
|
||||||
Estimated fair value (beginning of period)
|
$
|
10,373
|
$ | - | ||||
Estimated fair value of warrant issuance | - | 33,116 | ||||||
Change in estimated fair value
|
(8,376
|
)
|
(9,766 | ) | ||||
Estimated fair value (end of period)
|
$
|
1,997
|
$ | 23,350 |
Stock price
|
$
|
2.32
|
||
Exercise price (strike price)
|
$
|
11.50
|
||
Risk-free interest rate
|
2.41
|
%
|
||
Volatility
|
73.70
|
%
|
||
Remaining term (in years)
|
3.84 |
3. |
Business Combination
|
(a)
|
AMCI Acquisition Corp.
|
(Amounts in thousands) |
Recapitalization
|
|||
Cash- AMCI's trust and cash (net of redemptions)
|
$
|
93,311
|
||
Cash - PIPE plus interest
|
65,000
|
|||
Less transaction costs and advisory fees paid
|
(17,620
|
)
|
||
Less non-cash warrant liability assumed |
(33,116 | ) | ||
Net Business Combination and PIPE financing
|
$
|
107,575
|
Recapitalization
|
||||
Class A Common Stock of AMCI, outstanding prior to Business Combination
|
9,061,136
|
|||
Less Redemption of AMCI shares
|
(1,606
|
)
|
||
Class B Common Stock of AMCI, outstanding prior to Business Combination
|
5,513,019
|
|||
Shares issued in PIPE
|
6,500,000
|
|||
Business Combination and PIPE financing shares
|
21,072,549
|
|||
Legacy Advent Shares
|
25,033,398
|
|||
Total shares of Common Stock immediately after Business Combination
|
46,105,947
|
(b)
|
UltraCell, LLC
|
Current assets
|
||||
Cash and cash equivalents
|
$
|
78
|
||
Other current assets
|
658
|
|||
Total current assets
|
$
|
736
|
||
Non-current assets
|
9
|
|||
Total assets
|
$
|
745
|
||
Current liabilities
|
110
|
|||
Non-current liabilities
|
-
|
|||
Total liabilities
|
$
|
110
|
||
Net assets acquired
|
$
|
635
|
Cost of investment
|
$
|
6,000
|
||
Net assets value
|
635
|
|||
Consideration to be allocated
|
$
|
5,365
|
||
Fair value adjustment - New intangibles
|
||||
Trade name "UltraCell"
|
406
|
|||
Patented technology
|
4,328
|
|||
Total intangibles acquired
|
$
|
4,734
|
||
Remaining Goodwill
|
$
|
631
|
(c) |
Acquisition of SerEnergy and FES
|
Current assets
|
||||
Cash and cash equivalents
|
$
|
4,367
|
||
Other current assets
|
10,252
|
|||
Total current assets
|
$
|
14,619
|
||
Non-current assets
|
5,388
|
|||
Total assets
|
$
|
20,007
|
||
Current liabilities
|
5,800
|
|||
Non-current liabilities
|
1,180
|
|||
Total liabilities
|
$
|
6,980
|
||
Net assets acquired
|
$
|
13,027
|
Cost of investment
|
||||
Cash consideration
|
$
|
22,236
|
||
Share consideration
|
37,924
|
|||
Total cost of investment
|
60,160
|
|||
Less: Net assets value
|
13,027
|
|||
Original excess purchase price
|
$
|
47,133
|
||
Fair value adjustments
|
||||
Real Property
|
76
|
|||
New intangibles:
|
||||
Patents
|
16,893
|
|||
Process know-how (IPR&D)
|
2,612
|
|||
Order backlog
|
266
|
|||
Total intangibles acquired
|
$
|
19,771
|
||
Deferred tax liability arising from the recognition of intangibles and real property valuation
|
(5,452
|
)
|
||
Deferred tax assets on tax losses carried forward
|
3,339
|
|||
Remaining Goodwill
|
$
|
29,399
|
4. |
Related party disclosures
|
5. |
Accounts receivable, net
|
(Amounts in thousands)
|
March 31, 2022 (unaudited)
|
December 31, 2021
|
||||||
Accounts receivable from third party customers
|
$
|
3,208
|
$
|
3,550
|
||||
Less: Allowance for credit losses
|
(402
|
)
|
(411
|
)
|
||||
