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美国
证券交易委员会
华盛顿特区20549

表格 10-Q
 ☒
根据1934年证券交易法第13或15(d)条款的季度报告。
截至2024年6月30日季度结束 2024年9月30日
或
☐根据1934年证券交易法第13或15(d)条款的过渡报告
在过渡期间从 到

委员会文件编号 001-39291
EOS ENERGY ENTERPRISES，INC。
(依据其章程所规定的注册者正式名称)
特拉华州84-4290188
(成立地或组织其他管辖区)（联邦税号）
3920 Park Avenue
Edison新泽西08820
（总部地址）（邮政编码）
(732) 225-8400
申请人的电话号码，包括区域代码。
根据法案第12(b)条规定注册的证券：
每种类别的名称交易标的（s）每个注册交易所的名称
普通股，每股面值$0.0001EOSE纳斯达克股票交易所 LLC
每个权证可行使换取一股普通股EOSEW纳斯达克股票交易所 LLC
请勾选选项，表示以下事项：（1）在过去12个月内（或如此短的时期内，发行者必须提交此类报告的时期），已根据1934年证券交易法第13条或第15(d)条提交了所有所需提交的报告；以及（2）在过去90天内已受到此类提交要求的限制。是  ☒不☐
请检查是否在过去12个月内（或登记人所需提交和发布此类档案的时间较短期间内）依据S-T法规第405条（本章节第232.405条）的规定，提交并张贴了每一个互动数据档案在其企业网站上。是  ☒否☐
标示勾选是否登记申报人为大幅加快申报者、加快申报者、非加快申报者或较小的披露公司。参见交易所法案第120亿2条中「大幅加快申报者」、「加快申报者」和「较小的披露公司」的定义。(勾选一个)：
大型加速归档人☐加速归档人☐
非加速归档人☒小型报告公司☒
新兴成长型企业
☐
如果是新兴成长公司，请勾选此核准的方框，以指示登记人是否选择不使用《交易法》第13(a)条提供的遵循任何新的或修订的财务会计标准的延长过渡期。 ☐
请用勾选表示，公司是否属于壳公司（如本法案第120亿2条所定义）。 是 ☐ 否 ☒
截至2024年8月2日，注册人持有未行使的 217,912,361 2024年11月4日为止的普通股股份。

目录
目录
页面
未经稽核的 截至 2024年9月30日 和 2023年12月31日
未经审核的总体现金流量表总表他 九 之汇总) 2024年9月30日 和 2023
1
目录
前瞻性资讯
所有板块所包含的本季度报告表格10-Q（“季度报告”）中，除了历史事实陈述或形容外，均属于根据1995年私人证券诉讼改革法案的前瞻性陈述。 “预期”，“相信”，“持续”，“可能”，“估计”，“期望”，“打算”，“可能”，“潜在”，“预测”，“计划”，“潜在”，“现在”等表达，涉及我们的内容，都是旨在标识前瞻性陈述。 这些陈述出现在季度报告中的多处，包括有关Eos Energy Enterprises, Inc.意图，信念或目前期望的陈述。前瞻性陈述是根据我们管理层的信念以及他们制定的假设和目前向他们提供的信息。 由于这些陈述是基于对未来财务和营运结果的期望，而非事实陈述，实际结果可能与预期有实质不同。 可能导致实际结果与目前期望不符的因素包括但不限于：
•影响我们业务的不利变化；
•我们准确预测趋势的能力；
•我们的能力可以产生现金，偿还债务并承担额外的债务；
•我们未来筹措融资的能力；
•我们客户获得专案融资的能力;
•与信贷协议（下文有定义）相关的风险包括违约风险、优先股股本稀释风险、未达到里程碑的后果和股份的契约锁定。
•我们客户或Eos Energy Enterprises, Inc.根据通货膨胀降低法案可获得的最终税收抵免金额；
•我们对能否及时或获得能源部能源贷款办公室的贷款最终批准以及满足适用的条件先决的不确定性，或批准的贷款之资金拨款时间和最终规模，存在疑虑。
•在我们努力满足适用的条件前提并与美国能源部贷款计划办公室最终确认贷款文件，或在等待能源部贷款计划办公室发出贷款决定通知期间，政府关闭的可能性。
•我们能力能够持续发展高效的制造业流程，规模化生产，并准确预测相关成本和效率；
•我们营业收入和营运结果波动。
•现有或新竞争对手的竞争；
•我们将确定的订单后勤及储备转化为营业收入的能力；
•我们资讯科技系统中与安防漏洞相关的风险;
•与法律诉讼或索赔相关的风险；
•美国和其他国家能源政策演变所面临的风险以及监管遵循的潜在成本。
•与美国贸易环境变化相关的风险；
•我们能否维持在纳斯达克上市普通股的上市。
•我们能够持续发展业务、盈利性地管理成长、保持与客户和供应商的关系，并保留我们的管理层和关键员工；
•与一般经济状况不利变化相关的风险，包括通货膨胀压力和利率期货上升；
•供应链中断的风险和地缘政治冲突的其他影响;
2
目录
•适用法律或法规的变化；和
•其他因素详细列在本文的“风险因素”栏下。
如果其中一个或多个风险或不确定因素变得现实，或者我们的任何假设被证明不正确，实际结果可能与这些前瞻性声明中预测的结果在实质上有所不同。前瞻性声明仅在其发布日期有效。读者被告别过分依赖前瞻性声明，并且除非法律规定，公司不承担更新或修订这些前瞻性声明的义务，也无意更新或修改这些前瞻性声明，无论是因为新信息、未来事件还是其他原因。另请参阅第I部分第1A项所载披露。 “风险因素” 请查看公司截至2023年12月31日的年度10-K表格中包含的披露，以进一步讨论可能导致公司实际结果与其前瞻性声明中表述或暗示的结果有实质差异的风险和不确定因素。









3
目录
第I部分-财务信息
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并资产负债表
（以千为单位，除股份数量和每股金额外）

