Energy storage solutions provider Eos Energy Enterprises‘ net loss widened to $131.6 million for the second quarter (Q2) of the financial year 2023 from $56.7 million year-over-year (YoY), mainly due to higher interest and other expenses even though the cost of goods came down.

The cost of goods sold during the April-June quarter totaled $11.2 million, a 69% YoY dip in per unit cost driven by decreased volume related to the shift to the new battery module. It helped narrow the operational losses for the quarter to $34.6 million compared to $57.4 million YoY.

Eos posted a revenue of $200,000, a decrease of 96% YoY as the company transitions to next-generation Eos Z3 battery module.

Eos Chief Executive Officer Joe Mastrangelo said, “We have made significant progress on our transition to Z3. I am very pleased with the initial output and performance of the semi-automated line. We are seeing clear advantages with Z3’s cycle time, performance consistency, and system simplification. Being able to run discrete manufacturing processes in the first half of the year has resulted in valuable learnings which we believe will result in both time and capital efficiencies as we develop our state-of-the-art manufacturing line and begin to scale our production.”

Half year

Eos’ net loss for the first half of 2023 widened to $203.2 million compared to $102.5 million YoY, mainly due to higher interest and other expenses.

The company posted revenue of $9.1 million during the January-June period, a marginal decrease of 1% YoY.

Eos booked $86.9 million (representing 349 MWh) in orders during the first half of 2023, resulting in an order backlog of $533.6 million (representing 2.2 GWh) as of June 30, 2023, a 17% YoY increase.

Mastrangelo added, “There is still a lot of hard work ahead of us, and we are excited to build out our future manufacturing line and continue the Z3 transition to deliver, at scale, what the market needs so severely – a commercially available alternative to lithium-ion technology that we believe is safe, durable, flexible, non-flammable, non-corrosive and easily recycled.

In April this year, the company announced a $40 million registered direct offering and concurrent private placement. The company entered into a definitive agreement to purchase and sell an aggregate of 16,000,000 shares of the company’s common stock at a purchase price of $2.50 per share in a registered direct offering. It had also agreed to issue unregistered warrants in a concurrent private placement to purchase up to 16,000,000 shares of common stock.

Eos’ net loss widened to $71.6 million in Q1 2023 compared to $45.8 million YoY. Eos posted a 168% YoY increase in revenue at $8.8 million for the January-March period, primarily fueled by 208 MWh of total shipments of its new products for the Pine Gate Eastover system.