Accounts receivable, net
|
$
|
2,806
|
$
|
3,139
|
(Amounts in thousands)
|
For the three months ended March, 31, 2022
(unaudited)
|
For the three months ended March, 31, 2021
(unaudited)
|
||||||
Balance at beginning of period
|
$
|
(411
|
)
|
$
|
-
|
|||
Exchange differences
|
9
|
-
|
||||||
Balance at end of period
|
$
|
(402
|
)
|
$
|
-
|
6. |
Inventories
|
(Amounts in thousands) |
March 31, 2022
(unaudited)
|
December 31,
2021
|
||||||
Raw materials and supplies
|
$
|
6,738
|
$
|
5,361
|
||||
Work-in-process | 561 | 757 | ||||||
Finished goods | 1,959 | 888 | ||||||
Total | $ | 9,258 | $ | 7,006 | ||||
Provision for slow moving inventory | (47 | ) | (48 | ) | ||||
Total
|
$
|
9,211
|
$
|
6,958
|
(Amounts in thousands)
|
For the Three
Months Ended
March 31, 2022 (unaudited)
|
For the Three Months Ended
March 31, 2021 (unaudited)
|
||||||
Balance at beginning of period
|
$
|
(48
|
)
|
$
|
-
|
|||
Exchange differences
|
1
|
-
|
||||||
Balance at end of period
|
$
|
(47
|
)
|
$
|
-
|
7. |
Prepaid expenses and other current assets
|
(Amounts in thousands)
|
March 31, 2022 (unaudited)
|
December 31, 2021
|
||||||
Prepaid insurance expenses
|
$
|
2,321
|
$
|
355
|
||||
Prepaid research expenses
|
487
|
495
|
||||||
Prepaid rent expenses
|
45
|
99
|
||||||
Other prepaid expenses
|
305
|
191
|
||||||
Total
|
$
|
3,158
|
$
|
1,140
|
(Amounts in thousands) |
March 31, 2022
(unaudited)
|
December 31, 2021
|
||||||
VAT receivable
|
$
|
966
|
$
|
981
|
||||
Withholding tax |
335 | 108 | ||||||
Grant receivable
|
662
|
510
|
||||||
Purchases under receipt |
229 | 274 | ||||||
Guarantees |
42 | 24 | ||||||
Other receivables
|
4,843
|
2,836
|
||||||
Total
|
$
|
7,077
|
$
|
4,733
|
(Amounts in thousands)
|
||||
Goodwill on acquisition of UltraCell (Note 3b)
|
$
|
631
|
||
Goodwill on acquisition of SerEnergy and FES (Note 3c)
|
29,399
|
|||
Total goodwill
|
$
|
30,030
|
As of March 31, 2022 (unaudited)
|
||||||||||||
(Amounts in thousands)
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
|||||||||
Indefinite-lived intangible assets:
|
||||||||||||
Trade name "UltraCell"
|
$
|
406
|
$
|
-
|
$
|
406
|
||||||
Total indefinite-lived intangible assets
|
$
|
406
|
$
|
-
|
$
|
406
|
||||||
Finite-lived intangible assets:
|
||||||||||||
Patents
|
21,221
|
(1,468
|
)
|
19,753
|
||||||||
Process know-how (IPR&D)
|
2,612
|
(254
|
)
|
2,358
|
||||||||
Order backlog
|
266
|
(155
|
)
|
111
|
||||||||
Software
|
132
|
(103
|
)
|
29
|
||||||||
Total finite-lived intangible assets
|
$
|
24,231
|
$
|
(1,980
|
)
|
$
|
22,251
|
|||||
Total intangible assets
|
$
|
24,637
|
$
|
(1,980
|
)
|
$
|
22,657
|
As of December 31, 2021
|
||||||||||||
(Amounts in thousands)
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
|||||||||
Indefinite-lived intangible assets:
|
||||||||||||
Trade name "UltraCell"
|
$
|
406
|
$
|
-
|
$
|
406
|
||||||
Total indefinite-lived intangible assets
|
$
|
406
|
$
|
-
|
$
|
406
|
||||||
Finite-lived intangible assets:
|
||||||||||||
Patents
|
21,221
|
(945
|
)
|
20,276
|
||||||||
Process know-how (IPR&D)
|
2,612
|
(147
|
)
|
2,465
|
||||||||
Order backlog
|
266
|
(90
|
)
|
176
|
||||||||
Software
|
122
|
(101
|
)
|
21
|
||||||||
Total finite-lived intangible assets
|
$
|
24,221
|
$
|
(1,283
|
)
|
$
|
22,938
|
|||||
Total intangible assets
|
$
|
24,627
|
$
|
