Advent Technologies Reports Q1 2021 Results

BOSTON–(BUSINESS WIRE)–Creation Applied sciences Holdings, Inc. (NASDAQ: ADN) (“Creation”) right now introduced consolidated monetary outcomes for the three months ended March 31, 2021. All quantities are in U.S. {dollars} except in any other case famous and have been ready in accordance with U.S. typically accepted accounting ideas (GAAP).

Q1 2021 Monetary Highlights

(all comparisons are to Q1 2020 except in any other case famous)

• Whole income was $1.49 million, a year-over-year enhance of $1.39 million, the results of elevated demand for our merchandise throughout the board. Whole Income for Q1 2021 exceeded the Whole Income for all of Fiscal 12 months 2020, because of:
  • Elevated demand for HT-PEM primarily based gas cell supplies;
  • Elevated demand for redox circulate battery elements;
  • Elevated shipments of our IoT sensors; and
  • Addition of Creation’s UltraCell enterprise strong income contribution.
• Gross Revenue of $1.14 million, a year-over-year enhance of $1.11 million primarily because of larger revenues and a positive enterprise combine.
• Working prices of $8.14 million, a year-over-year enhance of $7.79 million, because of One-Time Transaction Associated Bills in addition to elevated staffing, and public firm prices.
• Internet earnings and adjusted web loss had been $2.91 million and ($0.99) million. Adjusted web loss excludes the impression from the change within the honest worth of excellent warrants in addition to the one-time transaction-related bills.
• Internet earnings per share was $0.08.
• Money reserves had been $124.97 million on March 31, 2021, a rise of $124.45 million from December 31, 2020 pushed by web $140.17 million of money raised within the quarter from our enterprise mixture, together with the $65.0 million PIPE, with AMCI that was consummated on February 4, 2021.

“Following our profitable enterprise mixture with AMCI Acquisition Corp. and the following acquisition of UltraCell LLC, we noticed sturdy demand for our merchandise from current and new prospects,” stated Dr. Vasilis Gregoriou, Chairman and CEO of Creation Applied sciences. “The substantial enhance in income within the quarter demonstrates a surge of market curiosity in high-temperature proton trade membrane (HT-PEM) primarily based merchandise. We’re assured that a lot of our prospects are on a quick development trajectory, and we’re working intently with them to supply MEAs and gas cell know-how methods to serve their wants.”

Q1 2021 Monetary Abstract

For a extra detailed dialogue of Creation’s first quarter 2021 outcomes, please see the corporate’s monetary statements and administration’s dialogue & evaluation, which can be found at ir.advent.energy.

The monetary outcomes embody non-GAAP monetary measures. These non-GAAP measures are extra absolutely described and are reconciled from the respective measures decided below GAAP in “Presentation of Non-GAAP Monetary Measures” and the connected appendix tables.

Q1 2021 Enterprise Updates:

Key current product growth highlights embody:

• Scale-up and commercialization of the U.S. Division of Power (DoE) next-generation MEA know-how.
• Growth of proprietary gas cell stack know-how for mobility purposes, leveraging the know-how of UltraCell light-weight stacks.
• Manufacturing automation of MEA and gas cell stack manufacturing.
• Growth of supplies for low-capex AEM electrolyzers and redox flow-batteries.

Dr. Gregoriou added, “We proceed to seek out new use instances for our know-how and turning into a public firm with entry to the monetary markets has allowed us to speed up this course of. We’re seeing sturdy demand for our merchandise coming from all of our addressable markets.”

Order highlights embody:

• Orders for MEAs (Membrane Electrode Assemblies, what we label “the center of the fuel-cell”), from gas cell builders within the markets of mobility and stationary purposes in Asia.
• Orders for prototype gas cell stacks from Europe, the place we’re witnessing a powerful enhance of main hydrogen initiatives throughout the European Union.
• Orders for redox circulate battery supplies that exceed considerably final yr’s exercise.
• Income from engineering charges within the space of electrochemical sensor growth, the place we’re working intently with IoT firms to commercialize the know-how.
• Orders for UltraCell defense-related methods.

