ESS Tech(GWH) - 2024 Q4 - Annual Results

Financial Performance - ESS reported total revenue of $6.3 million for FY 2024, a decrease from$ 7.54 million in FY 2023, representing a decline of approximately 16.5%[3][16] - The gross profit loss for FY 2024 was $45.36 million, compared to a loss of$ 12.96 million in FY 2023, indicating a significant increase in losses[16] - The net loss for FY 2024 was $86.22 million, compared to a net loss of$ 77.58 million in FY 2023, resulting in a net loss per share of $7.32[16] - Net loss for 2024 was$ 86,222 million, compared to a net loss of $77,578 million in 2023, representing an increase in losses of about 11%[20] - Adjusted EBITDA for 2024 was$ (71,333) million, compared to $(18,244) million for the fourth quarter, indicating ongoing operational challenges[26] Operating Expenses - Operating expenses for FY 2024 totaled$ 44.44 million, down from $72.95 million in FY 2023, reflecting a reduction in R&D expenses[16] - Non-GAAP total operating expenses for 2024 were$ 35,338 million, up from $44,440 million in 2023, a decrease of approximately 20%[24] - Research and development expenses for 2024 totaled$ 11,772 million, with stock-based compensation accounting for $2,457 million[24] Assets and Liabilities - Total assets decreased from$ 143,232 million in 2023 to $71,813 million in 2024, a decline of approximately 50%[18] - Total current liabilities increased from$ 19,766 million in 2023 to $27,602 million in 2024, an increase of approximately 40%[18] - Cash, cash equivalents, and restricted cash decreased from$ 22,483 million at the end of 2023 to $15,195 million at the end of 2024, a decline of about 32%[22] - The company reported a significant increase in accounts payable from$ 2,755 million in 2023 to $8,070 million in 2024, an increase of approximately 193%[18] Operational Developments - The company achieved breakeven profitability on its latest Energy Center design almost a year ahead of schedule, driven by cost reductions in battery pack and labor[2] - ESS delivered eight Energy Center systems to a major Florida utility, marking the first commercial deliveries of this product[2][8] - ESS's global fleet surpassed 2 GWh of transacted energy, highlighting its market presence and operational scale[2] - The company announced the Energy Base, a new modular, non-containerized gigawatt-hour scale long-duration energy storage solution[3][2] - ESS's cost-down program has established a foundation for developing and productizing new technologies, enhancing operational flexibility and reducing costs[2] - The company is exploring potential commercial or financial transactions to support its strategic pivot and growth initiatives[8][11] Inventory and Cash Flow - Inventory increased from$ 3,366 million in 2023 to $5,641 million in 2024, a rise of approximately 67%[18] - Cash flows from operating activities showed a net cash used of$ 72,219 million in 2024, compared to $54,896 million in 2023, an increase of about 31%[20]