(1,283
|
)
|
$
|
23,344
|
(Amounts in thousands)
|
||||
Fiscal Year Ended December 31,
|
||||
2022
|
$
|
2,032
|
||
2023
|
2,564
|
|||
2024
|
2,564
|
|||
2025
|
2,564
|
|||
2026
|
2,564
|
|||
Thereafter
|
9,963
|
|||
Total
|
$
|
22,251
|
9. |
Property, plant and equipment, net
|
(Amounts in thousands)
|
March 31, 2022
(unaudited)
|
December 31, 2021
|
||||||
Land, Buildings & Leasehold Improvements
|
$
|
1,853
|
$ |
1,888
|
||||
Machinery
|
8,664
|
8,756
|
||||||
Equipment
|
4,602
|
4,091
|
||||||
Assets under construction
|
720
|
431
|
||||||
$
|
15,839
|
$
|
15,166
|
|||||
Less: accumulated depreciation
|
(6,875
|
)
|
(6,581
|
)
|
||||
Total
|
$
|
8,964
|
$
|
8,585
|
10.
|
Other non-current assets
|
11. |
Trade and other payables
|
12. |
Other current liabilities
|
(Amounts in thousands)
|
March 31, 2022 (unaudited)
|
December 31, 2021
|
||||||
Accrued expenses (1)
|
$
|
1,655
|
$
|
5,903
|
||||
Other short-term payables (2)
|
4,685
|
4,590
|
||||||
Taxes and duties payable
|
742
|
1,236
|
||||||
Provision for unused vacation
|
588
|
424
|
||||||
Accrued provision for warranties, current portion (Note 14)
|
202
|
208
|
||||||
Social security funds
|
53
|
84
|
||||||
Overtime provision
|
38
|
70
|
||||||
Total
|
$
|
7,963
|
$
|
12,515
|
(Amounts in thousands)
|
March 31, 2022 (unaudited)
|
December 31, 2021
|
||||||
Accrued bonus
|
$
|
-
|
$
|
3,603
|
||||
Accrued construction fees
|
237
|
1,285
|
||||||
Accrued expenses for legal and consulting fees
|
341
|
334
|
||||||
Accrued payroll fees
|
387
|
129
|
||||||
Other accrued expenses
|
690
|
552
|
||||||
Total
|
$
|
1,655
|
$
|
5,903
|
13. |
Private Placement Warrants and Working Capital Warrants
|
14.
|
Other long-term liabilities
|
15. |
Stockholders' Equity / (Deficit)
|
-
|
in whole and not in part;
|
-
|
at a price of $0.01 per warrant;
|
-
|
upon not less than 30 days' prior written notice of redemption;
|
-
|
if, and only if, the reported last sale price of the Company's common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders; and
|
-
|
if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying such warrants.
|
Number of Shares
|
Strike Price
|
Grant Date Fair Value
|
||||||||||
Granted on March 18, 2022
|
328,167
|
$
|
2.94
|
$
|
2.32
|
|||||||
Total stock options granted in 2022
|
328,167
|
Assumptions
|
||
Stock options granted
on March 18, 2022
|
||
Expected volatility
|
96.7%
|
|
Risk-free rate
|
2.2%
|
|
Time to maturity
|
6.25 years
|
Number of options
|
Weighted Average Grant Date Fair Value
|
|||||||
Unvested as of December 31, 2021
|
2,624,894
|
$
|
4.88
|
|||||
Granted
|
328,167
|
$
|
2.32
|
|||||
Vested
|
(489,875
|
)
|
$
|
5.04
|
||||
Forfeited
|
(2,708
|
)
|
$
|
4.45
|
||||
Unvested as of March 31, 2022
|
2,460,478
|
$
|
4.45
|
Number of Shares
|
Grant Date Fair Value
|
|||||||
Granted on March 18, 2022
|
328,167
|
$
|
2.94
|
|||||
Total restricted stock units granted in 2022
|
328,167
|
Number of
Shares
|
Weighted Average Grant Date Fair Value
|
|||||||
Unvested as of December 31, 2021
|
2,702,099
|
$
|
9.65
|
|||||
Granted
|
328,167
|
$
|
2.94
|
|||||
Vested (1)
|
(518,831
|
)
|
$
|
10.36
|
||||
Forfeited
|
(22,012
|
)
|
$
|
10.00
|
||||
Unvested as of March 31, 2022
|
2,489,423
|
$
|
8.61
|
|
(1) |
As of March 31, 2022, the shares were not issued and outstanding.
