Q3 2023 Advent Technologies Holdings Inc Earnings Call
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. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session opened to advent analysts.
Speaker 1: 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. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session open to ADVENT's analysts.
Speaker 1: On the call today, we are joined by Dr. Vasili Gregorio, ADVENT's Chairman and CEO and Kevin Brackman, ADVENT's CFO . Before we begin the prepared remarks, we would like to remind you that ADVENT issued a press release announcing its third quarter 2023 financial results shortly before market open today. You may access the materials in the investor relations section of the company's website, www.advent.energy.
On the call today, we are joined by Dr. Bacilli, Gregorio Atkins, Chairman and CEO and Kevin Brackman I'd been CFO.
Before we begin our prepared remarks, we would like to remind you that advent issued a press release announcing its third quarter 2023 financial results shortly before market opened today.
You may access the materials on the Investor Relations section of the company's website Www Dot advent dot energy.
Speaker 1: I would also like to remind everyone that during this conference call, Advance Management will discuss forecasts, targets, and other forward-looking statements regarding the company's future, customer orders, and the company's business outlook that are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements.
I would also like to remind everyone that during this conference call advance management will discuss forecasts targets and other forward looking statements regarding the company's future customer orders in the company's business outlook that are intended to be covered by the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 for forward looking statements.
While these statements represent management's current expectations and projections about future results and performance as of today.
Speaker 1: While these statements represent management's current expectations and projections about future results and performance as of today, events actual results are subject to many risks and uncertainties that could cause actual results to differ materially from those expectations.
Actual results are subject to many risks and uncertainties that could cause actual results to differ materially from those expectations.
Speaker 1: In addition to any risks highlighted during this call, important factors that may affect ADVENT's future results are described in its most recent SEC reports filed with the Securities and Exchange Commission, including today's earnings press release.
In addition to any risks highlighted during this call important factors that may affect advent future results are described in its most recent SEC reports filed with the Securities and Exchange Commission, including todays earnings press release.
Speaker 1: Except as required by applicable law, the company undertakes no obligation to update any of these forward-looking statements for any reason after the date of this call. Lastly, information discussed on this call concerning the company's industry competitive position in the market in which it operates is based on information from independent industry and research organizations, other third-party sources, and management estimates.
Except as required by applicable law. The company undertakes no obligation to update any of these forward looking statements for any reason after the date of this call.
Lastly, information discussed on this call concerning the company's industry competitive position in the market in which it operates as based on information from independent interest rate and research organizations. Other third party sources and management estimates.
Speaker 1: Management estimates are derived from publicly available information released by independent industry analysis and other third-party resources as well as data from the company's internal research and are based on assumptions made upon reviewing such data and with knowledge of such industry and markets with which it believes to be reasonable.
Management estimates are derived from publicly available information released by independent industry analysis, and other third party resources as well as data from the company's internal research and are based on assumptions made upon reviewing such data and with knowledge of such industry end markets with which it which it believes to be reasonable.
Speaker 1: These assumptions are subject to uncertainties and risks which could cause results to differ materially from those expressed in the estimates.
These assumptions are subject to uncertainties and risks, which could cause results to differ materially from those expressed in the estimates.
Speaker 1: Please note that this call is being recorded and kicking off the call will be Dr. Vasily Gregorio. Dr. Gregorio, I'll now turn the call over to you.
Please note that this call is being recorded and kicking off the call will be Dr. Epithelia Gregorio Dr. Gregoire, who I'll now turn the call over to you.
Speaker 2: Thank you, Operator. Good morning to everyone listening in, and thank you for joining us on Advent's third quarter 2023 earnings call. On today's call, I will provide an update on the business. I will then hand over to Kevin, who will review our financial performance and outlook in more detail.
Thank you operator, good morning, everyone listening in and thank you for joining us for <unk> third quarter 2000.
Earnings call.
This call I will provide an update on the business.
And then kick it over to Kevin who will review, our financial performance and outlook in more detail.
Speaker 2: In my last update, I highlighted that Advent was consolidating its business operations and was focusing on its core sector, where high-temperature FEM technology is particularly well suited.
And my last update highlighted that.
Holiday to these business operations.
Focusing on quarter sector, where it's high temperature from technology is particularly well suited.
Speaker 2: Through implementing this strategy, we achieved a number of milestones and contract wins since the start of the third quarter and I will discuss shortly.
Can you imagine strategy achieved a number of milestone and contract wins since the start of the third quarter and I will discuss shortly.
Speaker 2: We remain focused on expanding and executing our commercial pipeline with a view to embedding our technology and portfolio in this key power sector.
We remain focused on expanding and executed our commercial pipeline.
The view to expanding our technology portfolio.
Key power sectors.
Speaker 2: We believe that the future demand for Arden's high-temperature PEM technology and related products will create significant opportunity, and we believe Arden will be ideally positioned to capitalize on this through suitable partnerships.
