- Second quarter 2022 revenue of $1.0 million, driven by
construction support services for the 100 megawatt hour (MWh)
project in Rudong, China
- Revenue for the first half of 2022 totaled $43.9 million,
driven by a portion of the $50 million licensing and royalty
agreement with Atlas Renewable received in the first quarter of
2022
- GAAP loss from operations of $(22.0) million
- GAAP net loss of $(6.2) million
- Adjusted EBITDA of $(14.2) million
- Cash and cash equivalents of $299.1 million as of June 30,
2022, vs. $303.5 million as of March 31, 2022
- Redeemed all outstanding, unexercised public warrants,
streamlining the capital structure.
- Continued progress on commercial and construction activities
for our gravity-based solutions including:
- In the U.S., launched site mobilization activities for the
first U.S based EVx system with Enel Green Power in Snyder,
Texas
- In Australia, commenced the initial site planning with Ark
Energy for our EVx system representing multiple gigawatt hours
(GWhs) of storage in Queensland
- In China, progressed construction and civil works for the first
100 MWh EVx system near Shanghai with Atlas Renewables and China
Tianyang
- Announcing the first Energy Vault Solutions projects of
approximately 1 GWh integrating battery-energy storage systems
leveraging the newly developed Energy Management Software platform
- Awarded 275 MWh project with Wellhead Electric and W Power in
Orange County, Southern California
- Awarded projects with a leading independent power producer for
energy storage projects in Texas and California totaling 220
MWh
- Awarded 440 MWh project with a large western U.S. public
utility
Energy Vault Holdings, Inc. (NYSE: NRGV) (“Energy Vault” or “the
Company”), a leader in sustainable, grid-scale energy storage
solutions, announced financial results for the second quarter ended
June 30, 2022.
Robert Piconi, Chairman, Co-Founder and CEO of Energy Vault,
stated, “Strong progress was made during the quarter as evidenced
by the announcements today across our gravity EVx and Energy Vault
Solutions portfolio as our team continues to execute well on
scaling up the business focused on the U.S, Australia and China. I
am particularly pleased with the feedback from our customers in
choosing Energy Vault as their energy storage partner for both
short and long duration storage solutions. The rapid development of
our new hardware-agnostic Energy Management Software platform
underpinning approximately 1 GWh of new project awards announced
today is a tremendous differentiator in the market.”
Mr. Piconi continued, “Execution on our 2022 regional priorities
for first deployments remains strong with tremendous momentum being
built going into the second half of the year. This positions us
well to execute on our 2023 revenue plan, backed by a strong cash
position to support our growth plans and no debt on the balance
sheet.”
Second Quarter 2022 and Recent Business Highlights:
Large scale gravity-energy storage projects utilizing our EVx
system continues multi-continent progress:
- Ark Energy, the Australian subsidiary of Korea Zinc Co. Ltd
(largest zinc, lead, and silver producer worldwide and investor in
Energy Vault) is working with Energy Vault on the initial planning
of multi-GWh for long and short duration energy storage
projects, supporting its sister company Sun Metals Corporation
in Queensland, Australia given their goal of being powered 80% by
renewable energy by 2030. In November 2020, Sun Metals joined RE100
and plans to become one of the first refineries in the world to
produce green zinc. In May 2022, Ark Energy completed its friendly
acquisition of Epuron Holdings in Australia and now has a portfolio
of approximately 9GW of future wind and solar projects to support
its strategy to become one of the largest producers of green
hydrogen.
- Announced with Atlas Renewable and China Tianying the start
of construction for the world’s first EVx utility-scale
gravity-based storage solution in March 2022, for a 25
megawatt, 100 MWh system that will be integrated into China's
national energy grid. All permitting, site activities and initial
civil works have progressed well with all 1,200 foundation pilings
completed. Foundation, fixed frame and power electronics are all
now underway, in parallel with composite brick making. We expect
mechanical completion and the beginning of system commissioning in
the fourth quarter of 2022.
- First 100 MWh project in China progressing in line with plan
despite Shanghai lockdowns.
- Energy Vault will directly support on-site the 100 MWh project
in the fourth quarter of 2022 and into next year with final power
electronics, motor installation and commissioning, final system
mechanical completion and final system and software commissioning
to full operation.
