ADN - Earnings call 3 2023 | Advent Technologies Holdings, Inc.

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Operator

Good morning, everyone. I will be your conference operator today. At this time, I would like to welcome everyone to Advent Technologies Third Quarter Earnings Conference Call. [Operator Instructions] On the call today, we are joined by Dr. Vassili Gregoriou, Advent's Chairman and CEO; and Kevin Brackman, Advent's CFO.

before prepared issued would its a XXXX results the you to third begin financial Advent today. that press shortly we remarks, like we remind quarter Before open market release announcing

may company's www.advent.energy. the the section website, on Investor the You Relations access of materials

to Advent's forward-looking and I also intended statements for of safe that company's customer orders call, regarding company's the remind discuss business forecasts, are during this statements. everyone forward-looking Litigation the covered would will that targets the harbor outlook Private to the XXXX conference Reform like by management be and other future of Act provisions Securities

many While results and these of results from today, differ expectations and represent to that current actual materially performance and cause could projections risks about to those uncertainties actual as management's future expectations. Advent's results subject statements are

including applicable this risks the call, Advent's no law, as most any reason addition the required for during with after of today's filed future In Exchange are factors call. by the affect of recent any described undertakes to results update highlighted any in date obligation Except company its Commission Securities that reports press earnings may to forward-looking this and these statements SEC important release.

such end believes made upon results estimates. to research and with markets internal with cause from estimates. reasonable. resources industry expressed based and materially could information reviewing knowledge call assumptions research and other position the which independent sources competitive on to which industry released analysis as organizations, from subject These Lastly, in be information assumptions discussed other on well by this those and estimates the and management it in the from are based to and from risks, concerning on Management derived information data market company's third-party company's differ as the which such publicly in industry independent data it industry uncertainties of is are third-party are operates available

Gregoriou, recorded. call this now Dr. you. the Gregoriou. turn kicking note that Dr. off being to call the is I'll Please over And Vassili will be call

Vasilis Gregoriou

everyone Thank in on you, the our you Advent's an to detail. will review today's update then morning On call, and outlook operator. Earnings thank more and will Good I for Kevin, listening hand business. who XXXX joining on in, Third to provide financial Call. Quarter I us performance over will

of this a our update, We and since and technology High-Temperature pipeline power contract technology start its expanding and wins the I will Advent consolidated on our last commercial the my number and its operations where on well focused these view to core I executing embedding shortly. sectors. In business our is milestones a highlighted third PEM that portfolio in and of achieved with was strategy, sector quarter, we key Through implementing particularly was suited. remain discuss focusing

and achieving We be demand believe look technology on our and commercial that Advent's growth. long-term to partnerships. we We positioned related Advent High-Temperature through suitable ideally activities this opportunity, forward for create capitalize to and will will believe the significant PEM growing future profitable products

immediately assembly optimized services and I thereafter contract sheet X the will global by be centers and a signed of excited for with of week, in third-party on commence business in people, our overview support cells. will knowledge to end announce an space now signed financial to leader take regarding to Last fuel research Pair recent materials, Airbus aeronautics, signing based of project is Ion industry. sheet The Airbus, and project. membrane the will give benchmark hydrogen the of and to collaboration in update. hardware an the years. aviation provide the term Advent XXXX, will the a term of the XXXX. its over contribute we the the related to goal invest joint project multimillion-dollar A were project extended expected for will electrode place

benchmark High-Temperature and temperature is The use, increased low-temperature which maritime compared requirements goal increased the and High the technological for Advent Pair to fuel range and also carrying believes performance, of Ion a the degrees, increased Advent's cell allow than largest option, and aviation capability but development XXX of MEAs to limits. solve current superior at not use. thermal heavy-duty in the only automotive MEA aim management. aviation that MEA fuel temperature and is industry to technology. against PEM cells project expected is operate fuel accelerate High-Temperature the of PEM higher for passenger aviation trucks, one a challenges

continuation through we demand million services prime California, contract September, subsidiary, $X.X under milestone the of contract its to optimize Defense the Ion the in our for technology. a MEA series power comes contract in system. technical U.S. past the innovative requirements U.S. the Livermore, fuel proprietary and secured will is mission the Department Defense, Advent's This new U.S. portable role wholly of HBXX system portable In a Pair with general of cell Army. achievement crucial our supporting This of objective play integrating Department the is in with contracts further primary owned of by and

cost power the of product. ideal technology is end Pair large MEA making and Defense operations. manufacturing and system Ion focusing density the heart forms aim of enhanced production of collaboration the performance, contract, from of their heart resulting this U.S. high-volume fuel Advent performance [ in [ Advent cell, ] of will determine reinforce enhance on anticipated applications, Department the for HBXX's to rescue capacity. -- the including by significantly that new to lifetime, extent, higher compact field MEA and, process improved for a manufacturing and efficiency, their the packaging, the enable long-term ] completion the electrochemical off-grid military the the of HBXX On weight and fuel the the XX-month it cell to

portable been supply suitable fuel power Since to a actively for XXXX, we've the the successful highly and charging XX-watt battery field operational reinforcing efficient with for various on-the-move supply cell fuel report applications. significantly Through refining direct its power of HBXX been create the and suitability. 'XX and Army rigorous 'XX has cell in U.S. system technical system original efforts, size the in test final culminating and development reduced, weight

