FREYR(US:FREY)2023-08-10 20:12Financial Performance - FREYR Battery reported a net loss of $25.3 million for the three months ended June 30, 2023, compared to a net income of $4.7 million for the same period in 2022, marking a significant year-over-year change [83]. - Other income decreased by 76% to $8.8 million for the three months ended June 30, 2023, primarily due to a loss on warrant liability fair value adjustment [92]. - Net cash used in operating activities decreased by 31% to $34.7 million for the six months ended June 30, 2023, compared to $50.4 million for the same period in 2022, primarily due to a $20.0 million government grant received [105]. - Net cash used in investing activities increased by 434% to $131.0 million for the six months ended June 30, 2023, driven by $128.4 million in purchases of property and equipment [106]. - Net cash used in financing activities was zero for the six months ended June 30, 2023, compared to $1.1 million in the same period of 2022, which was related to treasury share purchases [107]. Research and Development - Research and development expenses increased by 107% to $6.4 million for the three months ended June 30, 2023, driven by the startup of R&D operations at the Customer Qualification Plant (CQP) [88]. - The company expects R&D expenses to continue increasing as it expands personnel and activities at the CQP [89]. Grants and Funding - FREYR was awarded a €100 million grant from the European Union to support the Giga Arctic project, contingent on meeting certain project milestones [82]. Capital Expenditures and Projects - The Giga Arctic facility is estimated to cost approximately $1.7 billion for eight production lines, with construction currently underway [99]. - Giga America is projected to have an initial capital cost of approximately $1.7 billion, with phase 1A targeting a production start in summer 2025 [101]. - The company’s capital expenditures may change based on management's estimates and external factors, with no assurance of executing current plans [103]. Administrative Expenses - General and administrative expenses decreased by 2% to $27.6 million for the three months ended June 30, 2023, but increased by 9% to $57.6 million for the six months ended June 30, 2023 [85]. - FREYR anticipates that general and administrative expenses will remain steady or increase slightly in the near term as it scales operations in the U.S. [86]. Market Status - The company expects to lose its emerging growth company status on December 31, 2023, and will qualify as a large accelerated filer based on its unaffiliated market capitalization as of June 30, 2023 [111]. - There have been no material changes in market risk from the previous disclosures in the Annual Report for the year ended December 31, 2022 [112].