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Advent(ADN) - 2024 Q4 - Annual Report
ADNAdvent(ADN)2025-06-06 17:16

Revenue and Income - Advent's revenue primarily comes from the sale and servicing of fuel cell systems and Membrane Electrode Assemblies (MEAs), with expectations for significant future income from these markets[208]. - Total revenue from continuing operations increased by approximately 1.7millionor113.31.7 million or 113.3% from approximately 1.5 million in 2023 to approximately 3.3millionin2024,drivenbyanincreaseinJointDevelopmentAgreements[267].−Revenuesareexpectedtoincreasematerially,withafocusonJointDevelopmentAgreements(JDAs)andTechnologyAssessmentAgreements(TAAs)[254].−AdventanticipatessubstantialincreaseddemandforitsfuelcellsystemsandMEAs,withexistingcustomersexpectedtoincreaseordervolume[251].GrantsandCollaborations−Thecompanysecureda€34.5milliongrantfromtheEUInnovationFundfortheRHynoProject,aimedatdevelopinginnovativefuelcellsandelectrolysers[215].−AdvententeredajointdevelopmentagreementwithHyundaitoenhancetheHMC−AdventIonPair™MEA,focusingonheavy−dutyandstationaryapplications[228].−Thecompanyhasengagedinamulti−million−dollarcollaborationwithAirbustooptimizetheIonPair™MEAforaviationfuelcells,expectedtolasttwoyears[218].−Advent′scollaborationwiththeDepartmentofEnergyNationalLaboratoriesaimstoadvanceHT−PEMfuelcellsforheavy−dutytransportationandstationarypowersystems[226].−ThecompanyiscollaboratingwithBASFtodevelopaclosed−loopsupplychainforfuelcells,focusingonimprovedperformanceandcostcompetitiveness[230].ProductDevelopment−AdventlaunchedtheHoneyBadger50™FuelCellSystem,capableofgeneratingupto50Wofcontinuouspowerwith653.3 million in 2024, driven by an increase in Joint Development Agreements[267]. - Revenues are expected to increase materially, with a focus on Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs)[254]. - Advent anticipates substantial increased demand for its fuel cell systems and MEAs, with existing customers expected to increase order volume[251]. Grants and Collaborations - The company secured a €34.5 million grant from the EU Innovation Fund for the RHyno Project, aimed at developing innovative fuel cells and electrolysers[215]. - Advent entered a joint development agreement with Hyundai to enhance the HMC-Advent Ion Pair™ MEA, focusing on heavy-duty and stationary applications[228]. - The company has engaged in a multi-million-dollar collaboration with Airbus to optimize the Ion Pair™ MEA for aviation fuel cells, expected to last two years[218]. - Advent's collaboration with the Department of Energy National Laboratories aims to advance HT-PEM fuel cells for heavy-duty transportation and stationary power systems[226]. - The company is collaborating with BASF to develop a closed-loop supply chain for fuel cells, focusing on improved performance and cost competitiveness[230]. Product Development - Advent launched the Honey Badger 50™ Fuel Cell System, capable of generating up to 50W of continuous power with 65% weight savings compared to traditional batteries[236]. - In September 2023, Advent secured a 2.2 million contract with the US DoD to optimize the HB50 system, focusing on integrating Ion Pair MEA technology[239]. - A new 2.8millioncontractwassecuredinDecember2023todevelopadvancedmanufacturingprocessesfortheHB50system,aimingtoincreaseproductioncapacity[240].−AsofDecember31,2024,AdventcontinuestocollaboratewiththeUSDoDtoadvanceHB50technology[241].−ThecompanyisdevelopingitsnextgenerationMEAtechnology,whichisexpectedtodeliveruptothreetimesthepoweroutputofcurrentproducts[252].FinancialPerformance−Costofrevenuesdecreasedbyapproximately2.8 million contract was secured in December 2023 to develop advanced manufacturing processes for the HB50 system, aiming to increase production capacity[240]. - As of December 31, 2024, Advent continues to collaborate with the US DoD to advance HB50 technology[241]. - The company is developing its next generation MEA technology, which is expected to deliver up to three times the power output of current products[252]. Financial Performance - Cost of revenues decreased by approximately 5.5 million from approximately 7.0millionin2023toapproximately7.0 million in 2023 to approximately 1.5 million in 2024, primarily due to a shift from product sales to Joint Development Agreements[268]. - Research and development expenses decreased from approximately 7.6millionin2023toapproximately7.6 million in 2023 to approximately 3.2 million in 2024, reflecting cost reductions[270]. - Administrative and selling expenses decreased from approximately 28.8millionin2023toapproximately28.8 million in 2023 to approximately 14.3 million in 2024, primarily due to cost and staff reductions[271]. - Net cash provided by operating activities from continuing operations was approximately 1.2millionin2024,asignificantimprovementfrom1.2 million in 2024, a significant improvement from (21.0) million in 2023[286][287]. - Cash flows from investing activities provided approximately 1.2millionin2024,primarilyrelatedtothesaleofequipment,comparedto1.2 million in 2024, primarily related to the sale of equipment, compared to (5.3) million in 2023[288][289]. Stock and Equity - A reverse stock split of 1-for-30 was executed on May 13, 2024, adjusting all historical share amounts accordingly[213]. - Advent's stockholders' equity was reported at (2,879,000)asofJune30,2024,leadingtonon−compliancewithNasdaq′slistingrequirements[245].