九月30日,
2024		12月31日
2023
资产 
流动资产：  
现金及现金等价物$23,015 $69,473 
受限现金2,625 3,439 
贷款承诺资产
58,525 — 
应收账款净额3,197 3,387 
114,467 25,908 17,070 
供应商存款9,332 7,161 
合同资产，流动11,911 6,386 
预付费用1,074 1,082 
补助应收款
1,506 3,256 
其他应收款
7,500 7,500 
其他资产4,617 3,577 
总流动资产149,210 122,331 
物业、厂房和设备，净值51,546 37,855 
无形资产, 净额237 295 
商誉4,331 4,331 
经营租赁权益资产，净值3,059 4,033 
长期限制性现金5,000 11,755 
其他资产净额
3,458 5,892 
资产总额$216,841 $186,492 
负债
流动负债:
应付账款$24,345 $20,540 
应计费用37,765 32,332 
经营租赁负债，流动 1,719 1,496 
长期债务，流动 2,536 3,332 
合同负债，流动 8,721 3,070 
其他流动负债44 100 
流动负债合计75,130 60,870 
长期负债：
经营租赁负债2,010 3,350 
长期债务726 88,002 
应付票据 - 关联方
184,167 112,525 
与关联方应付利息
3,097 — 
合同负债，长期3,303 3,540 
warrants责任
98,970 27,461 
与关联方的warrants负债
267,049 — 
其他负债76 1,544 
长期负债总额559,398 236,422 
4
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并资产负债表
（以千为单位，除股份数量和每股金额外）
九月30日,
2024		12月31日
2023
负债合计634,528 297,292 
承诺和 contingencies（注16）
优先股系列b（注3）
156,069 — 
股东权益亏损
普通股，每股面值为 $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日的流通股数分别为
23 21 
股票认购应收款项。724,449 765,018 
累积赤字(1,293,592)(875,846)
已实现其他综合收益 (损失)
(4,636)7 
股东赤字总额(573,756)(110,800)
总负债、优先股和股东赤字
$216,841 $186,492 
附注是这些未经审计的简明合并财务报表的组成部分。
5
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并损益表和综合损益表
（以千为单位，除股份数量和每股金额外）
截至9月30日的三个月九个月结束
九月30日,
 2024202320242023
营业收入
总收入$854 $684 $8,353 $9,768 
费用和支出
营业成本25,764 21,262 68,114 59,448 
研发费用7,428 3,228 16,878 13,699 
销售，总务及管理费用17,796 13,076 43,331 40,169 
固定资产减值损失3,192 955 3,528 7,151 
总成本和费用54,180 38,521 131,851 120,467 
营业亏损(53,326)(37,837)(123,498)(110,699)
其他（费用）收入
利息费用，净额(133)(4,994)(7,915)(14,709)
关联方利息费用(5,291)(4,449)(15,054)(32,962)
有关方面债务公允价值变动
(3,036)— (3,276)— 
权证公允价值变动
(66,469)34,406 (71,510)(24,957)
有关方面金融工具公允价值变动
(213,034)27,398 (260,227)(962)
债务熄灭利得（亏损）
— — 68,478 (3,510)
其他（费用）收入
(1,593)421 (4,727)(474)
（亏损）所得税前收入
$(342,882)$14,945 $(417,729)$(188,273)
所得税（收益）费用
(16)13 17 25 
归属股东的净（损失）收入
$(342,866)$14,932 $(417,746)$(188,298)
优先股累积
(41,267)— (64,938)— 
归属于普通股股东的净 (损失) 收益
$(384,133)$14,932 $(482,684)$(188,298)
其他综合（损失）收益
债务公允价值变动-信用风险
$(4,642)$— $(4,642)$— 
外币兑换损益，扣除税金3 (6)(1)(3)
归属普通股股东的综合（损失）收入
$(388,772)$14,926 $(487,327)$(188,301)
普通股股东每股基本和摊薄（损失）收入
Basic$(1.77)$0.11 $(2.30)$(1.65)
Diluted$(1.77)$(0.05)$(2.30)$(1.65)
普通股的加权平均股数
Basic216,898,374 138,005,222 209,820,480 114,209,090 
Diluted216,898,374 156,325,284 209,820,480 114,209,090 
附注是这些未经审计的简明合并财务报表的组成部分。
6
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明综合股东权益变动表
（以千为单位，除股份数量和每股金额外）
普通股额外资本溢价
累计其他综合收益（损失）
累计赤字总费用
股份数量
2023年6月30日的余额
127,309,960 $14 $620,006 $9 $(849,570)$(229,541)
以股票为基础的报酬计划— — 4,456 — — 4,456 
行使股票期权
50,000 67 67 
限制性股票单位的发行93,458 — — — — — 
取消股份用于支付工资税预提(13,584)— (136)— — (136)
普通股发行28,938,944 2 81,895 — — 81,897 
外币翻译调整— — — (6)— (6)
净收入
— — — — 14,932 14,932 
2023年9月30日余额
156,378,778 $16 $706,288 $3 $(834,638)$(128,331)
2024年6月30日的余额
216,491,215 $23 $759,881 $3 $(950,726)$(190,819)
以股票为基础的报酬计划— — 6,142 — — 6,142 
释放受限制的股票单位913,774 — — — — — 
认证股证权行权
289,654 — 463 — — 463 
取消用于支付薪资税款的股份(416,239)— (771)— — (771)
优先股权的增值
— — (41,267)— — (41,267)
外币翻译调整— — — 3 — 3 
债务公允价值变动-信用风险
— — — (4,642)— (4,642)
净损失— — — — (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
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明综合股东权益变动表
（以千为单位，除股份数量和每股金额外）
普通股额外资本溢价
累计其他综合收益（损失）
累计赤字总费用
股份数量
2022年12月31日的余额
82,653,781 $9 $513,614 $6 $(646,340)$(132,711)
以股票为基础的报酬计划— — 10,123 — — 10,123 
行使股票期权
250,000 — 335 — — 335 
释放受限制的股票单位1,606,791 — — — — — 
取消用于支付薪资税款的股份(303,655)— (587)— — (587)
普通股发行72,171,861 7 182,803 — — 182,810 
外币翻译调整— — — (3)— (3)
净损失— — — — (188,298)(188,298)
2023年9月30日余额
156,378,778 $16 $706,288 $3 $(834,638)$(128,331)
2023年12月31日的余额
199,133,827 $21 $765,018 $7 $(875,846)$(110,800)
以股票为基础的报酬计划— — 10,940 — — 10,940 
释放受限制的股票单位1,941,965 — — — — — 
认证股证权行权
289,654 — 463 — — 463 
取消用于支付薪资税款的股份(714,565)— (1,122)— — (1,122)
发行普通股 16,627,523 2 14,087 — — 14,089 
优先股权的增值
— — (64,938)— — (64,938)
外币翻译调整— — — (1)— (1)
债务公允价值变动-信用风险
— — (4,642)— (4,642)
净损失— — — — (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)
附注是这些未经审计的简明合并财务报表的组成部分。
8
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并现金流量表
（以千为单位，除股份数量和每股金额外）
九个月结束
九月30日,
 
