# EDGAR Filing Document

**Accession Number:** 0001744494
**File Stem:** 0001829126-25-006762
**Filing Date:** 2025-8
**Character Count:** 717566
**Document Hash:** 4756704072b9ced01a1596fcb5a2e49e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-25-006762.hdr.sgml**: 20250827

**ACCESSION NUMBER**: 0001829126-25-006762

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 6

**FILED AS OF DATE**: 20250827

**DATE AS OF CHANGE**: 20250827

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ADVENT TECHNOLOGIES HOLDINGS, INC.
- **CENTRAL INDEX KEY:** 0001744494
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 830982969
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-289686
- **FILM NUMBER:** 251260335

**BUSINESS ADDRESS:**
- **STREET 1:** 500 RUTHERFORD AVENUE
- **STREET 2:** SUITE 102
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02129
- **BUSINESS PHONE:** 857-264-7035

**MAIL ADDRESS:**
- **STREET 1:** 500 RUTHERFORD AVENUE
- **STREET 2:** SUITE 102
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02129

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMCI Acquisition Corp.
- **DATE OF NAME CHANGE:** 20180622

**Filed Pursuant to Rule 424(b)(3)**

**Registration No. 333-289686**

![](img_001.jpg)

**Up to 987,036 Shares of Common Stock**

This prospectus relates to the offer and resale of an aggregate of up to 987,036 shares of our common stock, $0.0001 par value per share, by Hudson Global Ventures, LLC ("Hudson Global" or the "Selling Stockholder"). The shares included in this prospectus consist of shares of common stock that we have issued or that we may, in our discretion, elect to issue and sell to Hudson Global, from time to time after the date of this prospectus and the date of the satisfaction of the conditions to the Selling Stockholder's purchase obligations (the "Commencement Date") as set forth in the equity purchase agreement we entered into with Hudson Global on August 14, 2025 (the "Purchase Agreement"). Pursuant to the Purchase Agreement, Hudson Global has committed to purchase from us, at our direction, up to $52,000,000 of our common stock, subject to the terms and conditions specified in the Purchase Agreement. See the section titled "*Hudson Global Transaction*" for a description of the Purchase Agreement and the section titled "*Selling Stockholder*" for additional information regarding Hudson Global.

We are not selling any shares of common stock being offered by this prospectus and will not receive any of the proceeds from the sale of such shares by Hudson Global. However, we may receive up to $52,000,000 in aggregate gross proceeds from sales of our common stock to Hudson Global that we may, in our discretion, elect to make, from time to time after the date of this prospectus, pursuant to the Purchase Agreement.

Hudson Global may sell or otherwise dispose of the shares of common stock included in this prospectus in a number of different ways and at varying prices. See the section titled "*Plan of Distribution*" for more information about how Hudson Global may sell or otherwise dispose of the common stock being offered in this prospectus. Hudson Global is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended (the "Securities Act").

You should read this prospectus and any prospectus supplement or amendment carefully before you invest in our securities.

Our common stock and warrants are listed on Nasdaq under the symbols "ADN" and "ADNWW", respectively. On August 14, 2025, the closing price of our common stock was $3.68 per share and the closing price of our warrants was $0.0246 per share.

**Investing in our securities involves risks that are described in the "*Risk Factors*" section beginning on page 12 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is August 27, 2025

[**Table of Contents**](#toc)

<u>**TABLE OF CONTENTS**</u>

---

| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [RISK FACTORS](#a_002) | 12 |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#a_003) | 35 |
| [HUDSON GLOBAL TRANSACTION](#a_004) | 37 |
| [USE OF PROCEEDS](#a_005) | 41 |
| [PLAN OF DISTRIBUTION](#a_005a) | 43 |
| [DIVIDEND POLICY](#a_006) | 45 |
| [CAPITALIZATION](#a_007) | 46 |
| [DILUTION](#a_008) | 47 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_009) | 48 |
| [BUSINESS](#a_010) | 68 |
| [MANAGEMENT](#a_011) | 83 |
| [EXECUTIVE COMPENSATION](#a_012) | 89 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_013) | 100 |
| [PRINCIPAL SHAREHOLDERS](#a_014) | 101 |
| [DESCRIPTION OF SECURITIES](#a_015) | 102 |
| [PLAN OF DISTRIBUTION](#a_016) | 108 |
| [LEGAL MATTERS](#a_017) | 110 |
| [EXPERTS](#a_018) | 111 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_019) | 112 |
| [FINANCIAL STATEMENTS](#a_020) | F-1 |

---

i

[**Table of Contents**](#toc)

**PROSPECTUS SUMMARY**

*This summary highlights information contained elsewhere in this prospectus. This summary does not contain all of the information that you should consider before deciding to invest in our securities. You should carefully read this entire prospectus before making an investment decision, including the information presented under the headings* "*Risk Factors*" *and* "*Cautionary Statement Regarding Forward-Looking Statements*" *in this prospectus and the historical financial statements and the notes thereto included in this prospectus. You should pay special attention to the information contained under the caption titled "Risk Factors" in this prospectus before deciding to buy our securities.*

*Unless otherwise indicated by the context, reference in this prospectus to "Advent", "we," "us," "our," "Company" and similar references are to the combined business of Advent Technologies Holdings, Inc. and its consolidated subsidiaries.*

**Our Company**

**Overview**

We are an advanced materials and technology development company operating in the fuel cell and hydrogen technology space, including liquid hydrogen carriers such as methanol. We are a world-leading company in the development of HT-PEM (High Temperature Proton Exchange Membrane) technology (with approximately 150 patents issued, pending, or licensed worldwide). The HT-PEM fuel cell technology enables off-grid power systems to produce clean power from various green fuels (hydrogen, methanol, bio and e-Methanol, and renewable natural gas) and to function with higher efficiency at extreme ambient temperatures and in general extreme environmental conditions (humidity, air pollution). Advent's main operations focus on developing and manufacturing the Membrane Electrode Assembly (MEA) and the fuel cell stack, which is the core electrochemical element and the most critical component of the fuel cell. The MEA and the fuel cell stack largely determines lifetime, power density, efficiency, and overall cost of installation and operation for all applications. Advent is working with global market-leading OEMs with the goal of bringing to the market complete fuel cell systems for a range of applications in the stationary power markets (backup, off-grid, and portable power) and the heavy-duty mobility markets (automotive, aviation, marine).

Our mission is to bring fuel cells that have a lower Total Cost of Ownership (TCO) to market when compared to diesel generators and internal combustion engines. Our goal is to become a leading provider of HT-PEM fuel cell systems, stacks and HT-PEM-based membrane electrode assemblies ("MEA" or "MEAs").

A large portion of our current revenue is derived from Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) with world-leading OEMs for the development of joint products. The ultimate goal is for OEMs to bring fuel cell systems specialized for each application to the market. These systems will be branded by the OEMs and function with Advent-inside technology (the Advent MEA and/or the Advent fuel cell stack). The Company also has extensive know-how and IP in the development of complete fuel cell systems that it intends to license out to OEMs and Tier 1s through technology license agreements. While fuel cell stack sales and associated revenue is expected to provide the majority of our income in the near future, the MEA innovation is expected to facilitate future strategic partnerships between Tier 1 suppliers and us and original equipment manufacturers ("OEMs") as these downstream manufacturers develop their own white-labeled HT-PEM products. We have had early success in forging such strategic partnerships, as with the case of Airbus for the aerospace sector and previously with Siemens Energy for the maritime industry. The US Army development contracts for human portable power fuel cells also fall under this category.

[**Table of Contents**](#toc)

Our headquarters are in Livermore, California, and we have MEA and fuel cell stack product development facilities in Livermore, California and Patras, Greece. Our investment priorities are increasing MEA performance and meeting the milestones of the Joint Development Agreements we have with various customers and partners including Airbus, Hyundai Motors and the US Army. Our business priorities are to expand our network of strategic OEM relationships in the Automotive and large-scale Stationary power markets.

Please see the section entitled "Business" on page 68, for more information.

**Our Background**

Advent Technologies Holdings, Inc., a Delaware corporation (the "Company"), was originally named AMCI Acquisition Corp. ("AMCI"), and was established as a special purpose acquisition company, which completed its initial public offering in November 2018. AMCI was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, and, prior to the Business Combination, the Company was a "shell company" as defined under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), because it had no operations and nominal assets consisting almost entirely of cash.

**Business Strengths**

<u>Highly Differentiated Technology</u>: We believe that for the reasons explained above, HT-PEM is a highly differentiated technology that provides significant competitive advantages to Advent and our partners. HT-PEM technology is a new and promising technology when compared to LT-PEM (Low Temperature Proton Exchange Membrane), that was developed for the last 50 years and may have plateaued in terms of expected technology breakthroughs needed to overcome thermal control and environmental limitations.

<u>Experienced management team with a proven track record</u>: We were founded and managed by world-class electrochemists, material scientists, and fuel cell specialists with significant industry and manufacturing expertise. We have received numerous R&D funds from the US DoE and the European Union and are considered a pioneer with years of experience in clean energy technology innovation. The team that we have recruited to bring innovation to the fuel cell industry is highly experienced and has a long pedigree in R&D and world-class manufacturing. Our team has been developing MEA components since 2006 and is led by Dr. Emory De Castro (CTO).

<u>Strategic Partnership with US DoE and Los Alamos National Laboratories</u>: In addition, we initiated in 2021 a Cooperative Research and Development Agreement (CRADA) under the U.S. Department of Energy ("DoE") umbrella to commercialize next-generation MEAs and ultra-low platinum catalyst solutions developed by the National Laboratories at Los Alamos, Brookhaven, and NREL, in the U.S. We were selected as the scale-up and commercialization partner of the DoE and are working closely with the highly-skilled R&D teams of top U.S. government laboratories.

<u>MEA IP and Technology</u>: We firmly believe in the transformative potential of the Advent MEA to redefine the global fuel cell market, enabling applications that were previously unattainable with conventional fuel cell materials. Our objective is to enhance the MEA's capabilities when operating at 160°C to 180°C for more than 20,000 hours, delivering a higher power density that will result in a simpler, more cost-effective system with superior performance in terms of weight, power, lifetime, total cost of ownership, and infrastructure investment. As we continue to strengthen our collaborations with some of the world's largest OEMs and Tier 1 Manufacturers, our aim is to capitalize on the growing momentum and demand for our HT-PEM technology.

[**Table of Contents**](#toc)

**Products and Services**

We derive revenue from the following sources:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Engineering and License Fees:** In the mobility sector (e.g., heavy-duty automotive, mining equipment, marine, aerospace), we are entering into Joint Development Agreements ("JDAs") (as in the case of Hyundai and Airbus) to develop joint solutions for specific sectors. We plan to enter into Technology License Agreements ("TLAs") to allow 3rd party Tier 1 manufacturers or world-leading companies to market the licensed Advent technology in exchange for a license fee. We intend to be a provider of MEAs and core technology via licensing rather than producing complete fuel cells for the mobility industry. Revenue from JDAs may include engineering fees during the 1-3 year initial development cycle ("JDA fees"), MEA sales, and ongoing licensing fees.

&nbsp;&nbsp;&nbsp;&nbsp;2. **MEA Sales:** We develop and manufacture the critical component of the fuel cell, the MEA. The operation of the MEA is key to the functionality and characteristics of a fuel cell system. In addition to our fuel cell system offerings, our MEA is a discrete product offering to third-party manufacturers. MEA sales are expected to be a rapidly growing market as more fuel cells are deployed globally by third parties, especially in the mobility space.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Fuel Cell Systems and Stacks:** As our JDAs mature and move to manufacturing partnerships we expect to derive revenue from fuel cell systems and stacks for portable and stationary power generation applications range from 20W to MWs. These fuel cells have applications in the data center, commercial and industrial backup, telecom tower and other critical infrastructure (e.g., 5G, 4G) power, defense (and other portable power applications), and heavy-duty mobility (automotive trucks, aviation, marine) power markets.

**Addressable Markets**

Based on the several critical advantages offered by our HT-PEM technology over batteries and LT-PEM technology, we expect to be highly competitive in numerous applications. Our HT-PEM fuel cells and MEAs are well-suited to off-grid power, portable power applications, combined heat and power, and mobility (e.g., heavy-duty automotive, aviation, mining equipment, marine, and UAV). Our goal is to partner with Tier 1 suppliers and OEMs in these new markets, focusing on fuel cell technology development, licensing, and the mass production of the next-generation MEAs. Please see the section entitled "Business" on page 68, for more information.

**Business Strategy**

Our growth strategy is focused on targeting the following four sectors:

● The stationary off-grid market is expected to be a growing market.

● The large-scale fuel cell systems market (power generation, data centers and power to gas).

● The human-portable defense, surveillance, energy infrastructure, and leisure market based on our innovative Honey Badger products.

● The development of next-generation MEA and fuel cell solutions for the mobility market.

[**Table of Contents**](#toc)

As our business ramps up to mass production, we plan to pursue a revenue model that includes fuel cell system sales, MEA sales, and hardware-technology licensing fees. Our customer relationship is split into two phases: 1) partner with OEMs to co-develop customized fuel cell systems based on our expertise in MEAs and HT-PEM fuel cell systems. During the product development phase, we earn engineering fees, and 2) once the industry and application-specific fuel cell system are qualified, we intend to license the hardware design to OEMs or Tier1s for large-scale manufacturing in exchange for license fees. In addition, we intend to manufacture and sell proprietary MEAs directly to OEMs and Tier1s. We expect high-margin licensing fees and MEA sales to become a larger component of our revenue mix over time (vs. direct fuel cell system sales) as our customers scale to mass manufacturing of fuel cells and other products.

We intend to focus future production activities in the USA and potentially in Western Macedonia, Greece, upon IPCEI funding approval. We have significant capacity in place when it comes to MEA manufacturing. Regarding fuel cell manufacturing, we expect to license the technology to large-scale manufacturers and selectively manufacture it (for defense and other promising markets directly).

**Specific Product Offerings Under Development**

&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Advent MEA:** 

The Advent MEA (also called the "Ion Pair MEA") allows HT-PEM fuel cells to operate between 80°C and 240°C with an optimal temperature of 160°C. The implications of high-temperature operation are:

&nbsp;&nbsp;&nbsp;&nbsp;1. It is ideal for eFuel-based fuel cells (e-Methanol). The HT-PEM fuel cell can work with reformate gas, impure hydrogen, and eFuels, so there is no need for new infrastructure. The existing fossil liquid fuel infrastructure, with minimal changes but without the carbon footprint, can be used for shipping, powering off-grid generators, and solving the hardest mobility electrification applications where batteries are simply not enough. (Our systems require a single-stage methanol or alternative eFuel gas reformer, typically yielding approximately 70% hydrogen and 1-2% carbon monoxide, with the remaining balance being carbon dioxide. In contrast, competing systems necessitate costly multistage reformers and palladium-based purifiers to maintain carbon monoxide levels below 10-15 ppm, a requirement for the operation of LT PEM.

&nbsp;&nbsp;&nbsp;&nbsp;2. It enables highly-efficient thermal management at the system level, making our fuel cells ideal for aviation and heavy-duty automotive. Airplanes, big trucks, excavators, and most heavy-duty applications face significant thermal management challenges. Efficient heat rejection is not possible, especially in areas of the world that keep getting hotter every year. From India to the Arizona desert, an HT-PEM fuel cell is the superior technology. By operating optimally at 160 °C, the Advent MEA is the first technology to beat the US Department of Energy heat rejection target by reaching a ΔQ/T level of 1.03 at a hot 50 °C, far below the 2025 goal of 1.45 set at only 40 °C, a target the current LT PEM technology can not reach. By running the MEA hot, you can keep the fuel cell engine cool and use smaller radiators for less drag.

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;3. It enables simple design as the balance of plant is much simpler (due to nO-water management issues). The Advent MEA does not use water as the conducting medium. It is based on a unique proprietary chemistry developed by Advent and our collaborators. "No water needed" means that the HT-PEM fuel cell system's balance of plant and, thus, the design, testing, and manufacturing is much simpler. Thus the HT-PEM fuel cell can operate at extreme humidity high or low, extreme climates (temperature (-20 °C to 55 °C)), or air quality conditions (pollution, dust). All these factors have minimal or no effect on the HT-PEM fuel cell performance, but they can be life-ending for a typical LT-PEM system.

On August 6, 2025, the Company entered into a new enhanced license agreement with TRIAD National Security for the Ion Pair technology originally developed at Los Alamos National Laboratory. In the new enhanced license, Advent acquired exclusivity to the technology in the marine, aviation, and portable power fields while retaining its non-exclusive rights in all other fields.

The license covers the following exclusive fields of use:

● **Marine:** Vessel propulsion, marine vessel auxiliary power, and dockside vessel support to provide electrical or thermal, direct or indirect (e.g., charging battery bank) power for propulsion or support of auxiliary operations such as lighting, navigation, communication, climate control, refrigeration, galley operations, hotel loads or standby power for crew and passenger accommodations.

● **Aviation:** Fuel cell power systems for aircraft propulsion, auxiliary power units (APU), and ground power units (GPU). Auxiliary servicing functions includes cabin lighting, avionics testing, galley operations, and air conditioning. Fuel cell power systems as GPUs on the airport premise grounds would support aircraft maintenance, pre-flight preparation, and auxiliary servicing functions such as cabin lighting, avionics testing, air conditioning, engine start-up, and battery charging.

● **Human Portable Power:** Fuel cell power units having a fuel-free system weight of 160 lbs. (72 Kg.) or less, providing electric power for defense, emergency, or expeditionary operations, remote sensing and field instrumentation, charging of personal electronic devices or mission-critical equipment, or off-grid backup power in austere environments and designed to be carried, worn, or transported by an individual without the aid of a vehicle.

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Advent Fuel Cell Stack** 

Following the discontinued operations in Denmark and the Serene product line, we have focused our efforts on the development of the next-generation fuel cell stack:

The goal of this effort, which commenced in 2024 Q3 and will be ongoing, is to develop the next generation of HT-PEM fuel cells based on the Advent MEA. Performance-wise, our goal is to double the power density of the fuel cell stacks in the near future vs. the previous Serene product line (that was not based on Advent MEA) and also double the lifetime. These developments can result in a total capex reduction of approximately 3x vs. previous Serene systems, thus enabling a very attractive total cost of ownership model for almost all business cases in stationary and marine power. A further improvement target of 3x vs. previous MEAs resulting from improved Advent MEA and fuel cell stack performance can bring significant competitive advantages in the most challenging markets of Aerospace and Automotive.

The Advent Fuel Cell Stack will be in the range of 7kW-10kW multiples of which can be placed in cabinets for higher power, such as 100kW to 150 kW; however, longer term Advent is designing a 50kW block, thus enabling multi-MW installations by deploying parallel cabinets. Other features under development are associated with Advent's proprietary edge-cooling technology, no methanol-water mix and metal bipolar plates use.

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Honey Badger** 

The Reformed Methanol Wearable Fuel Cell Power System, or "Honey Badger" is an offering marketed by our subsidiary Advent Technologies LLC. On June 7, 2021, the US DoD, through the U.S. Army DEVCOM Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center, with funding through the Project Manager Integrated Visual Augmentation System (PM IVAS), has entered into a contract with us to complete the MIL-STD certification of the cutting edge "Honey Badger". "Honey Badger" is placed on a soldier-worn plate carrier and provides on-the-move battery charging in the field. It has been selected by the US DoD's National Defense Center for Energy and Environment (NDCEE) to take part in its 2021 demonstration/validation program and is the only fuel cell to take part in this program. The NDCEE is a US DoD program that addresses high-priority environmental, safety, occupational health, and energy technological challenges that are demonstrated and validated at active installations for military application. The product is offered at 50W and 100W power versions, and both are in the testing and certification stages. Its core technology has completed successful field trials in Army Expeditionary Warrior Experiments and high-altitude tests in California's Sierra Nevada. Advent Technologies LLC's "Honey Badger 50" (the 50W power version) fuel cell is the only fuel cell that is part of this program that supports the U.S. Army's goal of having a technology-enabled force by 2028. On August 4, 2022, we announced the launch of our HB50 power system, a compact portable fuel cell system and quiet power supply for use in off-grid field applications such as military and rescue operations. The launch of Advent's portable power system coincided with the Company's fulfillment of its first shipment order from the U.S. Department of Defense. The HB50 power system can be fueled by biodegradable methanol, allowing near-silent generation of up to 50W of continuous power with clean emissions. Designed for covert operations, HB50 can easily power radio and satellite communications gear, remote fixed and mobile surveillance systems, laptop computers, and more general battery charging needs. HB50 is a unique technology that can save 65% of weight versus batteries over a typical 72-hour mission. The weight savings benefit increases further for longer missions. In September and December 2023, contracts totaling $2.2 million and $2.8 million, respectively, were signed with the U.S. Department of Defense. These contracts focus on integrating the Ion Pair MEA technology into HB50 and enhancing specific components/manufacturing processes. The objective is to facilitate the shift from low-prototype volume to small manufacturing volume. Advent and the US DoD plan to strengthen their collaboration by concentrating on the improved HB50 fuel cell system's manufacturing process, aiming to achieve high-volume production capacity. Multiple applications of the HB50 are expected in the future in sectors such as robotics, agriculture, drones, emergency operations, and consumer uses. HB50's unique design allows it to be used in soldier-worn configurations or operated inside a portable backpack or vehicle while charging batteries and powering soldier systems, while its thermal features allow it to operate within an ambient temperature range of -20°C to +55°C. Aside from its optimized compatibility with the Integrated Visual Augmentation System ("IVAS"), HB50 can also power devices such as high-frequency radios, such as the model 117G and B-GAN and StarLink terminals. HB50's durability allows it to be easily deployed in challenging conditions and climates while supporting mission mobility for three to seven days without the need to re-supply. Since Honey Badger's fuel cell technology can run on hydrogen or liquid fuels, the system can operate at a fraction of the weight of traditional military-grade batteries to meet the U.S. Department of Defense's continuously evolving needs for 'on-the-go' electronics needs. As military adoption and use of IVAS equipment continue to evolve, highly portable lightweight power solutions like Honey Badger and HB50 will become a mission-critical necessity.

**Intellectual Property**

Our intellectual property portfolio covers, among other things: membranes, electrodes, MEAs, and systems exploiting the unique operating characteristics of its materials. In general, our employees are party to agreements providing that all inventions, whether patented or not, made or conceived while being an Advent employee, which are related to or result from work or research that the Company performs, will remain our sole and exclusive property.

We have been issued, acquired, licensed, or applied for approximately 150 international and United States patents, with a concentration in membranes, electrodes, and MEAs, which support its product offerings. Leveraging our membrane and electrode technologies, we also have the intellectual property for lightweight stacks made through advances in bipolar plate materials, which support water-cooled systems. This results in a simpler and more compact balance-of-plant design. Our own investments in developing leading next-generation fuel cell technology are supported by being able to leverage the research and development efforts of its strategic partners.

[**Table of Contents**](#toc)

Our rights to commercialize the next-generation HT-PEM materials technology from the DoE L'Innovator Program also includes rights to a portfolio of patents supporting this advanced technology. We were selected through a highly competitive bidding process by virtue of our management team's track record in taking laboratory inventions and processes through to a fully scaled and manufactured product. We expect that this technology will reduce production costs of its MEAs significantly through a 3-fold increase in power output per unit area of the membrane and will provide a longer operating lifetime and a wider temperature operating range as well as substantially lower platinum content. We expect these advantages will enable us to reduce the cost to end-users of fuel cells and encourage wider market adoption.

**Competition**

The market for alternative fuel and energy storage systems is still in the early stages of growth and is characterized by well-established battery and LT-PEM products. We believe the principal competitive factors in the markets in which it operates include, but are not limited to, the size, weight, lifetime, durability, and total cost of ownership of these systems to the end-user. We believe that our HT-PEM technology competes with these other technologies across a number of new and existing applications in the alternative energy fuel market, especially in the realm of fuel flexibility and heat management. We believe the total addressable market opportunity could be over $72 billion by the year 2030. Please see the section entitled "Business" on page 68, for more information.

**Employees and Human Capital Resources**

Our employees are critical to our success. As of December 31, 2024, we had approximately 26 employees and 5 part-time contractors. We occasionally rely on additional independent contractors to support our operations. None of our employees are represented by a labor organization or are a party to any collective bargaining arrangement.

We strive to create a collaborative environment where our colleagues feel respected and valued. We provide our employees with competitive compensation, opportunities for equity ownership, and a robust employment package, including health care, retirement benefits, and paid time off. In addition, we regularly interact with our employees to gauge employee satisfaction and identify focus areas.

At Advent, we champion the belief that individual uniqueness enhances greatness. We uphold equal opportunities for all employees. Through rigorous protocols, we continuously work to identify and eradicate any form of harassment within our organization, fostering a fair and respectful workplace. We prioritize the value and respect of our employees, unequivocally condemning violence, discrimination, or harassment. Employees are encouraged to address any questions or concerns they may have regarding their employment or benefits with our Human Resources department. We honor and accommodate the physical or mental limitations of qualified employees with disabilities, enabling them to fulfill their job responsibilities. Furthermore, our compensation structure is determined by factors such as position, education, and experience.

**Our Risks and Challenges**

An investment in our securities involves a high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the "*Risk Factors*" section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:

[**Table of Contents**](#toc)

<u>*Risks Related to Our Operations and Business*</u>

● We have identified material weaknesses in our system of internal controls pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. If not remediated, these material weaknesses could result in material misstatements in our consolidated financial statements. We may be unable to develop, implement and maintain appropriate controls in future periods.

● If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or detect fraud. Consequently, shareholders could lose confidence in our financial reporting and this may decrease the trading price of our Common Stock.

● Our audited financial statements included a statement that there is a substantial doubt about our ability to continue as a going concern and a continuation of negative financial trends could result in our inability to continue as a going concern.

● We have incurred losses since inception and we expect that we will continue to incur losses for the foreseeable future.

● We may need to raise additional funds and these funds may not be available to us when we need them. If we cannot raise additional funds when we need them, our operations and prospects could be negatively affected.

● We continue to generate a low level of revenue from our core products.

● If we fail to manage our future growth effectively, we may not be able to market and sell our fuel cells successfully.

● Our future growth is dependent upon the market's willingness to adopt our hydrogen-powered fuel cell and membrane technology.

● If we are unable to attract and retain key employees and hire qualified management, technical and fuel cell and system engineering personnel, our ability to compete could be harmed.

● Increases in costs, disruption of supply or shortage of raw materials could harm our business.

● We are or may be subject to risks associated with strategic alliances or acquisitions.

● We are subject to substantial regulation and unfavorable changes to, or failure by us to comply with, these regulations could substantially harm our business and operating results.

● The unavailability, reduction or elimination of government and economic incentives could have a material adverse effect on our business, prospects, financial condition and operating results.

● We may not be able to obtain or agree on acceptable terms and conditions for all or a significant portion of the government grants, loans and other incentives for which we may apply in the future. As a result, our business and prospects may be adversely affected.

● Obtaining the MIL-STD certification for the Honey Badger and advancing it for U.S. army integration is subject to risks and uncertainty.

● Failure of our information technology systems could significantly disrupt the operation of our business.

[**Table of Contents**](#toc)

<u>*Risks Related to Ownership of Our Common Stock and Warrants*</u>

● Delaware law and our second amended and restated certificate of incorporation and second amended and restated bylaws contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.

● An active market for our securities may not develop, which would adversely affect the liquidity and price of our securities.

● NASDAQ may delist our securities from trading on its exchange, which could limit investors' ability to make transactions in our securities and subject us to additional trading restrictions.

● Our common stock price may change significantly and you could lose all or part of your investment as a result.

● As a public company, we are subject to additional laws, regulations and stock exchange listing standards, which impose additional costs on us and may strain our resources and divert our management's attention.

● The exercise of Warrants for our common stock would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.

<u>*Risks Related to Our Intellectual Property*</u>

● Our ability to protect our intellectual property and proprietary technology is uncertain.

● We may need to defend ourselves against patent or trademark infringement claims, which may be time-consuming and cause us to incur substantial costs.

● Our patent applications may not issue as patents, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours.

● We may not be able to protect our intellectual property rights throughout the world.

<u>*Risks Related to the Offering and the Ownership of our Common Stock*</u>

● We have broad discretion in the use of the net proceeds we receive from this offering and may not use them effectively.

● Future sales of substantial amounts of our Common Stock could adversely affect the market price of our Common Stock.

● The trading price of our Common Stock has been and is likely to continue to be highly volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control.

● If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.

● We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock.

[**Table of Contents**](#toc)

**Corporate Information**

Our principal executive offices are located at 5637 La Ribera St., Suite A, Livermore, CA 94550 and our telephone number is (925) 455-9400. We maintain a website at https://www.advent.energy. Information available on our websites is not incorporated by reference in and is not deemed a part of this prospectus.

**Implications of Being a Smaller Reporting Company**

We are a smaller reporting company as defined in the Exchange Act. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as (i) the market value of our voting and non-voting common stock held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter. Specifically, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our annual reports on Form 10-K and have reduced disclosure obligations regarding executive compensation, and if we are a smaller reporting company with less than $100 million in annual revenue, we would not be required to obtain an attestation report on internal control over financial reporting issued by our independent registered public accounting firm.

**Reverse Split**

On May 13, 2024, we effected a 1-for-30 reverse split of our outstanding Common Stock. All share and per share data set forth in this prospectus have been retroactively adjusted to reflect these reverse share split(s).

**Going Concern**

As of December 31, 2024, management and the Company's auditors, M&K CPAS, PLLC have determined there is substantial doubt about the Company's ability to continue as a going concern. The Company may need to obtain funds to support its working capital, the methods of which include, without limitation, the following:

● Equity financing;

● Other available sources of financing (including debt) from banks and other financial institutions; and

● Financial support and credit guarantee commitments from the Company's related parties.

There can be no assurance that the Company will be successful in securing sufficient funds to sustain its operations.

[**Table of Contents**](#toc)

**The Offering**

---

| | |
|:---|:---|
| **Shares of our common stock offered by the Selling Stockholder:** | 987,036 shares of common stock |
| **Shares of our common stock outstanding prior to the offering:** | 2,670,286 shares<sup>(1)</sup> |
| **Shares of common stock outstanding after giving effect to the issuance of the shares registered hereunder:** | 3,657,322 shares. The actual number of shares outstanding after the offering will vary depending upon the actual number of shares we issue and sell to Hudson Global under the Purchase Agreement after the date of this prospectus. |
| **Use of proceeds:** | We will not receive any proceeds from the resale of shares of common stock included in this prospectus by the Selling Stockholder. However, we may receive up to $52 million in aggregate gross proceeds under the Purchase Agreement from sales of common stock that we may elect to make to the Selling Stockholder pursuant to the Purchase Agreement, if any, from time to time in our sole discretion, from and after the date of this prospectus.<br>We expect to use the net proceeds that we receive from sales of our common stock to the Selling Stockholder, if any, under the Purchase Agreement to fund the operating expenses and capital expenses for product development and plan to make substantial investments over the next several years, among others, in new production equipment and warehousing, systems assembly line, MEA assembly automation, aeronautical stacks, facility expansion, new hirings and general corporate purposes, including, but not limited to, for use with respect to certain projects of our subsidiary, Advanced Energy Technologies S.A. We do not currently have specific plans or commitments with respect to the net proceeds from this offering and, accordingly, we are unable to quantify the allocations of such proceeds among various potential uses. See "Use of Proceeds" on page 41 of this prospectus. |
| **Risk Factors:** | Investing in our common stock involves a high degree of risk. See "Risk Factors" beginning on page 12 of this prospectus and in the documents incorporated by reference into this prospectus for a discussion of certain factors to consider carefully before deciding to purchase any shares of our common stock. |
| **Ticker symbols:** | "ADN" and "ADNWW" for the common stock and warrants, respectively. |

---

(1) The number of shares of common stock outstanding is based on 2,670,286 shares of common stock outstanding as of August 14, 2025 and does not include (a) 1,318,477 shares issuable upon exercise of outstanding warrants, and (b) 33,886 shares of common stock issuable upon exercise of outstanding options, 4,411 shares issuable upon vesting of outstanding restricted stock units and 530,976 shares of common stock reserved for future issuance of awards pursuant to the Company's 2021 Equity Incentive Plan. Unless otherwise indicated, this prospectus assumes no exercise of outstanding stock options or warrants and no settlement of outstanding restricted stock units.

[**Table of Contents**](#toc)

**RISK FACTORS**

*An investment in our securities involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this prospectus, before purchasing our securities. We have listed below (not necessarily in order of importance or probability of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled "Cautionary Statement Regarding Forward-Looking Statements."*

<u>**Risks Related to the Offering**</u>

***The sale or issuance of our common stock to Hudson Global may cause dilution and the sale of the shares of common stock acquired by Hudson Global, or the perception that such sales may occur, could cause the price of our common stock to fall.***

On August 14, 2025, we entered into the Purchase Agreement with Hudson Global, which provides that, upon the terms and subject to the conditions and limitations set forth therein, we have the right, but not the obligation, to sell to Hudson Global up to $52,000,000 of our common stock from time to time over the 24-month term of the Purchase Agreement. The shares of our common stock that may be issued under the Purchase Agreement may be sold by us to Hudson Global at our discretion from time to time over a 24-month period commencing after the satisfaction of certain conditions set forth in the Purchase Agreement, including that the SEC has declared effective the registration statement of which this prospectus is a part and that such registration statement remains effective. The purchase price for the shares that we may sell to Hudson Global under the Purchase Agreement will fluctuate based on the price of our common stock. Depending on market liquidity at the time, sales of such shares may cause the trading price of our common stock to fall.

Subject to the terms of the Purchase Agreement, we generally have the right to control the timing and amount of any future sales of our shares to Hudson Global. Additional sales of our common stock, if any, to Hudson Global will depend upon market conditions and other factors to be determined by us. We may ultimately decide to sell to Hudson Global all, some, or none of the additional shares of our common stock that may be available for us to sell pursuant to the Purchase Agreement. If and when we do sell shares to Hudson Global, after Hudson Global has acquired the shares, Hudson Global may resell all or some of those shares at any time or from time to time in its discretion. Therefore, sales to Hudson Global by us could result in substantial dilution to the interests of other holders of our common stock. Additionally, the sale of a substantial number of shares of our common stock to Hudson Global, or the anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect sales.

***Our management will have broad discretion over the use of the net proceeds from our sale of shares of common stock to Hudson Global, you may not agree with how we use the proceeds and the proceeds may not be invested successfully.***

Our management will have broad discretion as to the use of the net proceeds from our sale of shares of common stock to Hudson Global, and we could use them for purposes other than those contemplated at the time of commencement of this offering. Accordingly, you will be relying on the judgment of our management with regard to the use of those net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. It is possible that, pending their use, we may invest those net proceeds in a way that does not yield a favorable, or any, return for us. The failure of our management to use such funds effectively could have a material adverse effect on our business, financial condition, operating results and cash flows.

[**Table of Contents**](#toc)

***It is not possible to predict the actual number of shares we will sell under the Purchase Agreement to the Selling Stockholder, or the actual gross proceeds resulting from those sales.***

Because the purchase price per share to be paid by Hudson Global for the shares of common stock that we may elect to sell to Hudson Global under the Purchase Agreement, if any, will fluctuate based on the market prices of our common stock during the applicable period for each purchase made pursuant to the Purchase Agreement, if any, it is not possible for us to predict, as of the date of this prospectus and prior to any such sales, the number of shares of common stock that we will sell to Hudson Global under the Purchase Agreement, the purchase price per share that Hudson Global will pay for shares purchased from us under the Purchase Agreement, or the aggregate gross proceeds that we will receive from those purchases by Hudson Global under the Purchase Agreement, if any.

Moreover, although the Purchase Agreement provides that we may sell up to an aggregate of $52,000,000 worth of our common stock to Hudson Global (the "Total Commitment"), 987,036 shares of our common stock, are being registered for resale by Hudson Global under the registration statement that includes this prospectus, among which we may elect to sell to Hudson Global, in our sole discretion, from time to time from and after the Commencement Date under the Purchase Agreement up to $52,000,000 shares worth of common stock. If, after the Commencement Date, the price of our stock declines and we elect to sell to Hudson Global shares of common stock being registered for resale under this prospectus that are available for sale by us to Hudson Global under the Purchase Agreement, depending on the market prices of our common stock during the applicable period for each purchase made pursuant to the Purchase Agreement, the actual gross proceeds from the sale of all such shares may be substantially less than the $52,000,000 Total Commitment available to us under the Purchase Agreement, which could materially adversely affect our liquidity.

Based on our current stock price, if it becomes necessary for us to issue and sell to Hudson Global under the Purchase Agreement more than the 987,036 shares of our common stock in order to receive aggregate gross proceeds equal to the Total Commitment of $52,000,000 under the Purchase Agreement, we must file with the SEC one or more additional registration statements to register under the Securities Act the resale by Hudson Global of any such additional shares of our common stock we wish to sell from time to time under the Purchase Agreement, which the SEC must declare effective. Plus, we will need to obtain stockholder approval to issue shares of common stock in excess of 534,031 shares (the "Exchange Cap"), which is 19.99% of the shares of common stock outstanding immediately prior to the execution of the Purchase Agreement, under the Purchase Agreement in accordance with applicable Nasdaq rules, in each case, before we may elect to sell any additional shares of our common stock to Hudson Global under the Purchase Agreement. Any issuance and sale by us under the Purchase Agreement of a substantial amount of shares of common stock in addition to the 987,036 shares of common stock being registered for resale by Hudson Global under this prospectus could cause additional substantial dilution to our stockholders. The number of shares of our common stock ultimately offered for sale by Hudson Global is dependent upon the number of shares of common stock, if any, we ultimately sell to Hudson Global under the Purchase Agreement.

***The number of shares that may be issued to Hudson Global under the terms of the Purchase Agreement may be limited due to the requirements of the Nasdaq Capital Market.***

Under Nasdaq Listing Rule 5635(d), in the event we endeavor to issue more than 534,031 shares, we need stockholder approval for the potential issuance and sale of 20% or more of our common stock in order to issue shares of common stock to receive all the $52,000,000 Total Commitment proceeds under the Purchase Agreement. We do not currently plan to seek such stockholder approval. In the event we are required to seek stockholder approval, there is no assurance that such stockholder approval will be obtained which could adversely prevent us from receiving all the $52,000,000 Total Commitment under the Purchase Agreement.

[**Table of Contents**](#toc)

***Investors who buy shares at different times will likely pay different prices.***

Pursuant to the Purchase Agreement, we will have discretion, subject to market demand, to vary the timing, prices, and numbers of shares sold to Hudson Global. If and when we do elect to sell shares of our common stock to Hudson Global pursuant to the Purchase Agreement, after Hudson Global has acquired such shares, Hudson Global may resell all, some or none of such shares at any time or from time to time in its discretion and at different prices. As a result, investors who purchase shares from Hudson Global in this offering at different times will likely pay different prices for those shares, and so may experience different levels of dilution and in some cases substantial dilution and different outcomes in their investment results.

Investors may experience a decline in the value of the shares they purchase from Hudson Global in this offering as a result of future sales made by us to Hudson Global at prices lower than the prices such investors paid for their shares in this offering.

[**Table of Contents**](#toc)

<u>**Risks Related to Our Operations and Business**</u>

***We have identified material weaknesses in our system of internal controls pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. If not remediated, these material weaknesses could result in material misstatements in our consolidated financial statements. We may be unable to develop, implement and maintain appropriate controls in future periods.***

Our management identified material weaknesses in our internal control processes. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected and corrected on a timely basis. Management has concluded that, because of these material weaknesses, we were unable to timely file our annual report on Form 10-K for the fiscal year ended December 31, 2023, and our quarterly reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024. These deficiencies primarily relate to our lack of an effective internal control structure and sufficient financial reporting and accounting personnel due to the resignation of key control operators in early 2024 including the Company's Chief Financial Officer and then the subsequent resignation of his successor soon thereafter. As a result of the material weaknesses, the Company's management, under the supervision of the Audit Committee of the Board of Directors and with participation of the Company's Chief Executive Officer and Interim Chief Financial Officer, concluded that the Company's internal control over financial reporting was not effective as of December 31, 2023 and December 31, 2024 (including the interim periods therein).

Although we are working to remedy the ineffectiveness of the Company's internal control over financial reporting, there can be no assurance as to when the remediation plan will be fully developed and implemented. Until our remediation plan is fully implemented, our management will continue to devote significant time, attention and financial resources to these efforts. If we do not complete our remediation in a timely fashion, or at all, or if our remediation plan is inadequate, there will continue to be an increased risk that we will be unable to timely file quarterly reports on Form 10-Q and Annual Reports on Form 10-K. Further and continued determinations that there are one or more material weaknesses in the effectiveness of the Company's internal control over financial reporting could also reduce our ability to obtain financing or could increase the cost of any financing we obtain and require additional expenditures of both money and our management's time to comply with applicable requirements. For more information relating to the Company's internal control over financial reporting, the material weaknesses that existed as of December 31, 2024 and 2023, and the remediation activities undertaken by us, see Part IJ, Item 9A, "Controls and Procedures" of our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 10-K").

***If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or detect fraud. Consequently, shareholders could lose confidence in our financial reporting, and this may decrease the trading price of our common stock.***

We are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002, or SOX, and Nasdaq rules and regulations. SOX requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. We perform system and process evaluation and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting in our Annual Report on Form 10-K filing for that year, as required by Section 404 of SOX. As mentioned herein, we have identified material weaknesses in our internal control processes related to the separation of several members of our finance team. While we are currently working to remediate these material weaknesses, we cannot assure that, in the future, a material weakness or significant deficiency will not exist or otherwise be discovered. If that were to happen, it could harm our operating results and cause shareholders to lose confidence in our reported financial information. Any such loss of confidence would have a negative effect on the trading price of our securities.

[**Table of Contents**](#toc)

A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be satisfied. Internal control over financial reporting and disclosure controls and procedures are designed to give a reasonable assurance that they are effective to achieve their objectives. We cannot provide absolute assurance that all our possible future control issues will be detected. These inherent limitations include the possibility that judgments in our decision making can be faulty, and that isolated breakdowns can occur because of simple human error or mistake. The design of our system of controls is based in part upon assumptions about the likelihood of future events, and there can be no assurance that any design will succeed absolutely in achieving our stated goals under all potential future or unforeseeable conditions. Because of the inherent limitations in a cost-effective control system, misstatements due to error could occur and not be detected. This and any future failures could cause investors to lose confidence in our reported financial information, which could have a negative impact on our financial condition and stock price.

***Our audited financial statements included a statement that there is a substantial doubt about our ability to continue as a going concern and a continuation of negative financial trends could result in our inability to continue as a going concern.***

Our audited financial statements as of and for the year ended December 31, 2024, were prepared on the assumption that we would continue as a going concern. Our audited financial statements as of and for the year ended December 31, 2024, did not include any adjustments that might result from the outcome of this uncertainty. Our management has determined that there is a substantial doubt about our ability to continue as a going concern over the next twelve months based on the insufficient amount of cash and cash equivalents and net revenue from operations, as of the financial statement filing date and our independent registered public accounting firm has included an explanatory paragraph in their report on our financial statements as of and for the year ended December 31, 2024, stating that we have concluded that a substantial doubt exists about our ability to continue as a going concern. In addition to cash inflows from operations, the Company pursues additional debt and/or equity funding.

***We have incurred losses since inception and we expect that we will continue to incur losses for the foreseeable future.***

We have not been profitable since operations commenced, and we may never achieve or sustain profitability. We expect to continue to incur net losses and generate negative cash flows until we can produce sufficient revenues and gross profit to cover our costs. We may never become profitable. Even if we do achieve profitability, we may be unable to sustain or increase our profitability in the future. We will require significant additional capital to continue operations and to implement our business strategy. We cannot estimate with reasonable certainty the actual amounts necessary to successfully complete the development, manufacture and commercialization of our products and there is no certainty that we will be able to raise the necessary capital on reasonable terms or at all.

***We may be unable to adequately control the costs associated with our operations.***

We will require significant capital to develop and grow our business, including developing and manufacturing our fuel cells and building Advent's brand. We expect to incur significant expenses which will impact our profitability, including research and development expenses, raw material procurement costs, sales and distribution expenses as we build Advent's brand and market our fuel cells, and general and administrative expenses as we scale our operations. Our ability to become profitable in the future will not only depend on our ability to successfully market our fuel cells and other products and services, but also to control our costs. If we are unable to cost efficiently design, manufacture, market, sell, distribute and service our fuel cells, our margins, profitability and prospects would be materially and adversely affected.

[**Table of Contents**](#toc)

***We may need to raise additional funds and these funds may not be available to us when we need them. If we cannot raise additional funds when we need them, our operations and prospects could be negatively affected.***

The scale-up of production of our fuel cells, membranes and electrodes, together with the associated investment in our assembly line and product development activities, will consume capital. To ensure that we will have sufficient capital to fund our planned operations, we intend to raise additional funds through the issuance of equity, equity related or debt securities, or through obtaining credit from government or financial institutions. This capital will be necessary to fund our ongoing operations, continue research, development and design efforts, improve infrastructure, and introduce new technologies. We cannot be certain that additional funds will be available to us on favorable terms when required, or at all. If we cannot raise additional funds when we need them, our financial condition, results of operations, business and prospects could be materially adversely affected.

***We continue to generate a low level of revenue from our core products.***

Based on conversations with existing customers and incoming inquiries from new customers, we anticipate substantial increased demand for our MEAs and fuel cell systems from a wide range of customers as we scale up our production facilities and testing capabilities, and as the awareness our MEA capabilities become widely known in the industry. We expect both existing customers to increase order volume, and to generate substantial new orders from major organizations, with some of whom we are already in discussions regarding prospective commercial partnerships and joint development agreements. As of December 31, 2024, we were still generating a low level of revenues compared to our future projections and have not made major commercial sales to global OEM organizations.

***If we fail to manage our future growth effectively, we may not be able to market and sell our fuel cells successfully.***

Any failure to manage our growth effectively could materially and adversely affect our business, prospects, operating results and financial condition. We intend to expand our operations significantly. Our future expansion will include:

● training new personnel;

● forecasting production and revenue;

● geographic expansion;

● controlling expenses and investments in anticipation of expanded operations;

● entry into new material contracts;

● establishing or expanding design, production, licensing and sales; and

● implementing and enhancing administrative infrastructure, systems and processes.

We intend to hire additional personnel, including design and production personnel. Because our technologies are different from traditional electric vehicle battery technology, individuals with sufficient training in alternative fuel and electric vehicles may not be available to hire, and as a result, we will need to expend significant time and expense training the employees we do hire. Competition for individuals with experience designing and manufacturing hydrogen fuel cells is high, and we may not be able to attract, integrate, train, motivate or retain additional highly qualified personnel in the future. The failure to attract, integrate, train, motivate and retain these additional employees could seriously harm our business and prospects.

[**Table of Contents**](#toc)

***We will rely on complex machinery for our operations and production involves a significant degree of risk and uncertainty in terms of operational performance and costs.***

We will rely heavily on complex machinery for our operations and our production will involve a significant degree of uncertainty and risk in terms of operational performance and costs. Our membrane and fuel cell production plant will consist of large-scale machinery combining many components. The production plant components are likely to suffer unexpected malfunctions from time to time and will depend on repairs and spare parts to resume operations, which may not be available when needed. Unexpected malfunctions of the production plant components may significantly affect the intended operational efficiency. Operational performance and costs can be difficult to predict and are often influenced by factors outside of our control, such as, but not limited to, scarcity of natural resources, environmental hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining governmental permits, damages or defects in electronic systems, industrial accidents, fire, and seismic activity and natural disasters. Should operational risks materialize, it may result in the personal injury to or death of workers, the loss of production equipment, damage to manufacturing facilities, monetary losses, delays and unanticipated fluctuations in production, environmental damage, administrative fines, increased insurance costs and potential legal liabilities, all which could have a material adverse effect on our business, results of operations, cash flows, financial condition or prospects.

***Our future growth is dependent upon the market's willingness to adopt our hydrogen-powered fuel cell and membrane technology.***

Our growth is highly dependent upon the adoption by the automotive, aerospace, power and energy industries. If the market for our fuel cells and membranes does not develop at the rate or to the extent that we expect, our business, prospects, financial condition and operating results will be harmed. The market for alternative fuel and energy storage systems is still new and is characterized by rapidly changing technologies, price competition, numerous competitors, evolving government regulation and industry standards and uncertain customer demands and behaviors.

Factors that may influence the adoption of our fuel cell and membrane technology include:

● perceptions about safety, design, performance and cost, especially if adverse events or accidents occur that are linked to the quality or safety of alternative fuel or electric vehicles;

● improvements in the fuel economy of internal combustion engines and battery powered vehicles;

● the availability of service for alternative fuel vehicles;

● volatility in the cost of energy, oil, gasoline and hydrogen;

● government regulations and economic incentives promoting fuel efficiency, alternate forms of energy, and regulations banning internal combustion engines;

● the availability of tax and other governmental incentives to sell hydrogen;

● volatility in the cost of energy, oil, gasoline and hydrogen;

● government regulations and economic incentives promoting fuel efficiency, alternate forms of energy, and regulations banning internal combustion engines;

● the availability of tax and other governmental incentives to sell hydrogen;

● perceptions about and the actual cost of alternative fuel; and

● macroeconomic factors.

[**Table of Contents**](#toc)

***Future product recalls could materially adversely affect our business, prospects, operating results and financial condition.***

Any product recall in the future may result in adverse publicity, damage our brand and materially adversely affect our business, prospects, operating results and financial condition. In the future, we may voluntarily or involuntarily, initiate a recall if any of our fuel cells or membranes prove to be defective. Such recalls involve significant expense and diversion of management attention and other resources, which could adversely affect our brand image in our target markets, as well as our business, prospects, financial condition and results of operations.

***If we are unable to attract and retain key employees and hire qualified management, technical and fuel cell and system engineering personnel, our ability to compete could be harmed.***

Our success depends, in part, on our ability to retain our key personnel. The unexpected loss of or failure to retain one or more of our key employees could adversely affect our business, including our recent turnover in the finance function. Our success also depends, in part, on our continuing ability to identify, hire, attract, train and develop other highly qualified personnel.

Competition for these employees can be intense, and our ability to hire, attract and retain them depends on our ability to provide competitive compensation. We may not be able to attract, assimilate, develop or retain qualified personnel in the future, and our failure to do so could adversely affect our business, including the execution of our global business strategy. Any failure by our management team to perform as expected may have a material adverse effect on our business, prospects, financial condition and results of operations.

***Increases in costs, disruption of supply or shortage of raw materials could harm our business.***

Once we increase production, we may experience increases in the cost or a sustained interruption in the supply or shortage of raw materials. Any such increase or supply interruption could materially negatively impact our business, prospects, financial condition and operating results. We use various raw materials including precious group metals such as platinum; carbon black; polymer precursors, reactants, and solvents; as well as carbon cloth and carbon fiber paper. The prices for these raw materials fluctuate depending on market conditions and global demand and could adversely affect our business and operating results.

***We are or may be subject to risks associated with strategic alliances or acquisitions.***

We have entered into, and may in the future enter into additional, strategic alliances, including joint ventures or minority equity investments with various third parties to further our business purpose. These alliances could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the third party and increased expenses in establishing new strategic alliances, any of which may materially and adversely affect our business. We may have limited ability to monitor or control the actions of these third parties and, to the extent any of these strategic third parties suffers negative publicity or harm to their reputation from events relating to their business, we may also suffer negative publicity or harm to our reputation by virtue of our association with any such third party.

When appropriate opportunities arise, we may acquire additional assets, products, technologies or businesses that are complementary to our existing business. In addition to possible stockholder approval, we may need approvals and licenses from relevant government authorities for the acquisitions and to comply with any applicable laws and regulations, which could result in increased delay and costs, and may disrupt our business strategy if we fail to do so. Furthermore, acquisitions and the subsequent integration of new assets and businesses into our own require significant attention from our management and could result in a diversion of resources from our existing business, which in turn could have an adverse effect on our operations. Acquired assets or businesses may not generate the financial results we expect. Acquisitions could result in the use of substantial amounts of cash, potentially dilutive issuances of equity securities and exposure to potential unknown liabilities of the acquired business. Moreover, the costs of identifying and consummating acquisitions may be significant.