−Thecompanyisauthorizedtoissue501,000,000sharesofCommonStock,whichdidnotchangeasaresultoftheReverseStockSplit[294].ImpairmentsandContingencies−ThecompanyreceivedanarbitrationawardinfavorofF.E.R.forapproximately€4.5million,whichitisappealing[249].−Impairmentlossesof2,879,000) as of June 30, 2024, leading to non-compliance with Nasdaq's listing requirements[245]. - The company is authorized to issue 501,000,000 shares of Common Stock, which did not change as a result of the Reverse Stock Split[294]. Impairments and Contingencies - The company received an arbitration award in favor of F.E.R. for approximately €4.5 million, which it is appealing[249]. - Impairment losses of 9.8 million were recognized in 2023, primarily related to goodwill and other intangible assets[274]. - The company recorded a goodwill impairment charge of 0.6millionfortheUltraCellReportingUnitduringtheyearendedDecember31,2023[316].−Agoodwillimpairmentchargeof0.6 million for the UltraCell Reporting Unit during the year ended December 31, 2023[316]. - A goodwill impairment charge of 5.1 million was recorded for the SerEnergy and FES Reporting Unit during the year ended December 31, 2023[317]. - The company recognized an impairment charge of 3.3millionrelatedtothePatentedTechnologyduringthesecondquarterof2023[316].−Thecompanyrecognizedalosscontingencyof3.3 million related to the Patented Technology during the second quarter of 2023[316]. - The company recognized a loss contingency of 4.7 million related to litigation during the year ended December 31, 2024[278]. Tax and Interest - Advent follows the asset and liability method of accounting for income taxes under ASC 740, recognizing deferred tax assets and liabilities for estimated future tax consequences[319]. - For the years ended December 31, 2024 and 2023, net income tax benefits of 0.1millionwererecordedintheconsolidatedstatementsofoperationsforbothyears[323].−TheCompanyrecognized0.1 million were recorded in the consolidated statements of operations for both years[323]. - The Company recognized 26 thousand of interest income related to the Bond Loan for the year ended December 31, 2023[327]. - The estimated fair value of the Bond Loan was fully reserved as an expected credit loss as of December 31, 2023, and continues to be reserved as of December 31, 2024[328]. Cash Flow and Debt - The company had a working capital deficit of (26.1)millionasofDecember31,2024,withcurrentassetsof(26.1) million as of December 31, 2024, with current assets of 2.7 million and current liabilities of 28.8million[282].−Advent′scashflowsfromfinancingactivitiesfromcontinuingoperationswereapproximately28.8 million[282]. - Advent's cash flows from financing activities from continuing operations were approximately 0.9 million for the year ended December 31, 2024, compared to 9.1millionfortheyearendedDecember31,2023[290][291].−TheCompanyhadanunrestrictedcashbalanceofapproximately9.1 million for the year ended December 31, 2023[290][291]. - The Company had an unrestricted cash balance of approximately 0.4 million as of December 31, 2024[339]. - Advent's short-term debt was 0.5million,withlimitedexposuretointerestrateriskinthefuture[339].−TheCompanyhasnotenteredintoanyhedgingtransactionsforforeignexchangeriskduetorelativelylowexposure[341].LossesandAdjustedMetrics−ForthethreemonthsendedDecember31,2024,thenetlossfromcontinuingoperationswas0.5 million, with limited exposure to interest rate risk in the future[339]. - The Company has not entered into any hedging transactions for foreign exchange risk due to relatively low exposure[341]. Losses and Adjusted Metrics - For the three months ended December 31, 2024, the net loss from continuing operations was 0.77 million, a decrease of 23.60millioncomparedtothesameperiodin2023[335].−AdjustedEBITDAforthethreemonthsendedDecember31,2024was23.60 million compared to the same period in 2023[335]. - Adjusted EBITDA for the three months ended December 31, 2024 was 1.95 million, an increase of 26.44millioncomparedtothesameperiodin2023[335].−AdjustednetlossfromcontinuingoperationsfortheyearendedDecember31,2024was26.44 million compared to the same period in 2023[335]. - Adjusted net loss from continuing operations for the year ended December 31, 2024 was 0.77 million, a decrease of $23.63 million compared to 2023[337]. Corporate Tax Changes - The U.S. corporate income tax rate was reduced from 35% to 21% as part of the Tax Cuts and Jobs Act of 2017[324].