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 to bring in capital.

• 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 (e.g., third shift) before expanding.

Customer demand, orders, and revenue outlook

• Anchor commercial orders with large storage operators are being delivered, demonstrating operational projects in the field.

• Industry standard requires deposits to secure production capacity, with milestone payments structured to ensure 80% of cash is received before shipment.

• Revenue growth is expected as certainty around production expansion increases and more customers place orders.