The net loss of Eos Energy, a sustainable zinc-based energy storage solutions provider, widened to $56.6 million for the fourth quarter (Q4) of the financial year (FY) 2022 compared to the net loss of $30.6 million in the same quarter of the previous year.

The company said that the total interest expense increased by 485% year-over-year (YoY) to $7.6 million due to increased borrowing from the senior secured term loan, resulting in a net loss for Q4.

The total loss for the period includes a $4.4 million write-down of property, plant, and equipment that are long-term assets.

Eos posted a revenue of $2.7 million for Q4, driven by the delivery of the 184th and final energy block for the 80 MWh Pine Gate Renewables Eastover Project.

The company said sales decreased as it postponed production for 2023 to realize benefits from the Inflation Reduction Act.

CEO of Eos Energy, Joe Mastrangelo, said, “2022 was a year of continued growth. We were able to scale our factory and ramp up production with a 335% increase in shipments while developing and producing a less capital-intensive, more efficient, denser, and lower-cost battery, the Eos Z3.”

Full Year 2022

The company’s net loss for FY 2022 widened to $229.8 million from $124.2 million in the previous year, mainly driven by increased expenses.

The total selling, general, and administration expenses for the year increased 41% to $60.6 million compared to $43 million in FY 2021.

Eos said its interest expense increased by 262% or $13.6 million to $18.8 million in FY 2022 compared to $5.2 million in 2021. The company attributed the increase to more borrowings.

The company recorded a revenue of $17.9 million for the year, up 289% from $4.6 million in 2021, driven by record 258 energy blocks of 129 MWh capacity as of December 2022. Eos said it discharged 836.9 MWh of energy in the year, up 102% compared to 415 MWh in FY 2021.

The revenue growth was due to a 230% rise in the costs of goods sold in 2022, at $153.6 million compared to $46.5 million in 2021.

CEO Mastrangelo said, “Heading into 2023, we believe we are in one of the strongest positions in our company’s history as we continue to see a shift in the demand for longer-duration energy storage. The passage of the IRA and our progression through the Department of Energy loan due diligence phase provides the growth catalysts to expand our increasingly commercially viable technology.”

Eos Energy reported a net loss of $70.7 million for the third quarter of 2022 due to the production ramp-up of Z3 batteries, higher logistics costs, supply chain constraints, and staffing shortages.

In 2021, Eos’ wholly-owned subsidiary HI-POWER signed a $25 million equity financing agreement with Trinity Capital to acquire equipment that will expand the production of its proprietary aqueous Znyth batteries.