|
16.
|
Revenue
|
Three Months Ended March 31,
(unaudited)
|
||||||||
(Amounts in thousands)
|
2022
|
2021
|
||||||
Sales of goods
|
$
|
676
|
$
|
1,489
|
||||
Sales of services
|
580
|
-
|
||||||
Total revenue from contracts with customers
|
$
|
1,256
|
$
|
1,489
|
(Amounts in thousands)
|
Three Months Ended March 31,
(unaudited)
|
|||||||
Timing of revenue recognition
|
2022
|
2021
|
||||||
Revenue recognized at a point in time
|
$
|
1,256
|
$
|
829
|
||||
Revenue recognized over time
|
-
|
660
|
||||||
Total revenue from contracts with customers
|
$
|
1,256
|
$
|
1,489
|
17.
|
Collaborative Arrangements
|
18. |
Income Taxes
|
19. |
Segment Reporting and Information about Geographical Areas
|
Three Months Ended March 31,
(unaudited)
|
||||||||
(Amounts in thousands)
|
2022
|
2021
|
||||||
North America
|
$
|
492
|
$
|
1,335
|
||||
Europe
|
379
|
154
|
||||||
Asia
|
385
|
-
|
||||||
Total net sales
|
$
|
1,256
|
$
|
1,489
|
20. |
Commitments and contingencies
|
Fiscal Year Ended December 31,
|
Quantity (m2)
|
Price
(Amounts in thousands)
|
||||||
2022
|
3,000
|
$
|
1,053
|
|||||
2023
|
4,000
|
1,269
|
||||||
2024
|
6,000
|
1,699
|
||||||
2025
|
8,000
|
2,265
|
||||||
Total
|
21,000
|
$
|
6,286
|
Fiscal Year Ended December 31,
|
||||
2022
|
$
|
1,247
|
||
2023
|
2,296
|
|||
2024
|
2,281
|
|||
2025
|
2,318
|
|||
2026
|
1,932
|
|||
Thereafter
|
6,351
|
|||
Total
|
$
|
16,425
|
21. |
Net income / (loss) per share
|
(Amounts in thousands, except share and per share amounts) |
Three Months Ended March 31,
(unaudited)
|
|||||||
Numerator:
|
2022
|
2021
|
||||||
Net income / (loss)
|
$
|
(4,096
|
)
|
$
|
2,906
|
|||
Denominator:
|
||||||||
Basic weighted average number of shares
|
51,253,591
|
37,769,554
|
||||||
Diluted weighted average number of shares
|
51,253,591
|
40,987,346
|
||||||
Net loss per share:
|
||||||||
Basic
|
$
|
(0.08
|
)
|
|
0.08
|
|||
Diluted
|
$
|
(0.08
|
)
|
|
0.07
|
22. |
Subsequent Events
|
Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
Expand U.S.-based operations to increase capacity for product testing, development projects and associated research and development activities;
|
•
|
Expand production facilities to increase and automate assembly and production of fuel cell systems and MEAs;
|
•
|
Develop improved MEA and other products for both existing and new markets, such as ultra-light MEAs designed for aviation applications, to remain at the forefront of the fast-developing hydrogen economy;
|
•
|
Increase business development and marketing activities;
|
•
|
Increase headcount in management and head office functions in order to appropriately manage Advent's increased operations;
|
•
|
Improve its operational, financial and management information systems;
|
•
|
Obtain, maintain, expand, and protect its intellectual property portfolio; and
|
•
|
Operate as a public company.
