Forge Global Holdings, Inc. (FRGE Q1 FY2024 earnings call

Tom-Einar Jensen:

• Market predictions on battery deployment align with FREYR's earlier estimates. Progress made on technology strategy, Board strengthening with new directors. Close to material breakthroughs in battery manufacturing.

Birger Steen:

• Progress at CQP with expectation to commence automated unit cell production in Q2 2024. Focus on conventional technology track for Giga America. Business development efforts behind the scenes.

Jeremy Bezdek:

• Focus on 4 distinct commercial and project-related opportunities, narrowing in on projects for near-term revenue and cash flow.

Oscar Brown:

• Financial results overview, reduced cash burn rate, focus on conserving cash and extending liquidity runway, evaluation of Giga Arctic asset's future.

For the first quarter of 2024, FREYR reported a net loss of $29 million or $0.20 per share. Cash and equivalents stood at $253 million with no debt. Net cash used for investing activities was $2 million in Q1 2024. R&D costs increased as commissioning activities for the CQP intensified. Cash G&A run rate decreased with workforce reductions. The book value of the Giga Arctic asset is approximately $225 million.

Guidance:

• Expect to commence automated unit cell production with full automation of casting and unit cell assembly at CQP in Q2 2024.
• Focus on finalizing terms with technology provider for Giga America, securing offtake agreements, and relaunching project-level equity and debt processes.
• Actively evaluating opportunities for non-dilutive growth capital and maximizing project development.

Risks:

• Complexity of bringing novel cell production technology to scale. Uncertainties in market developments affecting spending and capital formation. Impact of CQP, Giga America, and other opportunities on spending and financial position.

Q: On the CQP, what are the key stages left before automated cell production?

A: Tuning the multi-carrier system to ensure cathodes, anodes, and separators meet correctly with proper pressure and tolerances. Expecting first successful fully automated casted and merged cells soon.

Q: What would an ideal opportunity look like in the battery components side?

A: An ideal opportunity would be a downstream extension customer, like for grid storage near a PV project in the U.S., valuing U.S. soil production and supply chain resilience.

Q: How do the 4 distinct projects in the 2.0 growth initiative come about?

A: Varied process including using relationships, inbound inquiries from interested parties, and a funnel approach to evaluate and advance projects.