Dr. Gregoriou continued, “Following our enterprise mixture on February 4, 2021, our crew hit the bottom working and the momentum continues. We count on to see each revenues and bookings enhance as we transfer by means of the remainder of 2021. As well as, we secured a brand new headquarters and know-how manufacturing house within the extremely aggressive Boston market, serving to us entice top-level expertise so as to execute on our marketing strategy.”

Q1 2021 Working Highlights

• Number of Creation’s Wearable Gas Cell for the 2021 Validation Program: On March 31,^{2021, Creation introduced that UltraCell’s 50 W Reformed Methanol Wearable Gas Cell Energy System (“Honey Badger”) had been chosen by the U.S. Division of Protection’s Nationwide Protection Middle for Power and Surroundings (“NDCEE”) to participate in its demonstration/validation program for 2021. The NDCEE is a Division of Protection program that addresses high-priority environmental, security, occupational well being, and vitality technological challenges which might be demonstrated and validated at lively installations for navy software. UltraCell’s “Honey Badger 50” gas cell is the one gas cell that’s a part of this program that helps the U.S. Military’s purpose of getting a technology-enabled power by 2028.}

• Collaboration with the DOE: On March 1, 2021, Creation introduced that it had entered right into a joint growth settlement (the “CRADA”) with america Division of Power’s (DOE’s) Los Alamos Nationwide Laboratory (LANL), Brookhaven Nationwide Laboratory (BNL), and Nationwide Renewable Power Laboratory (NREL). Underneath this CRADA, together with assist from the DOE’s Hydrogen and Gas Cell Applied sciences Workplace (HFTO), Creation’s crew of scientists plan to work intently with its LANL, BNL, and NREL counterparts over the approaching years to develop breakthrough supplies to assist strengthen U.S. manufacturing within the gas cells sector and produce high-temperature proton trade membrane (HT-PEM) gas cells to the market.

• Acquisition of UltraCell LLC: On February 18, 2021, Creation acquired UltraCell LLC, the gas cell enterprise of Bren-Tronics, Inc. for $4.0 million and a most of $2.0 million upon the achievement of sure milestones. These milestones had been met and the extra $2.0 million was paid on April 16, 2021. This transaction was important as a result of it brings a full stack and methods enterprise to Creation’s product portfolio. UltraCell is a frontrunner in light-weight gas cells for the transportable energy market with mature merchandise and cutting-edge know-how.

• New HQ and know-how heart in Boston, MA: On February 5, 2021, Creation leased 6,041 sq. toes of premier workplace house at 200 Clarendon Road in Boston, MA. This iconic constructing is within the coronary heart of Boston and offers Creation with ample room to deal with its government, know-how, and administrative groups. On March 8, 2021, Creation additionally secured a brand new eight-year lease for 21,401 sq. toes within the coronary heart of Boston’s know-how and R&D neighborhood at Hood Park in Charlestown, MA as its applied sciences facility to speed up product growth on current next-generation membrane electrode meeting (MEA) initiatives, together with high-temperature polymer electrolyte membrane (HT-PEM) gas cell know-how for the automotive trade.

Dr. Gregoriou concluded, “I’m assured the long run for Creation Applied sciences has by no means been brighter. Our fuel-cell know-how, permitting the usage of a number of fuels, is an ideally suited resolution for the protection and off-grid markets. We imagine the “Any Gas. Anyplace” merchandise give us a transparent benefit in a marketplace for which only a few firms compete and the place hydrogen in its compressed fuel kind required by the low-temperature PEM rivals shouldn’t be a cost-effective choice. Within the mobility market, and significantly within the heavy-duty truck and aviation areas, we have now sturdy validation that the high-temperature PEM know-how is well-designed for attaining the full value of possession objectives of our prospects. Moreover, we have now not too long ago seen elevated curiosity in large-scale mixed warmth and energy initiatives, the place the warmth produced by our PEM merchandise is one thing that low-temp merchandise can’t present. Provided that our value-add is within the MEA and gas cell stack know-how quite than within the end-system and software space, we plan to can handle all these markets with the identical MEA know-how quite than fully unbiased efforts, which might show very costly. New coverage objectives throughout the developed and creating world are solely accelerating this pattern, and Creation is effectively positioned to benefit from these dynamics.”