We believe that the future demand for iPhone sky temperature technology and related products.
Okay.
And we believe that it will be ideally positioned to capitalize on this through suitable partners.
Speaker 2: We look forward to growing our commercial activities and achieving long-term profitable growth. I will now give an overview of...
We look forward to growing our commercial activities and achieving long term profitable growth.
I'll now give an overview of our recent business updates.
Speaker 2: Last week, we were excited to announce the signing of a term sheet with Airbus, a global leader in aeronautics, space and related services, for a joint benchmark project regarding an optimized ion-pair membrane-electrode assembly for hydrogen fuels.
Last week, we were excited to announce the signing of a denim suit with Airbus a global leader in Aeronautics space and related services for <unk>.
Joined benchmark projected the garden and optimized.
Remember in the electrical assembly for hydrogen exclusive.
Speaker 2: Airbus will provide financial support to the project and its extended knowledge of the aviation industry.
Airbus will provide financial support to the project and its extensive knowledge of the aviation industry.
Speaker 2: ADVENT will invest in people, materials, hardware, and third-party research centers to contribute to the goal of the project.
Then we'll invest in people materials hardware and third party research centers to contribute to the goal of the project the.
Speaker 2: The multi-million dollar collaboration will take place over two years.
The multimillion dollar collaboration will take place over two years.
Speaker 2: A contract based on the signed term sheet is expected to be signed by the end of 2023 and the project will commence immediately thereafter in 2024.
Based on the science is expected to be signed by the end of 'twenty three and the project will commence immediately thereafter in 2024.
Speaker 2: The goal of the project is to accelerate the development of advanced MEA and benchmark the ion-pair MEA against aviation requirements and current and expected technological limits.
The goal of the project, so accelerated developmental badlands MBA and benchmark.
Against that the ACO requirements and current and expected technological lehman's.
Speaker 2: High-temperature PEM MVAs, operated at temperatures higher than 180°C, aim to solve one of the largest challenges in aviation fuel use, which is thermal management.
High temperature <unk> operated a temperature higher than 180 degrees aim to solve one of the largest <unk> in the us which is that in my mind.
Speaker 2: High-temperature fuel cells allow increased performance, increased passenger carrying capability, and increased range compared to low-temperature fuel cell technology.
High temperature fuel cells allow increased performance increased passenger carrying capability and increase of days compared to low temperature fuel cell technology.
Speaker 2: Aden believes that high temperature payment is a superior option not only for aviation, but also for heavy-duty trucks, the automotive industry, and maritime use.
<unk> believes that high temperature is a superior option not gone forever.
But those are for heavy duty trucks.
<unk> and maritime.
Speaker 2: In September , through our wholly owned subsidiary, Livermore California, we secured a new $2.2 million contract with the U.S. Department of Defense for portable power systems.
For our wholly owned subsidiary Livermore, California, we secured a new 2.2 million dollar contract with the U S Department of defense portable power system.
Speaker 2: This milestone achievement comes under the General Technical Services' prime contract and will play a crucial role in supporting the demand and mission requirements of the U.S. Army. This contract is the continuation of a series of past contracts with the U.S. Department of Defense, and its primary objective is to further optimize ADMES proprietary HB50 portable fuel cell system by integrating a renovative Ion-Pair EMI technology.
This milestone achievement comes under the general taken on Saturday as Brian pointed out and will play.
Played a crucial role in supporting the demand information requirements of the U S. R V.
This contract is a continuation of a series.
Contracts with the U S Department of Defense and its primary objective is to further optimize August 30, <unk> order book fuel cell system by integrating our innovative iron Barry made technology.
Speaker 2: On the completion of this new 12-month contract, ADREN and the U.S. Department of Defense aim to reinforce their long-term collaboration by focusing on the manufacturing process of the enhanced HB50 fuel cell system that will enable high-volume production manufacturing capacity.
On the completion of this new 12 month contract.
The U S Department of defense.
Aim to reinforce our long term collaboration by focusing on the manufacturing process of the engine.
<unk> fuel cell system that will enable high volume production or manufacturing capacity.
Speaker 2: from the heart of the form, the heart of the fuel cell, and their performance determine the lifetime, efficiency, weight, and to a large extent, the cost of the anti-electrochemical product.
EMEA from the hub forms that how does the fuel cell and every four months determine the lifetime.
Z wave and to a large extent the cost of the and electrochemical pull on the product.
Speaker 2: Advanced ion-pair EMEA technology is anticipated to significantly enhance HB50's performance, resulting in higher power density and improved combat packaging, making it ideal for off-grid field applications, including military and rescue operations.
<unk> technology is anticipated significantly instead.
This performance resulted in higher power density and improved packaging, making it ideal for off grid applications, including military and rescue operations.
