Eos Energy Enterprises (EOSE) The Stifel 2024 Cross Sector Insight Conference summary

Cash management and financing

• Actively incentivizing customer deposits and milestone payments to accelerate cash inflows.

• Sold 2023 production tax credits and working on selling Q1 2024 credits at a discount for additional liquidity.

• Managing cash outflows by negotiating payment terms with vendors and considering production slowdowns to conserve cash.

• Ongoing efforts to secure long-term strategic financing with the DOE and exploring options to bridge any funding gaps.

Capital expenditure and production plans

• Majority of CapEx for the first production line has been spent, with some milestone and tooling payments remaining into Q3.

• Further automation of bipolar manufacturing is planned for the end of the year, setting up for a potential second line.

• Timing for a second line depends on customer demand and funding, with a preference to maximize current assets before expanding.

• Third shift labor will be added before building a second line to optimize existing capacity.

Product development and cost reduction

• Recently acknowledged patent introduces a new electrolyte chemistry, developed over more than 12 months, aimed at cost reduction.

• Patent benefits are included in current cost-out guidance and have informed supply agreements.

• No additional regulatory hurdles are expected due to the new chemistry, and energy density improvements are already factored in.