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美國
證券交易委員會
華盛頓特區20549

表格 10-Q
 ☒
根據1934年證券交易法第13或15(d)條款的季度報告。
截至2024年6月30日季度結束 2024年9月30日
或
☐根據1934年證券交易法第13或15(d)條款的過渡報告
在過渡期間從 到

委員會文件編號 001-39291
EOS ENERGY ENTERPRISES，INC。
(依據其章程所規定的注册者正式名稱)
特拉華州84-4290188
(成立地或組織其他管轄區)（聯邦稅號）
3920 Park Avenue
Edison新澤西08820
（總部地址）（郵政編碼）
(732) 225-8400
申請人的電話號碼，包括區域代碼。
根據法案第12(b)條規定註冊的證券：
每種類別的名稱交易標的（s）每個註冊交易所的名稱
普通股，每股面值$0.0001EOSE納斯達克股票交易所 LLC
每个权证可行使换取一股普通股EOSEW納斯達克股票交易所 LLC
請勾選選項，表示以下事項：（1）在過去12個月內（或如此短的時期內，發行者必須提交此類報告的時期），已根據1934年證券交易法第13條或第15(d)條提交了所有所需提交的報告；以及（2）在過去90天內已受到此類提交要求的限制。是  ☒不☐
請檢查是否在過去12個月內（或登記人所需提交和發佈此類檔案的時間較短期間內）依據S-T法規第405條（本章節第232.405條）的規定，提交並張貼了每一個互動數據檔案在其企業網站上。是  ☒否☐
標示勾選是否登記申報人為大幅加快申報者、加快申報者、非加快申報者或較小的披露公司。參見交易所法案第120億2條中「大幅加快申報者」、「加快申報者」和「較小的披露公司」的定義。(勾選一個)：
大型加速歸檔人☐加速歸檔人☐
非加速歸檔人☒小型報告公司☒
新興成長型企業
☐
如果是新興成長公司，請勾選此核准的方框，以指示登記人是否選擇不使用《交易法》第13(a)條提供的遵循任何新的或修訂的財務會計標準的延長過渡期。 ☐
請用勾選表示，公司是否屬於殼公司（如本法案第120億2條所定義）。 是 ☐ 否 ☒
截至2024年8月2日，註冊人持有未行使的 217,912,361 2024年11月4日為止的普通股股份。

目錄
目錄
頁面
未經稽核的 截至 2024年9月30日 和 2023年12月31日
未經審核的總體現金流量表總表他 九 之汇总) 2024年9月30日 和 2023
1
目錄
前瞻性資訊
所有板塊所包含的本季度報告表格10-Q（“季度報告”）中，除了歷史事實陳述或形容外，均屬於根據1995年私人證券訴訟改革法案的前瞻性陳述。 “預期”，“相信”，“持續”，“可能”，“估計”，“期望”，“打算”，“可能”，“潛在”，“預測”，“計劃”，“潛在”，“現在”等表達，涉及我們的內容，都是旨在標識前瞻性陳述。 這些陳述出現在季度報告中的多處，包括有關Eos Energy Enterprises, Inc.意圖，信念或目前期望的陳述。前瞻性陳述是根據我們管理層的信念以及他們制定的假設和目前向他們提供的信息。 由於這些陳述是基於對未來財務和營運結果的期望，而非事實陳述，實際結果可能與預期有實質不同。 可能導致實際結果與目前期望不符的因素包括但不限於：
•影響我們業務的不利變化；
•我們準確預測趨勢的能力；
•我們的能力可以產生現金，償還債務並承擔額外的債務；
•我們未來籌措融資的能力；
•我們客戶獲得專案融資的能力;
•與信貸協議（下文有定義）相關的風險包括違約風險、優先股股本稀釋風險、未達到里程碑的後果和股份的契約鎖定。
•我們客戶或Eos Energy Enterprises, Inc.根據通貨膨脹降低法案可獲得的最終稅收抵免金額；
•我們對能否及時或獲得能源部能源貸款辦公室的貸款最終批准以及滿足適用的條件先決的不確定性，或批准的貸款之資金撥款時間和最終規模，存在疑慮。
•在我們努力滿足適用的條件前提並與美國能源部貸款計畫辦公室最終確認貸款文件，或在等待能源部貸款計畫辦公室發出貸款決定通知期間，政府關閉的可能性。
•我們能力能夠持續發展高效的製造業流程，規模化生產，並準確預測相關成本和效率；
•我們營業收入和營運結果波動。
•現有或新競爭對手的競爭；
•我們將確定的訂單後勤及儲備轉化為營業收入的能力；
•我們資訊科技系統中與安防漏洞相關的風險;
•與法律訴訟或索賠相關的風險；
•美國和其他國家能源政策演變所面臨的風險以及監管遵循的潛在成本。
•與美國貿易環境變化相關的風險；
•我們能否維持在納斯達克上市普通股的上市。
•我們能夠持續發展業務、盈利性地管理成長、保持與客戶和供應商的關係，並保留我們的管理層和關鍵員工；
•與一般經濟狀況不利變化相關的風險，包括通貨膨脹壓力和利率期貨上升；
•供應鏈中斷的風險和地緣政治衝突的其他影響;
2
目錄
•適用法律或法規的變化；和
•其他因素詳細列在本文的「風險因素」欄下。
如果其中一個或多個風險或不確定因素變得現實，或者我們的任何假設被證明不正確，實際結果可能與這些前瞻性聲明中預測的結果在實質上有所不同。前瞻性聲明僅在其發佈日期有效。讀者被告別過分依賴前瞻性聲明，並且除非法律規定，公司不承擔更新或修訂這些前瞻性聲明的義務，也無意更新或修改這些前瞻性聲明，無論是因爲新信息、未來事件還是其他原因。另請參閱第I部分第1A項所載披露。 「風險因素」 請查看公司截至2023年12月31日的年度10-K表格中包含的披露，以進一步討論可能導致公司實際結果與其前瞻性聲明中表述或暗示的結果有實質差異的風險和不確定因素。









3
目錄
第I部分-財務信息
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併資產負債表
（以千爲單位，除股份數量和每股金額外）

九月30日,
2024		12月31日
2023
資產 
流動資產：  
現金及現金等價物$23,015 $69,473 
受限現金2,625 3,439 
貸款承諾資產
58,525 — 
應收賬款淨額3,197 3,387 
114,467 25,908 17,070 
供應商存款9,332 7,161 
合同資產，流動11,911 6,386 
預付費用1,074 1,082 
補助應收款
1,506 3,256 
其他應收款
7,500 7,500 
其他資產4,617 3,577 
總流動資產149,210 122,331 
物業、廠房和設備，淨值51,546 37,855 
無形資產, 淨額237 295 
商譽4,331 4,331 
經營租賃權益資產，淨值3,059 4,033 
長期限制性現金5,000 11,755 
其他資產淨額
3,458 5,892 
資產總額$216,841 $186,492 
負債
流動負債:
應付賬款$24,345 $20,540 
應計費用37,765 32,332 
經營租賃負債，流動 1,719 1,496 
長期債務，流動 2,536 3,332 
合同負債，流動 8,721 3,070 
其他流動負債44 100 
流動負債合計75,130 60,870 
長期負債：
經營租賃負債2,010 3,350 
長期債務726 88,002 
應付票據 - 關聯方
184,167 112,525 
與關聯方應付利息
3,097 — 
合同負債，長期3,303 3,540 
warrants責任
98,970 27,461 
與關聯方的warrants負債
267,049 — 
其他負債76 1,544 
長期負債總額559,398 236,422 
4
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併資產負債表
（以千爲單位，除股份數量和每股金額外）
九月30日,
2024		12月31日
2023
負債合計634,528 297,292 
承諾和 contingencies（注16）
優先股系列b（注3）
156,069 — 
股東權益虧損
普通股，每股面值爲 $0.0001；0.0001每股面值，600,000,000 217,278,404 和 199,133,827 截至2024年9月30日和2023年12月31日的流通股數分別爲
23 21 
股票認購應收款項。724,449 765,018 
累積赤字(1,293,592)(875,846)
已實現其他綜合收益 (損失)
(4,636)7 
股東赤字總額(573,756)(110,800)
總負債、優先股和股東赤字
$216,841 $186,492 
附註是這些未經審計的簡明合併財務報表的組成部分。
5
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併損益表和綜合損益表
（以千爲單位，除股份數量和每股金額外）
截至9月30日的三個月九個月結束
九月30日,
 2024202320242023
營業收入
總收入$854 $684 $8,353 $9,768 
費用和支出
營業成本25,764 21,262 68,114 59,448 
研發費用7,428 3,228 16,878 13,699 
銷售，總務及管理費用17,796 13,076 43,331 40,169 
固定資產減值損失3,192 955 3,528 7,151 
總成本和費用54,180 38,521 131,851 120,467 
營業虧損(53,326)(37,837)(123,498)(110,699)
其他（費用）收入
利息費用，淨額(133)(4,994)(7,915)(14,709)
關聯方利息費用(5,291)(4,449)(15,054)(32,962)
有關方面債務公允價值變動
(3,036)— (3,276)— 
權證公允價值變動
(66,469)34,406 (71,510)(24,957)
有關方面金融工具公允價值變動
(213,034)27,398 (260,227)(962)
債務熄滅利得（虧損）
— — 68,478 (3,510)
其他（費用）收入
(1,593)421 (4,727)(474)
（虧損）所得稅前收入
$(342,882)$14,945 $(417,729)$(188,273)
所得稅（收益）費用
(16)13 17 25 
歸屬股東的淨（損失）收入
$(342,866)$14,932 $(417,746)$(188,298)
優先股累積
(41,267)— (64,938)— 
歸屬於普通股股東的淨 (損失) 收益
$(384,133)$14,932 $(482,684)$(188,298)
其他綜合（損失）收益
債務公允價值變動-信用風險
$(4,642)$— $(4,642)$— 
外幣兌換損益，扣除稅金3 (6)(1)(3)
歸屬普通股股東的綜合（損失）收入
$(388,772)$14,926 $(487,327)$(188,301)
普通股股東每股基本和攤薄（損失）收入
Basic$(1.77)$0.11 $(2.30)$(1.65)
Diluted$(1.77)$(0.05)$(2.30)$(1.65)
普通股的加權平均股數
Basic216,898,374 138,005,222 209,820,480 114,209,090 
Diluted216,898,374 156,325,284 209,820,480 114,209,090 
附註是這些未經審計的簡明合併財務報表的組成部分。
6
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明綜合股東權益變動表
（以千爲單位，除股份數量和每股金額外）
普通股額外資本溢價
累計其他綜合收益（損失）
累計赤字總費用
股份數量
2023年6月30日的餘額
127,309,960 $14 $620,006 $9 $(849,570)$(229,541)
以股票爲基礎的報酬計劃— — 4,456 — — 4,456 
行使股票期權
50,000 67 67 
限制性股票單位的發行93,458 — — — — — 
取消股份用於支付工資稅預提(13,584)— (136)— — (136)
普通股發行28,938,944 2 81,895 — — 81,897 
外幣翻譯調整— — — (6)— (6)
淨收入
— — — — 14,932 14,932 
2023年9月30日餘額
156,378,778 $16 $706,288 $3 $(834,638)$(128,331)
2024年6月30日的餘額
216,491,215 $23 $759,881 $3 $(950,726)$(190,819)
以股票爲基礎的報酬計劃— — 6,142 — — 6,142 
釋放受限制的股票單位913,774 — — — — — 
認證股證權行權
289,654 — 463 — — 463 
取消用於支付薪資稅款的股份(416,239)— (771)— — (771)
優先股權的增值
— — (41,267)— — (41,267)
外幣翻譯調整— — — 3 — 3 
債務公允價值變動-信用風險
— — — (4,642)— (4,642)
淨損失— — — — (342,866)(342,866)
Balances on 2024年9月30日
217,278,404 $23 $724,449 $(4,636)$(1,293,592)$(573,756)
7
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明綜合股東權益變動表
（以千爲單位，除股份數量和每股金額外）
普通股額外資本溢價
累計其他綜合收益（損失）
累計赤字總費用
股份數量
2022年12月31日的餘額
82,653,781 $9 $513,614 $6 $(646,340)$(132,711)
以股票爲基礎的報酬計劃— — 10,123 — — 10,123 
行使股票期權
250,000 — 335 — — 335 
釋放受限制的股票單位1,606,791 — — — — — 
取消用於支付薪資稅款的股份(303,655)— (587)— — (587)
普通股發行72,171,861 7 182,803 — — 182,810 
外幣翻譯調整— — — (3)— (3)
淨損失— — — — (188,298)(188,298)
2023年9月30日餘額
156,378,778 $16 $706,288 $3 $(834,638)$(128,331)
2023年12月31日的餘額
199,133,827 $21 $765,018 $7 $(875,846)$(110,800)
以股票爲基礎的報酬計劃— — 10,940 — — 10,940 
釋放受限制的股票單位1,941,965 — — — — — 
認證股證權行權
289,654 — 463 — — 463 
取消用於支付薪資稅款的股份(714,565)— (1,122)— — (1,122)
發行普通股 16,627,523 2 14,087 — — 14,089 
優先股權的增值
— — (64,938)— — (64,938)
外幣翻譯調整— — — (1)— (1)
債務公允價值變動-信用風險
— — (4,642)— (4,642)
淨損失— — — — (417,746)(417,746)
Balances on 2024年9月30日
217,278,404 $23 $724,449 $(4,636)$(1,293,592)$(573,756)
隨附的附註是這些未經審計的簡明合併財務報表的組成部分。
8
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併現金流量表
（以千爲單位，除股份數量和每股金額外）
九個月結束
九月30日,
 
2024
2023
經營活動現金流  
淨損失$(417,746)$(188,298)
調整淨損失，使其與經營活動中使用的現金淨額相符
以股票爲基礎的報酬計劃10,940 10,123 
折舊和攤銷5,259 7,316 
債務清償（收益）損失
(68,478)3,510 
處置物業、廠房和設備的減值損失 3,528 7,151 
攤銷租賃權資產974 737 
非現金利息費用5,117 3,820 
非現金利息費用 - 關聯方11,181 30,239 
有關方面債務公允價值變動
3,276 — 
權證公允價值變動
71,510 24,957 
有關方面金融工具公允價值變動
260,227 962 
其他4,858 639 
經營性資產和負債變動:
預付費用7 1,474 
庫存(8,838)2,692 
應收賬款189 96 
供應商存款(449)(4,044)
合同資產(4,729)(471)
補助應收款
1,750 (934)
應付賬款1,136 (17,770)
應計費用1,038 12,258 
利息應付款-關聯方3,097 2,706 
經營租賃負債(1,117)(830)
合同負債5,414 (565)
    其他 604 (3,346)
經營活動使用的淨現金流量(111,252)(107,578)
投資活動現金流量
購買無形資產
(8)— 
購買固定資產(20,054)(21,186)
投資活動產生的淨現金流出(20,062)(21,186)
籌資活動現金流量
金融租賃義務的本金支付(89)(93)
行使股票期權和認購權所得現金
463 442 
來自發行可轉換票據的收入-關聯方— 48,050 
支付債券發行費用
— (3,046)
來自信貸和證券購買交易的收入
98,575 — 
償還債務發行成本-關聯方
(12,238)(1,116)
償還優先擔保期限貸款
(19,946)— 
9
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併現金流量表
（以千爲單位，除股份數量和每股金額外）
九個月結束
九月30日,
 
2024
2023
設備融資設施的償還(2,447)(2,110)
發行普通股所得款項
14,089 81,897 
通過發行普通股和認股權所得款項
— 49,250 
支付股本發行成本
— (2,080)
回購股份用於員工所得稅預提(1,122)(587)
籌資活動產生的現金淨額77,285 170,607 
匯率變動對現金、現金等價物及受限制資金的影響2 (5)
現金、現金等價物和受限制現金的淨(減少)增加額
(54,027)41,838 
期初現金、現金等價物及限制性現金餘額84,667 31,223 
期末現金、現金等價物及限制性現金餘額$30,640 $73,061 
非現金投融資活動
計入但未付的資本支出$3,216 $— 
以實物支付的利息發行可轉換票據5,783 4,915 
優先股累積
64,938 — 
通過融資租賃獲得的固定資產— 125 
用於交換租賃負債的租賃經營租賃資產— 363 
結算Yorkville可轉債時發行普通股— 51,023 
應計但未支付的資本化內部使用軟件— 130 
補充披露
支付的利息現金$4,279 $11,269 
附註是這些未經審計的簡明合併財務報表的組成部分。
10
目錄

EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）

1.概述
業務性質
Eos 能源企業股份有限公司（以下簡稱「公司」，「我們」，「我們」，「我們」和「柚子」）設計、開發、製造和銷售創新的能源存儲解決方案，用於大型公用事業、微電網和商業及工業（「C&I」）應用。Eos開發了廣泛的知識產權，涵蓋了獨特的電池化學、機械產品設計、能源塊配置和軟件操作系統（電池管理系統）。公司只擁有 之一 公司由一個營運和可報告的部分組成。
流動性和持續經營
作爲處於生命週期早期商業化階段的成長型公司，柚子面臨與企業發展相關的固有風險和不確定性。在這方面，公司迄今爲止的幾乎所有努力都集中在電池能源存儲系統及配套產品和服務的開發和製造、管理和技術人員招聘、部署資本以擴大公司經營範圍以滿足客戶需求以及籌集資金支持公司的發展。然而，由於這些努力，公司自創立以來已經遭受了巨大的損失和負面經營現金流，並預計在可預見的未來會繼續遭受這些損失和負面經營現金流，直到公司能夠實現盈利規模以維持其運營。
爲了執行其發展策略，公司在過去往往依賴於通過發行股票、債務和融資安排下的借款（統稱「外部資本」）來資助其成本結構。雖然公司相信其最近進入新的信貸工具，如下面所討論的，已經顯著改善了其資本狀況，併爲可持續運營和盈利提供了途徑，但無法保證公司將能夠實現這樣的盈利或在不需要額外外部資本的情況下做到這一點。此外，雖然公司在過去成功地籌集了外部資本，但無法保證公司將來能夠繼續獲得外部資本，或者在需要時以公司認可的條件獲得外部資本。
根據第3條披露， 信貸和證券購買交易， 於2024年6月21日，公司與Cerberus Capital Management LP的附屬公司CCm Denali Debt Holdings, LP（以下簡稱「 Cerberus」，「Denali」，「貸款人」，「持有人」）進行了一項融資交易。根據此交易，Cerberus同意提供$210,500 受擔保多次提款融資，分 四個 份額（「延遲提款長期貸款」），以及一項$105,000 循環貸款融資（「循環融資計劃」），將在2026年6月21日開始提供，由Cerberus全權決定，並且僅在延遲提款長期貸款完全融資後提供。
截至附表未經審計的簡明合併基本報表發佈日期（「發行日期」），管理層根據會計準則205-40號《企業持續經營：》評估了以下負面財務狀況的重要性。
•自成立以來，公司爲了基金髮展而承擔了巨額損失和負面現金流。截至2024年9月30日的九個月，公司錄得淨損失$417,746，經營活動現金流爲負$111,252 ，累計遞延虧損$1,293,592 截至2024年9月30日。
•截至2024年9月30日，公司負債$23,015 可供公司運營使用的無限制現金及現金等價物 和爲美元的運營資金74,080，其中包括貸款承諾資產58,525 ，作爲未經審計的綜合資產負債表上的流動資產。
11
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）

1.概述 2.行業板塊4.0技術 3.行業板塊4.0對旅遊業的影響 4.公司案例研究 5.結論 （續）
•此外，公司繼續通過能源部（DOE）貸款項目辦公室（LPO）的流程進行其第十七章貸款。2023年8月，DOE向公司發出了一封有條件的承諾函，批准向公司提供總額高達$的貸款398,600 通過DOE的清潔能源融資計劃。在DOE與公司簽訂最終融資文件併爲貸款提供資金之前，必須滿足某些技術、法律和財務條件，並對DOE的滿意進行盡職調查。公司將繼續與DOE合作以滿足這些條件並關閉貸款，但無法保證公司能夠獲得此類貸款或以公司可接受的條件獲得貸款。
•公司需要遵守其信貸協議下的某些季度財務契約。這些財務契約包括信貸協議中定義的最低合併息稅折舊攤銷前利潤、最低合併營業收入和最低流動性（統稱爲"財務契約"）。截至2024年9月30日，公司遵守了所有財務契約和非財務契約，除了2024年9月30日的最低合併營業收入財務契約。公司獲得了從Cerberus那裏獲得了截至2024年9月30日季度的違約豁免。公司預計可能無法在2024年12月31日之後繼續遵守最低合併營收財務契約，除非公司能夠獲得豁免或修訂信貸協議。如果公司無法在2024年12月31日之前遵守財務和非財務契約，並且公司無法獲得其他豁免，Cerberus可以自行決定與公司簽訂棄權協議和/或行使其現有的全部權利和救濟措施，其中可能包括在公司貸款擔保資產中行使其權利等。此外，公司的其他借款人可能根據其與公司各自借款安排的交叉違約條款行使類似的權利和救濟措施。
•Cerberus 爲公司提供了資金 $30,000 (「八月抽獎」), 公司收到了 $28,500，除了 5.0% 原發行折扣，因爲公司實現了附註3中披露的8月抽獎的里程碑， 信貸和證券購買交易。 隨後，在 2024 年 11 月 1 日，Cerberus 爲公司提供了資金65,000 與2024年10月31日的部分（「十月抽獎」 或 「十月份抽獎」）相關，公司收到了美元61,750，這是淨的 5.0附註21中披露的延遲提款定期貸款的原始發行折扣百分比， 後續事件。如果公司未能實現剩餘的融資里程碑，並且Cerberus選擇不繼續融資，並且公司籌集額外外部資本的持續努力未成功，則公司將無法履行其債務，因爲這些債務將在發行日期後的未來十二個月內到期。在這種情況下，管理層將被要求尋求其他戰略選擇，其中可能包括大幅削減公司的運營、出售公司的某些資產、將整個公司出售給戰略或金融投資者和/或允許公司破產。
這些不確定性對公司繼續作爲一個持續經營實體提出了重大疑問。附帶的未經審計的簡明合併財務報表是在公司將繼續作爲持續經營實體的基礎上編制的，這意味着公司將能夠在可預見的未來正常業務過程中實現資產並償還負債和承諾。因此，附帶的未經審計的簡明合併財務報表不包括可能因這些不確定性結果而導致的任何調整。
12
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
2. 重要會計政策之摘要
報告範圍
附帶的未經審計的簡式綜合財務報表包括公司及其所擁有的直接和間接子公司的帳戶。 100％擁有的，直接和間接子公司，並已根據美國通用會計準則（「GAAP」）編制。在編制未經審計的簡式綜合財務報表時，所有公司間交易和餘額已被消除。這些報表反映了所有調整，包括正常經常性調整，管理層認爲這些調整對公允呈現其中所含信息是必要的。根據美國證券交易委員會（「SEC」）的規定和法規，按照GAAP編制的財務報表通常包含的某些信息和腳註披露已經被壓縮或省略。這些中期財務報表應與我們2023年年度報告Form 10-k中包含的經審計的綜合財務報表一起閱讀，其中包括相關附註。這些中期結果並不一定代表全年結果。
使用估計
根據公認會計原則編制財務報表要求管理層做出估算和假設，這些估計和假設會影響財務報表日報告的資產負債金額和或有資產負債的披露以及報告期內報告的收入和支出金額。實際結果可能與這些估計有所不同。
應用開發成本
爲與當前年度報告的呈現保持一致，特定的以前年度金額已重新分類。重新分類對報告的經營業績沒有影響。
A-1、A-20億.1和B-2優先股
根據第3條說明 信貸和證券購買交易， 在2024年6月和8月分別發行的A-1和A-2優先股，隨後在2024年9月分別轉換爲B-1和B-2優先股（統稱「B優先股」），連同A-1優先股和A-2優先股一起，根據時間經過變得可贖回，因此符合被歸類爲臨時權益的標準。管理層選擇根據ASC 480-10-S99-3A-15(b)承認贖回價值的變化。因此，公司將在每個報告日期重新計量優先股至最大贖回價值，但不得低於其初始賬面價值。調整已在公司未經審計的簡明綜合資產負債表中反映在受限制的資本溢價中。
根據《稅收法典45X》的生產稅收抵免（「PTC」）
13
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
2.重要會計政策摘要 （續）
由於PTC是可退還的稅收抵免（即，具有直接支付選項的抵免），所以PTC不在ASC 740的範圍內。因此，公司根據政府補助模型覈算PTC。根據美國通用會計準則（GAAP），不涉及ASC 740範圍之外的企業獲得的政府補助的會計處理。公司的會計政策是類比於國際會計準則第20號， 《政府補助的會計處理和政府資助的披露》 根據國際財務報告準則（IFRS）的國際會計準則第20號。根據國際會計準則第20號，一旦合理確保實體將遵守補助的條件，補助款項將按照與實體確認相關支出或損失的期間相適應的系統性基礎進行確認。公司將在有把握地確保滿足以下條件的兩者情況下確認補助款項：（1）公司有資格獲得該補助，以及（2）公司能夠遵守補助的相關條件。PTC是一種非貨幣資產，因爲公司的意圖是將稅收抵免出售給第三方，並按照預期從出售中獲得的價值記錄在公司未經審計的簡明合併資產負債表的補助應收款中，隨後在未經審計的簡明合併綜合經營利潤表的營業成本中計入。在PTC出售的情況下，在收到現金支付後， 公司將對補助應收款進行抵消記錄。PTC記錄價值與銷售價格的差異將被確認爲調整項，計入公司未經審計的簡明合併綜合經營利潤表的營業成本中。
公允價值選擇
公司已選取ASC 825-10下的選項， 信貸損失（Topic 326）：金融工具的信貸損失測量（"ASC 825"），對2024年8月29日（見注3，Credit和證券購買交易）以公允價值衡量拖延性提款期貸款，可單獨選取某種工具並且除非發生新的選舉日期，否則不可撤銷。當選擇某種工具的公允價值選項時，該工具的未實現收益和損失將在每個隨後的報告日期報告於不經審計的綜合損益及綜合（損失）收益表中。與選取公允價值選項的相關的預付費用和費用將在發生時即認可爲收益，並不予以推遲。這些金額包括在不經審計的綜合損益及綜合（損失）收益表中的其他費用中。由於特定工具風險變化所致的收益或損失包含在債務公允價值變動 - 信用風險中的累積其他綜合收益中。
最近的會計聲明
2023年11月，FASB發佈了ASU 2023-07，分部報告（主題 280）：報告服務部門（主題 280）變更披露方式，通過升級對意義重大的分部費用的披露來改進分部報告披露要求。該準則適用於 2023 年 12 月 15 日之後的財年和 2024 年 12 月 15 日之後的財年間隔期。該準則必須適用於財務報表中呈現的所有期間的追溯。該公司目前正在評估該標準對合並財務報表的影響。 （ASU 2023-07）要求公司（即使只有一個可報告部門）需在年度和中期披露重要的部門費用和其他部門項目，並在中期披露有關一個可報告部門的利潤或損失及資產的所有信息，這些信息目前要求在年度披露。此外，還要求公司披露首席運營決策者的職位和頭銜。ASU 2023-07並未改變公司如何確定其經營部門，對其進行彙總或應用量化門檻來確定其可報告部門。ASU 2023-07自2023年12月15日後開始的財政年度和2024年12月15日後開始的財政年度內的中期期間生效。允許提前採用。公司應該將ASU 2023-07的修訂內容追溯地應用於財務報表中呈現的所有之前期間。公司目前正在評估採納ASU 2023-07的影響，並預計不會對公司的財務狀況、業績和現金流產生重大影響。.
14
目錄
EOS 能源企業有限公司
未經審計的簡明合併財務報表附註
（以千計，股票和每股金額除外）
3. 信貸和證券購買交易
信貸及擔保協議（「信貸協議」）
延遲付款期貸款
根據2024年6月30日提交給美國證券交易委員會的10-Q表，公司於2024年6月21日與Cerberus Capital Management LP的關聯方CCm Denali Debt Holdings，LP（以下簡稱" Cerberus"、「Denali」、「放款人」、「持有人」）簽訂了信貸和擔保協議（「信貸協議」）。根據該交易，Cerberus同意提供一筆分期付款貸款（「分期」和統稱爲「延遲提款期貸款」或「DDTL」）以及一筆循環信貸設施（「循環信貸設施」），該設施將由放款人自行決定提供，並且僅在延遲提款期貸款完全籌集到位時提供。2024年6月21日，初始的分期已資助（「初始提款」）。2024年8月29日，8月份的全額分期資助到位。隨後，2024年10月31日的全額分期資助到位（見附註21 - 210,500 受擔保多次提款融資，分 四個 分期（"分期"，統稱爲"延遲提款期貸款"或"DDTL"），以及一筆循環信貸設施（"循環信貸設施"），將由放款人自行決定提供，僅當延遲提款期貸款全部籌集到位時才提供。105,000 部分資助（"初始提款"）。75,000 部分資助"。30,000 8月份的全額分期資助到位。65,000 10月31日的全額分期資助到位（詳見附註21 - 後續事項） 供進一步討論。 剩餘金額爲$40,500 定於2025年1月31日按照信貸協議中規定的條款和條件實現績效指標後進行融資。
證券購買協議(以下簡稱「協議」)
2024年6月21日，公司與CCm Denali Equity Holdings，LP（「買方」）簽署了一份證券購買協議（「SPA」）
SPA認股權證
根據SPA協議，公司發行了一份購買warrants的認股權證 43,276,194 股份代表權益的股東共有份額 19.9%的期權（「SPA認股證」） 十年 期權價格爲每股$0.01 每股定額爲$，而且權利包括抗稀釋措施，但有些排除情形，即如果任何普通股、期權、warrants、可轉換證券或以普通股支付的其他股本或與股本相等的證券以低於發行日的普通股的公平市值（如認股權證中定義）的價格發行，就需調整。在公司獲得股東批准之前，公司不得發行額外股份超過初始提款日期的已發行和流通股份的% 19.99（這一百分比根據認股權證條款調整的）在行使warrants時，公司不得發行的普通股超過現有普通股的% 49.9（如有關日期的發行普通股總數得到股東批准後，認股權利的上限將提升至% 49.9在2024年9月10日獲得了股東批准。
SPA權證可由持有者自行選擇以現金或無現金方式行使。如果一股的公平市值大於當時有效的行使價，則SPA權證在到期日自動按無現金方式行使。根據信貸協議加速時，公司可能需要按持有者要求的收盤價減去SPA權證價格的金額購買SPA權證。SPA權證符合ASC 480下的責任分類標準，並以公允價值確認，公允價值變動計入未經審計的綜合經營損益中的衍生品公允價值變動 - 關聯方中的變動。
15
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
3. 信貸協議和證券購買交易 （續）
有條件認購權證
根據信貸協議中規定的日期實現業績里程碑後，公司將獲得額外的資金，並將根據放貸人的選擇，發行優先股（A-1或A-2優先股，如果在股東批准之前或B系列優先股如果在股東批准之後）或普通股權證（統稱爲"有條件權證"），金額相當於適用百分比，最高總額爲 33.0在延遲Draw期貸款完全提取時，持股比例上限爲全額稀釋基礎上的％。有條件權證符合ASC 480的負債分類標準。因此，有條件權證按照2024年9月30日未經審計的摘要合併資產負債表上公平價值列示爲關聯方權證負債。有條件權證公平價值變動金額包括在公司未經審計的綜合損益表中的相關方衍生工具公平價值變動中。詳見注14， 權證負債，進一步討論SPA權證和有條件權證。
A-1系列可轉換優先股
2024年6月21日，公司向特拉華州州務卿提交了A-1系列認證書，併發行了 59 A-1優先股份以滿足信貸協議的條款。根據A-1系列認證書的條款，每份A-1優先股的原始發行價格爲$455,822.59 （「A-1原始發行價格」）， 以及一個與普通股支付的清算價值，就好像這些股票被轉換爲 541,357 股，或合計 31,940,063 股普通股，視情況調整。
The 59 塞伯瑞斯獲得股東批准後，於2024年9月10日將A-1優先股轉換爲B-1優先股。請參閱下文關於B優先股的討論。
A-2首選股票
2024年8月29日，公司向特拉華州州務卿辦公室提交了A-2系列指定證書（「A-2系列指定證書」）。
根據A-2首選股票指定證書的條款，每股A-2首選股票的原始發行價爲$9,555,515.30 （稱爲「A-2原始發行價」）和一項清算價值，與普通股同時支付，就像這種股份可轉換成 4,115,209 股，或者 28,806,463 股普通股的總數，受調整約束。A-2首選股票不具有表決權，也不可轉換爲普通股。A-2首選股票持有人有權按照A-2首選股票的清算價值（在A-2首選股票指定證書中定義）所代表的普通股股份數，收到分紅或分配，金額等於實際支付給普通股每股的分紅或分配乘以每股A-2首選股票的股數。A-2首選股票條款與A-1首選股票的條款基本相同。
2024年8月29日，在與Cerberus簽訂的信貸協議條款規定下，與8月抽籤相關聯，適用比例增加了 4.9%，因此，公司向Cerberus發行了 7 股A-2優先股。
The 7 Cerberus持有的A-2優先股轉爲B-2優先股，待2024年9月獲得股東批准。請參閱下文有關B優先股的討論。
Series B優先股
2024年9月11日，公司向特拉華州州務卿提交了 Series b-1 非投票可轉換優先股的指定證明書（「Series b-1」）和 Series b-2 非投票可轉換優先股的指定證明書（「Series b-2」）。
16
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
3. 信貸協議和證券購買交易 （續）
根據系列b-1指定證書的條款，每股b-1優先股的面值爲$0.0001 每股股（「b-1優先股」）的原始發行價格爲$841,999.99 （「b-1原始發行價格」）。
下表總結了截至2024年9月30日公司未償付的優先股。
優先股
發行日期
已發行股票
原始發行價
流通股數
普通股等效
Series B-1優先股9/12/202431.940063$841,999.99 31.94006331,940,063 
B-2優先股
9/12/202428.806463$2,322,000 28.80646328,806,463 
轉換權：根據B-2系列認股權證書的條款，每股B-2優先股，面值$0.0001 每股原始發行價爲$2,322,000 （B-2原始發行價格）。B系列優先股可按照 1.0B系列優先股每股轉換成普通股的轉換比率爲
分紅派息：持有B系列優先股的股東有權按照每股B系列優先股實際支付的股利或分配額，基於按換算基礎上每股普通股實際支付的股利或分配額。
任命董事: 持有優先股股東在任何時候實際擁有公司至少百分之　時，優先股股東獨家以共同投票作爲一個獨立類別，將有權任命分別爲1、2、3或4名董事加入公司董事會（「董事會」）。僅當此類任命不會導致公司任何管理文件下的控制權轉移或違反納斯達克等適用法律的要求，包括證券交易委員會和納斯達克等規定，優先股股東將有權任命第四名董事加入董事會。 10%, 15% 30％，或在SOFR借款的情況下爲 40所有持有首選股票的股東，作爲一個獨立的類別，共同投票，可以最多任命1、2、3或4名董事加入公司董事會（「董事會」）。只有在此類任命不會導致公司管理文件下的控制權變更或違反任何適用法律，包括證券交易委員會和納斯達克的要求時，首選股票股東才有權任命第四名董事加入董事會。
優先購買權：《b系列指定證書》包括慣例的優先購買權條款，允許b系列優先股持有人蔘與公司未來某些股權發行。
在公司自願或強制清算、解散或清算時，Series B優先股持有人有權按比例與普通股持有人及公司根據股權購買協議和信用協議（「投資者優先股」）發行的任何其他優先股持有人一起共享公司資產或剩餘資金的分配，包括Series B優先股，金額相當於每股應支付的金額，如果所有Series B優先股已轉換爲普通股的話。