Convention Name

The Firm will host a convention name on Thursday, Might 20, 2021, at 9:00 AM ET to debate its outcomes.

To entry the decision please dial (866) 498-0631 from america, or (873) 415-0202 from outdoors the U.S. The convention name I.D. quantity is 2763459. Contributors ought to dial in 5 to 10 minutes earlier than the scheduled time.

A replay of the decision can be accessed by way of cellphone by means of June 3, 2021 by dialing (800) 585-8367 from the U.S., or (416) 621-4642 from outdoors the U.S. The convention I.D. quantity is 2763459.

About Creation Applied sciences Holdings, Inc.

Creation Applied sciences Holdings, Inc. is a U.S. company that develops, manufactures, and assembles important elements for gas cells and superior vitality methods within the renewable vitality sector. Creation is headquartered in Boston, Massachusetts, with places of work within the San Francisco Bay Space and Europe. With 120-plus patents (issued and pending) for its gas cell know-how, Creation holds the IP for next-gen high-temperature proton trade membranes (HT-PEM) that allow varied fuels to operate at excessive temperatures below excessive situations – providing a versatile ‘Any Gas. Anyplace’ choice for the automotive, maritime, aviation, and energy technology sectors. www.advent.energy

Necessary Cautions Relating to Ahead-Wanting Statements

This press launch consists of forward-looking statements. These forward-looking statements typically could be recognized by way of phrases comparable to “anticipate,” “count on,” “plan,” “might,” “might,” “will,” “imagine,” “estimate,” “forecast,” “purpose,” “venture,” and different phrases of comparable that means. These forward-looking statements handle varied issues together with the Firm’s plans and expectations with respect to its working and monetary efficiency for the rest of 2021, the elevated demand for its MEAs and gas cell know-how, the continued growth of its next-generation HT-PEM know-how alongside the Division of Power, the development of potential breakthrough supplies for the HT-PEM market, and the opening of its new manufacturing facility and headquarters in Boston. Every forward-looking assertion contained on this press launch is topic to dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied by such assertion. Relevant dangers and uncertainties embody, amongst others, the Firm’s potential to appreciate the advantages from the enterprise mixture; the Firm’s potential to take care of the itemizing of the Firm’s frequent inventory on Nasdaq; future monetary efficiency; public securities’ potential liquidity and buying and selling; impression from the result of any recognized and unknown litigation; potential to forecast and preserve an enough charge of income development and appropriately plan its bills; expectations concerning future expenditures; future mixture of income and impact on gross margins; attraction and retention of certified administrators, officers, workers and key personnel; potential to compete successfully in a aggressive trade; potential to guard and improve our company fame and model; expectations regarding {our relationships} and actions with our know-how companions and different third events; impression from future regulatory, judicial and legislative modifications to the trade; potential to find and purchase complementary applied sciences or providers and combine these into the Firm’s enterprise; future preparations with, or investments in, different entities or associations; and intense competitors and aggressive stress from different firms worldwide within the industries during which the Firm will function; and the dangers recognized below the heading “Danger Elements” in our Annual Report on Type 10-Ok filed with the Securities and Trade Fee on March 26, 2021, as amended on Might 19, 2021 in addition to the opposite info we file with the SEC. We warning buyers to not place appreciable reliance on the forward-looking statements contained on this press launch. You’re inspired to learn our filings with the SEC, accessible at www.sec.gov, for a dialogue of those and different dangers and uncertainties. The forward-looking statements on this press launch communicate solely as of the date of this doc, and we undertake no obligation to replace or revise any of those statements. Our enterprise is topic to substantial dangers and uncertainties, together with these referenced above. Buyers, potential buyers, and others ought to give cautious consideration to those dangers and uncertainties.