Speaker 2: Since 2020, we've been actively refining the HP50 fuel cell system to create a highly portable and efficient power supply suitable for on-the-move battery charging and direct power supply for various US Army applications.
Since 2020, we've been actively refine and <unk> system to create a highly portable and efficient power supply suitable for them to move battery charging and the X parts supply to various U S iron applications.
Speaker 2: Through rigorous development efforts, the size and weight of the original 50-watt fuel cell system has been significantly reduced.
Through rigorous development that affords the size and weight of the original 50 wide fuel cell systems has been significantly reduced.
Speaker 2: culminating in successful field tests in 22 and 23, with the final technical report reinforcing its operational suitability.
Nathan and successful field test in 'twenty, two and 'twenty three with the final technical report the reports in its operations with the ability.
Speaker 2: The HB50 power system can be fueled by biodegradable methanol provided near silent power generation with clean emissions.
The HB 50 power system can be skewed by biodegradable Massimo provide them near silent power generation with cleaner.
Patients its comeback design allows us to simplify our radar and satellite communication about IP.
Speaker 2: Its compact design allows it to simply power radio and satellite communication apparatus, remote surveillance systems, laptops, and other battery-charging needs.
Remote surveillance systems laptops, and other battery charging needs.
Speaker 2: system's unique thermal feature enables it to operate within a wide ambient temperature range from considerably below freezing to at least 40 degrees Celsius, therefore ensuring reliability in challenging conditions and climates. HB50's adaptability to run on methanol as a hydrogen carrier allows it to operate at a fraction of the weight of traditional military-grade batteries.
The system's unique settlement feature enabled us to operate within our winder.
While the ambient temperature range from considerably below freezing for at least 40 degree sensors, therefore, ensuring reliability and challenging conditions in climates HB 500 stability.
That alone is a hybrid of the Caribbean.
How's the deliberate at the fraction of the weight.
Military grade batteries.
Speaker 2: This factor is aligned with the U.S. Department of Defense pursuit of lightweight and highly portable fire solutions for their electronic needs.
This factory is aligned with the U S Department of defense pursuits of lightweight and highly portable power solutions for the electronic needs.
Speaker 2: Also in September , ADMEN secured a significant expansion order contract with a prominent fuel cell integrator operating in the Asian market.
Also in September oven secured significant expression northern corridor with a prominent fuel cell integrator operating in the market.
Speaker 2: Under the terms of this agreement, ADEL will provide its innovative e-fuel powered serine fuel cells tax for incorporation and power application within the leisure sector in the region. The contract has a total initial value of $1.3 million. The supply chain is projected to remain active throughout 2024 in accord with the customer's specific timetable.
The depth of this agreement <unk> will provide innovative if you're part of a series of fuel cell stacks when corporate Ashwin in power application within the leisure section sector in the region with a contract as a total initial value of $1.3 million the supply chain as projected.
It may not give us throughout 2024 in a quarter with a customer specific timelines.
Speaker 2: The primary application of advanced fuel cell stacks is to serve as a sustainable prime and backup power source in small cabins working in conjunction with batteries.
Brian application Nevadans June stocks is decided as a sustainable retirement backup power source and small companies working in conjunction with partners.
Speaker 2: The utilization of atmospheric fuel cell stacks using liquid methanol as a hydrogen carrier fuel offers advantages in terms of transportation, logistics, and storage efficiency compared to gaseous hydrogen, therefore enhancing operational safety.
So utilization of vitamins in fuel cell stacks using liquid methanol hydrogen carrier Pew Wolters outbound business in terms of transportation logistics and started the PCC compared to gaseous hydrogen therefore, it and Ken simple, but excellent safety.
Speaker 2: Admin Serene Fuel Cell stands out with their small footprint, occupying only about a third of the space required by a typical comparable diesel generator.
Atmosphere in fuel cells stands out with a small footprint occupying only about a third of the space required by a difficult comparable diesel generator.
Speaker 2: Beyond their environmental advantages in terms of reduced emissions, their in-fuel cells provide an uninterrupted power supply across diverse environmental conditions and geographical locations.
Everybody in the metal advantages in terms of reduced emissions saving fuel sales provide an uninterrupted power supply across diverse environmental conditions and geographical locations.
Speaker 2: Also in September , at the Monaco Yacht Show, ADBEN unveiled its range of serene power systems resulting from the synergy of the company's high temperature proton exchange membrane fuel cells with a compact battery unit designed to fulfill both primary and auxiliary power requirements for maritime vessels.
Also in September at the Monocle Yacht show oven and built into the range of 75 systems resulted from the synergy of the company's high temperature proton exchange membrane fuel cells with a compact battery unit design.
Designed to fulfill.
And auxiliary power requirements for maritime vessels. So in power systems integrators come back by 30 to deliberately smaller than for additional battery solutions with a small cell configuration operate in a methanol biomass or email.