保護性條款：在投資方優先股股東不再持有至少公司未發行 preference 股總數一半的股份，或者直至 2029 年 6 月 21 日，根據多數投資方優先股已發行 preference 股票的積極投票，公司不得采取可能不利於優先股股東權益的某些行動。 5保護性條款：在投資方優先股股東不再持有至少公司未發行 preference 股總數一半的股份，或者直至 2029 年 6 月 21 日，根據多數投資方優先股已發行 preference 股票的積極投票，公司不得采取可能不利於優先股股東權益的某些行動。

贖回權：對於b-1系列優先股，在2029年6月21日之後的任何時候，如果是b-2系列優先股，則在2029年8月29日，任何持有人持有的b系列優先股的已發行股份均可按贖回價格兌換成現金。贖回價格將爲每股金額，等於（i）b-1原始發行價格或b-2原始發行價格（如適用），加上截至贖回之日的所有應計和未付股息，以及（ii）適用的b系列優先股轉換後可發行的普通股數量乘以五股普通股收盤銷售價格的平均值（5) 贖回之日前的工作日加上贖回之日之前的所有應計和未付股息，直至贖回之日。
17
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
3. 信貸協議和證券購買交易 （續）
截至2024年9月30日，b-1系列和b-2系列優先股均按其贖回價值，在未經審計的綜合資產負債表上被分類爲中間權益，因爲有可能被贖回。公司在未經審計的股東赤字綜合報表中記錄了b-1系列和b-2系列優先股的增值，這降低了已收資本。
Atlas賠付信和保險公司信函協議
2024年6月21日（「Atlas設施終止日期」），公司與ACP Post Oak Credit I LLC（「Atlas」）和Atlas放款人（以下統稱「Atlas放款人」）簽署了一份償付函協議（「Atlas償付函」），涉及公司的優先擔保期限貸款（請參閱附註13，「借款」）。 借款 ，日期爲2022年7月29日（「Atlas信貸協議」），由公司和Atlas作爲借款人、行政代理人和抵押代理人以及隨時作爲協議方的放款人共同簽署（與Atlas一起，統稱「Atlas放款人」）。根據Atlas償付函，到達Atlas設施終止日期時，Atlas信貸協議和相關設施文件下的所有未清償義務都被視爲已全額支付和清償，Atlas放款人授予或持有的所有安全利益和其他留置權均被撤銷和釋放。根據Atlas償付函，公司同意在Atlas設施終止日期支付給Atlas放款人（a）約$11,900 （已從根據Atlas信貸協議維護的利息託管帳戶中釋放），以及（b） $8,000 。Atlas還同意，在代替公司應付的金額的情況下，根據Atlas和貸款人之間協商達成的信貸協議中獲得$1,000 參與度。公司不承擔Atlas和貸款人之間參與協議的義務。優先擔保期限貸款的償付導致重組收益。這些金額包括在未經審計的收支表中的債務攤銷收益（損失）中。請參閱附註13。 借款，以進行進一步討論。
就Atlas信貸協議的終結，公司與保險公司簽訂了一封保險人信函協議，日期爲2024年6月21日（「保險人信函協議」），與在Atlas信貸協議中向某些Atlas貸款人發行保險單的保險公司（「Atlas保險人」）達成協議，公司和Atlas保險人同意，公司應根據保險人信函協議的條款支付給Atlas保險人，（i）在2024年12月31日，前提是信貸協議中沒有發生特定的違約事件，$3,000 和（ii）在2025年6月30日，前提是信貸協議中沒有發生特定的違約事件，$4,000。這些金額已包含在未經審計的簡化合並資產負債表中的應計費用中。
4. 收入確認
該公司主要通過銷售其能源儲存系統和服務（包括安裝、調試和延長保修服務）而獲得營業收入。 產品銷售收入一般在一時點確認，而服務收入一般按時間確認，具體如下：
在截至9月30日的三個月中
在截至9月30日的九個月中，
2024202320242023
產品收入$368 $662 $7,465 $9,586 
服務收入486 22 888 182 
總收入$854 $684 $8,353 $9,768 
截至2024年9月30日的三個月，公司有兩個客戶佔總營業收入的 65.6%和21.8；截至2024年9月30日的九個月，有兩個客戶佔總營業收入的 80.3%和10.1，因公司專注於轉型到新的製造業-半導體生產線。
截至2023年9月30日三個月的時間，公司有兩位客戶佔總營業收入的 51.4%和35.5分別佔總營業收入的百分之 91.0；截至2023年9月30日九個月的時間，我們有一位客戶佔總營業收入的百分之
18
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
4. 營業收入確認 (續)
合同資產和合同負債
以下表格提供了有關與客戶簽訂的合同中的合同資產和合同負債的信息。 合同資產，流動性，合同負債，流動性和合同負債，長期性分別列在未經審計的簡明綜合資產負債表上，預計在超過十二個月內可以確認的合同資產列在其他資產淨額下。
 
2024年9月30日
2023年12月31日
合同資產$13,051 $8,322 
合同負債$12,024 $6,610 
公司在某些合同中承認合同資產，其中銷售收入識別績效義務已完成，但尚未向客戶開具發票。合同負債主要與客戶預付公司在合同安排下履行績效義務相關。合同餘額在每個報告期結束時按合同基礎報告爲淨合同資產或負債。
合同資產增加了$4,729 截至2024年9月30日的九個月內，合同資產增加，因爲尚未發生發票的收入確認。
以下表格提供了2024年9月30日結束的九個月內合同負債變動信息:
 2024
合同負債，期初
$6,610 
營業收入確認
(8,128)
預收款項
7,457 
未開票應收賬款
6,085 
期末合同負債
$12,024 
2024年9月30日的合同負債預計將在接下來的十二個月內確認8,721 和長期合同負債$將在十二個月以上內確認爲營業收入3,303 2024年9月30日的合同資產預計將在接下來的十二個月內確認，和長期合同資產$預計將在十二個月以上內確認爲應收賬款11,911 2024年9月30日的合同資產預計將在接下來的十二個月內確認，和長期合同資產$預計將在十二個月以上內確認爲應收賬款1,140 將在接下來的十二個月內確認爲應收賬款，長期合同資產$預計將在十二個月以上內確認
剩餘績效承諾
剩餘履約義務（「RPO」）代表未滿足或部分未滿足履約義務的分配交易價格。公司預計將根據公司的營業收入確認政策，於履約義務得到滿足時確認與RPO有關的營業收入，詳見附註2。 重要會計政策簡介 的公司年度報告Form 10-k截至2023年12月31日。截至2024年9月30日，公司的剩餘履約義務約爲$30,149。公司預計在接下來的十二個月內確認約 75%的剩餘履約義務的營業收入，其餘部分將在之後確認。
19
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
5. 現金、現金等價物和受限制的現金
限制性現金 - 當前包括與美國海關保險相關的繳款和與我們信用卡計劃協議相關的託管存款。
到2024年9月30日的長期受限現金，與信貸協議中定義的最低流動性契約有關。在第一筆資金注入之前，公司不得允許現金及現金等價物隨時低於$。2,500一旦第一筆資金注入，要求增加至$。5,000 一旦延遲支取期貸款全部發放，或首次通過DOE LPO發生任何負債，或公司實現正的最低合併EBITDA時，要求增加至$。15,000.
截至2023年9月30日的長期受限現金款項與需要根據優先擔保長期貸款協議以託管金額等於下一筆 四個 季度利息支付截至資產負債表日期應付款項。公司在2024年6月SPA和信貸協議的相關事宜中，達成一致意見，清償並終止優先擔保長期貸款。因此，相關託管帳戶中持有的受限現金已被釋放（見第13條註釋， 借款和註釋3， 信貸協議和證券購買交易 用於進一步討論).
以下表格將未經審計的簡明合併資產負債表中報告的金額與未經審計的簡明合併現金流量表中報告的現金、現金等價物和受限現金進行了調解：
2024年9月30日
2023年9月30日
現金及現金等價物$23,015 $57,970 
限制性現金-流動2,625 3,439 
長期限制性現金5,000 11,652 
總現金、現金等價物和受限制現金 $30,640 $73,061 
6. 庫存
以下表格提供了庫存餘額信息：
 
2024年9月30日
2023年12月31日
原材料$20,738 $15,487 
在製品4,645 1,105 
成品525 478 
總庫存，淨額$25,908 $17,070 
20
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
7. 淨固定資產
以下表格提供了關於固定資產、廠房和設備的淨餘額的信息:
 預計使用壽命
2024年9月30日
2023年12月31日
設備
5至10年
$51,831 $20,559 
融資租賃
5年
504 504 
傢俱
5至10年
2,283 2,103 
租賃改良使用壽命較短的傢俱/
剩餘租約		9,047 7,718 
工具
2至3年
9,483 7,045 
施工進行中（「CIP」）
82 17,958 
　　　　　　　　總計73,230 55,887 
減：累計折舊 (21,684)(18,032)
固定資產、淨額$51,546 $37,855 
與房地產、廠房和設備相關的折舊費用分別爲$三個月和$六個月截至2023年6月30日。2,669 和 $2,144 截至2024年9月30日和2023年的三個月以及$5,193 和 $7,255 分別爲截至2024年和2023年9月30日九個月的$
該公司記錄了2024年9月30日和2023年9月30日的財產、廠房和設備減值損失分別爲$3,192 和 $955 ，分別爲2024年9月30日和2023年9月30日的三個月，以及$3,528 和 $7,151 ，分別爲2024年9月30日和2023年9月30日的九個月。2023年的減值損失主要是由於設備更換、某些生產流程外包和從Gen 2.3電池系統到Z3™電池系統的生產轉變。2024年的減值主要與從Z3™-Phase 1到Z3™-Phase 2生產的設計變更有關，其中Phase 1生產資產無法用於Phase 2生產或改變用途。
2024年6月28日，公司成功啓動了第一條製造業-半導體生產線的商業運營。因此，根據2024年6月28日的情況，將在建設中的資產重新分類爲設備、租賃改善、傢俱和工裝。在重新分類之前的在建工程中，資本化的利息成本爲$1,841 截至2024年9月30日的九個月期間資本化的利息成本爲$。 否 在2023年9月30日和2024年9月30日的三個九個月期間以及在2024年9月30日的三個月期間，資本化的利息成本得到了確認。
8. 無形資產
無形資產包括價值爲$的專利400這些專利被確定爲有用壽命，並按照成本分期攤銷到業務結果中 $244,200，將在歸屬期內按比例確認。公司在截至2024年9月30日的九個月內，涉及專利的攤銷費用爲$10 截至2024年9月30日和2023年的三個月以及$30 公司記錄了截至2024年和2023年9月30日的九個月期間，與專利相關的攤銷費用爲$
公司在2023年6月30日和2022年6月30日的三個和六個月內將$百萬的授予股票-based報酬支出資本化爲軟件成本，分別相比$   百萬146 內部使用軟件成本，包括$8 在截至2024年9月30日的九個月內資本化的成本。該軟件具有一定的使用壽命，將在結果中分期攤銷 3 年。公司分別記錄了截至2024年9月30日和2023年的九個月中與軟件相關的攤銷費用$12 和 $11 截至2024年9月30日和2023年的三個月以及$36 和 $31 。
21
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
9. 應收票據淨額和變量利益實體（"VIEs"）考量
應收票據淨額涉及公司向客戶提供的融資。公司以未償本金餘額減去損失準備金報告應收票據。信用損失的估計基於歷史趨勢、客戶的財務狀況和當前經濟趨勢。公司按固定利率收取利息，並通過將有效利率應用於未償本金餘額來計算利息收入。
公司截至2024年9月30日和2023年12月31日的應收票據淨額爲$847 和 $863 按照附帶的非經審計簡明合併資產負債表，這些金額包括在其他資產淨額和其他流動資產中。截至2024年9月30日和2023年12月31日，與應收票據相關的預期信用損失準備額爲$37 和 $2分別爲。
公司爲客戶提供應收票據融資的VIE。然而，公司不是主要受益人，因爲公司沒有權力指導對VIE經濟績效影響最大的活動。因此，VIE未納入公司合併基本報表。. 最大損失風險僅限於資產負債表日期的應收票據賬面價值。
10. 應計費用
應計費用如下所示:
2024年9月30日
2023年12月31日
應計工資$7,524 $4,553 
保修儲備 (2)
4,695 6,197 
應計的法律和專業費用11,468 10,710 
合同損失準備3,692 3,351 
應付保險費
— 2,605 
其他 (1)
10,386 4,916 
總應計費用$37,765 $32,332 
(1) 上表中截至2024年9月30日的其他應計費用中，包括$7,000 根據保險人信函協議支付。
請參閱說明3， 信貸和證券購買交易 進一步討論。
(2) 請查看以下表格，了解截至2024年9月30日爲止三個月和九個月的保修儲備活動。

以下表格總結了保修儲備金活動:

截至9月30日的三個月
截至9月30日的九個月
2024202320242023
保修儲備-期初$5,054 $4,421 $6,197 3,836 
本期交付的增加61 58 326 455 
保修儲備估計變動— 416 (1,150)1,124 
已發生的保修成本(420)— (678)(520)
保修儲備-期末$4,695 $4,895 $4,695 $4,895 
22
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
11. Government Grants
Inflation Reduction Act of 2022 (“IRA”)
On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 into law. The IRA has significant economic incentives for both energy storage customers and manufacturers for projects placed in service after December 31, 2022. Starting in 2023, there are PTC, which can be claimed on battery components manufactured in the U.S. and sold to U.S. or foreign customers. The tax credits available to manufacturers include a credit for ten percent of the cost incurred to make electrode active materials in addition to credits of $35 per kWh of capacity of battery cells and $10 per kWh of capacity of battery modules. These credits are cumulative, meaning that companies will be able to claim each of the available tax credits based on the battery components produced and sold through 2029, after which the PTC will begin to gradually phase down through 2032.
In April 2024, the Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations (Final Regulations) on the transferability of certain energy tax credits, pursuant to Section 6418 of the Internal Revenue Code of 1986, as amended, which was enacted as part of the Inflation Reduction Act of 2022. The Company has reviewed these regulations and believes they do not have a material impact on the financial statements.
In October 2024, the Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations (Final Regulations) to provide guidance on the PTC established by the Inflation Reduction Act of 2022. The Company is currently assessing the potential implications of these regulations on the financial statements.
Since the PTC is a refundable credit (i.e., a credit with a direct-pay option available), the PTC is outside the scope of ASC 740. Therefore, the Company accounts for the PTC under a government grant model. GAAP does not address the accounting for government grants received by a business entity that are outside the scope of ASC 740. The Company’s accounting policy is to analogize to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, under IFRS Accounting Standards. Under IAS 20, once it is reasonably assured that the entity will comply with the conditions of the grant, the grant money is recognized on a systematic basis over the periods in which the entity recognizes the related expenses or losses for which the grant money is intended to compensate. The Company recognizes grants once it is probable that both of the following conditions will be met: (1) the Company is eligible to receive the grant and (2) the Company is able to comply with the relevant conditions of the grant.
The PTC is recorded as the applicable items are produced and sold and the conditions in the preceding paragraph are met.
During the second quarter of 2024, the Company entered into tax credit purchase agreements to sell and transfer all of the PTCs related to the production and sale of battery cells and battery modules produced in calendar years 2023 and in the first quarter of 2024, that were eligible to be claimed on the Company’s tax returns for the related years. The transferred tax credits were sold at 90% of their value and the cash purchase price of the PTCs was $3,430.
Cash was received from the buyer in April and June of 2024, after the completed registration requirements were filed through the IRS‑provided electronic portal, inclusive of registration numbers needed to claim the credit on the Buyer’s tax return. Upon the receipt of the cash payments, the Company recorded offsets to the PTC/Grant Receivable account. There were no differences between the recorded fair value of the PTC receivable and the amount of consideration received. Future differences, if any, will be recognized as an adjustment to cost of goods sold.
The Company recognized PTC credits of $170 and $109 for the three months ended September 30, 2024, and 2023 and $1,837 and $953 for the nine months ended September 30, 2024 and 2023, respectively, as a reduction of cost of goods sold on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. As of September 30, 2024, and December 31, 2023, grant receivable related to the PTC in the amount of $1,506 and $3,256, respectively, is recorded in the Unaudited Condensed Consolidated Balance Sheets.
23
Table of Contents
EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
12. Related Party Transactions
2021 Convertible Note Payable
In July 2021, the Company issued a convertible note in the aggregate principal amount of $100,000 to Spring Creek Capital, LLC, a wholly-owned, indirect subsidiary of Koch Industries, Inc. (the “2021 Convertible Note”). In connection with the 2021 Convertible Note, the Company paid $3,000 to B. Riley Securities, Inc., a related party, who acted as a placement agent. Refer to Note 13, Borrowings, for additional information.
AFG Convertible Notes
In January 2023, the Company issued and sold $13,750 of 26.5% Convertible Senior PIK Notes due in 2026 (“AFG Convertible Notes”) to Great American Insurance Company, Ardsley Partners Renewable Energy, LP, CCI SPV III, LP, Denman Street LLC, John B. Bending Irrevocable Children’s Trust, John B. Berding and AE Convert, LLC, a Delaware limited liability company managed by Russell Stidolph, a director of the Company (together, the “AFG Convertible Notes Purchasers”). In connection with the issuance and sale of the AFG Convertible Notes, the Company entered into an investment agreement (the “Investment Agreement”) with the AFG Convertible Notes Purchasers. Refer to Note 13, Borrowings, for additional information.
Standby Equity Purchase Agreement
On April 28, 2022, the Company entered into the Standby Equity Purchase Agreement (“SEPA”). Pursuant to the SEPA, the Company had the right, but not the obligation, to sell to Yorkville shares of its common stock at the Company’s request. On August 23, 2023, the Company and Yorkville terminated the SEPA, as amended, by mutual written consent. See Note 13, Borrowings for pre-advance loans in form of convertible promissory notes and Note 19, Shareholders' Deficit for additional information.
Credit and Securities Purchase Transaction
Pursuant to the terms and conditions of Credit and Securities Purchase Transaction, Cerberus and CCM Denali Equity Holdings, LP, are considered related parties as result of the transactions. Refer to Note 3, Credit and Securities Purchase Transaction for detailed discussion.
13. Borrowings

