Overview

Advent Technologies Holdings, Inc. is an advanced materials and technology development company operating in the fuel cell, methanol, and hydrogen technology space. Advent is a world-leading company in the development of the HT-PEM technology, which enables off-grid power systems to produce clean power from various green fuels and function in extreme environmental conditions.

Advent’s core product offerings are fuel cell stacks and the Membrane Electrode Assembly (MEA), which is the critical component of the fuel cell. Advent’s MEA technology enables high power-density, longer-lasting and lower-cost fuel cell products.

The majority of Advent’s current revenue comes from Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) with leading OEMs for the development of joint products. Advent also secures grant funding for its product development activities.

Business Developments

Key business developments for Advent include:

Green HiPo Project approved by EU

• In July 2022, Advent received EU ratification for the Green HiPo project to develop HT-PEM fuel cells and electrolysers in Greece. However, due to delays, Advent does not expect any funding disbursement in the near future.

Airbus Term Sheet for Joint Benchmarking Project

• In November 2023, Advent entered a term sheet with Airbus for a joint project to accelerate the development of Advent’s MEA technology for aviation applications.

At the Market Offering Agreement

• In June 2023, Advent entered an At The Market Offering Agreement to sell up to $50 million of its common stock.

Hood Park Facility

• In March 2023, Advent opened a new R&D and manufacturing facility in Boston, but decided to abandon it in June 2024 to reduce costs.

Agreements with Hyundai Motor Company

• In 2022 and 2023, Advent signed technology assessment and joint development agreements with Hyundai to develop HT-PEM fuel cell technology.

Selection and Launch of Wearable Fuel Cell for the DOD

• In 2021, Advent’s 50W Reformed Methanol Wearable Fuel Cell was selected by the DOD for its validation program. Advent launched the Honey Badger 50 portable fuel cell system in 2022.

Advent Technologies A/S declared bankrupt

• In July 2024, Advent’s subsidiary in Denmark was declared bankrupt due to an inability to pay a €402,000 claim.

Key Factors Affecting Results

Key factors affecting Advent’s results include:

• Increased customer demand as awareness of Advent’s MEA capabilities grows
• Successful development of Advent’s advanced MEA product to improve cost/kW performance
• Ability to raise capital and generate positive cash flow to meet liquidity needs

Results of Operations

Advent’s revenue decreased from $1.1 million in Q2 2023 to $0.8 million in Q2 2024, as the company shifted towards service revenue from JDAs and TAAs. Cost of revenues also decreased from $1.9 million to $0.2 million over the same period.

Research and development expenses increased from $2.9 million to $3.6 million, while administrative and selling expenses decreased from $8.3 million to $6.4 million.

Advent recognized impairment losses of $9.8 million in Q2 2023 related to goodwill and intangible assets. The company also accrued a $4.9 million loss contingency in H1 2024.

Advent’s net loss decreased from $21.8 million in Q2 2023 to $11.3 million in Q2 2024. Adjusted EBITDA improved from a loss of $10.5 million to a loss of $8.2 million over the same period.

Liquidity and Capital Resources

As of June 30, 2024, Advent had $0.7 million in cash and a working capital deficit of $8.9 million. The company used $4.8 million in operating cash flow in the first half of 2024.

Advent’s ability to meet its liquidity needs will depend on its ability to raise capital and generate future cash flow. The company has concluded that substantial doubt exists about its ability to continue as a going concern for the next 12 months.

Conclusion

Advent is a leading developer of HT-PEM fuel cell technology, with a focus on its core MEA product. The company has made progress in partnerships with major OEMs like Hyundai and Airbus, but faces significant liquidity challenges that raise doubts about its ability to continue as a going concern. Successful development of its advanced MEA and securing additional funding will be critical to Advent’s future success.