Brenmiller Energy Reports First Quarter 2022 Financial Results and Operational Update
- Began trading on Nasdaq Capital Market; received
- Signed global framework agreement with Philip Morris -
ROSH HAAYIN,
Key Highlights
● Began trading on the Nasdaq Capital Market (“Nasdaq”) under ticker symbol “BNRG” on
● Signed framework agreement with Philip Morris for the supply of the Company’s bGen™ TES; signed agreement for a
● Selected by the
●
Management Commentary
“First quarter 2022 was an important and busy time for Brenmiller Energy,” said Avi Brenmiller, Chairman and Chief Executive Officer of
“This project, in addition to our various projects with other customers, is expected to provide the foundation for Brenmiller to capitalize on the trend of decarbonization and fuel-efficiency in the global industrial and utility sector,” continued Brenmiller. “We have a robust pipeline of opportunities and expect additional commercial orders over the course of 2022, into 2023 and beyond.”
“Additionally, Brenmiller’s ordinary shares began trading on the Nasdaq on
Balance Sheet Update
Brenmiller ended the first quarter of 2022 with
Research and Development
Research, development, and engineering expenses were
Research, development, and engineering expenses, net breakdown:
Three months ended |
||
2022 |
2021 |
|
USD in thousands | ||
Total research, development, and engineering expenses | 1,508 |
1,293 |
Less — grants | (187) |
(432) |
1,321 |
861 |
New Project Awards
In
On
Dimona Israel Production Facility
In March, 2021, Brenmiller signed a
Operational Update
Brenmiller is currently in the process of installing pilot projects in various geographic regions in an effort to demonstrate the use of its technologies for both industrial and utility scale applications, which are ultimately expected to support the commercialization of the technology. Its pilot projects are progressing as planned and are expected to reach major milestones over the next twelve months. Key updates to its pilot projects include:
● SUNY Purchase: The company is installing a 0.5 MWh thermal storage based co-generation station with the
● Fortlev: Brenmiller is designing, manufacturing, and installing a 2 MWh TES with Fortlev in
● Enel: Brenmiller is designing, manufacturing, and installing a 23 MWh TES system for a combined cycle power plant for Enel in
Commitment to Sustainability
Brenmiller's sustainability policy covers the use of materials, use of equipment, manufacturing processes, engineering output, care during construction at customer sites, and social responsibility.
The Company's sustainability policy and its fundamental principles are embedded through all the Company’s business activities. The policy applies to anyone accessing, participating, or impacting the Company’s business, including employees, consultants, and contractors.
Brenmiller's core business is to reduce its customers' environmental impact by reducing their greenhouse gas (“GHG”) emissions and helping them achieve net-zero CO2 targets. Therefore, Brenmiller is actively improving its operations, manufacturing methods, and products to reduce its own environmental impact.
Brenmiller' is committed to lowering its own GHG emissions. Its storage systems are designed and manufactured for a lifetime of 25 years and produced from sustainable and fully recyclable materials.
Brenmiller's TES system is flexible and can be integrated with both traditional energy sources and renewable energy sources. As a result, it offers a technological solution for decarbonizing the energy sector and can be an important part of the world’s transition to a low-carbon economy.
Greenhouse Gas Emissions
In accordance with global standardized frameworks to measure CO2 - Gas emissions (GHG protocol) Brenmiller examined its scope 1 and scope 2 GHG emissions from 2019 to 2021.Scope 1 describes all direct emissions from the Company's own operations and assets, including the Company's fleet of vehicles. Scope 2 describes indirect emissions from the consumption of power at the Company's facilities.
|
2019 |
2020 |
2021 |
Scope 1 (tons CO2-eq) |
38 |
55 |
67 |
Scope 2 (tons CO2-eq) |
119 |
78 |
127 |
Total (tons CO2-eq) |
157 |
133 |
194 |
Brenmiller expects to refine its scope 3 emissions data collection procedures over time and to include data on scope 3 emissions in the future.
