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RNS Number : 0832B Invinity Energy Systems PLC 29 September 2022
The information contained within this Announcement is deemed by Invinity
Energy Systems plc to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018 ("MAR").
29 September 2022
Invinity Energy Systems plc
("Invinity" or the "Company")
Interim Results, Current Trading and Board Changes
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading
global manufacturer of utility-grade energy storage, is pleased to announce
its unaudited consolidated results for the six months ended 30 June 2022 (the
"Period") and an update on current trading.
Invinity's management team will host a virtual results presentation and
interactive Q&A for shareholders and retail investors at 4pm UK Time on
Wednesday 5 October 2022 via Investor Meet Company. Those wishing to join the
session can sign up for free via this registration link
(https://www.investormeetcompany.com/invinity-energy-systems-plc/register-investor)
.
Analysts wishing to cover the results are asked to contact ir@invinity.com
(mailto:ir@invinity.com) to request a pre-recorded results presentation
prepared by Invinity executives.
Board Changes
Peter Dixon-Clarke will step down from his role as Chief Financial Officer and
from the Board of Invinity, following the release of these Interim Results.
Chief Development Officer Jonathan Marren will additionally assume the role of
Interim CFO whilst the company concludes the search for a permanent successor.
Mr. Dixon-Clarke will remain with the Company for a period to assist in the
transition. Peter has been a valued member of the Company's executive
management team since his appointment in August 2020 and has made an important
contribution to the Group during his tenure as CFO.
HIGHLIGHTS
Financial
· Revenue for the Period of £1.4m (H1 2021: £0.015m);
· Period-end inventory of £10.9m, including prepaid inventory (H1
2021: £8.0m);
· Period-end cash of £16.1m (H1 2021: £10.9)
· The Group remains debt free, excluding leases.
Commercial
Invinity's commercial team has seen significantly increased sales interest in
the Company's products, driven in part by the successful delivery and
associated press coverage of 7.6 MWh of VS3s delivered to Energy Superhub
Oxford, Scottish Water and the European Marine Energy Centre (EMEC) in late
2021 and early 2022. Building on that interest, key developments during the
Period included:
· An 8.4 MWh vanadium flow battery ("VFB") system sale to Canadian
renewable energy project developer, owner and operator Elemental Energy;
· Securing funding under Phase 1 of the UK Government's Longer Duration
Energy Storage (LODES) competition to plan an up to 40 MWh VFB that, if
advanced to Phase 2 of the programme, is expected to be the UK's largest flow
battery project; and
· Signing an MoU with industrial conglomerate Hyosung Heavy Industries,
with the intention to partner with Hyosung to deliver Invinity's VFBs to
grid-scale projects in South Korea.
Reflecting this increased sales interest, the Company's latest commercial
opportunity pipeline for its VS3 battery product as at 22 September 2022 is
summarised below (next-generation product interest, while considerable, is not
included in these numbers):
Date Closed Base Advanced Qualified (MWh)
(MWh) (MWh) (MWh)
25 May 2022 (At FY21 results) 28.0 11.6 66.3 608.3
22 September 2022 (Current Trading) 28.0 22.8 63.5 405.8
% Change +0% +96% -4% -33%
Note: Definitions of Base, Advanced and Qualified categories can be found in
the Company's 2021 Annual Report.
The market continues to hold tremendous opportunities for Invinity's existing
and future products. Clients ranging from behind the meter users to
large-scale utility developers are engaging with the Company at an increasing
rate. Our focus has been on clients ready to commit to orders, a strategy
which has nearly doubled the number of potential new contracts approaching
close. These Base opportunities, and the group qualified as Advanced that will
join them if they progress, are the areas where Invinity's Commercial team are
focusing their efforts.
In addition to advancing sales of existing products, Invinity has received
positive preliminary feedback from prospective customers regarding its
next-generation product in development alongside Gamesa Electric.
Including sales made in the year to date, the Company's delivery backlog
currently totals £12.98m, the majority of which Invinity hopes to recognise
in the remainder of 2022, subject to suitable logistics arrangements and
customer sites being ready to receive and accept Invinity battery shipments.
Approximately 80% of the backlog figure relates to two projects, namely
Yadlamalka and Elemental Energy.
Operational
During the Period and in the year to date, Invinity made good progress
fulfilling its closed sales and enhancing its manufacturing capabilities.
Highlights included:
· 93 VS3 battery modules with a total capacity of more than 3 MWh were
shipped to site during the Period;
· Commencement of a significant expansion of its manufacturing
capabilities alongside partner Baojia New Energy, activity that was
subsequently completed in August 2022 with the shipping of the first
consignment of VS3 batteries destined for the Elemental Energy project in
Alberta; and
· General improvements to the macro supply chain environment for
Invinity as prices begin to normalise. For instance, in the year to date, the
Company has observed a c.60% reduction in the cost of shipping its products.
Invinity has also benefited from a c.14% reduction in the price of electrolyte
and begun to realise economies of scale through its new manufacturing
partnership with Baojia.
The Company is also pleased to announce it has now received confirmation from
its partners that the Yadlamalka Energy project will be relocated to a second
site in South Australia which is being developed by Invinity's customer as a
PV + Vanadium Flow Battery project. This confirmation means that the delivery
phase of the project can resume and the shipping of 8 MWh of Invinity VS3
batteries, manufacturing of which is already largely complete, can now
commence.
Corporate & Strategic
The Period saw Invinity make a number of important strategic developments
relating to its products, partners and corporate positioning. These included:
· In March 2022 Invinity's shares, and warrants created in the December
2021 placing, were admitted to trading on the Aquis Stock Exchange to provide
increased liquidity for Invinity shareholders;
· In April 2022, Invinity signed a MoU with Hyosung Heavy Industries to
initiate a strategic distribution partnership with the Korean firm for the
Company's batteries;
· In May 2022, Invinity announced its intention to materially expand
its corporate and commercial presence in the U.S. in response to attractive
market conditions; and
· In the year to date, Invinity has continued to make good progress
towards the milestones and stage gates set out as part of the joint
development and commercialisation programme with Gamesa Electric, a wholly
owned subsidiary of Siemens Gamesa Renewable Energy.