- Energy Vault is expected to support new projects in Rudong
(and/or other cities) of similar size and capacity developed by
Atlas Jiangsu and China Tianying in support of Energy Investment
Professional Committee (EIPC).
- Received a limited notice to proceed with the Enel Green
Power project which continues to be on track for groundbreaking
of the first US-based gravity system in Snyder, Texas in the fall
of 2022.
- Energy Vault and DG Fuels more than doubled the size and
increased the scope of initial energy storage project to support
the production of green hydrogen for sustainable aviation fuel.
The first project site in Louisiana upsized and expanded to a
potential of 1.2 GWh, which reflects a capacity increase versus
previous scope of 500 MWh for behind-the-meter green hydrogen
production. This adds up to $217 million of potential project
revenue to the previously announced revenue opportunity of $520
million over all three projects for a total of up to $737
million.
- Signed Memorandum of Understanding (MOU) for gravity-based
energy storage technology with NTPC, India’s largest power
generating utility, to support their clean energy transition.
The objective of the MOU is to collaborate and formalize a
long-term strategic partnership for deployment of Energy Vault’s
EVx gravity-based energy storage technology and energy management
software solutions based on the outcome of a joint feasibility
study. NTPC noted their interest in the technology’s attributes
regarding the beneficial utilization of coal ash for manufacturing
of composite blocks for Energy Vault’s gravity-based energy storage
system given their large installed base of coal producing power
plants.
Announcing first utility-scale battery energy storage projects
utilizing the new Energy Vault Solutions (EVS) software
platform:
- Energy Vault Solutions (EVS) projects. The systems will
be based on our proprietary integration platform and energy
management software. The EVS platform, which was introduced in the
fourth quarter of 2021, leverages the most advanced software
architecture and optimization algorithms, and enables the
integration and orchestration of multiple energy generation and
storage assets for a multitude of use cases.
- Awarded project with Wellhead Electric and W Power for 275
MWh energy storage project in Southern California. Energy Vault
has been awarded a project to deploy a 68.8 megawatt (275 MWh)
battery energy storage system at Wellhead’s Energy Reliability
Center in Stanton, California to provide enhanced resources and
improved grid reliability in the Southern California Edison
territory. The Stanton ESS will be one of the largest energy
storage systems in southern California and will be based on EVS’s
proprietary system design and EVS’s Energy Management Software for
optimal economic dispatching. This award reflects successful
execution on EVS’s technology-agnostic strategy, to provide
customers with the most flexible and cost-effective energy storage
solutions. The project is expected to be completed during the
second half of 2023.
- Energy Vault awarded energy storage projects totaling 220
MWh in Texas and California with a leading independent power
producer. Energy Vault will deploy a battery energy storage
system in Texas to provide energy and ancillary services to the
ERCOT energy-only market and a battery energy storage system in
California to provide similar services through participation in the
CAISO Resource Adequacy program. The storage systems will be based
on EVS’s proprietary integration system design and EVS’ Energy
Management Software for optimal economic dispatching. The projects
are expected to be completed during the second half of 2023.
- Awarded a 440 MWh battery energy storage system with a large
western U.S. utility. Energy Vault announced today that it was
recently awarded a 440 MWh battery energy storage system project
with a large western public utility with commercial operation
expected in the second half of 2023.
Other recent updates:
- Energy Vault announced key executive appointments during
the quarter, with the hiring of the interim Chief Financial
Officer, Chief Legal Officer and SVP of Corporate Development while
scaling the talent base across the organization by 42% since March
31, 2022.
- In addition, the Board implemented extended lock-up agreements
for 100% of the executive officers who held equity awards that
vested on an accelerated basis upon the closing of Energy Vault’s
business combination in February 2022, impacting equity awards
underlying a number of shares equal to ~5% of the shares
outstanding as of June 30, 2022, including 4.9 million shares
awarded to CEO Robert Piconi that could be subject to a lockup up
to 2025.
Outlook:
- Energy Vault currently expects full year 2022 revenue in the
range of $75 million to $100 million reflecting ramp up of gravity
projects in China and newly awarded EVS projects starting in Q4
2022. Energy Vault also currently expects full year 2022 Adjusted
EBITDA in the range of $(10.0) million to $3.0 million.