Brenmiller is committed to being a leader in environmental sustainability. In its commitment to the environment, the Company complies and will continue to comply with relevant environmental standards such as ISO-14001 and ISO-45001, for which the Company is already certified.
Brenmiller will publish its first full and detailed Environmental, Social, and Governance (“ESG”) report in the fourth quarter of 2022. This report will reflect the ESG aspects of Brenmiller in a way that represents all its stakeholders. The report will examine the Company's business, strategy, and vision combined with its values and commitments for the coming years. The report will be written in accordance with acceptable methodologies such as
Brenmiller is an active agent in the global effort to achieve the SDG of the
About
Brenmiller Energy’s innovative thermal energy storage solutions are accelerating the electrification and decarbonization of the global economy. Founded in 2012 by Avi Brenmiller, former CEO of Siemens CSP and Solel, and a team of other experts in the field of renewable energy, its patented technology heats crushed rocks to very high temperatures, enabling utility and industrial customers to cost-effectively store energy and then convert this energy into steam, hot water, or hot air for a variety of applications. The Company has raised more than
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses its pipeline of projects and expected additional commercial orders, its expected timeline for installing and completing its pilot projects that are underway, the expected drawdown from a financing facility with the
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSTION | |||
(Unaudited) | |||
2022 |
2021 |
||
(Unaudited) |
(Audited) |
||
Assets | USD in thousands |
||
CURRENT ASSETS: | |||
Cash and cash equivalents | 4,832 |
8,280 |
|
Restricted deposits | 46 |
47 |
|
Trade receivables | 180 |
162 |
|
Receivables | 730 |
553 |
|
Inventory | 93 |
95 |
|
TOTAL CURRENT ASSETS | 5,881 |
9,137 |
|
NON-CURRENT ASSETS: | |||
Restricted deposits | 175 |
179 |
|
Investment in joint venture | 41 |
- |
|
Right-of-use assets, net | 1,383 |
3,018 |
|
Property, plant and equipment: | |||
Plant and equipment, net | 1,507 |
1,583 |
|
665 |
679 |
||
Total property, plant and equipment | 2,172 |
2,262 |
|
TOTAL NON-CURRENT ASSETS | 3,771 |
5,459 |
|
TOTAL ASSETS | 9,652 |
14,596 |
|
LIABILITIES AND EQUITY | |||
CURRENT LIABILITIES: | |||
Short-term bank credit and loans | 1 |
5 |
|
Trade payables | 171 |
264 |
|
Prepaid income | 1,103 |
1,095 |
|
Other payables | 1,526 |
1,623 |
|
Provisions | 51 |
215 |
|
Current maturities of lease liabilities | 863 |
954 |
|
TOTAL CURRENT LIABILITIES | 3,715 |
4,156 |
|
NON-CURRENT LIABILITIES | |||
Lease liabilities | 920 |
2,448 |
|
Liability for share options | 105 |
213 |
|
Liability for royalties | 2,296 |
2,236 |
|
TOTAL NON-CURRENT LIABILITIES | 3,321 |
4,897 |
|
TOTAL LIABILITIES | 7,036 |
9,053 |
|
EQUITY : | |||
Share capital | 79 |
79 |
|
Share premium | 45,648 |
45,648 |
|
Receipts on account of warrants and capital components of convertible loans | 1,176 |
1,176 |
|
Capital reserve from transactions with controlling shareholders | 54,061 |
54,061 |
|
Capital reserve on share based payments | 1,579 |
1,318 |
|
Foreign currency cumulative translation reserve | (1,186) |
(1,053) |
|
Accumulated deficit | (98,741) |
(95,686) |
|
TOTAL EQUITY | 2,616 |
5,543 |
|
TOTAL LIABILITIES AND EQUITY (NET OF CAPITAL DEFICIENCY) | 9,652 |
14,596 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