Post-Period, the Company signed an MoU with U.S. Vanadium in August 2022 with
the intention to form a joint venture which aims to manufacture and sell
vanadium flow batteries in the United States. The development represents an
important step forward in Invinity's U.S. expansion strategy and intends to
leverage government support announced as part of the Inflation Reduction Act
that was signed into law on 16 August 2022.
Outlook
Invinity expects to make material progress during the remainder of 2022 and
beyond on the following key areas:
· Capitalise on positive macro developments to conclude late-stage
commercial deals, demonstrating Invinity's VS3 product transition from pilot
projects to commercial projects;
· Deliver order backlog to customers, converting inventory into
revenue; and
· Progress the development of our next-generation product towards
commercial release alongside Gamesa Electric / Siemens Gamesa and take
advantage of the strong degree of commercial interest already shown in the
product (not currently reflected in the Invinity VS3-only sales pipeline).
Larry Zulch, Chief Executive Officer at Invinity said:
"We have made significant progress in our strategy to establish ourselves as
the premier alternative to lithium storage for large-scale, 4- to 12-hour
energy storage projects. The kind of progress we've made so far this year
isn't always as visible to the public as we would like, but our continued
discipline to focus on what we know will be the right outcome is, I strongly
believe, the path to Invinity's success in this vital and growing market."
Enquiries:
Invinity Energy Systems plc +44 (0)204 551 0361
Peter Dixon-Clarke, Chief Financial Officer
Joe Worthington, Director of Communications
Canaccord Genuity (Nominated Adviser and Joint Broker) +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor / Gordon Hamilton
VSA Capital (Financial Adviser and Joint Broker) +44 (0)20 3005 5000
Andrew Monk / Simon Barton
EAS Advisors LLC (US Corporate Advisor) +1 (646) 495 2225
Matthew Bonner / Chris Chesworth
Notes to Editors
Invinity Energy Systems plc (AIM:IES) (AQSE: IES) (OTCQX: IESVF) manufactures
vanadium flow batteries for large-scale, high-throughput energy storage
requirements of business, industry and electrical networks.
Invinity's factory-built flow batteries run continually with no degradation
for over 25 years, making them suitable for the most demanding applications in
renewable energy production. Energy storage systems based on Invinity's
batteries are safe, reliable, and economical, and range in size from less than
250 kilowatt-hours to tens of megawatt-hours.
Invinity was created in April 2020 through the merger of two flow battery
industry leaders: redT energy plc and Avalon Battery Corporation. With over 33
MWh of systems deployed to date across more than 50 sites in 15 countries,
Invinity is active in all major global energy storage markets and has
operations in the UK, Canada, USA, China and Australia. Invinity Energy
Systems plc is listed on the AIM Market of the London Stock Exchange and on
the Aquis Stock Exchange (AQSE). The Company trades in the USA on OTCQX Best
Market under the symbol "IESVF".
To find out more, visit invinity.com (https://invinity.com/?utm_source=rns) or
call Investor Relations on +44 (0)204 551 0361.
CEO's Report
Invinity's mission, to drive the transition to renewable energy with
utility-grade energy storage products, has been substantially supported by
global events during this Period and in the year to date. Weather events,
melting ice, and the desire for energy sovereignty have led to increased
commitments by governments throughout the globe to install renewable energy.
By its very nature, renewable energy requires energy storage, now being
increasingly supported by governments, particularly in the U.S.
I'm pleased to report that Invinity has made significant progress in its
initiatives - close sales, deliver products, and advance the joint development
of our next generation product - despite challenges, many of which are,
fortunately, now easing, even as some new ones emerge. Noting that the nature
of our business and the length of our sales cycle dictates that the majority
of our revenue is recognised in the second half of the year, our financial
results for the first half of 2022 are discussed below.
H1 2022 Financial Results
Revenue recognised in the six-month period to 30 June 2022 was £1.4m due
almost entirely to the successful delivery of the EMEC contract.
The cost of sales charged against the above revenue was £3.7m (2021: £0.8m)
of which £1.7m related to movement on inventories, with the balance charged
predominantly on other production costs. Over the Period, costs, particularly
of electrolyte and shipping, did finally start to reduce, a trend that has
continued since. Cost reduction remains a key focus for Invinity - allied with
the currently reducing electrolyte and shipping costs, the move to Baojia will
also enhance the benefits achieved from our existing manufacturing efficiency
gains as noted in the Full Year 2021 results.
Administrative expenses were £8.9m (2021: £5.9m). Of this £3.0m
period-on-period increase, £1.1m related to non-payroll research and
development, £1.1m to professional fees and £0.7m to payroll costs.
Other items of operating income and expense were £0.9m (2021: £1.9m)
predominantly reflecting transfer and decommissioning costs incurred, and to
be incurred, as part of the transition from BCI to Baojia as supplier of the
balance of systems.
Net of other movements, the above resulted in a loss for the period of £11.6m
(2021: £8.8m).
The period closed with an inventory balance of £10.9m, including £5.1m of
prepaid inventory, which provides a good head start for subsequent deliveries.
The Period opened with £26.4m of cash, due to the successful fund raising at
the end of 2021, and closed with £16.1m, a negative movement of £10.3m. A
summary of the cash flows is set out in the table below:
£m
Loss after income tax (11.6)
Adjustments for non-cash items 1.2
Increase in inventory & prepaid inventory (1.2)
Other changes in operating assets/liabilities 1.7
Investing activities (0.2)
Financing activities (0.2)
Movement (10.3)
Opening cash 26.4
Closing cash 16.1
In terms of use of funds, almost all of the £10.3m in the table above was
used for operating purposes and is further analysed in the table below.
£m
Loss for the period (11.6)
Less non-cash movements 1.2
(10.4)
Cash impact of gross loss (2.6)
Cash impact of operating costs (7.8)
(10.4)
The £7.8m of cash used for operating costs in the table above equates to a
monthly cash burn over the period of £1.3m per month.
Order Backlog and Commercial Pipeline
Closing sales remains our top priority. We have grown our near-term sales
pipeline significantly as market confidence in our products increases, the
result of successfully delivering key projects and our ability to bring
prospective customers on site to see successful installations. Delays in
delivering lithium batteries and the growing realisation that prices of
lithium batteries have not only stabilised but are likely to increase have
assisted our pipeline growth. We're pleased to see U.S. federal and state
government support for energy storage projects in addition to the support for
battery manufacture and supply chain support last year. We hope this will set
a positive example and be emulated in our other core markets of the UK and
Australia.