Speaker 2: Terrain power systems integrate a compact battery to deliberately smaller than traditional battery only solutions with a small fuel cell configuration operating on methanol, biomethanol, or e-methanol.
Speaker 2: This combination not only serves as a primary power source for smaller vessels, including leisure boats, sailboats, ferries, and inland river vessels, but also replaces conventional diesel generators, providing a clean and efficient power alternative for a wide range of maritime applications.
This combination not only serves as a private power source for smaller vessels.
The leisure boats sailboats ferries and many of them leave their vessels, but also replaces conventional diesel generators, providing a clean and efficient power alternative for a wide range of maritime applications.
Speaker 2: Additionally, sharing power systems offer a vast power capacity for supporting auxiliary loads on larger vessels and supply convenient shore power solutions for vessels at port.
Additionally, certain power systems offer robust spark I pod capacity for supporting auxiliary loads on larger vessels and supply convenient short power solutions for vessels of ports leveraging admins patent high temperature technology share in power systems are purpose built for optimum performance with virus fuels.
Speaker 2: Leveraging advanced patent high-temperature fan technology, serene power systems are purpose-built for optimal performance with various fuels. Operating at high temperatures, they efficiently generate electricity while producing heat, significantly boosting overall efficiency, which can reach up to 85%.
Oh, great and Hi, Ben.
<unk> the efficiently generate electricity, while reducing seat significantly boost another of efficiency, which can reach up to 85%.
Speaker 2: Methanol is a standout energy delivery and storage medium and excels as a superior hydrogen carrier, releasing hydrogen catalytically through a fuel reformer. Moreover, methanol offers the advantage of efficient storage and wide availability for existing infrastructure, with a distribution network comparable to conventional fuels, establishing it as a safe and cost-effective maritime fuel option. Let me now provide an update on the
Methanol is a standout vendors the delivery and startup medium and acceptance as a superior hydrogen carrier releasing hydrogen catalytic literate fuel reformer. Moreover, methanol offers the advantage of efficient storage and wind up availability for existing infrastructure with a distribution network comparable to conventional.
Hughes, establishing it as a safe and cost effective maritime oops, let.
Let me now provide an update on the Greenfield project at Central Coordination group for the important projects of common European interest in hydrogen technology and in October and the European Commission's clean transition dialogue I had the opportunity to bring president of the European Commission portion of our below the line on the progress of projects in there.
Speaker 2: I chair the Coordination Group for the Important Projects of Common European Interest in Hydrogen Technology, and in October , at the European Commission's Clean Transition Dialogue, I had the opportunity to bring President of the European Commission Ursula von der Leyen on the progress of projects endorsed by the EU under the IPCCI High Protect. I also addressed the length of time that is taken for the Greek state to finalize funding for adventure in the EU ratified Green Deal.
First by review under the ICC II hybrid debt I also addressed the length of time that is taken for the Greek state to finalize finding broadband EU ratified.
Speaker 2: HIPAA project reiterated Adnan's resolute commitment to executing the project efficiently.
People project reiterated Atlanta resident.
Commitment to executing the projects efficiently.
Speaker 2: The Green Hippo Project is among the 41 initiatives under IPCI High-to-Deck, collectively prepared and reported by 16 member states.
The <unk> project is among the 41 initiatives under <unk> <unk>.
Technically prepared reported by 15 member States in July 2020 to the European Commission officially ratified documents Green Chemo project following notification by the Greek State in June 2022 secured in total space a funding of up to $782 1 million euro over the length of the project.
Speaker 2: In July 2022, the European Commission officially ratified the Athens Green Heap of Projects, following a notification by the Greek state in June 2022, securing total state-aid funding of up to 782.1 million euros over the length of the project. The Green Heap of Projects focuses on the development, design and production of high-temperature pan-fueled cells, electrolyzer systems for the production of power and green hydrogen.
The Greenfield project focuses on the development design and production of <unk> seven Electrolyze It systems for the production of power and Green hydrogen.
Expected.
Speaker 2: Located in Kozani, Greece, the project is expected to play a crucial role in transitioning the Western Macedonia region from a coal-based economy to a more sustainable economic model. A state-of-the-art facility in Kozani is intended to serve as a production hub for fuel cells and electrolyzers, contributing significantly to the region's economic development.
Located in <unk> in Greece, and the project is expected to play a crucial role in transitioning into western Macedonian a return from a cold based economy to a more sustainable economic model and state of the Alpha Syn <unk> is intended to serve as a production cut procurement says in the provider contributed significantly reduced economics.
Uh huh.
Speaker 2: ADVENT has already installed over 1,200 high-temperature pan-fueled cell systems worldwide, replacing environmentally harmful diesel generators and providing clean energy to sectors such as telecommunications and critical communications infrastructure.
<unk> is already installed over 12 content of high temperature Banfield sub system worldwide, replacing environmentally harmful diesel generators and providing clear negative.