[**Table of Contents**](#toc)

***We may experience difficulties integrating the operations of acquired companies into our business and in realizing the expected benefits of these acquisitions.***

Acquisitions involve numerous risks, any of which could harm our business and negatively affect our financial condition and results of operations. The success of various strategic acquisitions that the Company may make in the future will depend in part on our ability to realize the anticipated business opportunities from combining their and our operations in an efficient and effective manner. These integration processes could take longer than anticipated and could result in the loss of key employees, the disruption of each company's ongoing businesses, tax costs or inefficiencies, or inconsistencies in standards, controls, information technology systems, procedures and policies, any of which could adversely affect our ability to maintain relationships with customers, employees or other third parties, or our ability to achieve the anticipated benefits of the acquisitions, and could harm our financial performance. If we are unable to successfully or timely integrate the operations of such acquired businesses with our business, we may incur unanticipated liabilities and be unable to realize the revenue growth, synergies and other anticipated benefits resulting from the acquisitions, or fully offset the costs of the acquisition, and our business, results of operations and financial condition could be materially and adversely affected.

***We are subject to substantial regulation and unfavorable changes to, or failure by us to comply with, these regulations could substantially harm our business and operating results.***

Our fuel cells and membranes are subject to substantial regulation under international, federal, state, and local laws. We expect to incur significant costs in complying with these regulations. Regulations related to alternative energy are currently evolving and we face risks associated with changes to these regulations, including but not limited to:

● increased subsidies for corn and ethanol production, which could reduce the operating cost of vehicles that use ethanol or a combination of ethanol and gasoline; and

● increased sensitivity by regulators to the needs of established automobile manufacturers with large employment bases, high fixed costs and business models based on the internal combustion engine, which could lead them to pass regulations that could reduce the compliance costs of such established manufacturers or mitigate the effects of government efforts to promote alternative fuel vehicles. Compliance with changing regulations could be burdensome, time consuming, and expensive. To the extent compliance with new regulations is cost prohibitive, our business, prospects, financial condition and operating results would be adversely affected.

***We face risks associated with our international operations, including unfavorable regulatory, political, tax and labor conditions, which could harm our business.***

We face risks associated with our international operations, including possible unfavorable regulatory, political, tax and labor conditions, which could harm our business. We have international operations in Europe that are subject to the legal, political, regulatory and social requirements and economic conditions in these jurisdictions. We are subject to a number of risks associated with international business activities that may increase our costs, impact our ability to sell our fuel cells and membranes and require significant management attention. These risks include:

● difficulty in staffing and managing foreign operations;

● foreign government taxes, regulations and permit requirements, including foreign taxes that we may not be able to offset against taxes imposed upon us in the U.S., and foreign tax and other laws limiting our ability to repatriate funds to the U.S.;

● fluctuations in foreign currency exchange rates and interest rates;

● increased inflation rates and cost of goods;

[**Table of Contents**](#toc)

● U.S. and foreign government trade restrictions, tariffs and price or exchange controls;

● foreign labor laws, regulations and restrictions;

● changes in diplomatic and trade relationships;

● political instability, natural disasters, war, or events of terrorism;

● the escalation or continuation of armed conflict, hostilities or economic sanctions between countries or regions, including the current conflict between Russia and Ukraine;

● the strength of international economies and economic relations between countries or regions; and

● economic uncertainties and potential disruptions include a slow-down in the general economy.

If we fail to successfully address these risks, our business, prospects, operating results and financial condition could be materially harmed.

***The unavailability, reduction or elimination of government and economic incentives could have a material adverse effect on our business, prospects, financial condition and operating results.***

Any reduction, elimination or discriminatory application of government subsidies and economic incentives because of policy changes, the reduced need for such subsidies and incentives due to the perceived success of alternative energies or other reasons may result in the diminished competitiveness of the alternative fuel industry generally. This could materially and adversely affect the growth of the alternative fuel automotive markets and our business, prospects, financial condition and operating results.

While certain tax credits and other incentives for alternative energy production and alternative fuel vehicles have been available in the past, there is no guarantee these programs will be available in the future. If current tax incentives are not available in the future, our financial position could be harmed.

***We may not be able to obtain or agree on acceptable terms and conditions for all or a significant portion of the government grants, loans and other incentives for which we may apply in the future. As a result, our business and prospects may be adversely affected.***

We anticipate continuing to apply for federal and state grants, loans and tax incentives under government programs designed to stimulate the economy and support the production of alternative fuel vehicles and related technologies. We anticipate that in the future there will be new opportunities for us to apply for grants, loans and other incentives from the U.S., state and foreign governments. Our ability to obtain funds or incentives from government sources is subject to the availability of funds under applicable government programs and approval of our applications to participate in such programs. The application process for these funds and other incentives will likely be highly competitive. We cannot assure you that we will be successful in obtaining any of these additional grants, loans and other incentives. If we are not successful in obtaining any of these additional incentives and we are unable to find alternative sources of funding to meet our planned capital needs, our business and prospects could be materially adversely affected.

***Certain members of our management team have limited experience managing a public company.***

Certain members of our management team have limited experience managing a publicly traded company, interacting with public company investors and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently manage the requirements of being a public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and the scrutiny of securities analysts and investors. These new obligations and constituents will require significant attention from our management team and could divert their attention away from the day-to-day management of our business, which could materially and adversely affect our business, financial condition, operating results, cash flows and prospects.

[**Table of Contents**](#toc)

***Obtaining the MIL-STD certification for the Honey Badger and advancing it for U.S. army integration is subject to risks and uncertainty.***

Obtaining the MIL-STD certification for the Honey Badger and advancing it for U.S. army integration is subject to risks and uncertainty and may not be completed on the timeline we expect, or at all.

***Cybersecurity risks and attacks, security incidents, and data breaches could compromise our intellectual property or other proprietary information, could disrupt our electronic infrastructure, operations and manufacturing, and could impact our competitive position, reputation, results of operations, financial condition, and cash flows.***

We rely upon our information technology and electronic infrastructure and its capacity, reliability, and security in connection with various and critical aspects of our business activities. We also rely on our ability to expand and continually update these technologies and related infrastructure in response to the changing needs of our business and the risks presented. We face challenges related to supporting our older technologies and implementing necessary upgrades and the hardening of current technologies. In addition, some of these technologies are managed by third-party service providers and are not under our direct control. If we experience a problem with a critical technology, including during upgrades or new technology implementations, any resulting disruptions could have an adverse effect on our business operations and our performance.

Our business operations rely upon our electronic infrastructure and that of our third-party vendors, including to handle information and data such as intellectual property, personal information, protected information, financial information and other confidential and proprietary information related to our business and our employees, prospects, customers, suppliers and other business partners. While we maintain certain administrative, technical, and physical safeguards and take preventive and proactive measures to combat known and unknown cybersecurity risks, our work and processes to build out and mature our electronic infrastructure, controls, policies and safeguards is ongoing. There is no assurance that our current controls and our ongoing efforts will be sufficient to eliminate security risks.

Cyberattacks are increasing in frequency and evolving in nature. We and our third-party providers are at risk of attack through use of increasingly sophisticated methods, including malware, phishing, ransomware, and the deployment of technologies to find and exploit vulnerabilities. Like many organizations, we have been targeted by phishing attacks, for example. Our electronic infrastructure, and information technology systems maintained by our third-party providers, have been in the past, and may be in the future, subjected to attempts to gain unauthorized access, disable, destroy, maliciously control or cause other business disruptions. In some cases, it is difficult to anticipate or to detect immediately such incidents and any damage caused. While these types of incidents have not had a material impact on our business to-date, future incidents involving access to or improper use of our systems, or those of our third-parties, could compromise confidential, proprietary or otherwise sensitive information.

In addition, cyberattacks could negatively impact our reputation and our competitive position and could result in litigation with third parties, regulatory action, significant remediation costs, and loss of business and customers relationships, any of which could adversely impact our business, our financial condition, and our operating results. Although we maintain some insurance coverage, we cannot be certain that coverage would apply to cyber risks, that it may be adequate for liabilities incurred, or that any insurer will not accept or deny coverage of future claims.

We may experience problems with the operation of our electronic infrastructure or the technology systems of third parties on which we rely, as well as the development and deployment of new electronic infrastructure, that could adversely affect, or even disrupt, all or a portion of our operations until resolved. In addition, as a result of the COVID-19 pandemic a large percentage of our salaried employees continue to work remotely full or part-time. This remote working environment may pose a heightened risk for security breaches or other disruptions of our information technology environment.

[**Table of Contents**](#toc)

***Our global operations are subject to data privacy laws and regulations that impose significant compliance costs and create reputational and legal risk.***

Due to the international scope of our operations, we may be subject to a complex system of regulatory requirements regarding data privacy, such as the European Union General Data Protection Regulation and California's Consumer Privacy Act and its amendments.

Our numerous foreign operations are governed by laws, rules and business practices that differ from those of the U.S. We cannot predict now our future data privacy risks or the nature, scope or effect of future regulatory requirements to which our operations might be subject or the manner in which existing laws might be administered or interpreted.

***Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance by financial institutions or transactional counterparties, could adversely affect the Company's current and projected business operations and its financial condition and results of operations.***

Actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems. For example, on March 10, 2023, Silicon Valley Bank (SVB) was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Similarly, on March 12, 2023, Signature Bank and Silvergate Capital Corp. were each swept into receivership. Although a statement by the Department of the Treasury, the Federal Reserve and the FDIC indicated that all depositors of SVB would have access to all of their money after only one business day of closure, including funds held in uninsured deposit accounts, borrowers under credit agreements, letters of credit and certain other financial instruments with SVB, Signature Bank or any other financial institution that is placed into receivership by the FDIC may be unable to access undrawn amounts thereunder. Although we are not a borrower or party to any such instruments with SVB, Signature or any other financial institution currently in receivership, if any of our lenders or counterparties to any such instruments were to be placed into receivership, we may be unable to access such funds. In addition, if any of our customers, suppliers or other parties with whom we conduct business are unable to access funds pursuant to such instruments or lending arrangements with such a financial institution, such parties' ability to pay their obligations to us or to enter into new commercial arrangements requiring additional payments to us could be adversely affected. In this regard, counterparties to SVB credit agreements and arrangements, and third parties such as beneficiaries of letters of credit (among others), may experience direct impacts from the closure of SVB and uncertainty remains over liquidity concerns in the broader financial services industry.

***Failure of our information technology systems could significantly disrupt the operation of our business.***

Our business increasingly depends on the use of information technologies, which means that certain key areas such as research and development, production and sales are to a large extent dependent on our information systems or those of third-party providers. Our ability to execute our business plan and to comply with regulatory requirements with respect to data control and data integrity, depends, in part, on the continued and uninterrupted performance of our information technology systems, or IT systems and the IT systems supplied by third-party service providers. These systems are vulnerable to damage from a variety of sources, including telecommunications or network failures, malicious human acts and natural disasters. Moreover, despite network security and backup measures, some of our servers are potentially vulnerable to physical or electronic break-ins, computer viruses and similar disruptive problems. Despite the precautionary measures we and our third-party service providers have taken to prevent unanticipated problems that could affect our IT systems, sustained or repeated system failures or problems arising during the upgrade of any of our IT systems that interrupt our ability to generate and maintain data, and in particular to operate our proprietary technology platform, could adversely affect our ability to operate our business.

[**Table of Contents**](#toc)

<u>**Risks Related to Ownership of Our Common Stock and Warrants**</u>

***NASDAQ may delist our securities from trading on its exchange, which could limit investors' ability to make transactions in our securities and subject us to additional trading restrictions.***

Our securities, including common stocks and warrants, are currently listed on the Nasdaq Capital Market. However, we cannot assure you that our securities will continue to be listed on the Nasdaq Capital Market in the future. In order to continue listing our securities on the Nasdaq Capital Market, we must maintain certain financial, distribution and stock price levels. Generally, we must maintain a minimum amount in stockholders' equity (generally $2,500,000) and a minimum number of holders of our securities (generally 300 public holders). Additionally, we are required to demonstrate compliance with other Nasdaq's continued listing requirements in order to continue to maintain the listing of our securities on the Nasdaq Capital Market.

In the past, we have received deficiency letters from Nasdaq regarding our failure to satisfy continued listing requirements and are currently not in compliance with all such requirements. On May 24, 2023, the Company received a letter from the Listing Qualifications Staff (the "Staff") of Nasdaq Stock Market LLC ("Nasdaq") indicating that the bid price of the Common Stock had closed below $1.00 per share for 30 consecutive business days and, as a result, the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), which sets forth the minimum bid price requirement for continued listing on the Nasdaq Capital Market (the "Minimum Bid Requirement").

On May 13, 2024, the Company effectuated the Reverse Stock Split, and our Common Stock began trading on a split-adjusted basis on the Nasdaq Capital Market at the opening of trading on May 14, 2024, in an effort to comply with the Minimum Bid Requirement. The Company has since received confirmation from Nasdaq that it has met the Minimum Bid Requirement.

On April 17, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic reporting requirements for continued listing set forth Nasdaq Listing Rule 5250(c)(1) (the "Timely Report Requirement") due to the fact that the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 10-K") was not filed by the required due date of March 31, 2024 (the "2023 10-K Delinquency Letter"). Additionally, on May 24, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the "First Quarter 10-Q") by the required due date of May 14, 2024 (the "Q1 10-Q Delinquency Letter"). Further, on November 22, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with the Timely Reporting Requirement due to the fact that the Company did not file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the "Third Quarter 10-Q") by the required due date of November 20, 2024 (the "Q2 10-Q Delinquency Letter"). On April 16, 2025, the Company also received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 10-K") by the required due date of April 16, 2025. Lastly, on May 22, 2025, the Company received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 (the "Q1 2025 10-Q") by the required due date of May 15, 2025. The Company submitted compliance plans to Nasdaq setting forth its plan to file 2023 10-K, the First Quarter 10-Q, the Third Quarter 10-Q, the 2024 10-K and the Q1 2025 10-Q. The Company filed its 2023 10-K on August 13, 2024, its First Quarter 10-Q on October 15, 2024, its Third Quarter 10-Q on December 27, 2024, its 2024 10-K on June 6, 2025 and its Q1 2025 10-Q on June 30, 2025.

[**Table of Contents**](#toc)

Additionally, on October 18, 2024, we received a letter from Nasdaq notifying the Company that since the Company's Form 10-Q for the period ended June 30, 2024, reported stockholders' equity of ($2,879,000), and as of the date of such letter the Company did not meet the alternatives of market value of listed securities or net income from continuing operations, the Company is no longer in compliance with Nasdaq's Listing Rule requiring the Company to maintain a minimum of $2,500,000 in stockholders' equity for continued listing. The Company submitted a compliance plan and supplement to Nasdaq setting forth its plan to increase its stockholders' equity, and on April 16, 2025, received a letter from Nasdaq confirming that the Company had regained compliance with the minimum stockholders' equity rule for continued listing.

We cannot assure you that we will be able to meet Nasdaq's continued listing requirements at all times. If Nasdaq delists our securities from trading on its exchange and we are not able to list our securities on another national securities exchange, we expect our securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including:

● a limited availability of market quotations for its securities;

● reduced liquidity for its securities;

● a determination that our common stock is a "penny stock" which will require brokers trading in the common stock to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;

● a limited amount of news and analyst coverage; and

● a decreased ability to issue additional securities or obtain additional financing in the future.

***If our common stock were delisted and determined to be a "penny stock," a broker-dealer may find it more difficult to trade our common stock and an investor may find it more difficult to acquire or dispose of our common stock in the secondary market.***

If our common stock were removed from listing with The Nasdaq Capital Market, it may be subject to the so-called "penny stock" rules. The SEC has adopted regulations that define a "penny stock" to be any equity security that has a market price per share of less than $5.00, subject to certain exceptions, such as any securities listed on a national securities exchange, which is the exception on which we currently rely. For any transaction involving a "penny stock," unless exempt, the rules impose additional sales practice requirements on broker-dealers, subject to certain exceptions. If our common stock were delisted and determined to be a "penny stock," a broker-dealer may find it more difficult to trade our common stock and an investor may find it more difficult to acquire or dispose of our common stock on the secondary market.

***Delaware law and our second amended and restated certificate of incorporation and second amended and restated bylaws contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.***

Our second amended and restated certificate of incorporation and our amended and restated bylaws, and the Delaware General Corporation Law ("DGCL"), contain provisions that could have the effect of rendering more difficult, delaying, or preventing an acquisition deemed undesirable by our board of directors and therefore depress the trading price of our common stock. These provisions could also make it difficult for stockholders to take certain actions, including electing directors or taking other corporate actions, including effecting changes in our management. Among other things, our second amended and restated certificate of incorporation and amended and restated bylaws include provisions regarding:

● a classified board of directors with three-year staggered terms, which could delay the ability of stockholders to change the membership of a majority of our board of directors;

[**Table of Contents**](#toc)

● the ability of our board of directors to issue shares of preferred stock, including "blank check" preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;

● the limitation of the liability of, and the indemnification of, our directors and officers;

● the requirement that directors may only be removed from our board of directors for cause;

● a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of stockholders and could delay the ability of stockholders to force consideration of a stockholder proposal or to take action, including the removal of directors;

● the requirement that a special meeting of stockholders may be called only by our board of directors, the chairperson of our board of directors, our chief executive officer or our president (in the absence of a chief executive officer), which could delay the ability of stockholders to force consideration of a proposal or to take action, including the removal of directors;

● controlling the procedures for the conduct and scheduling of board of directors and stockholder meetings;

● the requirement for the affirmative vote of holders of at least 65% of the voting power of all of the then outstanding shares of the voting stock, voting together as a single class, to amend, alter, change or repeal any provision of the second amended and restated certificate of incorporation or amended and restated bylaws, which could preclude stockholders from bringing matters before annual or special meetings of stockholders and delay changes in our board of directors and also may inhibit the ability of an acquirer to effect such amendments to facilitate an unsolicited takeover attempt;

● the ability of our board of directors to amend the amended and restated bylaws, which may allow our board of directors to take additional actions to prevent an unsolicited takeover and inhibit the ability of an acquirer to amend the amended and restated bylaws to facilitate an unsolicited takeover attempt; and

● advance notice procedures with which stockholders must comply to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which could preclude stockholders from bringing matters before annual or special meetings of stockholders and delay changes in our board of directors and also may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of surviving entity.

These provisions, alone or together, could delay or prevent hostile takeovers and changes in control or changes in our board of directors or management.

In addition, as a Delaware corporation, we will be subject to provisions of Delaware law, including Section 203 of the DGCL, which may generally prohibit certain stockholders holding 15% or more of our outstanding capital stock from engaging in certain business combinations with us for a specified period of time unless certain conditions are met.

Any provision of the second amended and restated certificate of incorporation, amended and restated bylaws or Delaware law that has the effect of delaying or preventing a change in control could limit the opportunity for stockholders to receive a premium for their shares of our capital stock and could also affect the price that some investors are willing to pay for our common stock.

[**Table of Contents**](#toc)

***Our second amended and restated certificate of incorporation designates a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, each of which could limit the ability of our stockholders to choose the judicial forum for disputes with us or our directors, officers, or employees.***

Any person or entity purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to this provision. This exclusive-forum provision may limit a stockholder's ability to bring a claim in a judicial forum of its choosing for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers, and other employees. If a court were to find the exclusive-forum provision be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving the dispute in other jurisdictions, which could harm its results of operations.

***An active market for our securities may not develop, which would adversely affect the liquidity and price of our securities.***

The price of our securities may vary significantly due to factors specific to our business as well as to general market or economic conditions. Furthermore, an active trading market for our securities may never develop or, if developed, it may not be sustained. You may be unable to sell your securities unless a market can be established and sustained.

***Our common stock price may change significantly and you could lose all or part of your investment as a result.***

The trading price of our common stock is likely to be volatile. The stock market recently has experienced extreme volatility. This volatility often has been unrelated or disproportionate to the operating performance of particular companies. You may not be able to resell your shares of our common stock at an attractive price due to a number of factors such as those listed in "Risk Factors Relating to Our Operations and Business" and the following:

● results of operations that vary from the expectations of securities analysts and investors;

[**Table of Contents**](#toc)

● results of operations that vary from our competitors;

● changes in expectations as to our future financial performance, including financial estimates and investment recommendations by securities analysts and investors;

● declines in the market prices of stocks generally;

● strategic actions by us or our competitors;

● announcements by us or our competitors of significant contracts, acquisitions, joint ventures, other strategic relationships or capital commitments;

● any significant change in our management;

● changes in general economic or market conditions or trends in our industry or markets;

● changes in business or regulatory conditions, including new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

● future sales of our common stock or other securities;

● investor perceptions of the investment opportunity associated with our common stock relative to other investment alternatives;

● the public's response to press releases or other public announcements by us or third parties, including our filings with the SEC;

● litigation involving us, our industry, or both, or investigations by regulators into our operations or those of our competitors;

● guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this guidance;

● the development and sustainability of an active trading market for our common stock;

● actions by institutional or activist stockholders;

● changes in accounting standards, policies, guidelines, interpretations or principles; and

● other events or factors, including those resulting from pandemics, natural disasters, war, acts of terrorism or responses to these events.

These broad market and industry fluctuations may adversely affect the market price of our common stock, regardless of our actual operating performance. In addition, price volatility may be greater if the public float and trading volume of our common stock is low.

In the past, following periods of market volatility, stockholders have instituted securities class action litigation. If we were involved in securities litigation, it could have a substantial cost and divert resources and the attention of executive management from our business regardless of the outcome of such litigation.

[**Table of Contents**](#toc)

***Because there are no current plans to pay cash dividends on our common stock for the foreseeable future, you may not receive any return on investment unless you sell your common stock at a price greater than what you paid for it.***

We intend to retain future earnings, if any, for future operations, expansion and debt repayment and there are no current plans to pay any cash dividends for the foreseeable future. The declaration, amount and payment of any future dividends on shares of common stock will be at the sole discretion of the board of directors. The board of directors may take into account general and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, implications of the payment of dividends by us to our stockholders or by its subsidiaries to it and such other factors as the board of directors may deem relevant. As a result, you may not receive any return on an investment in our common stock unless you sell your common stock for a price greater than that which you paid for it.

***Our stockholders may experience dilution in the future.***

The percentage of shares of our common stock owned by current stockholders may be diluted in the future because of equity issuances for acquisitions, capital market transactions or otherwise, including, without limitation, equity awards that we may grant to its directors, officers and employees, or exercise of warrants. Such issuances may have a dilutive effect on our earnings per share, which could adversely affect the market price of our common stock.

***If securities or industry analysts do not publish research or reports about our business, if they change their recommendations regarding our common stock or if our operating results do not meet their expectations, our common stock price and trading volume could decline.***

The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our businesses. If no securities or industry analysts commence coverage of us or our business, the trading price for our common stock could be negatively impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who cover us downgrade our securities or publish unfavorable research about our businesses, or if our operating results do not meet analyst expectations, the trading price of our common stock would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our common stock could decrease, which might cause our common stock price and trading volume to decline.

***As a public company, we are subject to additional laws, regulations and stock exchange listing standards, which impose additional costs on us and may strain our resources and divert our management's attention.***

Advent previously operated on a private basis and following the Business Combination it became a wholly-owned subsidiary of a public company that is subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the listing requirements of Nasdaq and other applicable securities laws and regulations. Compliance with these laws and regulations will increase our legal and financial compliance costs and make some activities more difficult, time-consuming or costly, which may strain our resources or divert management's attention.

***We may redeem unexpired public warrants prior to their exercise at a time that is disadvantageous for warrant holders.***

We will have the ability to redeem outstanding public warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant, provided that the last reported sales price of our common stock equals or exceeds $540.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 trading-day period ending on the third trading day prior to the date we send the notice of redemption to the warrant holders. If and when the public warrants become redeemable by us, we may exercise our redemption right when the registration statement to which this prospectus forms a part comes into effect with respect to the shares of common stock underlying such warrants. Redemption of the outstanding public warrants could force you to: (1) exercise your warrants and pay the related exercise price at a time when it may be disadvantageous for you to do so; (2) sell your warrants at the then-current market price when you might otherwise wish to hold your warrants; or (3) accept the nominal redemption price which, at the time the outstanding public warrants are called for redemption, is likely to be substantially less than the market value of your warrants. None of the placement warrants or working capital warrants will be redeemable by us for cash so long as they are held by our sponsor or its permitted transferees.

[**Table of Contents**](#toc)

***Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial condition and results of operations.***

Accounting principles and related pronouncements, implementation guidelines and interpretations we apply to a wide range of matters that are relevant to our business, including, but not limited to, revenue recognition, leases and stock-based compensation, are complex and involve subjective assumptions, estimates and judgments by our management. Changes in accounting pronouncements or their interpretation or changes in underlying assumptions, estimates or judgments by our management could significantly change our reported or expected financial performance.

***The exercise of Warrants for our common stock would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders.***

As of August 14, 2025, we had Warrants to purchase an aggregate of 878,985 shares of our common stock outstanding. To the extent remaining Warrants are exercised, additional shares of common stock will be issued, which will result in dilution to the then-existing holders of common stock and increase the number of shares eligible for resale in the public market. Sales of substantial numbers of such shares in the public market or the fact that such Warrants may be exercised could adversely affect the market price of our common stock.

***The valuation of our Warrants could increase the volatility in our net income (loss) in our consolidated statements of earnings (loss).***

The change in fair value of our Warrants is the result of changes in stock price and Warrants outstanding at each reporting period. The Change in Fair Value of Warrant Liabilities represents the mark-to-market fair value adjustments to the outstanding Warrants issued in connection with the initial public offering of ACMI and the concurrent private placement. Significant changes in our stock price or number of Warrants outstanding may adversely affect our net income (loss) in our consolidated statements of earnings (loss).

***Changes in US trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business and results of operations.***

The US government has indicated its intent to adopt a new approach to trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements. It has also initiated or is considering the imposition of tariffs on certain foreign goods. Changes in US trade policy could result in one or more U.S. trading partners adopting responsive trade policies making it more difficult or costly for us to export our products to those countries. These measures could also result in increased costs for goods imported into the United States. This in turn could require us to increase prices to our customers which may reduce demand, or, if we are unable to increase prices, result in lowering our margin on products sold.

We cannot predict future trade policy or the terms of any renegotiated trade agreements and their impact on our business. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the US economy, which in turn could adversely impact our business, financial condition and results of operations.

[**Table of Contents**](#toc)

<u>**Risks Related to Our Intellectual Property**</u>

***Our ability to protect our intellectual property and proprietary technology is uncertain.***

We rely primarily on patent, copyright, trademark and trade secret laws, as well as confidentiality and non- disclosure agreements and other methods, to protect our proprietary technologies and know-how. As of October 11, 2024, we owned 108 issued patents (38 domestic and 70 foreign), 35 pending patent applications (13 domestic and 22 foreign), 45 registered trademarks (5 domestic and 40 foreign) and 8 pending trademark applications (3 domestic and 5 foreign).

We have applied for patent protection relating to certain existing and proposed products and processes. While we generally apply for patents in those countries where we intend to make, have made, use, or sell patented products, we may not accurately predict all the countries where patent protection will ultimately be desirable. If we fail to timely file a patent application in any such country, we may be precluded from doing so later. Furthermore, we cannot assure you that any of our patent applications will be approved. The rights granted to us under our patents, including prospective rights sought in our pending patent applications, may not be meaningful or provide us with any commercial advantage. In addition, those rights could be opposed, contested, or circumvented by our competitors or be declared invalid or unenforceable in judicial or administrative proceedings. The failure of our patents to adequately protect our technology might make it easier for our competitors to offer the same or similar products or technologies. Competitors may be able to design around our patents or develop products that provide outcomes which are comparable to ours without infringing on our intellectual property rights. Due to differences between foreign and U.S. patent laws, our patented intellectual property rights may not receive the same degree of protection in foreign countries as they would in the United States. Even if patents are granted outside the United States, effective enforcement in those countries may not be available. Since most of our issued patents are for the United States only, we lack a corresponding scope of patent protection in other countries. In countries where we do not have significant patent protection, we may not be able to stop a competitor from marketing products in such countries that are the same as or similar to our product.

We plan to rely on our trademarks, trade names and brand names to distinguish our product from the products of our competitors and have registered or applied to register many of these trademarks. We cannot assure you that our trademark applications will be approved. Third parties may also oppose our trademark applications, or otherwise challenge our use of the trademarks. In the event that our trademarks are successfully challenged, we could be forced to rebrand our product, which could result in loss of brand recognition, and could require us to devote resources to advertising and marketing new brands. Further, we cannot assure you that competitors will not infringe upon our trademarks, or that we will have adequate resources to enforce our trademarks.

We also rely on trade secrets, know-how, and technology, which are not protected by patents, to maintain our competitive position. We try to protect this information by entering into confidentiality and intellectual property assignment agreements with parties that develop intellectual property for us and/or have access to it, such as our officers, employees, consultants, contract manufacturers and advisors. However, in the event of unauthorized use or disclosure or other breaches of such agreements, we may not be provided with meaningful protection for our trade secrets or other proprietary information. In addition, our trade secrets may otherwise become known or be independently discovered by competitors. To the extent that our commercial partners, collaborators, employees, and consultants use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions. If any of our trade secrets, know-how or other technologies not protected by a patent were to be disclosed to or independently developed by a competitor, our business, financial condition, and results of operations could be materially adversely affected.

In the future, we may enter into licensing agreements to maintain our competitive position. If we enter into in-bound intellectual property license agreements, we may not be able to fully protect the licensed intellectual property rights or maintain those licenses. Future licensors could retain the right to prosecute and defend the intellectual property rights licensed to us, in which case we would depend on the ability of our licensors to obtain, maintain, and enforce intellectual property protection for the licensed intellectual property. These licensors may determine not to pursue litigation against other companies or may pursue such litigation less aggressively than we would. Further, entering into such license agreements could impose various diligence, commercialization, royalty, or other obligations on us. Future licensors may allege that we have breached our license agreement with them, and accordingly seek damages or to terminate our license, which could adversely affect our competitive business position and harm our business prospects.

[**Table of Contents**](#toc)

If a competitor infringes upon one of our patents, trademarks, or other intellectual property rights, enforcing those patents, trademarks, and other rights may be difficult and time consuming. Even if successful, litigation to defend our patents and trademarks against challenges or to enforce our intellectual property rights could be expensive and time consuming and could divert management's attention from managing our business. Moreover, we may not have sufficient resources to defend our patents or trademarks against challenges or to enforce our intellectual property rights. In addition, if third parties infringe any intellectual property that is not material to the products that we make, have made, use, or sell, it may be impractical for us to enforce this intellectual property against those third parties.

***We may need to defend ourselves against patent or trademark infringement claims, which may be time-consuming and cause us to incur substantial costs.***

Companies, organizations or individuals, including our competitors, may own or obtain patents, trademarks or other proprietary rights that would prevent or limit our ability to make, use, develop, license or sell our fuel cell and membrane technologies, which could make it more difficult for us to operate our business. We may receive inquiries from patent or trademark owners inquiring whether we infringe their proprietary rights. Companies owning patents or other intellectual property rights relating to fuel cells may allege infringement of such rights. In response to a determination that we have infringed upon a third party's intellectual property rights, we may be required to do one or more of the following:

● cease development, sales, license or use of fuel cells or membranes that incorporate the asserted intellectual property;

● pay substantial damages;

● obtain a license from the owner of the asserted intellectual property right, which license may not be available on reasonable terms or at all; or

● redesign one or more aspects or systems of our fuel cells or membranes.

A successful claim of infringement against us could materially adversely affect our business, prospects, operating results and financial condition. Any litigation or claims, whether valid or invalid, could result in substantial costs and diversion of resources.

We also plan to license patents and other intellectual property from third parties and we may face claims that our use of this in-licensed technology infringes the intellectual property rights of others. In such cases, we will seek indemnification from our licensors. However, our rights to indemnification may be unavailable or insufficient to cover our costs and losses.

***Our business may be adversely affected if we are unable to protect our intellectual property rights from unauthorized use by third parties.***

Failure to adequately protect our intellectual property rights could result in our competitors offering similar products, potentially resulting in the loss of some of our competitive advantage and a decrease in our revenue, which would adversely affect our business, prospects, financial condition and operating results. Our success depends, at least in part, on our ability to protect our core technology and intellectual property. To accomplish this, we will rely on a combination of patents, trade secrets (including know-how), employee and third-party nondisclosure agreements, copyright, trademarks, intellectual property licenses and other contractual rights to establish and protect our rights in our technology.

The protection of our intellectual property rights will be important to our future business opportunities. However, the measures we take to protect our intellectual property from unauthorized use by others may not be effective for various reasons, including the following:

● any patent applications we submit may not result in the issuance of patents;

[**Table of Contents**](#toc)

● the scope of our issued patents may not be broad enough to protect our proprietary rights;

● our issued patents may be challenged and/or invalidated by our competitors;

● the costs associated with enforcing patents, confidentiality and invention agreements or other intellectual property rights may make aggressive enforcement impracticable;

● current and future competitors may circumvent our patents; and

● our in-licensed patents may be invalidated, or the owners of these patents may breach our license arrangements.

Patent, trademark, and trade secret laws vary significantly throughout the world. Some foreign countries do not protect intellectual property rights to the same extent as do the laws of the U.S. Further, policing the unauthorized use of our intellectual property in foreign jurisdictions may be difficult. Therefore, our intellectual property rights may not be as strong or as easily enforced outside of the U.S.

***Our patent applications may not issue as patents, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours.***

We cannot be certain that we are the first inventor of the subject matter to which we have filed a particular patent application, or if we are the first party to file such a patent application. If another party has filed a patent application to the same subject matter as we have, we may not be entitled to the protection sought by the patent application. Further, the scope of protection of issued patent claims is often difficult to determine. As a result, we cannot be certain that the patent applications that we file will issue, or that our issued patents will afford protection against competitors with similar technology. In addition, our competitors may design around our issued patents, which may adversely affect our business, prospects, financial condition or operating results.

***We may not be able to protect our intellectual property rights throughout the world.***

Filing, prosecuting, and defending patents on product candidates in all countries throughout the world would be prohibitively expensive, and our intellectual property rights in some countries outside the U.S. can be less extensive than those in the U.S. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the U.S. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and may also export otherwise infringing products to territories where we have patent protection, but enforcement is not as strong as that in the U.S. These products may compete with our product and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets and other intellectual property protection, particularly those relating to emerging technologies, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.

[**Table of Contents**](#toc)

***If we are unable to protect the confidentiality of our trade secrets, our business and competitive position could be harmed.***

In addition to patent protection, we also rely upon copyright and trade secret protection, as well as non-disclosure agreements and invention assignment agreements with our employees, consultants, contract manufacturers and third parties, to protect our confidential and proprietary information. In addition to contractual measures, we try to protect the confidential nature of our proprietary information using commonly accepted physical and technological security measures. Such measures may not, for example, in the case of misappropriation of a trade secret by an employee or third party with authorized access, provide adequate protection for our proprietary information. Our security measures may not prevent an employee or consultant from misappropriating our trade secrets and providing them to a competitor, and recourse we take against such misconduct may not provide an adequate remedy to protect our interests fully. Unauthorized parties may also attempt to copy or reverse engineer certain aspects of our product that we consider proprietary. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret can be difficult, expensive, and time-consuming, and the outcome is unpredictable. Even though we use commonly accepted security measures, trade secret violations are often a matter of state law, and the criteria for protection of trade secrets can vary among different jurisdictions. In addition, trade secrets may be independently developed by others in a manner that could prevent legal recourse by us. If any of our confidential or proprietary information, such as our trade secrets, were to be disclosed or misappropriated, or if any such information was independently developed by a competitor, our business and competitive position could be harmed.

***Third parties may assert that our employees or consultants have wrongfully used or disclosed confidential information or misappropriated trade secrets.***

We employ individuals who previously worked with other companies, including our competitors or potential competitors. Although we try to ensure that our employees and consultants do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that we or our employees, consultants or independent contractors have inadvertently or otherwise used or disclosed intellectual property, including trade secrets or other proprietary information, of a former employer or other third party. Litigation may be necessary to defend against these claims. If we fail in defending any such claims or settling those claims, in addition to paying monetary damages or a settlement payment, we may lose valuable intellectual property rights or personnel. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

[**Table of Contents**](#toc)

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus and the information incorporated herein by reference may constitute "forward-looking statements", which reflect our current views with respect to, among other things, our operations and financial performance. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, business strategy and plans and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short- and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in "Item 1.A Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024. Moreover, we operate in a very competitive and rapidly changing environment and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Some of the key factors that could cause actual results to differ from our expectations include:

● our ability to maintain the listing of our shares of common stock and warrants on Nasdaq;

● our ability to raise financing in the future;

● our success in retaining or recruiting officers, key employees or directors;

● factors relating to our business, operations and financial performance, including:

○ our ability to control the costs associated with our operations;

○ our ability to grow and manage growth profitably;

○ our reliance on complex machinery for our operations and production;

○ the market's willingness to adopt our technology;

○ our ability to maintain relationships with customers;

○ the potential impact of product recalls;

○ our ability to compete within our industry;

○ increases in costs, disruption of supply or shortage of raw materials;

○ the impact of unfavorable changes in U.S. and international regulations;

○ the availability of and our ability to meet the terms and conditions for government grants and economic incentives; and

○ our ability to protect our intellectual property rights.

[**Table of Contents**](#toc)

● the regulatory environment in which our business operates under;

● trends in the industries in which our business operates;

● the competitive environment in which our business operates;

● changes in general economic or business conditions or economic or demographic trends in the United States, and globally, including changes in interest rates and inflation;

● casualties, condemnation or catastrophic failures with respect to any of our business' facilities;

● costs and effects of legal and administrative proceedings, settlements, investigations and claims;

● extraordinary or force majeure events affecting the business or operations of our businesses; and

● other factors detailed herein under the section entitled "Risk Factors."

The forward-looking statements included in this prospectus are made only as of the date of this prospectus. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations.

As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. For a discussion of the risks involved in our business and investing in our common stock, see the section entitled "*Risk Factors*."

Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements.

[**Table of Contents**](#toc)

**HUDSON GLOBAL TRANSACTION**

On August 14, 2025, we entered into the Purchase Agreement and the Registration Rights Agreement with Hudson Global. Pursuant to the Purchase Agreement, we have the right to sell to Hudson Global up to $52 million of our common stock ("the "Purchase Shares")subject to certain limitations and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. Sales of common stock pursuant to the Purchase Agreement, and the timing of any sales, are solely at our option, and we are under no obligation to sell any securities to Hudson Global under the Purchase Agreement. In accordance with our obligations under the Registration Rights Agreement, we have filed the registration statement that includes this prospectus with the SEC to register under the Securities Act the resale by Hudson Global of up to 987,036 shares of common stock that we may elect, in our sole discretion, to issue and sell to Hudson Global, from time to time from and after the execution date of the Purchase Agreement and until the earlier of (i) August 14, 2027, (ii) the date on which the Hudson Global shall have purchased the Total Commitment, or (iii) the effective date of any written notice of termination delivered pursuant to the terms of the Purchase Agreement (the "Commitment Period").

**Purchase of Shares of Common Stock under the Purchase Agreement**

We do not have the right to commence any sales of our common stock to Hudson Global under the Purchase Agreement until the Commencement Date, which is the date on which all of the conditions to Hudson Global's purchase obligation set forth in the Purchase Agreement have been satisfied, including that the registration statement that includes this prospectus be declared effective by the SEC. From and after the Commencement Date, we will have the right, but not the obligation, from time to time at our sole discretion over the 24-month period commencing on the Commencement Date, to direct Hudson Global to make purchases of Purchase Shares, as further described in the Purchase Agreement (each, a "Purchase") by delivering a Put Notice (as such term is defined in the Purchase Agreement) on any trading day (the trading day during the Commitment Period that a Put Notice is deemed delivered is the "Put Date"). We may not deliver any Put Notice to Hudson Global unless at least three trading days has elapsed since the date on which the most recent prior notice for a Purchase was delivered by us to Hudson Global and all Purchase Shares subject to prior Put Notices have been received by Hudson Global.

The purchase price of the Purchase Shares that we elect to sell to Hudson Global pursuant to a Purchase (the "Purchase Price") will be the lesser of (i) 84% of the closing price of the Company's Common Stock, as listed on Nasdaq, on the trading day immediately preceding the respective Put Date (the "Initial Purchase Price"), or (ii) 84% of the lowest closing price of the Company's Common Stock on the Principal Market on any Trading Day during the period beginning on the Put Date and continuing through the date that is three trading days immediately following the Clearing Date associated with the applicable Put Notice (such three trading day period is the "Valuation Period", and the price is the "Market Price"), on such date on which the Purchase Price is calculated in accordance with the terms of the Purchase Agreement. The Purchase Price per share of Purchase Shares to be sold in a Purchase will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the applicable Valuation Period used to compute the purchase price per share for such purchase.

The Company may direct Hudson Global, by its delivery of a Put Notice, to purchase Purchase Shares: (a) in a minimum amount not less than $25,000 (calculated using the Initial Purchase Price); and (b) in a maximum amount up to the lesser of (i) $3,000,000 (calculated using the Initial Purchase Price), and (ii) 200% of the average trading volume of the Company's Common Stock on the Principal Market during the three Trading Days immediately preceding the respective Put Date, multiplied by the lowest closing price of the Company's Common Stock on the Principal Market during the three Trading Days immediately preceding the respective Put Date (subsections (a) and (b) above are collectively, the "Purchase Limit"); provided that Hudson Global may waive the Purchase Limit in connection with any Purchase. There is no upper limit on the price per share that Hudson Global could be obligated to pay for Purchase Shares under the Purchase Agreement.

From and after the Commencement Date, we will control the timing and amount of any sales of common stock to Hudson Global. Actual sales of Purchase Shares to Hudson Global under the Purchase Agreement will depend on a variety of factors to be determined by us from time to time, including, among other things, market conditions, the trading price of our common stock and determinations by us as to the appropriate sources of funding for our business and its operations.

<sup>1</sup> NTD: Section to be updated to reflect terms of purchase agreement.

[**Table of Contents**](#toc)

Under the applicable Nasdaq rules, in no event may we issue to Hudson Global under the Purchase Agreement more than 534,031 shares of common stock, which number of shares is equal to 19.99% of the shares of the common stock outstanding as of the date of the Purchase Agreement (the "Exchange Cap"), unless we obtain stockholder approval to issue shares of common stock in excess of the Exchange Cap in accordance with applicable Nasdaq rules. Moreover, we may not issue or sell any shares of common stock to Hudson Global under the Purchase Agreement which, when aggregated with all other shares of common stock then beneficially owned by Hudson Global and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in Hudson Global beneficially owning shares of common stock in excess of the 4.99% Beneficial Ownership Limitation (as such term defined in the Purchase Agreement).

**Conditions to Delivery of Advance Notices**

Our ability to deliver Put Notices to Hudson Global under the Purchase Agreement, and Hudson Global's obligation to accept Put Notices delivered by us, are subject to (i) the initial satisfaction, at the Commencement, and (ii) the satisfaction, on the applicable Put Date for each Purchase after the Commencement Date, of the conditions precedent thereto set forth in the Purchase Agreement, which conditions include the following:

● the accuracy in all material respects of our representations and warranties included in the Purchase Agreement;

● the registration statement that includes this prospectus (and any one or more additional registration statements filed with the SEC that include shares of common stock that may be issued and sold by us to Hudson Global under the Purchase Agreement) shall continue to be effective under the Securities Act, and Hudson Global is able to utilize this prospectus to resell all of the shares of common stock included in this prospectus (and included in any such additional prospectuses);

● the SEC shall not have issued any stop order suspending the effectiveness of the registration statement that includes this prospectus (or any one or more additional registration statements filed with the SEC that include shares of common stock that may be issued and sold by us to Hudson Global under the Purchase Agreement) or prohibiting or suspending the use of this prospectus;

● Both us and Hudson Global shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Purchase Agreement to be performed, satisfied or complied with by such party;

● trading in our common stock shall not have been suspended by the SEC, Nasdaq, or the Financial Industry Regulatory Authority ("FINRA"), and we shall not have received any final and non-appealable notice that the listing of our common stock on The Nasdaq Capital Market shall be terminated on a date certain (unless, prior to such date, the common stock is listed or quoted on any other Eligible Market, as such term is defined in the Purchase Agreement); and

● there shall be the absence of any action, suit or proceeding before any arbitrator or any court or governmental authority seeking to restrain, prevent or change the transactions contemplated by the Purchase Agreement, or seeking material damages in connection with such transactions.

[**Table of Contents**](#toc)

**Termination of Purchase Agreement**

Unless earlier terminated as provided in the Purchase Agreement, the Purchase Agreement will terminate automatically on the earliest to occur of:

● twenty-four (24) months after the execution of the Purchase Agreement;

● the date on which the Hudson Global shall have purchased the Maximum Commitment Amount issuable under the Purchase Agreement; or

● the effective date of any written notice of termination delivered pursuant to the terms of the Purchase Agreement.

We have the right to terminate the Purchase Agreement at any time after the Commencement Date for any reason or for no reason, without any liability whatsoever, upon prior written notice to Hudson Global, provided that Hudson Global no longer holds any Purchase Shares and such notice is not delivered during a Valuation Period.

**Prohibitions on Other Equity Lines of Credit**

Pursuant to the terms of the Purchase Agreement, during the period beginning on the date of the Purchase Agreement and continuing until the later of (i) 12 months from the date of the Purchase Agreement or (ii) the date that the Purchase Agreement is no longer in effect, the Company has agreed that it will not, without Hudson's prior written consent, enter into any other "Equity Line of Credit," and that, for so long as the Purchase Agreement is in effect, the Company will not enter into any "Variable Rate Transaction" without Hudson's prior written consent.

"Equity Line of Credit" is defined as any transaction involving a written agreement between the Company and an investor or underwriter whereby the Company has the right to "put" its securities to the investor or underwriter over an agreed period of time and at an agreed price or price formula.

"Variable Rate Transaction" is defined as a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) issues securities at a future determined price, provided, however, that an Equity Line of Credit shall not be deemed to be a Variable Rate Transaction.

**Effect of Sales of our Common Stock under the Purchase Agreement on our Stockholders**

All shares of common stock that may be issued or sold by us to Hudson Global under the Purchase Agreement that are being registered under the Securities Act for resale by Hudson Global in this offering are expected to be freely tradable. The shares of common stock being registered for resale in this offering may be issued and sold by us to Hudson Global from time to time at our discretion over a period of up to 24 months commencing on the Commencement Date. The resale by Hudson Global of a significant amount of shares registered for resale in this offering at any given time, or the perception that these sales may occur, could cause the market price of our common stock to decline and to be highly volatile. Sales of our common stock, if any, to Hudson Global under the Purchase Agreement will depend upon market conditions and other factors to be determined by us. We may ultimately decide to sell to Hudson Global all, some or none of the shares of our common stock that may be available for us to sell to Hudson Global pursuant to the Purchase Agreement.

[**Table of Contents**](#toc)

If and when we do elect to sell shares of our common stock to Hudson Global pursuant to the Purchase Agreement, after Hudson Global has acquired such shares, Hudson Global may resell all, some or none of such shares at any time or from time to time in its discretion and at different prices. Therefore, sales to Hudson Global by us under the Purchase Agreement may result in substantial dilution to the interests of other holders of our common stock. In addition, if we sell a substantial number of shares to Hudson Global under the Purchase Agreement, or if investors expect that we will do so, the actual sales of shares or the mere existence of our arrangement with Hudson Global may make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect such sales. However, we have the right to control the timing and amount of any additional sales of our shares to Hudson Global and the Purchase Agreement may be terminated by us at any time at our discretion without any cost to us.

Pursuant to the terms of the Purchase Agreement, we have the right, but not the obligation, to direct Hudson Global to purchase up to $52,000,000 of our common stock. The Purchase Agreement prohibits us from issuing or selling to Hudson Global under the Purchase Agreement shares of our common stock in excess of the Exchange Cap, unless we obtain stockholder approval to issue shares in excess of the Exchange Cap and any shares of our common stock if those shares, when aggregated with all other shares of our common stock then beneficially owned by Hudson Global, would exceed the 4.99% of our outstanding shares of common stock.

The following table sets forth the sale of shares of common stock to Hudson Global under the Purchase Agreement at varying purchase prices:

---

| | | |
|:---|:---|:---|
| **Assumed Average<br> Purchase Price** | **Number of Registered<br> Shares to be Issued if Full<br> Purchase<sup>(1)</sup>** | **Percentage of Outstanding<br> Shares After Giving Effect to<br> the Issuance to Hudson Global<sup>(2)</sup>** |
| $3.00 | 17333333 | 86.65% |
| $3.68<sup>(3)</sup> | 14130435 | 84.11% |
| $4.00 | 13000000 | 82.96% |
| $4.50 | 11555556 | 81.23% |
| $5.00 | 10400000 | 79.57% |

---

(1) Includes the total number of Purchase Shares that we would have sold under the Purchase Agreement at the corresponding assumed average purchase price set forth in the first column, up to the aggregate purchase price of $52,000,000, if available, without giving effect to the Exchange Cap or the Beneficial Ownership Cap. Also assumes an increase of our authorized shares of common stock when the assumed average purchase price equals to $3.00, $3.68, $4.00, $4.50 or $5.00. The assumed average purchase prices per share are solely for illustrative purposes and are not intended to be estimates or predictions of the future performance of our common stock. Also assumes stockholder approval for the potential issuance and sale of 20% or more of our common stock to Hudson Global pursuant to the Purchase Agreement.

(2) The denominator is based on 2,670,286 shares of our common stock outstanding as of August 14, 2025, as adjusted to include the sale of the number of shares set forth in the adjacent column (which is comprised of the number of shares we may sell to Hudson Global under the Purchase Agreement, assuming the average purchase price in the first column). The numerator is based on the aggregate number of shares issuable under the Purchase Agreement (that are the subject of this offering) at the corresponding assumed average purchase price set forth in the first column.

(3) The closing sale price of our common stock on The Nasdaq Capital Market on August 14, 2025.

[**Table of Contents**](#toc)

**USE OF PROCEEDS**

This prospectus relates to shares of our common stock that may be offered and sold from time to time by Hudson Global. All of the common stock offered by Hudson Global pursuant to this prospectus will be sold by Hudson Global for its own account. We will not receive any of the proceeds from these sales. We may receive up to $52 million aggregate gross proceeds under the Purchase Agreement from any sales we make to Hudson Global pursuant to the Purchase Agreement. The net proceeds from sales, if any, under the Purchase Agreement, will depend on the frequency and prices at which we sell shares of common stock to Hudson Global after the date of this prospectus. Because we are not obligated to sell any shares of our common stock under the Purchase Agreement, the actual total offering amount and proceeds to us, if any, are not determinable at this time. See the section titled "*Plan of Distribution*" elsewhere in this prospectus for more information.

We expect to use the net proceeds that we receive from sales of our common stock to the Hudson Global, if any, under the Purchase Agreement to fund the operating expenses and capital expenses for product development and plan to make substantial investments over the next several years, among others, in new production equipment and warehousing, systems assembly line, MEA assembly automation, aeronautical stacks, facility expansion, new hirings and general corporate purposes., including, but not limited to, for use with respect to certain projects of the Company's subsidiary, Advanced Energy Technologies S.A. We do not currently have specific plans or commitments with respect to the net proceeds from this offering and, accordingly, we are unable to quantify the allocations of such proceeds among various potential uses. Pending these uses, we intend to invest the net proceeds in investment-grade, interest-bearing securities. There can be no assurance that we will sell any shares under or fully utilize the Purchase Agreement as a source of financing.

