Quanergy Reports Second Quarter 2022 Financial Results

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Reserves of the last 12 months of $8. 8 million; one hundred percent growth year over year

SUNNYVALE, Calif. , August 11, 2022–(BUSINESS WIRE)–Quanergy Systems, Inc. (NYSE: QNGY) (“Quanergy”), a leading provider of LiDAR sensors and smart 3D solutions, announced monetary effects for the 3 months ended June 30, 2022.

This press is multimedia. Read the full press here: https://www. businesswire. com/news/home/20220811005504/en/

Highlights of the second quarter of 2022

Bookings in the last 12 months1 increased one hundred percent year-over-year to $8. 8 million

Second quarter sales of $1. 2 million, within forecast range, up 31% year-over-year

GAAP net loss for the current quarter of $25. 7 million, to $20. 5 million in the current quarter of 2021

Adjusted EBITDA loss of $12. 5 million in the current quarter, compared to $6. 6 million in the current quarter of 2021, an accumulation primarily due to additional acquisition costs, expansion investments, and public corporate costs.

End of the quarter with money, money equivalents and allocated money of $18. 8 million

“The timing of the quarter marked the continuation of our expansion trajectory, with the company posting its fifth consecutive annual increase in quarterly revenue. Our business is in expansion mode, supported by strong increases in bookings, transaction duration and number of pipeline visitors,” said Kevin Kennedy, President and Chief Executive Officer. “We expect our bookings and revenue to continue to gain advantages from market-responsive construction, repeatability and scale, thanks to the incredible accuracy, functionality and overall ownership of our security, commercial and control solutions. “

1

Reservations are explained as non-cancellable orders that are expected to be delivered within 12 months of receipt of the purchase order.

Financial results for the second quarter of 2022

Revenue for the current quarter of 2022 was $1. 2 million, compared to $905,000 in 2021, representing a year-over-year growth of 31%. the company’s production capacity and the timing of some reserves gained at the end of the quarter.

GAAP gross profit was negative to $1. 3 million for the quarter, compared to $145,000 in the current quarter of 2021. Excluding stock-based reimbursement expense, the non-GAAP adjusted gross revenue stream was negative to $1. 1 million for the quarter, compared to $166,000 in the current quarter. Quarter of 2021. La non-GAAP adjusted gross revenue source in the current quarter of 2022 was impacted by additional acquisition prices of $1. 1 million spent in the quarter, continued supply chain constraints, and transition production pricing.

GAAP net loss of $25. 7 million for the quarter, compared to $20. 5 million for the same era in 2021.

The adjusted EBITDA loss for the current quarter of 2022 was $12. 5 million, compared to $6. 6 million for the same period in 2021, accumulation basically due to acquisition surcharges, increased investments for expansion and public corporate costs.

As of June 30, 2022, the Company had $18. 8 million in money, equivalents of money and money allocated to its balance sheet. During the current quarter, $9. 9 million was drawn from GEM’s percentage acquisition facility, leaving a notable $115 million under the Facility.

Net money from operating activities was negative at $10. 6 million in the current quarter of 2022, compared to a negative price of $7. 8 million in the current quarter of 2021. Free money was negative at $10. 8 million in the current quarter of 2022, compared to negative $7. 9 million in the last year period.

Key Operational Highlights

Multi-million dollar agreement signed with Prime Secured for surveillance and access control at a primary casino

Audio Technology decided on Quanergy’s M-series sensors and QORTEX DTC belief software to provide perimeter intrusion detection for a critical military in Egypt.

Nanjing Port Group Selects Quanergy M-Series Sensors to Reduce Injuries and False Alarms in China’s Busy Port

Quanergy and PARIFEX have teamed up on the first 3-D LiDAR-based road compliance and tracking formula that has been qualified through a French regulatory body.

Introducing the M1 Edge PoE sensor, the world’s first 360° 2D POE LiDAR sensor, which provides higher detection accuracy at a lower price than competing services for perimeter intrusion detection and commercial applications.

Welcome to Lori Sundberg as Director of Human Resources; Lori is a well-rounded HR specialist who has held leadership positions at Western Digital, Jacobs, American Express, among others.

Appointed Lisa Kelley to the Board of Directors in August 2022; Lisa is an experienced finance and operations manager, with over 25 years of good fortune in many industries, adding electronics and manufacturing.

Outlook for 2022

The customer call for Quanergy’s responses is constructive, as evidenced by booking expansion and other metrics, adding pipeline expansion and expansion and progression trends.