Sectors, such as telecommunications and critical communications infrastructure.
Speaker 2: Moreover, ADBEN is expected to lead the way in electrifying the transportation sector with these fuel cell systems that will be produced in the Kozani region as part of the Green Hippo project.
Moreover, advent is expected to lead the way in electrifying the transportation sector with these pure incentive systems that will be producing that rosanna region as part of the Greenfield project.
Speaker 2: Adven is working closely with the Greek state to help finalize its internal process.
<unk> is working closely with the Greek state to help finalize is internal process and procedures. So that the funding programs people can commence we will provide further updates on grant Cuba is an appropriate time.
Speaker 2: so that the funding for Green People can commence. We will provide further updates on Green People at an appropriate time.
Speaker 2: Adven is well-positioned to take advantage of the ever-increasing focus on clean energy. We're continuing to advantage our technologies and consolidate our operations to address new and key
<unk> is well positioned to take advantage of the ever increasing focus on clean energy, we're continuing our branded center technologies and consolidate their operations to address new and key opportunities.
Speaker 2: Finally, we have a highly advanced product portfolio that's focused on enabling a green economy, one that can help reduce the reliance on fossil fuels and provide far greater energy security to communities and economies. With that, I would like to hand over to our CFO , Kevin Brackman. Kevin?
Finally, we have a highly advanced product portfolio that is focused on enabling greener economy. One that can help reduce the reliance on fossil fuels and provide product greater energy security to communities and economy with that I would like to handover to our CFO, Kevin Brackman Kevin.
Thank you Sally and good morning, everyone.
Speaker 3: Turning to our financials, we delivered revenue of $1.3 million in the third quarter and income from grants of $0.5 million for a total of $1.8 million.
Turning to our financials, we delivered revenue of $1 $3 million in the third quarter and income from branch of zero point $5 million for a total of $1 8 million.
Speaker 3: R&D expenses were $2.1 million in the third quarter, primarily related to R&D costs incurred in each of our businesses, as well as our Cooperative Research and Development Agreement with the Department of Energy.
R&D expenses were $2 1 million in the third quarter, primarily related to R&D costs incurred in each of our businesses as well as our cooperative research and development agreement with the department of energy.
Speaker 3: Administrative and selling expenses were $8.9 million in the third quarter. Combined with R&D expenses, total operating expenses were $11 million, a year-over-year increase of $0.3 million, primarily related to an increase in expenses for our new Hood Park facility in Charlestown, MA.
Administrative and selling expenses were $8 9 million in the third quarter combined with R&D expenses total operating expenses were $11 million a year over year increase of 0.3 million primarily related to an increase in expenses for our new Ed Park facility in <unk>.
Charlestown Nash.
Speaker 3: Net loss in Q3 was $11.8 million or $0.20 per share.
Net loss in Q3 was $11 $8 million or <unk> 20.
Per share.
Speaker 3: Unrestricted cash reserves were $3.7 million as of September 30, 2023, a decrease of $6.4 million from June 30, which includes $2.1 million of cash raised from the company's equity line of credit with Lincoln Park Capital.
Unrestricted cash reserves were $3 7 million as of September 32023.
Decrease.
$6 4 million from June 30, which includes $2 1 million of cash raised from the company's equity line of credit with Lincoln Park capital.
Speaker 3: and a final payment of $0.7 million for the build-out of the Hood Park facility.
And a final payment of zero point $7 million for the build out of the hood parts facility.
Speaker 3: Our existing cash balances and projected operating cash flows are not expected to be sufficient to support planned operations for the next 12 months.
Our existing cash balances and projected operating cash flows are not expected to be sufficient to support planned operations for the next 12 months.
Speaker 3: In addition to the potential funding from the pending Green Hippo project, we continue to seek other sources of capital.
In addition to the potential funding from the pending Green head. Both project, we continue to seek other sources of capital.
Speaker 3: We finalized an agreement in April this year for an equity line of credit with Lincoln Park, which gives us access up to $50 million of capital over the three-year term. However, the utilization of this equity line of credit is prohibited if our stock price closes below $0.50 per share.
We finalized an agreement in April of this year for an equity line of credit with Lincoln Park, which gives us access up to $50 million of capital over the three year term.
However, the utilization of this equity line of credit is prohibited if our stock price closes below <unk> 50 per share.
Speaker 3: As I mentioned earlier, we raised $2.1 million in the third quarter using this equity line of credit.
As I mentioned earlier, we raised $2 1 million in the third quarter using this equity line of credit.
Speaker 3: We also set up an at-the-market equity program with H.C. Wainwright as sales agent, under which we may sell up to 50 million of the company's common stock through the agent. We began utilizing this ATM facility during the month of October and intend to continue utilizing this facility moving forward.