The UK remains a key market for us, with the BEIS-funded LODES project a
significant milestone in demonstrating the next phase of commercialising our
batteries. Winning the first phase of the program gives us confidence that we
can continue to advance this initiative.
We must acknowledge challenges as one of the first suppliers of
alternative-to-lithium products into commercial projects: the substantial
interest in our battery performance often requires some form of external
stimulus - it may be government grants or subsidies - to incentivise our
customers to make the switch away from so-called 'incumbent' technologies.
This underscores the importance of the U.S. Inflation Reduction Act and
supports our efforts to reduce our product costs. Aligning the various parties
involved has led to delays in concluding sales and has allowed us to develop
our expertise in navigating various interests and bureaucracies.
Manufacturing, Supply Chain and Delivery
Firstly, I'm very pleased to note that there have been no reportable health
& safety incidents at any Invinity sites in the year to date.
A key focus for Invinity during the Period was to successfully deliver our
contracted-for products. We learned a tremendous amount delivering, installing
and commissioning the UK's largest flow battery, a 5 MWh system at the Energy
Superhub Oxford ("ESO"), learnings we are successfully applying to subsequent
projects. We believe that ESO represents the most individual flow battery
modules (162) ever in one installation and getting them working well together
demonstrates our capability to deliver very large grid-scale projects once
larger modules are available from our joint development project with Gamesa
Electric and Siemens Gamesa.
During the Period, we installed and energised a 1.8 MWh flow battery at EMEC's
site in Eday, Orkney, turning episodic tidal power into a consistent
electricity source for an electrolyser creating green hydrogen. We
commissioned a 0.8 MWh flow battery at a Scottish Water site in Perth, UK
alongside solar power in support of Scottish Water's net zero initiative.
Post Period, the Company has continued to deliver customer projects and has
taken further steps to expand its operational capabilities in line with the
strategy set out in Invinity's 2021 Annual Report. This includes flow
batteries shipped to two sites in California, both funded by the California
Energy Commission ("CEC") for projects announced in H2 2021. This represents
the first shipments of VS3 batteries into the USA.
Invinity's manufacturing and installation teams are fully focused on the
delivery and subsequent recognition of revenue on the Yadlamalka and Elemental
Energy projects during the remainder of this year. However, as battery
deliveries are contingent on external factors often beyond Invinity's control
(e.g. customer site works, ancillary equipment delivery) it cannot be
guaranteed that all batteries will be delivered and handed over to the
customer by the end of 2022.
In relation to the Yadlamalka project, a new site has been confirmed, meaning
that the project delivery phase can now commence. The project size, use case,
operating strategy, and contractual relationship between Invinity and
Yadlamalka Energy remain substantially unchanged from the original project
announcement on 24 November 2020. The original Yadlamalka project site remains
under parallel development as a future PV + Vanadium Flow Battery project,
subject to outstanding permitting issues currently being resolved by the site
owner.
We've started shipments from the Company's new manufacturing partner, Baojia
New Energy ("Baojia"). This includes the August shipment of 1.1 MWh of
Invinity batteries destined for Elemental Energy's 8.4 MWh solar + storage
project in Alberta, Canada.
In addition to the successful expansion of manufacturing capacity with Baojia,
Invinity has also recently gained UL and CE certification for its VFB
products, having already achieved a triple ISO certification award earlier in
2022. These key industrial certifications are awarded to products which adhere
to the highest standards of operational excellence and safety and are often
required by customers for larger, utility scale projects.
The Company is in the process of completing an independent engineering review
of its products alongside leading assurance and risk company, DNV. This
activity is being undertaken as part of a wider initiative to gain an
independent bankability report for Invinity's products.
Corporate & Strategic Initiatives
There are three architectonic trends that will drive Invinity's success over
the next years:
1) Growing recognition of the central role of battery energy storage in
successful deployment of renewable energy;
2) The inability of lithium batteries to meet demand, not only because of
concerns about safety and longevity, but because the global transition to EVs
will demand more lithium batteries than can be produced, leaving few for
stationary energy storage, and those few will be more expensive and take
longer to ship; and
3) Proven alternatives to lithium batteries supported by credible
companies will be in great demand and Invinity is well-positioned to be such
an alternative.
In recognition of these trends, particularly the third one, Invinity has
focused on developing strategic partnerships. We have continued to make
progress on our next-generation flow battery being jointly developed with
Gamesa Electric and Siemens Gamesa Renewable Energy, code-named Mistral.
To enable us to address markets outside of our core three - UK, North America
and Australia - we have formed relationships such as the one we've announced
with Hyosung regarding the Korean market. Hyosung is an ideal partner with
considerable expertise and market access. We anticipate similar announcements
for other significant markets in the times to come.
We've announced a relationship with U.S. Vanadium, the most significant
producer of vanadium and vanadium electrolyte in the U.S., and our interest in
forming a joint venture that will take advantage of U.S. federal and state
government support for U.S. manufacturing and supply chain development.
The Company appointed Jonathan Marren as Chief Development Officer to develop
these and other prospective strategic partnership and corporate growth
opportunities. Jonathan combines considerable expertise in UK and global
markets with deep experience with Invinity as board member and Invinity's
predecessor redT energy as board member and CFO.
The Company has been executing on a U.S. strategy that includes the
aforementioned U.S. Vanadium relationship on the operations side. We engaged
EAS Advisors for assistance and commenced trading Invinity shares on the OTCQX
Best Market in August to support investors in North America and enhance
liquidity.
We started working with Aquis, trading both our shares and warrants on this
relatively new and innovative exchange. We received approval from the
Short-Term warrant holders to extend the Short-Term warrant maturity to
reflect current market conditions and delays in accomplishing some of our
stated objectives.
Outlook
Invinity will be focused on the three corporate priorities for the remainder
of 2022 and into 2023: 1) conclude commercial deals, demonstrating the
transition of the VS3 product from pilot projects to commercial projects; 2)
deliver on our backlog of closed contracts to customer sites, converting
inventory to revenue; and 3) progress the development of our next-generation
product under joint development with Gamesa Electric / Siemens Gamesa,
code-named Mistral.
By achieving these priorities, Invinity will be able to benefit from the
market trends we anticipate over the next two years that will drive dramatic
progress for energy storage in general and Invinity in particular. Those
trends start with a growing acknowledgement not just that the transition to
renewable energy requires energy storage, but that the duration of energy
storage required - filling in the missing hours each day, including be able to
operate overnight - matches the capabilities of Invinity's products.