[**Table of Contents**](#toc)

**SELLING STOCKHOLDER**

This prospectus relates to the offer and resale by Hudson Global of up to 987,036 shares of common stock that have been and may be issued by us to Hudson Global under the Purchase Agreement. For additional information regarding the shares of common stock included in this prospectus, see the section titled "*Hudson Global Transaction*" above. We are registering the shares of common stock included in this prospectus pursuant to the provisions of the Registration Rights Agreement we entered into with Hudson Global on August 14, 2025 in order to permit Hudson Global to offer the shares included in this prospectus for resale from time to time.

The table below presents information regarding Hudson Global and the shares of common stock that may be resold by Hudson Global from time to time under this prospectus. This table is prepared based on information supplied to us by Hudson Global, and reflects holdings as of August 14, 2025. The number of shares in the column "Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus" represents all of the shares of common stock being offered for resale by Hudson Global under this prospectus. Hudson Global may sell some, all or none of the shares being offered for resale in this offering. We do not know how long Hudson Global will hold the shares before selling them, and we are not aware of any existing arrangements between Hudson Global and any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares of our common stock being offered for resale by this prospectus.

Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of common stock with respect to which Hudson Global has sole or shared voting and investment power. The percentage of shares of common stock beneficially owned by Hudson Global prior to the offering shown in the table below is based on an aggregate of 2,670,286 shares of our common stock outstanding on August 14, 2025. Because the purchase price to be paid by Hudson Global for shares of common stock, if any, that we may elect to sell to Hudson Global from time to time under the Purchase Agreement will be determined on the applicable dates for such purchases, the actual number of shares of common stock that we may sell to Hudson Global under the Purchase Agreement may be fewer than the number of shares being offered for resale under this prospectus. The fourth column assumes the resale by Hudson Global of all of the shares of common stock being offered for resale pursuant to this prospectus.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Selling Stockholders** | **Selling Stockholders** | **Selling Stockholders** | **Selling Stockholders** | **Selling Stockholders** |
| <br>**Selling Stockholder<sup>(1)</sup>** | **Shares of Common Stock Beneficially Owned Prior to Offering<sup>(2)</sup>** | **%<sup>(3)</sup>** | **Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus** | **Shares of Common Stock Beneficially Owned after the Offered Shares are Sold<sup>(4)</sup>** | **%** |
| Hudson Global Ventures, LLC | 0 |  | 987036 | 987036 | 36.96 |

---

(1) Seth Ahdoot and Soheil Ahdoot, the joint owners of Hudson Global], are deemed to be beneficial owners of all of the shares of common stock owned by Hudson Global. Messrs. Ahdoot and Ahdoot have shared voting and investment power over the shares being offered under the prospectus in connection with the transactions contemplated under the Purchase Agreement. Hudson Global is not a licensed broker dealer or an affiliate of a licensed broker dealer.

(2) In accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior to the offering of all of the shares that Hudson Global may be required to purchase under the Purchase Agreement, because the issuance of such shares is solely at our discretion and is subject to conditions contained in the Purchase Agreement, the satisfaction of which are entirely outside of Hudson Global's control, including the registration statement that includes this prospectus becoming and remaining effective. Also, the Purchase Agreement prohibits us from issuing and selling any shares of our common stock to Hudson Global to the extent such shares, when aggregated with all other shares of our common stock then beneficially owned by Hudson Global, would cause Hudson Global's beneficial ownership of our common stock to exceed the 4.99% Beneficial Ownership Limitation. The Purchase Agreement also prohibits us from issuing or selling shares of our common stock under the Purchase Agreement in excess of the 19.99% Exchange Cap, unless we obtain stockholder approval to do so. Neither the Beneficial Ownership Limitation nor the Exchange Cap (to the extent applicable under Nasdaq rules) may be amended or waived under the Purchase Agreement.

(3) Applicable percentage ownership is based on 2,670,286 shares of our common stock outstanding as of August 14, 2025.

(4) Assumes the resale of all shares being offered pursuant to this prospectus.

[**Table of Contents**](#toc)

**PLAN OF DISTRIBUTION**

The shares of common stock offered by this prospectus are being offered by the Selling Stockholder, Hudson Global. The shares may be sold or distributed from time to time by Hudson Global directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.

We entered into the Purchase Agreement with Hudson Global on August 14, 2025. The Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, Hudson Global is committed to purchase an aggregate of up to $52,000,000 of our common stock over the 24-month term of the Purchase Agreement. See section titled "*Hudson Global Transaction*."

The sale of the shares of our common stock offered by this prospectus could be effected in one or more of the following methods:

● ordinary brokers' transactions;

● transactions involving cross or block trades;

● through brokers, dealers or underwriters who may act solely as agents;

● "at the market" into an existing market for our common stock;

● in other ways not involving market makes or established business markets, including direct sales to purchasers or sales effected through agents;

● in privately negotiated transactions;

● any combination of the foregoing; or.

● any other method permitted pursuant to applicable law.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers.

Hudson Global is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act.

Hudson Global has informed us that it intends to use an unaffiliated broker to effectuate all sales, if any, of our common stock that it may acquire from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. Hudson Global has informed us that each such broker-dealer, may receive commissions from Hudson Global for executing such sales for Hudson Global and, if so, such commissions will not exceed customary brokerage commissions.

Brokers, dealers, underwriters or agents participating in the distribution of the shares of our common stock offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the shares sold by Hudson Global through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of shares of our common stock sold by Hudson Global may be less than or in excess of customary commissions. Neither we nor Hudson Global can presently estimate the amount of compensation that any agent will receive from any purchasers of shares of our common stock sold by Hudson Global.

[**Table of Contents**](#toc)

We know of no existing arrangements between Hudson Global and any other stockholder, broker, dealer, underwriter, or agent relating to the sale or distribution of the shares offered by this prospectus.

We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by Hudson Global, including with respect to any compensation paid or payable by Hudson Global to any brokers, dealers, underwriters or agents that participate in the distribution of such shares by Hudson Global, and any other related information required to be disclosed under the Securities Act. At the time a particular offer of shares is made, a prospectus supplement, if required, will be distributed that will set forth the names of any agents, underwriters, or dealers and any compensation from the selling stockholder, and any other required information.

We may engage in "at-the-market offerings" into an existing trading market in accordance with Rule 415(a)(4) under the Securities Act. In addition, we may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement so indicates, in connection with those derivatives, the third parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings of stock, and may use securities received from us in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and, if not identified in this prospectus, will be named in the applicable prospectus supplement (or a post-effective amendment). In addition, we may otherwise loan or pledge securities to a financial institution or other third party that in turn may sell the securities short using this prospectus and an applicable prospectus supplement. Such financial institution or other third party may transfer its economic short position to investors in our securities or in connection with a concurrent offering of other securities.

We will pay all of the expenses incident to the registration, offering, and sale of the shares to Hudson Global.

We have agreed to indemnify Hudson Global and certain other persons against certain liabilities in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.

Hudson Global represented to us that at no time prior to the date of the Purchase Agreement has Hudson Global or its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our common stock or any hedging transaction. Hudson Global agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will not enter into or effect, directly or indirectly, any of the foregoing transactions.

We have advised Hudson Global that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes Hudson Global, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the shares offered by this prospectus.

The underwriters, dealers and agents may engage in transactions with us, or perform services for us, in the ordinary course of business for which they receive compensation.

No securities may be sold under this prospectus without delivery, in paper format or in electronic format, or both, of the applicable prospectus or prospectus supplement describing the method and terms of the offering.

**Listing of Common Stock and Transfer Agent**

Our common stock is listed on Nasdaq and trades under the symbol "ADN." The transfer agent for our common stock is Continental Stock Transfer & Trust Company.

[**Table of Contents**](#toc)

**DIVIDEND POLICY**

We have not declared any cash dividends since inception and we do not anticipate paying any dividends in the foreseeable future. Instead, we anticipate that all of our earnings will be used to provide working capital, to support our operations, and to finance the growth and development of our business, including potentially the acquisition of, or investment in, businesses, technologies or products that complement our existing business. The payment of dividends is within the discretion of the board of directors and will depend on our earnings, capital requirements, financial condition, prospects, applicable Delaware law, which provides that dividends are only payable out of surplus or current net profits, and other factors our board might deem relevant. There are no restrictions that currently limit our ability to pay dividends on our common stock other than those generally imposed by applicable state law.

[**Table of Contents**](#toc)

**CAPITALIZATION**

The following table sets forth our capitalization as of August 14, 2025:

● on an actual basis;

● on an as adjusted basis, giving effect to the assumed sale by us of 987,036 shares of Common Stock in this offering at an assumed public offering price of $3.68 per share (the last reported sale price of our Common Stock on Nasdaq on August 14, 2025), after estimated offering expenses payable by us.

The as adjusted information below is illustrative only and our capitalization following the completion of this offering is subject to adjustment based on the public offering price and other terms of this offering determined at pricing. You should read this table together with our financial statements and the related notes included elsewhere in this prospectus and the information under "*Management's Discussion and Analysis of Financial Condition and Results of Operations*."

---

| | | |
|:---|:---|:---|
|  | **Actual** | **As adjusted** |
| Cash, cash equivalents and investments | $30 | 3662 |
| Common stock, $0.0001 par value; 501,000,000 shares authorized at August 14, 2025; 2,670,286 shares issued and outstanding at August 14, 2025; 3,657,322 shares issued and outstanding, as adjusted | $- |  |
| Additional paid-in capital | $199565 | 203197 |
| Accumulated deficit | $(215443) | (215443) |
| Accumulated other comprehensive loss | $(1763) | (1763) |
| Total stockholders' equity | $(17641) | (14009) |
| **Total capitalization** | $(17641) | (14009) |

---

[**Table of Contents**](#toc)

**DILUTION**

If you invest in our securities in this offering, your ownership will be diluted immediately to the extent of the difference between the public offering price per share and the as adjusted net tangible book value per Common Stock of immediately after this offering. Dilution in net tangible book value per share to new investors is the amount by which the offering price paid by the purchasers of the shares sold in this offering exceeds the pro forma as adjusted net tangible book value per Common Stock after this offering. Net tangible book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets and dividing the difference by the number of Common Stock deemed to be outstanding at that date.

As of August 14, 2025, our net tangible book value (deficit) was approximately $(17,641), or approximately $(6.61) per share.

After giving effect to the sale of the maximum of 987,036 Common Stock in this offering, and after deducting the placement agent fees and other estimated offering expenses payable by us, our pro forma as adjusted net tangible book value (deficit) as of August 14, 2025 would have been approximately $(14,024), or approximately $(3.83) per share. This amount represents an immediate increase in net tangible book value of $2.77 per share to existing shareholders and an immediate dilution in net tangible book value of $7.51 per share to purchasers of our Common Stock in this offering, as illustrated in the following table.

---

| | | |
|:---|:---|:---|
| Assumed public offering price per share |  | $3.68 |
| &nbsp;&nbsp;&nbsp;Historical net tangible book value (deficit) per share as of August 14, 2025 | $(6.61) |  |
| &nbsp;&nbsp;&nbsp;Increase per share attributable to the pro forma adjustments described above | 2.77 |  |
| &nbsp;&nbsp;&nbsp;Pro forma net tangible book value (deficit) per share as of August 14, 2025 | (3.83) |  |
| &nbsp;&nbsp;&nbsp;Increase in pro forma as adjusted net tangible book value per share attributable to new investors purchasing shares in this offering | 3.68 |  |
| Pro forma as adjusted net tangible book value (deficit) per share after this offering |  | (3.83) |
| Dilution per share to new investors purchasing shares in this offering |  | $7.51 |

---

The table and discussion above exclude:

[**Table of Contents**](#toc)

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br> CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing elsewhere in this prospectus.*

*Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the Item 1A. "Risk Factors" section of the 2024 10-K, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

*This MD&A generally discusses 2024 and 2023 items, year-over-year comparisons between 2024 and 2023 and items from the second quarter of 2025. See Note 1 "Basis of Presentation" in the Notes to the Consolidated Financial Statements included with the 2024 10-K beginning on page F-44 and the Notes to Condensed Consolidated Financial Statements (Unaudited) beginning on page F-11 for additional information.*

**Overview**

Advent is an advanced materials and technology development company operating in the fuel cell and hydrogen technology space. Advent develops, manufactures and assembles the critical components that determine the performance of hydrogen fuel cells and other energy systems. Advent's core product offerings are full fuel cell systems and the Membrane Electrode Assembly (MEA) at the center of the fuel cell. The Advent MEA, which derives its key benefits from the properties of Advent's engineered membrane technology, enables a more robust, longer-lasting and ultimately lower-cost fuel cell product.

Advent's principal operations have been to develop and manufacture MEAs, and to design fuel cell stacks and complete fuel cell systems for a range of customers in the stationary power, portable power, automotive, aviation, energy storage and sensor markets. Advent has its headquarters in Livermore, California, and we have MEA fabrication and system production facilities in Livermore, California and Patras, Greece.

The majority of Advent's current revenue derives from the sale and servicing of fuel cell systems and MEAs, as well as the sale of membranes and electrodes for specific applications in the iron flow battery and cellphone markets, respectively. While fuel cell systems and MEA sales and associated revenues are expected to provide the majority of Advent's future income, both of these markets remain commercially viable and have the potential to generate material future revenues based on Advent's existing customers. Advent has also secured grant funding for a range of projects from research agencies and other organizations. Advent expects to continue to be eligible for grant funding based on its product development activities over the foreseeable future.

**Change in Independent Registered Public Accounting Firm**

On September 17, 2024, Ernst & Young (Hellas) Certified Auditors Accountants S.A. ("EY"), the Company's prior independent registered public accounting firm, was dismissed effective immediately. EY had served as the Company's independent registered public account firm since February 9, 2021, and also served as the independent registered public accounting firm of the Company's subsidiary, Legacy Advent, prior to the Business Combination pursuant to the Agreement and Plan of Merger.

On September 20, 2024, the audit committee of the board of directors of the Company approved the engagement of M&K CPAS, PLLC ("M&K") as the Company's independent registered public accounting firm to audit the Company's consolidated financial statements for the year ending December 31, 2024.

EY's audit reports on the Company's financial statements as of and for the fiscal years ended December 31, 2023 and 2022 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, provided that EY's audit report as of and for the year ended December 31, 2023 contained an explanatory paragraph regarding the Company's ability to continue as a going concern.

[**Table of Contents**](#toc)

**Reverse Stock Split**

On May 13, 2024, the Company effected a 1-for-30 reverse stock split by filing an amendment to the Company's Second Amended and Restated Certificate of Incorporation, with the Delaware Secretary of State. The reverse stock split combined every thirty shares of our common stock issued and outstanding immediately prior to effecting the reverse stock split into one share of common stock. No fractional shares were issued in connection with the reverse stock split. All historical share and per share amounts reflected throughout this document have been adjusted to reflect the reverse stock split. The authorized number of shares and the par value per share of the Company's common stock were not affected by the reverse stock split.

**Danish Subsidiary Bankruptcy**

Additionally, on July 25, 2024, Advent Technologies A/S, a Danish subsidiary of the Company (the "Danish Subsidiary"), was declared bankrupt under and pursuant to the Denmark Bankruptcy Act (the "Danish Subsidiary Bankruptcy"), and, as a result, Advent Technologies A/S and its wholly-owned Philippines subsidiary, Green Energy Philippines Inc., was deconsolidated from the Company.

**Business Developments**

***RHyno Project awarded €34.5 Million by EU Innovation Fund***

On March 5, 2025, the European Climate, Infrastructure and Environment Executive Agency (CINEA) and Advent's wholly owned Greek subsidiary, Advanced Energy Technologies S.A. each signed the grant agreement for the Company's monumental RHyno Project. This EU Innovation Fund grant will provide Advent with €34,534,318 in non-dilutive funding over the lifetime of the project.

The Advent Renewable Hydrogen Innovative Technologies (RHyno) project involves the establishment of infrastructure for developing and manufacturing innovative fuel cells, electrolysers, and their key components including Advent ground-breaking Membrane Electrode Assembly technology at a megawatt (MW) scale. RHyno aims to pioneer the use of innovative materials to enhance power density and lifespan while significantly reducing the weight and volume of power systems through a streamlined balance of plant.

The planned state-of-the-art facility is designed to optimize production processes, boost efficiency, and industrialize fuel cell and electrolyser technologies. These advancements are essential for decarbonizing carbon intense industries, such as the aviation, maritime and heavy-duty automotive sectors, with further potential for spillover to other sectors, positioning Advent at the forefront of the clean energy transition.

***Airbus Term Sheet to Launch a Joint Benchmarking Project***

On November 6, 2023, Advent announced that it entered into an agreement with Airbus, a global leader in aeronautics, space, and related services, for a joint benchmarking project regarding an optimized Ion Pair™ Membrane Electrode Assembly ("MEA") for hydrogen fuel cells. Airbus will provide financial support to the project and its extensive knowledge of the aviation industry. Advent will invest in people, materials, hardware, and third-party research centers, to contribute to the goals of the project. The multi-million-dollar collaboration is currently expected to take place over two years. On February 19, 2025, Advent and Airbus representatives met in Hamburg, Germany to kickoff Phase Two of the joint benchmarking project.

The goal of the project is to accelerate the development of Advent's MEA and benchmark the Ion Pair MEA against aviation requirements and current/expected technological limits. HT-PEM MEAs operating at temperatures higher than 180°C (360°F) aim to solve one of the largest challenges in aviation fuel cell use: thermal management. High-temperature fuel cells allow increased performance, increased passenger carrying capability, and increased range compared to low-temperature fuel cell stack technology. Advent believes that HT-PEM is a superior option not only for aviation, but also for heavy-duty trucks, the automotive industry and marine use.

[**Table of Contents**](#toc)

***Purchase Agreement with Lincoln Park***

On April 10, 2023, Advent entered into a purchase agreement (the "Prior Purchase Agreement") with Lincoln Park, which provided that, upon the terms and subject to the conditions and limitations set forth therein, Advent has the right, but not the obligation, to sell to Lincoln Park up to $50 million worth of shares of its common stock from time to time over the 36-month term of the Purchase Agreement. Concurrently with entering into the Purchase Agreement, Advent also entered into a registration rights agreement with Lincoln Park, pursuant to which we agreed to register the resale of the shares of our common stock that have been and may be issued to Lincoln Park under the Purchase Agreement pursuant to a registration statement. Upon the execution of the Purchase Agreement, we issued 21,186 shares of common stock to Lincoln Park as consideration for its commitment to purchase shares of our common stock under the Purchase Agreement. Lincoln Park has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of our common stock. As of December 31, 2024, Lincoln Park had sold an aggregate of 10,490 shares for net proceeds to the Company of $5.5 million.

***At the Market Offering Agreement***

On June 2, 2023, Advent entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC, as sales agent (the "Agent"), to create an at-the-market equity program under which it may sell up to $50 million of shares of Advent's Common Stock from time to time through the Agent (the "ATM Offering"). Under the ATM Agreement, the Agent will be entitled to a commission at a fixed rate of 3.0% of the gross proceeds from each sale of shares under the ATM Agreement.

Sales of Common Stock, if any, under the ATM Agreement may be made in transactions that are deemed to be "at-the-market equity offerings" as defined in Rule 415 under the Securities Act of 1933, as amended (the "Securities Act"), including sales made by means of ordinary brokers' transactions, including on the Nasdaq Capital Market, at prevailing market prices at the time of sale or as otherwise agreed with the Agent. Advent has no obligation to sell, and the Agent is not obligated to buy or sell, any of the Common Stock under the Agreement and may at any time suspend offers under the Agreement or terminate the Agreement. The ATM Offering will terminate upon the termination of the ATM Agreement as permitted therein. As of December 31, 2024, the Agent had sold an aggregate of 233,061 shares for net consideration to the Company of $1.6 million.

Common Stock was issued pursuant to Advent's previously filed Registration Statement on Form S-3 (File No. 333-271389) that was declared effective on May 2, 2023 and a prospectus supplement and accompanying prospectus relating to the ATM Offering filed with the Securities and Exchange Commission ("SEC") on June 2, 2023.

***Purchase Agreement with Joseph Gunnar & Co., LLC***

On December 22, 2023, the Company entered into a Securities Purchase Agreement (the "Gunnar Purchase Agreement") with those certain purchasers named therein (the "Purchasers") pursuant to which the Company agreed to issue and sell, in a public offering, directly to the Purchasers (the "Registered Direct Offering"), 333,333 shares of common stock. The purchase price per share of Common Stock is $6.00, resulting in gross proceeds of $2,000,000.

As of the date of filing of our 2024 10-K, the net proceeds to the Company are approximately $1.8 million, after deducting estimated expenses payable by the Company associated with the Registered Direct Offering.

The Company paid Gunnar an aggregate cash fee equal to 9.0% of the gross proceeds of the Registered Direct Offering, and agreed to reimburse Gunnar up to a total of $25,000 for actual fees and expenses of legal counsel and other out-of-pocket expenses.

***Collaboration with the Department of Energy***

The efforts with the constellation of Department of Energy National Laboratories (Los Alamos National Laboratory, LANL; Brookhaven National Laboratory, BNL; National Renewable Energy Laboratory, NREL) continue to gain momentum. This group of leading scientists and engineers is working closely with Advent's development and manufacturing teams and are furthering the understanding of breakthrough materials that will advance HT-PEM fuel cells. This next generation HT-PEM appears to be well suited for heavy duty transportation, marine, and aeronautical applications, as well as delivering benefits in cost and lifetime for stationary power systems used in telecom and other remote power markets.

[**Table of Contents**](#toc)

***Agreements with Hyundai Motor Company ("Hyundai")***

On April 6, 2022, Advent announced the signing of a technology assessment, sales, and development agreement with Hyundai, a leading multinational automotive manufacturer offering a range of world-class vehicles and mobility services in over 200 countries. Advent and Hyundai aim to deliver green energy solutions to current high carbon applications, using fuel cell technology. Under the agreement, Hyundai will provide catalysts to Advent for evaluation in its proprietary MEAs, while Advent intends to support Hyundai in fulfilling its fuel cell project needs, through:

● Developing inks and structures using Hyundai catalysts, which will then be evaluated by Hyundai. Following evaluation, Hyundai will determine whether their own or standard catalysts will be used for this project.

● Supplying MEAs throughout the development/commercialization cycle ("Advent MEAs") for testing, evaluation, and optimization under conditions set by Hyundai.

● Assisting Hyundai with the use and specifications of MEAs as well as their implementation into Hyundai's designs.

On March 23, 2023, Hyundai announced a successful technology assessment with Advent and following its success, Advent and Hyundai have entered into a Joint Development Agreement ("JDA"). Under the agreement, Hyundai and Advent will work together to further develop HMC-Advent Ion Pair™ MEA, establish commercial criteria for MEA supply, and evaluate Advent's advanced fuel cell technology for Hyundai's heavy-duty and/or stationary application. Additionally, the parties will introduce advanced cooling technologies for mobility HT-PEM fuel cell stacks. Advent will work closely as Hyundai evaluates these stack cooling technologies and ensure optimal performance under different operating conditions.

This partnership builds upon a commitment from both companies to develop sustainable energy solutions for carbon-intensive applications. Hyundai aims to accelerate the establishment of a hydrogen-based society based on its vision, Progress for Humanity, and this JDA aligns with that vision. The synergy generated by combining the two companies' advanced technology in this JDA is expected to revolutionize the global MEA market by providing significant improvement in lifetime and an increase in power density versus current HT-PEM MEAs.

***BASF Environmental Catalyst and Metal Solutions ("BASF")***

On May 9, 2023, Advent and BASF, a global leader in precious metals and catalysis, concluded on the terms of a new agreement to join efforts in building a closed loop component supply chain for fuel cells and enter discussions to extend the partnership into the field of water electrolysis. For 20 years, BASF has been a leader in membrane and MEA technology for HT-PEM fuel cells with a strong foundation in precious metal services and catalysis. HT-PEM fuel cells operate at 120 to 180°C, offer a broad operating window and tolerate impurities in the hydrogen fuel source. The fuel cells also enable simplified cooling and need no humidification. Advent offers competitive fuel cell systems for stationary and portable applications based on methanol and on-site reforming. In the future, HT-PEM fuel cells will also be available for heavy duty mobility and marine power. The scope of the agreement includes BASF's full portfolio of products and services to enable circularity in key materials. Both companies will cooperate on BASF's latest membrane development, Celtec®-Z, and the new Ion Pair™ MEA by Advent, aiming for improved performance, lifetime and cost competitiveness.

***Advent and Safran Power Units Sign MoU to Advance HT-PEM Fuel Cell Technology for the Aerospace Sector***

On May 31, 2023, Advent signed a memorandum of understanding ("MoU") with Safran Power Units, a leader in auxiliary power systems and turbojet engines. Leveraging Advent's proprietary Ion Pair™ MEA technology, and Safran Power Units' knowledge and capabilities in aerospace, this new collaboration seeks to advance the development of next-generation HT-PEM fuel cell technology, specifically for the aerospace sector.

[**Table of Contents**](#toc)

HT-PEM enables more efficient heat management versus low temperature-PEM ("LT-PEM"). HT-PEM is more adapted for applications requiring high amounts of power combined with strong integration constraints such as aviation. HT-PEM is also more robust and can withstand tougher operating conditions, such as extreme temperatures and pollution, versus LT-PEM.

As part of the MoU, Advent and Safran Power Units are exploring a joint development agreement for the advancement of HT-PEM fuel cells in aviation and for enhancing Advent's supply capability.

As of December 31, 2024, there was no new activity in respect to this MoU.

***Launch of the Honey Badger 50™ Fuel Cell System***

On August 4, 2022, we announced the launch of our HB50 power system, a compact portable fuel cell system and quiet power supply for use in off-grid field applications such as military and rescue operations. The launch of Advent's portable power system coincided with the Company's fulfilment of its first shipment order from the U.S. Department of Defense. The HB50 power system can be fueled by biodegradable methanol, allowing near silent generation of up to 50W of continuous power with clean emissions. Designed for covert operations, HB50 can easily power radio and satellite communications gear, remote fixed and mobile surveillance systems, and laptop computers along with more general battery charging needs. HB50 is a unique technology that can provide 65% of weight savings versus batteries over a typical 72-hour mission. The weight savings benefit increases further for longer missions.

HB50's unique design allows it to be used in soldier-worn configurations or operated inside a portable backpack or vehicle while charging batteries and powering soldier systems, while its thermal features allow it to operate within an ambient temperature range of -20°C to +55°C. Aside from its optimized compatibility with Integrated Visual Augmentation System ("IVAS"), HB50 can also power devices such as high frequency radios like the model 117G, as well as B-GAN and StarLink terminals. HB50's durability allows it to be easily deployed in challenging conditions and climates while supporting mission mobility for three to seven days without the need to re-supply.

Since Honey Badger's fuel cell technology can run on hydrogen or liquid fuels, the system can operate at a fraction of the weight of traditional military-grade batteries to meet the U.S. Department of Defense's continuously evolving needs for 'on-the-go' electronics needs. As military adoption and use of IVAS equipment continues to evolve, the highly portable lightweight power solutions like Honey Badger and HB50 will become a mission critical necessity.

In September 2023, Advent secured a new $2.2 million contract with the US DoD. This milestone achievement comes under the General Technical Services prime contract and will play a crucial role in supporting the demanding defense mission requirements of the US Army. This contract is the continuation of a series of past contracts with the US DoD and its primary objective is to further optimize Advent's proprietary Honey Badger 50™ portable fuel cell system by integrating the Company's innovative Ion Pair MEA technology. Upon the completion of this new 12-month contract, Advent and the US DoD aim to reinforce their long-term collaboration by focusing on the manufacturing process of the enhanced HB50 fuel cell system, that will enable high-volume production manufacturing capacity. MEAs form the heart of the fuel cell, and their performance determines the lifetime, efficiency, weight, and to a large extent, the cost of the end electrochemistry products. Advent's Ion Pair MEA technology is anticipated to significantly enhance HB50's performance, resulting in higher power density and improved compact packaging, making it an ideal solution for off-grid field applications, including military and rescue operations.

In December 2023, Advent secured a new $2.8 million contract with the US DoD. Under this new defense contract which comes under the umbrella of the Envision Innovative Solutions (''EIS''), Advent will develop advanced manufacturing processes to enable a substantial increase in the production capacity while maintaining quality of the HB50 system. This new project is aligned with Advent's and the US DoD's shared objective to strengthen their long-term collaboration and transform HB50 into a portable and clean source of power.

As of December 31, 2024, Advent continues to work with the US DoD to advance the HB50 technology.

[**Table of Contents**](#toc)

***Nasdaq Deficiency Letters***

On May 24, 2023, the Company received a letter from Nasdaq indicating that the bid price of the Common Stock had closed below $1.00 per share for 30 consecutive business days and, as a result, the Company was not in compliance with Nasdaq's Minimum Bid Requirement.

On May 13, 2024, the Company effectuated the Reverse Stock Split, and our Common Stock began trading on a split-adjusted basis on the Nasdaq Capital Market at the opening of trading on May 14, 2024, in an effort to comply with the Minimum Bid Requirement. The Company has since received confirmation from Nasdaq that it has met the Minimum Bid Requirement.

On April 17, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with Timely Report Requirement due to the fact that the 2023 10-K was not filed by the required due date of March 31, 2024. Additionally, on May 24, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its First Quarter 10-Q by the required due date of May 14, 2024. Further, on November 22, 2024, we received a letter from Nasdaq notifying the Company that it is not in compliance with the Timely Reporting Requirement due to the fact that the Company did not file its Third Quarter 10-Q by the required due date of November 20, 2024. On April 16, 2025, the Company also received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its 2024 10-K by the required due date of April 16, 2025. Lastly, on May 22, 2025, the Company received a letter from Nasdaq notifying the Company that it is not in compliance with the periodic requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1) due to the fact that the Company did not file its Q1 2025 10-Q by the required due date of May 15, 2025. The Company submitted compliance plans to Nasdaq setting forth its plan to file 2023 10-K, the First Quarter 10-Q, the Third Quarter 10-Q, the 2024 10-K and the Q1 2025 10-Q. The Company filed its 2023 10-K on August 13, 2024, its First Quarter 10-Q on October 15, 2024, its Third Quarter 10-Q on December 27, 2024, its 2024 10-K on June 6, 2025 and its Q1 2025 10-Q on June 30, 2025.

Additionally, on October 18, 2024, we received a letter from Nasdaq notifying the Company that since the Company's Form 10-Q for the period ended June 30, 2024, reported stockholders' equity of ($2,879,000), and as of the date of such letter the Company did not meet the alternatives of market value of listed securities or net income from continuing operations, the Company is no longer in compliance with Nasdaq's Listing Rule requiring the Company to maintain a minimum of $2,500,000 in stockholders' equity for continued listing. The Company submitted a compliance plan and supplement to Nasdaq setting forth its plan to increase its stockholders' equity, and on April 16, 2025, received a letter from Nasdaq confirming that the Company had regained compliance with the minimum stockholders' equity rule for continued listing.

***New Board Member***

On December 31, 2024, the Company's shareholders elected Robert Schwartz as a Class I director of the Company, with a term expiring at the 2027 annual meeting of the Company's stockholders or until his successor is duly elected and qualified in accordance with our second amended and restated certificate of incorporation and amended and restated bylaws, or his earlier death, resignation or removal.

***Termination of Former Chief Executive Officer***

On October 24, 2024, the Board approved the termination of the employment of Vassilios Gregoriou, the Chief Executive Officer, Acting Chief Financial Officer, for cause, effective immediately. Mr. Gregoriou was also removed as Chairman of the Board of Directors.

***Advent Technologies A/S declared bankrupt***

On July 25, 2024, Advent Technologies A/S was declared bankrupt by the court in Aalborg, Denmark. The petition was brought by IDA, the union of engineers with a claim for €402,000. As the Company did not have the ability to pay the full amount due, the Danish court declared Advent Technologies A/S bankrupt. Advent Technologies A/S and its wholly-owned subsidiary Green Energy Philippines, Inc. will be liquidated by the court appointed trustee to settle all claims under the bankruptcy. The Company anticipates it will receive no residual assets from the bankruptcy. The remainder of the Company's legal entities have no plans to declare bankruptcy and will continue as going concern entities.

[**Table of Contents**](#toc)

***Arbitration Award***

On August 16, 2024, the Company was informed that an arbitration decision and award was decided in favor of F.E.R. in the amount of approximately €4.5 million. The Company appealed the decision and instructed its counsel to file a motion with the Higher Regional Court of Frankfurt to set aside the arbitral award. On July 1, 2025, the Company entered into a settlement agreement and release (the "Settlement Agreement") with F.E.R.. Pursuant to the terms of the Settlement Agreement, the Company has agreed to pay F.E.R. €5,366,625.55 with such payment to be made in monthly installments of €35 thousand beginning on September 1, 2025. The Company will be entitled to a reduced settlement amount totaling €4,366,625.55 if payment is made by no later than June 30, 2026. In exchange for such reduced settlement amount, both Parties agreed to a mutual release of claims against the other Party.

**Key Factors Affecting Our Results**

Advent believes that its performance and future success depend on several factors that present significant opportunities for Advent but also pose risks and challenges, including those discussed below.

***Increased Customer Demand***

Based on conversations with existing customers and incoming inquiries from new customers, Advent anticipates substantial increased demand for its fuel cell systems and MEAs from a wide range of customers as it scales up its production facilities and testing capabilities, and as the awareness of its MEA capabilities becomes widely known in the industry. Advent expects both its existing customers to increase order volume, and to generate substantial new orders from major organizations, with some of whom it is already in discussions regarding prospective commercial partnerships and joint development agreements. As of December 31, 2024, Advent was still generating a low level of revenues compared to its future projections and has not made any commercial sales to these major organizations.

***Successful development of the Advanced MEA product***

Advent's future success depends in large part on the increasing integration of the hydrogen fuel cell into the energy transition globally over the next decade. In order to become cost-competitive with existing renewable power generation and energy storage technology and achieve widespread adoption, fuel cells will need to achieve substantial improvement in the cost/kw performance ratio delivered to prospective fuel cell customers, predominantly OEMs, System Integrators and major energy companies. Advent expects to play an important enabling role in the adoption of hydrogen fuel cells, as its MEA technology is the critical determining factor in the cost/kw performance ratio of the fuel cells. In partnership with the Los Alamos National Laboratory, Advent is currently developing its next generation MEA technology ("Advanced MEA") which is anticipated to deliver as much as three times the power output of its current MEA product. While Advent is already projecting being able to pass through cost benefits to its customers through economies of scale as it increases MEA production, the successful development of the Advanced MEA will be an important factor in delivering the required improvement in cost/kw performance to Advent's customers.

**Basis of Presentation**

Advent's consolidated financial statements have been prepared in accordance with U.S. GAAP. The Company has determined that it operates in one reportable segment. See Note 1 "*Basis of Presentation*" in the Notes to the Consolidated Financial Statements included with the 2024 10-K.

**Components of Results of Operations**

***Revenue***

Revenues consist of sales of goods (MEAs, membranes, fuel cell stacks, fuel cell systems and electrodes) and servicing of those systems, as well as engineering fees and revenue from Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) with world-leading OEMs for the development of joint products. Advent expects revenues to increase materially and be weighted towards JDAs and TAAs over time.

[**Table of Contents**](#toc)

***Cost of Revenues***

Cost of revenues consists of consumables, raw materials, processing costs and direct labor costs associated with the assembly, manufacturing, and servicing of MEAs, membranes, fuel cell stacks and systems and electrodes. Advent expects its cost of revenues to decrease as the focus on providing services under Joint Development Agreements and Technology Assessment Agreements and its shift from product sales. Advent also recognizes slow moving inventory reserve in cost of revenues. Advent recognizes cost of revenues in the period that revenues are recognized.

***Income from Grants***

Income from grants consists of cash subsidies received from research agencies and other national and international organizations in support of Advent's research and development activities. Advent expects to continue to be eligible for grant income and remains in discussion with a number of prospective grantors in relation to a number of product development activities.

***Research and Development Expenses***

Research and development expenses consist of costs associated with Advent's research and development activities, such as laboratory costs and sample material costs. Advent expects its research and development activities to increase substantially as it invests in improved technology and products.

***Administrative and Selling Expenses***

Administrative and selling expenses consist of travel expenses, indirect labor costs, fees paid to consultants, third parties and service providers, taxes and duties, legal and audit fees, depreciation, business development salaries and limited marketing activities, and incentive and stock-based compensation expense. Advent expects administrative and selling expenses to increase in line with production and revenue as the business scales up, and as a result of operating as a public company, including compliance with the rules and regulations of the SEC, legal, audit, additional insurance expenses, investor relations activities and other administrative and professional services.

***Other Income / (Expenses), Net***

Other income / (expenses) consist of additional de minimis incidental income / (expenses) incurred by the business. These income / (expenses) are expected to remain at a de minimis level in the future.

***Change in Fair Value of Warrant Liability***

Change in fair value of warrant liability amounting to nil and $0.1 million for the three and six months ended June 30, 2025 and 2024, respectively, represents the change in fair value of the Private Placement Warrants and Working Capital Warrants.

***Finance income / (expenses), Net***

Finance income / (expenses) consist mainly of bank and interest charges.

***Foreign Exchange Gains / (Losses), Net***

Foreign exchange gains / (losses) consists of foreign exchange gains or losses on transactions denominated in foreign currencies and on translation of monetary items denominated in foreign currencies. As Advent scales up, our foreign exchange exposure is likely to increase given its revenues are denominated in both euros and dollars, and a portion of the our costs are denominated in euros.

***Amortization of Intangibles***

The amortization expense for the intangible assets for the six months ended June 30, 2025 and 2024 was $14.0 thousand and $2.0 thousand, respectively.

[**Table of Contents**](#toc)

***Income taxes***

During the three and six months ended June 30, 2025, the Company recorded income tax expense of nil and $(1) thousand. During the three and six months ended June 30, 2024, the Company recorded income tax benefit of nil and $0.1 million, respectively, mainly related to net operating loss carryforwards.

As of June 30, 2025 and December 31, 2024, the Company provided a valuation allowance to offset the deferred tax asset related to the net operating loss carryforwards.

**Results of Operations**

***Comparison of the Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024***

The following table sets forth a summary of our consolidated results of operations for the three months ended June 30, 2025 and 2024, and the changes between periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended**<br> **June 30,**<br> (Unaudited) | **Three months ended**<br> **June 30,**<br> (Unaudited) | | |
| <br>(Amounts in thousands, except share and per share amounts) | **2025** | **2024** |<br>**$ change** |<br>**% change** |
| Revenue, net | $99 | $654 | $(555) | (84.9)% |
| Cost of revenues | (392) | (83) | (309) | 372.3% |
| **Gross profit / (loss)** | **(293)** | **571** | **(864)** | **(151.3)%** |
| &nbsp;&nbsp;&nbsp;Income from grants | 1 | 424 | (423) | (99.8)% |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (342) | (695) | 353 | (50.8)% |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (1956) | 2374 | (4330) | (182.4)% |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | (7) | (1) | (6) | 600.0% |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (328) | - | (328) | N/A |
| **Operating loss** | **(2925)** | **2673** | **(5598)** | **(209.4)%** |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (325) | (54) | (271) | 501.9% |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | 293 | (156) | 449 | (287.8)% |
| &nbsp;&nbsp;&nbsp;Loss contingency | (840) | 36 | (876) | (2433.3)% |
| &nbsp;&nbsp;&nbsp;Net gains / (losses) on disposal/write-off property, plant and equipment and intangible assets |  | (12714) | 12714 | (100.0)% |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | - | 2 | (2) | (100.0)% |
| **Loss before income tax** | **(3797)** | **(10213)** | **6416** | **(62.8)%** |
| &nbsp;&nbsp;&nbsp;Income tax (expense) | - | - | - | N/A |
| **Net loss from continuing operations** | $**(3797)** | $**(10213)** | $**6416** | **(62.8)%** |
| **Income (loss) from discontinued operations** | **-** | **(1060)** | **1060** | **(100.0)%** |
| **Net loss** | **(3797)** | **(11273)** | **7476** | **(66.3)%** |
| **Net loss per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from continuing operations** | **(1.42)** | **(3.88)** | **2.46** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from discontinued operations** | **N/A** | **(0.40)** | **0.40** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Basic loss per share** | **(1.42)** | **(4.28)** | **2.86** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Basic weighted average number of shares** | **2665089** | **2634179** | **N/A** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from continuing operations** | **(1.42)** | **(3.88)** | **2.46** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from discontinued operations** | **N/A** | **(0.40)** | **0.40** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share** | **(1.42)** | **(4.28)** | **2.86** | **N/A** |
| &nbsp;&nbsp;&nbsp;**Diluted weighted average number of shares** | **2665089** | **2634179** | **N/A** | **N/A** |

---

[**Table of Contents**](#toc)

***Revenue, net***

Our total revenue decreased by approximately $0.6 million from approximately $0.7 million in the three months ended June 30, 2024 to approximately $0.1 million in the three months ended June 30, 2025. The decrease was driven by an increase in contract liabilities related to our services provided under Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) in the three months ended June 30, 2025 which are expected to be delivered later in 2025.

***Cost of Revenues***

Cost of revenues increased by approximately $0.3 million from approximately $0.1 million in the three months ended June 30, 2024 to approximately $0.4 million in the three months ended June 30, 2025. The increase in cost of revenues was related to an increase in fixed costs during the period.

***Income from Grants***

Our income from grants decreased by approximately $0.4 million from approximately $0.4 million in the three months ended June 30, 2024 to approximately $1 thousand in the three months ended June 30, 2025. The decrease was driven by an increase in deferred revenue from grants in the three months ended June 30, 2025 which is expected to be recognized later in 2025.

***Research and Development Expenses***

Research and development expenses were approximately $0.3 million and $0.7 million in the three months ended June 30, 2025 and 2024, respectively, primarily related to internal research and development costs.

***Administrative and Selling Expenses***

Administrative and selling expenses were approximately $2.0 million in the three months ended June 30, 2025, and a $2.4 million reversal in the three months ended June 30, 2024.

***Sublease income***

The Company earned sublease income of $0.1 million in the six months ended 2024. The sublease was terminated in April 2024.

***Credit Loss – Customer Contracts***

We recognized credit losses on customer contracts of $0.5 million during the three months ended June 30, 2025, which was an increase of $0.5 million from June 30, 2024.

***Change in fair value of Warrant Liability***

The change in fair value of warrant liability amounting to nil and $0.1 million was due to the change in fair value of the Private Placement Warrants and Working Capital Warrants for the six months ended June 30, 2025 and 2024, respectively.

***Finance income / (expenses), net***

The Company accrued interest expense of $(0.6) million related to the short term note payable and the loss contingency accrued in relation to the decision of F.E.R. in the amount of approximately €4.5 million for the six months ended June 30, 2025.

The Company accrued interest expense of $(0.3) million related to the loss contingency accrued in relation to the decision of F.E.R. in the amount of approximately €4.5 million for the six months ended June 30, 2024.

[**Table of Contents**](#toc)

***Loss contingency***

On August 16, 2024, the Company was informed that an arbitration decision and award was decided in favor of F.E.R. in the amount of approximately €4.5 million. The Company appealed the decision and instructed its counsel to file a motion with the Higher Regional Court of Frankfurt to set aside the arbitral award. On July 1, 2025, the Company entered into a settlement agreement and release (the "Settlement Agreement") with F.E.R.. Pursuant to the terms of the Settlement Agreement, the Company has agreed to pay F.E.R. €5,366,625.55 with such payment to be made in monthly installments of €35 thousand beginning on September 1, 2025. The Company will be entitled to a reduced settlement amount totaling €4,366,625.55 if payment is made by no later than June 30, 2026. In exchange for such reduced settlement amount, both Parties agreed to a mutual release of claims against the other Party.

***Net gains/ (losses) on disposal/write-offs of property, plant and equipment and intangible assets***

We recognized losses of $(12.7) million during the six months ended June 30, 2025, which is an increase of $(12.7) million from June 30, 2024. The losses primarily relate to the disposal of certain coating machines at the Hood Park facility and the termination of the Hood Park lease.

***Liquidity and Capital Resources***

At June 30, 2025 and for the six months then ended, the Company had $0.1 million in cash and cash equivalents, used $1.2 million of cash in operating activities, had $1.5 million in current assets and $29.4 million in current liabilities, leaving the Company a working capital deficit of $(27.8) million.

A major financial challenge and significant risk facing the Company is a lack of positive cash flow and liquidity. The Company's ability to meet its liquidity needs will largely depend on its ability to raise capital in the very short term and generate cash in the future. If the Company is unable to obtain sufficient funding, it could be required to delay its development efforts, limit activities, and further reduce research and development costs, which could adversely affect its business prospects and delivery of contractual obligations. A cash shortfall at any point in time over the next twelve months could result in the Company failing to meet its overdue and current obligations which could trigger action against the Company and/or its subsidiaries for liquidation by employees, authorities, or creditors. Because of the uncertainty in securing additional funding, delays in growth of revenue, failure to materialize cost-cutting efforts and the insufficient amount of cash and cash equivalents as of the consolidated financial statement filing date, management has concluded that substantial doubt exists with respect to the Company's ability to continue as a going concern for one year from the date the consolidated financial statements are issued.

The following table sets forth a summary of our consolidated cash flows for the six months ended June 30, 2025 and 2024, and the changes between periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) | | |
| <br>(Amounts in thousands) | **2025** | **2024** | **$ change** | **% change** |
| **Net Cash used in Operating Activities** | $**(1159)** | $**(4001)** | $**2842** | **(71.0)%** |
| **Cash Flows from Investing Activities:** |  |  |  |  |
| Proceeds from sale of property and equipment |  | 300 | (300) | (100.0)% |
| Purchases of property and equipment | (5) | (28) | 23 | (82.1)% |
| Purchases of intangible assets | (24) | - | (24) | N/A |
| **Net Cash provided by / (used in) Investing Activities** | $**(29)** | $**272** | $**(301)** | **(110.7)%** |
| **Cash Flows from Financing Activities:** |  |  |  |  |
| Proceeds from issuance of common stock and paid-in capital |  | 282 | (282) | (100.0)% |
| Repayments of debt | (1442) |  | (1442) | N/A |
| Proceeds from borrowings | 2335 | **-** | 2335 | N/A |
| **Net cash provided by Financing Activities** | $**893** | $**282** | $**611** | **216.7%** |
| **Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents** | $**(295)** | $**(3447)** | $**3152** | **(91.4)%** |
| Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (11) | (7) | (4) | 57.1% |
| **Net cash provided by / (used in) discontinued operations:** |  |  |  |  |
| Cash used in operating activities |  | (816) | 816 | (100.0)% |
| Cash provided by financing activities | - | 540 | (540) | (100.0)% |
| **Net cash used in discontinued operations** | **-** | **(276)** | **276** | **(100.0)%** |
| **Net decrease in cash and cash equivalents** | **(306)** | **(3730)** | **3424** | **(91.8)%** |
| Cash and cash equivalents at the beginning of period | 381 | 4412 | (4031) | (91.4)% |
| **Cash and cash equivalents at the end of period** | $**75** | $**682** | $**(607)** | **(89.0)%** |

---

[**Table of Contents**](#toc)

***Cash flows used in Operating Activities***

Advent's cash flows from operating activities reflect the income statement position adjusted for working capital movements in current assets and liabilities. As Advent grows, it expects that operating cash flows will be affected by increased working capital needs to support growth in personnel-related expenditures and fluctuations in accounts receivable, inventory, accounts payable and other current assets and liabilities.

Net cash used in operating activities was approximately $(1.2) million and $(4.0) million for the six months ended June 30, 2025 and 2024, respectively, which related to outflows in connection with administrative and selling expenses, research and development expenses, and costs associated with insurances services and other personnel costs.

***Cash Flows provided by / (used in) Investing Activities***

Advent's cash flows provided by / (used in) investing activities was approximately $(0.1) million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively, and which mostly related to the acquisition and sale of plant and equipment, respectively.

***Cash Flows provided by Financing Activities***

Advent's cash flows provided by financing activities was approximately $0.9 million for the six months ended June 30, 2025, which represents the net proceeds from borrowing.

Advent's cash flows from financing activities was approximately $0.3 million for the six months ended June 30, 2024, which related to the net cash proceeds from the sale of shares under the Lincoln Park facility.

***Reverse Stock Split***

On April 29, 2024 and April 30, 2024, our stockholders and Board, respectively, approved a reverse stock split of our Common Stock, at a ratio of 1-for-30 (the "Reverse Stock Split"), as of the Effective Date. The Effective Date of the Reverse Stock Split with the Secretary of the Commonwealth of Massachusetts was 5:00 p.m. on May 13, 2024 and May 14, 2024 in the marketplace.

On the Effective Date, the total number of shares of our Common Stock held by each shareholder was converted automatically into the number of whole shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by such shareholder immediately prior to the Reverse Stock Split, divided by (ii) 30.

No fractional shares were issued in connection with the Reverse Stock Split, and stockholders who would otherwise be entitled to a fractional share received a proportional cash payment in April 2024.

The Company is authorized to issue 501,000,000 shares of Common Stock and that number did not change as a result of the Reverse Stock Split.

The Reverse Stock Split did not have any effect on the stated par value of our Common Stock. The rights and privileges of the holders of shares of Common Stock are unaffected by the Reverse Stock Split. All of our options, warrants and convertible securities outstanding immediately prior to the Reverse Stock Split have been appropriately adjusted by dividing the number of shares of Common Stock into which the options, warrants and convertible securities are exercisable or convertible by 30.

[**Table of Contents**](#toc)

**Contract Assets and Contract Liabilities**

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. As of June 30, 2025 and December 31, 2024, Advent recognized contract assets of $0.6 million and $0.6 million, respectively, on the consolidated balance sheets.

Advent recognizes contract liabilities when we receive customer payments or have the unconditional right to receive consideration in advance of the performance obligations being satisfied on our contracts. We receive payments from customers based on the terms established in our contracts. Contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheets based on the timing of when we expect to recognize the related revenue. As of June 30, 2025 and December 31, 2024, Advent recognized contract liabilities of $3.7 million and $3.2 million, respectively, in the consolidated balance sheets.

**Off-Balance Sheet Commitments and Arrangements**

Since the date of our incorporation, Advent has not engaged in any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

**Critical Accounting Policies and Estimates**

Advent's consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires Advent to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the balance sheet date, as well as the reported expenses incurred during the reporting period. Management bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates, and such differences could be material to Advent's financial statements.

***Revenue Recognition from January 1, 2019***

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted ASU No. 2014-09 on January 1, 2019, using the modified retrospective approach to all contracts not completed at the date of initial application.

In accordance with ASC 606, revenue is recognized when control of the promised goods or services are transferred to a customer in an amount that reflects the consideration that Advent expects to receive in exchange for those services. We apply the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its arrangements:

● identify the contract with a customer,

● identify the performance obligations in the contract,

● determine the transaction price,

● allocate the transaction price to performance obligations in the contract, and

● recognize revenue as the performance obligation is satisfied.

[**Table of Contents**](#toc)

With significant and recurring customers, we negotiate written master agreements as framework agreements (general terms and conditions of trading), following individual purchase orders. For customers with no master agreements, the approved purchase orders form the contract. Effectively, contracts under the revenue standard have been assessed to be the purchase orders agreed with customers.

We have assessed that each product sold is a single performance obligation because the promised goods are distinct on their own and within the context of the contract. In cases where the agreement includes customization services for the contracted products, we are providing integrated services; therefore, the goods are not separately identifiable, but are inputs to produce and deliver a combined output and form a single performance obligation within the context of the contract. Furthermore, we assessed whether it acts as a principal or agent in each of its revenue arrangements and has concluded that in all sales transactions it acts as a principal. Additionally, we, taking into consideration the guidance and indicative factors provided by ASC 606, concluded that it provides assurance type warranties (warranty period is up to two years) as it does not provide a service to the customer beyond fixing defects that existed at the time of sale. We, based on historical performance, current circumstances, and projections of trends, estimated that no allowance for returns as per warranty policy should be recognized, at the time of sale, accounted for under ASC 460, Guarantees.