The Company’s debt obligations consist of the following:
September 30, 2024
December 31, 2023
Maturity Date
  Principal Outstanding
Carrying Value*
Principal Outstanding
Carrying Value*
2021 Convertible Note PayableJune 2026$119,289 $103,469 $115,815 $94,386 
Delayed Draw Term Loan
June 2029108,626 46,099 — — 
AFG Convertible NotesJune 202619,738 34,598 17,429 18,139 
Notes payable - related party
247,653 184,167 133,244 112,525 
Senior Secured Term LoanMarch 2026— — 100,000 85,624 
Equipment financing facilityApril 20263,266 3,262 5,718 5,710 
    Total borrowings250,919 187,429 238,962 203,859 
Current portion2,536 2,536 3,332 3,332 
Total borrowings, non-current$248,383 $184,893 $235,630 $200,527 
*Carrying value includes unamortized deferred financing costs, unamortized discounts and fair value of embedded derivative liabilities, except for the Delayed Draw Term Loan, which is carried at fair value.
24
Table of Contents
EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
13. Borrowings (cont.)
Delayed Draw Term Loan (“DDTL”)
As discussed in Note 3, Credit and Securities Purchase Transaction, the Company borrowed an Initial Draw of $75,000, and received $$71,250, net of the 5.0% original issue discount from Delayed Draw Term Loan facility on June 21, 2024. On August 29, 2024, the Company met the first tranche milestones and submitted a borrowing request under the Credit Agreement for the scheduled $30,000, and received $28,500, net of the 5.0% original issue discount. The remaining two tranches may be drawn in the amounts of $65,000 and $40,500 on October 31, 2024, and January 31, 2025, respectively, upon the Company’s achievement of certain applicable funding milestones. See Note 3, Credit Agreement and Securities Purchase Transaction for additional information on this transaction.
Borrowings under the Credit Agreement bear interest at an annual rate equal to 15.0% per annum, subject to the following increases: (i) an additional 5.0% per annum upon the occurrence of an event of default under the Credit Agreement; and (ii) an additional 1.0% - 5.0% per annum for failure to obtain stockholder approval within 90 to 240 days following the signing of the Credit Agreement. The Company’s may elect to add accrued and unpaid interest on the loans to the principal amount of the loans (capitalized interest). Each tranche under the Delayed Draw Term Loan is subject to a 5.0% original issue discount payable at the time of each draw. Borrowings under the Credit Agreement are subject to certain fees, including (i) an exit fee equal to 5.0% of the aggregate principal amount of Loans, or Revolving Loans being paid, repaid, prepaid, refinanced or replaced in a prepayment event, (ii) a make-whole payment for certain prepayments prior to June 21, 2027 and (iii) a prepayment premium for any prepayments prior to the scheduled maturity date. The Credit and Guaranty Agreement includes a Minimum Liquidity requirement under which the Company shall not permit liquidity at any time be less than $2,500, prior to the first tranche funding. Following the first tranche being funded, the Minimum Liquidity requirement increased to $5,000 and once the Delayed Draw Term Loan is disbursed in full, or the first date any indebtedness is incurred through the DOE LPO, or the Company achieves positive Minimum Consolidated EBITDA, the Minimum Liquidity requirement increases to $15,000.
DDTL計劃於（i）簽署信用協議後的日期之早者到期。 月內。2023年和2022年的三個和九個月期權授予均以授予日公司普通股的公允價值相等的行權價格授予，並且是非法定股票期權。 在簽署信用協議後和（ii）在公司某些未償付可轉換票據到期日前的天數。 91 在公司部分未償付可轉換票據到期日之前的天數。
里程碑
如果公司在任何預定的分期日期或另一個額外的里程碑測量日期未能實現任何里程碑，除非貸款人放棄，否則該公司將不會收到特定的分期款項，並將面臨由高達一個百分點的罰金代表的。 4.0在每個未完成里程碑測量日期，適用百分比將以增加warrants或優先股的形式增加，這可能導致發行額外的優先股或warrants，增加至所有未達里程碑的百分比，或高達一個百分點的。 16.0所有未完成里程碑，或高達一個百分點的總體適用百分比增加的。 如果公司未能實現中期里程碑，但隨後實現該特定類別的最終里程碑，與該里程碑類別相關的漸進式處罰股權將退還給公司。 45.0考慮到百分之一個百分點。 33.0如果公司未能實現中間裏程碑，然後隨後實現該特定類別的最終里程碑，與該里程碑類別相關的漸進式處罰股權將退還給公司。
契約
《授信協議》還包含某些財務契約，包括（均在《授信協議》中定義）
•最低綜合稅息前折舊攤提前之利潤（Minumum Consolidated EBITDA）
•最低綜合營業收入
•最低流動性

截至2024年9月30日止三個月, 公司符合最低可比波動稅息折舊及攤銷前溢利以及最低流動資金財務契約要求，並獲得了 Cerberus 就最低營業收入財務契約不符要求而獲得的豁免。
25
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
13. 借款 (續)
這些貸款受某些違約事件的影響，這些違約事件可能由以下因素觸發：（i）違反信貸協議或相關文件中的付款義務和其他義務和陳述，（ii）本金超過預定金額的其他債務融資下的違約，（iii）未能履行或遵守信貸協議中的某些承諾，（iv）就公司或其任何子公司簽訂法令或救濟令美國《破產法》下的非自願案件或根據任何其他債務人救濟法，(v) 任何金錢判決、扣押令或類似程序，在任何時候涉及的總金額超過美元2,500，（vi）針對公司或擔保人下達的任何命令、判決或法令，下令解散或拆分此類實體，（vii）普通股未能在美國國際認可的證券交易所上市，以及（viii）控制權的變更。
公司選擇公允價值選項來處理拖延支取借款便捷操作。財務責任最初按發行日公允價值計量，隨後在每個報告期日期定期以公允價值重新計量。公司還選擇了8月份支取的公允價值選項。初始支取公允價值以及8月份支取公允價值（合稱DDTL）分別爲$25,653在截至2024年4月30日和2023年10月31日的三個和六個月中，公司分別記錄了2,055美元和4,621美元的利息費用。12,528，對應發行時價值。截至2024年9月30日，DDTL的公允價值爲$46,099。分別於2024年9月30日三個月和九個月的損失分別爲$3,036 和 $3,276 ，這在未經審計的合併利潤表和綜合收益表中的債務公允價值變動中列示。對於截至2024年9月30日三個月和九個月的特定工具風險變動，公司還錄得$4,642 ，這包含在累積其他全面收益中的債務信用風險公允價值變動中。
公司沒有單獨報告DDTL的利息費用，因爲這樣的利息已經包含在票據公允價值的判斷中。請參閱附註15， 公允價值計量 以確定2024年9月30日發行時以及延遲提款期貸款的公允價值所使用的假設。
2021年應付可轉換票據-關聯方
2021年7月6日，公司與科克工業公司的全資間接子公司Spring Creek Capital, LLC簽訂了投資協議。該投資協議規定發行和出售給科克工業公司金額爲$的2021可轉換票據。100,000.
2021年可轉換票據包含一種嵌入式衍生工具特徵，在未經審計的簡明合併資產負債表中作爲應付款項-關聯方的一部分呈現。請參閱註釋15， 公允價值計量 用於判斷截至2024年9月30日和2023年12月31日嵌入式衍生工具的公允價值的假設。
2021年可轉換票據上確認的利息支出如下：
截至9月30日的三個月
截至9月30日的九個月
2024
2023
2024
2023
合同利息支出$1,789 $1,686 $5,264 $4,960 
債務折扣的攤銷1,713 1,365 4,832 3,822 
債務發行成本的攤銷165 132 467 371 
總計$3,667 $3,183 $10,563 $9,153 

26
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
13. 借款 (續)
2021可轉換票據的餘額如下：
2024年9月30日
2023年12月31日
主要$119,289 $115,815 
未攤銷債務折扣(14,780)(19,612)
未攤銷的債務發行成本(1,428)(1,895)
嵌入式轉換功能388 78 
聚合攜帶價值$103,469 $94,386 
公司有義務根據延遲放款期貸款協議的條款，按照半年一次的方式以實物形式償還所有2021年可轉換票據相關的合同利息。因此，截至2024年9月30日和2023年12月31日，2021年可轉換票據的利息應付款項分別爲$1,789 和 無。截至2024年9月30日和2023年9月30日爲止的九個月內，以實物形式支付、資本化並添加到2021年可轉換票據本金中的利息爲$3,474 和 $3,275分別爲。
阿富汗可轉換票據 - 關聯方
2023年1月18日，公司與AFG可轉換票據購買方簽訂了投資協議，涉及向AFG可轉換票據購買方發行和出售總額爲$的票據13,750 公司的AFG可轉換票據按每年%的利率計息，完全以實物支付(「PIK利息」)，並於每年6月30日和12月30日逾期支付利息 26.5。預計票據將於2026年6月30日到期，但可提前轉換、贖回或回購。AFG可轉換票據可按照約定的反稀釋和其他調整因素轉換爲公司每股面值$的普通股，初始轉換價格約爲每股$0.0001 ，公司有權以普通股、現金或兩者任意組合方式結算轉換1.67 。
轉換選項包括行使條件，要求公司獲得股東批准進行交易所上限範圍內的轉換。如果未能獲得普通股額外發行的股東批准，公司將需要以現金形式結算超過交易所上限的轉換。由於在未獲得股東批准的情況下可能需要用現金結算，內嵌轉換功能未能符合ASC 815中的權益分類指南，因此被要求從AFG可轉換票據中分離出來，並在每個報告日期按公允值進行覈算，公允值變動在未經審計的經營活動損益表和全面（損失）收入表中予以確認。內嵌衍生工具作爲應付票據-關聯方的組成部分呈現在未經審計的資產負債表中。內嵌衍生工具的公允值分別爲$17,621 和 $4,345 於2024年9月30日和2023年12月31日。
在發行時，AFG可轉換票據的公允價值爲$16,623，高於實際收到的款項。公司在截至2023年9月30日未經審計的簡明綜合損益表中，記錄了$的差額作爲利息費用。2,873 ，高於實際收到的款項。公司在截至2023年9月30日未經審計的簡明綜合損益表中，記錄了$的差額作爲利息費用。
27
目錄
EOS ENERGY ENTERPRISES, INC。
未經審計的簡明合併基本報表註解
（以千爲單位，除股份數量和每股金額外）
13. 借款 (續)
Interest expense recognized on the AFG Convertible Notes is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Contractual interest expense$1,308 $1,020 $3,617 $2,659 
Amortization of debt discount246 192 682 550 
Amortization of issuance costs
70 54 192 155 
    Total$1,624 $1,266 $4,491 $3,364 
The balances for the AFG Convertible Notes are as follows:
September 30, 2024
December 31, 2023
Principal$19,738 $17,429 
Unamortized debt discount(2,153)(2,835)
Unamortized debt issuance costs(608)(800)
Embedded conversion feature17,621 4,345 
     Aggregate carrying value$34,598 $18,139 
The Company is obligated to repay all contractual interest attributable to the AFG Convertible Notes in-kind on a semi-annual basis, in accordance with the terms of the Investment Agreement. Therefore, as of September 30, 2024 and December 31, 2023, interest payable attributable to the AFG Convertible Notes was $1,308 and nil, respectively. For the nine months ended September 30, 2024 and September 30, 2023, interest that was paid in kind, capitalized and added to the principal amount of the AFG Convertible Note was $2,309 and $1,640, respectively.
Senior Secured Term Loan
On July 29, 2022, the Company entered into a $100,000 Senior Secured Term Loan Credit Agreement with Atlas Credit Partners (ACP) Post Oak Credit I LLC, as administrative agent for the lenders and collateral agent for the secured parties. The Senior Secured Term Loan was scheduled to mature on the earlier of (i) July 29, 2026 and (ii) 91 days prior to the current maturity date of the 2021 Convertible Note of June 30, 2026.
The outstanding principal balance of the Senior Secured Term Loan bears interest, at the applicable margin plus, at the Company’s election, either (i) the benchmark secured overnight financing rate (“SOFR”), which is a per annum rate equal to (y) the Adjusted Term SOFR plus 0.2616%, or (ii) the alternate base rate (“ABR”), which is a per annum rate equal to the greatest of (x) the Prime Lending Rate, (y) the NYFRB Rate (as defined in the agreement) plus 0.5% and (z) the SOFR. The applicable margin under the Credit Agreement is 8.5% per annum with respect to SOFR loans and 7.5% per annum with respect to ABR loans. Interest on the Senior Secured Term Loan accrues at a variable interest rate and interest payments are due quarterly.
Additionally, interest was required to be escrowed based on the principle outstanding. This amount was $11,755 at December 31, 2023. This escrowed and restricted cash was presented on a separate line item on the Unaudited Condensed Consolidated Balance Sheets as Long-term restricted cash. The agreements also contained customary affirmative and negative covenants. The Company was in compliance with all covenants prior to and at the time of the loan termination, as discussed below.
Termination of the Senior Secured Term Loan
On June 21, 2024, the Atlas Credit Agreement, and the subsequent commitment increase agreements thereto, which provided for a $100,000, were terminated pursuant to the terms of the Atlas Payoff Letter and the Insurer Letter Agreement, and all security interests and other liens granted to or held by the Atlas Lenders were terminated and released.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
13. Borrowings (cont.)
In accordance with the Atlas Payoff Letter, the Company agreed to payoff the Senior Secured Term Loan for (a) approximately $11,900 (which was released from the interest escrow account maintained pursuant to the Atlas Credit Agreement and (b) $1,000 for the account of Atlas; provided that Atlas agreed to accept a participation in the Credit Agreement in lieu of such $1,000 payment, and (c) $8,000. In accordance with the Insurer Letter Agreement, the Company shall pay to the Atlas Insurers (i) on December 31, 2024, subject to the absence of certain events of default under the Credit Agreement, $3,000 and (ii) on June 30, 2025, subject to the absence of certain events of default under the Credit Agreement, $4,000.
Absent termination, the Senior Secured Term Loan would have matured on the earlier of (i) July 29, 2026 and (ii) 91 days prior to the maturity of certain of the Company’s outstanding convertible notes. The aggregate principal amount of the Senior Secured Term Loan outstanding was $100,000 at the time of termination.
公司根據ASC 470-60準則處理了高級擔保期限貸款的終止債務重組。因此，公司在2024年9月30日結束的九個月的未經審計的簡明合併利潤表和綜合(損失)收入中確認了一項重組收益$68,478 。
See Note 3, Credit Agreement and Securities Purchase Transaction for additional information on this transaction.
The following table summarizes interest expense recognized:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Contractual interest expense$— $3,540 $6,858 $10,366 
Amortization of debt discount— 105 224 297 
Amortization of debt issuance costs— 929 1,980 2,624 
Total $— $4,574 $9,062 $13,287 
The Senior Secured Term Loan balances are as follows:
December 31, 2023
Principal$100,000 
Unamortized debt discount(1,459)
Unamortized debt issuance costs(12,917)
     Aggregate carrying value$85,624 
Equipment Financing facility
The Company entered into an agreement on September 30, 2021 with Trinity Capital Inc. (“Trinity”) for a $25,000 equipment financing facility, the proceeds of which will be used to acquire certain manufacturing equipment, subject to Trinity’s approval. Each draw is executed under a separate payment schedule (a “Schedule”) that constitutes a separate financial instrument. The financing fees included in each Schedule are established through monthly payment factors determined by Trinity. Such monthly payment factors are based on the Prime Rate reported in The Wall Street Journal in effect on the first day of the month in which a Schedule is executed. The Company has drawn a portion of the facility as follows:
Date of Draw
Gross Amount of Initial Draw
Coupon Interest RateDebt Issuance Costs
September 2021$7,000 14.3%$175 
September 20224,216 16.2%96 
    Total Equipment Financing loans$11,216 $271 
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
13. Borrowings (cont.)
As of September 30, 2024 and December 31, 2023, total equipment financing carrying value was $3,262 and $5,710, respectively of which $2,536 and $3,332 are recorded as a current liability on the Unaudited Condensed Consolidated Balance Sheets, respectively. Interest expense attributable to the equipment financing agreement was $148 and $535 for the three and nine months ended September 30, 2024, respectively. Interest expense attributable to the equipment financing agreement was $265 and $874 for the three and nine months ended September 30, 2023, respectively.
Yorkville Convertible Promissory Notes - Related Party
In December 2022, February 2023, March of 2023, and April 2023, the Company issued convertible promissory notes with an aggregate principal amount of $37,000 in a private placement to Yorkville under the second and third supplemental agreements to the SEPA. The fair values of the convertible promissory notes at issuance were greater than the proceeds received. Accordingly, the Company recorded the excess of fair value of these promissory notes over the proceeds as Interest expense - related party in the amount of $17,572, for the nine months ended September 30, 2023, which is reflected in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
During the first half of 2023, Yorkville delivered Investor Notices requiring the Company to issue and sell an aggregate of 22,947,029 shares of common stock to Yorkville to offset all outstanding amounts owed to Yorkville under the outstanding convertible promissory notes. The Company recognized a loss on debt extinguishment from the issuance of common stock from the outstanding convertible promissory notes of $3,510 for the nine months ended September 30, 2023, which is reflected in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
The conversion feature for each of the convertible promissory notes did not qualify for the scope exception to derivative accounting, therefore the conversion option was bifurcated from each convertible promissory note. The bifurcated derivatives were recorded at their initial fair value on the date of issuance and subject to remeasurement at the debt extinguishment date, with changes in fair value recognized as a realized gain or loss in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. Net gain of $6,922 was recognized for the nine months ended September 30, 2023.
As of December 31, 2023, there were no outstanding Yorkville convertible promissory notes.
14. Warrants Liability
The amount of warrants outstanding and fair value for all warrants as of September 30, 2024 and December 31, 2023 are as follows:
September 30, 2024
December 31, 2023
Number of Warrants Outstanding
Fair Value
Number of Warrants Outstanding
Fair Value
Warrants liability
IPO warrants274,400 $54 274,400 $55 
April 2023 warrants16,000,000 24,178 16,000,000 6,276 
May 2023 warrants3,601,980 5,917 3,601,980 1,544 
December 2023 warrants34,193,105 68,821 34,482,759 19,586 
Total
54,069,485 $98,970 54,359,139 $27,461 
Warrants liability - related party
SPA Warrant
1 115,244 — — 
Contingent warrants(a)
— 151,805 — — 
Total
1 $267,049 — $— 
(a) Contingent warrants represent future issuable shares of stock. See Note 3, Credit and Securities Purchase Transaction for further discussion.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
14. Warrants Liability (cont.)
Warrants liability
The Company issued private placement warrants to B. Riley Financial, Inc. in conjunction with its initial public offering 2020 (“IPO warrants”).
In April 2023, the Company issued 16,000,000 shares of common stock and 16,000,000 private placement warrants to purchase shares of common stock. In May 2023, the Company issued another 3,601,980 shares of common stock and 3,601,980 private placement warrants to purchase shares of common stock (the “April 2023 warrants” and “May 2023 warrants”, respectively).
In December 2023, the Company issued in a combined public offering 34,482,759 shares of common stock and 34,482,759 accompanying common warrants to purchase shares of common stock (the "December 2023 warrants"). For the three and nine months ended September 30, 2024, 289,654 of the December 2023 warrants were exercised.
The IPO, April, May, and December 2023 Warrants are classified as Warrant liability on the Unaudited Condensed Consolidated Balance Sheets. The change in fair value of the IPO, April, May, and December 2023 Warrants is presented as Change in fair value of warrants on the Company’s Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. See Note 15, Fair Value Measurements for further information.
Warrants liability- related party
SPA Warrant
As discussed in Note 3, Credit Agreement and Securities Purchase Transaction, the Company issued to the Purchaser, one warrant to purchase 43,276,194 shares of Common Stock. The warrant has a ten-year term, a $0.01 per share exercise price, and is exercisable at the Purchaser’s discretion for cash or on a cashless basis. Upon an acceleration under the Credit Agreement, the Company could be required to purchase the warrant from the holder at an amount equal to the most recently quoted price. Following stockholder approval on September 10, 2024, the Warrant Conversion Cap increased to 49.9%. See Note 3, Credit Agreement and Securities Purchase Transaction for additional information on this transaction.
Contingent Warrants
Following the Initial Draw, on three separate predetermined draw dates upon the achievement of the corresponding performance milestone for each such draw date, the Company will receive additional funds under the Credit Agreement and will issue securities under the SPA in an amount equal to the applicable percentage, up to an aggregate of 33.0% ownership limitation on a fully-diluted basis at such time the Delayed Draw Term Loan is fully drawn. Although these contingent warrants are not issued or exercisable until additional draws occur, they meet the definition of a derivative and are recognized at fair value with changes in fair value reported in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
15. Fair Value Measurement
Accounting standards establish a hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)