We also set up an at the market equity program with HC Wainwright as sales agent under which we may sell up to $50 million of the company's common stock through the agent. We began utilizing this ATM facility during the month of.
<unk> and <unk>.
And to continue utilizing this.
<unk> moving forward.
Speaker 3: In October , we collected a $1 million prepayment under the new defense contract and finished the month of October with $3.1 million of available cash compared to the $3.7 million of available cash as of September 31st.
In October we collected a $1 million prepayment under the new defense contract and finished the month of October with $3 1 million of available cash compared to the $3 7 million of available cash as of September 30th.
Speaker 3: We will continue to manage our cost structure closely and capitalize on any opportunities to reduce costs where possible.
We will continue to manage our cost structure closely and capitalize on any opportunities to reduce costs where possible.
Speaker 3: Let me now turn to our outlook. ADVENT has a strong pipeline of opportunities. As we all know, however, not every opportunity in the pipeline will transpire due to factors that may be beyond ADVENT's control. Opportunities may not materialize or could be delayed. Due to the long-term contract nature of our business model, the timing of our revenue can also be difficult to predict.
Let me now turn to our outlook and that has a strong pipeline of opportunities as we all know however, not every opportunity in the pipeline will transpire due to factors that may be beyond that Vince control.
Opportunities may not materialize or it could be delayed.
Long term contract nature of our business model the timing of our revenue can also be difficult to predict.
Due to these factors and because state aid funding for Green Hippo has not yet commenced we are not providing an outlook for revenue and income from grants for 2023 on this call.
Speaker 3: We are not providing an outlook for revenue and income from grants for 2023 on.
Speaker 3: With that, I will hand back to Vasili for closing remarks.
With that I will hand back to the silly for closing remarks.
Speaker 2: Thank you, Kevin. ADBEN has significant opportunities for its high-temperature PEM technology, advanced materials, and fuel cell system products.
Thank you Kevin I've been has significant opportunities for its high temperature <unk> technology advanced materials and fuel cell system product.
Speaker 2: Adven is a clean energy technology company developing innovative products for key sectors that require clean energy. We look forward to growing the business and to keeping you informed of development. I would like to thank you all for joining us today. I will now turn back to the operator to open the line for questions from the company's analysts. Thank you very much.
<unk> clean energy technology company developing innovative products for key sectors that require clean energy, we look forward to growing the business and we'll keep you informed of developments I would like to thank you all for joining US today I will now turn back to the operator to open the line for questions from the comment as analysts. Thank you very much.
Yes.
Speaker 1: To ask a question on the phone lines today, please press star 1 on your telephone keypad. To remove yourself from the queue, that is star 1 again. We do ask that you please limit yourself to one and one follow-up, and we'll pause for a moment to
Thank you.
Ask a question on the phone lines today. Please press star one on your telephone keypad to remove yourself from the queue that is star. One again, we do ask that you. Please limit yourself to one and one follow up.
I'll pause for a moment to assemble the queue.
Speaker 1: We'll take our first question from Sean Urquhart with Hannon and Partners.
And we will take our first question from Sean <unk> with Hannon and partners.
Speaker 4: Hi, thanks for the presentation, Dr. Gregoriu, and just from our side, I think what would be interesting to understand.
Hi, Thanks for the presentation I'll talk to him Greg over to you and.
Just from our side I think what would be unusual thing Tom Patton.
Speaker 4: is given the capital constraint and going into next year, does this impact the strategic allocation in terms of how you look at your sort of projects in different regions, EU versus US, and does it also impact looking at the product mix that you're currently looking at across different segments of the market? Are you honing down into specific areas or is it impacted by that?
Given the capital constrained.
Going into next year.
Impact.
<unk> allocation in terms of how you look at yours.
Projects in different regions.
Thank you Ross.
Does it impact.
Looking at the product mix that youre currently across different segments of the mob.
Honing down into specific areas.
Goodbye.
Speaker 2: Yeah, something for the question is, you know, you already said that we've been working very diligently and we have.
Yes.
Thank you for the question as you know.
Already said that we have been.
Working very diligently and we have.
Speaker 2: blue-chip organizations that are close to us now in very key sectors, and these sectors are also very consolidated, if you will, all right? So we're going to grow these relationships, you saw the very recent relationship with Airbus, but for us it's very, very important.
Blue chip organizations that they are close to us now in very key sectors. In this sector is also very consolidated if you will right.
So we're going to grow these relationships you saw there.
Recent relationship with Airbus.
This is very very important.
Speaker 2: Because with our technology, we have a chance to really fly, you know, the hydrogen.
Because without a technology, we have a chance to really fly.
Hydrogen.
Play.
Speaker 2: Now, pretty much the same technologies used in automotive and maritime. And I say the same for the general audience. Obviously, there are many differences.
Pretty much the same technology is used in Automotives and maritime and I say the same Florida, Virginia are obvious obviously their menu differ.