2024
2023
经营活动现金流  
净损失$(417,746)$(188,298)
调整净损失，使其与经营活动中使用的现金净额相符
以股票为基础的报酬计划10,940 10,123 
折旧和摊销5,259 7,316 
债务清偿（收益）损失
(68,478)3,510 
处置物业、厂房和设备的减值损失 3,528 7,151 
摊销租赁权资产974 737 
非现金利息费用5,117 3,820 
非现金利息费用 - 关联方11,181 30,239 
有关方面债务公允价值变动
3,276 — 
权证公允价值变动
71,510 24,957 
有关方面金融工具公允价值变动
260,227 962 
其他4,858 639 
经营性资产和负债变动:
预付费用7 1,474 
库存(8,838)2,692 
应收账款189 96 
供应商存款(449)(4,044)
合同资产(4,729)(471)
补助应收款
1,750 (934)
应付账款1,136 (17,770)
应计费用1,038 12,258 
利息应付款-关联方3,097 2,706 
经营租赁负债(1,117)(830)
合同负债5,414 (565)
    其他 604 (3,346)
经营活动使用的净现金流量(111,252)(107,578)
投资活动现金流量
购买无形资产
(8)— 
购买固定资产(20,054)(21,186)
投资活动产生的净现金流出(20,062)(21,186)
筹资活动现金流量
金融租赁义务的本金支付(89)(93)
行使股票期权和认购权所得现金
463 442 
来自发行可转换票据的收入-关联方— 48,050 
支付债券发行费用
— (3,046)
来自信贷和证券购买交易的收入
98,575 — 
偿还债务发行成本-关联方
(12,238)(1,116)
偿还优先担保期限贷款
(19,946)— 
9
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并现金流量表
（以千为单位，除股份数量和每股金额外）
九个月结束
九月30日,
 
2024
2023
设备融资设施的偿还(2,447)(2,110)
发行普通股所得款项
14,089 81,897 
通过发行普通股和认股权所得款项
— 49,250 
支付股本发行成本
— (2,080)
回购股份用于员工所得税预提(1,122)(587)
筹资活动产生的现金净额77,285 170,607 
汇率变动对现金、现金等价物及受限制资金的影响2 (5)
现金、现金等价物和受限制现金的净(减少)增加额
(54,027)41,838 
期初现金、现金等价物及限制性现金余额84,667 31,223 
期末现金、现金等价物及限制性现金余额$30,640 $73,061 
非现金投融资活动
计入但未付的资本支出$3,216 $— 
以实物支付的利息发行可转换票据5,783 4,915 
优先股累积
64,938 — 
通过融资租赁获得的固定资产— 125 
用于交换租赁负债的租赁经营租赁资产— 363 
结算Yorkville可转债时发行普通股— 51,023 
应计但未支付的资本化内部使用软件— 130 
补充披露
支付的利息现金$4,279 $11,269 
附注是这些未经审计的简明合并财务报表的组成部分。
10
目录

EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）

1.概述
业务性质
Eos 能源企业股份有限公司（以下简称“公司”，“我们”，“我们”，“我们”和“柚子”）设计、开发、制造和销售创新的能源存储解决方案，用于大型公用事业、微电网和商业及工业（“C&I”）应用。Eos开发了广泛的知识产权，涵盖了独特的电池化学、机械产品设计、能源块配置和软件操作系统（电池管理系统）。公司只拥有 之一 公司由一个营运和可报告的部分组成。
流动性和持续经营
作为处于生命周期早期商业化阶段的成长型公司，柚子面临与企业发展相关的固有风险和不确定性。在这方面，公司迄今为止的几乎所有努力都集中在电池能源存储系统及配套产品和服务的开发和制造、管理和技术人员招聘、部署资本以扩大公司经营范围以满足客户需求以及筹集资金支持公司的发展。然而，由于这些努力，公司自创立以来已经遭受了巨大的损失和负面经营现金流，并预计在可预见的未来会继续遭受这些损失和负面经营现金流，直到公司能够实现盈利规模以维持其运营。
为了执行其发展策略，公司在过去往往依赖于通过发行股票、债务和融资安排下的借款（统称“外部资本”）来资助其成本结构。虽然公司相信其最近进入新的信贷工具，如下面所讨论的，已经显著改善了其资本状况，并为可持续运营和盈利提供了途径，但无法保证公司将能够实现这样的盈利或在不需要额外外部资本的情况下做到这一点。此外，虽然公司在过去成功地筹集了外部资本，但无法保证公司将来能够继续获得外部资本，或者在需要时以公司认可的条件获得外部资本。
根据第3条披露， 信贷和证券购买交易， 于2024年6月21日，公司与Cerberus Capital Management LP的附属公司CCm Denali Debt Holdings, LP（以下简称“ Cerberus”，“Denali”，“贷款人”，“持有人”）进行了一项融资交易。根据此交易，Cerberus同意提供$210,500 受担保多次提款融资，分 四个 份额（“延迟提款长期贷款”），以及一项$105,000 循环贷款融资（“循环融资计划”），将在2026年6月21日开始提供，由Cerberus全权决定，并且仅在延迟提款长期贷款完全融资后提供。
截至附表未经审计的简明合并基本报表发布日期（“发行日期”），管理层根据会计准则205-40号《企业持续经营：》评估了以下负面财务状况的重要性。
•自成立以来，公司为了基金发展而承担了巨额损失和负面现金流。截至2024年9月30日的九个月，公司录得净损失$417,746，经营活动现金流为负$111,252 ，累计递延亏损$1,293,592 截至2024年9月30日。
•截至2024年9月30日，公司负债$23,015 可供公司运营使用的无限制现金及现金等价物 和为美元的运营资金74,080，其中包括贷款承诺资产58,525 ，作为未经审计的综合资产负债表上的流动资产。
11
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）

