2022 Q2 Form 10-Q Financial Statement

#000186894122000073 Filed on August 15, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2021 Q3 2021 Q2
Revenue $239.0M $188.2M $278.2M
YoY Change -14.09% -21.41% -13.57%
Cost Of Revenue $244.2M $247.3M $293.2M
YoY Change -16.7% 8.71% -10.06%
Gross Profit -$5.197M -$59.06M -$14.96M
YoY Change -65.25% -591.85% 266.1%
Gross Profit Margin -2.17% -31.38% -5.38%
Selling, General & Admin $35.73M $20.75M $16.06M
YoY Change 122.44% 124.85% -35.62%
% of Gross Profit
Research & Development $18.13M $6.176M $4.740M
YoY Change 282.47% 106.62%
% of Gross Profit
Depreciation & Amortization $1.972M $1.618M $3.494M
YoY Change -43.56% 110.4% 55.36%
% of Gross Profit
Operating Expenses $53.86M $27.75M $20.80M
YoY Change 158.9% 124.3% -41.95%
Operating Profit -$59.06M -$86.81M -$35.76M
YoY Change 65.16% 23814.33% -10.44%
Interest Expense $573.0K -$1.435M $424.0K
YoY Change 35.14%
% of Operating Profit
Other Income/Expense, Net -$205.0K $349.0K
YoY Change -158.74%
Pretax Income -$61.81M -$88.24M -$37.10M
YoY Change 66.62% 24209.64% -7.09%
Income Tax -$1.000M -$1.045M $1.700M
% Of Pretax Income
Net Earnings -$19.35M -$87.20M -$38.78M
YoY Change -50.11% 7784.18% -14.97%
Net Earnings / Revenue -8.09% -46.33% -13.94%
Basic Earnings Per Share -$0.35
Diluted Earnings Per Share -$0.35 -$1.762M $0.00
COMMON SHARES
Basic Shares Outstanding 55.63M shares
Diluted Shares Outstanding 55.63M shares

Balance Sheet

Concept 2022 Q2 2021 Q3 2021 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $677.0M $36.83M $58.50M
YoY Change 1057.24%
Cash & Equivalents $677.0M $36.83M $58.50M
Short-Term Investments
Other Short-Term Assets $39.14M $41.92M $23.49M
YoY Change 66.62%
Inventory $453.7M $389.8M $333.4M
Prepaid Expenses $3.263M $2.480M
Receivables $93.20M $46.66M $219.0M
Other Receivables $22.11M $14.05M $4.437M
Total Short-Term Assets $1.551B $661.5M $638.9M
YoY Change 142.73%
LONG-TERM ASSETS
Property, Plant & Equipment $9.292M $8.206M $7.602M
YoY Change 22.23%
Goodwill $25.21M $9.176M $9.201M
YoY Change 174.04% 93.95%
Intangibles $53.50M $36.06M
YoY Change
Long-Term Investments
YoY Change
Other Assets $12.35M $1.315M $355.0K
YoY Change 3378.59%
Total Long-Term Assets $121.8M $56.16M $54.11M
YoY Change 125.14%
TOTAL ASSETS
Total Short-Term Assets $1.551B $661.5M $638.9M
Total Long-Term Assets $121.8M $56.16M $54.11M
Total Assets $1.673B $717.7M $693.0M
YoY Change 141.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $220.6M $158.4M $73.01M
YoY Change 202.14%
Accrued Expenses $135.4M $186.1M $277.9M
YoY Change -51.27%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $100.0M $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $994.0M $771.5M $658.0M
YoY Change 51.06%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $7.454M $2.381M $3.959M
YoY Change 88.28%
Total Long-Term Liabilities $7.454M $2.381M $3.959M
YoY Change 88.28%
TOTAL LIABILITIES
Total Short-Term Liabilities $994.0M $771.5M $658.0M
Total Long-Term Liabilities $7.454M $2.381M $3.959M
Total Liabilities $1.001B $773.9M $662.2M
YoY Change 51.25%
SHAREHOLDERS EQUITY
Retained Earnings -$67.34M -$279.3M
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $4.991M
YoY Change
Treasury Stock Shares
Shareholders Equity $458.9M -$56.20M $30.81M
YoY Change
Total Liabilities & Shareholders Equity $1.673B $717.7M $693.0M
YoY Change 141.36%