15. Fair Value Measurement (cont.)
The carrying value of cash and cash equivalents, restricted cash, accounts receivable, contract assets, contract liabilities and accounts payable are considered to be representative of their fair value due to the short maturity of these instruments.
The following tables set forth the Company's financial liabilities measured at fair values based on the fair value hierarchy, as described above. These should also be read with Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
September 30, 2024
December 31, 2023
Level 1Level 2Level 3Level 1Level 2Level 3
Liabilities
SPA Warrant (a)
$— $— $115,244 $— $— $— 
Contingent warrants (a)
$— $— $151,805 $— $— $— 
IPO, April, May and December 2023 Warrants (b)
$— $54 $98,917 $— $55 $27,406 
Delayed Draw Term Loan$— $— $46,099 $— $— $— 
Embedded derivatives
$— $— $18,009 $— $— $4,423 
Total liabilities
— $54 $430,074 $— $55 $31,829 
(a) Included in Warrants liability - Related party on the Unaudited Condensed Consolidated Balance Sheets.
(b) All these instruments are Level 3, except for the IPO warrants (Level 2). These are included in Warrants liability on the Unaudited
Condensed Consolidated Balance Sheets.
Each of the following recurring level 2 and level 3 instruments’ valuation model used to determine fair value is disclosed in the Company’s Annual Report on the Form 10-K for the year ended December 31, 2023.
IPO Warrants
The IPO warrants are valued on the basis of the quoted price of the Company’s public warrants, adjusted for insignificant difference between the public warrants and the private placement warrants.
April 2023 warrants, May 2023 warrants and December 2023 warrants
The April 2023 warrants, May 2023 warrants and December 2023 warrants all are valued using the Black-Scholes model at inception and on subsequent valuation dates. This model incorporates inputs such as the stock price of the Company, risk-free interest rate, volatility and time to expiration. The volatility is a significant unobservable input classified as Level 3 of the fair value hierarchy.
Embedded derivatives
The Company estimated the fair value of the embedded conversion features in the 2021 Convertible Note and the AFG Convertible Notes using a binomial lattice model at inception and on subsequent measurement dates. This model incorporates significant inputs such as the stock price of the Company, dividend yield, risk-free interest rate, debt yield and expected volatility. The volatility and debt yield are significant unobservable inputs classified as Level 3 of the fair value hierarchy.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)

15. Fair Value Measurement (cont.)
Accounting for instruments resulting from the Credit and Securities Purchase Transaction
The Loan commitment assets were measured at fair value as of June 21, 2024 (see Note 3, Credit and Securities Purchase Transaction). The fair value was $76,091 at issuance calculated using the discounted cash flow model. They will not be subsequently remeasured at fair value.
The following table summarizes instruments that were initially and subsequently measured at fair value. (see Note 3, Credit and Securities Purchase Transaction):
InstrumentInitial measurement date
Initial Draw of the Delayed Draw Term Loan6/21/2024
SPA Warrant6/21/2024
Contingent Warrants6/21/2024
August Draw of the Delayed Draw Term Loan8/29/2024
The fair value of each draw of the Delayed Draw Term Loan was estimated using a discounted cash flow (“DCF”) method, based on the contractual cash flows discounted at a debt yield and considering the probability of achieving certain milestones.
The fair value for the SPA warrant is estimated based on its intrinsic value, using the Eos common stock closing price adjusted by a discount for lack of marketability (“DLOM”), less the exercise price of $0.01 for the SPA Warrant. A DLOM was applied considering the underlying shares of the SPA Warrants are unregistered.
The fair value of the Contingent Warrants is estimated based on the underlying Eos common stock closing price adjusted by a DLOM and an allowance for certain redemption features using Black-Scholes option pricing model, considering the probability of achieving certain milestones. A DLOM was applied considering the underlying shares of the Contingent Warrants are unregistered.
The fair values for all the above instruments are designated as level 3 measurements as they rely on significant unobservable inputs. The significant unobservable inputs for each of these instruments are disclosed in the tables below. All other inputs used are observable.

Quantitative information about all significant unobservable inputs used in the fair value measurement for non-recurring level 3 measurements:

Loan Commitment Assets:
June 21, 2024
Milestones achievement expectations
Very high probability
Debt yield
47.5 %
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)

15. Fair Value Measurement (cont.)
Quantitative information about all significant unobservable inputs used in the fair value measurement for recurring level 3 measurements:

Delayed Draw Term Loan Initial Tranche
June 21, 2024
September 30, 2024
Debt yield
47.5 %42.5 %
Contingent Warrants- all tranches
June 21, 2024
September 30, 2024
Milestones achievement expectations
Very high probabilityVery high probability
Volatility
70.0 %65.0 %
Discount for lack of marketability (“DLOM”)
10.0 %10.0 %
SPA Warrant
June 21, 2024
September 30, 2024
Discount for lack of marketability (“DLOM”)
10.0 %10.0 %

Delayed Draw Term Loan August Draw
August 31, 2024
September 30, 2024
Debt yield
42.5 %42.5 %
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Table of Contents
EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)

15. Fair Value Measurement (cont.)
Level 3 Rollforward for Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes the changes in the fair value of liabilities that are included within the Company’s accompanying Unaudited Condensed Consolidated Balance Sheets and are designated as Level 3:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Delayed Draw Term Loan
Balance at beginning of the period25,893 $— — $— 
Additions- August Draw
12,528 — 38,181 — 
Change in fair value of Term Loan7,678 — 7,918 — 
Balance at end of the period$46,099 $— $46,099 $— 
SPA Warrant and Contingent Warrants
Balance at beginning of the period$141,296 $— $— $— 
Additions— — 95,094 — 
Conversion to preferred stock
(74,686)— (74,686)— 
Change in fair value of warrants200,439 — 246,641 — 
Balance at end of the period$267,049 $— $267,049 $— 
April, May, and December 2023 Warrants
Balance at beginning of the period$32,450 $56,905 $27,406 $— 
Additions— — — 29,553 
Change in fair value of warrants66,466 (34,065)71,510 (6,713)
Balance at end of the period$98,916 $22,840 $98,916 $22,840 
Embedded derivatives
Balance at beginning of the period$5,414 $42,767 $4,423 $1,945 
Additions— — — 42,191 
Change in fair value of derivatives - related parties1
12,595 (27,398)13,586 (28,767)
Balance at end of the period$18,009 $15,369 $18,009 $15,369 
1 Includes loss on debt extinguishment from Yorkville Promissory Note conversions for the nine months ended September 30, 2023.

The estimated fair value of financial instruments not carried at fair value in the Unaudited Condensed Consolidated Balance Sheets was as follows:
September 30, 2024
December 31, 2023
Carrying ValueFair ValueCarrying ValueFair Value
Notes receivable$847 $743 $863 $719 
Loan commitment assets
58,525 53,274 — — 
2021 Convertible Note*103,469 72,680 94,386 57,998 
Senior Secured Term Loan — — 85,624 61,360 
AFG Convertible Notes*34,598 35,103 18,139 18,352 
Equipment financing facility3,262 2,918 5,710 4,826 
Preferred Stock
156,069 168,668 — — 
  Total$356,770 $333,386 $204,722 $143,255 
*Includes the embedded derivative liabilities.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
16. Commitments and Contingencies
Minimum Volume Commitment
In June 2022, the Company entered into a long-term supply agreement containing a minimum volume commitment with a third party that provides services to process certain raw materials. Any purchase order issued under this supply agreement will be non-cancellable. If the Company fails to order the guaranteed minimum volume defined in the contract at the end of the term, the Company will be required to pay the counterparty an amount equal to the shortfall, if any, multiplied by a fee. The Company is currently negotiating a new long-term supply agreement with the counterparty. As part of the ongoing negotiations, the Company has agreed to pay the counterparty $1,250 as a shortfall penalty and transfer equipment with a net book value of approximately $600. As a result, the Company will be released of any minimum volume commitments as part of the original agreement. A liability of $1,850 has been recorded and is included in Accrued expenses on the Unaudited Condensed Consolidated Balance Sheets and was recognized in Cost of goods sold on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.
Class Action Complaints
On March 8, 2023, a class action lawsuit was filed in the Court of Chancery of the State of Delaware by plaintiff Richard Delman against certain defendants including the Company’s former directors (the “Delman Defendants”). Neither the Company nor Eos Energy Storage LLC were named as a defendant but each was identified in the Complaint as a relevant non-party and the Company has indemnification obligations relating to the lawsuit. On February 1, 2024, the parties agreed to a binding Settlement Term Sheet (the “Settlement”) whereby plaintiff agreed to resolve the lawsuit in exchange for a settlement payment of $8,500, to be fully funded by the Company’s Directors and Officers (“D&O”) liability insurance policies subject to a retention by the Company of approximately $1,000 consisting of the Company’s payment of legal fees related to this matter. On June 1, 2024, the parties submitted to the Court of Chancery a definitive Stipulation and Agreement of Settlement, Compromise, and Release, and related documents. On October 17, 2024, the Court of Chancery approved the proposed Settlement and the Company coordinating the settlement payment with the Company’s D&O insurers.
On August 1, 2023, a class action lawsuit was filed in the United States District Court of New Jersey by plaintiff William Houck against the Company, the Company’s Chief Executive Officer, its former Chief Financial Officer and its current Chief Financial Officer (with the Company, the “Houck Defendants”). The Complaint alleges that the defendants violated federal securities laws by making knowingly false or misleading statements about the Company’s contractual relationship with a customer and about the size of the Company’s order backlog and commercial pipeline. Defendants deny the allegations and, on February 13, 2024, moved to dismiss the Complaint. On March 5, 2024, plaintiff filed an amended complaint that dropped the Company’s former Chief Financial Officer as a defendant. On April 4, 2024, defendants filed a renewed motion to dismiss the lawsuit. The Company intends to continue to vigorously defend against this action.
17. Stock-Based Compensation
Stock-based compensation expense included in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income was as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Stock options$— $1,048 $264 $2,027 
Performance-based restricted stock units
3,681 — 3,681 — 
Restricted stock units2,461 3,408 6,995 8,096 
Total$6,142 $4,456 $10,940 $10,123 
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)

17. Stock-Based Compensation (cont.)
The stock compensation expense has been recorded in cost of goods sold, research and development expenses and selling, general and administrative expenses.
Restricted Stock Units (“RSU”)
As of September 30, 2024, there was $26,569 of unrecognized compensation cost attributable to unvested restricted stock units. Compensation expense for these unvested awards is expected to be recognized over a weighted-average remaining vesting period of 2.4 years for RSUs.
Performance-Based Restricted Stock Units (“PRSU”)
During the third quarter of 2024, the Company granted contingent shares to select key executives that may be earned based on the Company’s total shareholder return (“TSR”) over a two and three-year period following the grant date. TSR awards are paid out in stock at the end of the vesting period based on the Company’s stock performance. The performance is measured by determining the percentile rank of the total shareholder return of the Company’s common stock relative to the TSR of the Russell 2000 index peer group for the two and three-year period following the grant date. This peer group includes the entire Russell 2000 index as it existed at the beginning of the performance period, excluding any companies that were removed from the index during the performance period. The payment of awards following the two and three-year award period is based on performance achieved in accordance with the scale set forth in the plan agreement and may range from 0% to 200% of the initial grant. The fair value of the TSR awards is estimated using a Monte Carlo simulation in an option pricing framework.
The following summarizes the key assumptions used to estimate the fair value of the TSR awards that were granted, and the resulting weighted average grant date fair value.