Stabilising the grid is critical, but so is a consistent source of supply even
from intermittent renewable energy.
The next major market trend is that lithium-ion batteries - Invinity's primary
competitor - will be in short supply as the entire global production capacity
is used for the transition to EVs from ICE (internal combustion engine)
vehicles. We anticipate higher prices and project delays for stationary energy
storage projects that use lithium-ion batteries.
The U.S. government support for energy storage projects is highly significant
and helpful to Invinity. We already have a number of deals in our near-term
sales pipeline which the Inflation Reduction Act has accelerated. Other
governments may follow suit, concerned that they won't meet their targets and
will fall behind in their commitments to achieve net zero.
Into this mix, Invinity's VS3 product, despite being a predecessor project to
Mistral and therefore not as advanced in performance and cost-reduction,
becomes increasingly competitive. VS3 functions as a highly capable
intermediate step to Mistral, the product we anticipate will establish the
market benchmark for alternative-to-lithium storage.
Unaudited financial results for the six months to 30 June 2022
Unaudited consolidated statement of profit and loss
For the six months ended 30 June 2022
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
Continuing operations Note £000 £000 £000
Revenue 3 1,416 15 3,185
Cost of sales 4 (3,685) (756) (6,622)
Gross loss (2,269) (741) (3,437)
Operating costs
Administrative expenses 5 (8,860) (5,852) (14,439)
Other items of operating income and expense 7 (928) (1,856) (3,388)
Loss from operations (12,057) (8,449) (21,264)
Finance income 14 - -
Finance costs (22) (17) (45)
Gain/(loss) on foreign currency transactions 483 (343) (63)
Net finance costs 475 (360) (108)
Loss before income tax (11,582) (8,809) (21,372)
Income tax expense - - -
Loss from continuing operations (11,582) (8,809) (21,372)
Loss for the period/year (11,582) (8,809) (21,372)
Loss per ordinary share in pence
Basic 8 (10.0) (10.1) (24.1)
Diluted 8 (10.0) (10.1) (24.1)
The above unaudited consolidated statement of profit and loss should be read
in conjunction with the accompanying notes.
Unaudited consolidated statement of comprehensive income
For the six months ended 30 June 2022
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
Continuing operations Note £000 £000 £000
Loss for the year (11,582) (8,809) (21,372)
Other comprehensive income/(expense)
Exchange differences on the translation of foreign operations
652 26 10
Total comprehensive loss for the period/year (10,930) (8,783) (21,362)
The above unaudited consolidated statement of comprehensive income should be
read in conjunction with the accompanying notes.
Unaudited consolidated statement of financial position
At 30 June 2022
31 December 2021
30 June 2022 30 June 2021
Note £000 £000 £000
Non-current assets
Goodwill and other intangible assets 10 24,075 23,868 24,097
Property, plant and equipment 11 1,045 1,194 1,130
Right-of-use assets 1,806 967 975
Total non-current assets 26,926 26,029 26,202
Current assets
Inventories 12 5,794 3,379 5,797
Other current assets 13 6,640 6,965 6,280
Contract assets 14 326 2 324
Trade receivables 15 1,731 173 1,683
Cash and cash equivalents 16 16,130 10,942 26,355
Total current assets 30,621 21,461 40,439
Total assets 57,547 47,490 66,641
Current liabilities
Trade and other payables 17 (4,845) (3,340) (3,513)
Contract liabilities 14 (4,988) (5,656) (5,142)
Lease liabilities (1,075) (240) (350)
Provisions 14 (5,757) (2,462) (5,976)
Total current liabilities (16,665) (11,698) (14,981)
Net current assets 13,956 9,763 25,458
Non-current liabilities
Lease liabilities (582) (514) (420)
Total non-current liabilities (582) (514) (420)
Total liabilities (17,247) (12,212) (15,401)
Net assets 40,300 35,278 51,240
Share capital 50,714 38,283 50,690
Share premium 140,459 125,116 140,445
Share based payment reserve 5,245 4,541 5,293
Accumulated losses (155,139) (130,994) (143,557)
Currency translation reserve (1,018) (1,707) (1,670)
Other reserves 39 39 39
Total equity 40,300 35,278 51,240
The above unaudited consolidated statement of financial position should be
read in conjunction with the accompanying notes.
Unaudited consolidated statement of changes in equity
For the six months ended 30 June 2022
Called up share capital Share premium Share-based payment reserve Accumulated losses Currency translation reserve Other reserves Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2022 50,690 140,445 5,293 (143,557) (1,670) 39 51,240
Loss for the period
Other comprehensive gain/(loss) - - - (11,582) - - (11,582)
Foreign currency translation differences - - - - 652 - 652
Total comprehensive loss for the period - - - (11,582) 652 - (10,930)
Transactions with owners in their capacity as owners
Transaction costs charged directly to equity
- (25) - - - - (25)
Exercise of share options 24 37 (48) - - -- 13
Exercise of share warrants - 2 - - - - 2
Total contributions by owners 24 14 (48) - - - (10)
At 30 June 2022 50,714 140,459 5,245 (155,139) (1,018) 39 40,300
For the six months ended 30 June 2021
Called up share capital Share premium Share-based payment reserve Accumulated losses Currency translation reserve Other reserves Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2021 37,870 124,545 3,762 (122,185) (1,680) 39 42,351
Loss for the period - - - (8,811) - - (8,811)
Other comprehensive gain/(loss)
Foreign currency translation differences - - - - (26) - (26)
Total comprehensive loss for the period - - - (8,811) (26) - (8,837)
Transactions with owners in their capacity as owners
Contribution of equity, net of transaction costs
404 571 - - - - 975
Exercise of share options 9 - 17 - - - 26
Share-based payments - - 762 - - - 762
Total contributions by owners 413 571 779 - - - 1,763
At 30 June 2021 38,283 125,116 4,541 (130,996) (1,706) 39 35,277
The above unaudited consolidated statements of changes in equity should be
read in conjunction with the accompanying note.
