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Iron Flow Battery Manufacturer ESS Tech's Net Loss Widens

2023-08-10

Manufacturer of long-lasting iron-flow batteries ESS Tech posted a net loss of $22.93 million in the second quarter of 2023, up 40.89% year over year from a loss of $16.27 million.

The company's efforts to obtain more patents for its iron flow battery technology resulted in a rise in research and development (R&D) expenses, which may be in part responsible for the increase in net loss.

The American business increased its revenue in Q2 2023 by 312% YoY to $2.83 million from $686,000.

R&D costs over the period increased by 20.32% YoY, from $16.17 million to $19.45 million.

In the second quarter, ESS received ten more patents for its iron flow battery technology, bringing its total number of patents held globally to 70. By June 30, 2023, it had submitted 235 patent applications.

A loss of $20.45 million was recorded for the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Additionally, the company reported a loss of $115,000 on the revaluation of common stock warrant liabilities, a 101.33% decrease from a gain of $8.6 million during the comparable period in 2016.