TSR awards
Company share price
$1.74 
Company volatility115.3 %
Company correlation
36.1 %
Company dividend yield— %
Weighted average performance term
2.4 years
Weighted average risk-free interest rate4.3 %
Peer group average volatility54.3 %
Peer group average correlation
44.2 %
Weighted average grant date fair value$3.19 

During the third quarter of 2024, the Company also granted shares contingent upon the achievement of certain performance milestones related to the Credit Agreement that may be earned over the performance period following the grant date. The contingent share awards (“Milestone PRSU”) are paid out in stock at the end of the vesting period based on the Company’s achievement of the performance milestones.
As of September 30, 2024, there was $13,863 of unrecognized compensation cost related to the Company’s PRSUs. This cost is expected to be recognized over a weighted average period of 1.0 year.
18. Income Taxes
Income tax (benefit) expense was $(16) and $13 for the three months ended September 30, 2024 and 2023, and $17 and $25 for the nine months ended September 30, 2024 and 2023 respectively, related to state margin tax adjustments and taxable earnings from foreign operations. The income tax expense differs from the amount computed by applying the statutory U.S. federal income tax rate of 21% to the loss before income taxes. This is due to non-deductible losses, foreign operations and pre-tax losses for which no tax benefit can be recognized for U.S. income tax purposes.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
18. Income Taxes (cont.)
The Company estimates and applies the annual effective tax rate to its ordinary earnings each interim period. Any significant unusual or infrequent items are not included in the estimation of the annual effective tax rate; instead, these items and their related income tax expense are separately stated in the interim period in which they occur. The quarterly estimate of the annual effective tax rate and related tax expense is subject to variation due to a multitude of factors, including, but are not limited to, the inability to accurately predict the Company’s pre-tax and taxable income and loss.
At each balance sheet date, management assesses the likelihood that the Company will be able to realize its deferred tax assets. Management considered all available positive and negative evidence in assessing the need for a valuation allowance. The realization of deferred tax assets depends on the generation of sufficient taxable income of the appropriate character and in the appropriate taxing jurisdiction during the future periods in which the related temporary differences become deductible. Management has determined that it is unlikely that the Company will be able to utilize its U.S. deferred tax assets at September 30, 2024 and December 31, 2023 due to cumulative losses. Therefore, the Company has a valuation allowance against its net U.S. deferred tax assets.
As of September 30, 2024 and December 31, 2023, the Company has unrecognized tax benefits associated with uncertain tax positions that, if recognized, would not affect the effective tax rate on income from continuing operations. The Company is not currently under examination by any taxing jurisdiction and none of the unrecognized tax benefits are expected to reverse within the next 12 months.
The Company files income tax returns in U.S. federal and various state jurisdictions, as well as in Italy and India. The open tax years for federal returns are 2020 and forward and open tax years for state returns are generally 2019 and forward. In addition, net operating losses generated in closed years and utilized in open years are subject to adjustment by the tax authorities.
19. Shareholders’ Deficit
Preferred Stock
The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s Board of Directors. The preferred stock has a par value of $0.0001 As of September 30, 2024 and December 31, 2023, there were no shares of preferred stock issued or outstanding.
Common Stock
The Company is authorized to issue 600,000,000 shares of common stock at $0.0001 par value as of September 30, 2024. The holders of the Company’s common stock are entitled to one vote for each share held. At September 30, 2024 and December 31, 2023, there were 217,278,404 and 199,133,827 shares of common stock issued and outstanding, respectively.
Treasury Stock
The Company recorded treasury stock of $771 and $136 for the three months ended September 30, 2024 and 2023 and $1,122 and $587 for the nine months ended September 30, 2024 and 2023, respectively, for shares withheld from employees to cover the payroll tax liability of RSUs vested. The treasury stock was immediately retired.
Public Warrants
The Company sold warrants to purchase 9,075,000 shares of the Company’s common stock in a public offering on May 22, 2020 (the “Public Warrants”). Each Public Warrant entitles the holder to purchase a share of common stock at a price of $11.50 per share. There were no Public Warrants exercised during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, there were 7,052,254 public warrants outstanding for both periods.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
19. Shareholders’ Deficit (cont.)
Standby Equity Purchase Agreement
During the nine months ended September 30, 2023, total funds raised under the SEPA, inclusive of proceeds received from the Yorkville convertible promissory notes, were $35,550. During the nine months ended September 30, 2023, total shares issued under the SEPA were 23,630,937.
On August 23, 2023, the Company and Yorkville terminated the SEPA, as amended, by mutual written consent. At the time of termination, there were no outstanding borrowings, advance notices or shares of Common Stock to be issued under the SEPA. In addition, there were no fees due by the Company or Yorkville in connection with the termination of the SEPA.
At-the-Market Offering Program
The Company has a sales agreement with Cowen and Company, LLC (“Cowen”), with respect to an at-the-market offering (“ATM”) program under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, having an aggregate offering price of up to $200,000 through Cowen as its sales agent and/or principal.
During the nine months ended September 30, 2024, the Company sold 16,627,523 shares raising proceeds of $14,089, net of fees paid to Cowen, at an average selling price of $0.87 per share. There were no shares issued under the ATM offering program for the three months ended September 30, 2024.
During the three and nine months ended September 30, 2023, the Company sold 28,938,944 shares raising proceeds of $81,897, net of fees paid to Cowen, at an average selling price of $2.74 per share.
20. Earnings Per Share
The following table provides the numerators and denominators used in computing basic and diluted net income (loss) per share for the three months ended September 30, 2024 and 2023:
For the Three Months Ended September 30,
2024
2023
Net (loss) income for basic earnings per share
$(384,133)$14,932 
Effect of potentially dilutive shares:
Adjustment for interest on Convertible Notes— 4,449 
Adjustment for fair value gains on embedded derivatives for Convertible Notes
— (27,398)
Net loss for diluted earnings per share
$(384,133)$(8,017)
Weighted-average basic common shares outstanding
216,898,374 138,005,222 
Dilutive effect of Convertible Notes
— 14,836,450 
Dilutive effect of April and May Warrants
— 1,344,677 
Dilutive effect of Restricted Stock Units
— 1,142,184 
Dilutive effect of Stock Options
— 996,751 
Weighted-average dilutive common shares outstanding
216,898,374 156,325,284 
Earnings per share:
Basic
$(1.77)$0.11 
Diluted
$(1.77)$(0.05)
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
20. Earnings Per Share (cont.)
Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is computed using the treasury stock method for warrants, stock options, and restricted stock units; and the if-converted method for convertible notes.
For the three months ended September 30, 2023, the following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive.
Three Months Ended
September 30, 2023
Public and private placement warrants7,326,654 
Stock options
1,585,056 
Generally, basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the weighted average number of shares of common stock outstanding during the period.The Preferred Series B is a participating security that does not have the obligation to share in the losses of the Company. Therefore, the more dilutive of the “if-converted” and “two-class” method must be applied when calculating EPS for the common shares. Management has elected to recognize changes in the redemption value of the Series B Preferred Stock. At each balance sheet date, the redemption value of the Series B Preferred Stock will be calculated, and if the redemption value is greater than the carrying value, the carrying value will be accreted to the redemption value. The accretion is recorded as a deemed dividend, which, in the absence of Retained earnings, reduces additional paid in capital and earnings available to common shareholders in computing basic and diluted EPS. Other potentially dilutive common shares and the related impact to earnings are considered when calculating EPS on a diluted basis.
Since the Company incurred a net loss for the three months ended September 30, 2024, as well as the nine months ended September 30, 2024 and 2023, the potential dilutive shares from stock options, restricted stock units, warrants, and convertible notes were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented. Therefore, basic and diluted EPS are computed using the same number of weighted-average shares for the three months ended September 30, 2024, as well as the nine months ended September 30, 2024 and 2023. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the three months ended September 30, 2024, as well as the nine months ended September 30, 2024 and 2023:

Three and Nine Months Ended September 30,
Nine Months Ended September 30,
2024
2023
Stock options, RSUs, PRSUs
26,966,240 9,239,612 
Public and private placement warrants104,397,933 26,928,634 
Convertible Notes (if converted)
17,782,644 14,836,450 
Series B Preferred Stock
60,746,526 — 
21. Subsequent Events
On October 31, 2024, the Company announced the achievement of all four of the second performance milestones previously agreed upon between Eos and Cerberus. Achieving these performance milestones enables the company to draw an additional $65,000 from the Delayed Draw Term Loan. On November 1, 2024, Cerberus funded the $65,000 related to the October 31, 2024 tranche (“October Draw” or “October Tranche”), and the Company received $61,750, which is net of the 5.0% original issue discount from the Delayed Draw Term Loan.
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EOS ENERGY ENTERPRISES, INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts)
21. Subsequent Events (cont.)
Additionally, on November 1, 2024, the Company filed with the Secretary of State of the State of Delaware the Certificate of Designation of Series B-3 Non-Voting Convertible Preferred Stock of the Company (the “Series B-3 Certificate of Designation”). In connection with the October Draw, the Applicable Percentage increased by 6.1%, and as a result the Company issued to Cerberus 38.259864 shares of a newly designated non-voting Series B-3 Convertible Preferred Stock, par value $0.0001 per share (the “Series B-3 Preferred Stock”), which are convertible into an aggregate of 38,259,864 shares of Common Stock. Collectively, the SPA Warrant, the Series B Preferred Stock, and the newly created Series B-3 Preferred Stock are exercisable or convertible into, as applicable, an aggregate of 142,282,584 shares of Common Stock, or an Applicable Percentage of 30.9% as of issuance date.


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MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the accompanying Unaudited Condensed Consolidated Financial Statements for the nine months ended September 30, 2024 and 2023 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, including the financial statements and notes thereto.
Overview
The Company offers an innovative Znyth™ technology battery energy storage system ("BESS") designed to provide the operating flexibility to manage increased grid complexity and price volatility resulting from an overall increase in renewable energy generation and a congested grid coming from an increase in electricity demand growth. The Company’s BESS is a validated chemistry with accessible non-precious earth components in a durable design that is intended to deliver results in even the most extreme temperatures and conditions. The system is designed to be safe, flexible, scalable, sustainable and manufactured in the United States using raw materials primarily sourced in the United States. We believe the Company’s Z3™ battery module is the core of its innovative systems. The Z3 battery module is the only US designed and manufactured battery module that today provide utilities, independent power producers, renewables developers and C&I customers with an alternative to lithium-ion and lead-acid monopolar batteries for critical 3- to 12-hour discharge duration applications. We believe the Z3 battery will transform how utility, industrial and commercial customers store power.
In addition to its BESS, the Company currently offers: (a) a BMS which provides a remote asset monitoring capability and service to track the performance and health of the Company’s BESS and to proactively identify future system performance issues through predictive analytics; (b) project management services to ensure the process of implementing the Company’s BESS are coordinated in conjunction with the customer’s overall project plans; (c) commissioning services that ensure the customer’s installation of the BESS meets the performance expected by the customer; and (d) long-term maintenance plans to maintain optimal operating performance of the Company’s systems.
The Company’s growth strategy contemplates increasing sales of battery energy storage systems and related software and services through a direct sales team and sales channel partners. The Company’s current and target customers include utilities, project developers, independent power producers and commercial and industrial companies.
Strategy
The Company continues to invest in the refinement and production of its Z3 battery, which builds off the same electrochemistry that has not fundamentally changed for the better part of a decade. The next Z3 battery is designed to reduce cost and weight while improving manufacturability and system performance. The Eos Z3 battery is more cost-effective and has a simpler tub design with 50% fewer cells and 98% fewer welds per battery module than the Gen 2.3. The Company currently expects that the Z3 battery will give customers the benefit of two times the energy density per square foot, along with the ability to cycle multiple times per day, all with the same safety, reliability, security and recyclability. The Z3 transition is fully underway and the first semi-automated battery manufacturing line is installed and has started commercial production. The Z3 batteries utilize the same chemistry, which has over 3 million cycles, and incorporate a new mechanical design aimed at improving performance, lowering cost and increasing manufacturability.
The Company started delivery of its Z3 battery modules in the third quarter of 2023. The Z3 battery incorporates valuable lessons learned from the past 15 years into a new system design which the Company expects to result in efficiencies as it develops its new state-of-the-art manufacturing line.
The Company believes the simplicity, flexibility and safety of our products are what the market desires. In addition, we believe that the Inflation Reduction Act gives us a competitive advantage by virtue of production tax credits (“PTC”) that can be claimed on battery components manufactured domestically, and tax credits for customers for projects that satisfy domestic content requirements. See Regulatory Landscape section. The Company intends to engage with a consortium of community leaders, universities and supply chain partners in anticipation of pursuing grants made available under the Bipartisan Infrastructure Law of 2021.
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Regulatory Landscape
U.S. Department of Energy (“DOE”)
In August 2023, the DOE issued a Conditional Commitment Letter to the Company for a loan of an aggregate principal amount of up to $398.6 million through the DOE’s Clean Energy Financing Program. The Conditional Commitment Letter follows an extensive technical, financial and commercial due diligence process by the DOE. If finalized, the loan is expected to fund 80% of eligible costs of the Company’s planned manufacturing expansion in and around Turtle Creek, Pennsylvania.
Eligible costs include capital expenditures and other costs associated with ramping up the manufacturing lines and facility, for example start-up and shakedown costs, as well as certain material and labor costs before efficiencies are met. The Company is working to finalize the loan documents with the DOE and to fulfill certain conditions precedent. Eos is spending eligible costs now that would be reimbursable at first funding.
Inflation Reduction Act of 2022 (“IRA”)
The IRA features significant economic incentives for both energy storage customers and manufacturers for projects placed in service after December 31, 2022. One of the most important features of the IRA is that it offers a 10-year term tax credit, whereas historically similar industrial credits have been shorter in duration. Customers placing new energy storage facilities in service will be allowed to claim at least a thirty percent investment tax credit (“ITC”) under certain conditions. The IRA also offers an extra ten percent credit if the project is in an “energy community” and another ten percent credit if the project satisfies domestic content requirements, which will be set forth when the implementing regulations are finalized. The ten percent bonus for domestic content could represent a strategic advantage for the Company resulting from the Company’s near-sourcing and Made in America strategy, and we currently anticipate that projects utilizing Eos batteries will qualify for the bonus.
As discussed in Note 11, Government Grants to our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report, starting in 2023, there are Production Tax Credits under Internal Revenue Code 45X (“PTC”) that can be claimed on battery components manufactured in the U.S. and sold to U.S. or foreign customers. These tax credits available to manufacturers include a credit for ten percent of the cost incurred to make electrode active materials in addition to credits of $35 per kWh of capacity of battery cells and $10 per kWh of capacity of battery modules. These credits are cumulative, meaning that companies will be able to claim each of the available tax credits based on the battery components produced and sold through 2029, after which the PTC will begin to gradually phase down through 2032. These credits are expected to be a new source of cash flow for Eos in the future.
Company Highlights
•In January 2024, the Company entered into a supply agreement with TETRA Technologies, Inc (“TETRA”) that further expanded this partnership. TETRA is a leading global energy services and solutions company. This supply agreement designates TETRA as the preferred strategic supplier of electrolyte products for the Company’s Eos Z3TM long duration energy storage cube.
•In February 2024, the Company entered into a multiyear pricing agreement with SHPP US LLC, a Saudi Basic Industries Corporation (“SABIC”) affiliate, to supply conductive composite thermoplastic for the Eos Z3TM battery module. The Company and SABIC have worked collaboratively to develop a solution using one of SABIC’s new resin materials to replace the titanium used in prior Eos battery iterations.
•In February 2024, the Company achieved “Power On” status of all motion systems on its first state-of-the-art manufacturing line. Reaching this milestone is a significant step in achieving the state-of-the-art manufacturing line being installed and commissioned in the Company’s Turtle Creek facility.
•In April 2024, the Company and Pine Gate Renewables signed an agreement to expand its existing relationship. The new Master Supply Agreement (“MSA”) is for 500 MWh of energy storage systems to be delivered over the next five years.
•In May 2024, the Company successfully completed its Factory Acceptance Testing on State of the Art (“SotA”) manufacturing line.
•For the three months ended September 30, 2024, the Company recognized $0.2 million of grant income related to the IRA PTC.
•In June 2024, the Company announced a strategic investment of up to $315.5 million from an affiliate of Cerberus Capital Management LP (“Cerberus”), to support the Company’s growth plans.
•In June, the Company recognized a gain on debt extinguishment of $68.5 million from the payoff of the Senior Secured Term Loan.
•In June 2024, the Company completed the installation of the first state of the art line in its Turtle Creek facility and began commercial production of batteries off the new line to be delivered to customer sites.
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•In July 2024, the Company and Indian Energy announced an agreement to expand its existing relationship. The expanded agreement with Indian Energy added 25 MWh of storage to the existing 35 MWh order for an overall project size of 60 MWh.
•In July 2024, the Company regained compliance with the minimum continued listing criteria set forth in Nasdaq Listing Rule 5550(a)(2) as of July 9, 2024, based on the closing bid price of the Company’s common stock being at or above $1.00 per share for the 10 consecutive business days from June 24, 2024 to July 8, 2024.
•In August 2024, the Company successfully achieved all four of the first performance milestones previously agreed upon between Eos and Cerberus as part of Cerberus’s strategic investment in the Company. Achieving these specific performance milestones allowed the Company to draw an additional $30 million on the Delayed Draw Term Loan from Cerberus to fund ongoing operations and production expansion to meet the growing demand for long duration energy storage solutions.
•In October 2024, the Company successfully achieved all four of the performance milestones for the October Draw previously agreed upon between Eos and Cerberus as part of Cerberus’s strategic investment in the Company. Achieving these specific performance milestones allowed the Company to draw an additional $65.0 million on the Delayed Draw Term Loan from Cerberus.
Results of Operations
Revenue
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
$ Change% Change
2024
2023
$ Change% Change
Revenue$854 $684 170 25 %$8,353 $9,768 (1,415)(14)%
The Company generates revenues from the delivery of its BESS and service-related solutions. The Company expects revenues to increase as it scales production to meet customer demand.
For the three months ended September 30, 2024, Revenue increased by $0.2 million or 25% from $0.7 million. The increase for the three months is due to higher product component and commissioning sales. For the nine months ended September 30, 2024, Revenue decreased by $1.4 million or 14% from $9.8 million. The decrease for the nine months is due to reduced production and deliveries due to the installation of the Company’s new manufacturing line.
Cost of goods sold
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
$ Change% Change
2024
2023
$ Change% Change
Cost of goods sold$25,764 $21,262 4,502 21 %$68,114 $59,448 8,666 15 %
Cost of goods sold primarily consists of direct costs relating to labor, material and overhead directly tied to product assembly, procurement and construction (“EPC”), project delivery, commissioning and start-up test procedures. Indirect costs included in cost of goods sold are manufacturing overhead such as equipment maintenance, environmental health and safety, quality and production control procurement, transportation, logistics, depreciation and facility-related costs. As a nascent technology with a new manufacturing process that is early in its product lifecycle, the Company still faces significant costs associated with production start-up, commissioning of various components, modules and subsystems and other related costs. The Company expects its cost of goods sold to exceed revenues in the near term as it continues to scale production and prepares battery energy storage systems delivered to customers to go-live.
For the three months ended September 30, 2024, Cost of goods sold increased by $4.5 million or 21% from $21.3 million. For the nine months ended September 30, 2024, Cost of goods sold increased by $8.7 million or 15% from $59.4 million.
The increase for the three months ended September 30, 2024 was primarily driven by an inventory reserve adjustment in 2024 due to lower of cost or market (“LCM”) amounting to approximately $6.7 million, since the Company has negative gross margins for the period.
The increase for the nine months ended September 30, 2024 was primarily due to an increase in project commissioning costs on previously delivered projects, revaluations of inventory balances, along with the underutilization and absorption of labor and overhead associated with implementing the new line.
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Research and development expenses
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
$ Change% Change
2024
2023
$ Change% Change
R&D expenses$7,428 $3,228 4,200 130 %$16,878 $13,699 3,179 23 %
Research and development expenses consist primarily of salaries and other personnel-related costs, materials, third-party services, depreciation and amortization of intangible assets.
For the three months ended September 30, 2024, Research and development costs increased by $4.2 million or 130% from $3.2 million. For the nine months ended September 30, 2024, Research and development costs increased by $3.2 million or 23% from $13.7 million. The increase for the three and nine months was driven by higher spending on materials and supplies related to the implementation of the automated line, as well as an increase in payroll and personnel costs and stock compensation costs.
Selling, general and administrative expenses
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
$ Change% Change
2024
2023
$ Change% Change
SG&A expenses$17,796 $13,076 4,720 36 %$43,331 $40,169 3,162 8 %
Selling, general and administrative expenses primarily consist of payroll and personnel-related, outside professional services, facilities, depreciation, travel, marketing and public company costs.
For the three months ended September 30, 2024, Selling, general and administrative expenses increased by $4.7 million or 36% from $13.1 million. For the nine months ended September 30, 2024, Selling, general and administrative expenses increased by $3.2 million or 8% from $40.2 million. The increase for the three and nine months was primarily driven by higher legal and advisory fees related to the Credit and Securities Purchase Transaction and payroll costs.
Loss from write-down of property, plant and equipment
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Loss from write-down of property, plant and equipment$3,192 $955 $3,528 $7,151 
The Company incurred a loss of $3.2 million and $1.0 million from write-down of property, plant and equipment for the three months ended September 30, 2024 and 2023, respectively, and a loss of $3.5 million and $7.2 million for the nine months ended September 30, 2024 and 2023, respectively. The 2023 write-downs were mainly due to replacement of equipment, outsourcing of certain production processes and the shift in production from the Gen 2.3 battery system to the Z3™ battery system. The 2024 write-downs were primarily related to design changes from the Z3™-Phase 1 to Z3™-Phase 2 production in which the Phase 1 production assets could not be utilized or repurposed for Phase 2 production.
Interest expense, net
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Interest expense, net$(133)$(4,994)$(7,915)$(14,709)
Interest expense, net includes expenses for accrued interest, amortization of debt issuance costs and debt discounts, partially offset by capitalized interest costs on CIP assets. For the three and nine months ended September 30, 2024, Interest expense, net decreased $4.9 million and $6.8 million, respectively, mainly due to lower interest expense recognized from the Senior Secured Term Loan.
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Interest expense - related party
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)2024202320242023
2021 Convertible Note Payable interest and amortization
$(3,667)$(3,183)$(10,563)$(9,153)
AFG Convertible Note interest and amortization
(1,624)(1,266)(4,491)(3,364)
AFG Convertible Note Day 1 loss
— — — (2,873)
Yorkville Promissory Notes Day 1 losses
— — — (17,572)
     Interest expense, related party
$(5,291)$(4,449)$(15,054)$(32,962)
See Note 13, Borrowings to our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report for further discussion.
Change in fair value of debt - related party
The change in the fair value of debt - related party of $3.0 million and $3.3 million for the three and nine months ended September 30, 2024, respectively, relates to the Delayed Draw Term Loan.
Change in fair value of warrants
For the Three Months Ended September 30, 2024
For the Nine Months Ended September 30, 2024
($ in thousands)
Change in Fair Value
IPO warrants$(2)$1 
April 2023 warrants
(16,810)(17,902)
May 2023 warrants
(4,099)(4,373)
December 2023 warrants
(45,557)(49,235)
     Change in fair value of warrants
$(66,469)$(71,510)

