I will then hand over to Kevin, who will give a review of our financial performance and outlook in more detail. We remain focused on expanding and executing our commercial pipeline with a view to embed our technology and product portfolio in these key power sectors. The opening of our new facility at Hood Park in Boston represents a significant milestone achievement for Advent because this will provide a firm anchor to our business growth in North America. We also continued our capital investment program in state-of-the-art equipment that's required to complete our scale North production capacity.
We believe that the future demand for Advent's high-temperature PEM technology and related products will create a significant opportunity, and we believe Advent will be ideally positioned to capitalize on this. We look forward to growing our commercial activities and achieving long-term profitable growth. The latter is expected to deliver revenue consisting of milestone payments and royalties, which will provide the upside to our business. Furthermore, the expected system increase in power density and lifetime will highly differentiate Advent's fuel cells in the heavy-duty mobility industry.
Turning to our financials, we delivered revenue of $1 million in the first quarter and income from grants of $0.5 million, for a total of $1.5 million. The use of this equity line of credit is entirely at Advent's discretion and provides us with an effective buffer, if required, that can be used alongside other sources of capital. As we all know, however, not every opportunity in the pipeline will transpire due to factors that are beyond Advent's control. Due to the long-term contract nature of our business model, the timing of our revenue can also be difficult to predict.
| Metric | Period | Current guidance |
|---|---|---|
| 2023 revenue and income-from-grants outlook | FY2023 | Not provided on this call due to uncertainty; expected to be provided on the next earnings call |
| Ion Pair MEA in flagship products (Serene, Honey Badger 50) | 2024 | Expected to begin incorporating in 2024, targeting significant cost reduction and higher power density and lifetime |
| Honey Badger defense product production go/no-go | 2024 | Production decision expected in 2024, pending DOE approval |
| Metric | YoY | Note |
|---|---|---|
| Total revenue and income from grants | — | $1.0M revenue plus $0.5M income from grants for $1.5M total in Q1 |
| Total operating expenses | down ~$1M | $11.6M total; administrative cost reductions implemented through 2022, partially offset by higher R&D expenses |
| Net loss | — | $12M net loss, or $0.23 per share, in Q1 |
| Unrestricted cash reserves | — | $19.5M at March 31, 2023, down $13.4M from year-end 2022 on opex, a $2.2M inventory increase and $1.9M of CapEx |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Green HiPo gigafactory and EU IPCEI funding | — | Site purchased in Kozani; working with the Greek state to sign the contract for up to EUR 782.1M in funding | — |
| Ion Pair MEA as next-generation, cost-reducing technology | — | Targeting roughly 2x power density and 2x lifetime; to be embedded in products from 2024 | — |
| Strategic partnerships with industry leaders (Hyundai, Siemens Energy, BASF) | — | Multiple JDAs and supply agreements aimed at endorsing the technology and securing the supply chain | — |
| Focus on core mobility and stationary power sectors | — | Continued consolidation of operations around these two markets | — |
| Capital position and funding options | — | Finalized a $50M equity line of credit with Lincoln Park Capital in April 2023 as an optional buffer while pursuing other capital | — |