Energy storage solutions provider Eos Energy Enterprises narrowed its first quarter, 2024 net loss by 34.7% to $46.71 from $71.6 million in the same quarter of 2023.

Eos’ revenue from its their “Z3” semi-automated manufacturing line amounted to $6.6 million, a 25% YoY decrease, primarily due to the timing of customer revenue recognition.

The cost of goods sold reached $28.2 million, up 5% YoY, due to a 28% rise in manufacturing volume.

Operating expenses totaled $19.5 million, indicating a 3%YoY decrease compared to the prior year.

As of March 31, 2024, the company maintained a cash balance of $31.8 million, excluding restricted cash.

The commercial opportunity pipeline expanded to $13.3 billion, a 56% YoY increase, with a backlog of $602.7 million.

Eos extended and broadened its existing agreement with Pine Gate Renewables through a new master supply agreement for 500 MWh of energy storage systems to be delivered over the next five years.

The company said a new “Eos Z3” inline cube has been integrated, enhancing the product’s overall power density in the field. A transition to a lower-cost, higher-energy-density Z3 battery module will help reduce both product and manufacturing costs.

The company was able to meet its goal of achieving a 55% reduction in direct material cost.

Considering the overall market context, the product is believed to contain over 90% U.S. content while meeting cost reduction goals. This alignment allows customers to maximize the benefits of the investment tax credit available under the Inflation Reduction Act.

The company has identified a counterparty with a strong interest in additional tax credits for which all necessary legal documentation has been completed. It expected monetization to occur more quickly each quarter going forward.

Eos Chief Executive Officer Joe Mastrangelo said, “We’ve now shipped over 110 Z3 Cubes to five separate customers since the first shipment in late September. It’s an incredible testament to the work of the entire Eos team, considering that last year we were still manufacturing Gen 2.3 and were yet to launch the Z3. I’m incredibly proud of the work this team has accomplished and where we stand today.”

Eos reported a 148% surge in revenue in the fourth quarter of 2023 to $6.6 million, driven by higher production volumes on the semi-automated manufacturing line for the Z3 Cube.

The company recorded an 89% drop in revenue in the third quarter as lower sales hurt its top line.