For the Three Months Ended September 30, 2023
For the Nine months ended September 30, 2023
($ in thousands)Loss on issuance
 Change in Fair Value
Net loss
Loss on issuance
Change in Fair Value
Net loss
IPO warrants
$— $341 $341 $— $(36)$(36)
April 2023 warrants
— 27,566 27,566 (26,366)6,191 (20,175)
May 2023 warrants
— 6,499 6,499 (5,267)521 (4,746)
December 2023 warrants
— — — — — — 
     Change in fair value of warrants
$— $34,406 $34,406 $(31,633)$6,676 $(24,957)
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Change in fair value of derivatives - related parties
Gain (Loss)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Change in fair value of embedded derivatives - related parties
$(12,595)$27,398 $(13,586)$(962)
Change in fair value of warrants - related parties
(200,439)— (246,641)— 
     Change in fair value of derivatives - related parties
$(213,034)$27,398 $(260,227)$(962)
The change in the fair value of embedded derivatives - related parties, was due to our convertible debt (See Note 13, Borrowings) and the change in fair value of warrants - related parties was due to changes in fair value of our SPA Warrant and contingent warrants (See Note 14, Warrants Liability).
Gain (loss) on debt extinguishment
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Gain (loss) on debt extinguishment
$— $— $68,478 $(3,510)
For the nine months ended September 30, 2024, the Company recognized a gain on debt extinguishment of $68.5 million from the payoff of the Senior Secured Term Loan.
For the nine months ended September 30, 2023, the Company recognized a loss on debt extinguishment of $3.5 million from the issuance of common stock upon Yorkville's redemption of their convertible promissory notes.
Other (expense) income
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Other (expense) income
$(1,593)$421 $(4,727)$(474)
For the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, Other (expense) income increased by $2.0 million and $4.3 million, respectively, primarily due to recognition of financing issuance costs from the Credit and Securities Purchase Transaction.
Income tax (benefit) expense
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
($ in thousands)
2024
2023
2024
2023
Income tax (benefit) expense
$(16)$13 $17 $25 
The Company incurred income tax (benefit) expense for the three and nine months ended September 30, 2024 and 2023 in relation to state margin tax adjustments and pre-tax income from the Company’s international subsidiaries.
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Liquidity and Going Concern
As a growth company in the early commercialization stage of its lifecycle, Eos is subject to inherent risks and uncertainties associated with the development of an enterprise. In this regard, substantially all of the Company’s efforts to date have been devoted to the development and manufacturing of battery energy storage systems and complementary products and services, recruitment of management and technical staff, deployment of capital to expand the Company’s operations to meet customer demand and raising capital to fund the Company’s development. However, as a result of these efforts, the Company has incurred significant losses and negative cash flows from operations since its inception and expects to continue to incur such losses and negative cash flows for the foreseeable future until such time that the Company can reach a scale of profitability to sustain its operations.
In order to execute its development strategy, the Company has historically relied on outside capital through the issuance of equity, debt and borrowings under financing arrangements (collectively “outside capital”) to fund its cost structure. While the Company believes its recent entry into new credit facilities as discussed below has significantly improved its capital position and provides a path to sustainable operations and profitability, there can be no assurance the Company will be able to achieve such profitability or do so in a manner that does not require additional outside capital. Moreover, while the Company has historically been successful in raising outside capital, there can be no assurance the Company will be able to continue to obtain outside capital in the future or do so on terms that are acceptable to the Company, should it be needed.
As disclosed in Note 3, Credit and Securities Purchase Transaction, on June 21, 2024, the Company entered into a financing transaction with CCM Denali Debt Holdings, LP, an affiliate of Cerberus Capital Management LP (herein after referred to as “Cerberus”, “Denali”, “Lender”, “Holder”). As a result of this transaction, Cerberus agreed to provide a $210.5 million secured multi-draw facility to be made in four installments (the “Delayed Draw Term Loan”) as well as a $105.0 million revolving credit facility (“Revolving Facility”), to be made available beginning June 21, 2026, at Cerberus’ sole discretion and only if the Delayed Draw Term Loan is fully funded.
As of the date the accompanying Unaudited Condensed Consolidated Financial Statements were issued (the “issuance date”), management evaluated the significance of the following negative financial conditions in accordance with Accounting Standard Codification 205-40, Going Concern:
•Since its inception, the Company has incurred significant losses and negative cash from operations in order to fund its development. During the nine months ended September 30, 2024, the Company incurred a net loss of $417.7 million, incurred negative cash flows from operations of $111.3 million and had an accumulated deficit of $1,293.6 million as of September 30, 2024.
•As of September 30, 2024, the Company had $23.0 million of unrestricted cash and cash equivalents available to fund the Company’s operations and working capital of $74.1 million, which includes loan commitment assets of $58.5 million classified as current assets on the Unaudited Condensed Consolidated Balance Sheets.
•Additionally, the Company continues to progress through the Department of Energy (DOE) Loan Programs Office’s (LPO) process for its Title XVII loan. In August 2023, the DOE issued a conditional commitment letter to the Company for a loan of an aggregate principal amount of up to $398.6 million through the DOE’s Clean Energy Financing Program. Certain technical, legal and financial conditions must be met and due diligence to the satisfaction of the DOE must be completed before the DOE enters into definitive financing documents with the Company and funds the loan. The Company continues to work with the DOE to meet these conditions and close the loan, however, there can be no assurance that the Company will be able to secure such a loan or on terms that are acceptable to the Company.
•The Company is required to remain in compliance with certain quarterly financial covenants under its Credit Agreement. These financial covenants include, as defined in the Credit Agreement, (a) Minimum Consolidated EBITDA, (b) Minimum Consolidated Revenue, and (c) Minimum Liquidity (collectively, the “financial covenants”). As of September 30, 2024, the Company was in compliance with all financial covenants and non-financial covenants, except for the September 30, 2024 Minimum Consolidated Revenue financial covenant. The Company secured a waiver of non-compliance from Cerberus for the quarter ended September 30, 2024. The Company expects it may be unable to remain in compliance with the Minimum Consolidated Revenue financial covenant beginning December 31, 2024, absent the Company’s ability to secure a waiver or amend the Credit Agreement. In the event the Company is unable to comply with the financial and the non-financial covenants as of December 31, 2024, and the Company is unable to secure another waiver, Cerberus may, at its discretion, enter into a forbearance agreement with the Company and/or exercise any and all of its existing rights and remedies, which may include, among other things, asserting its rights in the Company’s assets securing the loan. Moreover, the Company’s other lenders may exercise similar rights and remedies under the cross-default provisions of their respective borrowing arrangements with the Company.
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•Cerberus funded the Company $30.0 million (“August Draw”), and the Company received $28.5 million, net of the 5.0% original issue discount, since the Company met the milestones for the August Draw as disclosed in Note 3, Credit and Securities Purchase Transaction. Subsequently, on November 1, 2024, Cerberus funded the Company $65 million related to the October 31, 2024 tranche (“October Draw” or “October Tranche”), and the Company received $61.75 million, which is net of the 5.0% original issue discount from the Delayed Draw Term Loan as disclosed in Note 21, Subsequent Events. In the event the Company does not achieve the remaining funding milestone, and Cerberus chooses not to continue funding, and the Company’s ongoing efforts to raise additional outside capital prove unsuccessful, the Company will be unable to meet its obligations as they become due over the next twelve months beyond the issuance date. In such an event, management will be required to seek other strategic alternatives, which may include, among others, a significant curtailment in the Company’s operations, a sale of certain of the Company’s assets, a sale of the entire Company to strategic or financial investors and/or allowing the Company to become insolvent.
These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates that the Company will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying Unaudited Condensed Consolidated Financial Statements do not include any adjustments that may result from the outcome of these uncertainties.
Financing Arrangements
The Company has historically relied on outside capital to fund its cost structure and expects this reliance to continue for the foreseeable future until the Company reaches profitability through its planned revenue generating activities. During the nine months ended September 30, 2024, the Company closed on the following capital transactions:
•Under the ATM offering program, for the nine months ended September 30, 2024, the Company sold 16,627,523 shares raising proceeds of $14.1 million, net of fees paid to Cowen, at an average selling price of $0.87 per share, included in the Condensed Consolidated Statement of Shareholders' Deficit.
•The Company secured a strategic investment of up to $315.5 million from Cerberus. The investment by Cerberus is structured as a $210.5 million Delayed Draw Term Loan to be made in four installments. On June 21, 2024 the first installment of $75.0 million was funded, and on August 29, 2024, the second draw of $30.0 million was funded. Additional amounts totaling $105.5 million will be made available to the Company, subject to the achievement of certain milestones. As part of the strategic investment, a $105.0 Revolving Facility will be made available to the Company at the Lenders’ sole discretion and only if the Delayed Draw Term Loan is fully funded.
•The Company retired its existing $100.0 million Senior Secured Term Loan on favorable terms, strengthening the Company’s balance sheet. See Note 3, Credit and Securities Purchase Transaction.
Capital Expenditures
The Company expects capital expenditures and working capital requirements to increase as it executes its growth strategy. Total capital expenditures for the nine months ended September 30, 2024 and September 30, 2023 were $20.1 million and $21.2 million, respectively. See Note 7, Property, Plant and Equipment for further discussion.
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Discussion and Analysis of Cash Flows
The Company relies heavily on private placement of convertible notes, term loans, equipment financing and issuance of common stock and warrants. Our short-term working capital needs are primarily related to funding of debt interest payments, repayment of debt principal, product manufacturing, research and development and general corporate expenses. The Company’s long-term working capital needs are primarily related to repayment of long-term debt obligations and capital expenses for capacity expansion and maintenance, equipment upgrades and repair of equipment.
The following table summarizes the Company’s cash flows from operating, investing and financing activities for the periods presented.
 Nine Months Ended September 30,
($ in thousands)20242023$ Change
Net cash used in operating activities$(111,252)$(107,578)$(3,674)
Net cash used in investing activities$(20,062)$(21,186)$1,124 
Net cash provided by financing activities$77,285 $170,607 $(93,322)
Cash flows from operating activities:
Cash flows used in operating activities primarily comprise of costs related to research and development, manufacturing of products, project commissioning and other general and administrative activities.
Net cash used in operating activities of $111.3 million for the nine months ended September 30, 2024 was primarily driven by a net loss of $417.7 million, adjusted for non-cash items of $308.4 million, primarily related to stock compensation expense, depreciation and amortization, non-cash interest expense, gain on debt extinguishment, changes in fair value of debt, warrants and derivatives. The net cash outflows from changes in operating assets and liabilities was $1.9 million, primarily driven by an increase in inventory of $8.8 million and an increase in contract assets of $4.7 million, partially offset by an increase in contract liabilities of $5.4 million and an increase in interest payable - related party of $3.1 million.
Net cash used in operating activities was $107.6 million for the nine months ended September 30, 2023, primarily driven by a net loss of $188.3 million, adjusted for non-cash items of $89.5 million, primarily related to stock compensation expense, depreciation and amortization, non-cash interest expense, changes in fair value of warrants and derivatives and loss from the write-down of property, plant and equipment. The net cash outflows from changes in operating assets and liabilities was $8.7 million, primarily driven by decrease in accounts payable of $17.8 million and increase in vendor deposits of $4.0 million, partially offset by increase in accrued expenses of $12.3 million.
Cash flows from investing activities:
Net cash flows used in investing activities for the nine months ended September 30, 2024 and September 30, 2023 was $20.1 million and $21.2 million, respectively, for payments made for purchases of property, plant and equipment.
Cash flows from financing activities:
Net cash provided by financing activities was $77.3 million for the nine months ended September 30, 2024, primarily due to the proceeds received from the Credit and Securities Purchase Transaction of $98.6 million and from the issuance of common stock of $14.1 million. The proceeds were partially offset by payoff of the Senior Secured Term Loan of $19.9 million, debt issuance costs - related party of $12.2 million, payments on the equipment financing facility of $2.4 million and share repurchases from employees for tax withholding of $1.1 million.
Net cash provided by financing activities was $170.6 million for the nine months ended September 30, 2023, primarily due to the net proceeds received from the Yorkville Convertible Promissory Notes and AFG Convertible Notes of $48.1 million and from the issuance of common stock and warrants of $131.1 million. The proceeds were partially offset by equity issuance costs of $2.1 million, debt issuance costs related to the Yorkville Convertible Promissory Notes, AFG Convertible Notes and Senior Secured Term Loan of $4.2 million, payments on the equipment financing facility of $2.1 million and share repurchases from employees for tax withholding of $0.6 million.
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Contractual Obligations
The Company has certain obligations and commitments to make future payments under contracts. As of September 30, 2024, this is composed of the following:
•Future lease payments, including interest, under non-cancellable operating and financing leases of $4.4 million. The leases expire at various dates prior to 2028.
•In accordance with the Insurer Letter Agreement, the Company shall pay to the Atlas Insurers (i) on December 31, 2024, subject to the absence of certain events of default under the Credit Agreement, $3.0 million and (ii) on June 30, 2025, subject to the absence of certain events of default under the Credit Agreement, $4.0 million.
•Principal and Interest payments related to the following debt obligations (see Note 13, Borrowings to our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Quarterly Report):
Future Debt Payments
Delayed Draw Term Loan - due June 2029 (1)
224,197 
2021 Convertible Note Payable - due June 2026 (1)
134,261 
AFG Convertible Notes - due June 2026 (1)
32,468 
Equipment financing facility - due April 2025 and April 2026
3,591 
  Total $394,517 
(1) As of September 30, 2024, the Company is obligated to repay future contractual interest payments for the 2021 Convertible Note and AFG Convertible Notes in-kind. The Company also has the option to repay the Delayed Draw Term Loan in-kind.
Critical Accounting Estimates (“CAE”)
The Company’s Unaudited Condensed Consolidated Financial Statements are prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP). In preparing the Company’s Unaudited Condensed Consolidated Financial Statements, management makes assumptions, judgments and estimates on historical experience and various other factors that management believes to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. Management regularly reevaluates assumptions, judgments and estimates. The Company’s significant accounting policies are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
These should also be read with the CAE in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Warrants Liability
The April 2023 warrants, May 2023 warrants and December 2023 warrants all are valued using the Black-Scholes model at inception and on subsequent valuation dates. This model incorporates inputs such as the stock price of the Company, risk-free interest rate, volatility and time to expiration. The volatility is a significant unobservable input classified as Level 3 of the fair value hierarchy. The sensitivity of the fair value calculation to volatility could create materially different results under different conditions or using different assumptions. See Note 15, Fair Value Measurement to our unaudited consolidated financial statements.
Convertible Notes and Embedded derivatives
The Company estimated the fair value of the embedded conversion features in the 2021 Convertible Note and the AFG Convertible Notes using a binomial lattice model at inception and on subsequent measurement dates. This model incorporates significant inputs such as the stock price of the Company, dividend yield, risk-free interest rate, debt yield and expected volatility. The volatility and debt yield are significant unobservable inputs classified as Level 3 of the fair value hierarchy. The sensitivity of the fair value calculation to debt yield and volatility could create materially different results under different conditions or using different assumptions. See Note 15, Fair Value Measurement to our unaudited consolidated financial statements.
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The following is a new CAE as of June 30, 2024.
New Instruments fair valued (see Note 15, Fair Value Measurement)
