2022 Q3 Form 10-K Financial Statement

#000186894122000120 Filed on December 14, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 2021 Q3
Revenue $442.0M $1.199B $188.2M
YoY Change 134.84% 76.07% -21.41%
Cost Of Revenue $428.5M $1.261B $247.3M
YoY Change 73.31% 68.15% 8.71%
Gross Profit $13.44M -$62.35M -$59.06M
YoY Change -122.76% -9.82% -591.85%
Gross Profit Margin 3.04% -5.2% -31.38%
Selling, General & Admin $42.50M $153.9M $20.75M
YoY Change 104.85% 153.21% 124.85%
% of Gross Profit 316.2%
Research & Development $17.92M $60.14M $6.176M
YoY Change 190.07% 156.72% 106.62%
% of Gross Profit 133.3%
Depreciation & Amortization $2.216M $2.400M $1.618M
YoY Change 36.96% -53.05% 110.4%
% of Gross Profit 16.49%
Operating Expenses $64.99M $214.1M $27.75M
YoY Change 134.23% 138.92% 124.3%
Operating Profit -$51.55M -$276.4M -$86.81M
YoY Change -40.61% 74.13% 23814.33%
Interest Expense -$81.00K $2.018M -$1.435M
YoY Change -94.36% -240.63%
% of Operating Profit
Other Income/Expense, Net -$2.281M
YoY Change 744.81%
Pretax Income -$54.34M -$287.8M -$88.24M
YoY Change -38.43% 79.69% 24209.64%
Income Tax $1.850M $1.357M -$1.045M
% Of Pretax Income
Net Earnings -$37.15M -$104.5M -$87.20M
YoY Change -57.4% -35.5% 7784.18%
Net Earnings / Revenue -8.41% -8.72% -46.33%
Basic Earnings Per Share -$1.50
Diluted Earnings Per Share -$324.6K -$1.50 -$1.762M
COMMON SHARES
Basic Shares Outstanding 69.71M shares
Diluted Shares Outstanding 69.71M shares

Balance Sheet

Concept 2022 Q3 2022 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $467.7M $467.7M $36.83M
YoY Change 1169.79% 1169.79%
Cash & Equivalents $357.3M $357.3M $36.83M
Short-Term Investments $110.4M $110.4M
Other Short-Term Assets $26.64M $143.8M $41.92M
YoY Change -36.46% 398.54%
Inventory $652.7M $652.7M $389.8M
Prepaid Expenses $2.095M $2.480M
Receivables $86.77M $337.3M $46.66M
Other Receivables $0.00 $0.00 $14.05M
Total Short-Term Assets $1.602B $1.602B $661.5M
YoY Change 142.1% 142.1%
LONG-TERM ASSETS
Property, Plant & Equipment $13.76M $16.16M $8.206M
YoY Change 67.62% 96.9%
Goodwill $24.85M $9.176M
YoY Change 170.83% 93.95%
Intangibles $51.70M $36.06M
YoY Change 43.37%
Long-Term Investments
YoY Change
Other Assets $36.82M $51.42M $1.315M
YoY Change 2700.0% 1789.6%
Total Long-Term Assets $144.1M $144.1M $56.16M
YoY Change 156.63% 156.63%
TOTAL ASSETS
Total Short-Term Assets $1.602B $1.602B $661.5M
Total Long-Term Assets $144.1M $144.1M $56.16M
Total Assets $1.746B $1.746B $717.7M
YoY Change 143.24% 143.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $304.9M $306.3M $158.4M
YoY Change 92.53% 88.09%
Accrued Expenses $183.8M $206.8M $186.1M
YoY Change -1.25% 2.24%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $100.0M
YoY Change -100.0% -100.0%
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $1.109B $1.109B $771.5M
YoY Change 43.81% 43.81%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.096M $2.107M $2.381M
YoY Change -53.97% -11.51%
Total Long-Term Liabilities $6.983M $2.107M $2.381M
YoY Change 193.28% -11.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.109B $1.109B $771.5M
Total Long-Term Liabilities $6.983M $2.107M $2.381M
Total Liabilities $1.116B $1.310B $773.9M
YoY Change 44.27% 69.26%
SHAREHOLDERS EQUITY
Retained Earnings -$104.5M -$279.3M
YoY Change -62.57%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.013M
YoY Change
Treasury Stock Shares
Shareholders Equity $435.8M $435.8M -$56.20M
YoY Change
Total Liabilities & Shareholders Equity $1.746B $1.746B $717.7M
YoY Change 143.24% 143.24%