1.概述 2.行业板块4.0技术 3.行业板块4.0对旅游业的影响 4.公司案例研究 5.结论 （续）
•此外，公司继续通过能源部（DOE）贷款项目办公室（LPO）的流程进行其第十七章贷款。2023年8月，DOE向公司发出了一封有条件的承诺函，批准向公司提供总额高达$的贷款398,600 通过DOE的清洁能源融资计划。在DOE与公司签订最终融资文件并为贷款提供资金之前，必须满足某些技术、法律和财务条件，并对DOE的满意进行尽职调查。公司将继续与DOE合作以满足这些条件并关闭贷款，但无法保证公司能够获得此类贷款或以公司可接受的条件获得贷款。
•公司需要遵守其信贷协议下的某些季度财务契约。这些财务契约包括信贷协议中定义的最低合并息税折旧摊销前利润、最低合并营业收入和最低流动性（统称为"财务契约"）。截至2024年9月30日，公司遵守了所有财务契约和非财务契约，除了2024年9月30日的最低合并营业收入财务契约。公司获得了从Cerberus那里获得了截至2024年9月30日季度的违约豁免。公司预计可能无法在2024年12月31日之后继续遵守最低合并营收财务契约，除非公司能够获得豁免或修订信贷协议。如果公司无法在2024年12月31日之前遵守财务和非财务契约，并且公司无法获得其他豁免，Cerberus可以自行决定与公司签订弃权协议和/或行使其现有的全部权利和救济措施，其中可能包括在公司贷款担保资产中行使其权利等。此外，公司的其他借款人可能根据其与公司各自借款安排的交叉违约条款行使类似的权利和救济措施。
•Cerberus 为公司提供了资金 $30,000 (“八月抽奖”), 公司收到了 $28,500，除了 5.0% 原发行折扣，因为公司实现了附注3中披露的8月抽奖的里程碑， 信贷和证券购买交易。 随后，在 2024 年 11 月 1 日，Cerberus 为公司提供了资金65,000 与2024年10月31日的部分（“十月抽奖” 或 “十月份抽奖”）相关，公司收到了美元61,750，这是净的 5.0附注21中披露的延迟提款定期贷款的原始发行折扣百分比， 后续事件。如果公司未能实现剩余的融资里程碑，并且Cerberus选择不继续融资，并且公司筹集额外外部资本的持续努力未成功，则公司将无法履行其债务，因为这些债务将在发行日期后的未来十二个月内到期。在这种情况下，管理层将被要求寻求其他战略选择，其中可能包括大幅削减公司的运营、出售公司的某些资产、将整个公司出售给战略或金融投资者和/或允许公司破产。
这些不确定性对公司继续作为一个持续经营实体提出了重大疑问。附带的未经审计的简明合并财务报表是在公司将继续作为持续经营实体的基础上编制的，这意味着公司将能够在可预见的未来正常业务过程中实现资产并偿还负债和承诺。因此，附带的未经审计的简明合并财务报表不包括可能因这些不确定性结果而导致的任何调整。
12
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
2. 重要会计政策之摘要
报告范围
附带的未经审计的简式综合财务报表包括公司及其所拥有的直接和间接子公司的账户。 100％拥有的，直接和间接子公司，并已根据美国通用会计准则（“GAAP”）编制。在编制未经审计的简式综合财务报表时，所有公司间交易和余额已被消除。这些报表反映了所有调整，包括正常经常性调整，管理层认为这些调整对公允呈现其中所含信息是必要的。根据美国证券交易委员会（“SEC”）的规定和法规，按照GAAP编制的财务报表通常包含的某些信息和脚注披露已经被压缩或省略。这些中期财务报表应与我们2023年年度报告Form 10-k中包含的经审计的综合财务报表一起阅读，其中包括相关附注。这些中期结果并不一定代表全年结果。
使用估计
按照GAAP编制财务报表需要管理层对资产和负债的计量和披露具有潜在影响的事项作出估计和假设。实际结果可能与这些估计有所不同。
应用开发成本
为与当前年度报告的呈现保持一致，特定的以前年度金额已重新分类。重新分类对报告的经营业绩没有影响。
A-1、A-20亿.1和B-2优先股
根据第3条说明 信贷和证券购买交易， 在2024年6月和8月分别发行的A-1和A-2优先股，随后在2024年9月分别转换为B-1和B-2优先股（统称“B优先股”），连同A-1优先股和A-2优先股一起，根据时间经过变得可赎回，因此符合被归类为临时权益的标准。管理层选择根据ASC 480-10-S99-3A-15(b)承认赎回价值的变化。因此，公司将在每个报告日期重新计量优先股至最大赎回价值，但不得低于其初始账面价值。调整已在公司未经审计的简明综合资产负债表中反映在受限制的资本溢价中。
根据《税收法典45X》的生产税收抵免（“PTC”）
13
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
2.重要会计政策摘要 （续）
由于PTC是可退还的税收抵免（即，具有直接支付选项的抵免），所以PTC不在ASC 740的范围内。因此，公司根据政府补助模型核算PTC。根据美国通用会计准则（GAAP），不涉及ASC 740范围之外的企业获得的政府补助的会计处理。公司的会计政策是类比于国际会计准则第20号， 《政府补助的会计处理和政府资助的披露》 根据国际财务报告准则（IFRS）的国际会计准则第20号。根据国际会计准则第20号，一旦合理确保实体将遵守补助的条件，补助款项将按照与实体确认相关支出或损失的期间相适应的系统性基础进行确认。公司将在有把握地确保满足以下条件的两者情况下确认补助款项：（1）公司有资格获得该补助，以及（2）公司能够遵守补助的相关条件。PTC是一种非货币资产，因为公司的意图是将税收抵免出售给第三方，并按照预期从出售中获得的价值记录在公司未经审计的简明合并资产负债表的补助应收款中，随后在未经审计的简明合并综合经营利润表的营业成本中计入。在PTC出售的情况下，在收到现金支付后， 公司将对补助应收款进行抵消记录。PTC记录价值与销售价格的差异将被确认为调整项，计入公司未经审计的简明合并综合经营利润表的营业成本中。
公允价值选择
公司已选取ASC 825-10下的选项， 信贷损失（Topic 326）：金融工具的信贷损失测量（"ASC 825"），对2024年8月29日（见注3，Credit和证券购买交易）以公允价值衡量拖延性提款期贷款，可单独选取某种工具并且除非发生新的选举日期，否则不可撤销。当选择某种工具的公允价值选项时，该工具的未实现收益和损失将在每个随后的报告日期报告于不经审计的综合损益及综合（损失）收益表中。与选取公允价值选项的相关的预付费用和费用将在发生时即认可为收益，并不予以推迟。这些金额包括在不经审计的综合损益及综合（损失）收益表中的其他费用中。由于特定工具风险变化所致的收益或损失包含在债务公允价值变动 - 信用风险中的累积其他综合收益中。
最近的会计声明
2023年11月，FASB发布了ASU 2023-07，分部报告（主题 280）：报告服务部门（主题 280）变更披露方式，通过升级对意义重大的分部费用的披露来改进分部报告披露要求。该准则适用于 2023 年 12 月 15 日之后的财年和 2024 年 12 月 15 日之后的财年间隔期。该准则必须适用于财务报表中呈现的所有期间的追溯。该公司目前正在评估该标准对合并财务报表的影响。 （ASU 2023-07）要求公司（即使只有一个可报告部门）需在年度和中期披露重要的部门费用和其他部门项目，并在中期披露有关一个可报告部门的利润或损失及资产的所有信息，这些信息目前要求在年度披露。此外，还要求公司披露首席运营决策者的职位和头衔。ASU 2023-07并未改变公司如何确定其经营部门，对其进行汇总或应用量化门槛来确定其可报告部门。ASU 2023-07自2023年12月15日后开始的财政年度和2024年12月15日后开始的财政年度内的中期期间生效。允许提前采用。公司应该将ASU 2023-07的修订内容追溯地应用于财务报表中呈现的所有之前期间。公司目前正在评估采纳ASU 2023-07的影响，并预计不会对公司的财务状况、业绩和现金流产生重大影响。.
14
目录
EOS 能源企业有限公司
未经审计的简明合并财务报表附注
（以千计，股票和每股金额除外）
3. 信贷和证券购买交易
信贷及担保协议（“信贷协议”）
延迟付款期贷款