The fair value of the Delayed Draw Term Loan was estimated using a discounted cash flow (“DCF”) method, based on the contractual cash flows discounted at a debt yield. The fair value for the SPA Warrant is estimated based on its intrinsic value, using the Eos common stock closing price adjusted by a discounted for lack of marketability (“DLOM”), less the exercise price of $0.01 for the SPA Warrant. A DLOM was applied considering the underlying shares of the SPA Warrants are unregistered. The fair value of the Contingent Warrants is estimated based on the underlying Eos common stock closing price adjusted by a DLOM and an allowance for certain redemption features using a Black-Scholes model, considering the probability of achieving certain milestones. A DLOM was applied considering the underlying shares of the Contingent Warrants are unregistered. The fair values for all these instruments are designated as level 3 measurements as they rely on significant unobservable inputs. The significant unobservable inputs for each of these instruments are detailed in Note 15, Fair Value Measurement), which include debt yield, DLOM, and milestones achievement expectations. The sensitivity of the fair value calculation to debt yield, DLOM, and milestones achievement expectations could create materially different results under different conditions or using different assumptions.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the Company’s market risk exposures for the nine months ended September 30, 2024, as compared to those discussed in its Annual Report on Form 10-K for the year ended December 31, 2023.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The Company’s management, under the supervision of the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation and consistent with the evaluations previously reported in prior periods, the CEO and CFO have concluded that the Company’s disclosure controls and procedures were not effective as of September 30, 2024 because of material weaknesses resulting from lack of a formalized internal control framework in accordance with the Committee of Sponsoring Organizations (COSO) Framework, inadequate segregation of duties in the financial reporting process, lack of review and approval of journal entries and a lack of management review controls.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Exchange Act is accumulated and communicated to management, including its CEO and its CFO, to allow timely decisions regarding required disclosure.
In light of these material weaknesses, management performed additional analyses, reconciliations and other post-closing procedures to determine that the Company’s Unaudited Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. Based on this review, management concluded that the Unaudited Condensed Consolidated Financial Statements included in this report fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.
Management’s Remediation Plan and Status
Through September 30, 2024, our management, with the oversight of the Audit Committee of our Board of Directors, has materially designed the necessary measures to remediate the control deficiencies contributing to the material weaknesses. These remediation efforts are detailed in Item 9A, “Controls and Procedures” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
These remediation efforts include the following:
1.Engaged external experts to complement internal resources and to provide support related to more complex applications of GAAP, tax, and internal controls. We will continue to utilize outside resources, as necessary, to supplement our internal team.
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2.We designed a comprehensive internal control framework that includes a formal risk assessment process to identify and design our control activities to address all risks of material misstatement whether due to error or fraud. We developed formalized process and control documentation for all relevant areas of financial reporting, including IT general and automated controls that support financial reporting.
3.We designed a comprehensive segregation of duties framework and identified the necessary mitigating controls to compensate any applicable risk, including restricting the ability for one individual to both (i) create and post a journal entry in the general ledger and (ii) prepare and review account reconciliations.
4.We designed management review controls over each significant class of transaction, including areas considered highly complex, judgmental, and subject to management estimation. We have designed procedures to validate underlying source data and used in our financial reporting controls and the necessary IT general and automated controls to rely on the IT environment supporting our financial reporting.
5.We designed controls to identify any significant and unusual transactions, analyze, record, report, and disclose such matters.
We continue to assess risks on a continuous basis to timely identify new exposures or risk categories as business practices change and, as applicable, update our existing internal control framework to ensure that it has identified, developed and deployed the appropriate business process controls to meet the objectives and address the risks identified.
We have substantially designed the controls necessary to remediate the material weaknesses; however, we have determined that all the controls necessary to remediate the material weaknesses have not operated for a sufficient period of time to fully conclude remediation as of September 30, 2024.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Part II - Other information
Item 1. Legal Proceedings
From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations. While the outcomes of these types of claims are uncertain, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.
The following is also disclosed in Note 16, Commitments and Contingencies to our Unaudited Condensed Consolidated Financial Statements:
Class Action Complaints
On March 8, 2023, a class action lawsuit was filed in the Court of Chancery of the State of Delaware by plaintiff Richard Delman against certain defendants including the Company’s former directors (the “Delman Defendants”). Neither the Company nor Eos Energy Storage LLC were named as a defendant but each was identified in the Complaint as a relevant non-party and the Company has indemnification obligations relating to the lawsuit. On February 1, 2024, the parties agreed to a binding Settlement Term Sheet (the “Settlement”) whereby plaintiff agreed to resolve the lawsuit in exchange for a settlement payment of $8.5 million, to be fully funded by the Company’s Directors and Officers (“D&O”) liability insurance policies subject to a retention by the Company of approximately $1.0 million consisting of the Company’s payment of legal fees related to this matter. On June 1, 2024, the parties submitted to the Court of Chancery a definitive Stipulation and Agreement of Settlement, Compromise, and Release, and related documents. On October 17, 2024, the Court of Chancery approved the proposed Settlement and the Company coordinating the settlement payment with the Company’s D&O insurers.
On August 1, 2023, a class action lawsuit was filed in the United States District Court of New Jersey by plaintiff William Houck against the Company, the Company’s Chief Executive Officer, its former Chief Financial Officer and its current Chief Financial Officer (with the Company, the “Houck Defendants”). The Complaint alleges that the defendants violated federal securities laws by making knowingly false or misleading statements about the Company’s contractual relationship with a customer and about the size of the Company’s order backlog and commercial pipeline. Defendants deny the allegations and, on February 13, 2024, moved to dismiss the Complaint. On March 5, 2024, plaintiff filed an amended complaint that dropped the Company’s former Chief Financial Officer as a defendant. On April 4, 2024, defendants filed a renewed motion to dismiss the lawsuit. The Company intends to continue to vigorously defend against this action.
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Item 1A. Risk Factors
As of the date of this Quarterly Report on Form 10-Q, there have been no additional material changes to the risk factors disclosed in our annual report on Form 10-K for the fiscal year ended December 31, 2023, except as discussed below. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.
If we fail to meet the covenants in Credit Agreement, we may be subject to default on the loan, which could have a material adverse effect on our business.
The Credit Agreement contains various affirmative and negative covenants applicable to the Company including, among others, as defined in the Credit Agreement (i) meeting certain Minimum Consolidated EBITDA, Minimum Consolidated Revenue, and Minimum Liquidity (the cash in accounts controlled by the Agent,) measured quarterly, (ii) reporting and information covenants including the delivery of annual, quarterly and monthly financial statements, daily cash reports, annual financial plans and forecasts with weekly progress reports and updates, (iii) monthly meetings with the Lenders and the engagement of advisors and consultants requested by the Lenders, and (iv) restrictions on business and activities including debt incurrence, asset dispositions, distributions, investments, and modifications to or terminations of various material contracts. The Credit Agreement is subject to certain events of default which can be triggered by, among other things, (i) breach of payment obligations and other obligations and representations in the Credit Agreement nor related documents, (ii) default under other debt facilities with a principal above a predetermined amount, (iii) failure to perform or comply with certain covenants in the Credit Agreement, (iv) entry into a decree or order for relief in respect of the Company or any of its subsidiaries in an involuntary case under the Bankruptcy Code of the United States or under any other debtor relief law,(v) any money judgment, writ or warrant of attachment or similar process involving in the aggregate at any time an amount in excess of $2.5 million, (vi) any order, judgement or decree entered against the Company or the any of its subsidiaries decreeing the dissolution or split up of such entity, (vii) the failure of the Common Stock to be listed on an internationally recognized stock exchange in the United States and (viii) a change of control.
Since the Company was not in compliance with the financial covenant for Minimum Consolidated Revenue for the three months ended September 30, 2024, the Company secured a waiver from Cerberus. The Company expects it may be unable to remain in compliance with the Minimum Consolidated Revenue financial covenant beginning December 31, 2024, absent the Company’s ability to secure a waiver or amend the Credit Agreement. In the event the Company is unable to comply with all financial covenants when required under the Credit Agreement, and the Company is unable to secure another waiver or amendment to the Credit Agreement, Cerberus may, at its discretion, exercise any and all of its existing rights and remedies, which may include, among other things, asserting its rights in the Company’s assets securing the loan, and the Lenders may no longer be required to continue funding under the Credit Agreement. There can be no assurance that the Company will be able to secure funding under the Credit Agreement or outside sources of capital in the event it fails to meet a funding milestone. Moreover, the Company’s other lenders may exercise similar rights and remedies under the cross-default provisions of their respective borrowing arrangements with the Company. Any such default on the Credit Agreement could have a material adverse effect on our business.
Under the terms of the Credit Agreement, current stockholders may be subject to significant dilution, and the voting power of the currently outstanding Common Stock could be significantly diluted.
As of November 1, 2024, there were 217,904,747 shares of Common Stock issued and outstanding and an aggregate of 242,556,689 shares of Common Stock issuable upon the conversion or exercise of outstanding convertible securities, including 142,282,584 shares of Common Stock underlying the SPA Warrant and Series B Preferred Stock issued to Cerberus.
If the Purchaser funds all future draws under the Delayed Draw Term Loan and the Company meets each of the milestones under the Delayed Draw Term Loan, the Purchaser will be entitled to receive Series B Preferred Stock and/or Contingent Warrants that, when aggregated with the SPA Warrant and Series B Preferred Stock, equal 33.0% of the issued and outstanding Common Stock on a fully diluted basis. Assuming the Company issues no other securities after November 1, 2024, such Series B Preferred Stock, SPA Warrant and Contingent Warrants (such warrants, collectively, the “Warrants”) would aggregate to an equivalent of 156,714,957 shares of Common Stock. If the Purchaser funds all draws under the Delayed Draw Term Loan and the Company fails to meet all of the remaining milestones under the Delayed Draw Term Loan, the Purchaser would be entitled to receive Preferred Stock and/or Contingent Warrants (depending on whether stockholder approval has been received) that, when aggregated with the SPA Warrant and Series B Preferred Stock, equal 41.0% of the issued and outstanding Common Stock on a fully diluted basis, assuming the Warrants and Series B Preferred stock were fully convertible into Common Stock. Assuming the Company issues no other securities after November 1, 2024, such Preferred Stock and Warrants would aggregate to an equivalent of 221,107,338 shares of Common Stock.
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In addition, if the Company were to issue additional shares of Common Stock or securities convertible or exercisable into Common Stock or trigger anti-dilution protection under the Preferred Stock and Warrants, the Preferred Stock and Warrants may become convertible or exercisable into additional shares of Common Stock. The issuance, pursuant to the terms of the Warrants and the Series B Preferred Stock, of Common Stock will dilute the percentage ownership interest of all stockholders, could dilute the book value per share of the Common Stock and will increase the number of the Company’s outstanding shares, and upon conversion or exercise would dilute the voting power of the Common Stock, which could cause the market price of our Common Stock to decrease. Depressed trading prices of our Common Stock could further impair our ability to raise sufficient capital to carry on our business.
The Company may need to seek alternative sources of capital, or risk its ability to continue operations, in the event it fails to meet a milestone under the terms of the Credit Agreement and the SPA.
Pursuant to the terms of the Credit Agreement and the SPA, the Purchaser is not required to provide funding under the Delayed Draw Term Loan in the event that the Company does not meet the necessary performance and funding milestones stipulated in the Credit Agreement. In the event the Company does not meet these milestones and the Purchaser chooses not to continue funding, the Company would need to seek alternative sources of capital, which may not be available on favorable terms or at all. If the Purchaser does not continue funding, and the Company’s efforts to raise additional outside capital prove unsuccessful, management would be required to seek other strategic alternatives, which may include, among others, a significant curtailment in the Company’s operations, a sale of certain of the Company’s assets, a sale of the entire Company to strategic or financial investors and/or allowing the Company to become insolvent.
A substantial number of shares of the Company’s Common Stock that are issuable upon the exercise or conversion of securities issuable under the Delayed Draw Term Loan and the SPA are subject to a contractual lockup.
Under the terms of the Delayed Draw Term Loan and the SPA, the holders of our securities issuable thereunder are subject to a contractual lockup that expires on June 21, 2025. The securities issuable under the Delayed Draw Term Loan and the SPA represent a substantial portion of our outstanding shares of Common Stock and, subject to stockholder approval and beneficial ownership limitations, have the potential to represent an even larger portion of our outstanding shares of common Stock, and we are obligated to register the resale of these shares of Common Stock by the holders.
Upon the effectiveness of the resale registration statement or otherwise in accordance with Rule 144 under the Securities Act and after expiration or waiver of the lock-up, the holders may sell our Common Stock in the open market or in privately negotiated transactions, which could have the effect of increasing the volatility in the trading price of our Common Stock or putting significant downward pressure on the price of our Common Stock.
The resale, or expected or potential resale, of a substantial number of shares of our Common Stock in the public market could adversely affect the market price for our Common Stock and make it more difficult for you to sell your Common Stock at times and prices that you feel are appropriate. Furthermore, because there will be a large number of shares registered pursuant to the registration statement, selling holders could continue to offer the securities covered by the registration statement for a significant period of time, the precise duration of which cannot be predicted. Accordingly, the adverse market and price pressures resulting from an offering pursuant to a registration statement may continue for an extended period of time.
Further, sales of our Common Stock upon expected expiration of resale restrictions could encourage short sales by market participants. Generally, short selling means selling a security, contract or commodity not owned by the seller. The seller is committed to eventually purchase the financial instrument previously sold. Short sales are used to capitalize on an expected decline in the security’s price. As such, short sales of our Common Stock could have a tendency to depress the price of our Common Stock, which could further increase the potential for short sales.
We cannot predict the size of future issuances or sales of our Common Stock or the effect, if any, that future issuances and sales of our Common Stock will have on the market price of our Common Stock. Sales of substantial amounts of our Common Stock, including issuances made in the ordinary course of the Company’s business, or the perception that such sales could occur, may materially and adversely affect prevailing market prices of our Common Stock.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
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Item 4. Mine Safety Disclosures
None
Item 5. Other Information
None
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(a) Exhibits
Incorporated by Reference
Exhibit NumberDescription of DocumentSchedule/FormFile NumberExhibitsFiling Date
3.1Form 10-KFile No. 001-392913.1February 28, 2023
3.2
Form 10-Q
File No. 001-392913.2May 14, 2024
3.3Form 8-KFile No. 001-392913.1May 19, 2022
3.4Form 8-KFile No. 001-392913.1June 24, 2024
3.5Form 8-KFile No. 001-392913.1August 30, 2024
3.6Form 8-KFile No. 001-392913.1September 12, 2024
3.7Form 8-KFile No. 001-392913.2September 12, 2024
31.1*
31.2*
32*
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104
Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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___________________________
*Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EOS ENERGY ENTERPRISES, INC.
Date: November 5, 2024
By:/s/ Joseph Mastrangelo
Name:Joseph Mastrangelo
Title:Chief Executive Officer and Director
(Principal Executive Officer)
Date: November 5, 2024
By:/s/ Nathan Kroeker
Name:Nathan Kroeker
Title:
Chief Financial Officer
(Principal Financial Officer)

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