Unaudited consolidated statement of changes in equity
For the year ended 31 December 2021
Called up share capital Share premium Share-based payment reserve Accumulated losses Currency translation reserve Other reserves Total
£000 £000 £000 £000 £000 £000 £000
At 1 January 2021 37,870 124,545 3,762 (122,185) (1,680) 39 42,351
Loss for the period - - - (21,372) - - (21,372)
Other comprehensive gain/(loss)
Foreign currency translation differences - - - - 10 - 10
Total comprehensive loss for the period - - - (21,372) 10 - (21,362)
Transactions with owners in their capacity as owners
Contribution of equity, net of transaction costs
12,286 15,148 - - - - 27,434
Exercise of share options 534 752 (296) - - - 990
Share-based payments - - 1,827 - - - 1,827
Total contributions by owners 12,820 15,900 1,531 - - - 30,251
At 31 December 2021 8,811 8,811 8,811 8,811 8,811 8,811 8,811
The above unaudited consolidated statements of changes in equity should be
read in conjunction with the accompanying note.
Unaudited consolidated statement of cash flows
For the six months ended 30 June 2022
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
Note £000 £000 £000
Cash flows from operating activities
Cash used in operations 8 (9,938) (11,497) (22,964)
Interest received 14 - -
Interest paid (22) (1) -
Income taxes paid - - -
Net cash outflow from operating activities (9,946) (11,498) (22,964)
Cash flows from investing activities
Acquisition of intangible assets 10 - (19) (18)
Acquisition of property, plant and equipment 11 (206) (609) (733)
Net cash outflow from investing activities (206) (628) (751)
Cash flows from financing activities
Payment of lease liabilities (222) (17) (320)
Proceeds from the issue of share capital, net of transaction costs
- 975 27,434
Transaction costs charged directly to equity (25) - -
Proceeds from the exercise of share options and warrants
62 1 990
Net cash inflow from financing activities (185) 959 28,104
Net increase/(decrease) in cash and cash equivalents
(10,337) (11,167) 4,389
Cash and cash equivalents at the start of the period/year
26,355 21,953 21,953
Effects of exchange rate changes on cash and cash equivalents
112 156 13
Cash and cash equivalents at the end of the period/year
16,130 10,942 26,355
The above unaudited consolidated statement of cash flows should be read in
conjunction with the accompanying note.
Notes
(forming part of the unaudited consolidated historical financial information)
1: General Information
Invinity Energy Systems plc (the 'Company') is a public company limited by
shares incorporated and domiciled in Jersey. The registered office address is
Third Floor, IFC5, Castle Street, St. Helier, JE2 3BY, Jersey.
The Company is listed on the AIM Market of the London Stock Exchange with the
ticker symbol IES.L and on the Aquis Stock Exchange (AQSE). The Company trades
in the USA on OTCQX Best Market under the symbol "IESVF".
The principal activities of the Company and its subsidiaries (together the
'Group') relate to the manufacture and sale of vanadium flow battery systems
and associated installation, warranty and other services.
2: Summary of significant accounting policies
Basis of preparation
This unaudited condensed consolidated interim financial information for the
six-months ended 30 June 2022 (the 'interim financial information') has been
prepared in accordance with IAS 34, 'Interim financial reporting' as adopted
by the European Union. The financial information should be read in conjunction
with the Group's annual financial statements for the year ended 31 December
2021, that were prepared in accordance with International Financial Reporting
Standards as adopted by the European Union.
The annual report and financial statements for the year ended 31 December 2021
are available on the company's website (www.invinity.com
(http://www.invinity.com) ).
This interim financial information has been prepared using the historical cost
basis of accounting. The accounting policies applied across all the Group's
subsidiaries when preparing the financial information are consistent with
those adopted and disclosed in the annual financial statements for the year
ended 31 December 2021. The accounting policies have been consistently applied
across all Group entities for the purpose of producing this interim financial
information.
The financial information included in this document does not comprise
statutory accounts within the meaning of Companies (Jersey) Law 1991. The
comparative figures for the financial year ended 31 December 2021 are not the
company's statutory accounts for that financial year within the meaning of
Companies (Jersey) Law 1991. Those accounts have been reported on by the
company's auditors and delivered to the Jersey Financial Services Commission.
The report of the auditors included in the annual report and financial
statements for the year ended 31 December 2021 was unqualified. However, the
auditors' report did contain an emphasis of matter related to the application
of the going concern basis of preparation.
The Group's business activities, together with factors likely to affect its
future development, performance and position, are set out in the operations
and financial review sections of this report.
The financial position of the Group, its cash flows and liquidity position are
described in the financial review section.
Going concern
Over the next 12-months the Group expects to receive approximately £7.7m of
milestone payments under existing contracts. As these payments become due on
the successful delivery of future milestones, they have not yet been
recognised in the balance sheet as receivable. Over 80% of the balance relates
to two contracts, being Yadlamalka and Elemental.
In addition to the above, and within the next 12-months, the Group expects to
close and deliver a number of new contracts. Work is also continuing on the UK
Government's LODES competition with an announcement of the winner, or winners,
in early 2023 followed by contracting and the payment of a material deposit.
LODES, if Invinity is successful, is to be delivered in 2024.
Other than for LODES, which is denominated in GB£, almost all of the
contracts discussed above are denominated in US$, Canadian $ or Australian $.
As battery material costs are predominantly US$ denominated, this insulates
the Group's operational receipts to a large degree against any further
devaluation of GB£.
Outside of operational matters, on the 31 August 2022 the Short-Term
Warrantholders voted to extend the expiry date of the Short-Term warrants by
one year from 15 September 2022 to 15 September 2023. The exercise price of
the Short-Term warrants remains unchanged at 150p. Should some, or all, of
these warrants be exercised prior to their expiry then the company will
receive up to an additional £21.8m of cash.
Whilst the Group continues to demonstrate resilience in the face of ongoing
global challenges, as with many operations at this stage of development, it
remains reliant on timely receipts and closely managed costs. Should existing
contracts be delivered more than three-months late or the Group fail to win
LODES, or an equivalent contract, early next year then, assuming the Group
maintains its current operational capacity, it will be necessary to raise
further funding within the next 12-months in order to continue trading and
delivering on the current strategic objectives.
The Group's need to secure receipts through delivering existing contracts,
winning new contracts or the exercise of some, or all, of the short-term
warrants creates a material uncertainty that casts significant doubt about its
ability to continue as a going concern. The financial statements do not
include the adjustments that would result if the Group were unable to continue
as a going concern.