Quanergy lately expects reserves for 2022 of $14. 0 million to $18. 0 million, in line with previous forecasts and representing medium-term growth of 121% year-over-year.

Due to increased production capacity and continued chain constraints, Quanergy expects a profit for the third quarter of 2022 of $1. 75 million to $2. 5 million and a profit for the year 2022 of $7. 0 million to $9. 0 million.

The Company’s expectations are estimated for the third quarter of 2022 and the full year of 2022. Actual revenue for the third quarter of 2022 and the full year of 2022 are subject to the final touch of the Company’s monetary closing procedures for the period and the actual and reported monetary effects for the third quarter of 2022 and the full year. 2022 may differ materially. As such, the Company’s expectations for the third quarter of 2022 and the full year 2022 are inherently unpredictable and actual effects and effects may also differ materially for a variety of reasons, adding the points discussed in the “Forward-Looking Statements. “

Second Quarter 2022 Conference Call and Webcast Quanergy is a conference call and webcast today, August 11, 2022, starting at 4:30 p. m. m. And to talk about the company’s initial effects for the current quarter of 2022 and other matters. to the general public. The convention call number is 201-389-0920 and the convention identification number is the 13731117 (national or international). Call five minutes before the presentation to make sure you are logged in.

At Quanergy Systems, Inc. The Quanergy Project (NYSE: QNGY and QNGY. WS) is to create smart, hard and affordable LiDAR responses for automotive and IoT applications for the fun and safety of people. State CMOS LiDAR sensor based on optical phase matrix generation (OPA) to enable mass production of highly reliable and low-cost 3D LiDAR responses. With Quanergy’s smart LiDAR responses, companies can now leverage complex, real-time 3D data to reshape their operations across a variety of industries, adding business automation, physical security, smart cities, smart spaces, and much more. Quanergy’s responses are implemented through approximately 400 consumers worldwide. For more information, visit us at www. quanergy. com.

Non-GAAP Financial Measures

In addition to its effects decided in accordance with accounting principles sometimes accepted in the United States (“GAAP”), Quanergy believes that the non-GAAP measures of adjusted gross profit, adjusted EBITDA and free cash flow are useful in comparing the functionality of your operations. . Quanergy calculates non-GAAP adjusted gross profit as gross profit by adding included stock-based reimbursement expenses charged to goods sold. Quanergy calculates non-GAAP Adjusted EBITDA as net loss by adding stock-based redemption expense, amortization, interest expense and source of income, replacement at fair price of derivatives, gain on the cancellation of the PPP loan and the provision for the tax on the source of income (benefit). Quanergy believes that Non-GAAP Adjusted Gross Profit and Non-GAAP Adjusted EBITDA can be useful to investors because they provide consistency and comparability with functionality beyond monetary and can be helpful in comparing with other companies, some of which use similar non-GAAP data to supplement its GAAP effects. Free cash flow is a non-GAAP monetary measure. Management believes, however, that free cash flow is a vital monetary measure for comparing the Company’s monetary functionality, as it measures the Company’s ability to generate more money from its business activities. Quanergy defines free cash flow as operating cash flow minus capital expenditures. Free money flow deserves to be considered in addition to, rather than replacing, net loss as a measure of functionality or net money supplied through operating activities as a measure of liquidity. Therefore, Quanergy believes it is critical to consider loose cash flow as a complement to cash flow in general. Non-GAAP monetary data is presented for supplemental data purposes only and should not be considered a replacement for monetary data presented in accordance with GAAP and may differ from similarly titled non-GAAP measures used by other companies. other companies. Reconciliation tables of comparable maximum GAAP monetary measures to non-GAAP monetary measures are included at the end of this news release.