|
Three months ended March 31, (unaudited)
|
||||||||||||||||
(Amounts in thousands, except share and per share amounts)
|
2022
|
2021
|
$ change
|
% change
|
||||||||||||
Revenue, net
|
$
|
1,256
|
$
|
1,489
|
$
|
(233
|
)
|
(15.6
|
)%
|
|||||||
Cost of revenues
|
(1,517
|
)
|
(347
|
)
|
(1,170
|
)
|
337.2
|
%
|
||||||||
Gross profit / (loss)
|
(261
|
)
|
1,142
|
(1,403
|
)
|
(122.9
|
)%
|
|||||||||
Income from grants
|
508
|
38
|
470
|
1,236.8
|
%
|
|||||||||||
Research and development expenses
|
(2,149
|
)
|
(29
|
)
|
(2,120
|
)
|
7,310.3
|
%
|
||||||||
Administrative and selling expenses
|
(10,498
|
)
|
(7,922
|
)
|
(2,576
|
)
|
32.5
|
%
|
||||||||
Amortization of intangibles
|
(699
|
)
|
(187
|
)
|
(512
|
)
|
273.8
|
%
|
||||||||
Operating loss
|
(13,099
|
)
|
(6,958
|
)
|
(6,141
|
)
|
88.3
|
%
|
||||||||
Fair value change of warrant liability
|
8,376
|
9,766
|
(1,390
|
)
|
(14.2
|
)%
|
||||||||||
Finance costs
|
(10
|
)
|
(10
|
)
|
-
|
-
|
||||||||||
Foreign exchange (losses) / gains, net
|
(17
|
)
|
24
|
(41
|
)
|
(170.8
|
)%
|
|||||||||
Other income / (expenses), net
|
(3
|
)
|
84
|
(87
|
)
|
(103.6
|
)%
|
|||||||||
Income / (Loss) before income tax
|
(4,753
|
)
|
2,906
|
(7,659
|
)
|
(263.6
|
)%
|
|||||||||
Income tax
|
657
|
-
|
657
|
N/A
|
||||||||||||
Net income / (loss)
|
$
|
(4,096
|
)
|
$
|
2,906
|
$
|
(7,002
|
)
|
(240.9
|
)%
|
||||||
Net income / (loss) per share
|
||||||||||||||||
Basic income / (loss) per share
|
(0.08
|
)
|
0.08
|
(0.16
|
)
|
N/A
|
||||||||||
Basic weighted average number of shares
|
51,253,591
|
37,769,554
|
N/A
|
N/A
|
||||||||||||
Diluted income / (loss) per share
|
(0.08
|
)
|
0.07
|
(0.15
|
)
|
N/A
|
||||||||||
Diluted weighted average number of shares
|
51,253,591
|
40,987,346
|
N/A
|
N/A
|
Three Months Ended March 31, (unaudited)
|
||||||||||||||||
(Amounts in thousands)
|
2022
|
2021
|
$ change
|
% change
|
||||||||||||
Net Cash used in Operating Activities
|
$
|
(19,311
|
)
|
$
|
(12,196
|
)
|
$
|
(7,115
|
)
|
58.3
|
%
|
|||||
Cash Flows from Investing Activities:
|
||||||||||||||||
Purchases of property and equipment
|
(950
|
)
|
(77
|
)
|
(873
|
)
|
1,133.8
|
%
|
||||||||
Purchases of intangible assets
|
(13
|
)
|
-
|
(13
|
)
|
N/A
|
||||||||||
Advances for the acquisition of property and equipment
|
(50
|
)
|
-
|
(50
|
)
|
N/A
|
||||||||||
Acquisition of a subsidiary, net of cash acquired
|
-
|
(3,976
|
)
|
3,976
|
(100.0
|
)%
|
||||||||||
Receipt of government grants
|
3
|
-
|
3
|
N/A
|
||||||||||||
Net Cash used in Investing Activities
|
$
|
(1,010
|
)
|
$
|
(4,053
|
)
|
$
|
3,043
|
(75.1
|
)%
|
||||||
Cash Flows from Financing Activities:
|
||||||||||||||||
Business Combination and PIPE financing, net of issuance costs paid
|
-
|
140,693
|
(140,693
|
)
|
(100.0
|
)%
|
||||||||||
Net Cash provided by Financing Activities
|
$
|
-
|
$
|
140,693
|
$
|
(140,693
|
)
|
(100.0
|
)%
|
|||||||
Net (decrease) / increase in cash and cash equivalents
|
$
|
(20,321
|
)
|
$
|
124,444
|
$
|
(144,765
|
)
|
(116.3
|
)%
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
(161
|
)
|
15
|
(176
|
)
|
(1,173.3
|
)%
|
|||||||||
Cash and cash equivalents at the beginning of period
|
79,764
|
516
|
79,248
|
15,358.1
|
%
|
|||||||||||
Cash and cash equivalents at the end of period
|
$
|
59,282
|
$
|
124,975
|
$
|
(65,693
|
)
|
(52.6
|
)%
|
•
|
identify the contract with a customer,
|
•
|
identify the performance obligations in the contract,
|
•
|
determine the transaction price,
|
•
|
allocate the transaction price to performance obligations in the contract, and
|
•
|
recognize revenue as the performance obligation is satisfied.