HBXX of wider XX at other freezing you it power system's remote satellite The pursuit reliability ambient a laptops a considerably by the apparati, power challenging on of compact at in radio clean climates. system unique hydrogen military-grade and can and allows ensuring generation highly and similarly power portable temperature fueled batteries. their HBXX's Celsius, thermal is needs. lightweight wide Defense's aligned with needs. below it methanol, emissions. adaptability design features to weight power at systems, electronic communication -- degrees factor within allows conditions a to from The of therefore providing surveillance and battery-charging range near-silent operate be solutions a enable operate run Department biodegradable Its carrier least to to methanol of This traditional for with as the fraction U.S. to

conjunction fuel Serene -- expansion has application Advent integrator, power Also in and order in September, to will the in in terms market. section value total source $X.X secured in chain fuel is million. leisure serve Advent's this operating with the Asian small XXXX Advent innovative time cabins, and with The of provide the agreement, throughout accordance contract contract cell eFuel-powered with within the a remain its application stacks stacks, of sector line. in projected Under power The supply working customer-specific a cell sustainable the significant The fuel corporation is active of prominent prime initial cell region. to a primary as backup batteries.

small The logistics offers and gaseous in utilization as a hydrogen, X/X storage comparable methanol of the of enhancing safety. footprint, diesel occupying about space stand with only transportation, out Serene fuel Serene liquid of using fuel efficiency cell compared a generator. Advent's carrier terms required therefore operational hydrogen fuel cells typical Advent's advantages by stacks to their

Serene Beyond and environmental supply environmental power in across uninterrupted locations. terms reduced an cells their provide emissions, fuel diverse advantages conditions geographical of

eMethanol. Systems, battery-only a boats, providing to range for of conventional and application. at leisure vessels, vessels. solutions integrate biomethanol synergy combination Power significantly a from a High-Temperature with Exchange not and power for a or battery Systems battery, than of compact the Serene serves clean cells, alternative a for small designed in and Power This auxiliary compact company's Also including Advent maritime on source Show, range generators, as fulfill inland also methanol, maritime but the the smaller unveiled primary Proton Monaco primary fuel Serene fuel Membrane efficient cell replaces the requirements Yacht operating traditional configuration power diesel vessels, with on its wide smaller unit sailboats, resulting September, power of for river ferries

of energy distribution reach methanol technology, solutions robust safe cost-effective Advent's storage overall vessels efficiently can the medium fuels, for offer and establishing up efficiency, supply reformer. on fuel and Power hydrogen as existing efficient infrastructure high conventional is and XX%. superior ports. vessels for comparable Systems excels optimal Leveraging option. availability purpose-built a they with as Moreover, Methanol fuel generate advantage with it various to at power through shore a convenient Power releasing and Additionally, heat, significantly Serene are High-Temperature fuels. which while boosting hydrogen standout at delivery offers loads to a Systems catalytically to and electricity Serene network auxiliary temperatures, power storage wide carrier, Operating supporting a producing PEM performance larger capacity for patent maritime

under Common the in provide for clean group to and EU-ratified I the of finalize an Projects I HiPo of of efficiently. commitment had of for President opportunity Green the resolute on hydrogen is funding projects HiPo dialogue, the bring European Greek for the European time to at execute HyXTech. the the Green Let that project, Ursula chaired the I Commission, length the reiterating the by on Advent's project on the endorsed Interest Leyen, Advent's der in European taken von Important me Commission's coordination technology, update review transition IPCEI October, also state now addressed progress to project.

