(Nuvve Holding Corp., 12.Nov.2024) — Nuvve Holding Corp., a green energy technology company that provides a globally-available, commercial vehicle-to-grid (V2G) technology platform that enables electric vehicle (EV) batteries to store and resell unused energy back to the local electric grid and provides other grid services, today provided a third quarter 2024 update.
Third Quarter Highlights and Recent Developments
- Launched first V2G-capable electric school bus deployment in New Mexico
- Unveiled groundbreaking AC V2G technology at Exelon event in Delaware with our proprietary AC bi-directional charger
- Partnered with WISE EV to create convenient public EV charging station infrastructure in select markets
- Increased megawatts under management by 16.3% to 29.2 megawatts as of 30 Sep. 2024 from 25.1 megawatts as of 31 Dec.2023
- Reduced operating expenses excluding cost of sales by $5.9mn in third quarter 2024 to $2.8mn compared to the third quarter 2023
Management Discussion
Gregory Poilasne, Chief Executive Officer of Nuvve, said, “Though third quarter of 2024 has remained a challenging quarter, the delays we have seen in the first and second quarters of 2024 are finally going away. Our tight controls over expenses and improved operating efficiencies helped our liquidity and financial performance this quarter. We are expecting the improvements in revenues that materialized during the third quarter of 2024 to continue into the fourth quarter of 2024.”
2024 Third Quarter Financial Review
Total revenue was $1.92mn for the three months ended30 Sep. 2024, compared to $2.71mn for the three months ended 30 Sep. 2023, a decrease of $0.79mn, or 29.3%. The decrease was primarily attributable to a $1.23mn decrease in products revenue due to lower customers sales orders and shipments, partially offset by $0.4mn, increase in services revenue, and an increase in grants of $0.04mn. Products and services revenue for the three months ended 30 Sep. 2024, consisted of DC and AC Chargers of $0.54mn, grid services revenue of $0.15mn, and engineering services of $1.11mn driven by management fees earned for a certain V2G project management.
Cost of products and services revenue for the three months ended 30 Sep. 2024, decreased by $1.5mn to $0.9mn, or 61.8% compared to $2.4mn for the three months ended 30 Sep. 2023 due to lower customers sales orders and shipments. Products and services margin increased by 40.2% to 49.3% for the three months ended 30 Sep. 2024, compared to 9.0% in the same prior year period. Margin benefited from a lower mix of hardware charging stations’ sales and a higher mix of engineering services in the current quarter compared with the third quarter of 2023.
Selling, general and administrative expenses consist of selling, marketing, advertising, payroll, administrative, legal, finance, and professional expenses. Selling, general and administrative expenses were $2.1mn for the three months ended 30 Sep. 2024, as compared to $6.5mn for the three months ended 30 Sep. 2023, a decrease of $4.4mn, or 67.2%.
The decrease during the three months ended 30 Sep. 2024 was primarily attributable to decreases in compensation expenses of $3.9mn, including share-based compensation, decreases in legal fees expenses of $0.6mn, and decreases in bad debt expenses of $0.1mn, partially offset by increases in software subscriptions expenses of $0.2 million.
Research and development expenses decreased by $1.6mn, or 69.0%, from $2.3mn for the three months ended 30 Sep. 2023 to $0.7mn for the three months ended 30 Sep. 2024. The decrease during the three months ended 30 Sep. 2024 was primarily attributable to decreases in compensation expenses and subcontractor expenses used to advance our platform functionality and integration with more vehicles.
Other income, net consists primarily of interest expense, change in fair value of warrants liability and derivative liability, and other income (expense). Other income, net increased by $0.06mn from $0.13mn of other income for the three months ended 30 Sep. 2023, to $0.19mn in other income for the three months ended 30 Sep. 2024. The increase during the three months ended 30 Sep. 2024 was primarily attributable to the change in fair value of the warrants liability, sublease income related to the subleasing of part of our main office space, and interest expense on debt obligations.
Net loss decreased by $6.7mn, or 80.2%, from $8.3 million for the three months ended 30 Sep. 2023, to $1.6 million for the three months ended September 30, 2024. The decrease in net loss was primarily due to an increase in other income of $0.1 million, and a decrease in operating expenses of $7.4 million, which includes a decrease in cost of product and services of $1.5 million, and a decrease in revenue of $0.8 million, for the above aforementioned reasons.
Net Income (Loss) Attributable to Non-Controlling Interest
Net loss attributable to non-controlling interest was zero for the three months ended 30 Sep. 2024 compared to net income attributable to non-controlling interest of $0.01mn for the three months ended 30 Sep. 2023.
Stonepeak and Evolve conditional capital contribution commitments expired on 4 Aug. 2024. On 15 Oct. 2024, we, Stonepeak, and Evolve entered into Sale Agreement, pursuant to which Stonepeak and Evolve sold their combined 49% membership interest in Levo to us for a de minimis price. As a result, we became the 100% owner of Levo.
Megawatts Under Management
Megawatts under management refers to the potential available charging capacity Nuvve is currently managing around the world.
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