FREYR Battery Inc DE

Previous wording

General and administrative expenses decreased by $7.1 million or 24%, to $22.9 million for the three months ended March 31, 2024, from $30.0 million for the three months ended March 31, 2023. This decrease is primarily due to a decrease in personnel costs and legal and professional fees.

Current wording

General and administrative expenses decreased by $7.5 million or 27%, to $20.1 million for the three months ended June 30, 2024, from $27.6 million for the three months ended June 30, 2023. General and administrative expenses decreased by $14.6 million or 25%, to $43.0 million for the six months ended June 30, 2024, from $57.6 million for the six months ended June 30, 2023. These decreases are primarily due to decreases in personnel costs and legal and professional fees.

Previous wording

R&D expenses increased by $6.9 million or 142% to $11.7 million for the three months ended March 31, 2024, from $4.8 million for the three months ended March 31, 2023. This is primarily due to an increase in personnel costs and spending on R&D operations at the CQP, which started operations late in the second quarter of 2023.

Current wording

R&D expenses increased by $4.1 million or 65%, to $10.5 million for the three months ended June 30, 2024, from $6.4 million for the three months ended June 30, 2023. R&D expenses increased by $11.0 million or 98%, to $22.2 million for the six months ended June 30, 2024, from $11.2 million for the six months ended June 30, 2023. This is primarily due to an increase in personnel costs and spending on R&D operations at the CQP, which started operations late in the second quarter of 2023.

Previous wording

Other income decreased by $16.1 million or 72% to $6.1 million for the three months ended March 31, 2024, from $22.2 million for the three months ended March 31, 2023. The decrease is primarily due to a $1.5 million net foreign currency transaction gain for the three months ended March 31, 2024, compared to a $16.0 million gain for the three months ended March 31, 2023.

Current wording

Other income decreased by $5.1 million or 59%, to $3.6 million for the three months ended June 30, 2024, from $8.8 million for the three months ended June 30, 2023. Other income decreased by $21.2 million or 69%, to $9.7 million for the six months ended June 30, 2024, from $30.9 million for the six months ended June 30, 2023. These decreases are primarily due to a $(0.1) million and $1.4 million net foreign currency transaction (loss) gain for the three and six months ended June 30, 2024, respectively, compared to a $7.7 million and $23.8 million gain for the three and six months ended June 30, 2023, respectively.

Previous wording

As of March 31, 2024, we had approximately $252.8 million of cash, cash equivalents, and restricted cash and current liabilities of approximately $40.0 million. To date, our principal sources of liquidity have been proceeds received from our Business Combination, issuance of equity securities, and amounts received from government grants. Historically, these funds have been used for constructing and equipping our battery manufacturing facilities, including the CQP and Giga Arctic, the purchase of land for Giga America, technology licensing, R&D activities, and general corporate purposes.

Current wording

As of June 30, 2024, we had approximately $221.5 million of cash, cash equivalents, and restricted cash and current liabilities of approximately $35.4 million. To date, our principal sources of liquidity have been proceeds received from our Business Combination, issuance of equity securities, and amounts received from government grants. Historically, these funds have been used for constructing and equipping our battery manufacturing facilities, including the CQP and Giga Arctic, the purchase of land for Giga America, technology licensing, R&D activities, and general corporate purposes.

Previous wording

In August 2022, the Company estimated its Giga Arctic facility to have a total cost of approximately $1.7 billion, using the configuration assumptions determined at that time. In 2023, we substantially completed groundworks and certain foundation structures, erected the initial building and secured and weatherized it, and then suspended work on the planned gigafactory. FREYR has elected to secure the Giga Arctic asset and minimize spending in 2024, instead prioritizing liquidity for scale-up efforts at the CQP and focusing spending on development of Giga America. Additional spending on Giga Arctic is pending continuing technology development and a competitive Norwegian regulatory response to the IRA. The total cost to complete the construction and buildout of the Giga Arctic facility and the timing of cash requirements will depend on a variety of factors such as the ultimate configuration of the facility, including the number of production lines, the capacity of the facility, technology and product specifications, the form and amount of government grants and assistance, the availability, form, and additional requirements of project and other financing, and general economic conditions.

Current wording

FREYR’s liquidity and focusing spending on the development of Giga America. Additional spending on Giga Arctic is pending continuing technology development and a competitive Norwegian regulatory response to the IRA. The total cost to complete the construction and buildout of the Giga Arctic facility and the timing of cash requirements will depend on a variety of factors such as the ultimate configuration of the facility, including the number of production lines, the capacity of the facility, technology and product specifications, the form and amount of government grants and assistance, the availability, form, and additional requirements of project and other financing, and general economic conditions.

Previous wording

Net cash used in operating activities was $16.2 million for the three months ended March 31, 2024, compared to $12.5 million for the three months ended March 31, 2023. The increase in cash used in operating activities was primarily driven by an increase in cash used for working capital, largely due to the receipt in 2023 of a $20.0 million government grant with no corresponding amount in 2024, partially offset by a decrease in routine working capital needs in the period and a decrease in net loss, adjusted for non-cash items.

Current wording

Net cash used in operating activities was $44.2 million for the six months ended June 30, 2024, compared to $34.7 million for the six months ended June 30, 2023. The increase in cash used in operating activities was primarily driven by an increase in cash used for working capital, largely due to the receipt in 2023 of a $20.0 million government grant with no corresponding amount in 2024, partially offset by a decrease in routine working capital needs in the period and a decrease in net loss, adjusted for non-cash items.

Previous wording

Net cash used in investing activities was $2.4 million for the three months ended March 31, 2024, compared to $66.7 million for the three months ended March 31, 2023. The decrease in cash used in investing activities was primarily driven by a decrease in purchases of property and equipment due to lower construction activity in the current year period, and proceeds from the return of property and equipment deposits of $19.0 million for the three months ended March 31, 2024 with no corresponding amount for the three months ended March 31, 2023.

Current wording

Net cash used in investing activities was $6.4 million for the six months ended June 30, 2024, compared to $131.0 million for the six months ended June 30, 2023. The decrease in cash used in investing activities was primarily driven by a decrease in purchases of property and equipment due to lower construction activity in the current year period, and proceeds from the return of property and equipment deposits of $22.7 million for the six months ended June 30, 2024 with no corresponding amount for the six months ended June 30, 2023.

Previous wording

Net cash provided by financing activities was zero for the three months ended March 31, 2024 and 2023.

Current wording

Net cash provided by financing activities was zero for the six months ended June 30, 2024 and 2023.

Previous wording

Our critical accounting policies and estimates are consistent with those described in the Management’s Discussion and Analysis section of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. There have been no material changes to our critical accounting policies during the three months ended March 31, 2024.

Current wording

Our critical accounting policies and estimates are consistent with those described in the Management’s Discussion and Analysis section of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. There have been no material changes to our critical accounting policies during the six months ended June 30, 2024.