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ESS Tech, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total revenue of $359,000 for the three months ended September 30, 2024, a decrease from $1,545,000 in the same quarter of the previous year. The decline in revenue is attributed to a reduction in sales of the Energy Warehouse and Energy Center products.
Cost of revenue for the quarter was $12,741,000, compared to $10,183,000 in the same quarter of the previous year. The increase in cost is primarily due to the transition from research and development to commercial inventory accounting.
The company reported a gross loss of $12,382,000 for the quarter, compared to a gross loss of $8,638,000 in the previous year, reflecting higher production costs.
Research and development expenses increased to $2,684,000 from $1,609,000, due to inventory utilization previously expensed.
Sales and marketing expenses rose to $2,529,000 from $2,056,000, driven by increased personnel-related expenses.
General and administrative expenses increased slightly to $6,087,000 from $5,831,000, primarily due to higher IT expenses.
Net loss for the quarter was $22,493,000, compared to $16,618,000 in the previous year. The increase in net loss is due to higher operating expenses and cost of revenue.
Cash used in operating activities for the nine months ended September 30, 2024, was $51,743,000, compared to $38,751,000 in the same period of the previous year.
ESS Tech had a working capital of $55,100,000 as of September 30, 2024. The company acknowledges the need for additional financing to meet near-term operating cash flow requirements.
The filing also details various financial agreements, including a joint development agreement with Honeywell (HON-0.63%) and a framework agreement with SBE.
The company highlights the risks related to supply chain disruptions, increased competition, and the need to scale production efficiently.
ESS Tech continues to focus on expanding its production capacity and developing new products to meet market demand.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ESS Tech Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.