In addition to the issues discussed above, the directors have also reviewed
other varying and wide-ranging information relating to both present and future
conditions when reaching their conclusion on going concern. These included
the:
· growing opportunities presented by the emergent energy storage
market;
· growing levels of Government engagement and support in its three key
markets, particularly the USA with the recent passing of the Inflation
Reduction Act and the earmarking of $369bn for transitional energy projects;
and
· continued strength in the sales pipeline, currently showing 492 MWh
of interest, of which nearly 23 MWh is in final contracting stage.
Estimates and judgments
The preparation of interim financial information requires management to make
judgments, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets and liabilities and of items of
income and expense. Actual results may differ from these estimates.
In preparing this interim financial information, the significant judgments
made by management in applying the Group's accounting policies were the same
as those that applied to the consolidated financial statements for the year
ended 31 December 2021. Similarly, the key sources of estimation uncertainty
related to the financial information were the same as those encountered when
applying the Group's accounting policies in relation to the preparation of the
consolidated financial statements for the year ended 31 December 2021.
Principal risks and uncertainties
In preparing the condensed consolidated financial information, management is
required to consider the principal risks and uncertainties facing the Group.
In management's opinion the principal risks and uncertainties facing the Group
are unchanged since the preparation of the consolidated financial statements
for the year ended 31 December 2021. Those risks and uncertainties, together
with management's response to them are described in the risk review section of
the annual report and financial statements for the year ended 31 December
2021.
Accounting policies
The accounting policies applied in this condensed consolidated financial
information are consistent with those applied in preparing the financial
statements for the year ended 31 December 2021.
3: Revenue from contracts with customers and income from government grants
Segment information
The Group derives revenue from a single business segment, being the
manufacture and sale of vanadium flow battery systems and related hardware
together with the provision of services directly related to battery systems
sold to customers.
The Group is organised internally to report on its financial and operational
performance to its chief operating decision maker, which has been identified
as the three executive directors as a group.
All revenues were derived from continuing operations.
Revenue from contracts with customers
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Battery systems and associated control systems 1,412 - 2,481
Integration, commissioning and other related services - 14 701
Other services 4 1 3
Total revenue in the statement of profit and loss 1,416 15 3,185
Grant income other than revenue
The Group receives grant income to help fund certain projects that are
eligible for support, typically in the form of innovation grants. The Group
also received grant income related to operating costs under government subsidy
programmes as part of national COVID response efforts. The total grant income
that was received in the period was as follows:
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Business support grants against employee costs COVID-19
- - 156
Grants for research and development 282 471 302
Total government grants received 282 471 458
4: Cost of sales
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Movement in inventories of finished battery systems 1,679 - 5,240
Production costs 1,617 318 826
Depreciation of production facilities, equipment and amortisation of
intangibles
88 77 116
Movement in provisions for warranty costs 301 361 440
Total cost of sales 3,685 756 6,622
5: Administrative expenses
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Staff costs 4,378 3,669 8,980
Research and development costs 1,428 288 1,792
Professional fees 1,496 371 1,950
Sales and marketing costs 183 222 249
Facilities and office costs 210 358 655
Other administrative costs 1,165 944 813
Total administrative expenses 8,860 5,852 14,439
6: Staff costs
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Wages and salaries 5,239 2,731 7,617
Employer payroll taxes 530 366 625
Other benefits 534 136 508
Share-based payments (281) 762 1,827
Total staff costs 6,022 3,995 10,577
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
Staff costs charged to cost of sales 1,644 326 1,597
Staff costs charged to cost of administrative expenses 4,378 3,669 8,980
Total staff costs 6,022 3,995 10,577
7: Other items of operating income and expense
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Provision for onerous contracts, net of amounts used (364) 700 3,762
Transfer agreement 1,240 - -
Impairment of inventory to net realisable value - 1,061 -
Impairment of property, plant and equipment - - 60
Charge/(reversal) of impairment of obsolete inventory and disposal of scrap
inventory
52 95 (390)
Profit on disposal of subsidiary - - (15)
Gain on curtailment of right-of-use asset - - (29)
Total other operating income and expenses (net) 928 1,856 3,388
In June 2022 the company announced that it would be moving production from
Brantingham & Carroll International (BCI), the supplier of its balance of
system, to Baojia. An agreement to this effect was signed shortly thereafter
in July 2022.
The agreement will make whole certain past under-recoveries by BCI as well as
allowing sufficient time to complete the current production orders; transfer
the requisite production 'know how' to Baojia and decommission the BCI
facility. Accordingly, a provision of $1.6m has been made.
8: Loss per share
The weighted average number of shares used to calculate basic and diluted loss
per share as presented in the consolidated statement of comprehensive loss was
as follows:
Six months ended Restated Year ended 31 December 2021
30 June 2022 Six months ended
30 June 2021
£000 £000 £000
In issue at 1 January 116,048,604 85,900,616 85,900,616
Share issued in the year - weighted average 363 807,258 2,868,134
Weighted average shares in issue at the end of the period 116,048,967 86,707,874 88,768,750
Effect of employee share options and warrants not exercised 30,609,160 5,197,536 31,023,769
Weighted average number of diluted shares at the period end 146,658,127 91,905,410 119,792,519
Additional potential shares used in the calculation of diluted earnings per
share primarily relate to potential shares that may be issued in satisfaction
of in-the-money employee share options. In addition, potentially dilutive
shares also relate to warrants to subscribe for ordinary shares in the company
that were issued for services or related to financing transactions that have
an exercise price lower than the quoted share price and remain outstanding at
the relevant period end.
Where additional potential shares have an anti-dilutive impact on the
calculation of loss per share calculation, such potential shares are excluded
from the weighted average number of shares used in the calculation.
Additional potential shares are anti-dilutive where their inclusion in the
calculation of loss per share results in a lower loss per share.