Differences when you go down to that.
Speaker 2: technological level. The thing that will make the difference, and we have talked about it in our presentation here, is the...
Technological level.
The most.
I think we will make the difference and we have talked about in our presentation here is the.
Speaker 2: contribution from the IPCI project, which, you know, it's been.
That contribution from the <unk> project.
It's been Oh.
Speaker 2: going slower than we thought. However, we've done everything we have to do. And keep in mind, we're dealing with the state. We're not dealing with a customer. So we purchased the site. We have scheduled the R&D work. We have the.
Going slower than we thought however, we've done everything.
We have to do and keep in mind, we're dealing with the state.
With the customer so we purchased <unk> sites, which have scheduled R&D work with <unk>.
Speaker 2: strategic agreements with BASEF that we have announced, and with some others that we will announce the appropriate time. And we're waiting for the Greek state to actually go through the process. And we have to show the patience and resolute that's needed in a situation like this. For sure, we're not gonna walk away from a big ground like that. So that will, in a way, determine very much.
Strategic agreements with <unk>, which are announced and with some others that we will announce the appropriate time and we are.
Nathan for the Greek state to actually go through the process and we have to show the persons and resolute that's needed in situations like this for sure we're not going to walk away from that.
A big Grand like that so that will in a way.
Determined very much.
Speaker 2: when we're going to go cash-flow positive. But overall, we're moving in the right direction. I think we've done a tremendous job and we need to bring the cash in now to continue the operations at the level that we're here and basically, you know, finish these partnerships in a very good
We're going to cash flow positive, but overall.
We're moving in the right direction.
No.
Tremendous job and we need to bring the cash in now to continuing operations.
We're here.
Basically.
<unk> disease.
Partnerships and a very good way.
Speaker 4: Thank you very much. Just to follow up on that, I think looking at the purchase orders and going through into next year, just given the difficult environment around supply chains that's focusing on the sort of hydrogen sector specifically, how do you sort of see the key mitigants for Advent to make sure that you can deliver against those orders and make sure that you can execute?
Thank you very much.
Just to follow up a lot I think looking at the purchase order.
Into next year.
Just given the difficult environment around supply chain.
Focusing on missile of hydrogen sector, specifically, how do you sort of see the key.
For <unk> to make sure that you can deliver against those orders.
And make sure that if you can execute.
Speaker 2: Yeah, it is true that there is cost increases in the stuff that we made, I think primarily think a tale from COVID and all the uncertainties with the geopolitical situation and also the cost of capital. But we've got to do what we have to do in order to, as you say, deliver the products to our customers. So I think there is.
Yes, it is true that.
There is cost increases and the stuff that will make us and primarily.
David from Covid and all the uncertainties.
The geopolitical situation and also the cost of capital.
We've got to do what we have to do in order to as you say deliver.
Deliver the products to the customer so I think there is.
Speaker 2: an effect, but it's not going to be, in my opinion, the rate-determining step. We have to do the stuff that I mentioned in our presentation.
In effect, but it's not going to be in my opinion.
Re determined steps.
We have to do.
The stuff that I.
Mentioned neumeyer.
Speaker 2: in your first part of the question first, and then we'll take care of problems as they arise.
And your first part of the question first and then.
We will take care of.
Problems.
Alright.
Thank you very much.
Youre welcome.
Speaker 5: As a reminder, that is star one to ask a question, and we'll pause for a moment.
As a reminder, that is star one to ask a question and we will pause for a moment.
We do have a question from Roger Bell with Hannaman partners.
Roger Your line is open. Please go ahead.
Speaker 6: Roger, your line is open. Please pick up your handset or release your mute option. Oh, apologies. I was on mute. Yeah, thank you very much for the call and congratulations again on the project with Airbus. I just wanted to ask about the Green Hippo project and
Roger Your line is open please pickup your handset or release your mute option.
Apologies I was on mute.
Yes. Thank you very much for the call and congratulations again on the.
On the project with Airbus.
I just wanted to ask about the.
The Green Hippo project.
Speaker 6: the drawdown of the funding from IPC-EI. So when you do commence that project and start drawing that down, what's the time frame to bring that into production and start generating revenue from that project?
The draw under the funding from IPC EI.
Sure.
So.
When you do commence the project and start drilling.
The time timeframe.
Spring <unk> production.
I will start generating revenue from that project.
Yes.
Speaker 2: Yeah, you're right. I mean, it has to go from, let's say, time zero, right? When we sign, how fast we're going to.
You're right.
And she has to go from let's say.
<unk> zero right when we sign.
We've got.
Speaker 2: a lot of fuel, very fast, because we're waiting for it now. We're waiting for it almost a year.
Okay, a lot fewer of them.
Very fast because we're waiting for it now with wisdom.
A year.
