Eos Energy Enterprises, INC. 10-Q Filing

Ticker: EOSE · Form: 10-Q · Filed: Aug 6, 2024 · CIK: 1805077

Sentiment: neutral

Filing Stats: 4,746 words · 19 min read · ~16 pages · Grade level 19.9 · Accepted 2024-08-06 16:22:27

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 4 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 4 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and S ix Months Ended June 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Shareholders' Deficit for the Three and S ix Months Ended June 30, 2024 and 2023 7 Unaudited Condensed Consolidated Statements of Cash Flows for t he Six Months Ended June 30, 2024 and 2023 9 Notes to the Unaudited Condensed Consolidated Financial Statements 11 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1a.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4 . Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50

Signatures

Signatures 53 1 Table of Contents FORWARD-LOOKING INFORMATION All statements included in this Quarterly Report on Form 10-Q ("Quarterly Report"), other than statements or characterizations of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements appear in a number of places in this Quarterly Report and include statements regarding the intent, belief or current expectations of Eos Energy Enterprises, Inc. Forward-looking statements are based on our management's beliefs, as well as assumptions made by and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: changes adversely affecting the business in which we are engaged; our ability to forecast trends accurately; our ability to generate cash, service indebtedness and incur additional indebtedness; our ability to raise financing in the future; our customer's ability to secure project financing; risks associated with the Credit Agreement (defined below), including risks of default, dilution of outstanding Common Stock, consequences for failure to meet milestones and contractual lockup of shares; the amount of final tax credits available to our customers or to Eos Energy Enterprises, Inc. pursuant to the Inflation Reduction Act; uncertainties around our ability to meet the applicable conditions precedent and secure final approval of a loan in a timely manner

- Financial Information

Part I - Financial Information EOS ENERGY ENTERPRISES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 52,454 $ 69,473 Restricted cash 2,625 3,439 Loan commitment assets 76,091 — Accounts receivable, net 4,561 3,387 Inventory, net 17,839 17,070 Vendor deposits 5,458 7,161 Contract assets, current 11,107 6,386 Prepaid expenses 1,288 1,082 Grant receivable 1,493 3,256 Other receivables 7,500 7,500 Other current assets 3,130 3,577 Total current assets 183,546 122,331 Property, plant and equipment, net 50,595 37,855 Intangible assets, net 260 295 Goodwill 4,331 4,331 Operating lease right-of-use asset, net 3,425 4,033 Long-term restricted cash 2,500 11,755 Other assets, net 4,119 5,892 Total assets $ 248,776 $ 186,492 LIABILITIES Current liabilities: Accounts payable $ 24,112 $ 20,540 Accrued expenses 34,747 32,332 Operating lease liability, current 1,657 1,496 Long-term debt, current 3,041 3,332 Contract liabilities, current 4,814 3,070 Other current liabilities 117 100 Total current liabilities 68,488 60,870 Long-term liabilities: Operating lease liability 2,478 3,350 Long-term debt 1,068 88,002 Notes payable - related party 149,172 112,525 Contract liabilities, long-term 4,388 3,540 Warrants liability 32,502 27,461 Warrants liability - related party 141,296 — Other liabilities 86 1,544 Total long-term liabilities 330,990 236,422 Total liabilities 399,478 297,292 4 Table of Contents EOS ENERGY ENTERPRISES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) June 30, 2024 December 31, 2023 COMMITMENTS AND CONTINGENCIES (NOTE 16) Series A-1 Preferred Stock, $ 0.0001 par value, 59 shares authorized, 59 shares issued and outstanding 40,117 — SHAREHOLDERS' DEFICIT Common stock, $ 0.0001 par value, 600,000

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