Under ASC 606, we estimate the transaction price, including variable consideration, at the commencement of the contract and recognize revenue over the contract term, rather than when fees become fixed or determinable. In other words, where contracts with customers include variable consideration (i.e. volume rebates), we estimate at contract inception the variable consideration and adjust the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Furthermore, no material rights or significant financing components have been identified in our contracts. Payment terms generally include advance payment requirements. The time between a customer's payment and completion of the performance obligation is less than one year. Payment terms are in the majority fixed and do not include variable consideration, except from volume rebates.

Revenue from satisfaction of performance obligations is recognized based on identified transaction price. The transaction price reflects the amount to which we have rights under the present contract. It is allocated to the distinct performance obligations based on standalone selling prices of the services promised in the contract. In cases of more than one performance obligation, we allocate transaction price to the distinct performance obligations in proportion to their observable stand-alone selling prices and recognize revenue as those performance obligations are satisfied.

In the majority of cases of product sales, revenue is recognized at a point in time when the customer obtains control of the respective goods that is, when the products are shipped from our facilities as control passes to the customer in accordance with agreed contracts and the stated shipping terms. In cases where the contract includes customization services, in which one performance obligation is identified, revenue is recognized over time as our performance does not create an asset with alternative use and we have an enforceable right to payment for performance completed to date. We use the input method (i.e., cost-to-cost method) to measure progress towards complete satisfaction of the performance obligation.

***Income from grants and related deferred income***

Grants include cash subsidies received from various institutions and organizations. Grants are recognized as other income. Such amounts are recognized in the consolidated statements of operations when all conditions attached to the grants are fulfilled.

Condition to the grants would not be fulfilled unless related costs have been characterized as eligible by the grantors, are actually incurred and there is certainty that costs are allowable. These grants are recognized as deferred income when received and recorded in income when the eligible and allowable related costs and expenses are incurred. Under all grant programs, a coordinator is specified. The coordinator, among other, receives the funding from the grantor and proceeds to its distribution to the parties agreed in the process specified in the program. We assessed whether it acts as a principal or agent in its role as a coordinator for specific grants and has concluded that in all related transactions it acts as an agent.

[**Table of Contents**](#toc)

***Income Taxes***

Advent follows the asset and liability method of accounting for income taxes under ASC 740, Income Taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits, such as net operating loss carry forwards, to the extent that it is more likely than not that such benefits will be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Valuation allowances are reassessed periodically to determine whether it is more likely than not that the tax benefits will be realized in the future and if any existing valuation allowance should be released.

Part of the Advent's business activities are conducted through its subsidiaries outside of U.S. Earnings from these subsidiaries are generally indefinitely reinvested in the local businesses. Further, local laws and regulations may also restrict certain subsidiaries from paying dividends to their parents. Consequently, Advent generally does not accrue income taxes for the repatriation of such earnings in accordance with ASC 740, "Income Taxes." To the extent that there are excess accumulated earnings that we intend to repatriate from any such subsidiaries, we recognize deferred tax liabilities on such foreign earnings.

Advent assesses its income tax positions and records tax benefits for all years subject to examination based on the evaluation of the facts, circumstances, and information available at each reporting date. For those tax positions with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information, Advent records a tax benefit. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. Advent recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. Advent recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.

For the six months ended June 30, 2025 and 2024, net income tax (expenses) benefits of $(1) thousand and $0.1 million, respectively, have been recorded in the consolidated statements of operations. Advent is currently not aware of any issues under review that could result in significant accruals or material deviation from its position. Advent is subject to income tax examinations by major taxing authorities.

Advent and its U.S. subsidiaries may be subject to potential examination by U.S. federal, state and city, while Advent's subsidiaries outside U.S. may be subject to potential examination by their taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with the U.S. federal, state and city, and tax laws in the countries where business activities of Advent's subsidiaries are conducted. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into legislation. As part of the legislation, the U.S. corporate income tax rate was reduced from 35% to 21%, among other changes.

[**Table of Contents**](#toc)

***Warrant Liability***

Advent accounts for the 878,985 warrants (comprising of 813,314 Public Warrants and 65,671 Private Placement Warrants) issued in connection with the initial public offering and the 13,333 Working Capital Warrants issued at the consummation of the Business Combination in accordance with ASC 815-40-15-7D. If the warrants do not meet the criteria for equity treatment, they must be recorded as liabilities. We have determined that only the Private Placement Warrants and Working Capital Warrants must be recorded as liabilities and accordingly, we classify these warrant instruments as liabilities at their fair value and adjusts the instruments to fair value at each reporting period. These liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. The fair value of the Private Placement Warrants and the Working Capital Warrants has been determined using either the quoted price, if available, or was based on a modified Black-Scholes-Merton model. The fair value of the Private Placement Warrants and the Working Capital Warrants has been determined based on a modified Black-Scholes-Merton model for the six months ended June 30, 2025 and 2024.

***Recent Accounting Pronouncements***

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by Advent as of the specified effective date. Unless otherwise discussed, Advent believes that the impact of recently issued standards that are not yet effective will not have a material impact on Advent's financial position or results of operations under adoption.

See Note 2 in the condensed consolidated financial statements included elsewhere in this report for more information about recent accounting pronouncements, the timing of their adoption and Advent's assessment, to the extent Advent has made one, of their potential impact on Advent's financial condition and results of operations.

***Supplemental Non-GAAP Measures and Reconciliations***

In addition to providing measures prepared in accordance with GAAP, we present certain supplemental non-GAAP measures. These measures are EBITDA, Adjusted EBITDA and Adjusted Net Income / (Loss), which we use to evaluate our operating performance, for business planning purposes and to measure our performance relative to that of our peers. These non-GAAP measures do not have any standardized meaning prescribed by GAAP and therefore may differ from similar measures presented by other companies and may not be comparable to other similarly titled measures. We believe these measures are useful in evaluating the operating performance of Advent's ongoing business. These measures should be considered in addition to, and not as a substitute for net income, operating expense and income, cash flows and other measures of financial performance and liquidity reported in accordance with GAAP. The calculation of these non-GAAP measures has been made on a consistent basis for all periods presented.

***EBITDA and Adjusted EBITDA***

These supplemental non-GAAP measures are provided to assist readers in determining our operating performance. We believe this measure is useful in assessing performance and highlighting trends on an overall basis. We also believe EBITDA and Adjusted EBITDA are frequently used by securities analysts and investors when comparing our results with those of other companies. EBITDA differs from the most comparable GAAP measure, net income / (loss), primarily because it does not include interest, income taxes, depreciation of property, plant and equipment, and amortization of intangible assets. Adjusted EBITDA adjusts EBITDA for items such as one-time transaction costs, asset impairment charges, and fair value changes in the warrant liability.

[**Table of Contents**](#toc)

The following tables show a reconciliation of net loss to EBITDA and Adjusted EBITDA for the three months ended June 30, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended<br> June 30,**<br> (Unaudited) | **Three months ended<br> June 30,**<br> (Unaudited) | | **Six months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) | |
| **EBITDA and Adjusted EBITDA**<br>*(in Millions of US dollars)* | **2025** | **2024** |<br>**$ change** | **2025** | **2024** |<br>**$ change** |
| **Net loss from continuing operations** | $**(3.80)** | $**(10.21)** | **6.41** | $**(7.07)** | $**(19.63)** | **12.56** |
| Depreciation of property and equipment | $0.20 | $- | 0.20 | $0.39 | $0.69 | (0.30) |
| Amortization of intangibles | $- | $- |  | $0.01 | $- | 0.01 |
| Finance income / (expenses), net | $0.33 | $0.06 | 0.27 | $0.57 | $0.29 | 0.28 |
| Loss contingency | $0.84 | $(0.04) | 0.88 | $1.03 | $4.87 | (3.84) |
| Net gains / (losses) on disposal/write-off property, plant and equipment and intangible assets | $- | $12.72 | (12.72) | $- | $12.74 | (12.74) |
| Other income / (expenses), net | $- | $(0.01) | 0.01 | $- | $(0.01) | 0.01 |
| Foreign exchange differences, net | $(0.29) | $0.16 | (0.45) | $(0.39) | $0.17 | (0.56) |
| Income taxes | $- | $- | - | $- | $(0.06) | 0.06 |
| **EBITDA** | $**(2.72)** | $**2.68** | **(5.40)** | $**(5.46)** | $**(0.94)** | **(4.52)** |
| Net change in warrant liability | $- | $- | - | $- | $(0.06) | 0.06 |
| **Adjusted EBITDA** | $**(2.72)** | $**2.68** | **(5.40)** | $**(5.46)** | $**(1.00)** | **(4.46)** |

---

***Adjusted Net Loss from continuing operations***

This supplemental non-GAAP measure is provided to assist readers in determining our financial performance. We believe this measure is useful in assessing our actual performance by adjusting our results from continuing operations for changes in warrant liability and one-time transaction costs. Adjusted Net Loss from continuing operations differs from the most comparable GAAP measure, net loss, primarily because it does not include one-time transaction costs, asset impairment charges and warrant liability changes. The following table shows a reconciliation of net income/(loss) for three months ended June 30, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended**<br> **June 30,**<br> (Unaudited) | **Three months ended**<br> **June 30,**<br> (Unaudited) | | **Six months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) | |
| **Adjusted Net Loss**<br>*(in Millions of US dollars)* | **2025** | **2024** |<br>**$ change** | **2025** | **2024** |<br>**$ change** |
| **Net loss** | $**(3.80)** | $**(10.21)** | **6.41** | $**(7.07)** | $**(19.63)** | **12.56** |
| Net change in warrant liability | $- | $- | - | $- | $(0.06) | 0.06 |
| **Adjusted Net Loss** | $**(3.80)** | $**(10.21)** | **6.41** | $**(7.07)** | $**(19.69)** | **12.62** |

---

[**Table of Contents**](#toc)

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

Advent is exposed to a variety of market and other risks, including the effects of changes in interest rates and inflation, as well as risks to the availability of funding sources, hazard events and specific asset risks.

***Interest Rate Risk***

Advent holds cash and cash equivalents for working capital, investment and general corporate purposes. As of June 30, 2025, Advent had an unrestricted cash balance of approximately $0.1 million, consisting of operating and savings accounts which are not affected by changes in the general level of U.S. interest rates. Advent has short-term debt of $1.5 million.

***Inflation Risk***

Advent does not believe that inflation currently has a material effect on its business. To mitigate cost increases caused by inflation, Advent has taken steps such as searching for alternative supplies at a lower cost and pre-buying materials and supplies at a more advantageous price in advance of its intended use.

***Foreign Exchange Risk***

Advent has costs and revenues denominated in Euros, and therefore is exposed to fluctuations in exchange rates. To date, Advent has not entered into any hedging transactions to mitigate the effect of foreign exchange due to the relatively low exposure. As we increase in scale, we expect to continue to realize a portion of our revenues and costs in foreign currencies, and therefore expect to put in place appropriate foreign exchange risk mitigation features in due course.

**Controls and Procedures.**

*Evaluation of Disclosure Controls and Procedures*

Our management, with the participation of our Chief Executive Officer (currently also serving as Interim Chief Financial Officer) has evaluated the effectiveness of the design and operation of our 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 on Form 10-Q.

The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits 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, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As described below, based on the evaluation of our disclosure controls and procedures as of the end of the period covered by this Report on Form 10-Q, management identified material weaknesses in our internal control over financial reporting. As a result of the material weaknesses, our Chief Executive Officer (currently also serving as Interim Chief Financial Officer) has concluded that, as of June 30, 2025, our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized, and reported as and when required.

[**Table of Contents**](#toc)

Notwithstanding this material weaknesses identified, our management, including our Chief Executive Officer (currently also serving as Interim Chief Financial Officer), has concluded that our financial statements included in this Report on Form 10-Q present fairly, in all material respects, our financial position, results of operations, and cash flows for the periods presented in accordance with U.S. GAAP.

*Management's Quarterly Report on Internal Control over Financial Reporting*

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) or 15d-15(f) of the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP, and includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2025, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).

Based on this assessment and the evaluation of those criteria, management, including our Chief Executive Officer (currently also serving as Interim Chief Financial Officer), concluded that our internal control over financial reporting was not effective as of June 30, 2025, due to the material weaknesses described below.

A material weakness (as defined in Rule 12b-2 under the Exchange Act) is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis.

**Entity-Level Control Environment**

The entity-level control environment did not adequately support the prevention, detection or correction of material misstatements. We identified deficiencies in all five components of the entity-level control environment, including the control environment, control activities, information and communication, monitoring and risk assessment that aggregated into material weaknesses. Overall, we did not sufficiently establish internal control policies and procedures in our material business processes related to the financial reporting process.

**Financial Statement Close and Reporting Process**

We did not adequately design and execute controls that addressed the relevant financial statement assertions over the close and reporting process including review controls, journal entries and adjustments during the period-end reporting, changes to general ledger master data. We lacked in certain instances sufficient and appropriate documentation, reconciliation controls and segregation of duties controls.

[**Table of Contents**](#toc)

**IT Processes**

Internal controls that address the IT risks of applications were not adequately designed and implemented. Management did not adequately perform controls or retain sufficient and appropriate evidence over 1) user access controls 2) application change controls and 3) the timeliness of segregation of duties access monitoring procedures.

To mitigate the potential impact of material weaknesses, and prior to filing this report, we performed additional analysis and other post-closing procedures to determine that our consolidated financial statements are prepared in accordance with U.S. GAAP. These material weaknesses did not result in any material misstatements and there were no changes to previously released financial statements. Notwithstanding our material weaknesses, we have concluded that the financial statements and other financial information included in this prospectus fairly present in all material respects our financial position, results of operations, and cash flows for the periods presented in conformity with U.S. GAAP.

<u>**Remediation Plan**</u>

Following the identification of the material weaknesses in our internal control over financial reporting as of June 30, 2025, and with the oversight of the Audit Committee of our Board of Directors, we will commence remediation efforts to enhance our control environment.

● Hiring and augmenting our team with knowledgeable and qualified IT, accounting, and finance professionals.

● Enhancing the robustness and effectiveness of our IT systems and control environment.

● Enhancing related policies and process documentation, implementing new controls or redesigning existing ones, and improving the skills of process owners.

● Training process owners, evaluating the adoption of revised policies and procedures, and monitoring results.

● Increasing the frequency and independence of testing the design and operating effectiveness of controls.

Management is committed to successfully implementing the remediation plan as promptly as possible. Our plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects. See "Risk Factors—Risks Related to Our Operations and Business — We have identified material weaknesses in our system of internal controls pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. If not remediated, these material weaknesses could result in material misstatements in our consolidated financial statements. We may be unable to develop, implement and maintain appropriate controls in future periods." within our 2024 10-K.

*Changes in Internal Control over Financial Reporting*

**Financial Statement Close and Reporting Process**

We did not adequately maintain accounting records at the consolidated level, resulting in a loss of access to underlying systems and records with the bankruptcy of Advent Technologies A/S in July 2024. The Company generated estimates using internal management reporting and bank statements as part of the September 30, 2024, close and reporting process.

Except as otherwise noted above and also under "Remediation Plan," including the on-going remediation efforts described, there were no other changes in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a–15(f) and 15d-15(f)) during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our plans for remediating the material weaknesses, described above, will constitute changes in our internal control over financial reporting, prospectively, when such remediation plans are effectively implemented.

[**Table of Contents**](#toc)

**BUSINESS**

**Overview**

We are an advanced materials and technology development company operating in the fuel cell and hydrogen technology space, including liquid hydrogen carriers such as methanol. We are a world-leading company in the development of HT-PEM (High Temperature Proton Exchange Membrane) technology (with approximately 150 patents issued, pending, or licensed worldwide). The HT-PEM fuel cell technology enables off-grid power systems to produce clean power from various green fuels (hydrogen, methanol, bio and e-Methanol, and renewable natural gas) and to function with higher efficiency at extreme ambient temperatures and in general extreme environmental conditions (humidity, air pollution). Advent's main operations focus on developing and manufacturing the Membrane Electrode Assembly (MEA) and the fuel cell stack, which is the core electrochemical element and the most critical component of the fuel cell. The MEA and the fuel cell stack largely determines lifetime, power density, efficiency, and overall cost of installation and operation for all applications. Advent is working with global market-leading OEMs with the goal of bringing to the market complete fuel cell systems for a range of applications in the stationary power markets (backup, off-grid, and portable power) and the heavy-duty mobility markets (automotive, aviation, marine).

Our mission is to bring fuel cells that have a lower Total Cost of Ownership (TCO) to market when compared to diesel generators and internal combustion engines. Our goal is to become a leading provider of HT-PEM fuel cell systems, stacks and HT-PEM-based membrane electrode assemblies ("MEA" or "MEAs").

A large portion of our current revenue is derived from Joint Development Agreements (JDAs) and Technology Assessment Agreements (TAAs) with world-leading OEMs for the development of joint products. The ultimate goal is for OEMs to bring fuel cell systems specialized for each application to the market. These systems will be branded by the OEMs and function with Advent-inside technology (the Advent MEA and/or the Advent fuel cell stack). The Company also has extensive know-how and IP in the development of complete fuel cell systems that it intends to license out to OEMs and Tier 1s through technology license agreements. While fuel cell stack sales and associated revenue is expected to provide the majority of our income in the near future, the MEA innovation is expected to facilitate future strategic partnerships between Tier 1 suppliers and us and original equipment manufacturers ("OEMs") as these downstream manufacturers develop their own white-labeled HT-PEM products. We have had early success in forging such strategic partnerships, as with the case of Airbus for the aerospace sector and previously with Siemens Energy for the maritime industry. The US Army development contracts for human portable power fuel cells also fall under this category.

Our headquarters are in Livermore, California, and we have MEA and fuel cell stack product development facilities in Livermore, California and Patras, Greece. Our investment priorities are increasing MEA performance and meeting the milestones of the Joint Development Agreements we have with various customers and partners including Airbus, Hyundai Motors and the US Army. Our business priorities are to expand our network of strategic OEM relationships in the Automotive and large-scale Stationary power markets.

**Our Background**

Advent Technologies Holdings, Inc., a Delaware corporation (the "Company"), was originally named AMCI Acquisition Corp. ("AMCI"), and was established as a special purpose acquisition company, which completed its initial public offering in November 2018. AMCI was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, and, prior to the Business Combination, the Company was a "shell company" as defined under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), because it had no operations and nominal assets consisting almost entirely of cash.

[**Table of Contents**](#toc)

On February 4, 2021, AMCI consummated the previously announced business combination ("Business Combination") pursuant to the terms of that certain agreement and plan of merger (the "Agreement and Plan of Merger") dated October 12, 2020, by and among AMCI, AMCI Merger Sub Corp., a Delaware corporation and newly formed wholly-owned subsidiary of AMCI ("Merger Sub"), AMCI Sponsor LLC (the "Sponsor"), solely in the capacity as the representative from and after the effective time of the Business Combination for the stockholders of AMCI, Advent Technologies, Inc., a Delaware corporation ("Legacy Advent"), and Vassilios Gregoriou, solely in his capacity as the representative from and after the effective time for the Legacy Advent stockholders (the "Seller Representative"), as amended by Amendment No. 1 and Amendment No. 2 to the Agreement and Plan of Merger, dated as of October 19, 2020 and December 31, 2020, respectively, by and among AMCI, Merger Sub, Sponsor, Legacy Advent, and Seller Representative. In connection with the closing of the Business Combination (the "Closing"), AMCI acquired 100% of the stock of Legacy Advent (as it existed immediately prior to the Closing) and its subsidiaries.

On the Closing Date, and in connection with the Closing, AMCI changed its name to "Advent Technologies Holdings, Inc." and each outstanding share of Class A common stock, including any shares of Class B common stock that were converted into shares of Class A common stock, were redesignated as our Common Stock. We continued the listing of our Common Stock and public warrants (or tradeable warrants) on the Nasdaq under the symbols "ADN" and "ADNWW", respectively. Prior to the Closing, our Class A common stock, public warrants and units were listed on the Nasdaq Stock Market under the symbols "AMCI", "AMCIW" and "AMCIU".

The rights of holders of our Common Stock and warrants are governed by our second amended and restated certificate of incorporation, our amended and restated bylaws and the Delaware General Corporation Law (the "DGCL"), and in the case of the warrants, the Warrant Agreement, dated November 15, 2018 by and between AMCI and Continental Stock Transfer & Trust Company, as warrant agent. See the section entitled "*Description of Securities*".

**RESCUE Project**

The Company, through its wholly-owned subsidiary, Advent Technologies, SA, announced on February 11, 2025 the launch of the RESCUE project, a strategic initiative funded under the HORIZON-JTI-CLEANH2-2024-04-01 call for "Portable Fuel Cells for Backup Power During Natural Disasters to Support Critical Infrastructures." The four year project has a total budget of €5 million, and a funding rate of 70%. Advent's approved budget for the initiative is €2.16 million.

RESCUE aims to develop a certified, portable 50 kW power generator system designed to deliver reliable, sustainable backup power in critical situations based on HT-PEM technology. This collaborative effort brings together world-class partners, led by DLR (Germany) as the project coordinator, with participation from Advent Technologies (Greece), CERTH (Greece), THW (Germany), DTU (Denmark), and ProACT (Greece). The RESCUE project responds to the critical need for sustainable, portable power solutions, particularly in disaster-stricken regions where supporting essential infrastructure is paramount. By utilizing hydrogen and hydrogen-rich fuels, the project aims to set new benchmarks for energy resilience and environmental sustainability.

Advent Technologies will play a pivotal role in the project as the primary technology provider, focusing on system integration and innovation. The key deliverable is a 50 kW High-Temperature Proton Exchange Membrane Fuel Cell (HT-PEM FC) dual-fuel portable power generator system. This system will consist of a generator module and a fuel tank, each housed in separate 20-foot containers for optimal mobility and deployment.

[**Table of Contents**](#toc)

**RHyno Project**

The Advent Renewable Hydrogen Innovative Technologies (RHyno) project involves the establishment of infrastructure for developing and manufacturing innovative fuel cells, electrolysers, and their key components including Advent ground-breaking Membrane Electrode Assembly technology at a megawatt (MW) scale. RHyno aims to pioneer the use of innovative materials to enhance power density and lifespan while significantly reducing the weight and volume of power systems through a streamlined balance of plant.

The planned state-of-the-art facility is designed to optimize production processes, boost efficiency, and industrialize fuel cell and electrolyser technologies. These advancements are essential for decarbonizing carbon intense industries, such as the aviation, maritime and heavy-duty automotive sectors, with further potential for spillover to other sectors, positioning Advent at the forefront of the clean energy transition.

**The Fuel Cell Market**

Fuel cell and hydrogen technology are expected to play a critical role in global decarbonization. In order to meet the targets established in the Paris Climate Accords, which seek to mitigate climate change and maintain global temperatures less than 1.5°C-2.0°C above pre-industrial levels, the international community will need to accelerate the adoption of technologies like our fuel cells that reduce or eliminate emissions of carbon dioxide and other greenhouse gases.

In addition, the challenges associated with existing battery technology limit it from mass adoption across industries. Globally, an average of $38 billion per annum is expected to be invested in the hydrogen and fuel cell sector between 2020 and 2040 to increase production capacity while significantly lowering the cost of manufacturing. While the availability of hydrogen limited the fuel cell industry in the past, it is now expected to become an opportunity for growth, particularly in sectors such as industrials, power generation, and automotive.

We believe that fuel cells will be a key component of the future energy generation platform given that:

● Fuel cells generate electricity and heat from hydrogen-based fuels, thereby substantially reducing emissions of carbon dioxide and other pollutants generated by the combustion process in internal combustion engines ("ICE" or "ICEs") and diesel generators. Fuel cells can be powered autonomously for hours or days when the fuel comes from a discrete source or for longer when there is a pipeline or other large available source of fuel, such as a tank.

● Fuel cells utilize fuels with a high energy density relative to lithium-ion batteries and other battery technology (according to ARPA-E power densities, hydrogen contains 40,000 Wh/kg while lithium-ion batteries carry only about 260Wh/kg). This makes fuel cell technology well-suited for use in heavy-duty mobility (marine, aerospace, trucks) and off-grid energy generation applications where battery technology faces limitations such as lifespan, self-discharge, weight (for longer run times or higher power outputs, fuel cells are between 3 to 25 times lighter than batteries providing equivalent power), operation under almost any weather conditions, and recharge times.

● Hydrogen is already used to create liquid, synthetic fuels (eFuels like e-Methanol, made by combining hydrogen with carbon dioxide for a net-zero liquid fuel) that have the advantage of lower transportation costs and network infrastructure investment relative to hydrogen gas. Interim fuels like methanol produced from natural gas have become subject to increasing interest worldwide because they are currently available, cleaner, and less expensive than diesel. We believe e-Methanol has the potential to become a leading zero-emissions liquid fuel that can leverage the current global infrastructure from gas stations to fuel tankers and trucks. Given the urgency to decarbonize power generation and the challenges the investment requirement poses for developing countries, we expect methanol to have an increasingly significant role as a liquid hydrogen carrier and a low/no carbon dioxide emission alternative to oil.

[**Table of Contents**](#toc)

**The High-Temperature PEM Fuel Cell Technology**

Our fuel cells are developed with the general concept of using "Any Fuel. Anywhere." because of the HT-PEM technology we have pioneered since 2006. HT-PEM fuel cells have the advantage of operating with multiple low-carbon fuels (in addition to hydrogen), better heat exchange management, and efficiency, and they operate reliably under extreme conditions. Our high-temperature fuel cells operate between 80°C and 240°C, unlike typical LT-PEM fuel cells that are limited to below 100°C. This temperature advantage allows the fuel cell to work with other fuels and to have reliable operation at extreme conditions, which we believe are both significant competitive advantages for the stationary power generation market.

Within the fuel cell market, our products have significant advantages relative to those of our competitors, who are focused on low-temperature proton exchange membrane technology ("LT-PEM" or "LT-PEMs"). We believe these advantages will help us secure commercial opportunities in the fuel cell market and help drive the widespread adoption of fuel cell technology.

***A. "Any Fuel": Advent's HT-PEM fuel cells are designed to be multifuel***

***"e-Fuel-ready"***: While LT-PEMs require high-purity hydrogen to operate, our HT-PEMs can utilize low-cost and abundant hydrogen-carrier fuels, including methanol, natural gas, eFuels, hydrogen extracted from liquid organic hydrogen carriers, dimethyl ether, and renewable biofuels. We have focused on optimizing our fuel cells for methanol, a liquid green hydrogen carrier. Methanol comes in three main forms:

● Gray (natural-gas-based) methanol is the most promising interim semi-clean alternative to diesel.

Advantages: 40% lower CO2 emissions, lower price than diesel, no NOx, SOx.

● Biomethanol is currently available.

Advantages: 80% lower CO2 emissions, lower price than diesel, no NOx, SOx.

● e-Methanol is already under production, with approximately 78 projects underway globally, aiming to produce 11.7 million tones by 2028. eMethanol is produced from green hydrogen and is, therefore, a green liquid fuel.

Advantages: 80% lower CO2 emissions, lower price than diesel, no NOx, SOx.

To date, Advent has delivered over 1,200 of these systems, totaling 731,274 operational hours and consuming 1.2 million liters of methanol (as of March 2024). These systems serve telecom towers, critical infrastructure, and defense applications, capitalizing on logistical simplicity and the advantages of fuel availability.

**"Enhanced Market Opportunity"**: The infrastructure required for clean energy powered solely by high-purity hydrogen would cost trillions of dollars. In contrast, many of the hydrogen-carrier fuels, like e-Methanol, can use existing or in-development infrastructure and have a much lower transport cost than hydrogen. This key technology differentiator bypasses the need to commit to a specific energy distribution network and leverages existing infrastructure. Most importantly, it provides an immediately serviceable market today, while we believe many LT-PEM competitors may have to wait at least another decade for the availability of green, high-purity, inexpensive hydrogen, and potentially longer for the maturity of hydrogen transportation and storage networks. Given the urgency to decarbonize power generation and the investment challenges developing countries face, we expect e-Methanol to have an increasingly significant role as a liquid hydrogen carrier and a low or no carbon dioxide emission alternative to oil.

[**Table of Contents**](#toc)

Production of green hydrogen remains very expensive. In addition, the cost to transport and distribute green hydrogen is exceptionally high in the same range as the cost of production, and with significant losses, whether liquification, compression, or conversion to ammonia, is considered. Compared to the above, e-Methanol can be produced by combining green hydrogen with CO2 using well-known synthesis processes and creating a liquid green fuel that can be transported, stored, and distributed through established global logistics networks. For example, a gas station would require minimal modifications to be able to dispense methanol, while by comparison, a hydrogen station would require an investment of millions and a new location.

Therefore, Advent's fuel cells optimized for e-Methanol are highly suitable for applications where liquid fuel is preferable, and the transportation of hydrogen or batteries (requiring frequent recharging) is highly inefficient. Such applications are off-grid power, telecom tower power, shipping, off-grid charging stations, bad-grid infrastructure, defense, security, emergency response missions, and generally, any area where a diesel generator or a heavy portable battery has applications. We believe decreasing fuel cell costs due to technology innovation and manufacturing scale-up can allow us to grow in the power generation market and potentially displace diesel generators in applications with a clear total cost of ownership value proposition, in addition to the environmental mandate.

***B. Anywhere: Advent's HT-PEM fuel cells are designed to work under extreme conditions***

***Extreme Weather Conditions:*** Our HT-PEM fuel cells can operate in various practical conditions, including a wide range of geographies, weather, ambient temperatures (as low as -20oC and up to +55oC), and in humid or polluted environments. On the other hand, LT-PEM fuel cells tend to struggle in the heat, can be damaged by dry climates or polluted air, and cannot handle the impurities of the hydrogen supply.

***Superior Heat Management:*** HT-PEM fuel cells operate at high temperatures (between 160°C and 220°C, with next-generation MEA-based fuel cells operating between 80°C and 240°C). Therefore, the temperature differential between an HT-PEM fuel cell and the outside environment is large. As a result, only a small radiator, similar to or smaller than the radiator in an ICE vehicle, is needed to transfer heat away from the fuel cell stack. Conversely, because LT-PEM fuel cells run relatively cooler (usually under 85°C), a significantly larger radiator is required to effectively maintain suitable operating temperatures and conditions for an LT-PEM fuel cell.

The heat management advantage makes HT-PEMs ideal for the aerospace and heavy-duty truck sectors, among others. An aircraft flying in hot weather, over 35°C, a truck in Arizona or India operating in such high outside temperatures, would need a high to prohibitive amount of power to be wasted just for cooling down, rendering competitive technologies inefficient.

This advantage has been the key reason that Advent has had success in establishing strategic relationships with companies in the Aerospace and Automotive sector, such as the Joint Development Agreements with Airbus and Hyundai, as well as multiple Technology Assessments (which we aim to convert to Joint Development Agreements or Technology License Agreements) with other world-leading companies in these two fields.

●  ***Fuel and Air Quality Tolerance:*** Fuel cell systems take hydrogen and air as inputs. Any low-quality intake, even in one instance, may destroy an LT-PEM fuel cell. LT-PEM technology is intolerant to CO damage (with performance degradation at levels as low as 10 ppm), while HT-PEM can withstand 1-4% CO concentrations, depending on temperature and operation. For example, readily available low-cost hydrogen can be made with 1-2% carbon monoxide (20,000ppm), which works well with HT-PEMs. LT-PEM loses performance with only 10 ppm of carbon monoxide. The relative durability of our products in a range of environments also provides a longer life of operation relative to LT-PEM fuel cells.

●  ***Water Management Issues:*** HT-PEM fuel cells use phosphoric acid as an electrolyte rather than water-assisted membranes. Therefore, they reduce the need for water balance and other compensating engineering systems.

●  ***Simplified Design for Manufacturing:*** Our HT-PEM technology significantly reduces the balance of plant requirements of a fuel cell system relative to LT-PEM fuel cells due to the water, heat management, and air/fuel advantages described above. This means that HT-PEMs have simplified requirements for supporting components and auxiliary systems, which enables reduced cost and increases application range for the end-user.

[**Table of Contents**](#toc)

**The Advent MEA**

In order to achieve high-temperature operation, we develop highly differentiated chemistry components, the MEAs. In particular, we are developing a new Advanced MEA ("Advent MEA"). The Advent MEA has been developed in collaboration with the U.S. DoE after we were awarded the L'Innovator commercialization program. Under this program, we are working closely with the Los Alamos National Laboratory (LANL), Brookhaven National Laboratory (BNL), and National Renewable Energy Laboratory (NREL), to commercialize the decade-long materials advancements in the field of MEA development. We expect that these next-generation MEAs will bring the HT-PEM technology into the mobility area by enabling fuel cells to be lightweight with high-power density. The Advent MEA is also anticipated to eventually deliver as much as three times the power output and lifetime versus the current MEA product. While we are already projecting being able to pass through substantial cost benefits to its customers through economies of scale as it increases MEA production, the successful development of the Advent MEA will be an important factor in delivering the required improvement in cost-effective performance to our customers.

We believe that Advent stands at the forefront of revolutionizing the global fuel cell market with its groundbreaking Advent MEA technology, which has been developed through strategic collaborations with esteemed institutions such as Los Alamos, Brookhaven, and the National Renewable Energy Laboratories. In August 2023, Advent was honored to receive the prestigious Richard P. Feynman Innovation Prize for Technology Transfer Excellence from the U.S. Department of Energy's Los Alamos National Laboratory, recognizing the groundbreaking potential of Ion Pair MEAs. Similarly, in November of 2024 Advent and Los Alamos National Laboratories were listed as being among the top 100 R&D technologies worldwide. These MEAs have demonstrated exceptional performance in challenging applications, particularly in heavy-duty mobility. They are promising to match LT-PEM in power density and lifetime and offer unparalleled versatility for a wide range of applications due to their ability to operate from 80°C to 200°C. The technology's heat rejection capabilities render it ideal for aerospace and truck markets. Through ongoing Joint Development Agreements with renowned global enterprises such as Airbus and Hyundai Motor Company, Advent focuses on integrating its Advent MEA technology into their fuel cell projects. Simultaneously, Advent has engaged in technology assessments with five additional global leaders to expedite HT-PEM MEA development for mobility markets. By combining LT-PEM's power density potential with HT-PEM's resilience and multifuel capability, we believe Advent MEAs offer increased operational lifetimes and the ability to operate at far higher current densities compared to existing high-temperature MEAs. Advent holds unique intellectual property rights over the core technology and the manufacturing scale-up of the MEA. HT-PEM fuel cells featuring Advent's Advent MEA aim to offer tripled lifespan and power density compared to previous products. The anticipated result of significant improvements in lifetime and power density is expected to dramatically reduce the total cost of ownership of Advent's fuel cell solutions. Advent has established resources in the USA and Europe to mass-produce the Advent MEA and is expanding its partner network to license our hardware technology. Framework agreements are under negotiation with end-users, as well as licensing agreements with Tier 1 manufacturers and global leaders in stationary and off-grid power equipment. Joint Development Agreements with the aerospace, marine, and automotive sectors are expected to accelerate the Ion Pair MEA technology in 2025 and 2026, with commercial scale-up planned for late 2026. Additionally, the Defense solution under development (Honey Badger 50) is also expected to transition to mass production by 2026.

**Acquisitions and Other Significant Milestones**

***Advent Technologies LLC:*** Advent and U.S. Department of Defense (the "US DoD") are in constant discussions during the progress of ongoing programs with ENVISION, and we have received the green light from the US DoD to make additional proposals for new programs focusing on further improvement of Honey Badger product on one hand and also leveraging its manufacturability towards mass production.

We have significantly streamlined our product, system integration, manufacturing, and testing capabilities, avoiding duplication and abandoning less promising product development efforts to manage costs better. During this process, we have significantly reduced personnel and support activities in certain locations where overlap existed after the acquisitions.

Advent's Livermore subsidiary brings Silicon Valley-type innovation. Ion Pair MEA technology brings a significant advantage toward reducing cost and increasing the performance of our systems. Our investment plan reflects its strategic goal to assemble significant global know-how of the HT-PEM industry.

[**Table of Contents**](#toc)

Following the expected availability of EU Innovation funds from the RHyno Project, we will expand R&D operations in the selected region of Western Macedonia, Greece. We expect to focus future activity plans in Greece and the USA (for MEA and defense-market-related reasons) while product development efforts will be across the USA and Greece.

**Business Strengths**

***Highly Differentiated Technology:*** We believe that for the reasons explained above, HT-PEM is a highly differentiated technology that provides significant competitive advantages to Advent and our partners. HT-PEM technology is a new and promising technology when compared to LT-PEM (Low Temperature Proton Exchange Membrane), that was developed for the last 50 years and may have plateaued in terms of expected technology breakthroughs needed to overcome thermal control and environmental limitations.

***Experienced management team with a proven track record:*** We were founded and managed by world-class electrochemists, material scientists, and fuel cell specialists with significant industry and manufacturing expertise. We have received numerous R&D funds from the US DoE and the European Union and are considered a pioneer with years of experience in clean energy technology innovation. The team that we have recruited to bring innovation to the fuel cell industry is highly experienced and has a long pedigree in R&D and world-class manufacturing. Our team has been developing MEA components since 2006 and is led by Dr. Emory De Castro (CTO).

***Strategic Partnership with US DoE and Los Alamos National Laboratories:*** In addition, we initiated in 2021 a Cooperative Research and Development Agreement (CRADA) under the U.S. Department of Energy ("DoE") umbrella to commercialize next-generation MEAs and ultra-low platinum catalyst solutions developed by the National Laboratories at Los Alamos, Brookhaven, and NREL, in the U.S. We were selected as the scale-up and commercialization partner of the DoE and are working closely with the highly-skilled R&D teams of top U.S. government laboratories.

***MEA IP and Technology:*** We firmly believe in the transformative potential of the Advent MEA to redefine the global fuel cell market, enabling applications that were previously unattainable with conventional fuel cell materials. Our objective is to enhance the MEA's capabilities when operating at 160°C to 180°C for more than 20,000 hours, delivering a higher power density that will result in a simpler, more cost-effective system with superior performance in terms of weight, power, lifetime, total cost of ownership, and infrastructure investment. As we continue to strengthen our collaborations with some of the world's largest OEMs and Tier 1 Manufacturers, our aim is to capitalize on the growing momentum and demand for our HT-PEM technology.

**Products and Services**

We derive revenue from the following sources:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Engineering and License Fees:** In the mobility sector (e.g., heavy-duty automotive, mining equipment, marine, aerospace), we are entering into Joint Development Agreements ("JDAs") (as in the case of Hyundai and Airbus) to develop joint solutions for specific sectors. We plan to enter into Technology License Agreements ("TLAs") to allow 3rd party Tier 1 manufacturers or world-leading companies to market the licensed Advent technology in exchange for a license fee. We intend to be a provider of MEAs and core technology via licensing rather than producing complete fuel cells for the mobility industry. Revenue from JDAs may include engineering fees during the 1-3 year initial development cycle ("JDA fees"), MEA sales, and ongoing licensing fees.

&nbsp;&nbsp;&nbsp;&nbsp;2. **MEA Sales:** We develop and manufacture the critical component of the fuel cell, the MEA. The operation of the MEA is key to the functionality and characteristics of a fuel cell system. In addition to our fuel cell system offerings, our MEA is a discrete product offering to third-party manufacturers. MEA sales are expected to be a rapidly growing market as more fuel cells are deployed globally by third parties, especially in the mobility space.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Fuel Cell Systems and Stacks:** As our JDAs mature and move to manufacturing partnerships we expect to derive revenue from fuel cell systems and stacks for portable and stationary power generation applications range from 20W to MWs. These fuel cells have applications in the data center, commercial and industrial backup, telecom tower and other critical infrastructure (e.g., 5G, 4G) power, defense (and other portable power applications), and heavy-duty mobility (automotive trucks, aviation, marine) power markets.

[**Table of Contents**](#toc)

**Addressable Markets**

Based on the several critical advantages offered by our HT-PEM technology over batteries and LT-PEM technology, we expect to be highly competitive in numerous applications. Our HT-PEM fuel cells and MEAs are well-suited to off-grid power, portable power applications, combined heat and power, and mobility (e.g., heavy-duty automotive, aviation, mining equipment, marine, and UAV). Our goal is to partner with Tier 1 suppliers and OEMs in these new markets, focusing on fuel cell technology development, licensing, and the mass production of the next-generation MEAs.

**Off-Grid & Backup Power:** We have a strong presence in the off-grid power market, with our discontinued legacy product SereneU product offering having shipped about 1,200 systems worldwide to telecommunications providers for backup power systems and stationary power sectors. Methanol is easier and cheaper to deliver to remote locations compared to pure hydrogen, providing our HT-PEM technology with an advantage in the off-grid market. Off-grid fuel cell solutions can use methanol, which is already available at some remote industrial sites, like wellheads. Fuel cells in these applications produce significantly fewer greenhouse gases than ICE generators and produce power without ICEs' attendant high levels of nitrogen oxides, sulfur oxides, or particulate emissions. Off-grid power solutions have the potential to run full-time, 365 days a year, 24 hours per day.

**Portable Power for Construction, EV Charging Applications, and Events:** In December 2023, Advent demonstrated a portable clean power solution designed for various applications, including construction sites, remote EV charging stations, events, and concerts. This innovative solution integrates both a battery and a fuel cell, operating seamlessly on liquid green fuels such as methanol, biomethanol, or eMethanol. Battery-only systems face challenges in off-grid applications as they require continuous relocation to the grid or alternative power sources for recharging. Diesel generators emit harmful emissions, noise, and pose risks of fuel theft. Pure hydrogen systems entail significant fuel sourcing, storage, and transportation costs in off-grid locations. Recognizing a specific market demand within the construction rental sector, particularly in anticipation of forthcoming regulations prohibiting diesel gensets.

**Human-Portable Power:** Our acquisition of Silicon Valley-based UltraCell provided us with complete system technology for the portable power and defense markets. Electrification is one of the key initiatives in the defense industry as the needs for mobility and power on demand are increasing dramatically. Our fuel cells have already been deployed by the US DoD, in the XX-55 portable power system, while the next-generation "Honey Badger" product, a wearable fuel cell designed to provide soldiers with on-the-go power, is currently in the US DoD's demonstration/validation program.

[**Table of Contents**](#toc)

The above markets define our current products, while the markets below constitute its largest opportunities for growth in the future:

**Combined Heat and Power ("CHP"):** By virtue of their high-temperature operation, HT-PEM fuel cells are well suited for delivering heat in addition to power to large commercial buildings and single or multi-family homes. The CHP efficiency is in the 85%-90% range, making HT-PEM fuel cells highly efficient for such uses. HT-PEM fuel cells can be supplied by existing natural gas infrastructure and eventually by a future hydrogen-blend or pure-hydrogen pipeline network.

**Automotive:** Our fuel cells can work together with EV batteries, charging batteries on-board by converting high-purity hydrogen or hydrogen-carrier fuels into electricity, and thus solve the range and recharging issues that battery-only electric vehicles currently face. This issue is a particular challenge in heavy-duty and commercial vehicles. Since our fuel cells can use hydrogen-carrier fuels such as eFuels and biofuels, we believe that our technology can be critical in accelerating the mass adoption of electric vehicles and the shift away from ICEs. Existing battery and LT-PEM technology have challenges in meeting heavy-duty transportation needs, which require long-range, heavy payloads, fast refill times, and the ability to operate in diverse environments. For example, LT-PEM fuel cells cannot operate efficiently in hot environments because the radiator required to cool the MEA to the appropriate temperature range would be too large and impractical. The use of battery-only technology has the added disadvantage of insufficient power capacity without a substantial volume and weight of batteries, which significantly reduces cargo capacity.

**Stationary Power for Data Centers, Microgrids, and Buildings:** With a run-time of 200 hours per year (serving as backup) and typical power generator sizes ranging from 1 to 20MW, the total deployed capacity of power generators in data centers globally stands at 5.6GW. This highlights a substantial market for green power generation solutions, presenting a unique opportunity for Advent's fuel cells and clean power solutions to be widely deployed in the data center industry. There is significant potential for mass adoption in data center, off-grid and microgrid hybrid systems, as a source of power with global average run-hours ranging from 2,920 to 8,760 annually. Advent fuel cells also fit well in industrial facilities, hospitals, and hotels, with backup systems averaging 200 to 800 run hours annually.

**Business Strategy**

Our growth strategy is focused on targeting the following four sectors:

● The stationary off-grid market is expected to be a growing market.

[**Table of Contents**](#toc)

● The large-scale fuel cell systems market (power generation, data centers and power to gas).

● The human-portable defense, surveillance, energy infrastructure, and leisure market based on our innovative Honey Badger products.

● The development of next-generation MEA and fuel cell solutions for the mobility market.

As our business ramps up to mass production, we plan to pursue a revenue model that includes fuel cell system sales, MEA sales, and hardware-technology licensing fees. Our customer relationship is split into two phases: 1) partner with OEMs to co-develop customized fuel cell systems based on our expertise in MEAs and HT-PEM fuel cell systems. During the product development phase, we earn engineering fees, and 2) once the industry and application-specific fuel cell system are qualified, we intend to license the hardware design to OEMs or Tier1s for large-scale manufacturing in exchange for license fees. In addition, we intend to manufacture and sell proprietary MEAs directly to OEMs and Tier1s. We expect high-margin licensing fees and MEA sales to become a larger component of our revenue mix over time (vs. direct fuel cell system sales) as our customers scale to mass manufacturing of fuel cells and other products.

We intend to focus future production activities in the USA and potentially in Western Macedonia, Greece, upon IPCEI funding approval. We have significant capacity in place when it comes to MEA manufacturing. Regarding fuel cell manufacturing, we expect to license the technology to large-scale manufacturers and selectively manufacture it (for defense and other promising markets directly).

**Specific Product Offerings Under Development**

&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Advent MEA:** 

The Advent MEA (also called the "Ion Pair MEA") allows HT-PEM fuel cells to operate between 80°C and 240°C with an optimal temperature of 160°C. The implications of high-temperature operation are:

&nbsp;&nbsp;&nbsp;&nbsp;1. It is ideal for eFuel-based fuel cells (e-Methanol). The HT-PEM fuel cell can work with reformate gas, impure hydrogen, and eFuels, so there is no need for new infrastructure. The existing fossil liquid fuel infrastructure, with minimal changes but without the carbon footprint, can be used for shipping, powering off-grid generators, and solving the hardest mobility electrification applications where batteries are simply not enough. (Our systems require a single-stage methanol or alternative eFuel gas reformer, typically yielding approximately 70% hydrogen and 1-2% carbon monoxide, with the remaining balance being carbon dioxide. In contrast, competing systems necessitate costly multistage reformers and palladium-based purifiers to maintain carbon monoxide levels below 10-15 ppm, a requirement for the operation of LT PEM.

&nbsp;&nbsp;&nbsp;&nbsp;2. It enables highly-efficient thermal management at the system level, making our fuel cells ideal for aviation and heavy-duty automotive. Airplanes, big trucks, excavators, and most heavy-duty applications face significant thermal management challenges. Efficient heat rejection is not possible, especially in areas of the world that keep getting hotter every year. From India to the Arizona desert, an HT-PEM fuel cell is the superior technology. By operating optimally at 160 °C, the Advent MEA is the first technology to beat the US Department of Energy heat rejection target by reaching a ΔQ/T level of 1.03 at a hot 50 °C, far below the 2025 goal of 1.45 set at only 40 °C, a target the current LT PEM technology can not reach. By running the MEA hot, you can keep the fuel cell engine cool and use smaller radiators for less drag.

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;3. It enables simple design as the balance of plant is much simpler (due to nO-water management issues). The Advent MEA does not use water as the conducting medium. It is based on a unique proprietary chemistry developed by Advent and our collaborators. "No water needed" means that the HT-PEM fuel cell system's balance of plant and, thus, the design, testing, and manufacturing is much simpler. Thus the HT-PEM fuel cell can operate at extreme humidity high or low, extreme climates (temperature (-20 °C to 55 °C)), or air quality conditions (pollution, dust). All these factors have minimal or no effect on the HT-PEM fuel cell performance, but they can be life-ending for a typical LT-PEM system.

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Advent Fuel Cell Stack** 

Following the discontinued operations in Denmark and the Serene product line, we have focused our efforts on the development of the next-generation fuel cell stack:

The goal of this effort, which commenced in 2024 Q3 and will be ongoing, is to develop the next generation of HT-PEM fuel cells based on the Advent MEA. Performance-wise, our goal is to double the power density of the fuel cell stacks in the near future vs. the previous Serene product line (that was not based on Advent MEA) and also double the lifetime. These developments can result in a total capex reduction of approximately 3x vs. previous Serene systems, thus enabling a very attractive total cost of ownership model for almost all business cases in stationary and marine power. A further improvement target of 3x vs. previous MEAs resulting from improved Advent MEA and fuel cell stack performance can bring significant competitive advantages in the most challenging markets of Aerospace and Automotive.

The Advent Fuel Cell Stack will be in the range of 7kW-10kW multiples of which can be placed in cabinets for higher power, such as 100kW to 150 kW; however, longer term Advent is designing a 50kW block, thus enabling multi-MW installations by deploying parallel cabinets. Other features under development are associated with Advent's proprietary edge-cooling technology, no methanol-water mix and metal bipolar plates use.

&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Honey Badger** 

The Reformed Methanol Wearable Fuel Cell Power System, or "Honey Badger" is an offering marketed by our subsidiary Advent Technologies LLC. On June 7, 2021, the US DoD, through the U.S. Army DEVCOM Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance (C5ISR) Center, with funding through the Project Manager Integrated Visual Augmentation System (PM IVAS), has entered into a contract with us to complete the MIL-STD certification of the cutting edge "Honey Badger". "Honey Badger" is placed on a soldier-worn plate carrier and provides on-the-move battery charging in the field. It has been selected by the US DoD's National Defense Center for Energy and Environment (NDCEE) to take part in its 2021 demonstration/validation program and is the only fuel cell to take part in this program. The NDCEE is a US DoD program that addresses high-priority environmental, safety, occupational health, and energy technological challenges that are demonstrated and validated at active installations for military application. The product is offered at 50W and 100W power versions, and both are in the testing and certification stages. Its core technology has completed successful field trials in Army Expeditionary Warrior Experiments and high-altitude tests in California's Sierra Nevada. Advent Technologies LLC's "Honey Badger 50" (the 50W power version) fuel cell is the only fuel cell that is part of this program that supports the U.S. Army's goal of having a technology-enabled force by 2028. On August 4, 2022, we announced the launch of our HB50 power system, a compact portable fuel cell system and quiet power supply for use in off-grid field applications such as military and rescue operations. The launch of Advent's portable power system coincided with the Company's fulfillment of its first shipment order from the U.S. Department of Defense. The HB50 power system can be fueled by biodegradable methanol, allowing near-silent generation of up to 50W of continuous power with clean emissions. Designed for covert operations, HB50 can easily power radio and satellite communications gear, remote fixed and mobile surveillance systems, laptop computers, and more general battery charging needs. HB50 is a unique technology that can save 65% of weight versus batteries over a typical 72-hour mission. The weight savings

[**Table of Contents**](#toc)

benefit increases further for longer missions. In September and December 2023, contracts totaling $2.2 million and $2.8 million, respectively, were signed with the U.S. Department of Defense. These contracts focus on integrating the Ion Pair MEA technology into HB50 and enhancing specific components/manufacturing processes. The objective is to facilitate the shift from low-prototype volume to small manufacturing volume. Advent and the US DoD plan to strengthen their collaboration by concentrating on the improved HB50 fuel cell system's manufacturing process, aiming to achieve high-volume production capacity. Multiple applications of the HB50 are expected in the future in sectors such as robotics, agriculture, drones, emergency operations, and consumer uses. HB50's unique design allows it to be used in soldier-worn configurations or operated inside a portable backpack or vehicle while charging batteries and powering soldier systems, while its thermal features allow it to operate within an ambient temperature range of -20°C to +55°C. Aside from its optimized compatibility with the Integrated Visual Augmentation System ("IVAS"), HB50 can also power devices such as high-frequency radios, such as the model 117G and B-GAN and StarLink terminals. HB50's durability allows it to be easily deployed in challenging conditions and climates while supporting mission mobility for three to seven days without the need to re-supply. Since Honey Badger's fuel cell technology can run on hydrogen or liquid fuels, the system can operate at a fraction of the weight of traditional military-grade batteries to meet the U.S. Department of Defense's continuously evolving needs for 'on-the-go' electronics needs. As military adoption and use of IVAS equipment continue to evolve, highly portable lightweight power solutions like Honey Badger and HB50 will become a mission-critical necessity.