根据2024年6月30日提交给美国证券交易委员会的10-Q表，公司于2024年6月21日与Cerberus Capital Management LP的关联方CCm Denali Debt Holdings，LP（以下简称" Cerberus"、“Denali”、“放款人”、“持有人”）签订了信贷和担保协议（“信贷协议”）。根据该交易，Cerberus同意提供一笔分期付款贷款（“分期”和统称为“延迟提款期贷款”或“DDTL”）以及一笔循环信贷设施（“循环信贷设施”），该设施将由放款人自行决定提供，并且仅在延迟提款期贷款完全筹集到位时提供。2024年6月21日，初始的分期已资助（“初始提款”）。2024年8月29日，8月份的全额分期资助到位。随后，2024年10月31日的全额分期资助到位（见附注21 - 210,500 受担保多次提款融资，分 四个 分期（"分期"，统称为"延迟提款期贷款"或"DDTL"），以及一笔循环信贷设施（"循环信贷设施"），将由放款人自行决定提供，仅当延迟提款期贷款全部筹集到位时才提供。105,000 部分资助（"初始提款"）。75,000 部分资助"。30,000 8月份的全额分期资助到位。65,000 10月31日的全额分期资助到位（详见附注21 - 后续事项） 供进一步讨论。 剩余金额为$40,500 定于2025年1月31日按照信贷协议中规定的条款和条件实现绩效指标后进行融资。
证券购买协议(以下简称“协议”)
2024年6月21日，公司与CCm Denali Equity Holdings，LP（“买方”）签署了一份证券购买协议（“SPA”）
SPA认股权证
根据SPA协议，公司发行了一份购买warrants的认股权证 43,276,194 股份代表权益的股东共有份额 19.9%的期权（“SPA认股证”） 十年 期权价格为每股$0.01 每股定额为$，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、期权、warrants、可转换证券或以普通股支付的其他股本或与股本相等的证券以低于发行日的普通股的公平市值（如认股权证中定义）的价格发行，就需调整。在公司获得股东批准之前，公司不得发行额外股份超过初始提款日期的已发行和流通股份的% 19.99（这一百分比根据认股权证条款调整的）在行使warrants时，公司不得发行的普通股超过现有普通股的% 49.9（如有关日期的发行普通股总数得到股东批准后，认股权利的上限将提升至% 49.9在2024年9月10日获得了股东批准。
SPA权证可由持有者自行选择以现金或无现金方式行使。如果一股的公平市值大于当时有效的行使价，则SPA权证在到期日自动按无现金方式行使。根据信贷协议加速时，公司可能需要按持有者要求的收盘价减去SPA权证价格的金额购买SPA权证。SPA权证符合ASC 480下的责任分类标准，并以公允价值确认，公允价值变动计入未经审计的综合经营损益中的衍生品公允价值变动 - 关联方中的变动。
15
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
3. 信贷协议和证券购买交易 （续）
有条件认购权证
根据信贷协议中规定的日期实现业绩里程碑后，公司将获得额外的资金，并将根据放贷人的选择，发行优先股（A-1或A-2优先股，如果在股东批准之前或B系列优先股如果在股东批准之后）或普通股权证（统称为"有条件权证"），金额相当于适用百分比，最高总额为 33.0在延迟Draw期贷款完全提取时，持股比例上限为全额稀释基础上的％。有条件权证符合ASC 480的负债分类标准。因此，有条件权证按照2024年9月30日未经审计的摘要合并资产负债表上公平价值列示为关联方权证负债。有条件权证公平价值变动金额包括在公司未经审计的综合损益表中的相关方衍生工具公平价值变动中。详见注14， 权证负债，进一步讨论SPA权证和有条件权证。
A-1系列可转换优先股
2024年6月21日，公司向特拉华州州务卿提交了A-1系列认证书，并发行了 59 A-1优先股份以满足信贷协议的条款。根据A-1系列认证书的条款，每份A-1优先股的原始发行价格为$455,822.59 （“A-1原始发行价格”）， 以及一个与普通股支付的清算价值，就好像这些股票被转换为 541,357 股，或合计 31,940,063 股普通股，视情况调整。
The 59 塞伯瑞斯获得股东批准后，于2024年9月10日将A-1优先股转换为B-1优先股。请参阅下文关于B优先股的讨论。
A-2首选股票
2024年8月29日，公司向特拉华州州务卿办公室提交了A-2系列指定证书（“A-2系列指定证书”）。
根据A-2首选股票指定证书的条款，每股A-2首选股票的原始发行价为$9,555,515.30 （称为“A-2原始发行价”）和一项清算价值，与普通股同时支付，就像这种股份可转换成 4,115,209 股，或者 28,806,463 股普通股的总数，受调整约束。A-2首选股票不具有表决权，也不可转换为普通股。A-2首选股票持有人有权按照A-2首选股票的清算价值（在A-2首选股票指定证书中定义）所代表的普通股股份数，收到分红或分配，金额等于实际支付给普通股每股的分红或分配乘以每股A-2首选股票的股数。A-2首选股票条款与A-1首选股票的条款基本相同。
2024年8月29日，在与Cerberus签订的信贷协议条款规定下，与8月抽签相关联，适用比例增加了 4.9%，因此，公司向Cerberus发行了 7 股A-2优先股。
The 7 Cerberus持有的A-2优先股转为B-2优先股，待2024年9月获得股东批准。请参阅下文有关B优先股的讨论。
Series B优先股
2024年9月11日，公司向特拉华州州务卿提交了 Series b-1 非投票可转换优先股的指定证明书（“Series b-1”）和 Series b-2 非投票可转换优先股的指定证明书（“Series b-2”）。
16
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
3. 信贷协议和证券购买交易 （续）
根据系列b-1指定证书的条款，每股b-1优先股的面值为$0.0001 每股股（“b-1优先股”）的原始发行价格为$841,999.99 （“b-1原始发行价格”）。
下表总结了截至2024年9月30日公司未偿付的优先股。
优先股
发行日期
已发行股票
原始发行价
流通股数
普通股等效
Series B-1优先股9/12/202431.940063$841,999.99 31.94006331,940,063 
B-2优先股
9/12/202428.806463$2,322,000 28.80646328,806,463 
转换权：根据B-2系列认股权证书的条款，每股B-2优先股，面值$0.0001 每股原始发行价为$2,322,000 （B-2原始发行价格）。B系列优先股可按照 1.0B系列优先股每股转换成普通股的转换比率为
分红派息：持有B系列优先股的股东有权按照每股B系列优先股实际支付的股利或分配额，基于按换算基础上每股普通股实际支付的股利或分配额。
任命董事: 持有优先股股东在任何时候实际拥有公司至少百分之　时，优先股股东独家以共同投票作为一个独立类别，将有权任命分别为1、2、3或4名董事加入公司董事会（“董事会”）。仅当此类任命不会导致公司任何管理文件下的控制权转移或违反纳斯达克等适用法律的要求，包括证券交易委员会和纳斯达克等规定，优先股股东将有权任命第四名董事加入董事会。 10%, 15% 30％，或在SOFR借款的情况下为 40所有持有首选股票的股东，作为一个独立的类别，共同投票，可以最多任命1、2、3或4名董事加入公司董事会（“董事会”）。只有在此类任命不会导致公司管理文件下的控制权变更或违反任何适用法律，包括证券交易委员会和纳斯达克的要求时，首选股票股东才有权任命第四名董事加入董事会。
优先购买权：《b系列指定证书》包括惯例的优先购买权条款，允许b系列优先股持有人参与公司未来某些股权发行。
在公司自愿或强制清算、解散或清算时，Series B优先股持有人有权按比例与普通股持有人及公司根据股权购买协议和信用协议（“投资者优先股”）发行的任何其他优先股持有人一起共享公司资产或剩余资金的分配，包括Series B优先股，金额相当于每股应支付的金额，如果所有Series B优先股已转换为普通股的话。