9: Cash flows from operating activities
Six months ended Six months ended Year ended 31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Loss after income tax (11,582) (8,809) (21,372)
Adjustments for:
Depreciation and amortisation 655 188 727
Impairment of inventory 51 1,156 (390)
Share-based payments charge (48) 756 1,827
Net finance costs/income 9 17 -
Net foreign exchange differences 562 62 (27)
(10,353) (6,600) (19,235)
Changes in operating assets and liabilities
(Increase)/decrease in inventory 260 (3,630) (4,487)
(Increase)/decrease in contract assets - 3 (319)
(Increase) in trade receivables and other receivables (12) (140) (1,650)
(Increase) in other assets and prepaid inventory (130) (5,551) (4,866)
Increase in trade payables 1,164 874 1,046
Increase/(decrease) in warranty provision 46 (115) 293
Increase/(decrease) in onerous contract provision (622) 650 3,756
Increase/(decrease) in contract liabilities (291) 3,012 2,498
415 (4,897) (3,729)
Cash used in operations (9,938) (11,497) (22,964)
10: Goodwill and intangible assets
Goodwill Patents and certifications Software and domain names Total
£000 £000 £000 £000
Cost
At 1 January 2022 23,944 203 47 24,194
Additions - - - -
Disposals - - - -
Effects of movements in foreign exchange - - 5 5
At 30 June 2022 23,944 203 52 24,199
Accumulated amortisation
At 1 January 2022 - (71) (26) (97)
Amortisation charge - (20) (4) (24)
Disposals - - - -
Effects of movements in foreign exchange - - (3) (3)
Amortisation at 30 June 2022 - (91) (33) (124)
Net book value
At 1 January 2022 23,944 132 21 24,097
At 30 June 2022 23,944 112 19 24,075
Restated Goodwill Patents and certifications Software and domain names Total
£000 £000 £000 £000
Cost
At 1 January 2021 23,944 203 29 24,176
Additions - - 19 19
Disposals - - - -
Effects of movements in foreign exchange (254) - - (254)
At 30 June 2021 23,690 203 48 23,941
Accumulated amortisation
At 1 January 2021 - (30) (19) (49)
Amortisation charge - (20) (4) (24)
Disposals - - - -
Effects of movements in foreign exchange - - - -
Amortisation at 30 June 2021 - (50) (23) (73)
Net book value
At 1 January 2021 23,944 173 10 24,127
At 30 June 2021 23,690 153 25 23,868
Goodwill Patents and certifications Software and domain names Total
£000 £000 £000 £000
Cost
At 1 January 2021 23,944 203 29 24,176
Additions - - 18 18
Disposals - - - -
Effects of movements in foreign exchange - - - -
At 31 December 2021 23,944 203 47 24,194
Accumulated amortisation
At 1 January 2021 - (30) (19) (49)
Amortisation charge - (41) (7) (48)
Disposals - - - -
Effects of movements in foreign exchange - - - -
Amortisation at 31 December 2021 - (71) (26) (97)
Net book value
At 1 January 2021 23,944 173 10 24,127
At 31 December 2021 23,944 132 21 24,097
Goodwill
All goodwill is tested annually for impairment. At 31 December 2021, goodwill
was tested for impairment using a fair value less costs of disposal
methodology by reference to the Company's quoted market capitalisation using
the price of 92.5 pence per share at that date. No impairment loss was
identified in relation to goodwill. The closing share price on 26 September
2022 was 31p, giving a market capitalisation of £36.0m which may indicate a
potential impairment.
Patents and certifications
There have been no events or circumstances that would indicate that the
carrying value of patents and certifications may be impaired at 30 June 2022.
11: Property, plant and equipment
Computer and office equipment Leasehold improvements Vehicles and equipment Total
£000 £000 £000 £000
Cost
At 1 January 2022 780 681 1,165 2,626
Additions 35 96 75 206
Disposals - - - -
Effects of movements in foreign exchange 20 19 77 116
At 30 June 2022 835 796 1,317 2,948
Accumulated Depreciation
At 1 January 2022 (653) (427) (416) (1,496)
Depreciation charge (120) (78) (152) (350)
Disposals - - - -
Effects of movements in foreign exchange (14) (11) (32) (57)
Depreciation at 30 June 2022 (787) (516) (600) (1,903)
Net book value
At 1 January 2022 127 254 749 1,130
At 30 June 2022 48 280 717 1,045
Computer and office equipment Leasehold improvements Vehicles and equipment Total
£000 £000 £000 £000
Cost
At 1 January 2021 748 513 753 2,014
Additions 60 23 526 609
Disposals - - - -
Effects of movements in foreign exchange - 1 3 4
At 30 June 2021 808 537 1,282 2,627
Accumulated Depreciation
At 1 January 2021 (694) (357) (268) (1,319)
Depreciation charge (22) (22) (70) (114)
Disposals - - - -
Effects of movements in foreign exchange - - - -
Depreciation at 30 June 2021 (716) (379) (338) (1,433)
Net book value
At 1 January 2021 54 156 485 695
At 30 June 2021 92 158 944 1,194
Computer and office equipment Leasehold improvements Vehicles and equipment Total
£000 £000 £000 £000
Cost
At 1 January 2021 748 513 753 2,014
Additions 158 169 406 733
Disposals (123) - - (123)
Effects of movements in foreign exchange (3) (1) 6 2
At 31 December 2021 780 681 1,165 2,626
Accumulated Depreciation
At 1 January 2021 (694) (357) (268) (1,319)
Depreciation charge (85) (71) (145) (301)
Disposals 123 - - 123
Effects of movements in foreign exchange 3 1 (3) 1
Depreciation at 31 December 2021 (653) (427) (416) (1,496)
Net book value
At 1 January 2021 54 156 485 695
At 31 December 2021 127 254 749 1,130
The Group has no assets pledged as security. No amounts of interest have been
capitalised within property, plant and equipment at 30 June 2022 (2021:
£nil).
12: Inventory
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Raw materials and consumables 695 3,330 1,897
Work in progress 5,099 49 3,900
Finished goods - - -
Total inventory 5,794 3,379 5,797
13: Other current assets
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Prepayments and deposits 1,182 795 533
Prepaid inventory 5,074 4,632 4,112
Government grants receivable - 267 -
Tax credits recoverable 345 371 247
Due from joint venture - 436 -
Other receivables 39 464 1,388
Total other current assets 6,640 6,965 6,280
Prepaid inventory is recognised on inventory payments where physical delivery
of that inventory has not yet been taken by the Group and is stated at the
lower of cost and net realisable value.
14: Contract related balances
31 December 2021
30 June 2022 30 June 2021
£000 £000 £000
Amounts due from customer contracts included in trade receivables
1,731 173 1,683
Contract assets (accrued income for work done not yet invoiced)
326 2 324
Contract liabilities (deferred revenue related to advances on customer
contracts)
(4,988) (5,656) (5,142)
Net position of sales contracts (2,931) (5,481) (3,135)
No revenue was recognised in the current or prior periods that was recorded as
a contract liability at the end of the previous period.