**Competition**

The market for alternative fuel and energy storage systems is still in the early stages of growth and is characterized by well-established battery and LT-PEM products. We believe the principal competitive factors in the markets in which it operates include, but are not limited to, the size, weight, lifetime, durability, and total cost of ownership of these systems to the end-user. We believe that our HT-PEM technology competes with these other technologies across a number of new and existing applications in the alternative energy fuel market, especially in the realm of fuel flexibility and heat management. We believe the total addressable market opportunity could be over $72 billion by the year 2030.

***HT-PEM vs Diesel Gensets:*** In contrast to polluting diesel gensets, HT-PEM fuel cell technology offers a clean and sustainable alternative ready for immediate deployment. Its adaptability extends to operating with various hydrogen-carrying fuels available in today's market. Diesel generators not only emit harmful pollutants but also pose a significant risk of fuel theft and contribute to noise pollution. With growing global concern over environmental issues, diesel gensets face escalating scrutiny and potential bans due to their emissions of pollutants such as NOx, SOx, and Particulate Matter (PM). Conversely, HT-PEM fuel cells operate without emitting harmful pollutants, while also generating minimal noise. This aligns seamlessly with evolving regulations aimed at reducing carbon footprints and underscores the viability of HT-PEM fuel cells as a sustainable energy solution.

***HT-PEM vs LT-PEM:*** HT-PEM technology operates at optimal temperatures for efficient heat rejection, maximizing overall efficiency and enabling operation in hot climate regions. In contrast, Low-Temperature Proton Exchange Membrane (LT-PEM) technology lacks rapid cooling capabilities, rendering it unsuitable for aerospace and heavy-duty truck applications. One of the key advantages of HT-PEM technology lies in its versatility in utilizing various hydrogen-carrying fuels, such as methanol and its derivatives. Methanol, being a liquid and easily transportable hydrogen carrier, is witnessing a steady increase in availability. Projections indicate the potential for significant growth, with 130 projects planning to produce 16 million metric tonnes (t) of methanol capacity by 2027 and 19.5 million t by 2028. Moreover, transporting compressed hydrogen off-grid presents economic challenges and safety risks. HT-PEM technology demonstrates resilience in extreme environments, offering a key differentiating factor. The absence of water in the fuel cell membrane simplifies the system and facilitates efficient operation in both hot and cold climates. Furthermore, HT-PEM fuel cells exhibit remarkable performance in extreme ambient temperatures and can function effectively even in highly polluted urban areas or harsh environmental conditions.

[**Table of Contents**](#toc)

***HT-PEM vs SOFC:*** HT-PEM systems typically boast shorter start-up times compared to SOFCs, allowing for quicker deployment and response to power demands. SOFC systems are not suitable for backup or mobility applications as they are optimized to work continuously 24x7. Additionally, HT-PEM fuel cells tend to be more compact in size, offering greater flexibility in installation and integration into various applications. Cost-wise, HT-PEM systems often exhibit lower initial investment requirements compared to SOFCs, making them more accessible for a range of applications and markets. These distinctions underscore the unique advantages of HT-PEM technology in terms of efficiency, versatility, and affordability.

***HT-PEM vs Batteries:*** When operating as standalone power sources, batteries are often impractical and cumbersome, particularly in off-grid scenarios where they require daily transportation back to the grid for recharging. Additionally, they incur high costs and offer limited runtime, while recharging from the grid often results in higher net emissions in most countries. At Advent, we firmly believe in the transformative potential of hybrid power solutions that merge our HT-PEM fuel cell technology with batteries. Unlike traditional methods, where batteries draw power from the grid, our approach for certain applications favors charging batteries using our fuel cells to ensure unlimited green power generation and provide a consistent power supply constrained only by the availability of fuel. Furthermore, our hybrid solution offers significant cost savings and extended runtime compared to battery-only alternatives. Moreover, it achieves remarkable emission reductions, up to 80% when utilizing biomethanol fuel and 100% with e-Methanol.

**Research and Development**

Our R&D projects cover the full lifecycle of fuel cells, from their actual development and optimization for use in hard-to-abate industries such as heavy-duty mobility to the effective recycling of end-of-life systems, emphasizing our commitment to sustainability. We are actively engaged in over 20 research and development initiatives across the EU and the US, which serve as pivotal pillars for our strategic advancement. These programs afford us the opportunity to collaborate closely with some of the world's most esteemed research institutions, universities, and leading companies committed to decarbonized solutions. Through these partnerships, we continuously broaden our scope and expertise.

**Employees and Human Capital Resources**

Our employees are critical to our success. As of December 31, 2024, we had approximately 26 employees and 5 part-time contractors. We occasionally rely on additional independent contractors to support our operations. None of our employees are represented by a labor organization or are a party to any collective bargaining arrangement.

We strive to create a collaborative environment where our colleagues feel respected and valued. We provide our employees with competitive compensation, opportunities for equity ownership, and a robust employment package, including health care, retirement benefits, and paid time off. In addition, we regularly interact with our employees to gauge employee satisfaction and identify focus areas.

At Advent, we champion the belief that individual uniqueness enhances greatness. We uphold equal opportunities for all employees. Through rigorous protocols, we continuously work to identify and eradicate any form of harassment within our organization, fostering a fair and respectful workplace. We prioritize the value and respect of our employees, unequivocally condemning violence, discrimination, or harassment. Employees are encouraged to address any questions or concerns they may have regarding their employment or benefits with our Human Resources department. We honor and accommodate the physical or mental limitations of qualified employees with disabilities, enabling them to fulfill their job responsibilities. Furthermore, our compensation structure is determined by factors such as position, education, and experience.

[**Table of Contents**](#toc)

***Performance Management:*** We are committed to optimizing performance management within our organization. Our focus lies in nurturing strong relationships between our management team and employees, fostering a culture of mutual respect across all operational sites and facilities. We conduct formal performance evaluations annually to track progress and provide feedback. Furthermore, we actively encourage ongoing dialogue between employees and supervisors to discuss development goals and performance metrics regularly.

***Talent and Training:*** Our employees engage in a range of inclusive training and development programs covering diverse subjects to enhance their skills and competencies. These include professional skills enhancement, human rights, ethics, health and safety in laboratory processes, and technological expertise. We also mandate standard business ethics training for all employees.

***Health Safety Wellness:*** To safeguard the well-being of our employees across all operational sites, we rigorously uphold and surpass relevant safety and health regulations. At every location, Advent maintains strict adherence to local health and safety standards. Our commitment to employee welfare is articulated in our comprehensive Group Health and Safety Policy. Within Advent's Employee Handbook, we delineate our existing protocols concerning health and safety matters and the oversight responsibilities of our management team.

**Intellectual Property**

Our intellectual property portfolio covers, among other things: membranes, electrodes, MEAs, and systems exploiting the unique operating characteristics of its materials. In general, our employees are party to agreements providing that all inventions, whether patented or not, made or conceived while being an Advent employee, which are related to or result from work or research that the Company performs, will remain our sole and exclusive property.

We have been issued, acquired, licensed, or applied for approximately 150 international and United States patents, with a concentration in membranes, electrodes, and MEAs, which support its product offerings. Leveraging our membrane and electrode technologies, we also have the intellectual property for lightweight stacks made through advances in bipolar plate materials, which support water-cooled systems. This results in a simpler and more compact balance-of-plant design. Our own investments in developing leading next-generation fuel cell technology are supported by being able to leverage the research and development efforts of its strategic partners.

Our rights to commercialize the next-generation HT-PEM materials technology from the DoE L'Innovator Program also includes rights to a portfolio of patents supporting this advanced technology. We were selected through a highly competitive bidding process by virtue of our management team's track record in taking laboratory inventions and processes through to a fully scaled and manufactured product. We expect that this technology will reduce production costs of its MEAs significantly through a 3-fold increase in power output per unit area of the membrane and will provide a longer operating lifetime and a wider temperature operating range as well as substantially lower platinum content. We expect these advantages will enable us to reduce the cost to end-users of fuel cells and encourage wider market adoption.

**Facilities**

Our principal executive offices are located at 5637 La Ribera St., Suite A, Livermore, CA 94550 and our telephone number is (925) 455-9400. We maintain a website at https://www.advent.energy.

We believe that all our properties have been adequately maintained, are generally in good condition, and are suitable and adequate for our business.

[**Table of Contents**](#toc)

**Legal Proceedings**

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

On May 9, 2025, Chris Kaskavelis ("Kaskavelis"), a former employee of Advent SA, filed a claim against the Company's wholly owned subsidiary in Greece, Advent SA, before the Athens First Instance Court (LABOR CLAIMS). A hearing is on the claim is scheduled for October 20, 2025. In connection with the claim, Kaskavelis alleges that Advent should pay him the following amounts: (1) €107,194.90 for unpaid wages, (2) €612,206.40 for unpaid severance, (3) €50,000 for "moral damages" and (4) related court expenses stemming from the lawsuit. The Company denies the Kaskavelis claims as they are unsubstantiated and without merit as he was terminated by the Company for cause per the terms of his employment agreement. Notwithstanding the same, and as a contingency, the Company has accrued for the unpaid wages portion of his claim in the amount of €107,194.90 ($124,000). The Company believes that the remainder of the Kaskavelis claims are wholly without merit and intends to defend itself vigorously in these proceedings, although we cannot accurately predict the ultimate outcome of this matter.

On August 16, 2024, the Company was informed that an arbitration decision and award was decided in favor of F.E.R. fischer Edelstahlrohre GmbH ("F.E.R."), pursuant to the arbitration provisions of the Share Purchase Agreement dated June 25, 2021, whereby the Company acquired SerEnergy and FES on August 31, 2021. The arbitration was held in Frankfurt am Main, Germany in accordance with the Arbitration Rules of the German Arbitration Institute. The award in favor of F.E.R. is in the amount of approximately €4.5 million euro. The Company appealed the decision and instructed its counsel to file a motion with the Higher Regional Court of Frankfurt to set aside the arbitral award. On July 1, 2025, the Company entered into a settlement agreement and release (the "Settlement Agreement") with F.E.R.. Pursuant to the terms of the Settlement Agreement, the Company has agreed to pay F.E.R. €5,366,625.55 with such payment to be made in monthly installments of €35 thousand beginning on September 1, 2025. The Company will be entitled to a reduced settlement amount totaling €4,366,625.55 if payment is made by no later than June 30, 2026. In exchange for such reduced settlement amount, both Parties agreed to a mutual release of claims against the other Party. During the six months ended June 30, 2025, the Company recorded an additional loss of $1 million due to $0.5 million of interest expense, $0.3 million of legal fees and the remainder is due to foreign exchange differences. In connection with the Settlement Agreement, the Company reclassed $410 thousand and $5,922 thousand from loss contingency to other current liabilities and other long-term liabilities, respectively.

By letter dated September 14, 2023, a purported shareholder of the Company made a demand to inspect the Company's books and records pursuant 8 Del. C. § 220 ("Demand"). The Demand purported to request access to books and records of the Company and its predecessor, AMCI Acquisition Corp. ("AMCI"), to investigate possible alleged breaches of fiduciary duty by AMCI's board of directors and officers in connection with its merger with the Company on February 4, 2021. As of May 24, 2024, the purported shareholder entered into a tolling agreement with the Company and the former directors of AMCI that tolled all claims for the period January 29, 2024 through June 30, 2024. On June 5, 2024, the purported shareholder filed a putative class action complaint ("Complaint") on behalf of in the Delaware Court of Chancery alleging claims of breach of fiduciary duty and unjust enrichment in connection with the SPAC transaction against former officers and directors of AMCI. The Company is not named as a defendant in the Complaint. The Company is not aware as to whether the Complaint has been served on the defendants.

Other than the matters disclosed herein, we are not currently aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

**Available Information**

Our principal executive offices are located at 5637 La Ribera St., Suite A, Livermore, CA 94550 and our telephone number is (925) 455-9400. We maintain a website at <u>https://www.advent.energy</u>. Information available on our websites is not incorporated by reference in and is not deemed a part of this prospectus.

[**Table of Contents**](#toc)

**MANAGEMENT**

**Directors and Executive Officers**

Our business and affairs are managed by or under the direction of our Board. The table below lists the persons who currently serve as executive officers and directors.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Gary Herman | 60 | Chief Executive Officer and Interim Chief Financial Officer |
| Emory De Castro | 67 | Chief Technology Officer and Director |
| James F. Coffey | 62 | Chief Operating Officer and General Counsel |
| Marc Seelenfreund | 55 | Director (Independent) |
| Robert Schwartz | 80 | Director (Independent) |
| Seth Lukash | 79 | Director (Independent) |
| Joseph P. Celia | 61 | Director (Independent) |

---

The following is a brief biography of each executive officer and director:

***Gary Herman*** has been a director of Advent since August 2024 and the Chief Executive Officer and Interim Chief Financial Officer of the Company since October 2024. Mr. Herman is a seasoned investor with many years of investment and business experience. From 2005 to 2020 he co-managed the Strategic Turnaround Equity Partners, LP (Cayman) fund and its affiliates. From January 2011 to August 2013, he was a managing member of Abacoa Capital Management, LLC, which managed Abacoa Capital Master Fund, Ltd., focused on a Global-Macro investment strategy. From 2005 to 2020, Mr. Herman was affiliated with Arcadia Securities LLC, a New York-based broker-dealer. From 1997 to 2002, he was an investment banker with Burnham Securities, Inc. From 1993 to 1997, he was a managing partner of Kingshill Group, Inc., a merchant banking and financial firm with offices in New York and Tokyo. Mr. Herman has a B.S. from the University at Albany with a major in Political Science and minors in Business and Music. Mr. Herman has many years of experience serving on the boards of public and private companies. He presently sits on the boards of Siyata Mobile, Inc. (NASDAQ: SYTA) and SusGlobal Energy Corp. (OTCQB: SNRG).

***Emory De Castro*** has been Advent's Chief Technology Officer since 2013. Dr. De Castro is responsible for the overall technical, manufacturing and business development operations for Advent. Prior to joining Advent, Dr. De Castro was a Vice President, Business Management and the site manager for BASF Fuel Cell Inc. in Somerset NJ. At BASF Dr. De Castro led marketing and sales, business development, quality control, and R&D direction all cumulating in nearly a four-fold increase in revenues. As the Executive Vice President at the E-TEK Division, De Nora North America he managed operations, created a global brand, and expanded the organization's fuel cell component business in Asia and Europe. Dr. De Castro has over 20 patent applications spanning fuel cell materials and catalysts, electrochemical technology, sensors, and a beer bottle cap that extends shelf life. He is the recipient of the 2024 Department of Energy Award for R&D in commercializing ion pair MEA technology; 2013 Department of Energy Award for Manufacturing R&D in lowering the cost of gas diffusion electrodes; and the 2005 ECS New Technology Award to E-TEK Division, for introducing and commercializing a new electrolysis technology. Emory De Castro received his Ph.D. from the Department of Chemistry at the University of Cincinnati and a B.S. in Chemistry from Duke University. Dr. De Castro is well-qualified to serve on our board of directors due to his extensive scientific and technological experience.

***James F. Coffey*** has served as General Counsel and Corporate Secretary of Advent since March 2020. Beginning in 2018, while a partner at a national Am Law 100 law firm, Jim served as Advent's outside legal counsel. Mr. Coffey has over thirty years of experience in corporate and securities law, mergers and acquisitions, venture capital and corporate finance, and intellectual property law. He has extensive international experience having closed transactions in both North and South America, Europe, and China. Throughout the course of his career, Jim has developed strong relationships and strategic contacts within the clean energy and technology sectors and specific experience in the fuel cell industry. From 2013 to 2017, he served as general counsel to another HT PEM fuel cell company that was a customer of Advent. Mr. Coffey was a Gerald L. Wallace Scholar at New York University School of Law where he received an LL.M. in Corporate Law. He received his J.D. from the New England School of Law, and his B.A., cum laude, from Providence College. Mr. Coffey is listed in The Best Lawyers in America<sup>®</sup> for Mergers and Acquisitions. He is recognized for his work in intellectual property law by the IAM Patent 1000. Mr. Coffey was named a Massachusetts Super Lawyer by Law and Politics magazine. He is AV<sup>®</sup> rated by Martindale-Hubbell. Mr. Coffey is a fellow of the Boston Bar Foundation and the American Bar Foundation.

[**Table of Contents**](#toc)

***Marc Seelenfreund*** has been a director of Advent since August 2024. Mr. Seelenfreund is the Founder and has been the Chief Executive Officer of Siyata Mobile Inc. (NASDAQ: SYTA) since July 2015. Siyata is a leading vendor of mission critical Push to Talk Over Cellular products working with all the major cellular carriers in North America as well as in international markets. Marc has over 20 years of experience in the telecom and cellular arena as was founder of a leading telecom distribution company Accel Ltd (Tase: ACCL) representing multiple global telecom vendors in the Israeli telecom market. Marc was an officer in the IDF, received a law degree from Bar Ilan University and is the Chairman of Ono Academic College.

***Robert W. Schwartz*** is the Chairman & Founder of Schwartz Heslin Group, Inc., which he founded in 1985, and has been a director of the Company since January 2025. Mr. Schwartz specializes in corporate finance and M&A activities. Prior to starting Schwartz Heslin Group, he was a founder, President and Chief Executive Officer of Winsource, Inc., a venture-funded high-tech telecommunications company. In addition, he was the President and Chief Operating Officer of Coradian Corporation, an American Stock Exchange-listed company that he took public in 1979. He was also the Chief Financial Officer of Garden Way Manufacturing Corporation, a major manufacturer of outdoor power equipment. His earlier experience was with KPMG as a management consultant and with IBM. Since starting SHG, he has worked with over 750 businesses utilizing his experience in finance and general management to help achieve their objectives. Mr. Schwartz holds a BS from Cornell University and has done graduate work at The University at Albany. He has served as a director of a number of public, private and non-profit organizations; he currently serves on the boards of three corporations. He chaired The University at Albany Foundation's Council on Economic Outreach, is past non-executive chairman of the Statewide Zone Capital Corporation, a subsidiary of Pursuit, Inc., was chair of the New York State Industries for the Disabled and is a director of Dais Analytic Corporation and the Golub Corporation. Mr. Schwartz also serves on the board of Northeast Grocers, Inc., formed through the merger of Golub Corporation and Tops supermarkets. He also chairs the Audit Committee. He has been a frequent guest lecturer at universities and professional organizations and taught a graduate course in entrepreneurship at The University at Albany for 20 years. Mr. Schwartz is a graduate of Cornell University with a BS in Labor and Industrial Relations, and holds an MBA from The University of Albany.

***Seth Lukash*** is a seasoned corporate director, officer, and investor, and has been a director of the Company since November 2024. For 30 years he was a CEO for various technology and manufacturing companies. He was CEO and President of Tridex, Inc. (n/k/a TransAct Technologies (NASDAQ: TACT) a manufacturer of printers and peripherals to the banking, lottery/gaming, and retail sales markets. Mr. Lukash was Chairman and CEO of Progressive Software, a large provider of application software to the restaurant and hospitality industry. After the sale and divestiture of these companies he advised several technology companies. He has served as an advisor to OEM Capital a boutique investment banking firm and Strategic Turnaround Equity Partners, LP, a fund focused on investments in undervalued public companies. For the past two years he has advised an AI start-up with their organization and structuring for additional financing. He started his finance career as a research analyst for Carter Berlind & Weil. Mr. Lukash is a graduate of the University of Miami with a BA in Finance.

***Joseph P. Celia*** is a technology industry veteran with 30 years of experience with an impressive track record in building strategic partnerships, driving new business initiatives, and penetrating new markets, and has been a director of the Company since November 2024. His dynamic and results-oriented approach in sales leadership within the rapidly evolving tech sector has consistently led to significant achievements. Mr. Celia has held executive and senior-level sales management positions at some of the tech industry's most respected organizations, including Hewlett Packard, Motorola, 3Com, Symbol Technologies, Bradford Networks, Accton Technology, and FIS Global. Mr. Celia has a BS from Northeastern University in Computer Technology.

**Family Relationships**

There are no family relationships among any of our officers or directors.

[**Table of Contents**](#toc)

**Involvement in Certain Legal Proceedings**

To the best of our knowledge, except as described below, none of our directors or executive officers has, during the past ten years:

● been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

● been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

● been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

● been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

**Corporate Governance**

***Board Composition***

Our authorized board of directors consists of seven members. In accordance with the second amended and restated certificate of incorporation, our board of directors is divided into three classes, Classes I, II and III, each to serve a three-year term. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following the election. Directors will not be able to be removed during their term except for cause. The directors are divided among the three classes as follows:

● the Class I directors is Robert Schwartz, and his term will expire at the annual meeting of stockholders to be held in 2027;

● the Class II directors are Marc Seelenfreund, Seth Lukash and Joseph Celia, and their terms will expire at the annual meeting of stockholders to be held in 2025; and

[**Table of Contents**](#toc)

● the Class III directors are Gary Herman and Emory De Castro, and their terms will expire at the annual meeting of stockholders to be held in 2026.

We expect that any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. The division of the board of directors into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control.

**Director Independence**

The board of directors has determined that each of Mr. Seelenfreund, Mr. Lukash, Mr. Celia and Mr. Schwartz are independent directors as defined in Nasdaq rules and the applicable SEC rules.

**Board Leadership Structure**

The Board has not appointed a Chairman or Lead Director to the Board. Our Board has concluded that our current leadership structure is appropriate at this time. However, our Board will continue to periodically review our leadership structure and may make such changes in the future as it deems appropriate.

***Committees of the Board of Directors***

The board of directors has the authority to appoint committees to perform certain management and administration functions. The Board has established an audit committee, compensation committee and nominating and corporate governance committee.

<u>Audit Committee</u>

Our audit committee consists of Mr. Lukash, Mr. Seelenfreund and Mr. Celia. The board of directors has determined that each member is independent under the Nasdaq Capital Market listing standards and Rule 10A-3(b)(1) under the Exchange Act. The chairperson of our audit committee is Mr. Lukash. Our board of directors has determined that Mr. Lukash qualifies as an "audit committee financial expert" as such term is defined in Item 407(d)(5) of Regulation S-K and possesses financial sophistication, as defined under the rules of Nasdaq Capital Market.

The primary purpose of the audit committee is to discharge the responsibilities of the board of directors with respect to our accounting, financial, and other reporting and internal control practices and to oversee our independent registered accounting firm. Specific responsibilities of our audit committee include:

● selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;

● helping to ensure the independence and performance of the independent registered public accounting firm;

● discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent accountants, our interim and year-end operating results;

● developing procedures for employees to submit concerns anonymously about questionable accounting or audit matters;

● reviewing policies on risk assessment and risk management;

● reviewing related party transactions;

[**Table of Contents**](#toc)

● obtaining and reviewing a report by the independent registered public accounting firm at least annually, that describes our internal quality-control procedures, any material issues with such procedures, and any steps taken to deal with such issues when required by applicable law; and

● by the independent registered public accounting firm

<u>Compensation Committee</u>

The compensation committee consists of Mr. Lukash and Mr. Celia. The chairperson of the compensation committee is Mr. Celia. The primary purpose of the compensation committee is to discharge the responsibilities of the board of directors to oversee its compensation policies, plans and programs and to review and determine the compensation to be paid to its executive officers, directors and other senior management, as appropriate.

Specific responsibilities of the compensation committee include:

● reviewing and approving on an annual basis the corporate goals and objectives relevant to our Chief Executive Officer's compensation, evaluating our Chief Executive Officer's performance in light of such goals and objectives and determining and approving the remuneration (if any) of our Chief Executive Officer based on such evaluation;

● reviewing and approving the compensation of our other executive officers;

● reviewing and recommending to our board of directors the compensation of our directors;

● reviewing our executive compensation policies and plans;

● reviewing and approving, or recommending that our board of directors approve, incentive compensation and equity plans, severance agreements, change-of-control protections and any other compensatory arrangements for our executive officers and other senior management, as appropriate;

● selecting independent compensation consultants and assessing whether there are any conflicts of interest with any of the committee's compensation advisors;

● assisting management in complying with our proxy statement and Annual Report disclosure requirements;

● if required, producing a report on executive compensation to be included in our annual proxy statement;

● reviewing and establishing general policies relating to compensation and benefits of our employees; and

● reviewing our overall compensation philosophy.

<u>Nominating and Corporate Governance Committee</u>

Our nominating and corporate governance committee consists of Mr. Lukash and Mr. Celia. The board of directors has determined each proposed member is independent under Nasdaq listing standards. The chairperson of our nominating and corporate governance committee is Mr. Lukash.

[**Table of Contents**](#toc)

Specific responsibilities of our nominating and corporate governance committee include:

● identifying, evaluating and selecting, or recommending that our board of directors approve, nominees for election to our board of directors;

● evaluating the performance of our board of directors and of individual directors;

● reviewing developments in corporate governance practices;

● evaluating the adequacy of our corporate governance practices and reporting;

● reviewing management succession plans; and

● developing and making recommendations to our board of directors regarding corporate governance guidelines and matters.

**Code of Business Conduct and Ethics**

The Company's Code of Business Conduct and Ethics applies to all of its employees, officers and directors, including those officers responsible for financial reporting. The Code of Business Conduct and Ethics is available on its website at www.advent.energy. Information contained on or accessible through such website is not a part of this Annual Report, and the inclusion of the website address in this Annual Report is an inactive textual reference only. The Company intends to disclose any amendments to the Code of Business Conduct and Ethics, or any waivers of its requirements, on its website to the extent required by the applicable rules and exchange requirements.

**Insider Trading Policy**

The Company maintains a comprehensive Insider Trading Policy that includes a prohibition on pledging Company securities or holding Company securities in a margin account. Additionally, the policy prohibits engaging in hedging, monetization and similar transactions in respect of Company securities. This policy, applicable to all officers, directors and associates, was put in place to ensure that the interests of these individuals remain aligned with those of stockholders, and that they continue to have the incentive to execute the Company's long-term plans and achieve the performance for which their equity awards are intended.

[**Table of Contents**](#toc)

**EXECUTIVE COMPENSATION**

**Summary Compensation Table - Years Ended December 31, 2024 and 2023**

The following table sets forth certain information about the compensation paid or accrued during the years ended December 31, 2024 and 2023 to our Chief Executive Officer and each of our two most highly compensated executive officers other than our Chief Executive Officer who were serving as executive officers at December 31, 2024, and whose annual compensation exceeded $100,000 during such year or would have exceeded $100,000 during such year if the executive officer were employed by the Company for the entire fiscal year (collectively the "named executive officers" or "NEOs").

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fiscal <br>Year** | **Salary <br>($)** | **Bonus <br>($)** | **Stock <br>Awards <br>($)** | **Option <br>Awards <br>($)** | **Non-Equity <br>Incentive Plan<br>Compensation <br>($)** | **All Other<br> Compensation <br>($)** | **Total <br>($)** |
| Gary Herman\* |  |  |  |  |  |  |  |  |
| Chief Executive Officer and Interim Chief Financial Officer | 2024 | $- |  |  |  |  |  | $- |
| Vassilios Gregoriou\*\* | 2024 | $800000 |  |  |  |  |  | $800000 |
| Former Chairman of the Board of Directors, Chief Executive Officer and Acting Chief Financial Officer | 2023 | $800000 |  |  |  |  |  | $800000 |
| James Coffey\*\* | 2024 | $475000 |  |  |  |  |  | $475000 |
| Chief Operating Officer and General Counsel | 2023 | $475000 |  |  |  |  |  | $475000 |
| Emory De Castro\*\* | 2024 | $350000 |  |  |  |  |  | $350000 |
| Chief Technology Officer & Director | 2023 | $350000 |  |  |  |  |  | $350000 |

---

\* Gary Herman, Chief Executive Officer, did not receive any compensation during the year ended December 31, 2024, and his current compensation package is being finalized.

\*\* The compensation amounts set forth above reflect earned compensation, however, the executives elected to forgo compensation payments beginning in June 2024. Such deferred compensation is reflected as an accrued liability for the balance owed.

**Narrative Disclosure to Summary Compensation Table**

***Compensation Philosophy and Objectives***

The Company operates in a dynamic and rapidly evolving environment, which requires a highly-skilled and technical workforce. As a result, the Company places great emphasis on its ability to attract, retain, and motivate top talent in the industry. The Company achieves these objectives by creating an appropriate balance between achieving short-term results and creating long-term sustainable value to shareholders that reinforces the linkage between pay and performance.

*Elements of Executive Compensation*

The compensation of executives of the Company includes three main elements: (i) base salary; (ii) an annual bonus; and (iii) long-term equity incentives. Perquisites and personal benefits are not a significant element of compensation for the Company's executive officers.

[**Table of Contents**](#toc)

*Base Salaries*

Base salary is provided as a fixed source of compensation for the Company's executive officers. Adjustments to base salaries are reviewed annually and as warranted throughout the year to reflect promotions or other changes in the scope of an executive officer's role or responsibilities, as well as to maintain market competitiveness.

Dr. Gregoriou's annual base salary was $800,000; Mr. Coffey's annual base salary was $475,000; Mr. De Castro's annual base salary was $350,000; and Mr. Herman did not receive any compensation for the year ended December 31, 2024.

*Annual Bonuses*

In 2024, the named executive officers were each eligible to receive an annual cash incentive award, based on the achievement of pre-approved key performance objectives determined by the Compensation Committee.

As provided in their respective employment agreements, the target bonus amount for Dr. Gregoriou was 150% of his base salary and for Mr. Coffey and Mr. De Castro was 100% of their base salaries. Actual bonus payouts vary based on Compensation Committee assessment of executive performance versus pre-established key performance indicators.

Management, at its discretion, decided there will not be performance related bonus payouts for fiscal year 2024.

*Equity Compensation*

In 2021, the Company adopted the Advent Technologies Holdings, Inc. 2021 Incentive Plan (the "2021 Equity Incentive Plan"). The 2021 Equity Incentive Plan advances the Company's interests by providing for the grant to our employees, directors, consultants and advisors of stock options, SARs, restricted and unrestricted stock and stock units, performance awards and other awards that are convertible into or otherwise based on our common stock. On April 29, 2024, the Company's stockholders approved an amendment to the 2021 Equity Incentive Plan to increase the number of shares of common stock issuable under the 2021 Equity Incentive Plan from 230,530 to 569,306.

Following the Business Combination, on June 11, 2021, the Compensation Committee made grants to select senior executives. The grants were made to recognize each executive's role and contributions to date, including outstanding efforts towards a successful transaction, as well as to incentivize and to retain the executives, and to further align them with the post-Business Combination stockholders. The Compensation Committee elected to not make any additional annual grants in 2023 and 2024 to the NEOs.

In recognition of Dr. Gregoriou's role and contributions related to the ratification of GreenHiPo by the EU, the Compensation Committee, in July 2022, granted a one-time special award of 5,833 time-vested restricted stock units ("RSUs") and stock options to purchase 5,833 shares of common stock to Dr. Gregoriou.

*Employment Agreements*

Advent is a party to certain offer letters with each of the named executive officers that set forth the initial terms and conditions of the officer's employment with Advent, each of which has since been superseded by new employment agreements as described in "Executive Compensation-Employment Agreements and Other Arrangements with Executive Officers and Directors-Employment and Consulting Arrangements with Executive Officers and Directors" below. The material terms of these offer letters are summarized below.

*Dr. Gregoriou* entered into an employment agreement with the Company on October 12, 2020 to receive an annual base salary of $800,000, a one-time signing bonus of $500,000, and eligibility to receive an annual performance bonus of cash. Dr. Gregoriou is eligible to participate in the Company's 2021 Equity Incentive Plan. Mr. Gregoriou was terminated from all of his positions with the Company as of October 24, 2024.

[**Table of Contents**](#toc)

*Mr. Coffey*. As described in further detail in the "Executive Compensation-Employment Agreements and Other Arrangements with Executive Officers and Directors-Employment and Consulting Arrangements with Executive Officers and Directors" section of this report, in connection with the announcement of the Business Combination, Mr. Coffey entered into an employment agreement with Advent, which became effective as of the consummation of the Business Combination.

*Mr. De Castro*. As described in further detail in the "Executive Compensation-Employment Agreements and Other Arrangements with Executive Officers and Directors-Employment and Consulting Arrangements with Executive Officers and Directors" section of this report, in connection with the announcement of the Business Combination, Mr. De Castro entered into an employment agreement with Advent, which became effective as of the consummation of the Business Combination.

*Employee Benefits*

The Company sponsors an employee savings plan under Section 401(k) of the Internal Revenue Code. Subsequent to the Business Combination, the Company made matching contributions equal to 100% of the participant's pre-tax contribution up to a maximum of 5% of the participant's eligible earnings for U.S employees. Total expense related to the Company's defined contribution plan was $0.1 million and $0.2 million for the years ended December 31, 2024 and 2023.

As described in Note 2 of the Company's audited consolidated financial statements for fiscal years 2024 and 2023, pursuant to Greek Labor Law 2112/1920, employees in Greece are entitled to an indemnity in the event of dismissal or retirement, though as a former director, Dr. Gregoriou was not eligible for such indemnity.

**Pay versus Performance**

The following tables and related disclosures provide information about (i) the "total compensation" of our principal executive officer ("PEO"), and our other named executive officers (the "Other NEOs" or the "Non-PEO NEOs") as presented in the table under "Executive Compensation – Summary Compensation", (ii) the "compensation actually paid" to our PEO and our Other NEOs, as calculated pursuant to the SEC's pay-versus-performance rules, (iii) certain financial performance measures, and (iv) the relationship of the "compensation actually paid" to those financial performance measures.

This disclosure has been prepared in accordance with Item 402(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended, and does not necessarily reflect value actually realized by the executives or how our compensation committee evaluates compensation decisions in light of company or individual performance.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Summary<br>Compensation<br>Table Total for<br>PEO<sup>(1)</sup>** | **Compensation<br>Actually Paid<br>to PEO<sup>(3)</sup>** | **Average Summary<br>Compensation Table<br>Total for<br>Non-PEO <br>NEOs<sup>(2)</sup>** | **Average<br>Compensation Actually<br>Paid to <br>Non-PEO <br>NEOs<sup>(3)</sup>** | **Value of Initial <br>Fixed $100 <br>Investment Based On <br>Total Shareholder <br>Return<sup>(4)</sup>** | **Net<br>Loss<sup>(5)</sup>** |
| 2024.0 | $800000 | $424713 | $412500 | $403682 | $(97.58) | $(37566) |
| 2023.0 | $800000 | $(1263182) | $425000 | $(95031) | $(96.77) | $(71397) |
| 2022.0 | $1697750 | $(4533070) | $425000 | $(1589095) | $(73.77) | $(74337) |

---

(1) The dollar amounts reported are the amounts of total compensation reported for Vassilios Gregoriou, our Chief Executive Officer/PEO, for each corresponding year in the "Total" column of the Summary Compensation Table. Refer to "Executive Compensation—Summary Compensation Table." Gary Herman, the Company's current Chief Executive Officer/PEO did not receive any compensation during 2024 or prior.

[**Table of Contents**](#toc)

(2) The dollar amounts reported represent the average of the amounts reported for our company's Non-PEO NEOs as a group (excluding Mr. Gregoriou and Mr. Herman) in the "Total" column of the Summary Compensation Table in each applicable year. The names of each of the named executive officers (excluding Mr. Gregoriou and Mr. Herman) included for purposes of calculating the average amounts in each applicable year are as follows: Mr. Coffey and Mr. De Castro for 2024, and Mr. Coffey and Mr. Brackman for 2023 and 2022.

(3) The dollar amounts reported represent the amount of "compensation actually paid" to our PEO and Non-PEO NEOs as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to total compensation for each year to determine the compensation actually paid:

● Stock Awards

● Option Awards

(4) Cumulative total shareholder return ("TSR") is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between our company's share price at the end and the beginning of the measurement period by our company's share price at the beginning of the measurement period. No dividends were paid on stock or option awards in 2022, 2023 or 2024.

(5) The dollar amounts reported represent the amount of net loss reflected in our consolidated audited financial statements for the applicable year.

---

| | | |
|:---|:---|:---|
|  | **2024** | **2024** |
|  | **PEO** | **Average<br> Non-PEO<br> NEOs** |
| **Summary Compensation Table Totals for Non-PEO NEOs** | $800000 | $412500 |
| Add (Subtract): |  |  |
| Fair value of equity awards granted during the year from the Summary Compensation Table |  |  |
| Fair value at year end of equity awards granted during the year |  |  |
| Change in fair value of equity awards granted in prior years that were unvested as of the end of the year |  | (4409) |
| Change in fair value of equity awards granted in prior years that vested during the year |  | (4409) |
| Deduct the amount of fair value at the end of the prior fiscal year for awards granted in prior years that forfeited during the covered fiscal year**<sup>(1)</sup>** | (375287) | - |
| **Compensation Actually Paid Totals** | $**424713** | $**403682** |

---

(1) On October 24, 2024, Mr. Gregoriou's termination for cause resulted in the forfeiture of 36,217 shares of vested stock options and 36,217 shares of vested restricted stock units, as well as 10,601 unvested stock options and 10,601 unvested restricted stock units.

[**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  | **2023** | **2023** |
|  | **PEO** | **Average<br>Non-PEO<br>NEOs** |
| **Summary Compensation Table Totals for Non-PEO NEOs** | $800000 | $425000 |
| Add (Subtract): |  |  |
| Fair value of equity awards granted during the year from the Summary Compensation Table |  |  |
| Fair value at year end of equity awards granted during the year |  |  |
| Change in fair value of equity awards granted in prior years that were unvested as of the end of the year | (1415428) | (346687) |
| Change in fair value of equity awards granted in prior years that vested during the year | (647754) | (173344) |
| **Compensation Actually Paid Totals** | $**(1263182)** | $**(95031)** |

---

---

| | | |
|:---|:---|:---|
|  | **2022** | **2022** |
|  | **PEO** | **Average<br>Non-PEO<br>NEOs** |
| **Summary Compensation Table Totals for Non-PEO NEOs** | $1697750 | $425000 |
| Add (Subtract): |  |  |
| Fair value of equity awards granted during the year from the Summary Compensation Table | (897750) |  |
| Fair value at year end of equity awards granted during the year | 537133 |  |
| Change in fair value of equity awards granted in prior years that were unvested as of the end of the year | (4402652) | (1510571) |
| Change in fair value of equity awards granted in prior years that vested during the year | (1467551) | (503524) |
| **Compensation Actually Paid Totals** | $**(4533070)** | $**(1589095)** |

---

[**Table of Contents**](#toc)

***Analysis of the Information Presented in the Pay Versus Performance Table***

In accordance with Item 402(v) of Regulation S-K, the graphs below compare the compensation actually paid to our PEO and the average of the compensation actually paid to our remaining NEOs, with (i) our TSR, and (ii) our net loss, in each case, for the fiscal years ended December 31, 2024, 2023 and 2022. TSR amounts reported in the graph assume an initial fixed investment of $100.

![](img_002.jpg)

![](img_003.jpg)

[**Table of Contents**](#toc)

![](img_004.jpg)

![](img_005.jpg)

A portion of our PEOs' compensation consists of equity awards. As a result, the change between the values disclosed in our Summary Compensation Table and Compensation Actually Paid tends to be directionally aligned with changes in our TSR.

While we are required by SEC rules to disclose the relationship between our net income and Compensation Actually Paid to our NEOs, this is not a metric our compensation committee currently uses in evaluating our NEOs' compensation as we are a company that has not generated any gross profit.

*All information provided above under the "Pay Versus Performance" heading will not be deemed to be incorporated by reference in any filing of our company under the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.*

[**Table of Contents**](#toc)

**Other Compensation Policies**

***Stock Ownership/Holding Policy***

The Company maintains meaningful stock ownership guidelines to reinforce the importance of stock ownership. These guidelines are intended to align the interests of executives and shareholders and to focus the executives on our long-term success. Under these guidelines, each of our active executives and non-employee directors must own shares in accordance with the following schedule:

---

| | |
|:---|:---|
| **Role** | **Required Ownership Level** |
| Chief Executive Officer and Chairman | 6.0x Base Salary |
| Other Executive Officers | 3.0x Base Salary |
| Non-Employee Directors | 3.0x Annual Cash Retainer |

---

Shares that count towards satisfying the ownership requirements include:

● Shares owned by the executive/director, including those obtained through the vesting of restricted stock units and performance stock units;

● Shares owned jointly by the executive/director and spouse or held in trust established by the; executive/director for the benefit of the executive/director and/or family members;

● Unvested time-based restricted stock units;

Note: Unvested performance stock units and unexercised stock options do not count towards satisfying stock ownership requirements.

Each executive or non-employee director has 5 years to meet the ownership guidelines starting from when the executive/director first becomes subject to the policy. Executives/directors who do not meet the ownership guidelines after 5 years of being subject to the guidelines are expected to retain 50% of net shares (i.e., shares remaining after payment of taxes) upon vesting or exercise of stock options until they meet the guidelines. Executive and Non-Employee Directors are either already in compliance with the stock ownership guidelines or expected to be within the 5-year timeframe.

***Prohibition on Pledging and Hedging***

The Company maintains a comprehensive Insider Trading Policy that includes a prohibition on pledging Company securities or holding Company securities in a margin account. Additionally, the policy prohibits engaging in hedging, monetization and similar transactions in respect of Company securities. This policy, applicable to all officers, directors and associates, was put in place to ensure that the interests of these individuals remain aligned with those of stockholders, and that they continue to have the incentive to execute the Company's long-term plans and achieve the performance for which their equity awards are intended.

**Employment Agreements and Other Arrangements with Executive Officers and Directors**

*Employment Agreements*

On October 12, 2020, in connection with the execution of the Merger Agreement and the announcement of the Business Combination Advent entered into employment agreements, with each of Dr. Gregoriou and Mr. Coffey. The material terms of these employment agreements are set forth below:

● Dr. Gregoriou served as our Chief Executive Officer (also served temporarily as Acting Chief Financial Officer) and Chairman of our board of directors, with an initial annual base salary of $800,000, a one-time signing bonus of $500,000, and beginning in fiscal year 2021, eligibility to earn an annual performance bonus with a target equal to 150% of his annual base salary.

[**Table of Contents**](#toc)

● Mr. Coffey serves as our Chief Operating Officer and General Counsel, with an annual base salary of $475,000, a one-time signing bonus of $250,000, and beginning in fiscal year 2021, eligibility to earn an annual performance bonus with a target equal to 100% of his annual base salary.

● Mr. De Castro serves as our Chief Technology Officer, with an annual base salary of $350,000, a one-time signing bonus of $250,000, and beginning in fiscal year 2021, eligibility to earn an annual performance bonus with a target equal to 100% of his annual base salary.

On August 13, 2021, Advent entered into employment agreement with Mr. Brackman, which was effective as of July 2, 2021 and superseded certain offer letter entered into between the Company and Mr. Brackman dated July 2, 2021. The material terms of this employment agreement are set forth below:

● Mr. Brackman served as our Chief Financial Officer, with an annual base salary of $375,000, a one-time relocation expense payment of $40,000, and beginning in fiscal year 2021, eligibility to earn an annual performance bonus with a target equal to 100% of his annual base salary.

The sign-on bonuses were paid in two installments: (i) 50% on the first payroll date following the consummation of the Business Combination and (ii) 50% on the first payroll date following the one-year anniversary of the consummation of the Business Combination, subject to the applicable executive's employment through the relevant payment date.

The employment agreements provide that if an executive's employment terminates without "cause" or by him for "good reason," (as such terms are defined in the employment agreement or term sheet, as applicable), the executive will be entitled to (i) up to 12 months' subsidized medical, dental and vision benefits continuation (18 months for Dr. Gregoriou) and (ii) payment of one times (two times for Dr. Gregoriou) the sum of such executive's annual base salary and target bonus, payable over 12 months. If such termination of employment without "cause" or resignation for "good reason" occurs within 60 days prior to, or 12 months following, a "change in control" (as such term is defined in the 2021 Equity Incentive Plan), severance is enhanced and provides for (i) up to 18 months' subsidized medical, dental and vision benefits continuation for all executives, (ii) two times (three times for Dr. Gregoriou) the sum of such executive's annual base salary and target bonus, payable over 12 months, and (iii) the initial grant of stock options and restricted stock units issued pursuant to the 2021 Equity Incentive Plan, shall become fully vested, and such options will remain exercisable for a period of one year following such termination of employment. Moreover, if the acquirer in such "change in control" does not agree to assume or substitute for equivalent stock options, any unvested portion of the initial grant of stock options shall become fully vested and exercisable at the time of such transaction.

The employment agreements for Dr. Gregoriou, Mr. Coffey and Mr. De Castro each contain (i) a perpetual confidentiality covenant, (ii) an assignment of intellectual property covenant, (iii) a non-competition covenant for one year post-termination of employment (subject to, for Dr. Gregoriou, the Executive's receipt of at least 50% of the Executive's highest annualized base salary within the two (2) year period preceding termination) for the entire year, (iv) a covenant not to solicit any of our customers, vendors, suppliers or other business partners during the eighteen (18)-month period following termination and (v) a covenant not to solicit any of our employees or independent contractors during the eighteen (18)-month period following termination.

Dr. Gregoriou was terminated for cause from his position as Chief Executive Officer of the Company on October 24, 2024.

*Non-Competition Agreements*

Simultaneously with the execution and delivery of the Merger Agreement, certain insider Advent stockholders entered into non-competition and non-solicitation agreements for the benefit of the Company, Advent and each of their respective present and future affiliates, successors and subsidiaries (each, a "<u>Non-Competition Agreement</u>"), to become effective at the Closing, pursuant to which the Advent stockholder party thereto agreed not to compete with the Company, Advent and their respective affiliates during the three (3) year period following the Closing in North America or the European Union (including Greece) or in any other markets in which the Company and Advent are engaged. The Advent stockholder party thereto also agreed during such three (3) year restricted period to not solicit employees or customers of such entities. The Non-Competition Agreement also contains customary confidentiality and non-disparagement provisions.

[**Table of Contents**](#toc)

**Outstanding Equity Awards at Fiscal Year End**

The following table provides information with respect to awards held by the named executive officers as of December 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Name** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Exercisable** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options (#)<br>Unexercisable** | **Option<br>Exercise<br>Price ($)** | **Option<br>Expiration<br>Date** | **Number of <br>Shares or <br>Units of Stock <br>that Have Not <br>Vested (#)** | **Market <br>Value of <br>Shares or <br>Units of Stock <br>That Have Not <br>Vested ($)<sup>(3)</sup>** |
| Emory De Castro**<sup>(1)(2)</sup>** | 8645 | 2882 | $310.80 | 6/11/2031 | 2882 | $14410 |
| James Coffey**<sup>(1)(2)</sup>** | 8645 | 2882 | $310.80 | 6/11/2031 | 2882 | $14410 |

---

(1) Option awards vest 25% upon each anniversary of February 4, 2021, the vesting commencement date, until the fourth anniversary of the vesting commencement date.

(2) Stock awards consist of grants of restricted stock units that vest 25% upon each anniversary of February 4, 2021, the vesting commencement date, until the fourth anniversary of the vesting commencement date.

(3) Market value of restricted stock unit awards is based on the closing price of $5.00 per share on December 31, 2024 on the Nasdaq Capital Market.

**Director Compensation**

Pursuant to offer letters with each of the Company's former non-employee directors (the "Director Offer Letters"), each director receives an annual retainer of $100,000, to be paid quarterly in arrears. In addition, each former non-employee director is eligible to receive an annual grant of stock awards for a number of shares of Company common stock determined by dividing $100,000 by the closing price per share of Company common stock on the applicable grant date. Each of the employee directors who served as members of the board of directors of the Company in 2024 did not receive any additional compensation for director services.

The Company's non-employee directors who joined the board on or after August 30, 2024, are not currently entitled to receive any compensation with respect to their board service.

[**Table of Contents**](#toc)

The following table sets forth all compensation paid to or earned by each non-employee director of the Company during fiscal year 2024.

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended<br> December 31, 2024** | **Year Ended<br> December 31, 2024** | **Year Ended<br> December 31, 2024** |
| <br>**Name** | **Fees<br> Earned or<br> Paid in<br>Cash ($)** | **Stock<br>Awards<br>($)<sup>(1)(2)</sup>** | **Total ($)** |
| Anggelos Skutaris<sup>(3)</sup> | $57222 | $25861 | $83083 |
| Lawrence Epstein<sup>(3)</sup> | $57222 | $25861 | $83083 |
| Wayne Threatt<sup>(3)</sup> | $57222 | $25861 | $83083 |
| Von McConnell<sup>(3)</sup> | $57222 | $25861 | $83083 |

---

(1) The amounts disclosed above reflect the full grant date fair values in accordance with FASB ASC Topic 718. See "Note 16 Stock-Based Compensation Plans" to our consolidated financial statements for the year ended December 31, 2024.

(2) On July 26, 2024, the Company granted to each non-employee director a total of 5,747 restricted stock units.

(3) Resigned from the Board of the Company, effective August 30, 2024

**Policy for Granting Certain Option Awards**

The Company does not have a formal policy regarding the granting of stock options. When granting stock options the Board takes into consideration any material non-public information when discussing and ultimately determining the date on which the options will be granted. In 2024 no options were granted during the four business day period prior to, or one business day following, the filing of the Company's periodic reports or the filing or furnishing of a Form 8-K that discloses material non-public information.

[**Table of Contents**](#toc)

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

There have been certain transactions, as disclosed below, since January 1, 2023 to which we have been a participant in which the amount involved, exceeded or will exceed $120,000, and in which any of our directors, executive officers or holders of more than 5% of our capital stock, or any members of their immediate family, had or will have a direct or indirect material interest, other than compensation arrangements which are described under "Executive Officer and Director Compensation."

***Balances with related parties***

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br>2024** | **April 15,<br>2025** |
| **Due to related parties** |  |  |
| Emory S. De Castro (Chief Technology Officer and Director) | 128 | 128 |
| **Total** | $**128** | $**128** |

---

The outstanding balance as of December 31, 2024, due to Mr. De Castro, the Company's Chief Technology Officer and member of the Board of Directors, relates to a short-term promissory note with the Company. The note is due by August 31, 2026 and bears interest at a rate of 5.00% per annum. The promissory note dated August 9, 2024, had an original principal balance of $128 thousand. As of December 31, 2024, and April 15, 2025, the Company did not make any payments against the outstanding principal or accrued interest pursuant to this note.

*Director Independence*

Our Board has determined that four (4) of our directors, Messrs. Schwartz, Seelenfreund, Lukash and Celia are independent directors in accordance with the listing requirements of the Nasdaq Capital Market, or Nasdaq. Under the rules of the Nasdaq Capital Market, independent directors must comprise a majority of a listed company's board of directors within one year of the completion of its initial public offering. In addition, the rules of the Nasdaq Capital Market require that, subject to specified exceptions, each member of a listed company's audit and compensation committees be independent and that director nominees be selected or recommended for the board's selection by independent directors constituting a majority of the independent directors or by a nominating and corporate governance committee comprised solely of independent directors. Under the rules of the Nasdaq Capital Market, a director will only qualify as "independent" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that such person is "independent" as defined by the applicable rules of the Nasdaq Capital Market and the Exchange Act.

Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. In order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee: (1) accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of its subsidiaries or (2) be an affiliated person of the listed company or any of its subsidiaries.

Based upon information requested from and provided by each director concerning his background, employment and affiliations, including family relationships, our board of directors has determined that four of our directors are "independent directors" as defined under applicable rules of the Nasdaq Capital Market, including, in the case of all the members of our audit committee, the independence criteria set forth in Rule 10A-3 under the Exchange Act, and in the case of all the members of our compensation committee, the independence criteria set forth in Rule 10C-1 under the Exchange Act. In making such determination, our board of directors considered the relationships that each such non-employee director has with our Company and all other facts and circumstances that our board of directors deemed relevant in determining his or her independence, including the beneficial ownership of our capital stock by each non-employee director. Mr. Herman is not an independent director under these rules because he is our Chief Executive Officer. Emory De Castro is not an independent director under these rules because he is our Chief Technology Officer.

