Bimergen Energy (BESS) Status update summary

Business model and project pipeline

• Operates as a utility-scale battery energy storage system developer, builder, and operator, focusing on energy arbitrage by buying low and selling high on the grid daily.

• Acquired 23 development projects in April 2024, totaling 2 GW of capacity, valued at $150 million in the current market.

• Projects are financed primarily through mezzanine debt and bank debt, with minimal use of company equity, and each project is structured as a non-recourse joint venture.

• ITC tax credits allow for significant upfront capital recovery, reducing project debt from $125 million to $65 million within a year of operation.

• Revenue generation is expected to begin in late 2026, with $15–20 million in development fees anticipated in 2024 and profitability projected for 2026.

Financial structure and profitability

• Raised $13.6 million in equity, with $250 million committed in mezzanine debt, unlocking over $1 billion in bank debt for project financing.

• Each 100 MW project is expected to generate $20 million in annual revenue, with $13.5 million gross profit and $11 million EBITDA during the first seven years.

• After seven years, EBITDA per project is projected to rise to $17.5 million as offtake agreements expire.

• Operating expenses are budgeted at $4 million for 2024, with $2.5 million annual operating costs per project, mainly for insurance and scheduling.

• Balance sheet shows $11 million in cash, $35 million in assets, no debt, and a clean cap table with 7.1 million shares outstanding.

Strategic partnerships and operations

• Strategic relationships with reLi Energy, Eos, and Cox provide mezzanine debt, battery supply, and technology partnerships.

• Long-term tolling and offtake hedge agreements with commodity desks like Goldman Sachs ensure revenue stability and bankability.

• Project locations are selected based on grid pinch points and energy arbitrage potential, with 11 of 23 projects in Texas.

• Supply chain planning and relationships have been established over five years to mitigate lead time risks for critical components.

• Ongoing expansion through acquisition of new projects via financial engineering, not cash outlay.