保护性条款：在投资方优先股股东不再持有至少公司未发行 preference 股总数一半的股份，或者直至 2029 年 6 月 21 日，根据多数投资方优先股已发行 preference 股票的积极投票，公司不得采取可能不利于优先股股东权益的某些行动。 5保护性条款：在投资方优先股股东不再持有至少公司未发行 preference 股总数一半的股份，或者直至 2029 年 6 月 21 日，根据多数投资方优先股已发行 preference 股票的积极投票，公司不得采取可能不利于优先股股东权益的某些行动。

赎回权：对于b-1系列优先股，在2029年6月21日之后的任何时候，如果是b-2系列优先股，则在2029年8月29日，任何持有人持有的b系列优先股的已发行股份均可按赎回价格兑换成现金。赎回价格将为每股金额，等于（i）b-1原始发行价格或b-2原始发行价格（如适用），加上截至赎回之日的所有应计和未付股息，以及（ii）适用的b系列优先股转换后可发行的普通股数量乘以五股普通股收盘销售价格的平均值（5) 赎回之日前的工作日加上赎回之日之前的所有应计和未付股息，直至赎回之日。
17
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
3. 信贷协议和证券购买交易 （续）
截至2024年9月30日，b-1系列和b-2系列优先股均按其赎回价值，在未经审计的综合资产负债表上被分类为中间权益，因为有可能被赎回。公司在未经审计的股东赤字综合报表中记录了b-1系列和b-2系列优先股的增值，这降低了已收资本。
Atlas赔付信和保险公司信函协议
2024年6月21日（“Atlas设施终止日期”），公司与ACP Post Oak Credit I LLC（“Atlas”）和Atlas放款人（以下统称“Atlas放款人”）签署了一份偿付函协议（“Atlas偿付函”），涉及公司的优先担保期限贷款（请参阅附注13，“借款”）。 借款 ，日期为2022年7月29日（“Atlas信贷协议”），由公司和Atlas作为借款人、行政代理人和抵押代理人以及随时作为协议方的放款人共同签署（与Atlas一起，统称“Atlas放款人”）。根据Atlas偿付函，到达Atlas设施终止日期时，Atlas信贷协议和相关设施文件下的所有未清偿义务都被视为已全额支付和清偿，Atlas放款人授予或持有的所有安全利益和其他留置权均被撤销和释放。根据Atlas偿付函，公司同意在Atlas设施终止日期支付给Atlas放款人（a）约$11,900 （已从根据Atlas信贷协议维护的利息托管帐户中释放），以及（b） $8,000 。Atlas还同意，在代替公司应付的金额的情况下，根据Atlas和贷款人之间协商达成的信贷协议中获得$1,000 参与度。公司不承担Atlas和贷款人之间参与协议的义务。优先担保期限贷款的偿付导致重组收益。这些金额包括在未经审计的收支表中的债务摊销收益（损失）中。请参阅附注13。 借款，以进行进一步讨论。
就Atlas信贷协议的终结，公司与保险公司签订了一封保险人信函协议，日期为2024年6月21日（“保险人信函协议”），与在Atlas信贷协议中向某些Atlas贷款人发行保险单的保险公司（“Atlas保险人”）达成协议，公司和Atlas保险人同意，公司应根据保险人信函协议的条款支付给Atlas保险人，（i）在2024年12月31日，前提是信贷协议中没有发生特定的违约事件，$3,000 和（ii）在2025年6月30日，前提是信贷协议中没有发生特定的违约事件，$4,000。这些金额已包含在未经审计的简化合并资产负债表中的应计费用中。
4. 收入确认
该公司主要通过销售其能源储存系统和服务（包括安装、调试和延长保修服务）而获得营业收入。 产品销售收入一般在一时点确认，而服务收入一般按时间确认，具体如下：
在截至9月30日的三个月中
在截至9月30日的九个月中，
2024202320242023
产品收入$368 $662 $7,465 $9,586 
服务收入486 22 888 182 
总收入$854 $684 $8,353 $9,768 
截至2024年9月30日的三个月，公司有两个客户占总营业收入的 65.6%和21.8；截至2024年9月30日的九个月，有两个客户占总营业收入的 80.3%和10.1，因公司专注于转型到新的制造业-半导体生产线。
截至2023年9月30日三个月的时间，公司有两位客户占总营业收入的 51.4%和35.5分别占总营业收入的百分之 91.0；截至2023年9月30日九个月的时间，我们有一位客户占总营业收入的百分之
18
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
4. 营业收入确认 (续)
合同资产和合同负债
以下表格提供了有关与客户签订的合同中的合同资产和合同负债的信息。 合同资产，流动性，合同负债，流动性和合同负债，长期性分别列在未经审计的简明综合资产负债表上，预计在超过十二个月内可以确认的合同资产列在其他资产净额下。
 
2024年9月30日
2023年12月31日
合同资产$13,051 $8,322 
合同负债$12,024 $6,610 
公司在某些合同中承认合同资产，其中销售收入识别绩效义务已完成，但尚未向客户开具发票。合同负债主要与客户预付公司在合同安排下履行绩效义务相关。合同余额在每个报告期结束时按合同基础报告为净合同资产或负债。
合同资产增加了$4,729 截至2024年9月30日的九个月内，合同资产增加，因为尚未发生发票的收入确认。
以下表格提供了2024年9月30日结束的九个月内合同负债变动信息:
 2024
合同负债，期初
$6,610 
营业收入确认
(8,128)
预收款项
7,457 
未开票应收账款
6,085 
期末合同负债
$12,024 
2024年9月30日的合同负债预计将在接下来的十二个月内确认8,721 和长期合同负债$将在十二个月以上内确认为营业收入3,303 2024年9月30日的合同资产预计将在接下来的十二个月内确认，和长期合同资产$预计将在十二个月以上内确认为应收账款11,911 2024年9月30日的合同资产预计将在接下来的十二个月内确认，和长期合同资产$预计将在十二个月以上内确认为应收账款1,140 将在接下来的十二个月内确认为应收账款，长期合同资产$预计将在十二个月以上内确认
剩余绩效承诺
剩余履约义务（“RPO”）代表未满足或部分未满足履约义务的分配交易价格。公司预计将根据公司的营业收入确认政策，于履约义务得到满足时确认与RPO有关的营业收入，详见附注2。 重要会计政策简介 的公司年度报告Form 10-k截至2023年12月31日。截至2024年9月30日，公司的剩余履约义务约为$30,149。公司预计在接下来的十二个月内确认约 75%的剩余履约义务的营业收入，其余部分将在之后确认。
19
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
5. 现金、现金等价物和受限制的现金
限制性现金 - 当前包括与美国海关保险相关的缴款和与我们信用卡计划协议相关的托管存款。
到2024年9月30日的长期受限现金，与信贷协议中定义的最低流动性契约有关。在第一笔资金注入之前，公司不得允许现金及现金等价物随时低于$。2,500一旦第一笔资金注入，要求增加至$。5,000 一旦延迟支取期贷款全部发放，或首次通过DOE LPO发生任何负债，或公司实现正的最低合并EBITDA时，要求增加至$。15,000.
截至2023年9月30日的长期受限现金款项与需要根据优先担保长期贷款协议以托管金额等于下一笔 四个 季度利息支付截至资产负债表日期应付款项。公司在2024年6月SPA和信贷协议的相关事宜中，达成一致意见，清偿并终止优先担保长期贷款。因此，相关托管账户中持有的受限现金已被释放（见第13条注释， 借款和注释3， 信贷协议和证券购买交易 用于进一步讨论).
以下表格将未经审计的简明合并资产负债表中报告的金额与未经审计的简明合并现金流量表中报告的现金、现金等价物和受限现金进行了调解：
2024年9月30日
2023年9月30日
现金及现金等价物$23,015 $57,970 
限制性现金-流动2,625 3,439 
长期限制性现金5,000 11,652 
总现金、现金等价物和受限制现金 $30,640 $73,061 
6. 库存
以下表格提供了库存余额信息：
 