[**Table of Contents**](#toc)

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information known to the Company regarding the beneficial ownership of our common stock as of August 14, 2025 by:

● each person known to us to be the beneficial owner of more than 5% of outstanding common stock;

● each of our named executive officers and directors; and

● all executive officers and directors as a group.

Beneficial ownership is determined according to the rules of the SEC, which generally provide that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power over that security, including options and warrants that are currently exercisable or exercisable within 60 days. Stock issuable upon exercise of options and warrants currently exercisable within 60 days are deemed outstanding solely for purposes of calculating the percentage of total voting power of the beneficial owner thereof.

The beneficial ownership of Company common stock is based on 2,670,386 shares of common stock outstanding as of August 14, 2025.

Unless otherwise indicated, the Company believes that each person named in the table below has sole voting and investment power with respect to all shares of Company common stock beneficially owned by them.

---

| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Number of**<br> **Shares** | **%** |
| Directors and Executive Officers: |  |  |
| Emory De Castro<sup>(1)</sup> | 91975 | 3.44 |
| James F. Coffey<sup>(2)</sup> | 40772 | 1.53 |
| *All directors and executive officers as a group (two individuals)<sup>(3)</sup>* | 132747 | 4.97 |
| Five percent holders: |  |  |
| Vassilios Gregoriou*<sup>(4)</sup>* | 212256 | 7.95 |

---

(1) Share amount includes 17,289 shares issuable upon exercise of options.

(2) Share amount includes an aggregate of 17,289 shares issuable upon exercise of options.

(3) Share amount includes an aggregate of 34,578 shares issuable upon exercise of options. Unless otherwise indicated, the business address of each of the individuals is 5637 La Ribera St., Suite A, Livermore, CA 94550.

(4) Pursuant to an SEC Form 4 filed with the SEC on September 8, 2023, Mr. Vassilios Gregoriou, the former Chief Executive Officer and former Chairman of the Board, has sole voting and dispositive power over such shares.

[**Table of Contents**](#toc)

**DESCRIPTION OF SECURITIES**

*The following summary of the material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities. The full text of our second amended and restated certificate of incorporation and second amended and restated bylaws are included as exhibits to the registration statement of which this prospectus is a part. You are encouraged to read the applicable provisions of Delaware law, our second amended and restated certificate of incorporation and second amended and restated bylaws in their entirety for a complete description of the rights and preferences of our securities. See "Where You Can Find More Information."*

**Authorized and Outstanding Capital Stock**

Pursuant to our Charter, the total number of shares of capital stock that we are authorized to issue is 501,000,000 shares, consisting of two classes as follows: (i) 500,000,000 shares of common stock, par value $0.0001 per share (the "common stock"), and (ii) 1,000,000 shares of preferred stock, par value $0.0001 per share.

As of August 14, 2025, our issued and outstanding share capital consisted of: (i) 2,670,286 shares of common stock, held of record by approximately 29 holders, and (ii) 1,140,546 warrants, consisting of 878,985 public warrants, held of record by two warrant holders. Such numbers do not include DTC participants or beneficial owners holding shares through nominee names.

**Common Stock**

*Voting Rights*

Except as otherwise required by law or the second amended and restated certificate of incorporation, holders of common stock are entitled to one vote for each share of common stock held of record by such holder on all matters on which stockholders are generally entitled to vote; provided, that, except as otherwise required by law, holders of common stock shall not be entitled to vote on any amendment to the second amended and restated certificate of incorporation that relates solely to the terms of one or more outstanding series of preferred stock if the holders of such affected series of preferred stock are entitle, either separately or together with the holders of one or more other such series of preferred stock, to vote thereon pursuant to the second amended and restated certificate of incorporation or the DGCL.

*Dividend Rights*

The board of directors may from time to time declare, and the Company may pay, dividends (payable in cash, property or shares of capital stock) on the Company's outstanding shares of capital stock, subject to applicable law and the second amended and restated certificate of incorporation.

*Liquidation, Dissolution and Winding Up*

On the liquidation, dissolution, distribution of assets or winding up of the Company, each holder of shares of common stock will be entitled, pro rata on a per share basis, to all assets of the Company of whatever kind available for distribution to the holders of common stock, subject to the designations, preferences, limitations, restrictions and relative rights of any other class or series of preferred stock then outstanding.

*Preemptive or Other Rights*

Our stockholders have no preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable to our common stock.

[**Table of Contents**](#toc)

***Preferred Stock***

The second amended and restated certificate of incorporation provides that shares of preferred stock may be issued from time to time in one or more series. Our board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. Our board of directors will be able to, without stockholder approval, issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the common stock and could have anti-takeover effects. The ability of our board of directors to issue preferred stock without stockholder approval could have the effect of delaying, deferring or preventing a change of control of us or the removal of existing management. We have no preferred stock outstanding at the date hereof. Although we do not currently intend to issue any shares of preferred stock, we cannot assure you that we will not do so in the future. No shares of preferred stock were issued or registered in the Business Combination.

**Warrants**

*Public Stockholders' Warrants*

There are currently outstanding an aggregate of 878,985 public warrants, which entitle the holder to acquire common stock. Each Public Warrant entitles the registered holder to purchase one share of Common Stock at a price of $345.00 per share, subject to adjustment, at any time commencing 30 days after the completion of the Business Combination. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. As of August 14, 2025, the Company's Public Warrants amounted to 878,985.

*Redemption of Warrants for Cash*

Once the public warrants become exercisable, we may call the warrants for redemption for cash:

● in whole and not in part;

● at a price of $340.00 per warrant;

● upon not less than 30 days' prior written notice of redemption (the "30-day redemption period") to each warrant holder; and

● if, and only if, the closing price of our common stock equals or exceeds $540 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days before we send the notice of redemption to the warrant holders.

If and when the public warrants become redeemable by us, we may not exercise our redemption right if the issuance of shares of common stock upon exercise of the warrants is not exempt from registration or qualification under applicable state blue sky laws or we are unable to effect such registration or qualification.

We have established the last of the redemption criteria discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the public warrants, each warrantholder will be entitled to exercise its warrant prior to the scheduled redemption date. However, the price of our common stock may fall below the $540.00 redemption trigger price (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) as well as the $0.01 warrant exercise price after the redemption notice is issued.

[**Table of Contents**](#toc)

*Redemption procedures and cashless exercise*

If we call the public warrants for redemption as described above, our management will have the option to require any holder that wishes to exercise its warrant to do so on a "cashless basis." In determining whether to require all holders to exercise their warrants on a "cashless basis," our management will consider, among other factors, our cash position, the number of warrants that are outstanding and the dilutive effect on our stockholders of issuing the maximum number of shares of common stock issuable upon the exercise of our warrants. If our management takes advantage of this option, all holders of public warrants would pay the exercise price by surrendering their warrants for that number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the "fair market value" (defined below) by (y) the fair market value. The "fair market value" shall mean the average reported last sale price of the common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. If our management takes advantage of this option, the notice of redemption will contain the information necessary to calculate the number of shares of common stock to be received upon exercise of the public warrants, including the "fair market value" in such case. Requiring a cashless exercise in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a warrant redemption. We believe this feature is an attractive option to us if we do not need the cash from the exercise of the warrants after the Closing. If we call our public warrants for redemption and our management does not take advantage of this option, Sponsor and its permitted transferees would still be entitled to exercise their placement warrants and working capital warrants for cash or on a cashless basis using the same formula described above that other warrantholders would have been required to use had all warrant-holders been required to exercise their warrants on a cashless basis, as described in more detail below.

A holder of a public warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person's affiliates), to the warrant agent's actual knowledge, would beneficially own in excess of 4.9% or 9.8% (or such other amount as a holder may specify) of the shares of common stock outstanding immediately after giving effect to such exercise.

*Anti-Dilution Adjustments*

If the number of outstanding shares of common stock is increased by a stock dividend payable in shares of common stock, or by a split-up of shares of common stock or other similar event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of common stock issuable on exercise of each public warrant will be increased in proportion to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling holders to purchase shares of common stock at a price less than the fair market value will be deemed a stock dividend of a number of shares of common stock equal to the product of (i) the number of shares of common stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for common stock) and (ii) one (1) minus the quotient of (x) the price per share of common stock paid in such rights offering divided by (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for common stock, in determining the price payable for common stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of common stock as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the shares of common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

In addition, if we, at any time while the public warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders of common stock on account of such shares of common stock (or other shares of our capital stock into which the warrants are convertible), other than (a) as described above or (b) certain ordinary cash dividends, then the warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of common stock in respect of such event.

[**Table of Contents**](#toc)

If the number of outstanding shares of our common stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of common stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of common stock issuable on exercise of each public warrant will be decreased in proportion to such decrease in outstanding shares of common stock.

Whenever the number of shares of common stock purchasable upon the exercise of the public warrants is adjusted, as described above, the warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares of common stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and (y) the denominator of which will be the number of shares of common stock so purchasable immediately thereafter.

In case of any reclassification or reorganization of the outstanding shares of common stock (other than those described above or that solely affects the par value of such shares of common stock), or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization of our outstanding shares of common stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the public warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of our common stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of common stock in such a transaction is payable in the form of common stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly exercises the warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the warrant agreement based on the Black-Scholes value (as defined in the warrant agreement) of the warrant. The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential value of the warrants in order to determine and realize the option value component of the warrant. This formula is to compensate the warrant holder for the loss of the option value portion of the warrant due to the requirement that the warrant holder exercise the warrant within 30 days of the event. The Black-Scholes model is an accepted pricing model for estimating fair market value where no quoted market price for an instrument is available.

The public warrants and the placement warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and AMCI. You should review a copy of the warrant agreement, which has been publicly filed with the SEC and which you can find in the list of exhibits to this registration statement, for a complete description of the terms and conditions applicable to the warrants. The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval by the holders of at least 65% of the then outstanding public warrants to make any change that adversely affects the interests of the registered holders of public warrants.

The public warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The warrantholders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their warrants and receive shares of common stock. After the issuance of shares of common stock upon exercise of the warrants, each holder will be entitled to one (1) vote for each share held of record on all matters to be voted on by stockholders.

[**Table of Contents**](#toc)

No fractional shares will be issued upon exercise of the public warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number of shares of common stock to be issued to the warrantholder.

**Certain Anti-Takeover Provisions of Delaware Law and our Second Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws**

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. This statute prevents certain Delaware corporations, under certain circumstances, from engaging in a "business combination" with:

● a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an "interested stockholder");

● an affiliate of an interested stockholder; or

● an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder.

A "business combination" includes a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:

● our board of directors approves the transaction that made the stockholder an "interested stockholder," prior to the date of the transaction; or

● after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded shares of common stock.

The second amended and restated certificate of incorporation provides that our board of directors is classified into three classes of directors. As a result, in most circumstances, a person can gain control of our board only by successfully engaging in a proxy contest at two or more annual meetings.

Our authorized but unissued common stock and preferred stock are available for future issuances without stockholder approval (including a specified future issuance) and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

<u>Exclusive forum for certain lawsuits</u>

The second amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought in our name, actions against directors, officers and employees for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware and, if brought outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service of process on such stockholder's counsel. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers.

<u>Special meeting of stockholders</u>

Our second amended and restated bylaws provide that special meetings of our stockholders may be called only by a majority vote of our board of directors, by our Chief Executive Officer or by our Chairman.

[**Table of Contents**](#toc)

<u>Advance notice requirements for stockholder proposals and director nominations</u>

Our second amended and restated bylaws provide that stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates for election as directors at our annual meeting of stockholders, must provide timely notice of their intent in writing. To be timely, a stockholder's notice will need to be received by the company secretary at our principal executive offices not later than the close of business on the 90th day nor earlier than the opening of business on the 120th day prior to the anniversary date of the immediately preceding annual meeting of stockholders. Pursuant to Rule 14a-8 of the Exchange Act, proposals seeking inclusion in our annual proxy statement must comply with the notice periods contained therein. Our amended and restated bylaws also specify certain requirements as to the form and content of a stockholders' meeting. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders.

<u>Action by written consent</u>

Any action required or permitted to be taken by our common stockholders must be effected by a duly called annual or special meeting of such stockholders and may not be effected by written consent of the stockholders.

**Classified Board of Directors**

Our board of directors is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year terms. The second amended and restated certificate of incorporation provides that the authorized number of directors may be changed only by resolution of the board of directors. Subject to the terms of any preferred stock, any or all of the directors may be removed from office at any time, but only for cause and only by the affirmative vote of holders of a majority of the voting power of all then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together as a single class. Any vacancy on our board of directors, including a vacancy resulting from an enlargement of our board of directors, may be filled only by vote of a majority of our directors then in office.

**Stock Exchange Listing**

Our Common Stock and Public Warrants are listed on Nasdaq under the symbols "ADN" and "ADNWW", respectively.

**Dividends**

We have not paid any cash dividends on our common stock to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital requirements and general financial conditions. The payment of any cash dividends is within the discretion of our board of directors at such time. Further, if we incur any indebtedness, our ability to declare dividends may be limited by restrictive covenants we may agree to in connection therewith.

**Transfer Agent and Registrar**

The transfer agent and registrar for our Common Stock is Continental Stock Transfer & Trust Company. We have agreed to indemnify Continental Stock Transfer & Trust Company in its roles as transfer agent, its agents and each of its stockholders, directors, officers and employees against all claims and losses that may arise out of acts performed or omitted for its activities in that capacity, except for any liability due to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.

[**Table of Contents**](#toc)

**PLAN OF DISTRIBUTION**

The shares of common stock offered by this prospectus are being offered by the Selling Stockholder, Hudson Global. The shares may be sold or distributed from time to time by Hudson Global directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed.

We entered into the Purchase Agreement with Hudson Global on August 14, 2025. The Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, Hudson Global is committed to purchase an aggregate of up to $52,000,000 of our common stock over the 24-month term of the Purchase Agreement.

The sale of the shares of our common stock offered by this prospectus could be effected in one or more of the following methods:

● ordinary brokers' transactions;

● transactions involving cross or block trades;

● through brokers, dealers or underwriters who may act solely as agents;

● "at the market" into an existing market for our common stock;

● in other ways not involving market makes or established business markets, including direct sales to purchasers or sales effected through agents;

● in privately negotiated transactions;

● any combination of the foregoing; or.

● any other method permitted pursuant to applicable law.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers.

Hudson Global is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act.

Hudson Global has informed us that it intends to use an unaffiliated broker to effectuate all sales, if any, of our common stock that it may acquire from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. Hudson Global has informed us that each such broker-dealer, may receive commissions from Lincoln Park for executing such sales for Hudson Global and, if so, such commissions will not exceed customary brokerage commissions.

Brokers, dealers, underwriters or agents participating in the distribution of the shares of our common stock offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the shares sold by Hudson Global through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of shares of our common stock sold by Hudson Global may be less than or in excess of customary commissions. Neither we nor Hudson Global can presently estimate the amount of compensation that any agent will receive from any purchasers of shares of our common stock sold by Hudson Global.

[**Table of Contents**](#toc)

We know of no existing arrangements between Hudson Global and any other stockholder, broker, dealer, underwriter, or agent relating to the sale or distribution of the shares offered by this prospectus.

We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by Hudson Global, including with respect to any compensation paid or payable by Hudson Global to any brokers, dealers, underwriters or agents that participate in the distribution of such shares by Hudson Global, and any other related information required to be disclosed under the Securities Act. At the time a particular offer of shares is made, a prospectus supplement, if required, will be distributed that will set forth the names of any agents, underwriters, or dealers and any compensation from the selling stockholder, and any other required information.

We may engage in "at-the-market offerings" into an existing trading market in accordance with Rule 415(a)(4) under the Securities Act. In addition, we may enter into derivative transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions. If the applicable prospectus supplement so indicates, in connection with those derivatives, the third parties may sell securities covered by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities pledged by us or borrowed from us or others to settle those sales or to close out any related open borrowings of stock, and may use securities received from us in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and, if not identified in this prospectus, will be named in the applicable prospectus supplement (or a post-effective amendment). In addition, we may otherwise loan or pledge securities to a financial institution or other third party that in turn may sell the securities short using this prospectus and an applicable prospectus supplement. Such financial institution or other third party may transfer its economic short position to investors in our securities or in connection with a concurrent offering of other securities.

We will pay all of the expenses incident to the registration, offering, and sale of the shares to Hudson Global.

We have agreed to indemnify Hudson Global and certain other persons against certain liabilities in connection with the offering of shares of common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities.

Hudson Global represented to us that at no time prior to the date of the Purchase Agreement has Hudson Global or its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our common stock or any hedging transaction. Hudson Global agreed that during the term of the Purchase Agreement, it, its agents, representatives or affiliates will not enter into or effect, directly or indirectly, any of the foregoing transactions.

We have advised Hudson Global that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes Hudson Global, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the shares offered by this prospectus.

The underwriters, dealers and agents may engage in transactions with us, or perform services for us, in the ordinary course of business for which they receive compensation.

No securities may be sold under this prospectus without delivery, in paper format or in electronic format, or both, of the applicable prospectus or prospectus supplement describing the method and terms of the offering.

**Listing of Common Stock and Transfer Agent**

Our common stock is listed on Nasdaq and trades under the symbol "ADN." The transfer agent for our common stock is Continental Stock Transfer & Trust Company.

[**Table of Contents**](#toc)

**LEGAL MATTERS**

Certain legal matters with respect to the shares offered hereby will be passed upon by Nutter, McClennen & Fish, LLP, Boston, Massachusetts.

[**Table of Contents**](#toc)

**EXPERTS**

The financial statements of our company for the year ended December 31, 2024 have been included in this prospectus in reliance upon the report of M&K CPAS, PLLC, ("M&K") an independent registered public accounting firm, upon the authority of said firm as experts in accounting and auditing.

The financial statements of our company for the year ended December 31, 2023 have been included in this prospectus in reliance upon the report of Ernst & Young (Hellas) Certified Auditors Accountants S.A. ("EY"), an independent registered public accounting firm, upon the authority of said firm as experts in accounting and auditing.

<u>Change In Registrant's Certifying Accountant</u>

On September 17, 2024, we dismissed EY as the Company's independent registered public accounting firm. On September 20, 2024, the Audit Committee of the Board of Directors of the Company (the "Audit Committee") appointed M&K as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2024, effective September 20, 2023 (the "Engagement Date").

EY's audit reports on the Company's consolidated financial statements as of and for the fiscal years ended December 31, 2023 and December 31, 2022 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles, other than the explanatory paragraph regarding the Company's ability to continue as a going concern.

During the fiscal years ended December 31, 2023 and December 31, 2022, and subsequent interim periods through the termination date, there were no disagreements with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of EY, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its opinion or reportable events under Item 304(a)(1)(v) of Regulation S-K, except that EY concurred with the Company's assessment of a material weakness related to the Company's internal controls over financial reporting.

The Audit Committee of the Company approved the engagement of M&K. During the two most recent fiscal years and through the Engagement Date, the Company did not consult with M&K regarding either:

● application of accounting principles to any specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report was provided to the Company nor oral advice was provided that M&K concluded was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or

● any matter that was either the subject of a disagreement (as defined in Regulation S-K, Item 304(a)(1)(iv) and the related instructions) or reportable event (as defined in Regulation S-K, Item 304(a)(1)(v)).

[**Table of Contents**](#toc)

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the securities offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. For further information about us or our securities offered hereby, we refer you to the registration statement and the exhibits and schedules filed thereto. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

We file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information are available for inspection and copying at the SEC's public reference facilities and the website of the SEC at www.sec.gov. Additionally, we will make these filings available, free of charge, on our website at www.advent.energy as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC. The information on our website, other than these filings, is not, and should not be, considered part of this prospectus supplement and is not incorporated by reference into this document.

[**Table of Contents**](#toc)

**FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **[Unaudited Condensed Consolidated Financial Statements of Advent Technologies Holdings, Inc. for the Six Months Ended June 30, 2025 and 2024](#b_001)** | **F-2** |
| [Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024](#b_002) | F-3 |
| [Unaudited Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2025 and 2024](#b_003) | F-4 |
| [Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2025](#loss_001) | F-5 |
| [Unaudited Condensed Consolidated Statements of Shareholders' Equity/(Deficit) for the Six Months Ended June 30, 2025 and 2024](#b_004) | F-6 |
| [Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](#b_005) | F-10 |
| [Notes to Unaudited Condensed Consolidated Financial Statements](#b_006) | F-11 – F-33 |
| **[Audited Consolidated Financial Statements of Advent Technologies Holdings, Inc. for the Years Ended December 31, 2024 and 2023](#b_007)** | **F-34** |
| [Report of Independent Registered Public Accounting Firm](#b_008) | F-35 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2023](#b_009) | F-39 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2024 and 2023](#b_010) | F-40 |
| [Condensed Consolidated Statements of Comprehensive Loss for the Years ended December 31, 2024 and 2023](#loss_002) | F-41 |
| [Consolidated Statements of Shareholders' Equity/(Deficit) for the Years Ended December 31, 2024 and 2023](#b_011) | F-42 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023](#b_012) | F-43 |
| [Notes to Consolidated Financial Statements](#b_013) | F-44 – F-91 |

---

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**JUNE 30, 2025 AND 2024**

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Amounts in USD thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
|  | (Unaudited) | |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $75 | $381 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 67 | 962 |
| &nbsp;&nbsp;&nbsp;Contract assets | 617 | 623 |
| &nbsp;&nbsp;&nbsp;Inventories |  | 8 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and Other current assets | 755 | 719 |
| **Total current assets** | **1514** | **2693** |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Intangibles, net | 99 | 85 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 4545 | 4638 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 214 | 274 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 318 | 317 |
| **Total non-current assets** | **5176** | **5314** |
| **Total assets** | $**6690** | $**8007** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade and other payables | $18883 | $16730 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 387 | 305 |
| &nbsp;&nbsp;&nbsp;Deferred income from grants, current | 1478 | 396 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 3718 | 3187 |
| &nbsp;&nbsp;&nbsp;Loss contingency liabilities |  | 5126 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 3101 | 2210 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 151 | 89 |
| &nbsp;&nbsp;&nbsp;Short-term loan payable, net of discount | 1452 | 559 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 192 | 170 |
| **Total current liabilities** | **29362** | **28772** |
| **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term operating lease liabilities | 64 | 184 |
| &nbsp;&nbsp;&nbsp;Defined benefit obligation | 109 | 97 |
| &nbsp;&nbsp;&nbsp;Deferred income from grants, non-current | 654 | 248 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | 5923 | 1 |
| **Total non-current liabilities** | **6750** | **530** |
| **Total liabilities** | **36112** | **29302** |
| **Commitments and contingent liabilities** |  |  |
| **Stockholders' equity/(deficit)** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value per share; Shares authorized: 500,000,000 at June 30, 2025 and December 31, 2024; Issued and outstanding: 2,670,286 and 2,636,508 at June 30, 2025 and December 31, 2024, respectively) |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value per share; Shares authorized: 1,000,000 at June 30, 2025 and December 31, 2024; nil issued and outstanding at June 30, 2025 and December 31, 2024) |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 199565 | 199015 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (1763) | (157) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (227224) | (220153) |
| **Total stockholders' equity/(deficit)** | **(29422)** | **(21295)** |
| **Total liabilities and stockholders' equity/(deficit)** | $**6690** | $**8007** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Amounts in USD thousands, except share and per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> June 30,**<br> (Unaudited) | **Three months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue, net | $99 | $654 | $231 | $3392 |
| Cost of revenues | (392) | (83) | (704) | (560) |
| **Gross loss** | **(293)** | **571** | **(473)** | **2832** |
| &nbsp;&nbsp;&nbsp;Income from grants | 1 | 424 | 43 | 1262 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (342) | (695) | (698) | (2110) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (1956) | 2374 | (4206) | (3819) |
| &nbsp;&nbsp;&nbsp;Sublease income |  |  |  | 145 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | (7) | (1) | (14) | (2) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (328) | - | (515) | - |
| **Operating loss** | **(2925)** | **2673** | **(5863)** | **(1692)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability |  |  |  | 59 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (325) | (54) | (569) | (286) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | 293 | (156) | 394 | (165) |
| &nbsp;&nbsp;&nbsp;Loss contingency | (840) | 36 | (1034) | (4871) |
| &nbsp;&nbsp;&nbsp;Net gains / (losses) on disposal/write-offs of property, plant and equipment and intangible assets |  | (12714) |  | (12735) |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | - | 2 | 2 | 6 |
| **Loss before income tax** | **(3797)** | **(10213)** | **(7070)** | **(19684)** |
| &nbsp;&nbsp;&nbsp;Income taxes | - | - | (1) | 55 |
| **Net loss from continuing operations** | $**(3797)** | $**(10213)** | **(7071)** | **(19629)** |
| **Income (loss) from discontinued operations** | **-** | **(1060)** | - | **(1000)** |
| **Net loss** | $**(3797)** | $**(11273)** | $**(7071)** | $**(20629)** |
| **Net loss per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from continuing operations** | **(1.42)** | **(3.88)** | **(2.66)** | **(7.52)** |
| &nbsp;&nbsp;&nbsp;**Basic income per share from discontinued operations** | **N/A** | **(0.40)** | **N/A** | **(0.38)** |
| &nbsp;&nbsp;&nbsp;**Basic loss per share** | **(1.42)** | **(4.28)** | **(2.66)** | **(7.91)** |
| &nbsp;&nbsp;&nbsp;**Basic weighted average number of shares** | **2665089** | **2634179** | **2653490** | **2609549** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from continuing operations** | **(1.42)** | **(3.88)** | **(2.66)** | **(7.52)** |
| &nbsp;&nbsp;&nbsp;**Diluted income per share from discontinued operations** | **N/A** | **(0.40)** | **N/A** | **(0.38)** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share** | **(1.42)** | **(4.28)** | **(2.66)** | **(7.91)** |
| &nbsp;&nbsp;&nbsp;**Diluted weighted average number of shares** | **2665089** | **2634179** | **2653490** | **2609549** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

**(Amounts in USD thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> June 30,<br> (Unaudited)** | **Three months ended<br> June 30,<br> (Unaudited)** | **Six months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) |
|  | **2025** | **2024** | **2025** | **2024** |
| **Net loss** | $**(3797)** | $**(11273)** | $**(7071)** | $**(20629)** |
| **Other comprehensive loss, net of tax effect:** |  |  |  |  |
| Foreign currency translation adjustment | (1100) | 50 | (1606) | (57) |
| **Other comprehensive loss from continuing operations** | **(1100)** | **50** | **(1606)** | **(57)** |
| **Discounting operations:** |  |  |  |  |
| Income / (loss) from discontinuing operations | **-** | **-** | **-** | **35** |
| **Total other comprehensive loss** | **(1100)** | **50** | **(1606)** | **(22)** |
| **Comprehensive loss** | $**(4897)** | $**(11223)** | $**(8677)** | $**(20651)** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

 

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.<br> UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT)**

**(Amounts in USD thousands, except share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series Seed** | **Preferred Stock<br> Series Seed** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated**<br>**OCI** | **Total<br> Stockholders' Equity/**<br>**(Deficit)** |
| **Balance as of March 31, 2025** |  | $**-** |  | $**-** | **2636508** | $**-** | $**199408** | $**(223427)** | $**(663)** | $**(24682)** |
| Stock issued under stock compensation plan (Unaudited) |  | **-** |  | **-** | 33778 | **-** | **-** | **-** | **-** | **-** |
| Stock based compensation expense (Unaudited) |  | **-** |  | **-** | **-** | **-** | 157 | **-** | **-** | 157 |
| Net loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | (3797) | **-** | (3797) |
| Other comprehensive loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | **-** | (1100) | (1100) |
| **Balance as of June 30, 2025 (Unaudited)** |  | $**-** |  | $**-** | **2670286** | $**-** | $**199565** | $**(227224)** | $**(1763)** | $**(29422)** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT)**

**(Amounts in USD thousands, except share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series Seed** | **Preferred Stock<br> Series Seed** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated**<br>**OCI** | **Total<br> Stockholders'<br> Equity/**<br>**(Deficit)** |
| **Balance as of March 31, 2024** |  | $**-** |  | $**-** | **2605135** | $**-** | $**197000** | $**(188515)** | $**(2406)** | $**6079** |
| Issuance of common stock for cash (Unaudited) |  | **-** |  | **-** | 31373 |  | 156 | **-** | **-** | 156 |
| Stock issued under stock compensation plan (Unaudited) |  | **-** |  | **-** |  |  | **-** | **-** | **-** |  |
| Stock based compensation expense (Unaudited) |  | **-** |  | **-** | **-** | **-** | 2109 | **-** | **-** | 2109 |
| Net loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | (11273) | **-** | (11273) |
| Other comprehensive loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | **-** | 50 | 50 |
| **Balance as of June 30, 2024 (Unaudited)** |  | $**-** |  | $**-** | **2636508** | $**-** | $**199265** | $**(199788)** | $**(2356)** | $**(2879)** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**<br> **UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT)**

**(Amounts in USD thousands, except share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series Seed** | **Preferred Stock<br> Series Seed** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated**<br>**OCI** | **Total<br> Stockholders' Equity/**<br>**(Deficit)** |
| **Balance as of December 31, 2024** |  | $**-** |  | $**-** | **2636508** | $**-** | $**199015** | $**(220153)** | $**(157)** | $**(21295)** |
| Stock issued under stock compensation plan (Unaudited) |  | **-** |  | **-** | 33778 |  |  | **-** | **-** |  |
| Stock issued under stock compensation plan (Unaudited) |  | **-** |  | **-** |  |  | **-** | **-** | **-** |  |
| Stock based compensation expense (Unaudited) |  | **-** |  | **-** | **-** | **-** | 550 | **-** | **-** | 550 |
| Reclassification of private warrants (Unaudited) |  | **-** |  | **-** | **-** | **-** |  |  | **-** |  |
| Net loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | (7071) | **-** | (7071) |
| Other comprehensive loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | **-** | (1606) | (1606) |
| **Balance as of June 30, 2025 (Unaudited)** |  | $**-** |  | $**-** | **2670286** | $**-** | $**199565** | $**(227224)** | $**(1763)** | $**(29422)** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT)**

**(Amounts in USD thousands, except share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series A** | **Preferred Stock<br> Series Seed** | **Preferred Stock<br> Series Seed** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Accumulated**<br>**OCI** | **Total<br> Stockholders'<br> Equity/**<br>**(Deficit)** |
| **Balance as of December 31, 2023** |  | $**-** |  | $**-** | **2580159** | $**-** | $**194941** | $**(179159)** | $**(2334)** | $**13448** |
| Issuance of common stock (Unaudited) |  | **-** |  | **-** | 56349 |  | 282 | **-** | **-** | 282 |
| Stock issued under stock compensation plan (Unaudited) |  | **-** |  | **-** |  |  | **-** | **-** | **-** |  |
| Stock based compensation expense (Unaudited) |  | **-** |  | **-** | **-** | **-** | 4042 | **-** | **-** | 4042 |
| Reclassification of private warrants (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** |  | **-** |  |
| Net loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | (20629) | **-** | (20629) |
| Other comprehensive loss (Unaudited) |  | **-** |  | **-** | **-** | **-** | **-** | **-** | (22) | (22) |
| **Balance as of June 30, 2024 (Unaudited)** |  | $**-** |  | $**-** | **2636508** | $**-** | $**199265** | $**(199788)** | $**(2356)** | $**(2879)** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amounts in USD thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended<br> June 30,<br> (Unaudited)** | **Six months ended<br> June 30,<br> (Unaudited)** |
|  | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| **Net loss for the six months ended** | $**(7071)** | $**(20629)** |
| **Net loss from discontinued operations** | **-** | **(1000)** |
| **Net loss from continuing operations** | **(7071)** | **(19629)** |
| **Adjustments to reconcile net loss to net cash flows used in operating activities:** |  |  |
| Depreciation of property and equipment | 391 | 1053 |
| Amortization of intangible assets | 14 | 2 |
| Credit loss allowance | 464 |  |
| Provision for litigation expenses | 1034 | 4871 |
| Fair value gain of warrant liability |  | (59) |
| Stock-based compensation expense | 550 | 4042 |
| Benefit for current and deferred income taxes | 1 | (55) |
| Net losses on disposal/write-offs of property, plant and equipment and intangible assets |  | **12733** |
| Provision for inventories | (34) | 239 |
| Net periodic cost of defined benefit obligation |  | 9 |
| **Changes in operating assets and liabilities:** |  |  |
| Decrease/(increase) in accounts receivable | 470 | (586) |
| (Increase) in due from related parties |  |  |
| Decrease/(increase) in contract assets | 6 | 9 |
| Decrease/(increase) in inventories | 42 | (159) |
| Increase in prepaid expenses and other current assets | 6 | (444) |
| Decrease in other non-current assets |  | 3 |
| (Decrease)/increase in trade payables | 524 | 1744 |
| (Decrease)/increase in due to related parties | 82 | (162) |
| (Decrease)/increase in deferred income from grants | 1310 | (832) |
| Increase in loss contingency liability | 172 | 292 |
| (Decrease)/increase in contract liabilities | 506 | 255 |
| (Decrease)/increase in other current liabilities | 374 | (119) |
| Decrease in other long-term liabilities |  |  |
| Operating lease asset and liabilities | - | (7208) |
| **Net Cash provided by / (used in) Operating Activities from continuing operations** | $**(1159)** | $**(4001)** |
| **Cash Flows from Investing Activities:** |  |  |
| Proceeds from sale of property and equipment |  | 300 |
| Purchases of property and equipment | (5) | (28) |
| Purchases of intangible assets | (24) | - |
| **Net Cash provided by / (used in) Investing Activities from continuing operations** | $**(29)** | $**272** |
| **Cash Flows from Financing Activities:** |  |  |
| Issuance of common stock |  | 282 |
| Repayments of debt | (1442) |  |
| Proceeds from borrowings | 2335 | - |
| **Net Cash provided by Financing Activities from continuing operations** | $**893** | $**282** |
| **Net decrease in cash and cash equivalents from continuing operations** | $**(295)** | $**(3447)** |
| Effect of exchange rate changes on cash and cash equivalents | (11) | (7) |
| **Net cash provided by / (used in) discontinued operations:** |  |  |
| Cash used in operating activities |  | (816) |
| Cash used in investing activities |  |  |
| Cash provided by financing activities |  | 540 |
| **Net cash used in discontinued operations** | **-** | **(276)** |
| **Net decrease in cash and cash equivalents** | **(306)** | **(3730)** |
| Cash and cash equivalents at the beginning of the period | 381 | 4412 |
| **Cash and cash equivalents at the end of the period** | $**75** | $**682** |
| **Supplemental Cash Flow Information** |  |  |
| **Non-cash operating activities:** |  |  |
| **Transfer of loss contingency liability to other long-term liabilities** | $**5203** | $**-** |

---

*See accompanying notes to unaudited condensed consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

 **1. Basis of presentation**

***Overview***

Advent Technologies Holdings, Inc. and its subsidiaries (collectively referred to as "Advent" and the "Company") is an advanced materials and technology development company operating in the fuel cell and hydrogen technology space. Advent develops, manufactures and assembles the critical components that determine the performance of hydrogen fuel cells and other energy systems. To date, Advent's principal operations have been to develop and manufacture Membrane Electrode Assembly (MEA), and fuel cell stacks and complete fuel cell systems for a range of customers in the stationary power, portable power, automotive, aviation, energy storage and sensor markets.

Advent has its headquarters in Livermore, California, and the Company has MEA and fuel cell product development facilities in Livermore, California and Patras, Greece. Previously, the Company's headquarters were located in Boston, Massachusetts. During June 2024, the Company closed its facilities in Boston, Massachusetts, and no longer maintains its facilities in Denmark and the Philippines due to the bankruptcy of Advent Technologies A/S in July 2024.

On February 4, 2021 ("Closing Date"), AMCI Acquisition Corp. ("AMCI"), consummated the business combination (the "Business Combination") pursuant to that certain merger agreement (the "Agreement and Plan of Merger"), dated October 12, 2020, by and among AMCI, AMCI Merger Sub Corp., a Delaware corporation and newly formed wholly-owned subsidiary of AMCI ("Merger Sub"), AMCI Sponsor LLC (the "Sponsor"), solely in the capacity as the representative from and after the effective time of the Business Combination for the stockholders of AMCI, Advent Technologies, Inc., a Delaware corporation ("Legacy Advent"), and Vassilios Gregoriou, solely in his capacity as the representative from and after the effective time for the Legacy Advent stockholders (the "Seller Representative"), as amended by Amendment No. 1 and Amendment No. 2 to the Agreement and Plan of Merger, dated as of October 19, 2020 and December 31, 2020, respectively, by and among AMCI, Merger Sub, Sponsor, Legacy Advent, and Seller Representative. In connection with the closing of the Business Combination (the "Closing"), AMCI acquired 100% of the stock of Legacy Advent (as it existed immediately prior to the Closing) and its subsidiaries.

On the Closing Date, and in connection with the closing of the Business Combination, AMCI changed its name to Advent Technologies Holdings, Inc. Legacy Advent was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification ("ASC") 805. This determination was primarily based on Legacy Advent's stockholders prior to the Business Combination having a majority of the voting interests in the combined company, Legacy Advent's operations comprising the ongoing operations of the combined company, Legacy Advent's board of directors comprising a majority of the board of directors of the combined company, and Legacy Advent's senior management comprising the senior management of the combined company. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Advent issuing stock for the net assets of AMCI, accompanied by a recapitalization. The net assets of AMCI are stated at historical cost, with no goodwill or other intangible assets recorded.

While AMCI was the legal acquirer in the Business Combination, because Legacy Advent was deemed the accounting acquirer, the historical financial statements of Legacy Advent became the historical financial statements of the combined company, upon the consummation of the Business Combination. As a result, the consolidated financial statements included in this report reflect (i) the historical operating results of Legacy Advent prior to the Business Combination; (ii) the results of the Company (combined results of AMCI and Legacy Advent) following the closing of the Business Combination; (iii) the assets and liabilities of Legacy Advent at their historical cost; and (iv) Company's equity structure for all periods presented.

In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date, to reflect the number of shares of the Company's common stock, $0.0001 par value per share, issued to Legacy Advent's stockholders in connection with the recapitalization transaction. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Advent Preferred Stock ("Preferred Series A" and "Preferred Series Seed") and Legacy Advent common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination Agreement. Activity within the statement of changes in stockholders' equity / (deficit) for the issuances of Legacy Advent's Preferred Stock, were also retroactively converted to Legacy Advent common stock.

[**Table of Contents**](#toc)

On February 18, 2021, Advent Technologies, Inc. entered into a Membership Interest Purchase Agreement with Bren-Tronics, Inc. ("Bren-Tronics") and UltraCell, LLC ("UltraCell"), a Delaware limited liability company and a direct wholly owned subsidiary of Bren-Tronics.

UltraCell LLC was renamed to Advent Technologies LLC following its acquisition by the Company.

On June 25, 2021, the Company entered into a Share Purchase Agreement, with F.E.R. fischer Edelstahlrohre GmbH, a limited liability company incorporated under the Laws of Germany (the "Seller") to acquire all of the issued and outstanding equity interests in SerEnergy A/S, a Danish stock corporation and a wholly-owned subsidiary of the Seller ("SerEnergy") and fischer eco solutions GmbH, a German limited liability company and a wholly-owned subsidiary of the Seller ("FES") together with certain outstanding shareholder loan receivables.

SerEnergy and FES were renamed to Advent Technologies A/S and Advent Technologies GmbH, respectively, following their acquisition by the Company on August 31, 2021.

The unaudited condensed consolidated financial statements of the Company have been prepared to reflect the consolidation of the companies listed below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Ownership Interest** | **Ownership Interest** | **Statements of Operations** | **Statements of Operations** |
| <br>**Company Name** | **Country of**<br>**Incorporation** | **Direct** | **Indirect** | **2025** | **2024** |
| Advent Technologies, Inc. | USA | 100% |  | 01/01 – 6/30 | 01/01 – 6/30 |
| Advent Technologies S.A. | Greece |  | 100% | 01/01 – 6/30 | 01/01 – 6/30 |
| Advent Technologies LLC | USA |  | 100% | 01/01 – 6/30 | 01/01 – 6/30 |
| Advent Technologies GmbH | Germany | 100% |  | 01/01 – 6/30 | 01/01 – 6/30 |

---

On July 25, 2024, Advent Technologies A/S was declared bankrupt by the court in Aalborg, Denmark. The petition was brought by IDA, the union of engineers for €402,000. As the Company did not have the ability to pay the full amount due, the Danish court declared Advent Technologies A/S bankrupt. Advent Technologies A/S and its wholly owned subsidiary Advent Green Energy Philippines, Inc. will be liquidated by the court appointed trustee to settle all claims under the bankruptcy. The Company anticipates it will receive no residual assets. As a result of their bankruptcy, Advent Technologies A/S and Advent Green Energy Philippines, Inc. (collectively referred to as the "Discontinued Subsidiaries") have been presented as discontinued operations in the accompanying financial statements.

***Unaudited Condensed Consolidated Financial Statements***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") and pursuant to the regulations of the U.S. Securities and Exchange Commission ("SEC"). The unaudited financial information reflects, in the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's audited consolidated financial statements as of and for the year ended December 31, 2024, included in the Annual Report on Form 10-K filed with the SEC on June 6, 2025. We reclassified certain prior year amounts in our consolidated financial statements to conform to the current year presentation.

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated.

Share and per share amounts are presented on a post-conversion basis for all periods presented, unless otherwise specified.

[**Table of Contents**](#toc)

***Going Concern***

The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company considers that the going concern basis is appropriate for the preparation of its unaudited condensed consolidated financial statements, as it is pursuing additional fund raising as disclosed below and has no intentions to proceed with liquidation. The going concern basis of presentation assumes that the Company will continue in operation one year from the date these unaudited condensed consolidated financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. As such, the accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year from the date that the unaudited condensed consolidated financial statements are issued. The Company's ability to meet its liquidity needs will largely depend on its ability to generate cash in the future. During the six months ended June 30, 2025, the Company used $1.2 million of cash from operating activities, and the Company's ability to generate cash in the future is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond the Company's control. Furthermore, the Company has suffered recurring operating losses and has a negative net working capital position of $27.8 million as of June 30, 2025. In addition, as of the issuance date of these unaudited condensed consolidated financial statements the Company is overdue in a number of its obligations which could give the right to creditors at any time from the issuance date of these consolidated financial statements to raise legal action against the Company which in turn could potentially lead to liquidation action against the Company and/or its subsidiaries. The transition to profitability and positive cash flow is highly dependent upon the successful development, approval, and commercialization of the Company's products and the achievement of a revenue level adequate to support its cost structure and the Company can give no assurances that this will occur. Based on the Company's current operating plan, the Company believes that its cash and cash equivalents as of June 30, 2025, of $0.1 million is not sufficient to fund operations and capital expenditures for the twelve months following the filing of this Quarterly Report on Form 10-Q, and the Company will need to obtain additional funding in the very near term, otherwise the Company may immediately substantially curtail or terminate its operations.

The Company performed a cash flow projection on a monthly basis for the twelve-month period following the issuance of the consolidated financial statements. The projected inflows from revenues and grants will be insufficient to cover the projected outflows, as such, the Company will continue to have a negative net working capital position and a delay in the projected timing of the short term financing and inflows and/or an immediate demand by creditors of repayment of the long outstanding payables may result in the Company being insolvent and short of cash at any specific time over the coming weeks and over the next twelve months.

Until such time as the Company generates sufficient revenue to fund its operations (if ever), the Company plans to finance its operations and repay its existing and future liabilities and other obligations through the sale of equity and/or debt securities and, to the extent available, short-term and long-term loans.

With regards to the projected revenues and grants, a delay in the projected timing of inflows may result in the Company remaining insolvent and short of cash at any specific time over the next twelve months. Also, there is no guarantee that the Company's plans to reduce monthly expenditures will be successful.

If the Company is unable to obtain sufficient funding, it could be required to delay its development efforts, limit activities, and further reduce research and development costs, which could adversely affect its business prospects and delivery of contractual obligations. A cash shortfall at any point in time over the next twelve months could result in the Company failing to meet its overdue and current obligations which could trigger action against the Company and/or its subsidiaries for liquidation by employees, authorities, or creditors. Because of the uncertainty in securing additional funding, delays in growth of revenue, failure to materialize cost-cutting efforts and the insufficient amount of cash and cash equivalents as of the consolidated financial statement filing date, management has concluded that substantial doubt exists with respect to the Company's ability to continue as a going concern for one year from the date the consolidated financial statements are issued.

[**Table of Contents**](#toc)

 **2. Summary of Significant Accounting Policies**

There have been no significant changes from the significant accounting policies disclosed in Note 2 of the "Notes to Consolidated Financial Statements" included in the Annual Report Form 10-K filed with the SEC on June 6, 2025.

The Company did not apply any new accounting policies during the six-month period ended June 30, 2025 other than those noted below.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, the carrying value of goodwill, provisions necessary for accounts receivables and inventory write downs, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions.

***Segment Information***

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM"), in deciding how to allocate resources and in assessing performance. The Company's Chief Executive Officer (currently also serving as Interim Chief Financial Officer), Chief Technology Officer, Chief Operating Officer and General Counsel, jointly and collectively serve as CODM, making decisions and managing the Company's operations as a single operating segment for purposes of allocating resources and evaluating financial performance. For the above reasons, the Company has determined that it operates in one reportable operating segment. The disaggregation of Company's revenue by geographic location and segment expenses are presented in Note 19.

***Cash and Cash Equivalents***

Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Cash and cash equivalents consist of cash on hand, deposits held on call with banks and investments in money market funds with original maturities of three months or less at the date of acquisition.

***Fair Value Measurements***

The Company follows the accounting guidance in ASC 820 for its fair value measurements of financial assets and liabilities measured at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

[**Table of Contents**](#toc)

The accounting guidance requires fair value measurements be classified and disclosed in one of the following three categories:

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

● Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

***Convertible Bond Loan***

On May 25, 2022, Advent Technologies S.A ("Advent SA") and UNI.FUND Mutual Fund ("UNIFUND") entered into an agreement to finance Cyrus SA ("Cyrus") with a convertible bond loan ("Bond Loan") of €1.0 million. As a part of this transaction, Advent SA offered €0.3 million in bond loans with an annual interest rate of 8.00%. The term of the loan is three years and there is a surcharge of 2.5% for overdue interest.

Cyrus business relates to the research and experimental development in natural sciences and mechanics, the construction of pumps and hydrogen compressors and the wholesale of compressors. Hydrogen compressors are a critical part of the Hydrogen Refueling Stations (HRS) to be used by transport applications. Cyrus has developed a prototype Metal Hydride Compressor which offers unique advantages. The proceeds from the Bond Loan are to cover Cyrus's working capital needs in the context of its operation and the product development.

Mandatory conversion of the Bond Loan will occur in the event of qualified financing which is equivalent to a share capital increase by Cyrus in the first three years from the execution of the Bond Loan agreement with a total amount over €3 million which is covered by third parties unrelated to the basic shareholders or by investors related to them.

The Company classifies the Bond Loan as an available for sale financial asset on the consolidated balance sheets. The Company recognizes interest income within the consolidated statement of operations. For the six months ended June 30, 2025, and 2024, the Company recognized $10 thousand and $14 thousand of interest income related to the Bond Loan within the consolidated statements of operations, respectively.

The Company initially measured the available for sale Bond Loan at the transaction price plus any applicable transaction costs. The Bond Loan is remeasured to its fair value at each reporting period and upon settlement. The estimated fair value of the Bond Loan is determined using Level 3 inputs by using a discounted cash flow model. The change in fair value is recognized within the consolidated statements of comprehensive loss. As of June 30, 2025, the Company has not received any settlement of the convertible bond and continues to fully reserve the Bond Loan as an expected credit loss. The Company did not recognize any unrealized gain / (loss) during the three and six months ended June 30, 2025, or 2024.

[**Table of Contents**](#toc)

 **3. Related party disclosures**

***Balances with related parties***

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | (Unaudited) |  |
| **Due to related parties** |  |  |
| Vassilios Gregoriou | $130 | $125 |
| Gary Herman | 44 |  |
| Emory S. De Castro | 213 | 180 |
| **Total** | $**387** | $**305** |

---

The outstanding balances as of June 30, 2025, due to the Company's executives and officers primarily relate to short-term promissory notes with the Company. The notes are due by August 31, 2026 and bear interest at a rate of 5.00% per annum. Emory S. De Castro's balance of $213 thousand is comprised of $133 thousand related to the promissory note and $80 thousand relates to certain expenses paid for on behalf of the Company.

The outstanding balances as of December 31, 2024, due to the Company's executives and officers primarily relate to short-term promissory notes with the Company. The notes are due by August 31, 2026 and bear interest at a rate of 5.00% per annum. Emory S. De Castro's balance of $180 thousand is comprised of $128 thousand related to the promissory note and $52 thousand relates to certain expenses paid for on behalf of the Company.

***Transactions with related parties***

Related parties' transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties.

 **4. Accounts receivable, net**

Accounts receivable consists of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Accounts receivable from third party customers | $2056 | $2799 |
| Less: Allowance for credit losses | (1989) | (1837) |
| **Accounts receivable, net** | $**67** | $**962** |

---

[**Table of Contents**](#toc)

 **5. Inventories**

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Raw materials and supplies | $5206 | $4540 |
| Work-in-process |  |  |
| Finished goods | 50 | 229 |
| **Total** | $**5256** | $**4769** |
| Provision for inventory | (5256) | (4761) |
| **Total** | $**-** | $**8** |

---

The changes in the provision for inventory is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the<br> Three Months Ended<br> June 30,<br> 2025** | **For the<br> Three Months Ended<br> June 30,<br> 2024** | **For the**<br> **Six Months Ended<br> June 30,<br> 2025** | **For the<br> Six Months Ended<br> June 30,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** | **(Unaudited)** | (Unaudited) | (Unaudited) |
| **Balance at beginning of period** | $**(4931)** | $**(5176)** | $**(4761)** | $**(5018)** |
| Additions during the period | 34 |  | 34 | (239) |
| Exchange differences | (359) | - | (529) | 81 |
| **Balance at end of period** | $**(5256)** | $**(5176)** | $**(5256)** | $**(5176)** |

---

 **6. Prepaid expenses and other current assets**

Prepaid expenses are analyzed as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Prepaid insurance expenses | $233 | $123 |
| Prepaid research expenses | 164 | 255 |
| Other prepaid expenses | 61 | 19 |
| **Total** | $**458** | $**397** |

---

[**Table of Contents**](#toc)

Prepaid insurance expenses as of June 30, 2025 and December 31, 2024 mainly include prepayments to insurers for directors' and officers' insurance services for liabilities that may arise in their capacity as directors and officers of a public entity.

Prepaid research expenses as of June 30, 2025 mainly relate to prepayments for expenses related to research grants.

Prepaid research expenses as of December 31, 2024 mainly relate to prepayments for expenses under the Cooperative Research and Development Agreement as discussed in Note 17.

Other prepaid expenses as of June 30, 2025 and December 31, 2024 mainly include prepayments for professional fees and purchases, which also include costs to fulfill a contract with customers which are expected to be recognized within 2025, upon delivery of services to these customers.

Other current assets are analyzed as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| VAT receivable | $11 | $49 |
| Grant receivable | 40 | 36 |
| Other receivables | 246 | 237 |
| **Total** | $**297** | $**322** |

---

**7. Intangible Assets**

Information regarding our intangible assets, including assets recognized from our acquisitions, as of June 30, 2025 and December 31, 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** | **As of June 30, 2025<br> (Unaudited)** |
| <br>(Amounts in thousands) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Cumulative<br> Impairment** | **Net<br> Carrying<br> Amount** |
| **Finite-lived intangible assets:** |  |  |  |  |
| Software | 300 | (201) | **-** | 99 |
| **Total intangible assets** | $**300** | $**(201)** | $**-** | $**99** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>(Amounts in thousands) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Cumulative<br> Impairment** | **Net<br> Carrying<br> Amount** |
| **Finite-lived intangible assets:** |  |  |  |  |
| Software | 250 | (165) | **-** | 85 |
| **Total intangible assets** | $**250** | $**(165)** | $**-** | $**85** |

---

[**Table of Contents**](#toc)

The Company recorded additions to indefinite-lived intangible assets of $0 thousand and $24 thousand for software during the three and six months ended June 30, 2025, respectively.