production the securing initiatives XX member Commission collectively notification state development, High-Temperature electrolyzer June following the over states. reported fuel up HiPo a million length EUR XXXX, and XXX.X of European systems of power the is XXXX, Greek In HiPo project Green on amongst PEM aid Green and HiPo cells, focuses The ratified green IPCEI project, HyXTech, project The XX Advent's production officially the hydrogen, and under for by July design state Green prepared the in funding by to project. of respectively. the total the of

sustainable in Located Kozani serve from over installed cell already to in infrastructure. contributing crucial a fuel cells The electrolyzers, intended as as economy energy a in region's role Western transition environmentally generators replacing providing diesel in coal-based telecommunications economic model. significantly to is project and the more is the worldwide, development. a expected hub has a to state-of-the-art Kozani, High-Temperature play harmful and economic Macedonia critical Greece, region PEM facility and such the X,XXX fuel for communications sectors to Advent clean to production systems

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We on time. will an updates at appropriate HiPo further provide Green

well on positioned consolidated ever-increasing with new address in operations focus to continuing of energy, the advantage key and our is and technologies take opportunities. Advent advantage to clean

enabling advanced highly a to and fossil on help greater economy, reliance security fuels economies. have the one reduce communities provide we that portfolio product energy on that's focused can far Finally, green and

Kevin I CFO, our to With over Kevin? would hand Brackman. to that, like

Kevin Brackman

Thank you, good Vassili, and everyone. morning,

the primarily R&D of to million and $X.X of in Energy. the delivered million our third We businesses grants each as costs development in of cooperative a quarter, our Turning agreement the from $X.X of financials. million. expenses to for in were and as incurred of revenue total third R&D our well income Department $X.X quarter million, research $X.X with related

increase third expenses our expenses of with $X.X in Park new expenses $XX for selling related quarter. facility million, R&D million, expenses, primarily a in total increase Mass. an the were year-over-year to $X.X Hood were in and Charlestown, Administrative million Combined operating

includes were the facility. company's final $X.X the for in loss reserves of credit QX of Park Hood June XX, Lincoln cash as from which was raised of $X.X million $X.X Capital, of a Net or a million September XX, million line of and per from cash XXXX, $XX.X $X.XX of Park equity with build-out the million $X.X decrease share. payment Unrestricted million

operations be support existing for the planned months. Our not projected operating flows to next cash XX and cash are expected balances to sufficient

funding an the Park, year million capital. potential credit X-year of in the April access of pending line continue from which In an for over with seek other Green capital agreement we finalized addition us to of equity this to up $XX HiPo project, We gives sources term. the to Lincoln

utilization of prohibited is line the However, stock share. this if price equity below $X.XX closes credit of our per

raised equity this million As $X.X the line of quarter in credit. earlier, we mentioned I using third

up cash of this October, available and collected contract intend month Wainwright million as $XX under also compared finished the the new equity we of defense we during available XX. We through million October set We a million of stock to cash, program utilizing moving which the the at-the-market H.C. million prepayment an up as forward. In continue of under $X.X month to September facility sell agent, sales to ATM company's with of began of utilizing this with October and facility may $X.X the agent. common $X the

our continue possible. will any reduce capitalize costs and manage cost structure opportunities on closely to to We where

our Let of has strong turn opportunities. now me to a Advent outlook. pipeline

difficult for be not not know, HiPo As long-term yet Green income in this Due back not revenue hand revenue or for remarks. delayed. and all these will the of because could to call. With business due closing grants nature transpire XXXX our for timing will state Advent's to not contract we that are our from however, may Vassili beyond to on may aid predict. we has providing model, to commenced, the I be for be every Opportunities materialize factors outlook the control. factors pipeline that, an and Due funding to also can of opportunity

Vasilis Gregoriou

forward Advent advanced Advent has key High-Temperature require informed company, you that Thank products. keeping of you, look PEM energy. and materials clean its is clean energy Kevin. business, the significant innovative for system opportunities growing products technology, technology We fuel and a sectors developments. developing cell to we're for

the would the I now will turn you thank open to much. like today. the I for from you Thank questions back for analysts. line all to joining company's us to operator very

Operator

our from we'll And & Sean take Partners. Instructions] first with [Operator question Hannam Urquhart

Sean Urquhart

our just be in going constraint given capital what allocation this of would into from look interesting the you does next understand side, of And is at terms and year, the I to projects impact your think sort how different strategic in areas? mix at it Are that? also U.S.? looking segments impact the down that looking specific of is you're it by different toning Or versus EU -- currently does at market? product you does regions, And across impacted that the into

Vasilis Gregoriou

you for question. Yes. Sean, the thank

and thing the the grow will, been very we with presentation our in you said that technological here make the know than to the and audience, say we've consolidated, same us, for very down chip our are all close used the been diligently, very slower we blue I the plane chance also for relation you is are IPCEI As have will same and when are we're level. The most obviously, if already saw the recent fly now, differences very because really in us now project, many these technologies we the contribution which thought. and you key and a talked the very with relationships. it's have we automotive have the going maritime. right? go but in hydrogen general these going And Airbus, important very, it's to We So technology, that to sectors, to from -- difference, much about there you organizations pretty sectors working they

to have a mind, However, deal We dealing in customer. don't we're we've done state. we with And do. the keep everything with

site. the purchased we So

We scheduled R&D work. the have

with and Greek that that for this. announce we some and will the others BASF strategic patience have waiting actually we that's go time. And we're agreements the needed to show have have situation to like appropriate the we state the announced and We a in with through resolute process, the