Cashflow Statement

Concept 2022 Q2 2021 Q3 2021 Q2
OPERATING ACTIVITIES
Net Income -$19.35M -$87.20M -$38.78M
YoY Change -50.11% 7784.18% -14.97%
Depreciation, Depletion And Amortization $1.972M $1.618M $3.494M
YoY Change -43.56% 110.4% 55.36%
Cash From Operating Activities $80.05M -$126.0M -$139.3M
YoY Change -157.48% -303.71% 83.59%
INVESTING ACTIVITIES
Capital Expenditures -$1.404M -$1.293M -$2.999M
YoY Change -53.18% 68.58% 196.05%
Acquisitions
YoY Change
Other Investing Activities -$29.22M $0.00 -$18.00M
YoY Change 62.31% -100.0% -193.24%
Cash From Investing Activities -$30.62M -$1.293M -$21.00M
YoY Change 45.81% 1671.23% -214.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -12.58M 105.4M 125.7M
YoY Change -110.01% -1417.46% 1097.42%
NET CHANGE
Cash From Operating Activities 80.05M -126.0M -139.3M
Cash From Investing Activities -30.62M -1.293M -21.00M
Cash From Financing Activities -12.58M 105.4M 125.7M
Net Change In Cash 36.85M -21.89M -34.55M
YoY Change -206.67% -140.7% -26.61%
FREE CASH FLOW
Cash From Operating Activities $80.05M -$126.0M -$139.3M
Capital Expenditures -$1.404M -$1.293M -$2.999M
Free Cash Flow $81.46M -$124.7M -$136.3M
YoY Change -159.77% -299.15% 82.06%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
dei Entity Central Index Key
EntityCentralIndexKey
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dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
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dei Document Fiscal Year Focus
DocumentFiscalYearFocus
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dei Document Fiscal Period Focus
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dei Amendment Flag
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dei Document Type
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dei Document Quarterly Report
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dei Document Period End Date
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dei Document Transition Report
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dei Entity File Number
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dei Entity Registrant Name
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dei Entity Incorporation State Country Code
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dei Entity Tax Identification Number
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dei Security12b Title
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Organization and Operations<div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Fluence Energy, Inc., a Delaware corporation (“the Company”), was formed on June 21, 2021. We conduct our business operations through Fluence Energy, LLC and its direct and indirect subsidiaries. Fluence Energy, LLC was formed on June 30, 2017 as a joint venture between Siemens Industry, Inc. (“Siemens Industry”), an indirect subsidiary of Siemens AG (“Siemens”), and AES Grid Stability, LLC (“AES Grid Stability”), an indirect subsidiary of the AES Corporation (“AES”), and commenced operations on January 1, 2018. We refer to Siemens Industry and AES Grid Stability as the “Founders” in this Quarterly Report on Form 10-Q (this “Report”).</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Fluence Energy, LLC, along with its wholly owned subsidiaries, is primarily engaged in the construction and sale of battery-based energy storage products and providing operational services and artificial intelligence (AI)-enabled digital applications (“Fluence IQ”) for renewables and storage throughout the world, including the Americas, EMEA, and Asia Pacific regions. Except where the context clearly indicates otherwise, “Fluence,” “we,” “us,” “our” or the “Company” refers to Fluence Energy, Inc. and its wholly owned subsidiaries.</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The Company’s CODM reviews financial information on a condensed consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates in one operating segment, which corresponds to one reportable segment.</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">QFH’s Investment in Fluence Energy, LLC</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On December 27, 2020, Fluence Energy, LLC entered into an agreement with QIA Florence Holdings LLC (“QFH” or the “Blocker Company”) for a $125.0 million investment. QFH was issued 18,493,275 Class B units of Fluence Energy, LLC. QFH is an affiliate of the Qatar Investment Authority (“QIA”), the sovereign wealth fund of Qatar, and its subsidiaries and affiliates. At September 30, 2021, the investment was recognized at carrying value within mezzanine equity on the consolidated balance sheets. As part of the transactions related to our initial public offering closed on November 1, 2021, QFH elected to convert their Class B units to the common stock of Fluence Energy, Inc., which was a conversion available to all of the holders of Fluence Energy, LLC Class A and Class B units. Accordingly, as of June 30, 2022, no mezzanine equity is recorded on the condensed consolidated balance sheets.