The Company did not record any additions to indefinite-lived intangible assets during the three and six months ended June 30, 2024.

The amortization expense for the intangible assets for the three months ended June 30, 2025 and 2024 was $7.0 thousand and $1.0 thousand, respectively.

The amortization expense for the intangible assets for the six months ended June 30, 2025 and 2024 was $14.0 thousand and $2.0 thousand, respectively.

Amortization expense is recorded on a straight-line basis. Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, future amortization expense related to the Company's intangible assets subject to amortization as of June 30, 2025 is expected to be as follows:

---

| | |
|:---|:---|
| (Amounts in thousands) |  |
| **Fiscal Year Ended December 31,** |  |
| 2025 | $21 |
| 2026 | 22 |
| 2027 | 14 |
| 2028 | 14 |
| 2029 | 14 |
| Thereafter | 14 |
| **Total** | $**99** |

---

**8. Property, plant and equipment, net**

The Company's property, plant and equipment, net, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Land, Buildings & Leasehold Improvements | $964 | $865 |
| Machinery | 5008 | 4512 |
| Equipment | 1817 | 1747 |
|  | $**7789** | $**7124** |
| Less: accumulated depreciation | (3244) | (102) |
| Less: impairment | - | (2384) |
| **Total** | $**4545** | $**4638** |

---

[**Table of Contents**](#toc)

During the three and six months ended June 30, 2025, additions to property, plant and equipment of nil and $5 thousand for equipment, respectively.

During the three and six months ended June 30, 2024, additions to property, plant and equipment of nil and $28 thousand, respectively, for equipment.

During the three and six months ended June 30, 2025, the Company did not dispose of any property, plant and equipment.

During the three and six months ended June 30, 2024, the Company disposed of leasehold improvements, sold machinery and disposed of other equipment for with an aggregate net book value of $13.6 million for net proceeds of $0.9 million resulting in a loss of $12.7 million.

On June 29, 2024, in an effort to reduce costs, the Company decided to abandon the facility at Hood Park and was able to find a new tenant to occupy the space. The Company and the landlord agreed to accelerate the expiration of the lease to occur on June 30, 2024. The Company had a letter of credit in the amount of $750 thousand in favor of the landlord and that letter of the credit was released to the landlord in satisfaction of any claims against the Company. During the three months ended June 30, 2024, the Company wrote off $9.8 million of leasehold improvements and $0.5 million of furniture as part of the exit of Hood Park.

Depreciation expense during the three and six months ended June 30, 2025 was $0.2 million and $0.4 million, respectively. Depreciation expense during the three and six months ended June 30, 2024 was $0.2 million and $0.4 million, respectively.

The Company has a short-term loan payable which is partially collateralized with the Company's property, plant and equipment, refer to Note 13.

**9. Other non-current assets**

Other non-current assets as of June 30, 2025 are comprised of advances to suppliers for the acquisition of fixed assets of $0.1 million and guarantees to suppliers of $0.2 million.

Other non-current assets as of December 31, 2024 are comprised of advances to suppliers for the acquisition of fixed assets of $0.1 million and guarantees to suppliers of $0.2 million.

**10. Trade and other payables**

Trade and other payables as of June 30, 2025 and December 31, 2024 include balances of suppliers and consulting service providers of $18.9 million and $16.7 million, respectively.

**11. Other current liabilities**

As of June 30, 2025 and December 31, 2024, other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Accrued expenses<sup>(1)</sup> | $320 | $388 |
| Other short-term payables | 1842 | 1303 |
| Taxes and duties payable | 302 | 330 |
| Social security funds | 226 | 189 |
| Fischer settlement – current liability | 411 | - |
| **Total** | $**3101** | $**2210** |

---

Other short-term payables largely consist of salary payable to the Company's officers who have not received a salary payment since May 2024.

(1) Accrued expenses are analyzed as follows:

[**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| (Amounts in thousands) | **(Unaudited)** |  |
| Accrued expenses for legal and consulting fees | $50 | $183 |
| Other accrued expenses | 270 | 205 |
| **Total** | $**320** | $**388** |

---

Other accrued expenses mainly consist of accrual of staff expenses and audit fees.

**12. Leases**

The Company enters into operating lease agreements for the use of real estate and certain other equipment. The Company determines if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The impacts of accounting for operating leases are included in Right-of-use assets, Operating lease liabilities, and Long-term operating lease liabilities in the Company's consolidated balance sheets.

Rental expense for all operating leases was $0.1 million and $0.2 million for the three months ended June 30, 2025, and 2024, respectively.

Rental expense for all operating leases was $0.1 million and $0.7 million for the six months ended June 30, 2025, and 2024, respectively.

As of June 30, 2025, and December 31, 2024, the right of use assets, net associated with operating leases was $0.2 million and $0.3 million, respectively.

As of June 30, 2025, undiscounted maturities of operating lease liabilities remaining are as follows (amounts in thousands):

---

| | |
|:---|:---|
|  | **Operating<br>Leases** |
| **Fiscal Year Ended December 31,** |  |
| 2025 | $118 |
| 2026 | 124 |
| 2027 | 19 |
| 2028 |  |
| 2029 |  |
| Thereafter | - |
| &nbsp;&nbsp;&nbsp;**Total undiscounted lease payments** | $**261** |
| Less: imputed interest | (46) |
| &nbsp;&nbsp;&nbsp;**Total discounted lease payments** | $**215** |
| Less: current portion | (151) |
| **Long-term lease liabilities** | $**64** |

---

[**Table of Contents**](#toc)

**13. Short-term loan payable**

On November 5, 2024, the Company entered into a term loan agreement with Agile Capital Funding, LLC as collateral agent, and Agile Lending, LLC, a Virginia limited liability company as "Lead Lender". The Company borrowed $594 thousand, net of fees paid to the lenders of $66 thousand. The Company is required to make weekly payments of approximately $31 thousand through maturity on June 19, 2025. The effective interest rate is 292.82% per year, assuming all payments are made on time. If the Company fails to make a payment on time the loan will be in default and the Company will be subject to an additional 5.00% default rate. Upon the prepayment of any principal amount, the Company is obligated to pay a prepayment fee comprising make-whole premium payment on account of such principal so paid, which Prepayment Fee shall be equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the Maturity Date. The Company may pay off the loan 30 days after funding for $792 thousand and 60 days after funding for $858 thousand. The Company paid off and refinanced the term loan on April 15, 2025.

On April 15, 2025, the Company entered into a term loan agreement with Agile Capital Funding, LLC as collateral agent, and Agile Lending, LLC, a Virginia limited liability company as "Lead Lender". The Company entered into a term loan for $870 thousand. The Company received net proceeds of $443 thousand, net of fees paid to the lenders of $87 thousand and its outstanding unpaid balance of the term loan dated November 5, 2024 of $340 thousand. The Company is required to make weekly payments of approximately $37 thousand through maturity on December 18, 2025. The effective interest rate is 250.67% per year, assuming all payments are made on time. If the Company fails to make a payment on time the loan will be in default and the Company will be subject to an additional 5.00% default rate. Upon the prepayment of any principal amount, the Company is obligated to pay a prepayment fee comprising make-whole premium payment on account of such principal so paid, which Prepayment Fee shall be equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the Maturity Date. The Company paid off and refinanced the term loan on June 20, 2025.

On June 20, 2025, the Company entered into a term loan agreement with Agile Capital Funding, LLC as collateral agent, and Agile Lending, LLC, a Virginia limited liability company as "Lead Lender". The Company entered into a term loan for $1.465 million. The Company received net proceeds of $221 thousand, net of fees paid to the lenders of $147 thousand and its outstanding unpaid balance of the term loan dated April 15, 2025 of $1.1 million. The Company is required to make weekly payments of $45-66 thousand through maturity on February 27, 2026. The effective interest rate is 206% per year, assuming all payments are made on time. If the Company fails to make a payment on time the loan will be in default and the Company will be subject to an additional 5.00% default rate. Upon the prepayment of any principal amount, the Company is obligated to pay a prepayment fee comprising make-whole premium payment on account of such principal so paid, which Prepayment Fee shall be equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the Maturity Date. The Company has made repayments totaling $45 thousand during the six months ended June 30, 2025.

The loans are collateralized with all of the Company's goods, accounts, equipment, inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, general intangibles (including intellectual property), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other collateral accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all of the Company's books and records relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

[**Table of Contents**](#toc)

**14. Private Placement Warrants and Working Capital Warrants**

In connection with the Business Combination, the Company assumed 131,343 Private Placement Warrants issued upon AMCI's initial public offering. In addition, upon the closing of the Business Combination, the working capital loan provided by AMCI's Sponsor to AMCI was converted into 13,333 Working Capital Warrants, which were also assumed. The terms of the Working Capital Warrants are the same as those of the Private Placement Warrants.

As of June 30, 2025 and December 31, 2024, the Company had an aggregate of 65,671 Private Placement Warrants and Working Capital Warrants outstanding. Each Private Placement Warrant and Working Capital Warrant entitles the registered holder to purchase one share of Common Stock at a price of $345.00 per share, subject to adjustment, at any time commencing 30 days after the completion of the Business Combination. The Public Warrants expire five years after the closing of the Business Combination or earlier upon redemption or liquidation.

The Private Placement Warrants and Working Capital Warrants are identical to the Public Warrants, except that the Private Placement Warrants and Working Capital Warrants and the common stock issuable upon the exercise of those warrants were not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants and Working Capital Warrants are exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If those warrants are held by someone other than the initial purchasers or their permitted transferees, they will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. As of June 30, 2025, an aggregate of 65,671 Private Placement Warrants and Working Capital Warrants are held by its initial purchasers.

According to the provisions of the Private Placement Warrants and Working Capital Warrants warrant agreements, the exercise price and number of shares of common stock issuable upon exercise of those warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. Private Placement Warrants and Working Capital Warrants are classified as liabilities in accordance with the Company's evaluation of the provisions of ASC 815-40-15, which provides that a warrant is not indexed to the issuer's common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant with a fixed exercise price and fixed number of underlying shares.

 **15. Stockholders' Equity**

***Shares Authorized***

As of June 30, 2025, the Company had authorized a total of 501,000,000 shares for issuance with 500,000,000 shares designated as common stock, par value $0.0001 per share, and 1,000,000 shares designated as preferred stock, par value $0.0001 per share.

***Common Stock***

On April 14, 2025, the Company issued 33,778 common shares related to the vesting of restricted stock units issued in connection with its stock compensation program.

From April 1, 2024 through April 15, 2024, 31,373 shares of common stock were issued in connection with the At the Market Offering with H.C. Wainwright & Co., LLC for net proceeds of $0.2 million.

From February 2, 2024, through March 28, 2024, 24,976 shares of common stock were issued in connection with the At the Market Offering with H.C. Wainwright & Co., LLC and received net proceeds of $0.1 million.

As of June 30, 2025 and December 31, 2024, there were 2,670,286 and 2,636,508 shares of issued and outstanding common stock with a par value of $0.0001 per share, respectively.

[**Table of Contents**](#toc)

***Reverse Stock Split***

On April 29, 2024 and April 30, 2024, our stockholders and Board, respectively, approved a reverse stock split of our Common Stock, at a ratio of 1-for-30 (the "Reverse Stock Split"), as of the Effective Date. The Effective Date of the Reverse Stock Split with the Secretary of the Commonwealth of Massachusetts was 5:00 p.m. on May 13, 2024 and May 14, 2024 in the marketplace.

On the Effective Date, the total number of shares of our Common Stock held by each shareholder was converted automatically into the number of whole shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by such shareholder immediately prior to the Reverse Stock Split, divided by (ii) 30.

No fractional shares were issued in connection with the Reverse Stock Split, and stockholders who would otherwise be entitled to a fractional share received a proportional cash payment, resulting in the reduction of 378 shares. The Reverse Stock Split did not have any effect on the stated par value of the Company's Common Stock. The rights and privileges of the holders of shares of Common Stock will be unaffected by the Reverse Stock Split.

The Company is authorized to issue 501,000,000 shares of Common Stock and that number did not change as a result of the Reverse Stock Split.

The consolidated financial statements and footnote disclosures have been updated to reflect the retrospective effect of the reverse stock split for all periods presented.

***At the Market Offering Agreement***

On June 2, 2023, the Company entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC, as sales agent (the "Agent"), to create an at-the-market equity program under which it may sell up to $50 million of shares of the Company's common stock (the "Shares") from time to time through the Agent (the "ATM Offering"). Under the ATM Agreement, the Agent will be entitled to a commission at a fixed rate of 3.0% of the gross proceeds from each sale of Shares under the ATM Agreement.

Sales of the Shares, if any, under the ATM Agreement may be made in transactions that are deemed to be "at-the-market equity offerings" as defined in Rule 415 under the Securities Act, including sales made by means of ordinary brokers' transactions, including on the Nasdaq Capital Market, at prevailing market prices at the time of sale or as otherwise agreed with the Agent. The Company has no obligation to sell, and the Agent is not obligated to buy or sell, any of the Shares under the Agreement and may at any time suspend offers under the Agreement or terminate the Agreement. The ATM Offering will terminate upon the termination of the ATM Agreement as permitted therein. The Shares will be issued pursuant to the Company's previously filed Registration Statement on Form S-3 (File No. 333-271389) that was declared effective on May 2, 2023, and a prospectus supplement and accompanying prospectus relating to the ATM Offering filed with the SEC on June 2, 2023.

Deferred offering costs associated with the ATM Agreement are reclassified to additional paid in capital on a pro-rata basis when the Company completes offerings under the ATM Agreement. Any remaining deferred costs will be expensed to the statements of operations should the planned offering be terminated.

During the six months ended June 30, 2024, the Company issued and sold an aggregate of 56,349 shares of common stock under the ATM Offering.

[**Table of Contents**](#toc)

***Public Warrants***

In connection with the Business Combination, the Company assumed the Public Warrants issued upon AMCI's initial public offering.

As of December 31, 2020, the Company had 735,069 Public Warrants outstanding. Each Public Warrant entitles the registered holder to purchase one share of common stock at a price of $345.00 per share, subject to adjustment, at any time commencing 30 days after the completion of the Business Combination. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. During the second quarter of 2021, certain warrant holders exercised their option to purchase an additional 760 shares at $345.00 per share. These exercises generated $262,177 additional proceeds to the Company and increased the Company's shares outstanding by 760 shares. During 2023, one original Private Warrant Holder sold all their Private Placement Warrants resulting in a reclassification to Public Warrants. Following these exercises, as of June 30, 2025, the Company's Public Warrants amounted to 813,314.

Once the warrants become exercisable, the Company may redeem the Public Warrants:

– in whole and not in part;

at a price of $0.01 per warrant;

– upon not less than 30 days' prior written notice of redemption;

if, and only if, the reported last sale price of the Company's Common Stock equals or exceeds $540.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders; and

– if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying such warrants.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a "cashless basis," as described in the warrant agreement. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. In addition, the warrant agreement provides that in case of a tender offer or exchange that involves 50% or more of the Company's stockholders, the Public Warrants may be settled in cash, equity securities or other assets depending on the kind and amount received per share by the holders of the common stock in such consolidation or merger that affirmatively make such election.

The Public Warrants are classified in equity in accordance with the Company's evaluation of the provisions of ASC 480 and ASC 815. The Company analyzed the terms of the Public Warrants and concluded that there are no terms that provide that the warrant is not indexed to the issuer's common stock. The Company also analyzed the tender offer provision discussed above and considering that upon the Closing of the Business Combination the Company has a single class of common shares, concluded that the exception discussed in ASC 815-40-25 applies, and thus equity classification is not precluded.

***Stock-Based Compensation Plans***

***2021 Equity Incentive Plan***

The Company's Board of Directors (sometimes referred to herein as the "Board") and stockholders previously approved the 2021 Equity Incentive Plan (the "Plan") to reward certain employees and directors of the Company. The Plan has been established to advance the interests of the Company by providing for the grant to Participants of Stock and Stock-based Awards. The maximum number of shares of Common Stock that may be delivered in satisfaction of Awards under the Plan is 569,273 shares. On April 29, 2024, the stockholders voted to increase the number of shares of Common Stock issuable under the Company's 2021 Equity Incentive Plan from 230,530 to 569,306.

[**Table of Contents**](#toc)

***Stock Options***

Pursuant to and subject to the terms of the Plan the Company entered into separate Stock Option Agreements with each participant according to which each participant is granted an option (the "Stock Option") to purchase up to a specific number of shares of common stock set forth in each agreement with an exercise price equal to the market price of Company's common stock at the date of grant. The Company did not grant Stock Options during the six months ended June 30, 2025.

Stock Options are granted to each participant in connection with their employment with the Company. The Stock Options vest on a graded basis over four years. The Company has a policy of recognizing compensation cost on a straight-line basis over the total requisite service period for the stock options. The Company recognized compensation cost of $0.1 million and $0.2 million in respect of Stock Options granted, which is included in administrative and selling expenses in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2025, respectively. The Company recognized compensation cost of $0.7 million and $1.4 million in respect of Stock Options granted, which is included in administrative and selling expenses in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2024, respectively. The Company also has a policy of accounting for forfeitures when they occur.

The following table summarizes the activities for our unvested stock options for the three months ended June 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> options** | **Weighted<br> Average<br> Grant Date<br> Fair Value** |
| **Unvested as of December 31, 2024** | **10327** | $**225.86** |
| Vested | (5892) | $305.51 |
| Forfeited | (238) | $95.44 |
| **Unvested as of June 30, 2025** | **4197** | $**87.36** |

---

As of June 30, 2025, there was $0.1 million of unrecognized compensation cost related to unvested Stock Options. This amount is expected to be recognized over the remaining vesting period of Stock Options.

***Restricted Stock Units***

Pursuant to and subject to the terms of the Plan the Company entered into separate Restricted Stock Units ("RSUs") with each participant. On the grant date of RSUs, the Company grants to each participant a specific number of RSUs as set forth in each agreement, giving each participant the conditional right to receive without payment one share of common stock. The RSUs are granted to each participant in connection with their ongoing employment with the Company. The Company has in place Restricted Stock Unit Agreements that vest within one year and Restricted Stock Unit Agreements that vest on a graded basis over four years. The Company has a policy of recognizing compensation cost on a straight-line basis over the total requisite service period. The Company recognized compensation cost of $0.1 million and $0.3 million in respect of RSUs, which is included in administrative and selling expenses in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2025, respectively. The Company recognized compensation cost of $1.4 million and $2.7 million in respect of RSUs, which is included in administrative and selling expenses in the unaudited condensed consolidated statement of operations for the three and six months ended June 30, 2024, respectively. The Company also has a policy of accounting for forfeitures when they occur. The Company did not grant RSUs during the six months ended June 30, 2025.

[**Table of Contents**](#toc)

The following table summarizes the activities for our unvested RSUs for the three months ended June 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted<br> Average<br> Grant Date<br> Fair Value** |
| **Unvested as of December 31, 2024** | **10327** | $**245.33** |
| Vested | (5892) | $305.92 |
| Forfeited | (238) | $146.55 |
| **Unvested as of June 30, 2025** | **4197** | $**117.95** |

---

As of June 30, 2025, there was $0.2 million of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over the remaining vesting period of Restricted Stock Unit Agreements.

 **16. Revenue**

Revenue is analyzed as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** **June 30,**<br> (Unaudited) | **Three Months Ended** **June 30,**<br> (Unaudited) | **Six Months Ended**<br> **June 30,**<br> (Unaudited) | **Six Months Ended**<br> **June 30,**<br> (Unaudited) |
| <br>(Amounts in thousands) | **2025** | **2024** | **2025** | **2024** |
| Sales of goods | $72 | $654 | $78 | $2274 |
| Sales of services | 27 | - | 153 | 1118 |
| **Total revenue from contracts with customers** | $**99** | $**654** | $**231** | $**3392** |

---

The timing of revenue recognition is analyzed as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) |
| <br>(Amounts in thousands) | **2025** | **2024** | **2025** | **2024** |
| **Timing of revenue recognition** |  |  |  |  |
| Revenue recognized at a point in time | $72 | $654 | $78 | $2274 |
| Revenue recognized over time | 27 | - | 153 | 1118 |
| **Total revenue from contracts with customers** | $**99** | $**654** | $**231** | $**3392** |

---

As of June 30, 2025 and December 31, 2024, Advent recognized contract assets of $617 thousand and $623 thousand, respectively, on the consolidated balance sheets.

As of June 30, 2025 and December 31, 2024, Advent recognized contract liabilities of $3.7 million and $3.2 million, respectively, in the consolidated balance sheets. During the three and six months ended June 30, 2025, the Company did not recognize any in revenue.

[**Table of Contents**](#toc)

 **17. Collaborative Arrangements**

***Cooperative Research and Development Agreement***

In August 2020, the Company entered into a Cooperative Research and Development Agreement ("CRADA") with Triad National Security, LLC ("TRIAD"), Alliance for Sustainable Energy LLC ("ASE"), and Brookhaven Science Associates ("BSA"). The purpose of this project is to build a fuel cell prototype that moves this technology closer to commercial readiness which was sanctioned by the Los Alamos National Laboratory and the National Renewable Energy Laboratory. The Government's estimated total contribution, which is provided through TRIAD's, ASE's, and BSA's respective contracts with the Department of Energy is $1.2 million, subject to available funding. As a part of the CRADA, the Company is required to contribute $1.2 million in cash and $0.6 million of in-kind contributions, such as personnel salaries. The cash payments are capitalized and amortized on a straight-line basis over the life of the contract. In-kind contributions are expensed as incurred. To date, the Company has not recognized any revenue from the CRADA. In December 2022, the term of the agreement was extended until March 3, 2024. In January 2024, the term of the agreement was extended until September 3, 2024.

***Expenses from Collaborative Arrangements***

For the three and six months ended June 30, 2024, an amount of $0.1 million and $0.1 million has been recognized in research and development expenses on the unaudited condensed consolidated statements of operations, respectively.

 **18. Income Taxes**

To calculate the interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate and applies that to its ordinary quarterly earnings. The effect of changes in the enacted tax laws or rates is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and judgments including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent differences between book and tax amounts, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or the tax environment changes.

During the three and six months ended June 30, 2025, the Company recorded income tax expense of nil and $(1.0) thousand, respectively. During the three and six months ended June 30, 2024, the Company recorded income tax benefit of nil and $0.1 million, respectively, mainly related to net operating loss carryforwards.

A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The Company provides a valuation allowance to offset deferred tax assets for net operating losses incurred during the year and for other deferred tax assets where, in the Company's opinion, it is more likely than not that the financial statement benefit of these losses will not be realized. As of June 30, 2025 and December 31, 2024, the Company provided a valuation allowance to offset the deferred tax asset related to the net operating loss carryforwards.

[**Table of Contents**](#toc)

 **19. Segment Reporting and Information about Geographical Areas**

**Reportable Segments**

The Company develops and manufactures high-temperature proton exchange membranes ("HT-PEM" or "HT-PEMs") and fuel cell systems for the off-grid and portable power markets and plans to expand into the mobility market. The Company's current revenue is derived from the sale of fuel cell systems and from the sale of MEAs, membranes, and electrodes for specific applications in the fuel cell and energy storage (flow battery) markets. The research and development activities are viewed as another product line that contributes to the development, design, production and sale of fuel cell products; however, it is not considered a separate operating segment. The Company has identified one business segment.

As a single reportable segment entity, the determined measure of profit or loss is the Company's consolidated net income (loss). Consolidated asset information for the Company's single reportable segment is presented in the Company's consolidated balance sheets.

The table below is a summary of the segment net loss from continuing operations before income taxes, including significant segment expenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> June 30,**<br> (Unaudited) | **Three months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) | **Six months ended<br> June 30,**<br> (Unaudited) |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue, net | $99 | $654 | $231 | $3392 |
| Cost of revenues | (392) | (83) | (704) | (560) |
| **Gross loss** | **(293)** | **571** | **(473)** | **2832** |
| &nbsp;&nbsp;&nbsp;Income from grants | 1 | 424 | 43 | 1262 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (342) | (695) | (698) | (2110) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (1956) | 2374 | (4206) | (3819) |
| &nbsp;&nbsp;&nbsp;Sublease income |  |  |  | 145 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | (7) | (1) | (14) | (2) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (328) |  | (515) |  |
| &nbsp;&nbsp;&nbsp;Impairment losses | - | - | - | - |
| **Operating loss** | **(2925)** | **2673** | **(5863)** | **(1692)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability |  |  |  | 59 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (325) | (54) | (569) | (286) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | 293 | (156) | 394 | (165) |
| &nbsp;&nbsp;&nbsp;Loss contingency | (840) | 36 | (1034) | (4871) |
| &nbsp;&nbsp;&nbsp;Net gains / (losses) on disposal/write-offs of property, plant and equipment and intangible assets |  | (12714) |  | (12735) |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | - | 2 | 2 | 6 |
| **Segment and consolidated net loss before income taxes** | $**(3797)** | $**(10213)** | $**(7070)** | $**(19684)** |

---

[**Table of Contents**](#toc)

**Geographic Information**

The following table presents revenues, by geographic location (based on the location of the entity selling the product) for the three and six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) |
| <br>(Amounts in thousands) | **2025** | **2024** | **2025** | **2024** |
| North America | $10 | $649 | $135 | $3217 |
| Europe | 89 | 5 | 96 | 175 |
| **Total net sales** | $**99** | $**654** | $**231** | $**3392** |

---

 **20. Commitments and contingencies**

**Litigation**

The Company is subject to legal and regulatory actions that arise from time to time in the ordinary course of business. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves significant judgment about future events.

There is no material pending or threatened litigation against the Company that remains outstanding as of June 30, 2025, that is considered probable or reasonably possible, with the following exceptions:

***Litigation with former employee terminated for cause***

On May 9, 2025, Chris Kaskavelis ("Kaskavelis"), a former employee of Advent SA, filed a claim against the Company's wholly owned subsidiary in Greece, Advent SA, before the Athens First Instance Court (LABOR CLAIMS). A hearing is on the claim is scheduled for October 20, 2025. In connection with the claim, Kaskavelis alleges that Advent should pay him the following amounts: (1) €107,194.90 for unpaid wages, (2) €612,206.40 for unpaid severance, (3) €50,000 for "moral damages" and (4) related court expenses stemming from the lawsuit. The Company denies the Kaskavelis claims as they are unsubstantiated and without merit as he was terminated by the Company for cause per the terms of his employment agreement. Notwithstanding the same, and as a contingency, the Company has accrued for the unpaid wages portion of his claim in the amount of €107,194.90 ($124,000). The Company believes that the remainder of the Kaskavelis claims are wholly without merit and intends to defend itself vigorously in these proceedings, although we cannot accurately predict the ultimate outcome of this matter.

***Litigation with F.E.R. fischer Edelstahlrohre GmbH***

On August 16, 2024, the Company was informed that an arbitration decision and award was decided in favor of F.E.R. fischer Edelstahlrohre GmbH ("F.E.R."), pursuant to the arbitration provisions of the Share Purchase Agreement dated June 25, 2021, whereby the Company acquired SerEnergy and FES on August 31, 2021. The arbitration was held in Frankfurt am Main, Germany in accordance with the Arbitration Rules of the German Arbitration Institute. The award in favor of F.E.R. is in the amount of approximately €4.5 million euro. The Company appealed the decision and instructed its counsel to file a motion with the Higher Regional Court of Frankfurt to set aside the arbitral award. On July 1, 2025, the Company entered into a settlement agreement and release (the "Settlement Agreement") with F.E.R.. Pursuant to the terms of the Settlement Agreement, the Company has agreed to pay F.E.R. €5,366,625.55 with such payment to be made in monthly installments of €35 thousand beginning on September 1, 2025. The Company will be entitled to a reduced settlement amount totaling €4,366,625.55 if payment is made by no later than June 30, 2026. In exchange for such reduced settlement amount, both Parties agreed to a mutual release of claims against the other Party. During the six months ended June 30, 2025, the Company recorded an additional loss of $1 million due to $0.5 million of interest expense, $0.3 million of legal fees and the remainder is due to foreign exchange differences. In connection with the Settlement Agreement, the Company reclassed $410 thousand and $5,922 thousand from loss contingency to other current liabilities and other long-term liabilities, respectively.

[**Table of Contents**](#toc)

***Shareholder Demand Letter***

By letter dated September 14, 2023, a purported shareholder of the Company made a demand to inspect the Company's books and records pursuant 8 Del. C. § 220 ("Demand"). The Demand purported to request access to books and records of the Company and its predecessor, AMCI Acquisition Corp. ("AMCI"), to investigate possible alleged breaches of fiduciary duty by AMCI's board of directors and officers in connection with its merger with the Company on February 4, 2021. As of May 24, 2024, the purported shareholder entered into a tolling agreement with the Company and the former directors of AMCI that tolled all claims for the period January 29, 2024 through June 30, 2024. On June 5, 2024, the purported shareholder filed a putative class action complaint ("Complaint") on behalf of in the Delaware Court of Chancery alleging claims of breach of fiduciary duty and unjust enrichment in connection with the SPAC transaction against former officers and directors of AMCI. The Company is not named as a defendant in the Complaint. The Company is not aware as to whether the Complaint has been served on the defendants.

**Guarantee letters**

The Company had contingent liabilities in relation to performance guarantee letters and other guarantees provided to third parties that arise from its normal business activity and from which no substantial charges are expected to arise. As of June 30, 2025 and December 31, 2024, the Company did not hold any letters of guarantee.

**Contractual obligations**

In December 2021, the Company entered into a supply agreement by and among the Company, in its capacity as Customer, and BASF New Business GmbH, in its capacity as Seller. The supply agreement provides for the purchase by the Company of 21,000m2 (Minimum Quantity) of membrane from BASF during the contract duration from January 1, 2022 until December 31, 2025. The Company has not purchased any additional quantities in 2024 under this agreement and on July 12, 2024, has formally requested to terminate the supply contract. On March 11, 2025, the parties agreed to terminate the agreement. The Company will return 473 sqm of membrane (stored at BASF) and 4,000 sqm of membrane from its facility in Patras, Greece to BASF by December 15, 2025. BASF will agree to waive payment of €608,412. The Company agrees to pay unpaid license fees in the amount of €44,759 by April 30, 2025. BASF will no longer require the Company to purchase 14,000 m2 quantity.

In June 2022, the Company entered into a supply agreement by and among the Company, in its capacity as Customer, and Shin-Etsu Polymer Singapore Pte, Ltd ("Shin-Etsu"), in its capacity as Seller. The supply agreement provides for the purchase by the Company of 318,400 pieces (Minimum Quantity) of bipolar plates from Shin-Etsu during the contract duration from June 1, 2022 until June 30, 2024. In May 2023, the Company amended the supply agreement with Shin-Etsu to reduce the Minimum Quantity of bipolar plates to 75,400 pieces. In January 2024, the Company amended the supply agreement with Shin-Etsu to shift the timing of the monthly minimum requirements and extend the agreement until September 2024. The Company has not made any purchases under the amended agreement in 2024, the contract is currently on hold pending negotiations with Shin Etsu. Under the contract, Shin-Etsu can claim Advent to buy the remaining purchase requirement of 57,600 pieces with the agreed purchases by the end of September 2024.

The Company has not accrued for these unrecognized commitment obligations as of December 31, 2024, and June 30, 2025.

[**Table of Contents**](#toc)

 **21. Net loss per share**

Net loss per share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding during the year.

The following table sets forth the computation of the basic and diluted net loss per share for the three and six months ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,**<br> (Unaudited) |
| <br>(Amounts in thousands, except share and per share amounts) | **2025** | **2024** | **2025** | **2024** |
| **Numerator:** |  |  |  |  |
| Net loss from continuing operations | (3797) | (10213) | (7071) | (19629) |
| Net loss from discontinued operations |  | (1060) |  | (1000) |
| **Net loss** | $**(3797)** | $**(11273)** | $**(7071)** | $**(20629)** |
| **Denominator:** |  |  |  |  |
| Basic weighted average number of shares | 2665089 | 2634179 | 2653490 | 2609549 |
| Diluted weighted average number of shares | 2665089 | 2634179 | 2653490 | 2609549 |
| **Net loss per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic loss per share from continuing operations | (1.42) | (3.88) | (2.66) | (7.52) |
| &nbsp;&nbsp;&nbsp;Basic loss per share from discontinued operations | N/A | (0.40) | N/A | (0.38) |
| &nbsp;&nbsp;&nbsp;**Basic loss per share** | (1.42) | (4.28) | (2.66) | (7.91) |
| &nbsp;&nbsp;&nbsp;Diluted loss per share from continuing operations | (1.42) | (3.88) | (2.66) | (7.52) |
| &nbsp;&nbsp;&nbsp;Diluted loss per share from discontinued operations | N/A | (0.40) | N/A | (0.38) |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share** | (1.42) | (4.28) | (2.66) | (7.91) |

---

Basic net loss per share is computed by dividing net loss for the periods presented by the weighted-average number of shares of Common Stock outstanding during these periods.

Diluted net loss per share is computed by dividing the net loss, by the weighted average number of shares of Common Stock outstanding for the periods, adjusted for the dilutive effect of shares of Common Stock equivalents resulting from the assumed exercise of the Public Warrants, Private Placements Warrants, Working Capital Warrants, Stock Options and RSUs. The treasury stock method was used to calculate the potential dilutive effect of these Common Stock equivalents.

As the Company incurred losses for the three months ended June 30, 2025 and 2024, the effect of including any potential shares of Common Stock in the denominator of diluted per-share computations would have been anti-dilutive; therefore, basic and diluted losses per share are the same.

[**Table of Contents**](#toc)

 **22. Discontinued Operations**

The following table summarizes the Company's loss from discontinued operations for the three and six months ended June 30, 2025 and June 30, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Three Months Ended<br> June 30,**<br> (Unaudited) | **Six Months Ended<br> June 30,<br>(Unaudited)** | **Six Months Ended<br> June 30,<br>(Unaudited)** |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenue, net | $- | $151 | $- | $864 |
| Cost of revenues | - | (72) | - | (614) |
| **Gross profit (loss)** | - | 79 | **-** | 250 |
| Income from grants |  | 253 |  | 852 |
| Research and development expenses |  | (2892) |  | (2892) |
| Administrative and selling expenses |  | (8747) |  | (9456) |
| Other income/(expenses), net | - | 10247 |  | 10246 |
| **Operating income/(loss)** | - | (1060) | **-** | (1000) |
| **Income/(loss) before income tax** | - | - | **-** | **-** |
| **Income/(loss) from discontinued operations** | - | (1060) | **-** | (1000) |
| **Other comprehensive income/(loss) from discontinued operations** | - | - | **-** | 35 |
| **Comprehensive income/(loss) from discontinued operations** | - | (1060) | **-** | (965) |

---

**23. Subsequent Events**

On July 17, 2025, the Company agreed with the bankruptcy trustee of Advent Technologies A/S to settle an outstanding claim of €10.4 million ($12.2 million) against Advent Technologies, GmbH for €100 thousand ($119 thousand) which was required to be paid by July 31, 2025. The outstanding claim of $12.2 million is included in trade and other payables as of June 30, 2025.

On August 6, 2025, the Company entered into a new enhanced license agreement with Triad National Security, LLC for the Ion Pair technology originally developed at Los Alamos National Laboratory. In the new enhanced license, the Company acquired exclusivity to the technology in the marine, aviation, and portable power fields while retaining its non-exclusive rights in all other fields.

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**AUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**YEARS ENDED DECEMBER 31, 2024 AND 2023**

[**Table of Contents**](#toc)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of<br> Advent Technologies Holdings, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Advent Technologies Holdings, Inc. (the Company) as of December 31, 2024, and the related consolidated statements of operations, comprehensive loss, stockholders' equity (deficit), and cash flows for the period ended December 31, 2024, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. The financial statements of Advent Technologies Holdings, Inc., as of December 31, 2023, were audited by other auditors whose report dated August 13, 2024, expressed an unqualified opinion on those financial statements.

**Going Concern**

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has yet to achieve profitable operations, has negative cash flows from operating activities, and is dependent upon future issuances of equity or other financings to fund ongoing operations all of which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

[**Table of Contents**](#toc)

*Revenue Recognition*

As discussed in the notes to the financial statements, the Company recognizes revenue upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

Auditing management's evaluation of agreements with customers involves significant judgement, given the fact that some agreements require management's evaluation and allocation of the standalone transaction prices to the performance obligation.

To evaluate the appropriateness and accuracy of the assessment by management, we evaluated management's assessment in relationship to the relevant agreements.

The procedures performed included evaluation of the methods and assumptions used by the Company, tests of the data used and an evaluation of the findings. We evaluated and tested the Company's significant judgments that determine the impairment evaluation of revenue recognition.

/s/ M&K CPAS, PLLC

We have served as the Company's auditor since 2024.

The Woodlands, TX

June 6, 2025

[**Table of Contents**](#toc)

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of

Advent Technologies Holdings, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Advent Technologies Holdings, Inc. (the Company) as of December 31, 2023, the related consolidated statements of operations, comprehensive loss, stockholders' equity and cash flows for the year ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, in conformity with U.S. generally accepted accounting principles.

**The Company's Ability to Continue as a Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring operating losses, has a negative working capital position and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 1. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. As explained below, auditing the Company's evaluation and associated disclosures of its ability to continue as a going concern was a critical audit matter.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
|  | ***Going Concern*** |
| *Description of the Matter* | As described in "The Company's Ability to Continue as a Going Concern" section of our report and as described further in Note 1 to the consolidated financial statements, the Company has suffered recurring operating losses, has a negative working capital position, and its ability to meet its liquidity needs will largely depend on raising capital in the very short term and to generate cash from operations in the future. If the Company is unable to obtain sufficient funding, it could be required to delay its operational efforts, limit activities and reduce research and development, which could adversely affect its business prospects and delivery of contractual obligations. Accordingly, the Company has determined that these factors raise substantial doubt as to the Company's ability to continue as a going concern for a period of one year from the date these consolidated financial statements are issued. The Company intends to continue to fund its business by way of operating cash flows, as well as equity raisings and loan financing. However, the Company has concluded that these plans do not alleviate the substantial doubt related to its ability to continue as a going concern.<br>Auditing the Company's evaluation and associated disclosures of its ability to continue as a going concern involved complex auditor judgment, because the projections and associated assumptions with regards to the timing and probability of future cash flows, including external funding, have a high degree of uncertainty. Evaluating the adequacy of the Company's disclosures to reflect the uncertainty and risks pertaining to the Company's going concern position, also required complex auditor judgment and increased effort. |
| *How We Addressed the Matter in Our Audit* | To test the Company's evaluation and associated disclosures of its ability to continue as a going concern, we performed audit procedures that included, amongst others, evaluating the timing and probability of the cash inflows and outflows in the Company's cashflow projections (revenues, grants, operating expenses and inflows from loan and equity financing) by, where possible, agreeing cash flow projections to underlying contracts or other third-party documentation. In order to reflect the uncertainty inherent in the projections, we performed our own sensitivity analyses on projected cashflows, which included adjustments to the timing and amounts forecasted by the Company, based on historical data for operating expenses, historical information regarding the timing of revenues and grants and to reflect the uncertainty of financing inflows. We also assessed the Company's cashflow projections in the context of other evidence obtained during the audit, to determine whether it supported or contradicted the assumptions made by the Company. To assess the adequacy of the disclosures related to the going concern assessment, among other procedures, we compared the Company's disclosures of the uncertainties pertaining to its cash flow projections, to the results of the sensitivity analyses we performed. |

---

/s/ Ernst & Young (Hellas) Certified Auditors Accountants S.A.

We served as the Company's auditor from 2020 to 2024.

Athens, Greece

August 13, 2024

except for the presentation of discontinued operations as described in Note 24, as to which the date is June 6, 2025

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**CONSOLIDATED BALANCE SHEETS**

(**Amounts in USD thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| **ASSETS** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $381 | $3200 |
| &nbsp;&nbsp;&nbsp;Restricted cash, current |  | 100 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 962 | 63 |
| &nbsp;&nbsp;&nbsp;Contract assets | 623 | 9 |
| &nbsp;&nbsp;&nbsp;Inventories | 8 | 195 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and Other current assets | 719 | 838 |
| &nbsp;&nbsp;&nbsp;Assets of discontinued operations | - | 4430 |
| **Total current assets** | **2693** | **8835** |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Intangibles, net | 85 | 79 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 4638 | 20833 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets | 274 | 3157 |
| &nbsp;&nbsp;&nbsp;Restricted cash, non-current |  | 750 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | 317 | 242 |
| &nbsp;&nbsp;&nbsp;Available for sale financial asset |  |  |
| &nbsp;&nbsp;&nbsp;Assets of discontinued operations | - | 841 |
| **Total non-current assets** | **5314** | **25902** |
| **Total assets** | $**8007** | $**34737** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade and other payables | $16730 | $3996 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 305 |  |
| &nbsp;&nbsp;&nbsp;Deferred income from grants, current | 396 | 523 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 3187 | 414 |
| &nbsp;&nbsp;&nbsp;Loss contingency liabilities | 5126 |  |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 2210 | 1035 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 89 | 2138 |
| &nbsp;&nbsp;&nbsp;Short-term loan payable, net of discount | 559 |  |
| &nbsp;&nbsp;&nbsp;Income tax payable | 170 | 179 |
| &nbsp;&nbsp;&nbsp;Liabilities of discontinued operations | - | 3628 |
| **Total current liabilities** | **28772** | **11913** |
| **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Warrant liability |  | 59 |
| &nbsp;&nbsp;&nbsp;Long-term operating lease liabilities | 184 | 8218 |
| &nbsp;&nbsp;&nbsp;Defined benefit obligation | 97 | 83 |
| &nbsp;&nbsp;&nbsp;Deferred income from grants, non-current | 248 | 320 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Liabilities of discontinued operations | - | 695 |
| **Total non-current liabilities** | **530** | **9376** |
| **Total liabilities** | **29302** | **21289** |
| **Commitments and contingent liabilities** |  |  |
| **Stockholders' equity/(deficit)** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value per share; Shares authorized: 500,000,000 and 110,000,000 at December 31, 2024 and December 31, 2023, respectively; Issued and outstanding: 2,636,508 and 2,580,159 at December 31, 2024 and December 31, 2023, respectively) |  | 8 |
| &nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value per share; Shares authorized: 1,000,000 at December 31, 2024 and December 31, 2023; nil issued and outstanding at December 31, 2024 and December 31, 2023) |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 199015 | 194933 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (157) | (2334) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (220153) | (179159) |
| **Total stockholders' equity/(deficit)** | **(21295)** | **13448** |
| **Total liabilities and stockholders' equity/(deficit)** | $**8007** | $**34737** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Amounts in USD thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| Revenue, net | $3276 | $1536 |
| Cost of revenues | (1488) | (6964) |
| **Gross profit (loss)** | **1788** | **(5428)** |
| &nbsp;&nbsp;&nbsp;Income from grants | 887 | 1582 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (3225) | (7567) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (14318) | (28825) |
| &nbsp;&nbsp;&nbsp;Sublease income | 145 | 543 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | (29) | (207) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (3617) | (1048) |
| &nbsp;&nbsp;&nbsp;Impairment losses | - | (9763) |
| **Operating loss** | **(18369)** | **(50713)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability | 59 | 394 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (535) | 104 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | (272) | 101 |
| &nbsp;&nbsp;&nbsp;Loss Contingency | (4724) |  |
| &nbsp;&nbsp;&nbsp;Net gains/ (losses) on disposal/write-offs of property, plant and equipment and intangible assets | (6235) |  |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | 7 | (870) |
| **Loss before income taxes** | **(30069)** | **(50984)** |
| &nbsp;&nbsp;&nbsp;Income taxes | 55 | 82 |
| **Net loss from continuing operations** | **(30014)** | **(50902)** |
| **Income (loss) from discontinued operations** | **(10980)** | **(20495)** |
| **Net loss** | $**(40994)** | $**(71397)** |
| **Net loss per share** |  |  |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from continuing operations** | $**(11.46)** | $**(26.55)** |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from discontinued operations** | **(4.19)** | **(10.69)** |
| &nbsp;&nbsp;&nbsp;**Basic loss per share** | **(15.65)** | **(37.24)** |
| &nbsp;&nbsp;&nbsp;**Basic weighted average number of shares** | **2618857** | **1917179** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from continuing operations** | $**(11.46)** | $**(26.55)** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from discontinued operations** | **(4.19)** | **(10.69)** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share** | **(15.65)** | **(37.24)** |
| &nbsp;&nbsp;&nbsp;**Diluted weighted average number of shares** | **2618857** | **1917179** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

**(All amounts in USD thousands)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Net loss** | $**(40994)** | $**(71397)** |
| **Other comprehensive income / (loss), net of tax effect:** |  |  |
| Foreign currency translation adjustments | 658 | (125) |
| Actuarial gains / (losses) | - | 15 |
| **Total other comprehensive income / (loss) from continuing operations** | **658** | **(110)** |
| **Other comprehensive loss from discontinued operations** | **(83)** | **380** |
| **Total other comprehensive loss** | **575** | **270** |
| **Comprehensive loss** | $**(40419)** | $**(71127)** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY / (DEFICIT)**

(**Amounts in USD thousands, except share amounts)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock<br> Series A<br> Shares** | **Amount** | **Preferred Stock<br> Series Seed<br> Shares** | **Amount** | **Common<br> Stock<br> Shares** | **Amount** | **Additional<br> Paid-in<br> Capital** | **Accumulated<br>Deficit** | **Accumulated<br>OCI** | **Total<br> Stockholders'<br>(Deficit)<br> Equity** |
| **Balance as of December 31, 2022** |  | $**-** |  | $**-** | **1723924** | $**5** | $**174509** | $**(107762)** | $**(2604)** | $**64148** |
| Issuance of common stock |  | **-** |  | **-** | 824352 | 2 | 9998 | **-** | **-** | 10000 |
| Stock issued under stock compensation plan |  | **-** |  | **-** | 31883 | 1 |  | **-** | **-** | 1 |
| Stock based compensation expense |  | **-** |  | **-** | **-** | **-** | 9881 | **-** | **-** | 9881 |
| Reclassification of private warrants |  | **-** |  | **-** | **-** | **-** | 545 |  | **-** | 545 |
| Net loss |  | **-** |  | **-** | **-** | **-** | **-** | (71397) | **-** | (71397) |
| Other comprehensive income |  | **-** |  | **-** | **-** | **-** | **-** | **-** | 270 | 270 |
| **Balance as of December 31, 2023** |  | $**-** |  | $**-** | **2580159** | $**8** | $**194933** | $**(179159)** | $**(2334)** | $**13448** |
| Reclassification of par to APIC |  | **-** |  | **-** |  | (8) | 8 | **-** | **-** |  |
| Issuance of common stock |  | **-** |  | **-** | 56727 |  | 291 | **-** | **-** | 291 |
| Reduction of fractional shares due to reverse stock split |  |  |  |  | (378) |  | **-** | **-** | **-** |  |
| Stock based compensation expense |  | **-** |  | **-** | **-** | **-** | 3783 | **-** | **-** | 3783 |
| Disposal of subsidiaries |  | **-** |  | **-** | **-** | **-** |  | **-** | 1602 | 1602 |
| Net loss |  | **-** |  | **-** | **-** | **-** | **-** | (40994) | **-** | (40994) |
| Other comprehensive income |  | **-** |  | **-** | **-** | **-** | **-** | **-** | 575 | 575 |
| **Balance as of December 31, 2024** |  | $**-** |  | $**-** | **2636508** | $**-** | $**199015** | $**(220153)** | $**(157)** | $**(21295)** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(All amounts in USD thousands)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Cash flows from operating activities:** |  |  |
| **Net loss** | $**(40994)** | $**(71397)** |
| Net loss from discontinued operations | (10980) | (20495) |
| **Net loss from continuing operations** | **(30014)** | **(50902)** |
| **Adjustments to reconcile net loss to net cash flows (used in)/provided by operating activities:** |  |  |
| Depreciation of property and equipment | 1564 | 2325 |
| Amortization of intangible assets | 29 | 207 |
| Impairment loss of tangible and intangible assets and goodwill |  | 9763 |
| Credit loss allowance | 3617 | 1048 |
| Provision for litigation expenses | 4724 |  |
| Fair value gain of warrant liability | (59) | (394) |
| Stock-based compensation expense | 3783 | 9881 |
| Issuance of commitment shares |  | 966 |
| Benefit for current and deferred income taxes | (55) | (82) |
| Net losses on disposal/write-offs of property, plant and equipment and intangible assets | 6235 | 5 |
| Provision for inventories | (32) | 4962 |
| Net periodic cost of defined benefit obligation | 6 | 23 |
| **Changes in operating assets and liabilities:** |  |  |
| Decrease/(increase) in accounts receivable | 679 | 576 |
| Decrease/(increase) in contract assets | (613) | 1 |
| Decrease/(increase) in inventories | 217 | 838 |
| Decrease/(increase) in prepaid expenses and other current assets | 150 | 994 |
| Decrease/(increase) in other non-current assets | (2479) | 5676 |
| (Decrease)/increase in trade payables | 9528 | (5522) |
| (Decrease)/increase in due to related parties | 305 |  |
| (Decrease)/increase in deferred income from grants | (162) |  |
| Increase in loss contingency liability | 402 |  |
| (Decrease)/increase in contract liabilities | 2787 | 236 |
| (Decrease)/increase in other current liabilities | 1236 | (724) |
| (Decrease) in income tax payable |  | (9) |
| (Decrease) in other long-term liabilities |  | (16) |
| Operating lease asset and liabilities | (450) | (828) |
| **Net cash provided by/(used in) operating activities from continuing operations** | $**1398** | $**(20976)** |
| **Cash flows from investing activities:** |  |  |
| Proceeds from sale of property and equipment | 1294 | 253 |
| Purchases of property and equipment | (36) | (2443) |
| Purchases of intangible assets | (47) |  |
| Advances for the acquisition of property and equipment |  | (1255) |
| Acquisition of subsidiaries | - | (1864) |
| **Net cash provided by/(used in) investing activities from continuing operations** | $**1211** | $**(5309)** |
| **Cash flows from financing activities:** |  |  |
| Issuance of common stock and paid-in capital, net of issuance costs paid | 291 | 9059 |
| Proceeds from borrowings | 660 |  |
| Repayments of debt | (101) | - |
| **Net cash provided by financing activities from continuing operations** | $**850** | $**9059** |
| **Net increase/(decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents from continuing operations** | $**3459** | $**(17226)** |
| Effect of exchange rate changes on cash, cash equivalent, restricted cash and restricted cash equivalents | 378 | 83 |
| **Net cash provided by / (used in) discontinued operations:** |  |  |
| Cash used in operating activities | (8011) | (11138) |
| Cash used in investing activities | (38) | (926) |
| Cash provided by financing activities | 543 | - |
| **Net cash used in discontinued operations** | **(7506)** | **(12064)** |
| **Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents** | **(3669)** | **(29207)** |
| Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of year | 4050 | 33619 |
| **Cash, cash equivalents, restricted cash and restricted cash equivalents, end of year** | $**381** | $**4412** |
| **Reconciliation to Consolidated Balance Sheets:** |  |  |
| Cash and cash equivalents | $381 | $3200 |
| Restricted cash, current |  | 100 |
| Restricted cash, non-current | - | 750 |
| **Cash, cash equivalents, restricted cash and restricted cash equivalents** | $**381** | $**4050** |
| Cash, cash equivalents, restricted cash and restricted cash from continuing operations | $381 | $4050 |
| Cash, cash equivalents, restricted cash and restricted cash from discontinued operations | - | 362 |
| **Cash, cash equivalents, restricted cash and restricted cash equivalents** | $**381** | $**4412** |
| **Supplemental Cash Flow Information** |  |  |
| **Cash activities** |  |  |
| Interest paid | $115 | $41 |
| Income taxes paid/(refunded) | $(55) | $(82) |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

[**Table of Contents**](#toc)

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF DECEMBER 31, 2024**

**(Expressed in U.S. Dollars)**

**1. Basis of presentation:**

***Overview***

Advent Technologies Holdings, Inc. and its subsidiaries (collectively referred to as "Advent" or the "Company") is an advanced materials and technology development company operating in the fuel cell and hydrogen technology space. Advent develops, manufactures and assembles the critical components that determine the performance of hydrogen fuel cells and other energy systems. To date, Advent's principal operations have been to develop and manufacture Membrane Electrode Assembly (MEA), and fuel cell stacks and complete fuel cell systems for a range of customers in the stationary power, portable power, automotive, aviation, energy storage and sensor markets.