- Given the shift of 2022 revenue timing and the recently awarded
projects with 2023 contractual COD’s, Energy Vault currently
expects to have two-year aggregate revenue of approximately $680
million for 2022 and 2023.
Conference Call Information
Energy Vault will host a conference call today at 8:00 AM ET to
discuss the results, followed by a Q&A session. A live webcast
of the call can be accessed https://www.energyvault.com/. To access
the call, participants may dial 1-877-704-4453, international
callers may use 1-201-389-0920, and request to join the Energy
Vault earnings call.
A telephonic replay will be available shortly after the
conclusion of the call and until, August 22, 2022. Participants may
access the replay at 1-844-512-2921, international callers may use
1-412-317-6671, and enter access code 13731405. The call will also
be available for replay via webcast link on the Investors portion
of the Energy Vault website at https://www.energyvault.com/.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties, and assumptions including statements
regarding our future expansion, deployments, capabilities, capital
resources and future financial performance. There are a significant
number of factors that could cause actual results to differ
materially from the statements made in this press release,
including: risks related to the rollout of Energy Vault’s business
and the timing of expected business milestones, including with
respect to the projects described herein, developments and changes
in the general market, the continuing impact of COVID-19,
political, economic, and business conditions, our limited operating
history as a public company, whether MOUs or similar arrangements
and other strategic investments will result in future revenues, the
impact of any delays in projects for which we expect to receive
revenue in 2022 or 2023, delays in construction or delivery of
materials for projects, sufficiency of cash to support the
company’s expansion plans, the fact that the company has no
committed revenue for future periods and risks affecting our
partnerships and customers. Additional risks and uncertainties that
could affect our financial results are included under the captions
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2022 filed with
the Securities and Exchange Commission (the “SEC”) on May 16, 2022,
which is available on our website at investors.energyvault.com and
on the SEC's website at www.sec.gov. Additional information will
also be set forth in other filings that we make with the SEC from
time to time. All forward-looking statements in this press release
are based on information available to us as of the date hereof, and
we do not assume any obligation to update the forward-looking
statements provided to reflect events that occur or circumstances
that exist after the date on which they were made, except as
required by applicable law.
ENERGY VAULT HOLDINGS,
INC.
Condensed Consolidated Balance
Sheets
(Unaudited)
(In thousands except par
value)
June 30,
December 31,
2022
2021
Assets
Current Assets
Cash and cash equivalents
$
299,063
$
105,125
Accounts receivable
5,559
—
Contract assets
22,500
—
Prepaid expenses and other current
assets
4,277
5,538
Total current assets
331,399
110,663
Property and equipment, net
9,319
11,868
Right-of-Use assets, net
1,106
1,238
Other assets
3,696
1,525
Total Assets
$
345,520
$
125,294
Liabilities, Convertible Preferred
Stock, and Stockholders’ Equity (Deficit)
Current Liabilities
Accounts payable
$
2,164
$
1,979
Accrued expenses
1,707
4,704
Deferred revenue, current portion
3,033
—
Long-term finance leases, current
portion
44
48
Long-term operating leases, current
portion
582
612
Total current liabilities
7,530
7,343
Deferred pension obligation
163
734
Asset retirement obligation
968
978
Deferred revenue, long-term portion
8,196
1,500
Long-term finance leases
15
34
Long-term operating leases
563
662
Warrant liability
21,499
—
Total liabilities
38,934
11,251
Commitments and contingencies
Convertible preferred stock, $0.0001 par
value; 85,739 shares authorized, 85,739 shares issued and
outstanding at December 31, 2021; liquidation preference of
$171,348
—
182,709
Stockholders’ Equity (Deficit)
Preferred stock, $0.0001 par value; 5,000
shares authorized, none issued
—
—
Common stock, $0.0001 par value; 500,000
shares authorized, 134,441 shares issued, and 134,441 outstanding
at June 30, 2022; 120,568 shares authorized, 20,432 shares issued,
and 20,432 outstanding at December 31, 2021
13
—
Additional paid-in capital
402,004
713
Accumulated deficit
(95,223
)
(68,966
)
Accumulated other comprehensive loss
(208
)
(413
)
Total stockholders’ equity (deficit)
306,586
(68,666
)
Total Liabilities, Convertible
Preferred Stock, and Stockholders’ Equity (Deficit)
$
345,520
$
125,294
ENERGY VAULT HOLDINGS,
INC.