Forward-Looking Statements

This press release contains forward-looking statements that are not past facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements sometimes are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “should,” “plan” Matrix ” expected”, “prospective”. seem’, ‘seek’, ‘long-term’, ‘prospects’, ‘project’, ‘probably will result’ and similar expressions that are looking forward to or imply long-term occasions or trends or are not statements of old affairs. All statements, other than offer or past fact statements included in this press release, are forward-looking statements, which aggregate statements regarding the trajectory and expansion of our business, our visitor base, expectations regarding reservations and revenues and profits from the market adjustment. , repetition and scale, our projects with Prime Secured, Audio Technology, Nanjing Port Group and PARIFEX, and all the data included in the segment entitled “Perspectives for 2022”. These forward-looking statements involve significant risks and uncertainties that may also cause actual effects to differ materially from expected effects. Most of those points are out of Quanergy’s control and hard to wait for. Factors that may also cause such differences include, but are not limited to: adjustments in domestic and foreign business, commercial, currency, political and legal situations; the general point of customer demand for Quanergy’s products; general economic situations and other points that affect customer confidence, personal tastes and behavior; disruption and volatility in global currency, capital and credit markets; the option to keep Quanergy’s securities directory current on the New York Stock Exchange; the monetary strength of Quanergy visitors; Quanergy’s ability to implement its business strategy; adjustments in government regulations; Quanergy’s exposure to litigation and other potential losses; disruptions and others have an effect on Quanergy’s business, as a result of the global COVID-19 pandemic and government moves and restrictive measures imposed in response; the ability of Quanergy’s suppliers and the effect of supply chain constraints, as well as customer demand for its products, in light of disease outbreaks and health considerations such as the global COVID-19 pandemic ; the impact that global climate change trends could have on Quanergy, its suppliers and visitors; Quanergy’s ability to protect patents, trademarks and other intellectual property rights; any breach or disruption of Quanergy’s data systems; fluctuations in the price, availability and quality of electricity and other raw and contracted textile products, as well as exchange rate fluctuations; Quanergy’s ability to use prospective net operating loss carryforwards; adjustments in tax legislation and legal responsibilities, tariffs, legal, regulatory, political and economic dangers; and other dangers and uncertainties set forth in Quanergy’s filings with the United States Securities and Exchange Commission. In addition, forward-looking statements reflect Quanergy’s expectations, plans or forecasts regarding events and long-term prospects only as of the date of this news release. Quanergy anticipates that upcoming events and developments will bring its tests to life. However, although Quanergy may decide to update such forward-looking statements at some point in the long term, Quanergy expressly disclaims any legal responsibility to do so, unless required by law.

Quanergy is a registered industrial trademark of Quanergy Systems. All other industrial marks and industrial names contained herein may belong to their respective owners.

© 2022, Quanergy Systems, Inc. All rights reserved.

Quanergy Systems, Inc.

Consolidated Balance Sheet

(in thousands, consistent with consistent with percentage and consistent with consistent with percentage)

(unaudited)

 

 

 

June 30, 2022

 

 

December 31, 2021

 

The advantages

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and money equivalents

 

Ps

18 719

 

 

$

26 106

 

Allocated cash

 

 

70

 

 

 

70

 

Accounts receivable, net of a provision for doubtful accounts of $224 as of June 30, 2022 and December 31, 2021

 

 

820

 

 

 

645

 

Inventory

 

 

5 521

 

 

 

3 242

 

Expenses paid in advance and existing assets

 

 

12 915

 

 

 

1 138

 

Total assets

 

 

38 045

 

 

 

31 201

 

Ownership and equipment, net

 

 

1 867

 

 

 

1 908

 

Other long-term assets

 

 

11 116

 

 

 

3 539

 

Total assets

 

Ps

51 028

 

 

Ps

36 648

 

Liabilities and/or (deficit)

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

Ps

4 475

 

 

Ps

2 375

 

increased expenditure

 

 

3 317

 

 

 

2 435

 

Settlement liabilities payable

 

 

2 750

 

 

 

2 500

 

Other liabilities

 

 

5 086

 

 

 

737

 

Short-term debt

 

 

 

 

 

34 311

 

Related to paying

 

 

1 070

 

 

 

 

Total liability

 

 

16 698

 

 

 

42 358

 

Long-term debt

 

 

 

 

 

16 153

 

Long-term debt – similar part

 

 

 

 

 

16 670

 

Derivative liability

 

 

496

 

 

 

26 017

 

Other long-term liabilities

 

 

9 026

 

 

 

803

 

Total responsibilities

 

 

26 220

 

 

 

102,001

 

Commitments and Contingencies (Note 15)

 

 

 

 

 

 

Equity / (deficit):

 

 

 

 

 

 

Common shares, on par with $0. 0001,300,000,000 and 80,071,901 legal actions as of June 30, 2022 and December 31, 2021 respectively; 129,613,549 and 57,020,151 shares issued and notable as of June 30, 2022 and December 31, 2021 respectively.

 

 

13

 

 

 

6

 

issue premium

 

 

462 827

 

 

 

242 299

 

Comprehensive result for the year to date

 

 

(79

)

 

 

(61

)

Accumulated deficit

 

 

(437 953

)

 

 

(307 597

)

Total / (deficit)

 

 

24 808

 

 

 

(65 353

)

Total liabilities and equity

 

Ps

51 028

 

 

Ps

36 648

 

Quanergy Systems, Inc.

