ESS’ May 2021 PPT Investor Presentation (“May’21 PPT”) disclosed that its iron flow batteries were “validated by a blue-chip customer base… field proven and shipping now.”
ESS highlighted six (6) different ESS battery installations deployed from 2015 to 2020 to customers such as the US government, a private commercial winery, and a university in San Diego.
We found five (5) ESS’ projects abandoned and its purported CY’20 project generated zero revenues.
To us, the evidence revealed that ESS lied to investors about its historical customer base and project deployments.
Competition in the battery sector is fierce, especially when your primary product inputs are iron, salt and water. In 2012 and 2015, ESS was awarded two separate grants for a total of ~US$ 3 million from the US Department of Energy (“DOE”). On September 23, 2021, the DOE announced US$18 million in grants awarded to four ESS flow battery competitors and did not include ESS.
ESS’ did not generated any revenues from January 2019 through June 2021 despite its purported “blue-chip customer base.”
With increased expenses and a depleting cash balance between US$ 256 million to 399 million (between ~US$ 1.89 to 2.70 cash/share dependent on warrant exercise amount), we are short GWH and believe that its stock is going significantly lower (~85%).
Table of Contents
1. FAILED PRODUCT INSTALLATIONS – DISSATISFIED CUSTOMERS
a. Stone Edge Farm Estate Vineyards & Winery
b. University of California, San Diego
c. US Army Corps of Engineers
d. Camp Pendleton – Cleanspark
e. San Diego Gas & Electric
f. BASF & Pacto Energia S.A
g. InoBat & Naturgy
2. TEETERING ON BANKRUPTCY IN CY’20 – SAVED BY A SPAC IN ‘21