Advent(US:ADN)2025-06-30 21:15Financial Performance - Total revenue decreased by approximately $2.6 million from approximately $2.7 million in Q1 2024 to approximately $0.1 million in Q1 2025, a decline of 95.2%[179]. - Cost of revenues decreased by approximately $0.2 million from approximately $0.5 million in Q1 2024 to approximately $0.3 million in Q1 2025, a decrease of 34.6%[180]. - Income from grants decreased by approximately $0.8 million from approximately $0.8 million in Q1 2024 to approximately $0.1 million in Q1 2025, a decline of 95.0%[181]. - Research and development expenses were approximately $0.4 million in Q1 2025, down from $1.4 million in Q1 2024, a decrease of 74.8%[182]. - Administrative and selling expenses were approximately $2.3 million in Q1 2025, down from $6.2 million in Q1 2024, a decrease of 63.7%[183]. - Operating loss improved by $1.4 million from $4.4 million in Q1 2024 to $2.9 million in Q1 2025, a reduction of 32.7%[178]. - Net loss from continuing operations was $3.3 million in Q1 2025 compared to $9.4 million in Q1 2024, a decrease of 65.2%[178]. - Adjusted Net Loss from continuing operations for the three months ended March 31, 2025, was $3.27 million, compared to $9.48 million in 2024, reflecting a $6.21 million improvement[229]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(2.74) million, which is an improvement of $0.94 million compared to $(3.68) million in 2024[227]. - EBITDA for the three months ended March 31, 2025, was $(2.74) million, an improvement of $0.88 million from $(3.62) million in 2024[227]. Liquidity and Capital Structure - Cash and cash equivalents at the end of Q1 2025 were $0.3 million, down from $1.6 million at the end of Q1 2024, a decrease of 79.7%[190]. - The company recorded a working capital deficit of $(29.1) million as of March 31, 2025[188]. - The company faces significant liquidity risks and has substantial doubt regarding its ability to continue as a going concern for the next year[189]. - Net cash provided by operating activities was approximately $0.3 million for the three months ended March 31, 2025, compared to $(2.6) million for the same period in 2024[193]. - Advent had an unrestricted cash balance of approximately $0.3 million as of March 31, 2025, with short-term debt of $0.5 million[231]. Contracts and Grants - Advent secured a €34.5 million grant from the EU Innovation Fund for the RHyno Project, aimed at developing innovative fuel cells and electrolysers[145]. - Advent received a $2.2 million contract from the US DoD to optimize the Honey Badger 50™ system, focusing on integrating the Ion Pair MEA technology[153]. - A new $2.8 million contract with the US DoD aims to enhance production capacity for the HB50 system while maintaining quality[154]. - Advent's revenues are expected to increase materially, with a focus on Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) over time[166]. Operational Developments - The Honey Badger 50™ fuel cell system can generate up to 50W of continuous power, providing 65% weight savings compared to traditional batteries for military applications[150][152]. - Advent is developing its next generation MEA technology, expected to deliver up to three times the power output of its current MEA product, in partnership with Los Alamos National Laboratory[164]. Compliance and Legal Matters - The company faced compliance issues with Nasdaq due to stock price and reporting requirements but has since met the minimum bid requirement[156][157]. - Advent Technologies A/S was declared bankrupt, but the remainder of the company's entities will continue operations[160]. - An arbitration award of approximately €4.5 million was decided in favor of F.E.R. fischer Edelstahlrohre GmbH, which the company is appealing[161]. Accounting and Financial Reporting - Advent's consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could materially affect reported amounts[204]. - Recent accounting pronouncements are not expected to have a material impact on Advent's financial position or results of operations upon adoption[222]. - For the three months ended March 31, 2025, the net loss from continuing operations was $3.27 million, an improvement of $6.15 million compared to a net loss of $9.42 million in the same period of 2024[227]. Risk Factors - Advent does not currently believe that inflation has a material effect on its business and is taking steps to mitigate cost increases[232]. - The company is exposed to foreign exchange risk due to costs and revenues denominated in Euros, but has not yet entered into hedging transactions[233]. - The company intends to limit debt financing, thus minimizing exposure to interest rate risk in the future[231].