</span></div><div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Initial Public Offering and Related Transactions</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On November 1, 2021, the Company completed an initial public offering (the “IPO”) and a series of organization transactions (collectively with the IPO, the “Transactions”), in which the Company issued and sold 35,650,000 shares of its Class A common stock, par value $0.00001 per share (the “Class A common stock”), at the public offering price of $28.00 per share, which includes the exercise by the underwriters of their option to purchase an additional 4,650,000 shares of the Class A common stock. The net proceeds to the Company from the IPO we</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">re $935.8 million</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, after deducting underwriting discounts and offering expenses paid by the Company.</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> Immediately following the consummation of the Transactions:</span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Fluence Energy, Inc. became a holding company. As the sole managing member of Fluence Energy, LLC, Fluence Energy, Inc. controls the business and affairs of Fluence Energy, LLC and its direct and indirect subsidiaries;</span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Fluence Energy, Inc. owned, directly or indirectly, 54,143,275 limited liability company interests in Fluence Energy, LLC (the “LLC Interests”), representing approximately 31.6% of the economic interest in Fluence Energy, LLC;</span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">the Founders owned 117,173,390 LLC Interests in Fluence Energy, LLC, representing approximately 68.4% of the economic interest in Fluence Energy, LLC;</span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">the investors in our IPO owned 35,650,000 shares of Class A common stock of Fluence Energy, Inc., representing approximately 65.8% of the economic interest in Fluence Energy, Inc.; </span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">Qatar Holding LLC, the owner of the original Blocker Company, owned 18,493,275 shares of Class A common stock of Fluence Energy, Inc., representing approximately 34.2% of the economic interest in Fluence Energy, Inc.; and</span></div><div style="margin-top:8pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">the Founders owned 117,173,390 shares of Class B-1 common stock of Fluence Energy, Inc.</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Refer to Note 19 - </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Subsequent Events</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> to the audited consolidated financial statements included in our 2021 Annual Report for a detailed discussion on the IPO and related Transactions. </span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Siemens Industry Redemption</span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On June 30, 2022, Siemens Industry, Inc. exercised its redemption right pursuant to the terms of the Third Amended and Restated Limited Liability Company Agreement of Fluence Energy, LLC (the “LLC Agreement”) with respect to its entire holding of 58,586,695 LLC Interests of Fluence Energy, LLC, together with the corresponding cancellation of an equivalent number of shares of Class B-1 common stock of Fluence Energy, Inc., par value $0.00001 per share (the “Redemption”). </span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company elected to settle the Redemption through the issuance of 58,586,695 shares of the Company’s Class A common stock (the “Shares”). The Redemption settled on July 7, 2022. Siemens Industry, Inc. effected an internal transfer of its interest in the Shares to Siemens AG at the time of Redemption and as of June 30, 2022, Siemens AG is the beneficial owner of 58,586,695 shares of Class A common stock. </span></div><div style="margin-top:8pt;text-align:justify;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The transaction increased the beneficial ownership interest of the Company in Fluence Energy, LLC to 66.08% as of June 30, 2022. The impact of the change in ownership interest did not result in a change in control. The transaction has been accounted for as an equity transaction and the carrying amount of non-controlling interest has been adjusted. Refer to </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Condensed consolidated statements of changes in stockholders’ equity, members’ deficit and mezzanine equity </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">included herein</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">.</span></div>
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