Provisions related to contracts with customers
Warranty provision Legacy products provision Provision for contract losses Total
£000 £000 £000 £000
At 1 January 2022 257 860 4,859 5,976
Charges to profit or loss
§ Provided in period 46 - - 46
§ Unused amounts reversed - - - -
§ Amounts used in period - - (364) (364)
§ Movements due to foreign exchange
3 96 - 99
At 30 June 2022 306 956 4,495 5,757
Restated Restated Provision for contract losses Total
Warranty provision Legacy products provision
£000 £000 £000 £000
At 1 January 2021 - 824 1,103 1,927
Charges to profit or loss
§ Provided in period - 318 1,003 1,321
§ -Unused amounts reversed - (2) (353) (355)
§ Amounts used in period - (431) - (431)
At 30 June 2021 - 709 1,753 2,462
Restated Restated Provision for contract losses Total
Warranty provision Legacy products provision
£000 £000 £000 £000
At 1 January 2021 - 824 1,103 1,927
Charges to profit or loss
§ Provided in period 257 36 4,028 4,321
§ -Unused amounts reversed - - (51) (51)
§ Amounts used in period - - (221) (221)
At 31 December 2021 257 860 4,859 5,976
Warranty provision
The warranty provision represents management's best estimate of the costs
anticipated to be incurred related to warranty claims, both current and
future, from customers in respect of goods and services sold that remain
within their warranty period. The estimate of future warranty costs is updated
periodically based on the Company's actual experience of warranty claims from
customers.
The element of the provision related to potential future claims is based on
management's experience and is judgmental in nature. As for any product
warranty, there is an inherent uncertainty around the likelihood and timing of
a fault occurring that would cause further work to be undertaken or the
replacement of equipment parts.
A standard warranty of up to two years from the date of commissioning is
provided to all customers on goods and services sold and is included in the
original cost of the product. Customers are also able to purchase extended
warranties that extend the warranty period for up to a total of ten years.
Provision for legacy products
Where it is considered of commercial value, management has elected to provide
ongoing maintenance for certain legacy products not otherwise covered under
warranty. Management has determined that it is necessary to provide for the
costs of this ongoing maintenance or to provide for outright decommissioning.
The prior year presentation has been re-stated to reflect this.
Provisions in respect of legacy products are expected to unwind over the next
two years when maintenance is either terminated or the products are
decommissioned.
Provision for contract losses
A provision is established for contract losses when it becomes known that a
contract has become onerous. A contract is onerous when the unavoidable costs
of fulfilling the Group's obligations under a contract are greater than the
revenue that will be earned from it.
The unavoidable costs of fulfilling contract obligations will include both
direct and indirect costs.
The creation of an additional provision is recognised immediately in profit
and loss. The provision is used to offset subsequent costs incurred as the
contract moves to completion.
15: Trade and other receivables
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Trade receivables from contracts with customers 1,754 173 1,683
Provision for doubtful receivables (23) - -
Total trade and other receivables 1,731 173 1,683
All trade and other receivables relate to receivables arising from contracts
with customers.
Trade receivables are amounts due from customers for sales of vanadium flow
battery systems in the ordinary course of business. Trade receivables do not
bear interest and generally have 30-day payment terms and therefore are all
classified as current.
16: Cash and cash equivalents
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Cash at bank and in hand 16,130 10,752 26,355
Short term investments - 190 -
Total cash and cash equivalents 16,130 10,942 26,355
Short term investments
Term deposits are presented as cash equivalents if they have a maturity of
three months or less from the date of acquisition and are repayable with 24
hours' notice with no loss of interest.
17: Trade and other payables
30 June 2022 30 June 2021 31 December 2021
£000 £000 £000
Trade payables 2,262 1,272 1,484
Other payables 371 546 456
Accrued liabilities 1,964 1,310 1,013
Accrued employee compensation 247 207 505
Government remittances payable 1 5 55
Total trade and other payables 4,845 3,340 3,513
Trade payables are unsecured and are usually paid within 30 days.
The carrying amounts of trade and other payables are the same as their fair
values due to the short-term nature of the underlying obligation representing
the liability to pay.
18: Events occurring after the reporting period
On 27 June the Company announced an agreement, subsequently signed in July,
with Brantingham & Carroll International (BCI), the supplier of its
balance of system, to conduct an orderly transfer of that supply to Baojia.
The transfer will allow sufficient time for BCI to complete the current
production orders outstanding; transfer the requisite production 'know how' to
Baojia for future orders and decommission its factory. The total value of the
goods and services to be provided under the transfer agreement are expected to
be approximately $10.0m, of which $5.5m is expected to be capitalised as
inventory and $2.9m expensed over the remaining manufacturing and
decommissioning period. As the transfer was announced by the Company in June
2022 the $1.6m transfer fee has been provided for in the accounts to 30 June
2022.
On 7 July the Company announced the appointment of Jonathan Marren as Chief
Development Officer with effect from 11 July 2022. Jonathan has served as a
Non-Executive director since the company merged in April 2020 and will remain
on the Board of Invinity as an Executive Director.
On 8 August the Company announced the commencement of U.S. trading in
Invinity's shares on the OTCQX Best Market under the ticker "IESVF".
On 16 August the Company announced that it had signed a Memorandum of
Understanding ("MoU") with U.S. Vanadium LLC ("USV") which expresses mutual
intent to create a U.S.-based joint venture ("JV") focused on building and
selling vanadium flow batteries in the U.S. The non-binding MoU outlines the
principal terms under which the JV, to be owned 50:50 by Invinity and USV,
will combine Invinity's flow battery expertise with USV's ability to supply
high-quality vanadium electrolyte from high-purity vanadium, both of which USV
produces at a facility in Arkansas.
Following the announcement to transfer to Baojia, discussed above, on 30
August the Company announced that 1.1 MWh of Invinity batteries had been
shipped from Baojia's facility in Suzhou China. The batteries will form part
of the 8.4 MWh order placed by Elemental Energy for their project in the
Canadian province of Alberta announced on 3 February 2022. The batteries were
shipped to Invinity's facility in Vancouver where they will undergo final
assembly and testing ahead of expected delivery in Q4 2022.
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