|
EBITDA and Adjusted EBITDA
|
Three months ended March 31,
(unaudited)
|
|||||||||||
(in Millions of US dollars)
|
2022
|
2021
|
$ change
|
|||||||||
Net income / (loss)
|
$
|
(4.10
|
)
|
$
|
2.91
|
(7.01
|
)
|
|||||
Depreciation of property and equipment
|
$
|
0.42
|
$
|
0.00
|
0.42
|
|||||||
Amortization of intangibles
|
$
|
0.70
|
$
|
0.19
|
0.51
|
|||||||
Finance costs, net
|
$
|
0.01
|
$
|
0.01
|
-
|
|||||||
Other (income) / expenses, net
|
$
|
0.00 |
$
|
(0.08
|
)
|
0.08
|
||||||
Foreign exchange differences, net
|
$
|
0.02
|
$
|
(0.02
|
)
|
0.04
|
||||||
Income tax
|
$
|
(0.66
|
)
|
$
|
0.00
|
(0.66
|
)
|
|||||
EBITDA
|
$
|
(3.61
|
)
|
$
|
3.01
|
(6.62
|
)
|
|||||
Net change in warrant liability
|
$
|
(8.38
|
)
|
$
|
(9.77
|
)
|
1.39
|
|||||
One-Time Transaction Related Expenses (1)
|
$
|
0.00
|
$
|
5.87
|
(5.87
|
)
|
||||||
Adjusted EBITDA
|
$
|
(11.99
|
)
|
$
|
(0.89
|
)
|
(11.10
|
)
|
Adjusted Net Loss
|
Three months ended March 31,
(unaudited)
|
|||||||||||
(in Millions of US dollars)
|
2022
|
2021
|
$ change
|
|||||||||
Net income / (loss)
|
$
|
(4.10
|
)
|
$
|
2.91
|
(7.01
|
)
|
|||||
Net change in warrant liability
|
$
|
(8.38
|
)
|
$
|
(9.77
|
)
|
1.39
|
|||||
One-Time Transaction Related Expenses (1)
|
$
|
0.00
|
$
|
5.87
|
(5.87
|
)
|
||||||
Adjusted Net Loss
|
$
|
(12.48
|
)
|
$
|
(0.99
|
)
|
(11.49
|
)
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings.
|
Item 1A. |
Risk Factors.
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 3. |
Default Upon Senior Securities.
|
Item 4. |
Mine Safety Disclosures.
|
Item 5. |
Other Information.
|
Item 6. |
Exhibits
|
Exhibit
Number
|
Description
|
31.1*
|
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a)
|
31.2*
|
Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a)
|
32.1**
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350
|
32.2**
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350
|
101.INS*
|
Inline XBRL Instance
|
101.SCH*
|
Inline XBRL Taxonomy Extension Schema
|
101.CAL*
|
Inline XBRL Taxonomy Extension Calculation
|
101.LAB*
|
Inline XBRL Taxonomy Extension Labels
|
101.PRE*
|
Inline XBRL Taxonomy Extension Presentation
|
|
* |
Filed herewith.
|
|
** |
Furnished herewith
|
Date: May 12, 2022
|
ADVENT TECHNOLOGIES HOLDINGS, INC.
|
|
By:
|
/s/ Kevin Brackman
|
|
Kevin Brackman
|
||
Chief Financial Officer
|
||
(Authorized Officer; Principal Financial and Accounting Officer)
|