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands except per share
data)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenue
$
977
$
—
$
43,861
$
—
Operating expenses:
Cost of revenue
571
—
571
—
Sales and marketing
1,949
189
4,529
274
Research and development
9,763
2,202
19,424
3,223
General and administrative
10,668
3,006
20,474
4,861
Inventory write-down
—
2,744
—
2,744
Loss from operations
(21,974
)
(8,141
)
(1,137
)
(11,102
)
Other income (expense)
Change in fair value of derivative
—
24,102
—
—
Interest expense
—
(3
)
(1
)
(7
)
Change in fair value of warrant
liability
15,592
—
(4,645
)
—
Transaction costs
—
—
(20,586
)
—
Other income (expense), net
249
611
285
(1,317
)
Income (loss) before income taxes
(6,133
)
16,569
(26,084
)
(12,426
)
Provision for income taxes
45
—
173
—
Net income (loss)
$
(6,178
)
$
16,569
$
(26,257
)
$
(12,426
)
Net income (loss) per share — basic
Common stock
$
(0.05
)
$
0.18
$
(0.24
)
$
(1.10
)
Convertible preferred stock
—
$
0.20
—
—
Net income (loss) per share — diluted
Common stock
$
(0.05
)
0.16
$
(0.24
)
$
(1.10
)
Convertible preferred stock
—
0.20
—
—
Weighted average shares of outstanding
— basic
Common stock
133,777
11,792
107,509
11,329
Convertible preferred stock
—
70,880
—
—
Weighted average shares of outstanding
— diluted
Common stock
133,777
13,426
107,509
11,329
Convertible preferred stock
—
70,880
—
—
Other comprehensive income (loss) — net
of tax
Actuarial gain (loss) on pension
$
282
$
(332
)
$
560
$
899
Foreign currency translation gain
(loss)
(261
)
47
(355
)
232
Total other comprehensive income
(loss)
21
(285
)
205
1,131
Total comprehensive income
(loss)
$
(6,157
)
$
16,284
$
(26,052
)
$
(11,295
)
ENERGY VAULT HOLDINGS,
INC.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
(In thousands)
Six Months Ended June
30,
2022
2021
Cash Flows From Operating
Activities
Net income (loss)
$
(26,257
)
$
(12,426
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,404
447
Non-cash lease expense
349
299
Non-cash interest income
(109
)
—
Stock based compensation
15,863
250
Change in fair value of derivative
—
—
Change in fair value of warrant
liability
4,645
—
Change in pension obligation
15
35
Asset retirement obligation accretion
expense
37
—
Foreign exchange gains and losses
33
—
Change in operating assets
(30,504
)
348
Change in operating liabilities
6,670
(1,084
)
Net cash used in operating activities
(26,854
)
(8,942
)
Cash Flows From Investing
Activities
Purchase of property and equipment
(333
)
(73
)
Purchase of convertible notes
(2,000
)
—
Net cash used in investing activities
(2,333
)
(73
)
Cash Flows From Financing
Activities
Proceeds from exercise of stock
options
36
6
Proceeds from reverse recapitalization and
PIPE financing, net
235,940
—
Proceeds from exercise of warrants
7,854
—
Payment of transaction costs related to
reverse recapitalization
(20,651
)
—
Payment of lease obligations
(19
)
(238
)
Proceeds from Series B-1 Preferred Stock,
net of issuance costs
—
15,304
Net cash provided by financing
activities
223,160
15,072
Effect of exchange rate changes on cash
and cash equivalents
(35
)
1,522
Net increase in cash
193,938
7,579
Cash and cash equivalents – beginning of
the period
105,125
10,051
Cash and cash equivalents – end of the
period
$
299,063
$
17,630
Supplemental Disclosures of Cash Flow
Information:
Income taxes paid
1
860
Cash paid for interest
1
7
Reclassification of inventory costs
—
10,948
Supplemental Disclosures of Non-Cash
Investing and Financing Information:
Conversion of redeemable preferred stock
into common stock in connection with the reverse
recapitalization
182,034
—
Warrants assumed as part of reverse
recapitalization
19,838
—
Actuarial gain on pension
550
232
Assets acquired on finance lease
—
27
Purchases of intangible assets recorded in
accrued liabilities
—
116
Non-GAAP Financial Measure
We use adjusted EBITDA to complement our condensed consolidated
statements of operations. Management believes that this non-GAAP
financial measure complements our GAAP net income (loss) and such
measure is useful to investors. The presentation of this non-GAAP
measure is not meant to be considered in isolation or as an
alternative to net income (loss) as an indicator of our
performance.