For away on sure, that. a going not we're to like big ground walk

when much the But cash determine we're a way, in in that will, moving right direction. going So to go very overall, we're flow-positive.

at think way. that now level job. finish here tremendous the in in And good a bring very the operations and to need was I to cash continue done a these we we've the partnerships basically

Sean Urquhart

on a Just follow-up that.

orders next year, focusing and sort you that at environment of on purchase looking execute? to the you do that think difficult and how orders given mitigants sure make make of can sort that tends [indiscernible], around I can sure the chain through specifically, against just into supply key hydrogen those going see the the Advent for sector deliver you

Vasilis Gregoriou

geopolitical is the and cost uncertainties the COVID what customers. primarily capital. it deliver that do and made, true to got to we there our Yes, in the also say, increases we to, stuff to think, from with do cost situation products the the all of you we've is in [indiscernible] as order have I But that

not is effect. determining [ there in the think to my I step. But So be, going an it's opinion, rate ]

our do we to mentioned as then of problems stuff have question We they will I care the -- are that take first the and part first, of your in arise.

Operator

question have [Operator Hannam We Instructions] a do & Roger Partners. Bell from with

Roger Bell

Apologies, project and I again about Congratulations funding with Airbus. from project wanted on to the line mute. on the the the I Green HiPo of was drop IPCEI. just ask

commence do and time and drawing frame that down, revenue into you that to bring start that production what's from when So the generating project that start project?

Vasilis Gregoriou

will, just almost for we going sign, guess from, waiting right, I very it out, how because We're to waiting now. fast say, time ] X, mean shell [ you I it we're right. a year. fast you're to we're Yes, go let's when if for

So ready. we're

also the follow. this, with flow cash So will

So we're with state. said, dealing the as I

mood that the whole [ must the show We if will. positive. say respect line process, to ]. to the over is necessary But you have the I

after [indiscernible]. have received So we we move fast will

Roger Bell

you of Are customers. the funding find partnerships? forward? kind obliged track? downstream to partnerships sort sort the you move general? are providing of sort -- are structure potentially of royalty a the relationships would you're And in if with and your down you potential taking those of follow-up be some you in working that see the the those of you you -- sort equity are then And of sort and general partners of just Or providing -- Is do sort holder how further of the cash of on sort expertise technology would in they

Vasilis Gregoriou

we and, you where now now, the you particular above. the tremendous I do, that Yes, accelerate We're is. what okay? in bring tell this what with okay, want lot should the be. say big they that about x markets, keep much are of cannot their knowledge markets, us obviously, less since capital instead of consolidated technology talking These automotive. lot right because talking themselves, right? marine. We're us to markets. have think all right amount are about all about both track bring of taking And the we big of a to people like huge where So I'll technology, we project we the that take we we We're have partners okay? Right and talking big mind of time, And a to tied of it aerospace.

basically, are I for think We them. do And to Now you that. a to through we're tomorrow. to going I true it, we now, us, do we to the we so like this, model us did say we'll [ in it our distributors you've we're sell than the to do We okay? our Then things sooner need we said license to systems, Eventually, that's ]. alluded I think seen, to far. later. And DAs to and right top hope have manufacturers, license and it as addition company and going like resellers major we and try complete model.

the marine telecom, what large-scale And we from with the But products, have is. where I know partnered from Energy we Genus from construction, systems. final seen starting ] think we path starting for [ start you've

see everybody it. proud next Monaco the of boat Sanlorenzo waiting that the is Show, we're in have and to We very

fingers our the everything keep we So right. get crossed we

in only in of the have German of course, The lot Smart installation, but the Globe And not then, with thing also same and Philippines. Asia, telecom, the we a police.

because So automotive very the to technology And we're will. moving to aerospace in that will end, you a gross if and you lot more much for cell the along if would in like at from fuel license margins systems or the are this is license get that the of we understandable. margins, than the look route, very, big, the we knowing margin revenue giants, very and well definitely

plan. our that's So

Operator

does Thank that Conference and conclude Third your And everyone, you for now you you. today, may Quarter participation disconnect. Technologies Thank Advent Call.

Advent Technologies (ADN) 14 Nov 232023 Q3 Earnings call transcript