Consolidated statements of operations

(in thousands, consistent with consistent with percentage and consistent with consistent with percentage)

(unaudited)

 

 

 

Quarter ended June 30

 

 

Semester ended June 30

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net sales

 

Ps

1 189

 

 

Ps

905

 

 

Ps

2 556

 

 

Ps

1 288

 

cost of sale

 

 

2 453

 

 

 

760

 

 

 

4 306

 

 

 

1 257

 

Gross loss

 

 

(1 264

)

 

 

24V

 

 

 

(1 750

)

 

 

31

 

Operating costs:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

6 441

 

 

 

3 740

 

 

 

19 265

 

 

 

8 097

 

Sales & Marketing

 

 

4 092

 

 

 

2 223

 

 

 

11 288

 

 

 

3 968

 

General and administrative

 

 

6 219

 

 

 

6 699

 

 

 

48 011

 

 

 

9 192

 

Operating expenses

 

 

16 752

 

 

 

12 662

 

 

 

78 564

 

 

 

21 257

 

Business interruption

 

 

(18 016

)

 

 

(12 517

)

 

 

(80 314

)

 

 

(21 226

)

Other source of income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(ten

)

 

 

(5 277

)

 

 

(40 054

)

 

 

(8 961

)

Other source of income (expenses), net

 

 

(7 645

)

 

 

(2 667

)

 

 

(9 982

)

 

 

(4 984

)

Loss before source of income tax

 

 

(25 671

)

 

 

(20 461

)

 

 

(130 350

)

 

 

(35 171

)

Provision for the source of income tax

 

 

(3

)

 

 

(6

)

 

 

(6

)

 

 

(ten

)

Net loss

 

Ps

(25 674

)

 

Ps

(20 467

)

 

Ps

(130 356

)

 

Ps

(35 181

)

Net attributable loss consistent with percentage to non-unusual consistent with percentage holders, fundamental and diluted

 

Ps

(0,22

)

 

Ps

(0,30

)

 

Ps

(1. 27

)

 

Ps

(0,54

)

Weighted average consistent with the percentages used to calculate the attributable loss consistent with the percentage consistent with common, fundamental, and diluted percentage holders

 

 

117 864 896

 

 

 

67. 111. 977

 

 

 

102 868 390

 

 

 

65 096 986

 

Quanergy Systems, Inc.

Consolidated consolidated money statements

(thousands)

(unaudited)

 

 

 

Semester ended June 30

 

 

 

2022

 

 

2021

 

Cash flows from activities

 

 

 

 

 

 

Net loss

 

Ps

(130 356

)

 

Ps

(35 181

)

Adjustments to reconcile loss with money used in operational activities:

 

 

 

 

 

 

Stock-based compensation

 

 

56 812

 

 

 

7 306

 

Non-monetary expenditure

 

 

40 071

 

 

 

8 727

 

Change in the fair value of derivative liabilities

 

 

1 025

 

 

 

7 499

 

Change in the fair of forward assets settled in shares

 

 

8 956

 

 

 

 

Non-cash rates

 

 

1 412

 

 

 

 

Depreciation and amortization

 

 

472

 

 

 

490

 

Non-monetary charges

 

 

333

 

 

 

 

Interest paid in kind and interest accrued on the repayment of the 2022 Bonds

 

 

(9 341

)

 

 

 

Profit from debt extinction

 

 

 

 

 

(2 515

)

Another

 

 

 

 

 

(70

)

Evolution of assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(175

)

 

 

290

 

Inventory

 

 

(2 279

)

 

 

446

 

Expenses paid in advance and existing assets

 

 

(1 907

)

 

 

166

 

Other long-term assets

 

 

(1

)

 

 

(1 780

)

Accounts payable

 

 

1 835

 

 

 

629

 

increased expenditure

 

 

(61

)

 

 

(222

)

Settlement liabilities payable

 

 

250

 

 

 

 

Other liabilities

 

 

(452

)

 

 

 

Other long-term liabilities

 

 

77

 

 

 

(251

)

Net money used in operational activities

 

 

(33 329

)

 

 

(14 466

)

Cash for performing an investment activity

 

 

 

 

 

 

Purchases of and equipment

 

 

(431

)

 

 

(5

)

Net money used in investment activities

 

 

(431

)

 

 

(5

)

Cash from funding activities

 

 

 

 

 

 

Related to PIPE financing

 

 

36 950

 

 

 

 

Pipe Combination and Financing Revenue

 

 

13 414

 

 

 

 

