2023 Q3 Form 10-K Financial Statement

#000186894123000085 Filed on November 29, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 2022 Q3
Revenue $673.0M $2.218B $442.0M
YoY Change 52.26% 85.05% 134.84%
Cost Of Revenue $596.7M $2.077B $428.5M
YoY Change 39.24% 64.72% 73.31%
Gross Profit $76.28M $141.0M $13.44M
YoY Change 467.57% -326.06% -122.76%
Gross Profit Margin 11.33% 6.36% 3.04%
Selling, General & Admin $46.93M $177.4M $42.50M
YoY Change 10.44% 15.27% 104.85%
% of Gross Profit 61.53% 125.87% 316.2%
Research & Development $14.68M $66.31M $17.92M
YoY Change -18.08% 10.25% 190.07%
% of Gross Profit 19.24% 47.04% 133.3%
Depreciation & Amortization $2.925M $10.67M $2.216M
YoY Change 31.99% 344.38% 36.96%
% of Gross Profit 3.83% 7.57% 16.49%
Operating Expenses $73.22M $243.7M $64.99M
YoY Change 12.65% 13.86% 134.23%
Operating Profit $3.064M -$102.8M -$51.55M
YoY Change -105.94% -62.82% -40.61%
Interest Expense $8.861M $5.400M -$81.00K
YoY Change -11039.51% 167.59% -94.36%
% of Operating Profit 289.2%
Other Income/Expense, Net $6.952M
YoY Change -404.78%
Pretax Income $11.43M -$100.3M -$54.34M
YoY Change -121.03% -65.16% -38.43%
Income Tax $6.607M $4.549M $1.850M
% Of Pretax Income 57.83%
Net Earnings $3.268M -$69.62M -$37.15M
YoY Change -108.8% -33.37% -57.4%
Net Earnings / Revenue 0.49% -3.14% -8.41%
Basic Earnings Per Share -$0.60
Diluted Earnings Per Share $0.03 -$0.60 -$324.6K
COMMON SHARES
Basic Shares Outstanding 116.4M shares
Diluted Shares Outstanding 116.4M shares

Balance Sheet

Concept 2023 Q3 2023 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $345.9M $345.9M $467.7M
YoY Change -26.04% -26.03% 1169.79%
Cash & Equivalents $345.9M $345.9M $357.3M
Short-Term Investments $0.00 $0.00 $110.4M
Other Short-Term Assets $31.07M $229.5M $26.64M
YoY Change 16.67% 59.57% -36.46%
Inventory $224.9M $224.9M $652.7M
Prepaid Expenses $3.470M $2.095M
Receivables $103.4M $378.3M $86.77M
Other Receivables $58.51M $16.40M $0.00
Total Short-Term Assets $1.195B $1.195B $1.602B
YoY Change -25.39% -25.38% 142.1%
LONG-TERM ASSETS
Property, Plant & Equipment $12.77M $12.80M $13.76M
YoY Change -7.15% -20.78% 67.62%
Goodwill $26.02M $24.85M
YoY Change 4.7% 170.83%
Intangibles $55.75M $51.70M
YoY Change 7.85% 43.37%
Long-Term Investments
YoY Change
Other Assets $31.64M $31.70M $36.82M
YoY Change -14.07% -38.35% 2700.0%
Total Long-Term Assets $157.2M $157.1M $144.1M
YoY Change 9.07% 9.01% 156.63%
TOTAL ASSETS
Total Short-Term Assets $1.195B $1.195B $1.602B
Total Long-Term Assets $157.2M $157.1M $144.1M
Total Assets $1.352B $1.352B $1.746B
YoY Change -22.54% -22.54% 143.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $62.90M $65.40M $304.9M
YoY Change -79.37% -78.65% 92.53%
Accrued Expenses $172.2M $228.1M $183.8M
YoY Change -6.31% 10.28% -1.25%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $22.54M $22.50M $0.00
YoY Change
Total Short-Term Liabilities $745.7M $745.7M $1.109B
YoY Change -32.79% -32.79% 43.81%
LONG-TERM LIABILITIES
Long-Term Debt $28.02M $28.00M $0.00
YoY Change
Other Long-Term Liabilities $17.34M $17.30M $1.096M
YoY Change 1481.93% 721.07% -53.97%
Total Long-Term Liabilities $50.16M $45.30M $6.983M
YoY Change 618.26% 2049.98% 193.28%
TOTAL LIABILITIES
Total Short-Term Liabilities $745.7M $745.7M $1.109B
Total Long-Term Liabilities $50.16M $45.30M $6.983M
Total Liabilities $795.8M $949.8M $1.116B
YoY Change -28.72% -27.49% 44.27%
SHAREHOLDERS EQUITY
Retained Earnings -$174.2M -$104.5M
YoY Change 66.59% -62.57%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $7.797M $5.013M
YoY Change 55.54%
Treasury Stock Shares
Shareholders Equity $402.3M $402.3M $435.8M
YoY Change
Total Liabilities & Shareholders Equity $1.352B $1.352B $1.746B
YoY Change -22.54% -22.54% 143.24%

Cashflow Statement

Concept 2023 Q3 2023 2022 Q3
OPERATING ACTIVITIES
Net Income $3.268M -$69.62M -$37.15M
YoY Change -108.8% -33.37% -57.4%
Depreciation, Depletion And Amortization $2.925M $10.67M $2.216M
YoY Change 31.99% 344.38% 36.96%
Cash From Operating Activities $48.56M -$111.9M -$221.4M
YoY Change -121.93% -60.36% 75.76%
INVESTING ACTIVITIES
Capital Expenditures $3.064M $2.989M -$5.259M
YoY Change -158.26% -62.33% 306.73%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $1.000K $106.7M -$110.1M
YoY Change -100.0% -175.92%
Cash From Investing Activities -$3.063M $94.44M -$115.4M
YoY Change -97.35% -163.63% 8825.21%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.784M
YoY Change -44.46%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 5.000K $52.60M 1.593M
YoY Change -99.69% -93.56% -98.49%
NET CHANGE
Cash From Operating Activities 48.56M -$111.9M -221.4M
Cash From Investing Activities -3.063M $94.44M -115.4M
Cash From Financing Activities 5.000K $52.60M 1.593M
Net Change In Cash 45.50M $33.01M -335.3M
YoY Change -113.57% -91.57% 1431.67%
FREE CASH FLOW
Cash From Operating Activities $48.56M -$111.9M -$221.4M
Capital Expenditures $3.064M $2.989M -$5.259M
Free Cash Flow $45.50M -$114.9M -$216.2M
YoY Change -121.05% -60.42% 73.36%

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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:10.5pt">Organization and Operations</span><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 are 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, 2023, 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, Fluence Energy 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 2022” and “fiscal year 2023” refer to the fiscal years ended September 30, 2022 and September 30, 2023, 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, 2023, 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 “Siemens 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 Siemens Redemption through the issuance of 58,586,695 shares of the Company’s Class A common stock (the “Shares”). The Siemens 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 Siemens 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 Siemens Redemption been accounted for as an equity transaction and the carrying amount of non-controlling interest has been adjusted. Refer to “Consolidated 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-style:italic;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%">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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Files In Submission

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