Presentation of Non-GAAP Monetary Measures

Along with the outcomes supplied in accordance with U.S. typically accepted accounting ideas (“GAAP”) all through this press launch, the Firm has supplied non-GAAP monetary measures— Adjusted Internet Earnings /(Loss),EBITDA and Adjusted EBITDA —which current outcomes on a foundation adjusted for sure objects. The Firm makes use of these non-GAAP monetary measures for enterprise planning functions and in measuring its efficiency relative to that of its rivals. The Firm believes that these non-GAAP monetary measures are helpful monetary metrics to evaluate its working efficiency from period-to-period by excluding sure objects that the Firm believes usually are not consultant of its core enterprise. These non-GAAP monetary measures usually are not meant to exchange, and shouldn’t be thought-about superior to, the presentation of the Firm’s monetary leads to accordance with GAAP. Using the phrases Adjusted Internet Earnings / (Loss), EBITDA and Adjusted EBITDA might differ from comparable measures reported by different firms and will not be akin to different equally titled measures. These measures are reconciled from the respective measures below GAAP within the appendix under.

Supplemental Non-GAAP Measures and Reconciliations

Along with offering measures ready in accordance with GAAP, we current sure supplemental non-GAAP measures. These measures are EBITDA, Adjusted EBITDA and Adjusted Internet Earnings / (Loss), which we use to guage our working efficiency, for enterprise planning functions and to measure our efficiency relative to that of our friends. These non-GAAP measures don’t have any standardized that means prescribed by GAAP and subsequently might differ from to comparable measures offered by different firms and will not be akin to different equally titled measures. We imagine these measures are helpful in evaluating the working efficiency of the Firm’s ongoing enterprise. These measures ought to be thought-about along with, and never as an alternative to web earnings, working expense and earnings, money flows and different measures of monetary efficiency and liquidity reported in accordance with GAAP. The calculation of those non-GAAP measures has been made on a constant foundation for all intervals offered.

EBITDA and Adjusted EBITDA

These supplemental non-GAAP measures are supplied to help readers in figuring out our working efficiency. We imagine this measure is helpful in assessing efficiency and highlighting tendencies on an general foundation. We additionally imagine EBITDA and Adjusted EBITDA are continuously utilized by securities analysts and buyers when evaluating our outcomes with these of different firms. EBITDA differs from probably the most comparable GAAP measure, web earnings / (loss), primarily as a result of it doesn’t embody earnings taxes, depreciation of property, plant and gear, and amortization of intangible property. Adjusted EBITDA adjusts EBITDA for transactional features and losses, asset impairment costs, finance and different earnings and acquisition prices.

The next tables present a reconciliation of web earnings/(loss) to EBITDA and Adjusted EBITDA for the three months ended March 31, 2021 and 2020.

(1) Bonus awarded after consummation of the enterprise mixture efficient February 4, 2021.

Adjusted Internet Earnings/(Loss)

This supplemental non-GAAP measure is supplied to help readers in figuring out our monetary efficiency. We imagine this measure is helpful in assessing our precise efficiency by adjusting our outcomes from persevering with operations for modifications in warrant legal responsibility and one-time transaction prices. Adjusted Internet Loss differs from probably the most comparable GAAP measure, web earnings / (loss), primarily as a result of it doesn’t embody one-time transaction prices and warrant legal responsibility modifications. The next desk reveals a reconciliation of web earnings/(loss) for the three months ended March 31, 2021 and 2020.

Adjusted Internet Earnings/(Loss)

(1) Bonus awarded after consummation of the enterprise mixture efficient February 4, 2021.