(Unaudited) | ||||
Three months ended |
||||
2022 |
2021 |
|||
USD in thousands (except per share data) |
||||
REVENUES | 20 |
- |
||
COSTS AND EXPENSES: | ||||
COST OF REVENUES | (500) |
(2,164) |
||
RESEARCH, DEVELOPMENT AND ENGINEERING EXPENSES, NET | (1,321) |
(861) |
||
SHARE IN LOSS OF JOINT VENTURE COMPANY | (32) |
- |
||
MARKETING AND PROJECT PROMOTION EXPENSES, NET | (300) |
(192) |
||
GENERAL AND ADMINISTRATIVE EXPENSES | (1,152) |
(560) |
||
OTHER INCOME | 82 |
2 |
||
OPERATING LOSS | (3,203) |
(3,775) |
||
FINANCIAL INCOME | 274 |
680 |
||
FINANCIAL EXPENSES | (126) |
(37) |
||
FINANCIAL INCOME, NET | 148 |
643 |
||
LOSS FOR THE PERIOD | (3,055) |
(3,132) |
||
OTHER COMPREHENSIVE LOSS – ITEM THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS – EXCHANGE DIFFERENCES ON TRANSLATION TO PRESENTATION CURRENCY | (133) |
(148) |
||
COMPREHENSIVE LOSS FOR THE PERIOD | (3,188) |
(3,280) |
||
LOSS PER ORDINARY SHARE (in Dollars) | ||||
Basic loss* | (0.22) |
(0.27) |
||
Fully diluted loss* | (0.23) |
(0.32) |
*Retroactively adjusted to give effect to a two-for-one reverse stock split of the Ordinary Shares which became effective on
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited) | |||
Three months ended |
|||
2022 |
2021 |
||
USD in thousands |
|||
CASH FLOWS - OPERATING ACTIVITIES: | |||
Net cash used for operating activities (see Appendix A) | (3,076) |
(1,644) |
|
CASH FLOWS - INVESTING ACTIVITIES: | |||
Purchase of equipment | (12) |
(10) |
|
Installation of a production line | (6) |
(60) |
|
Investment in joint venture | (74) |
- |
|
Restricted deposits, net | - |
1 |
|
Net cash used for investing activities | (92) |
(69) |
|
CASH FLOWS - FINANCING ACTIVITIES: | |||
Proceeds from issuance of shares and warrants, net | - |
8,473 |
|
Exercise of options and warrants | - |
20 |
|
Repayment of bank loan and interest thereon | (4) |
(4) |
|
Payments with respect to lease liabilities and interest thereon | (85) |
(156) |
|
Repayments of royalties' liability | - |
0 |
|
Grants recognized as liability for royalties | - |
24 |
|
Repayment of shareholder's loan | - |
(949) |
|
Net cash provided by financing activities | (89) |
7,408 |
|
NET INCREASE IN CASH AND CASH EQUIVALENTS | (3,257) |
5,695 |
|
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS | (191) |
(233) |
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 8,280 |
2,278 |
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 4,832 |
7,740 |
Three months ended |
|||
2022 |
2021 |
||
USD in thousands |
|||
APPENDIX | |||
A. NET CASH USED FOR OPERATING ACTIVITIES | |||
Loss for the period | (3,055) |
(3,132) |
|
Adjustments for: | |||
Depreciation | 61 |
64 |
|
Amortization of right-of-use assets | 139 |
98 |
|
Increase (decrease) in research and development expenses due to royalty obligation | 105 |
(73) |
|
Provision | (159) |
1,346 |
|
Share in loss of joint venture company | 32 |
- |
|
Other income | (80) |
- |
|
Fair value adjustment of share options' liability | (102) |
(618) |
|
Other financial expenses | 49 |
46 |
|
Share-based payment | 261 |
55 |
|
(2,749) |
(2,214) |
||
Changes in operating working capital: | |||
Increase in trade and other receivables | (209) |
(7) |
|
Decrease in inventory | 0 |
192 |
|
Increase (decrease) in trade and other payables | (118) |
385 |
|
Net cash used for operating activities | (3,076) |
(1,644) |
|
Derecognition of Lease liability and right-of-use asset | 1,432 |
- |
|
INTEREST PAYMENTS (included in financing activities items) | 18 |
38 |
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