Cashflow Statement

Concept 2022 Q3 2022 2021 Q3
OPERATING ACTIVITIES
Net Income -$37.15M -$104.5M -$87.20M
YoY Change -57.4% -35.5% 7784.18%
Depreciation, Depletion And Amortization $2.216M $2.400M $1.618M
YoY Change 36.96% -53.05% 110.4%
Cash From Operating Activities -$221.4M -$282.4M -$126.0M
YoY Change 75.76% 6.45% -303.71%
INVESTING ACTIVITIES
Capital Expenditures -$5.259M $7.934M -$1.293M
YoY Change 306.73% -284.86% 68.58%
Acquisitions $29.22M
YoY Change 62.31%
Other Investing Activities -$110.1M -$140.5M $0.00
YoY Change 680.46% -100.0%
Cash From Investing Activities -$115.4M -$148.4M -$1.293M
YoY Change 8825.21% 565.79% 1671.23%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $5.013M
YoY Change -95.99%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.593M $817.1M 105.4M
YoY Change -98.49% 253.51% -1417.46%
NET CHANGE
Cash From Operating Activities -221.4M -$282.4M -126.0M
Cash From Investing Activities -115.4M -$148.4M -1.293M
Cash From Financing Activities 1.593M $817.1M 105.4M
Net Change In Cash -335.3M $391.7M -21.89M
YoY Change 1431.67% -793.99% -140.7%
FREE CASH FLOW
Cash From Operating Activities -$221.4M -$282.4M -$126.0M
Capital Expenditures -$5.259M $7.934M -$1.293M
Free Cash Flow -$216.2M -$290.3M -$124.7M
YoY Change 73.36% 11.24% -299.15%

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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 Annual Report on Form 10-K (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%">Upon the completion of our IPO on November 1, 2021, Fluence Energy, Inc. became a holding company whose sole material assets are the LLC Interests in Fluence Energy LLC. All of our business is conducted through Fluence Energy, LLC, together with its subsidiaries, and the financial results of Fluence Energy, LLC will be consolidated in our financial statements. Fluence Energy LLC is taxed as a partnership for federal income tax purposes and, as a result, its members, including Fluence Energy, Inc. will pay income taxes with respect to their allocable shares of its net taxable income. As of September 30, 2022, Fluence Energy, LLC had subsidiaries including Fluence Energy GmbH in Germany, Fluence Energy Pty Ltd. in Australia, Fluence Energy Inc. in the Philippines, Fluence Energy Chile SpA in Chile, Fluence Energy B.V. in Netherlands, Fluence Energy Global Production Operation LLC in the US, Fluence BESS India Private Ltd in India, Nispera AG in Switzerland, and other subsidiaries yet to commence operations. Except where the content clearly indicates otherwise, reference to “Fluence,” “we,” “us,” “our” or “the Company” refers to Fluence Energy, Inc. and all of its direct and indirect subsidiaries, including Fluence Energy, LLC. When used in a historical context that is prior to the completion of the IPO, “we,” “us,” “our” or “the Company” refer to Fluence Energy, LLC and its 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:112%"> Our fiscal year begins on October 1 and ends on September 30. References to “fiscal year 2020”, “fiscal year 2021” and “fiscal year 2022” refer to the fiscal years ended September 30, 2020, September 30, 2021 and September 30, 2022, respectively.</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 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 and in exchange, 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 September 30, 2022, no mezzanine equity is recorded on the 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: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. </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 Redemption 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 Redemption been accounted for as an equity transaction and the carrying amount of non-controlling interest has been adjusted. Refer to C</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">onsolidated statements of changes in stockholders’ equity, members’ equity (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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CY2022 flnc Effective Income Tax Rate Reconciliation Withholding Taxes Percent
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CY2022 flnc Standard And Extended Product Warranty Accrual Increase Decrease Short Term
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CY2022Q3 us-gaap Purchase Obligation Due In Next Twelve Months
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CY2022Q3 us-gaap Purchase Obligation Due In Second Year
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CY2022Q3 flnc Purchase Obligation To Be Paid Year Four And After
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CY2022Q3 us-gaap Purchase Obligation
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CY2022Q3 us-gaap Product Warranty Accrual
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CY2021Q3 us-gaap Product Warranty Accrual
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CY2021Q3 us-gaap Product Warranty Accrual
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CY2020Q3 us-gaap Product Warranty Accrual
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CY2022 flnc Standard And Extended Product Warranty Accrual Increase Decrease Long Term
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CY2022Q3 us-gaap Product Warranty Accrual
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CY2022 flnc Inventory Valuation Reserves Inventory Write Down
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CY2022 flnc Increase Decrease In Cost Related To Batteries Purchased
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CY2022Q3 us-gaap Gain Contingency Unrecorded Amount
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CY2022Q3 us-gaap Loss Contingency Receivable
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CY2022Q3 us-gaap Accounts Receivable Related Parties Current
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CY2022 flnc Related Party Transaction Research And Development Expenses From Transactions With Related Party
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CY2021 flnc Related Party Transaction Research And Development Expenses From Transactions With Related Party
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CY2020 flnc Related Party Transaction Research And Development Expenses From Transactions With Related Party
RelatedPartyTransactionResearchAndDevelopmentExpensesFromTransactionsWithRelatedParty
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CY2022 flnc Related Party Transaction Sales And Marketing Expenses From Transactions With Related Party
RelatedPartyTransactionSalesAndMarketingExpensesFromTransactionsWithRelatedParty
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RelatedPartyTransactionSalesAndMarketingExpensesFromTransactionsWithRelatedParty
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CY2022 flnc Related Party Transaction General And Administrative Expenses From Transactions With Related Party
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CY2021 us-gaap Related Party Transaction Purchases From Related Party
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CY2022 us-gaap Defined Contribution Plan Employer Matching Contribution Percent Of Match
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CY2022 us-gaap Defined Contribution Plan Cost Recognized
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CY2022 us-gaap Allocated Share Based Compensation Expense
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CY2021 us-gaap Allocated Share Based Compensation Expense
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CY2022Q3 us-gaap Commitments And Contingencies
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CY2021Q3 us-gaap Commitments And Contingencies
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