2024年9月30日
2023年12月31日
原材料$20,738 $15,487 
在制品4,645 1,105 
成品525 478 
总库存，净额$25,908 $17,070 
20
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
7. 净固定资产
以下表格提供了关于固定资产、厂房和设备的净余额的信息:
 预计使用寿命
2024年9月30日
2023年12月31日
设备
5至10年
$51,831 $20,559 
融资租赁
5年
504 504 
家具
5至10年
2,283 2,103 
租赁改良使用寿命较短的家具/
剩余租约		9,047 7,718 
工具
2至3年
9,483 7,045 
施工进行中（“CIP”）
82 17,958 
　　　　　　　　总计73,230 55,887 
减：累计折旧 (21,684)(18,032)
固定资产、净额$51,546 $37,855 
与房地产、厂房和设备相关的折旧费用分别为$三个月和$六个月截至2023年6月30日。2,669 和 $2,144 截至2024年9月30日和2023年的三个月以及$5,193 和 $7,255 分别为截至2024年和2023年9月30日九个月的$
该公司记录了2024年9月30日和2023年9月30日的财产、厂房和设备减值损失分别为$3,192 和 $955 ，分别为2024年9月30日和2023年9月30日的三个月，以及$3,528 和 $7,151 ，分别为2024年9月30日和2023年9月30日的九个月。2023年的减值损失主要是由于设备更换、某些生产流程外包和从Gen 2.3电池系统到Z3™电池系统的生产转变。2024年的减值主要与从Z3™-Phase 1到Z3™-Phase 2生产的设计变更有关，其中Phase 1生产资产无法用于Phase 2生产或改变用途。
2024年6月28日，公司成功启动了第一条制造业-半导体生产线的商业运营。因此，根据2024年6月28日的情况，将在建设中的资产重新分类为设备、租赁改善、家具和工装。在重新分类之前的在建工程中，资本化的利息成本为$1,841 截至2024年9月30日的九个月期间资本化的利息成本为$。 否 在2023年9月30日和2024年9月30日的三个九个月期间以及在2024年9月30日的三个月期间，资本化的利息成本得到了确认。
8. 无形资产
无形资产包括价值为$的专利400这些专利被确定为有用寿命，并按照成本分期摊销到业务结果中 $244,200，将在归属期内按比例确认。公司在截至2024年9月30日的九个月内，涉及专利的摊销费用为$10 截至2024年9月30日和2023年的三个月以及$30 公司记录了截至2024年和2023年9月30日的九个月期间，与专利相关的摊销费用为$
公司在2023年6月30日和2022年6月30日的三个和六个月内将$百万的授予股票-based报酬支出资本化为软件成本，分别相比$   百万146 内部使用软件成本，包括$8 在截至2024年9月30日的九个月内资本化的成本。该软件具有一定的使用寿命，将在结果中分期摊销 3 年。公司分别记录了截至2024年9月30日和2023年的九个月中与软件相关的摊销费用$12 和 $11 截至2024年9月30日和2023年的三个月以及$36 和 $31 。
21
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
9. 应收票据净额和变量利益实体（"VIEs"）考量
应收票据净额涉及公司向客户提供的融资。公司以未偿本金余额减去损失准备金报告应收票据。信用损失的估计基于历史趋势、客户的财务状况和当前经济趋势。公司按固定利率收取利息，并通过将有效利率应用于未偿本金余额来计算利息收入。
公司截至2024年9月30日和2023年12月31日的应收票据净额为$847 和 $863 按照附带的非经审计简明合并资产负债表，这些金额包括在其他资产净额和其他流动资产中。截至2024年9月30日和2023年12月31日，与应收票据相关的预期信用损失准备额为$37 和 $2分别为。
公司为客户提供应收票据融资的VIE。然而，公司不是主要受益人，因为公司没有权力指导对VIE经济绩效影响最大的活动。因此，VIE未纳入公司合并基本报表。. 最大损失风险仅限于资产负债表日期的应收票据账面价值。
10. 应计费用
应计费用如下所示:
2024年9月30日
2023年12月31日
应计工资$7,524 $4,553 
保修储备 (2)
4,695 6,197 
应计的法律和专业费用11,468 10,710 
合同损失准备3,692 3,351 
应付保险费
— 2,605 
其他 (1)
10,386 4,916 
总应计费用$37,765 $32,332 
(1) 上表中截至2024年9月30日的其他应计费用中，包括$7,000 根据保险人信函协议支付。
请参阅说明3， 信贷和证券购买交易 进一步讨论。
(2) 请查看以下表格，了解截至2024年9月30日为止三个月和九个月的保修储备活动。

以下表格总结了保修储备金活动:

截至9月30日的三个月
截至9月30日的九个月
2024202320242023
保修储备-期初$5,054 $4,421 $6,197 3,836 
本期交付的增加61 58 326 455 
保修储备估计变动— 416 (1,150)1,124 
已发生的保修成本(420)— (678)(520)
保修储备-期末$4,695 $4,895 $4,695 $4,895 
22
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
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计划于（i）签署信用协议后的日期之早者到期。 月内。2023年和2022年的三个和九个月期权授予均以授予日公司普通股的公允价值相等的行权价格授予，并且是非法定股票期权。 在签署信用协议后和（ii）在公司某些未偿付可转换票据到期日前的天数。 91 在公司部分未偿付可转换票据到期日之前的天数。
里程碑
如果公司在任何预定的分期日期或另一个额外的里程碑测量日期未能实现任何里程碑，除非贷款人放弃，否则该公司将不会收到特定的分期款项，并将面临由高达一个百分点的罚金代表的。 4.0在每个未完成里程碑测量日期，适用百分比将以增加warrants或优先股的形式增加，这可能导致发行额外的优先股或warrants，增加至所有未达里程碑的百分比，或高达一个百分点的。 16.0所有未完成里程碑，或高达一个百分点的总体适用百分比增加的。 如果公司未能实现中期里程碑，但随后实现该特定类别的最终里程碑，与该里程碑类别相关的渐进式处罚股权将退还给公司。 45.0考虑到百分之一个百分点。 33.0如果公司未能实现中间里程碑，然后随后实现该特定类别的最终里程碑，与该里程碑类别相关的渐进式处罚股权将退还给公司。
契约
《授信协议》还包含某些财务契约，包括（均在《授信协议》中定义）
•最低综合税息前折旧摊提前之利润（Minumum Consolidated EBITDA）
•最低综合营业收入
•最低流动性

截至2024年9月30日止三个月, 公司符合最低可比波动税息折旧及摊销前溢利以及最低流动资金财务契约要求，并获得了 Cerberus 就最低营业收入财务契约不符要求而获得的豁免。
25
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
13. 借款 (续)
这些贷款受某些违约事件的影响，这些违约事件可能由以下因素触发：（i）违反信贷协议或相关文件中的付款义务和其他义务和陈述，（ii）本金超过预定金额的其他债务融资下的违约，（iii）未能履行或遵守信贷协议中的某些承诺，（iv）就公司或其任何子公司签订法令或救济令美国《破产法》下的非自愿案件或根据任何其他债务人救济法，(v) 任何金钱判决、扣押令或类似程序，在任何时候涉及的总金额超过美元2,500，（vi）针对公司或担保人下达的任何命令、判决或法令，下令解散或拆分此类实体，（vii）普通股未能在美国国际认可的证券交易所上市，以及（viii）控制权的变更。
公司选择公允价值选项来处理拖延支取借款便捷操作。财务责任最初按发行日公允价值计量，随后在每个报告期日期定期以公允价值重新计量。公司还选择了8月份支取的公允价值选项。初始支取公允价值以及8月份支取公允价值（合称DDTL）分别为$25,653在截至2024年4月30日和2023年10月31日的三个和六个月中，公司分别记录了2,055美元和4,621美元的利息费用。12,528，对应发行时价值。截至2024年9月30日，DDTL的公允价值为$46,099。分别于2024年9月30日三个月和九个月的损失分别为$3,036 和 $3,276 ，这在未经审计的合并利润表和综合收益表中的债务公允价值变动中列示。对于截至2024年9月30日三个月和九个月的特定工具风险变动，公司还录得$4,642 ，这包含在累积其他全面收益中的债务信用风险公允价值变动中。
公司没有单独报告DDTL的利息费用，因为这样的利息已经包含在票据公允价值的判断中。请参阅附注15， 公允价值计量 以确定2024年9月30日发行时以及延迟提款期贷款的公允价值所使用的假设。
2021年应付可转换票据-关联方
2021年7月6日，公司与科克工业公司的全资间接子公司Spring Creek Capital, LLC签订了投资协议。该投资协议规定发行和出售给科克工业公司金额为$的2021可转换票据。100,000.
2021年可转换票据包含一种嵌入式衍生工具特征，在未经审计的简明合并资产负债表中作为应付款项-关联方的一部分呈现。请参阅注释15， 公允价值计量 用于判断截至2024年9月30日和2023年12月31日嵌入式衍生工具的公允价值的假设。
2021年可转换票据上确认的利息支出如下：
截至9月30日的三个月
截至9月30日的九个月
2024
2023
2024
2023
合同利息支出$1,789 $1,686 $5,264 $4,960 
债务折扣的摊销1,713 1,365 4,832 3,822 
债务发行成本的摊销165 132 467 371 
总计$3,667 $3,183 $10,563 $9,153 

26
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
13. 借款 (续)
2021可转换票据的余额如下：
2024年9月30日
2023年12月31日
主要$119,289 $115,815 
未摊销债务折扣(14,780)(19,612)
未摊销的债务发行成本(1,428)(1,895)
嵌入式转换功能388 78 
聚合携带价值$103,469 $94,386 
公司有义务根据延迟放款期贷款协议的条款，按照半年一次的方式以实物形式偿还所有2021年可转换票据相关的合同利息。因此，截至2024年9月30日和2023年12月31日，2021年可转换票据的利息应付款项分别为$1,789 和 无。截至2024年9月30日和2023年9月30日为止的九个月内，以实物形式支付、资本化并添加到2021年可转换票据本金中的利息为$3,474 和 $3,275分别为。
阿富汗可转换票据 - 关联方
2023年1月18日，公司与AFG可转换票据购买方签订了投资协议，涉及向AFG可转换票据购买方发行和出售总额为$的票据13,750 公司的AFG可转换票据按每年%的利率计息，完全以实物支付(“PIK利息”)，并于每年6月30日和12月30日逾期支付利息 26.5。预计票据将于2026年6月30日到期，但可提前转换、赎回或回购。AFG可转换票据可按照约定的反稀释和其他调整因素转换为公司每股面值$的普通股，初始转换价格约为每股$0.0001 ，公司有权以普通股、现金或两者任意组合方式结算转换1.67 。
转换选项包括行使条件，要求公司获得股东批准进行交易所上限范围内的转换。如果未能获得普通股额外发行的股东批准，公司将需要以现金形式结算超过交易所上限的转换。由于在未获得股东批准的情况下可能需要用现金结算，内嵌转换功能未能符合ASC 815中的权益分类指南，因此被要求从AFG可转换票据中分离出来，并在每个报告日期按公允值进行核算，公允值变动在未经审计的经营活动损益表和全面（损失）收入表中予以确认。内嵌衍生工具作为应付票据-关联方的组成部分呈现在未经审计的资产负债表中。内嵌衍生工具的公允值分别为$17,621 和 $4,345 于2024年9月30日和2023年12月31日。
在发行时，AFG可转换票据的公允价值为$16,623，高于实际收到的款项。公司在截至2023年9月30日未经审计的简明综合损益表中，记录了$的差额作为利息费用。2,873 ，高于实际收到的款项。公司在截至2023年9月30日未经审计的简明综合损益表中，记录了$的差额作为利息费用。
27
目录
EOS ENERGY ENTERPRISES, INC。
未经审计的简明合并基本报表注解
（以千为单位，除股份数量和每股金额外）
13. 借款 (续)
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.
28
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.)
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.
公司根据ASC 470-60准则处理了高级担保期限贷款的终止债务重组。因此，公司在2024年9月30日结束的九个月的未经审计的简明合并利润表和综合(损失)收入中确认了一项重组收益$68,478 。
See Note 3, Credit Agreement and Securities Purchase Transaction for additional information on this transaction.
The following table summarizes interest expense recognized:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Contractual interest expense$— $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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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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