The following table provides a reconciliation from non-GAAP
adjusted EBITDA to GAAP net income (loss), the most directly
comparable GAAP measure (amounts in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net income (loss) (GAAP)
$
(6,178
)
$
16,569
$
(26,257
)
$
(12,426
)
Non-GAAP Adjustments:
Interest income, net
(284
)
(7
)
(331
)
(15
)
Income tax expense
45
—
173
—
Depreciation and amortization
1,186
430
2,404
447
Stock-based compensation expense
6,661
243
15,863
250
Change in fair value of warrant
liability
(15,592
)
—
4,645
—
Transaction costs
—
—
20,586
—
Foreign exchange (gains) and losses
(45
)
(601
)
(56
)
1,339
Change in fair value of derivative
liability
—
(24,102
)
—
—
Adjusted EBITDA (non-GAAP)
$
(14,207
)
$
(7,468
)
$
17,027
$
(10,405
)
We present adjusted EBITDA, which is net income (loss) excluding
adjustments that are outlined in the quantitative reconciliation
provided above, as a supplemental measure of our performance and
because we believe this measure is frequently used by securities
analysts, investors, and other interested parties in the evaluation
of companies in our industry. The items excluded from adjusted
EBITDA are excluded in order to better reflect our continuing
operations.
In evaluating adjusted EBITDA, one should be aware that in the
future we may incur expenses similar to the adjustments noted
above. Our presentation of adjusted EBITDA should not be construed
as an inference that our future results will be unaffected by these
types of adjustments. Adjusted EBITDA is not a measurement of our
financial performance under GAAP and should not be considered as an
alternative to net loss, operating income (loss), or any other
performance measures derived in accordance with GAAP or as an
alternative to cash flow from operating activities as a measure of
our liquidity.
Our adjusted EBITDA measure has limitations as an analytical
tool, and should not be considered in isolation or as a substitute
for analysis of our results as reported under GAAP. Some of these
limitations are:
- it does not reflect our cash expenditures, future requirements
for capital expenditures, or contractual commitments;
- it does not reflect changes in, or cash requirements for, our
working capital needs;
- it does not reflect stock-based compensation, which is an
ongoing expense;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and our adjusted EBITDA measure does not
reflect any cash requirements for such replacements;
- it is not adjusted for all non-cash income or expense items
that are reflected in our condensed consolidated statements of cash
flows;
- it does not reflect the impact of earnings or charges resulting
from matters we consider not to be indicative of our ongoing
operations;
- it does not reflect limitations on or costs related to
transferring earnings from our subsidiaries to us; and
- other companies in our industry may calculate this measure
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, adjusted EBITDA should not be
considered as a measure of discretionary cash available to us to
invest in the growth of our business or as a measure of cash that
will be available to use to meet our obligations. You should
compensate for these limitations by relying primarily on our GAAP
results and using adjusted EBITDA only supplementally.
About Energy Vault
Energy Vault develops and deploys turnkey sustainable energy
storage solutions designed to transform the world’s approach to
utility-scale energy storage in realizing decarbonization while
maintaining grid resiliency. The company’s proprietary energy
management system and optimization software suite is technology
agnostic in its ability to orchestrate various generation and
energy storage resources to help utilities, independent power
producers and large industrial energy users to significantly reduce
their levelized cost of energy while maintaining power quality and
grid reliability. Energy Vault’s EVx™ gravity energy storage system
utilizes eco-friendly materials with the ability to integrate waste
materials for beneficial re-use. Energy Vault is facilitating the
shift to a circular economy while accelerating the clean energy
transition for its customers. For additional information, please
visit: www.energyvault.com
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Investors: energyvaultIR@icrinc.com
Media: media@energyvault.com
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