Eos Energy Enterprises(US:EOSE)2025-05-06 20:16Financial Performance - For the three months ended March 31, 2025, the Company reported revenue of $10.5 million, a 58% increase from $6.6 million in the same period of 2024, driven by higher product sales and increased selling prices [208][209]. - Cost of goods sold for the same period increased by $6.8 million or 24% to $35.0 million, primarily due to increased product sales volume, partially offset by a decrease in unit production costs [209][210]. - The company reported a net income of $15.1 million for the three months ended March 31, 2025, with negative cash flows from operations amounting to $28.9 million and an accumulated deficit of $1,546.6 million [227]. - The net cash used in operating activities was $28.9 million for the three months ended March 31, 2025, adjusted for non-cash items totaling $60.9 million [236]. - The company expects revenues to increase as it scales production to meet customer demand, despite current costs of goods sold exceeding revenues in the near term [209][210]. Expenses and Investments - Research and development expenses rose by $1.6 million or 31% to $6.8 million, attributed to higher payroll, stock-based compensation, and consulting costs to support business scaling [212][213]. - Selling, general and administrative expenses increased by $6.8 million or 47% to $21.0 million, mainly due to payroll and stock-based compensation costs related to expanded headcount [214][215]. - The company incurred capital expenditures of $4.9 million for the three months ended March 31, 2025, compared to $4.0 million for the same period in 2024, indicating an increase in investment to support growth [231]. Funding and Liquidity - The Company has received $68.3 million in funding under the DOE Loan Facility at an interest rate of 4.791%, with plans to expand manufacturing capacity to 8 GWh by 2027 [202][204]. - The company drew down $68.3 million under Tranche 1 of the DOE Loan Facility, which provides up to $303.5 million in funding, subject to certain conditions [226]. - The company has a liquidity position of $82.6 million in unrestricted cash and cash equivalents, with working capital of $94.8 million as of March 31, 2025 [230]. - The company has entered into a $210.5 million secured multi-draw facility and a $105.0 million revolving credit facility with Cerberus, enhancing its capital position [225]. Future Outlook and Risks - The company expects to continue incurring significant losses and negative cash flows until it reaches a scale of profitability [223]. - The company anticipates that it may be unable to comply with Minimum Consolidated EBITDA and Minimum Consolidated Revenue financial covenants beginning December 31, 2025, without securing a waiver or amendment [229]. - There have been no material changes in the company's market risk exposures for the three months ended March 31, 2025, compared to the previous year [244]. Product Development - The Eos Z3 battery, which began deliveries in Q3 2023, is designed to reduce costs and weight while enhancing performance, featuring 50% fewer cells and 98% fewer welds compared to the previous generation [199][200]. - The Company announced an $8 million standalone BESS order for the Naval Base of San Diego, funded by a grant from the California Energy Commission, highlighting its role in U.S. national security infrastructure [211]. Accounting and Financial Reporting - The company’s significant accounting policies are detailed in the Annual Report on Form 10-K for the year ended December 31, 2024 [242]. - There have been no material changes in critical accounting estimates in the company's Annual Report on Form 10-K for the year ended December 31, 2024 [243]. - The change in fair value of warrants resulted in a loss of $45.9 million for the three months ended March 31, 2025, compared to a gain of $2.9 million in 2024 [219].