ESS Tech(GWH)2024-11-13 22:39Financial Performance - Total revenue for Q3 2024 was 1,545,000 in Q3 2023, representing a decrease of approximately 76.8% year-over-year[14] - Gross loss for Q3 2024 was (8,638,000) in Q3 2023, indicating a worsening of 43.5%[14] - Net loss for Q3 2024 was (16,618,000) in Q3 2023, which is an increase in loss of 35.5%[14] - The net loss for the nine months ended September 30, 2024, was 61,448,000 for the same period in 2023[20] - For the three months ended September 30, 2024, the net loss attributable to common stockholders was 16.6 million for the same period in 2023, representing a 35.1% increase[67] Operating Expenses - Operating expenses for Q3 2024 totaled 9,496,000 in Q3 2023, reflecting an increase of 19.0%[14] - Research and development expenses increased to 1,609,000 in Q3 2023, a rise of 66.7%[14] - Sales and marketing expenses rose by 23% to 2.1 million in Q3 2023; for the nine months ended September 30, 2024, expenses increased by 29% to 5.6 million in the same period last year[89] - General and administrative expenses increased by 4% to 5.8 million in Q3 2023; for the nine months ended September 30, 2024, expenses rose by 5% to 17.0 million in the same period last year[91] Cash Flow and Liquidity - Cash used in operating activities for the nine months ended September 30, 2024, was 38,751,000 in the prior year[20] - The company had cash, cash equivalents, and restricted cash of 39,491,000 at the end of September 30, 2023[22] - As of September 30, 2024, the company had unrestricted cash and cash equivalents of 42.3 million, totaling 51.7 million for the nine months ended September 30, 2024, compared to 49,201,000 as of September 30, 2024, down from 116,460,000, a decrease from 87,820,000, reflecting a decrease from 7.0 million, reflecting a write-down of 19.9 million as of September 30, 2024, up from 54.830 million[54] Commitments and Agreements - The Company entered into a Joint Development Agreement with UOP, agreeing to reimburse a minimum of 8.0 million for R&D expenses through December 31, 2028[40] - The company is evaluating various strategies to obtain additional funding, which may include equity offerings or debt issuance[24] - The company is committed to reimburse UOP a minimum of 8.0 million for research and development expenses incurred through December 31, 2028 under the JDA[102] Future Outlook - Revenue is anticipated to be generated from Energy Centers, second-generation Energy Warehouses, and core technology component productization in the near to medium term[74] - The Inflation Reduction Act of 2022 is expected to positively impact the company's gross margins due to extended investment tax credits and production tax credits for energy storage products[76] - The company expects an increase in operating expenses as it ramps up manufacturing and sales activities, with indirect costs projected to rise compared to 2023[73] Research and Development - The company continues to perform research and development activities to expand its product roadmap despite a decrease in related expenses following the transition to commercial inventory accounting[79] - The company transitioned out of the research and development phase into commercial inventory accounting as of July 1, 2023[25]