Speaker 2: So we're ready, so with this, you know, the castle also will follow. So, as I said, we're dealing with the state. We have to show the...
So so we're ready so.
With this.
No.
The cash flow so we will follow.
So as I said, we're dealing with the state will have to show there.
Speaker 2: necessary respect to the process, if you will. But the whole mood is positive, I must say that over and over. So we will move fast after we have the signature.
Unnecessarily with respect to the process if you will.
But the whole the whole model is positive.
I must say that overlap.
So we will we will move past factory, we haven't mentioned.
Thanks, and then just a follow up in general.
Speaker 6: the sort of structure of your partnerships with the potential downstream customers? Are you
The structure of your partnerships with the potential partners Jim customers that are you.
Yes.
Speaker 6: Are you an equity holder in those partnerships and would you be obliged to find funding if they move forward? Are the partners providing the cash and you're providing the expertise and potentially taking some kind of technology royalty further down the track? Is that how you would see those relationships work?
Are you sort of equity holder in those partnerships.
<unk> like to find something.
So to move forward or.
Our U S.
Partners, providing the cautions you youre, providing sort of expertise.
It potentially taking some kind of technology royalty further down the track is that there's a high EBIT.
So you see those relationships working in general.
Speaker 2: Yeah, all of the above. I'll tell you where we are right now, and obviously where we'd like to be, and I think you kind of said it.
Yes.
All of the above but I'll tell you, where we're at now and obviously, we'd like to be and I think you kind of said it.
Speaker 2: what the right track is. Right now we bring the technology. And since we bring the technology with big partners that have tremendous knowledge of their particular market.
Whether I practice right now.
The technology, Okay, and as soon as we bring that technology, we say the big partners that they have tremendous knowledge of their particular markets.
Speaker 2: we both want to accelerate what we do. Okay, so instead of taking a fixed amount of time, it should take us much less, because keep in mind that they have a lot of people and a lot of capital tied to this big project themselves. All right, we're talking about.
We both want to accelerate what we do okay. So instead of taking a fixed amount of time should take us much less because keep in mind that they had a lot of people and a lot of capital tied to these big projects themselves we're talking about.
Speaker 2: automotive, we're talking about aerospace, we're talking about marine, you know, these are big consolidated markets.
Module, we're talking on aerospace we're talking about margin. These are big consolidated markets. Okay.
Speaker 2: huge markets. Now, a company like us, right now, as you've seen, in addition to this, we sell complete systems and basically we try to do it through major distributors and resellers, things like that. Eventually, and I think you alluded to it, for us, we need to license to top manufacturers. That's our model and I think we are...
Huge markets now are combined like US right now as you've seen in addition to these we sell them the complete systems and basically we tried to do through major distributors.
Sellers things like that eventually.
I think you alluded to it for us we need to license the top manufacturers okay in.
That's our that's our model and I think we are true.
Speaker 2: true to our model so far. We say we're going to do JDAs, we did them. Then we say we're going to have license tomorrow, I hope we'll do it sooner than later. But we know what the path is and I think
True to our model so far we said, we're going to do <unk>, we did them.
Hey, we're going to have license tomorrow I hope, we'll do it sooner than later, but we know what the boxes and I think.
Speaker 2: starting from telecom, starting from construction, starting from marine where we have final products. You've seen we partnered with Xemens Energy for the large-scale systems. We have the San Lorenzo boat that everybody is waiting to see in the next Monaco show, and we're very proud of it. So we keep our fingers crossed that we get everything right. The same thing with the telecom, we have a lot of.
Starting from telecom, starting from construction Styrofoam Marine where we have a final product that you've seen.
Partnering with Jim its energy for the electrical systems, which have the San Lorenzo bought that everybody is waiting to see in the next morning, Corso and we're very proud of it. So we keep our fingers crossed that we get everything right.
Same thing with the telecom will have a lot of fun.
Speaker 2: installation not only in Asia but also the German police and then of course
Installation not only in Asia, but also German police.
And then of course, the smarter globally.
In the.
Speaker 2: Philippines. So we're moving along this route, if you will, knowing very well that in the end, we definitely would like to license the technology, you know, automotive or aerospace giants, and we will get a lot of revenue from that. Because if you look at...
Philippines.
So we're moving along this route if you will at knowing very well that in <unk>.
And we definitely would like to license that technology.
So aerospace.
Giants and we will get a lot of revenue from that.
If you look at the margins.
Speaker 2: The license margin is very, very big, and the gross margins for the fuel cell systems are much smaller, which I understand.
The license margin is very very big in the gross margins for.
The fuel cell systems are as much more understandable.
So that's our plan.
Speaker 1: Thank you. And that does conclude ADVENT Technologies' third quarter conference call. Thank you for your participation today, everyone, and you may now disconnect.
Thank you and that does conclude advent technologies third quarter conference call. Thank you for your participation today, everyone and you may now disconnect.
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