Revenue from the gem settlement fee

 

 

9 900

 

 

 

 

Payment of offer fees

 

 

(8 188

)

 

 

 

Bond Amortization 2022

 

 

(25 813

)

 

 

 

Product of the renegotiation of inventory options

 

 

58

 

 

 

74

 

Product of renegotiation of non-unusual percentages acquire warrants

 

 

70

 

 

 

 

Proceeds from the issuance of convertible bonds

 

 

 

 

 

37 130

 

Proceeds from the issuance of convertible bonds to similar parties

 

 

 

 

 

11 475

 

Net money from funding activities

 

 

26 391

 

 

 

48 679

 

Effect of exchange rate adjustments on money, money equivalents and allocated money

 

 

(18

)

 

 

(6

)

Net accumulation (decrease) of money, money equivalents and allocated money

 

 

(7 387

)

 

 

34 202

 

Cash, cash equivalents and money allocated at the beginning of the period

 

 

26 176

 

 

 

7,668

 

Cash, cash equivalents and money allocated at the end of the period

 

Ps

18 789

 

 

Ps

41 870

 

Additional information about money:

 

 

 

 

 

 

Cash paid the interest period

 

Ps

9 326

 

 

Ps

236

 

Additional non-cash investment and financing activities:

 

 

 

 

 

 

Conversion of refundable convertible shares into non-unusual shares

 

Ps

152 978

 

 

Ps

 

Converting Bonds 2023 into Stocks

 

Ps

101 978

 

 

Ps

 

Issuance of non-unusual percentage acquisition warrants

 

Ps

17 602

 

 

Ps

21 970

 

Assumption of business combination liabilities

 

Ps

15 956

 

 

Ps

 

Issuance of term settled in shares

 

Ps

10 027

 

 

 

 

Issuance fees paid on non-unusual shares

 

Ps

9 531

 

 

Ps

 

GEM Commitment Fees

 

Ps

2 500

 

 

Ps

 

Fair of liabilities derived from debt similar to the issuance of convertible promissory notes

 

Ps

 

 

Ps

17 540

 

Quanergy Systems, Inc.

Reconciliation of GAAP and Non-GAAP Financial Measures

(thousands)

(unaudited)

 

 

 

Quarter ended June 30

 

 

Semester ended June 30

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Non-GAAP Adjusted Gross Earnings

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss)

 

Ps

(1 264

)

 

Ps

24V

 

 

Ps

(1 750

)

 

Ps

31

 

Stock-based reimbursement expense

 

 

154

 

 

 

21

 

 

 

837

 

 

 

41

 

Non-GAAP Adjusted Gross Earnings

 

Ps

(1 110

)

 

Ps

166

 

 

Ps

(913

)

 

Ps

72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(25 674

)

 

 

(20 467

)

 

 

(130 356

)

 

 

(35 181

)

Stock-based reimbursement expense

 

 

5 251

 

 

 

5 725

 

 

 

56 812

 

 

 

7 306

 

Depreciation and amortization

 

 

244

 

 

 

239

 

 

 

472

 

 

 

490

 

Interest expense

 

 

25

 

 

 

5 279

 

 

 

40 071

 

 

 

8 964

 

Interest income

 

 

(15

)

 

 

(2

)

 

 

(17

)

 

 

(3

)

Change in derivatives fair

 

 

7 645

 

 

 

5 182

 

 

 

9 982

 

 

 

7 499

 

Gain in PPP forgiveness

 

 

 

 

 

(2 515

)

 

 

 

 

 

(2 515

)

Provision for source of income tax (profit)

 

 

3

 

 

 

6

 

 

 

6

 

 

 

Dix

 

Adjusted EBITDA

 

 

(12 521

)

 

 

(6 553

)

 

 

(23 030

)

 

 

(13 430

)

 

 

 

 

 

 

 

 

 

 

 

 

capital-free

 

 

 

 

 

 

 

 

 

 

 

 

Net money used in operational activities

 

 

(10 583

)

 

 

(7 848

)

 

 

(33 329

)

 

 

(14 466

)

Less: Purchase of tangible capital goods

 

 

(229

)

 

 

(5

)

 

 

(431

)

 

 

(5

)

capital-free

(10 812

)

(7 853

)

(33 760

)

 

(14 471

)

 

See the businesswire. com edition: https://www. businesswire. com/news/home/20220811005504/en/

Contacts

Quanergy Systems Investor Contact: Ryan Gardellaryan. gardella@icrinc. com

Media Contact: Shannon Van Everymedia@quanergy. com

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