Advent has its headquarters in Livermore, California, and the Company has MEA and fuel cell product development facilities in Livermore, California and Patras, Greece. Previously, the Company's headquarters were located in Boston, Massachusetts. During 2023, the Company decided to consolidate certain of its German operations with its operations in Greece. During June 2024, the Company closed its facilities in Boston, Massachusetts, and no longer maintains its facilities in Denmark and the Philippines due to the bankruptcy of Advent Technologies A/S in July 2024.

On February 4, 2021 ("Closing Date"), AMCI Acquisition Corp. ("AMCI"), consummated the previously announced business combination (the "Business Combination") pursuant to that certain merger agreement (the "Agreement and Plan of Merger"), dated October 12, 2020, by and among AMCI, AMCI Merger Sub Corp., a Delaware corporation and newly formed wholly-owned subsidiary of AMCI ("Merger Sub"), AMCI Sponsor LLC (the "Sponsor"), solely in the capacity as the representative from and after the effective time of the Business Combination for the stockholders of AMCI, Advent Technologies, Inc., a Delaware corporation ("Legacy Advent"), and Vassilios Gregoriou, solely in his capacity as the representative from and after the effective time for the Legacy Advent stockholders (the "Seller Representative"), as amended by Amendment No. 1 and Amendment No. 2 to the Agreement and Plan of Merger, dated as of October 19, 2020 and December 31, 2020, respectively, by and among AMCI, Merger Sub, Sponsor, Legacy Advent, and Seller Representative. In connection with the closing of the Business Combination (the "Closing"), AMCI acquired 100% of the stock of Legacy Advent (as it existed immediately prior to the Closing) and its subsidiaries.

On the Closing Date, and in connection with the closing of the Business Combination, AMCI changed its name to Advent Technologies Holdings, Inc. (the "Company" or "Advent"). Legacy Advent was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification ("ASC") 805. This determination was primarily based on Legacy Advent's stockholders prior to the Business Combination having a majority of the voting interests in the combined company, Legacy Advent's operations comprising the ongoing operations of the combined company, Legacy Advent's board of directors comprising a majority of the board of directors of the combined company, and Legacy Advent's senior management comprising the senior management of the combined company. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Advent issuing stock for the net assets of AMCI, accompanied by a recapitalization. The net assets of AMCI are stated at historical cost, with no goodwill or other intangible assets recorded.

While AMCI was the legal acquirer in the Business Combination, because Legacy Advent was deemed the accounting acquirer, the historical financial statements of Legacy Advent became the historical financial statements of the combined company, upon the consummation of the Business Combination. As a result, the consolidated financial statements included in this report reflect (i) the historical operating results of Legacy Advent prior to the Business Combination; (ii) the results of the Company (combined results of AMCI and Legacy Advent) following the closing of the Business Combination; (iii) the assets and liabilities of Legacy Advent at their historical cost; and (iv) Company's equity structure for all periods presented.

[**Table of Contents**](#toc)

In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date, to reflect the number of shares of the Company's common stock, $0.0001 par value per share, issued to Legacy Advent's stockholders in connection with the recapitalization transaction. As such, the shares and corresponding capital amounts and earnings per share related to Legacy Advent Preferred Stock ("Preferred Series A" and "Preferred Series Seed") and Legacy Advent common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination Agreement. Activity within the statement of changes in stockholders' equity / (deficit) for the issuances of Legacy Advent's Preferred Stock, were also retroactively converted to Legacy Advent common stock.

On February 18, 2021, Advent Technologies, Inc. entered into a Membership Interest Purchase Agreement with Bren-Tronics, Inc. ("Bren-Tronics") and UltraCell, LLC ("UltraCell"), a Delaware limited liability company and a direct wholly owned subsidiary of Bren-Tronics (the "UltraCell Purchase Agreement").

UltraCell LLC was renamed to Advent Technologies LLC following its acquisition by the Company.

On June 25, 2021, the Company entered into a Share Purchase Agreement (the "Purchase Agreement"), with F.E.R. fischer Edelstahlrohre GmbH, a limited liability company incorporated under the Laws of Germany (the "Seller") to acquire all of the issued and outstanding equity interests in SerEnergy A/S, a Danish stock corporation and a wholly-owned subsidiary of the Seller ("SerEnergy") and fischer eco solutions GmbH, a German limited liability company and a wholly-owned subsidiary of the Seller ("FES") together with certain outstanding shareholder loan receivables.

SerEnergy and FES were renamed to Advent Technologies A/S and Advent Technologies GmbH, respectively, following their acquisition by the Company.

The consolidated financial statements of the Company have been prepared to reflect the consolidation of the companies listed below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Ownership Interest** | **Ownership Interest** | **Statements of Operations** | **Statements of Operations** |
| <br>**Company Name** | **Country of**<br>**Incorporation** | **Direct** | **Indirect** | **2024** | **2023** |
| Advent Technologies, Inc. | USA | 100% |  | 01/01 – 12/31 | 01/01 – 12/31 |
| Advent Technologies S.A. | Greece |  | 100% | 01/01 – 12/31 | 01/01 – 12/31 |
| Advent Technologies LLC | USA |  | 100% | 01/01 – 12/31 | 01/01 – 12/31 |
| Advent Technologies GmbH | Germany | 100% |  | 01/01 – 12/31 | 01/01 – 12/31 |

---

On July 25, 2024, Advent Technologies A/S was declared bankrupt by the court in Aalborg, Denmark. The petition was brought by IDA, the union of engineers for €402,000. As the Company did not have the ability to pay the full amount due, the Danish court declared Advent Technologies A/S bankrupt. Advent Technologies A/S and its wholly owned subsidiary Advent Green Energy Philippines, Inc. will be liquidated by the court appointed trustee to settle all claims under the bankruptcy. The Company anticipates it will receive no residual assets. As a result of their bankruptcy, Advent Technologies A/S and Advent Green Energy Philippines, Inc. (collectively referred to as the "Discontinued Subsidiaries") have been presented as discontinued operations in the accompanying financial statements.

***Going Concern***

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company considers that the going concern basis is appropriate for the preparation of its consolidated financial statements, as it is pursuing additional fund raising as disclosed below and has no intentions to proceed with liquidation. The going concern basis of presentation assumes that the Company will continue in operation one year from the date these consolidated financial statements are issued and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. As such, the accompanying audited consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

[**Table of Contents**](#toc)

In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year from the date that the consolidated financial statements are issued. The Company's ability to meet its liquidity needs will largely depend on its ability to raise capital in the very short term and generate cash in the future. During the year ended December 31, 2024, the Company generated $1.4 million of cash in operating activities, and the Company's ability to raise and generate adequate capital and cash in the future is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond the Company's control. Furthermore, the Company has suffered recurring operating losses and has a net working capital position of $(26.1) million as of December 31, 2024. In addition, as of the issuance date of these consolidated financial statements the Company is overdue in a number of its obligations which could give the right to creditors at any time from the issuance date of these consolidated financial statements to raise legal action against the Company which in turn could potentially lead to liquidation action against the Company and/or its subsidiaries. The transition to profitability and positive cash flow is highly dependent upon the successful development, approval, and commercialization of the Company's products and the achievement of a revenue level adequate to support its cost structure and the Company can give no assurances that this will occur. Based on the Company's current operating plan, the Company believes that its cash and cash equivalents as of December 31, 2024, of $0.4 million is not sufficient to fund operations and capital expenditures for the twelve months following the filing of this Annual Report on Form 10-K, and the Company will need to obtain additional funding in the very near term, otherwise the Company may immediately substantially curtail or terminate its operations.

The Company performed a cash flow projection on a monthly basis for the twelve-month period following the issuance of the consolidated financial statements. The projected inflows from revenues and grants will be insufficient to cover the projected outflows, as such, the Company will continue to have a negative net working capital position and a delay in the projected timing of the short term financing and inflows and/or an immediate demand by creditors of repayment of the long outstanding payables may result in the Company being insolvent and short of cash at any specific time over the coming weeks and over the next twelve months.

Until such time as the Company generates sufficient revenue to fund its operations (if ever), the Company plans to finance its operations and repay its existing and future liabilities and other obligations through the sale of equity and/or debt securities and, to the extent available, short-term and long-term loans.

With regards to the projected revenues and grants, a delay in the projected timing of inflows may result in the Company remaining insolvent and short of cash at any specific time over the next twelve months. Also, there is no guarantee that the Company's plans to reduce monthly expenditures will be successful.

If the Company is unable to obtain sufficient funding, it could be required to delay its development efforts, limit activities, and further reduce research and development costs, which could adversely affect its business prospects and delivery of contractual obligations. A cash shortfall at any point in time over the next twelve months could result in the Company failing to meet its overdue and current obligations which could trigger action against the Company and/or its subsidiaries for liquidation by employees, authorities, or creditors. Because of the uncertainty in securing additional funding, delays in growth of revenue, failure to materialize cost-cutting efforts and the insufficient amount of cash and cash equivalents as of the consolidated financial statement filing date, management has concluded that substantial doubt exists with respect to the Company's ability to continue as a going concern for one year from the date the consolidated financial statements are issued.

**2. Summary of Significant Accounting Policies:**

***Basis of Presentation***

The accompanying consolidated financial statements are presented in United States ("U.S.") dollars and have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the SEC.

***Principles of Consolidation***

The accompanying consolidated financial statements represent the consolidation of the accounts of the Company and its wholly owned subsidiaries.

[**Table of Contents**](#toc)

***Subsidiaries:*** Subsidiaries are those entities in which the Company has an interest of more than one-half of the voting rights or otherwise has power to govern the financial and operating policies of the entity. The acquisition method of accounting is used to account for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given up, shares issued, or liabilities undertaken at the date of acquisition. The excess of the cost of acquisition over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill. In case the fair value of purchase consideration transferred is below fair values of these identifiable assets and liabilities, the Company recognizes a gain from a bargain purchase. The Company recognizes the fair value of estimated contingent consideration at the acquisition date as part of the consideration transferred in exchange for the acquired business. The contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Any changes in fair value are recognized each reporting period in non-cash changes in fair value of estimated contingent consideration in the accompanying consolidated statements of operations.

The subsidiaries are fully consolidated from the date on which control is obtained by the Company. All subsidiaries included in the accompanying consolidated financial statements are 100% owned by the Company. Inter-company transaction balances and unrealized gains/(losses) on transactions between the companies are eliminated.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, the carrying value of goodwill, provisions necessary for accounts receivables and inventory write downs, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions.

***Foreign Currency Translation***

The Company's reporting currency is U.S. dollar. The financial statements of the Company's subsidiaries outside the U.S. have been translated into U.S. dollars. Assets and liabilities of foreign operations are translated from foreign currencies into U.S. dollars at the exchange rates in effect as of the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates for the period. Equity accounts are translated at historical rates. Gains or losses resulting from translating foreign currency financial statements into U.S. dollar are reported as cumulative translation adjustments, a separate component of other comprehensive income (loss) in stockholders' equity.

Transactions denominated in foreign currencies other than the functional currency of the Company and the functional currencies of the Company's subsidiaries are translated using the exchange rates in effect at the time of the transactions. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated at exchange rates in effect as of the balance sheet date. Resulting foreign exchange differences are included in the consolidated statements of operations.

***Comprehensive Income (Loss)***

Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustments that result from consolidation of Company's subsidiaries and actuarial losses related to the defined benefit obligation recognized in the Company's Greek subsidiary.

[**Table of Contents**](#toc)

***Segment Information***

Under ASC 280, Segment Reporting, operating segments are defined as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM"), in deciding how to allocate resources and in assessing performance. The Company's Chief Executive Officer (currently also serving as Interim Chief Financial Officer), Chief Technology Officer, Chief Operating Officer and General Counsel, jointly and collectively serve as CODM, making decisions and managing the Company's operations as a single operating segment for purposes of allocating resources and evaluating financial performance. For the above reasons, the Company has determined that it operates in one reportable operating segment. The disaggregation of Company's revenue by geographic location and segment expenses are presented in Note 21.

***Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents***

Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Cash and cash equivalents consist of cash on hand, deposits held on call with banks and investments in money market funds with original maturities of three months or less at the date of acquisition. Restricted cash, current was cash the Company received on behalf of other grant partners and is offset by a corresponding liability in trade and other current payables. The restricted cash, non-current was a letter of credit required by the Company's lease agreement for the Hood Park facility in Boston, Massachusetts. The letter of credit was required for the duration of the lease agreement which had a term of eight years. The lease commenced in October 2022 and was terminated in June 2024.

The Company reconciles cash, cash equivalents, restricted cash and restricted cash equivalents reported in the consolidated balance sheets that aggregate to the beginning and ending balances shown in the consolidated statements of cash flows as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| Cash and cash equivalents | $381 | $3200 |
| Restricted cash, current |  | 100 |
| Restricted cash, non-current | - | 750 |
| **Cash, cash equivalents, restricted cash and restricted cash equivalents** | $**381** | $**4050** |

---

***Inventories***

Inventories, which consist of raw materials, work-in-process and finished goods are stated at the lower of cost or net realizable value using the first-in, first-out cost method. Cost includes the cost of purchased materials, inbound freight charges, external and internal processing and applicable labor and overhead costs. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.

The Company periodically reviews quantities of inventories on hand and compares these amounts to the expected use of each product. Inventories are reviewed to determine if valuation allowances are required for obsolescence (excess, obsolete, and slow-moving inventory). This review includes analyzing inventory levels of individual parts considering the current design of our products and production requirements as well as the expected inventory requirements for maintenance on installed power platforms. The Company records a charge to cost of revenue for the amount required to reduce the carrying value of inventory to the net realizable value.

[**Table of Contents**](#toc)

***Leases***

The Company is a lessee in noncancelable operating leases. The Company determines if an arrangement is or contains a lease at contract inception. This determination depends on whether the arrangement conveys the right to control the use of an explicitly or implicitly identified asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed if the Company obtains the right to direct the use of and obtains substantially all of the economic benefits from using the underlying asset. The Company classifies leases with contractual terms greater than 12 months as either operating or finance. The Company recognizes a right of use asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at the lease commencement date. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method.

Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term and (3) the lease payments.

● ASC Topic 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms.

● The lease term for all of the Company's leases includes the noncancelable period of the lease, plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.

● Lease payments included in the measurement of the lease liability comprise fixed payments, and for certain finance leases, the exercise price of a Company option to purchase the underlying asset if the Company is reasonably certain at lease commencement to exercise the option.

● Lease incentives, such as leasehold improvement and rent holidays, that are paid or payable to the lessee at lease commencement are deducted from the lease payments, which affects the lease classification test and reduces the initial measurement of the lessee's right-of-use asset. Lease incentives that are payable to the lessee at lease commencement also reduce a lessee's lease liability.

The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the right of use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term which included within administrative and selling expenses on the consolidated statements of operations.

For finance leases, the right of use asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of the useful life of the underlying asset or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the right of use asset is amortized over the useful life of the underlying asset. Amortization of the right of use asset is recognized and presented separately from interest expense on the lease liability.

Right of use assets for operating and finance leases are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, *Property, Plant, and Equipment – Overall*, to determine whether a right of use asset is impaired, and if so, the amount of the impairment loss to recognize.

The Company monitors for events or changes in circumstances that require a reassessment of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding right of use asset.

[**Table of Contents**](#toc)

Operating and finance lease right of use assets are presented separately on the Company's consolidated balance sheets. The current portions of operating and finance lease liabilities are also presented separately within current liabilities and the long-term portions are presented separately within noncurrent liabilities on the consolidated balance sheets.

The Company has elected not to recognize right of use assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company recognizes the lease payments associated with its short-term leases as an expense on a straight-line basis over the lease term.

Variable payments related to a lease are expensed as incurred. These costs often relate to payments for real estate taxes, insurance, common area maintenance, and other operating costs in addition to base rent.

***Accounts Receivable and Credit Losses***

Accounts receivable are recorded at the invoiced amounts, net of an allowance for doubtful accounts based on the Company's best estimate of probable credit losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which amends the requirement on the measurement and recognition of expected credit losses for financial assets held. Furthermore, amendments ASU 2019-10 and ASU 2019-11 provided additional clarification for implementing ASU 2016-13. ASU 2016-13 is effective for the Company beginning January 1, 2023, with early adoption permitted. The Company adopted the standard on January 1, 2023, in accordance with the adoption dates for private entities applicable to it under its emerging growth company status at that time and the standard did not have a material impact on the Company's consolidated financial statements and related disclosures. The Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer's ability to pay by conducting a credit review which includes consideration of established credit rating or an internal assessment of the customer's creditworthiness based on an analysis of their payment history when a credit rating is not available. The Company monitors the credit exposure through active review of customer balances. The Company's expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current customer financial condition, current and future economic and market condition, and age of the receivables. Charges related to credit losses are included in administrative and selling expenses and are recorded in the period that the outstanding receivables are determined to be doubtful. Account balances are written-off against the allowance when they are deemed uncollectible.

***Property, Plant and Equipment***

Property, plant and equipment are stated at cost, adjusted for any impairment, less accumulated depreciation which is recorded based on the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives range from 5 to 50 years for buildings and leasehold improvements and 3 to 20 years for machinery and other equipment. Leasehold improvements are depreciated on the straight-line method over the shorter of the estimated useful lives of the assets or the term of the lease. Land is not depreciated.

Subsequent expenditures are capitalized, provided they increase the functionality, output or expected life of an asset and depreciated ratably over the identified useful life. Repairs and maintenance costs are expensed as incurred.

Fixed assets under construction are shown at their cost. Fixed assets under construction are not depreciated until the fixed asset is completed and entered in operation.

When property is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in the consolidated statements of operations for the period.

[**Table of Contents**](#toc)

***Business Acquisitions, Goodwill and Intangible Assets***

The Company accounts for business acquisitions under ASC Topic 805, *Business Combinations.* The total purchase consideration for an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities assumed at the acquisition date. The Company allocates the fair value of purchase consideration transferred in a business acquisition to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration transferred over the fair values of these identifiable assets and liabilities is recorded as goodwill. In case the fair value of purchase consideration transferred is below fair values of these identifiable assets and liabilities, the Company recognizes a gain from a bargain purchase. The Company recognizes the fair value of estimated contingent consideration at the acquisition date as part of the consideration transferred in exchange for the acquired business. The contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved. Any changes in fair value are recognized each reporting period in non-cash changes in fair value of estimated contingent consideration in the accompanying consolidated statements of operations.

Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired licenses, trade names, in process research and development ("R&D"), useful lives and discount rates, patents, customer clientele, customer contracts and know-how. Management's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statement of operations.

For significant acquisitions, the Company obtains independent appraisals and valuations of the intangible (and certain tangible) assets acquired and certain assumed liabilities. The Company analyzes each acquisition individually and all acquisitions within each reporting period in aggregate to determine if those are material acquisitions in the context of ASC 805-10-50.

The estimated fair values and useful lives of identified intangible assets are based on many factors, including estimates and assumptions of future operating performance and cash flows of the acquired business, estimates of cost avoidance, the nature of the business acquired, the specific characteristics of the identified intangible assets and our historical experience and that of the acquired business. The estimates and assumptions used to determine the fair values and useful lives of identified intangible assets could change due to numerous factors, including product demand, market conditions, regulations affecting the business model of our operations, technological developments, economic conditions and competition.

The Company's most significant intangible assets are patents and developed technologies, trade names, in process know-how and order backlogs. The fair values of intangible assets are based on valuations using an income approach, with estimates and assumptions provided by management of the acquired companies and the Company. The process for estimating the fair values of identifiable intangible assets requires the use of significant estimates and assumptions, including revenue growth rates, royalty rates, discount rates and projected cash flows. All definite-lived intangible assets are amortized on a straight-line basis over the periods in which their economic benefits are expected to be realized, which range from 1 to 10 years. The Company reviews the useful life assumptions, including the classification of certain intangible assets as "indefinite-lived," on a periodic basis to determine if changes in circumstances warrant revisions to them.

The Company conducts a goodwill impairment analysis annually in the fourth fiscal quarter, or more frequently if changes in facts and circumstances indicate that the fair value of our reporting units may be less than their carrying amounts. In testing goodwill for impairment, the Company first assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. When the Company determines a fair value test is necessary, it estimates the fair value of a reporting unit and compares the result with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment is recorded equal to the amount by which the carrying value exceeds the fair value, up to the amount of goodwill associated with the reporting unit. Currently, we identify three reporting units. During the year ended December 31, 2023, all remaining goodwill was impaired.

[**Table of Contents**](#toc)

***Impairment of Long-Lived Assets Including Acquired Intangible Assets***

The Company reviews the property, plant and equipment, long-term prepayments and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company measures recoverability by comparing the carrying amount to the future undiscounted cash flows that the asset is expected to generate. If the asset is not recoverable, its carrying amount is adjusted down to its fair value.

***Revenue Recognition***

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU No. 2014-09 on January 1, 2019, using the modified retrospective approach to all contracts not completed at the date of initial application.

In accordance with ASC 606, revenue is recognized when control of the promised goods or services are transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its arrangements:

● identify the contract with a customer,

● identify the performance obligations in the contract,

● determine the transaction price,

● allocate the transaction price to performance obligations in the contract, and

● recognize revenue as the performance obligation is satisfied.

With significant and recurring customers, the Company negotiates written master agreements as framework agreements (general terms and conditions of trading), following individual purchase orders. For customers with no master agreements, the approved purchase orders form the contract. Effectively, contracts under the revenue standard have been assessed to be the purchase orders agreed with customers.

The Company has assessed that each product sold is a single performance obligation because the promised goods are distinct on their own and within the context of the contract. In cases where the agreement includes customization services for the contracted products, the Company is providing integrated services; therefore, the goods are not separately identifiable, but are inputs to produce and deliver a combined output and form a single performance obligation within the context of the contract. Furthermore, the Company assessed whether it acts as a principal or agent in each of its revenue arrangements and has concluded that in all sales transactions it acts as a principal. Additionally, the Company, taking into consideration the guidance and indicative factors provided by ASC 606, concluded that it provides assurance type warranties (warranty period is up to two years) as it does not provide a service to the customer beyond fixing defects that existed at the time of sale. The Company, based on historical performance, current circumstances, and projections of trends, estimated that no allowance for returns as per warranty policy should be recognized, at the time of sale, accounted for under ASC 460, Guarantees.

Under ASC 606, the Company estimates the transaction price, including variable consideration, at the commencement of the contract and recognize revenue over the contract term, rather than when fees become fixed or determinable. In other words, where contracts with customers include variable consideration (i.e. volume rebates), the Company estimates at contract inception the variable consideration and adjusts the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Furthermore, no material rights or significant financing components have been identified in the Company's contracts. Payment terms generally include advance payment requirements. The time between a customer's payment and completion of the performance obligation is less than one year. Payment terms are in the majority fixed and do not include variable consideration, except from volume rebates.

[**Table of Contents**](#toc)

Revenue from satisfaction of performance obligations is recognized based on identified transaction price. The transaction price reflects the amount to which the Company has rights under the present contract. It is allocated to the distinct performance obligations based on standalone selling prices of the services promised in the contract. In cases of more than one performance obligation, the Company allocates transaction price to the distinct performance obligations in proportion to their observable stand-alone selling prices and recognize revenue as those performance obligations are satisfied.

In the majority of cases of product sales, revenue is recognized at a point in time when the customer obtains control of the respective goods that is, when the products are shipped from the Company's facilities as control passes to the customer in accordance with agreed contracts and the stated shipping terms. In cases where the contract includes customization services, which one performance obligation is identified, revenue is recognized over time as the Company's performance does not create an asset with alternative use and the Company has an enforceable right to payment for performance completed to date. The Company uses the input method (i.e., cost-to-cost method) to measure progress towards complete satisfaction of the performance obligation.

***Contract Assets and Contract Liabilities***

Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing. As of December 31, 2024, and 2023, Advent recognized contract assets of $623 thousand and $9 thousand, respectively on the consolidated balance sheets.

Advent recognizes contract liabilities when the Company receives customer payments or has the unconditional right to receive consideration in advance of the performance obligations being satisfied on the Company's contracts. The Company receives payments from customers based on the terms established in the contracts. Contract liabilities are classified as either current or long-term liabilities in the consolidated balance sheets based on the timing of when the Company expects to recognize the related revenue. As of December 31, 2024, and 2023, The Company recognized contract liabilities of $3.2 million and $0.4 million, respectively, in the consolidated balance sheets. During the years ended December 31, 2024 and 2023, the Company recognized $0.1 million and $0.1 million in revenues.

***Cost of revenues***

Cost of revenues consists of consumables, raw materials, inventory provision, processing costs and direct labor costs associated with the assembly and manufacture of MEAs, membranes, fuel cell stacks and systems and electrodes. Advent recognizes cost of revenues in the period that revenues are recognized.

***Research and Development Expenses***

Research and development expenses consist of costs associated with Advent's research and development activities, such as laboratory costs, labor costs and sample material costs.

***Administrative and Selling Expenses***

Administrative and selling expenses consist of travel expenses, indirect labor costs, fees paid to consultants, third parties and service providers, taxes and duties, legal and audit fees, depreciation, business development salaries and limited marketing activities, and incentive and stock-based compensation expense.

***Income from grants and related deferred income***

Grants include cash subsidies received from various institutions and organizations. Grants are recognized as income from grants. Such amounts are recognized in the consolidated statements of operations when all conditions attached to the grants are fulfilled.

Condition to the grants would not be fulfilled unless related costs have been characterized as eligible by the grantors, are actually incurred and there is certainty that costs are allowable. These grants are recognized as deferred income when received and recorded in income when the eligible and allowable related costs and expenses are incurred. Under all grant programs, a coordinator is specified. The coordinator, among other, receives the funding from the grantor and proceeds to its distribution to the parties agreed in the process specified in the program. The Company assessed whether it acts as a principal or agent in its role as a coordinator for specific grants and has concluded that in all related transactions it acts as an agent.

[**Table of Contents**](#toc)

During the years ended December 31, 2024 and 2023, the Company recognized income for grants of $0.9 million and $1.6 million, respectively, in connection with amounts received for fuel cell research and development. As of December 31, 2024 and 2023, the Company had receivables from grant income of $0.0 million and $0.2 million, respectively, which is included within prepaid expenses and other current assets in the consolidated balance sheets. As of December 31, 2024 and 2023, deferred income from grants in the consolidated balance sheets is $0.6 million and $0.8 million, respectively, and is split between current and non-current portion based on the estimated time of realization of eligible costs and expenses.

*Advent Technologies S.A. and Helical Systems for Chiral Organic Light Emitting Diodes ("HEL4CHIROLED Project")*

In January 2020 Advent Technologies S.A became a partner in the European Union ("EU") funded HEL4CHIROLED Project. The aim of the project is to improving organic light-emitting diodes (OLEDs) in Europe by training early-career researchers. The project aims to develop new thinking in OLED technologies, developing new material sets and approaches that take advantage of emerging technologies to improve the performance of displays based on OLEDs. Per the terms of the project, Advent Technologies S.A. was reimbursed for $0.2 million of research and development costs. The project ended in June 2024.

During the year ended December 31, 2023, the Company recognized $0.1 million in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024 and 2023, the Company had receivables related to project of $0.1 million and $0.1 million, included within prepaid expenses and other current assets in the consolidated balance sheets.

*Advent Technologies GmbH and The Industrialization of Power Generation with High-Temperature Proton Exchange Membrane ("HT-PEM" or "HT-PEMs") Fuel Cell and Integrated Methanol Reformer Project ("ISEHM Project")*

In September 2020, Advent Technologies GmbH entered into an agreement with the German Federal Ministry for Economic Affairs and Climate Action as the project coordinator for the ISEHM Project. The aim of the project is to enable the marketable series production of 5kW power generators with fuel cell technology, based on HT-PEMs and an integrated methanol reformer. The project is in coordination with a consortium of partners including Advent Technologies A/S. The term of the ISEHM Project is from September 2020 through September 2023 and has a total budget of €5.4 million. The project partners can be reimbursed for expenses related to research and development up to 30% of the total budget.

During the years ended December 31, 2023, the Company recognized $0.2 million, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

*Advent Technologies GmbH and Innovation Competition for Climate-Neutral Production Using Industry 4.0 Solutions Project*

In June 2022, Advent Technologies GmbH signed an agreement with the State Parliament of Baden-Württemberg and the Ministry of Economics, Labor, and Tourism to lead a consortium of partners for the innovation competition for climate-neutral production using industry 4.0 solutions. The project aim is to reduce waste production of fuel cell stacks through imaging quality control of the bipolar plates. Advent Technologies GmbH is eligible to receive reimbursements up to €0.1 million related to research and development related to the project. The project's term is through fiscal year 2023.

During the year ended December 31, 2023, the Company recognized $0.1 million, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

*Advent Technologies S.A. and Ni-Based Ferromagnetic Coatings with Enhanced Efficiency to Replace Pt in Energy & Digital Storage Applications Project ("NICKEFFECT Project")*

In June 2022 Advent Technologies S.A became a partner in the European Union ("EU") funded NICKEFFECT Project. The aim of the project is to find alternatives to platinum group metals ("PGMs") to replace PGMs in key applications as electrolysers electrodes, fuel cell catalysts and magneto-electronic devices. NICKEFFECT will develop and validate at least 3 new materials, together with the coating methodologies (including process modelling) and decision support tools for materials selection (integrating safe and sustainable by design criteria and materials modelling). Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.4 million of research and development costs. The project ends in May 2026.

During the years ended December 31, 2023, the Company recognized $0.1 million, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations. As of December 31, 2024 and 2023, $0.1 million and $0.1 million, respectively, was included as deferred income from grants, current on the consolidated balance sheets. As of December 31, 2024 and 2023, $0.1 million and nil, respectively, was included as deferred income from grants, non-current on the consolidated balance sheets.

[**Table of Contents**](#toc)

*Advent Technologies S.A. and GreenSkills4H2 - The European Hydrogen Skills Alliance Project ("GreenSkills4H2 Project")*

In July 2022 Advent Technologies S.A became a partner in the European Union ("EU") funded GreenSkills4H2 Project. The aim of the project is to bring together key industry and education stakeholders from across the European hydrogen sector to promote investments and stimulate clean hydrogen production and use. Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.1 million or 80% of eligible of research and development costs. The project ends in May 2026.

During the years ended December 31, 2024 and 2023, the Company recognized $0.01 million and $0.1 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations. As of December 31, 2024 and 2023, nil and $0.01 million, respectively, was included as receivable from grants in prepaid expenses and other current assets on the consolidated balance sheets. As of December 31, 2024 and 2023, $0.01 million and nil, respectively, was included as deferred income from grants, non-current on the consolidated balance sheets.

*Advent Technologies S.A. and Liquid Fuel Electrochemical Generators Project ("Li.F.E. Project")*

In September 2022 Advent Technologies S.A became a partner in the European Union ("EU") funded Li.F.E. Project. The aims of the project are to improve and validate the next generation liquid fuel electrochemical engine technology for power generation and mobility, especially marine, create partnerships with Tier-1 and original equipment manufacturers, lead the transition e-fuels for the transport sector and provide zero-emission vehicles through the most environmentally friendly fuel cell stacks. Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $1.9 million or 70% of eligible of research and development costs. The project ends in April 2025.

During the year ended December 31, 2024 and 2023, the Company recognized $0.2 million and $0.5 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2023, $0.1 million was included within deferred income from grants, current on the consolidated balance sheet and as of December 31, 2024, $0.1 million was included as receivable from grants in prepaid expenses and other current assets on the consolidated balance sheets.

*Advent Technologies S.A. and Next Generation of Improved High Temperature Membrane Electrode Assembly for Aviation Project ("NIMPHEA Project")*

In December 2022 Advent Technologies S.A became a partner in the European Union ("EU") funded NIMPHEA Project. The aim of the project is to develop a new-generation HT MEA compatible with aircraft environment and requirements, considering a system size of 1.5 MW and contributing to higher level FC targets: a power density of 1.25 W/cm² at nominal operating temperature comprised between 160°C-200°C. MEA components' upscale synthesis and assembly process will be assessed by identifying process parameters and improved through an iterative process with lab-scale MEA tests. Advent SA can be reimbursed up to $0.8 million of research and development costs. The project ends in December 2026.

During the year ended December 31, 2024 and 2023, the Company recognized $0.1 million and $0.3 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024 and 2023, $0.2 million and $0.1 million, respectively, was included as receivable from grants in prepaid expenses and other current assets on the consolidated balance sheets.

[**Table of Contents**](#toc)

*Advent Technologies S.A. and Electrochemical Conversion of CO2 into Added Value Products via Highly Selective Bimetallic Materials and Innovative Process Design Network ("ECOMATES Network")*

In February 2023 Advent Technologies S.A became a partner in the European Union ("EU") funded ECOMATES network which gathers large European universities, international research laboratories, and other enterprises for cutting-edge Membrane Electrode Assemblies ("MEA" or "MEAs") research. Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.2 million of eligible of research and development costs. The project ends in January 2027.

During the years ended December 31, 2024 and 2023, the Company recognized $0.02 million and $0.1 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024 and 2023, $0.1 million and $0.1 million, was included within deferred income from grants, current on the consolidated balance sheet. As of December 31, 2024 and 2023, $0.1 million and $0.02 million, respectively, was included within deferred income from grants, non-current on the consolidated balance sheet.

*Advent Technologies S.A. and Recycling Critical Metals from Fuel Cells ("LYDIA Project")*

In January 2023 Advent Technologies S.A became a partner in the EIT RawMaterials GmbH ("EIT") funded LYDIA project (co-funded by the European Union ("EU")), which aims to commercialize low-cost components (30% lower to commercial) for hydrogen devices (fuel cell, electrolyzers) through recycling end of life membrane electrode assembly (MEAs) and extraction of platinum group metals ("PGMs"). Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.3 million of eligible of research and development costs. The project ends in December 2025.

During the years ended December 31, 2024 and 2023, the Company recognized $0.1 million and $0.1 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024 and 2023, $0.01 million and $0.1 million, respectively, was included as receivable from grants in prepaid expenses and other current assets on the consolidated balance sheets.

*Advent Technologies S.A. and Advanced MEAs ensuring high efficiency heavy duty vehicle ("MEAsureD Project")*

In January 2023 Advent Technologies S.A became a coordinator and partner in the European Union ("EU") funded MEAsureD project, which targets to provide advanced, cost-effective proton exchange membranes ("PEM") and stable electrodes for the membrane electrode assembly (MEA) at higher temperatures (>160 oC). Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.8 million of eligible of research and development costs. The project ends in May 2026.

During the year ended December 31, 2024 and 2023, the Company recognized $0.25 million and $0.1 million, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024 and 2023, $0.2 million and $0.3 million, respectively, was included within deferred income from grants, current on the consolidated balance sheet. As of December 31, 2024 and 2023, $0.1 million and $0.3 million, respectively, was included within deferred income from grants, non-current on the consolidated balance sheet.

*Advent Technologies S.A. and promoting an environmentally-responsible hydrogen economy by enabling product environmental footprint studies ("HyPEF Project")*

In December 2023 Advent Technologies S.A became a partner in the European Union ("EU") funded HyPEF project, which targets to support and promote the establishment of an environmentally-responsible hydrogen economy by developing and testing the first Product Environmental Footprint Category Rules ("PEFCRs") specific to fuel cells and hydrogen ("FCH") products, while paving the way for subsequent related initiatives in the FCH sector. Per the terms of the project, Advent Technologies S.A. can be reimbursed up to $0.1 million of eligible of research and development costs. The project ends in January 2027.

During the years ended December 31, 2024 and 2023, the Company recognized $0.1 million and nil, respectively, in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

[**Table of Contents**](#toc)

*Advent Technologies S.A. ("CRUSADE")*

CRUSADE project aims to demonstrate a holistic technological solution on the recycling of end-of-life products to extract CRMs and disrupt the EU supply demand deficit of these materials, as well as the dependence on imports from third countries. Advent's contribution is to provide material (scrap) from end-of-life fuel cells or indicate specific recycling companies which could provide scrap from fuel cells (MEAs). As an end user Advent will further test/validate the electrodes that will be produced using recycled materials (single cell performance).

During the year ended December 31, 2024, the Company recognized $0.3 million in reimbursements related to the project which is included as income from grants on the consolidated statement of operations.

As of December 31, 2024, $0.04 million, was included within deferred income from grants, current on the consolidated balance sheet. As of December 31, 2024, $0.02 million, was included within deferred income from grants, non-current on the consolidated balance sheet.

***Advertising, Marketing and Promotional Costs***

Advertising marketing and promotional costs are expensed as incurred and are included as an element of administrative and selling expenses in the consolidated statement of operations. Advertising, marketing and promotional costs were $3 thousand and $0.1 million for the years ended December 31, 2024 and 2023, respectively.

***Income taxes***

Advent follows the asset and liability method of accounting for income taxes under ASC 740, Income Taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits, such as net operating loss carry forwards, to the extent that it is more likely than not that such benefits will be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Valuation allowances are reassessed periodically to determine whether it is more likely than not that the tax benefits will be realized in the future and if any existing valuation allowance should be released.

Part of the Advent's business activities are conducted through its subsidiaries outside of U.S. Earnings from these subsidiaries are generally indefinitely reinvested in the local businesses. Further, local laws and regulations may also restrict certain subsidiaries from paying dividends to their parents. Consequently, Advent generally does not accrue income taxes for the repatriation of such earnings in accordance with ASC 740, "Income Taxes." To the extent that there are excess accumulated earnings that the Company intends to repatriate from any such subsidiaries, the Company will recognize deferred tax liabilities on such foreign earnings.

Advent assesses its income tax positions and records tax benefits for all years subject to examination based on the evaluation of the facts, circumstances, and information available at each reporting date. For those tax positions with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information, Advent records a tax benefit. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. Advent recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. For those income tax positions that are not likely to be sustained, no tax benefit is recognized in the consolidated financial statements. Advent recognizes interest and penalties related to uncertain tax positions as part of the provision for income taxes.

[**Table of Contents**](#toc)

For the years ended December 31, 2024 and 2023, net income tax benefits (provisions) of $0.1 million and $0.1 million, respectively, have been recorded in the consolidated statements of operations. The Company is currently not aware of any issues under review that could result in significant accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities.

The Company and its U.S. subsidiaries may be subject to potential examination by U.S. federal, state and city, while the Company's subsidiaries outside U.S. may be subject to potential examination by their taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with the U.S. federal, state and city, and tax laws in the countries where business activities of Company's subsidiaries are conducted. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("Tax Reform") was signed into legislation. As part of the legislation, the U.S. corporate income tax rate was reduced from 35% to 21%, among other changes.

***Employee Benefits***

***U.S. Retirement Savings Plan***

The Company sponsors an employee savings plan under Section 401(k) of the Internal Revenue Code. Subsequent to the Business Combination, the Company made matching contributions equal to 100% of the participant's pre-tax contribution up to a maximum of 5% of the participant's eligible earnings for U.S employees. Total expense related to the Company's defined contribution plan was $0.2 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively.

***Defined Benefit Plans***

Under Greek labor law, employees are entitled to staff leaving indemnity in the event of dismissal or retirement with the amount of payment varying in relation to the employee's compensation, length of service and manner of termination (dismissed or retired). Employees who resign or are dismissed with cause are not entitled to staff leaving indemnity. Staff retirement obligations are calculated at the present value of the future retirement benefits deemed to have accrued at year-end, based on the employees earning retirement benefit rights accumulated throughout the working period in accordance with the Greek Labor Law 2112/1920.

The provision for retirement obligations is classified as defined benefit plan under ASC 715-30 and is based on an actuarial valuation. Net costs for the period are separately reflected in the accompanying consolidated statements of comprehensive loss consist of the present value of benefits earned in the year, interest cost on the benefit obligation, past service cost and gains or losses on curtailment. Past service costs are recognized in the consolidated statements of operations on the earlier of the date of plan amendment and the date that the Company recognizes restructuring or termination costs. Actuarial gains or losses are recognized immediately in the consolidated balance sheets with a corresponding debit or credit to equity through other comprehensive income (loss) in the period in which they occur. Re-measurements are not reclassified to profit and loss in subsequent periods.

***Stock-based Compensation***

Stock-based compensation consists of stock options and restricted stock units ("RSUs"). Stock options and RSUs are equity classified and are measured at the fair market value of the underlying stock at the grant date. The fair value of stock option awards with only service is estimated on the grant date using the Black-Scholes option-pricing model. The fair value of RSUs is measured on the grant date based on the closing fair market value of our common stock. Under ASC 718, an entity may recognize stock-based compensation expense for an award with only a service condition that has a graded vesting schedule on either (1) an accelerated basis as though each separately vesting portion of the award was, in substance, a separate award or (2) a straight-line basis over the total requisite service period for the entire award. An entity's use of either a straight-line or an accelerated attribution method represents an accounting policy election and thus should be applied consistently to all similar awards. The Company has elected to recognize compensation cost on a straight-line basis over the total requisite service period for the stock options and restricted stock units. This election does not affect the Company's previous year's results since the Restricted Stock Awards granted in the prior period did not have a service requirement and therefore the stock compensation expense was recognized immediately. The Company also has a policy of accounting for forfeitures when they occur. Stock-based compensation expense is recorded in administrative and selling expenses in the consolidated statements of operations.

[**Table of Contents**](#toc)

***Earnings / (Loss) Per Share***

Basic earnings / (Loss) per share is computed by dividing net earnings / (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings / (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted at the beginning of the periods presented, or issuance date, if later. The treasury stock method is used to compute the dilutive effect of warrants, stock options and restricted stock units.

***Fair Value Measurements***

The Company follows the accounting guidance in ASC 820 for its fair value measurements of financial assets and liabilities measured at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance requires fair value measurements be classified and disclosed in one of the following three categories:

● Level 1: Quoted prices in active markets for identical assets or liabilities.

● Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

● Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

***Available for Sale Financial Asset***

On May 25, 2022, Advent Technologies S.A ("Advent SA") and UNI.FUND Mutual Fund ("UNIFUND") entered into an agreement to finance Cyrus SA ("Cyrus") with a convertible bond loan ("Bond Loan") of €1.0 million. As a part of this transaction, Advent SA offered €0.3 million in bond loans with an annual interest rate of 8.00%. The term of the loan is three years and there is a surcharge of 2.5% for overdue interest.

Mandatory conversion of the Bond Loan will occur in the event of qualified financing which is equivalent to a share capital increase by Cyrus in the first three years from the execution of the Bond Loan agreement with a total amount over €3 million which is covered by third parties unrelated to the basic shareholders or by investors related to them.

The Company classifies the Bond Loan as an available for sale financial asset on the consolidated balance sheets. The Company recognizes interest income within the consolidated statement of operations. For the year ended December 31, 2024, and 2023, the Company recognized $26 thousand and $26 thousand of interest income related to the Bond Loan within the consolidated statements of operations, respectively.

The Company initially measured the available for sale Bond Loan at the transaction price plus any applicable transaction costs. The Bond Loan is remeasured to its fair value at each reporting period and upon settlement. The estimated fair value of the Bond Loan is determined using Level 3 inputs by using a discounted cash flow model. The change in fair value is recognized within the consolidated statements of comprehensive loss. As of December 31, 2024, the Company continues to fully reserve the Bond Loan as an expected credit loss. The Company did not recognize any unrealized gain / (loss) on the Bond Loan for the years ended December 31, 2024 and December 31, 2023.

[**Table of Contents**](#toc)

***Warrants***

The Company may issue or assume common stock warrants with debt, equity or as standalone financing instruments that are recorded as either liabilities or equity in accordance with the respective accounting guidance. Warrants recorded as equity are recorded at their relative fair value or fair value determined at the issuance date and remeasurement is not required. Warrants recorded as liabilities are recorded at their fair value, within warrant liability on the consolidated balance sheets, and remeasured on each reporting date with changes recorded in fair value change of warrant liability on the Company's consolidated statements of operations.

***Warrant Liability***

As a result of the Business Combination, the Company assumed a warrant liability (the "Warrant Liability") related to previously issued 131,343 warrants, each exercisable to purchase one share of common stock at an exercise price of $345.00 per share, originally sold to AMCI Sponsor LLC (the "Sponsor") in a private placement consummated in connection with AMCI's initial public offering (the "Private Placement Warrants") and the 13,333 warrants, each exercisable to purchase one share of common stock at an exercise price of $345.00 per share, converted from the Sponsor's non-interest bearing loan to the Company of $0.4 million in connection with the closing of the Business Combination (the "Working Capital Warrants") (Note 14). The Private Placement Warrants and the Working Capital Warrants have substantially the same terms as the 734,309 warrants, each exercisable to purchase one share of common stock at an exercise price of $345.00 per share, issued by AMCI in its initial public offering (the "Public Warrants"). As of December 31, 2024, the Company had an aggregate of 65,671 Private Placement Warrants and Working Capital Warrants outstanding.

The following tables summarize the fair value of the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and December 31, 2023.

---

| | | |
|:---|:---|:---|
| | **As of<br> December 31,<br> 2024** | **As of<br> December 31,<br> 2024** |
| <br>(Amounts in thousands) | **Fair Value** | **Unobservable Inputs<br> (Level 3)** |
| **Assets** |  |  |
| Available for sale financial asset | $- | $- |
|  | $**-** | $**-** |
| **Liabilities** |  |  |
| Warrant liability | $- | $- |
|  | $**-** | $**-** |

---

---

| | | |
|:---|:---|:---|
| | **As of<br> December 31,<br> 2023** | **As of<br> December 31,<br> 2023** |
| <br>(Amounts in thousands) | **Fair Value** | **Unobservable Inputs<br> (Level 3)** |
| **Assets** |  |  |
| Available for sale financial asset | $- | $- |
|  | $**-** | $**-** |
| **Liabilities** |  |  |
| Warrant liability | $59 | $59 |
|  | $**59** | $**59** |

---

[**Table of Contents**](#toc)

The carrying amounts of the Company's remaining financial instruments reflected on the consolidated balance sheets and which consist of cash and cash equivalents, accounts receivables, net, other current assets, trade and other payables, and other current liabilities, approximate their respective fair values due to their short-term nature.

Changes in the fair value of Level 3 assets and liabilities for the years ended December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
| **Available for Sale Financial Asset** | **Available for Sale Financial Asset** | **Available for Sale Financial Asset** |
| (Amounts in thousands) | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** |
| **Estimated fair value (beginning of period)** | $**-** | $**320** |
| Estimated fair value of available for sale financial asset acquired |  |  |
| Foreign exchange fluctuations |  |  |
| Change in estimated fair value | - | (320) |
| **Estimated fair value (end of period)** | $**-** | $**-** |

---

---

| | | |
|:---|:---|:---|
| **Warrant Liability** | **Warrant Liability** | **Warrant Liability** |
| (Amounts in thousands) | **For the<br> Year Ended<br> December 31,<br> 2024** | **For the<br> Year Ended<br> December 31,<br> 2023** |
| **Estimated fair value (beginning of period)** | $**59** | $**998** |
| Change in estimated fair value | (59) | (394) |
| Reclassification of private placement warrants | - | (545) |
| **Estimated fair value (end of period)** | $**-** | $**59** |

---

The Warrant Liability is remeasured to its fair value at each reporting period and upon settlement. The change in fair value is recognized in "Fair value change of warrant liability" on the consolidated statements of operations.

The estimated fair value of the Private Placement Warrants and the Working Capital Warrants (each as defined below) is determined using Level 3 inputs by using the Black-Scholes model. The application of the Black-Scholes model requires the use of a number of inputs and significant assumptions including volatility. Significant judgment is required in determining the expected volatility of our common stock. Due to the limited history of trading of our common stock, we determined expected volatility based on a peer group of publicly traded companies.

The following tables provide quantitative information regarding Level 3 fair value measurement inputs as of their measurement date December 31, 2024:

---

| | |
|:---|:---|
| **Available for Sale Financial Asset** | **Available for Sale Financial Asset** |
| Interest Rate | 8.00% |
| Discount Rate | 8.00% |
| Remaining term (in years) | 0.40 |

---

---

| | |
|:---|:---|
| **Warrant Liability** | **Warrant Liability** |
| Stock price | $5.00 |
| Exercise price (strike price) | $345.00 |
| Risk-free interest rate | 4.16% |
| Volatility | 149.6% |
| Remaining term (in years) | 1.09 |

---

The Company performs routine procedures such as comparing prices obtained from independent sources to ensure that appropriate fair values are recorded.

[**Table of Contents**](#toc)

***Concentration of Risk***

***i)***  ***Credit risk*** 

Financial instruments that potentially subject us to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. Our cash balances are primarily invested in money market funds or on deposits at high credit quality financial institutions.

As of December 31, 2024 and 2023, the Company had one and two major customers, respectively, that represented more than 10% of our accounts receivable balance.

During the year ended December 31, 2024 and 2023, the Company had three customers that represented more than 10% of its revenues.

***ii)*** ***Supply risk***

The Company obtains a limited number of components and supplies included in its products from a small group of suppliers. During the year ended December 31, 2024, the Company had no supplier who accounted for more than 10% of its total purchases. During the year ended December 31, 2023, the Company had one supplier who accounted for more than 10% of its total purchases.

***Recent Accounting pronouncements***

Recently issued accounting pronouncements adopted during the year:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments, which, amends the requirement on the measurement and recognition of expected credit losses for financial assets held. Furthermore, amendments, ASU 2019-10 and ASU 2019-11 provided additional clarification for implementing ASU 2016-13. ASU 2016-13 is effective for the Company beginning January 1, 2023, with early adoption permitted. The Company adopted the standard on January 1, 2023 and included the related disclosures in the consolidated financial statements.

***Recently issued accounting pronouncements not yet adopted:***

On December 14, the FASB issued, ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard applies to all entities subject to income taxes and is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. For public business entities (PBEs), the new requirements will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is currently in the process of evaluating the effect of this guidance on its financial statements.

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures", which requires companies to disclose significant segment expenses and other segment items used by the Chief Operating Decision Maker ("CODM") on an annual and interim basis as well as provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. Additionally, the Company will be required to disclose the title and position of the CODM. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This ASU will have no impact on results of operations, cash flows or financial condition.

[**Table of Contents**](#toc)

**3. Related party disclosures**

***Balances with related parties***

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| **Due to related parties** |  |  |
| Vassilios Gregoriou | $75 | $- |
| Maria Gregoriou | 50 |  |
| Emory S. De Castro | 180 | - |
| **Total** | $**305** | $**-** |

---

The outstanding balances as of December 31, 2024 due to the Company's executives and officers primarily relate to short-term promissory notes with the Company. The notes are due by August 31, 2026 and bear interest at a rate of 5.00% per annum. Emory S. De Castro's balance of $180 thousand is comprised of $128 thousand related to the promissory note and $52 thousand relates to certain expenses paid for on behalf of the Company.

***Transactions with related parties***

Related parties' transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties.

**4. Accounts receivable, net**

Accounts receivable consist of the following:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Accounts receivable from third party customers | $2799 | $348 |
| Less: Allowance for credit losses | (1837) | (285) |
| **Accounts receivable, net** | $**962** | $**63** |

---

For the years ended December 31, 2024 and 2023, changes in the allowance for credit losses were as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| **Balance at beginning of year** | $**(285)** | $**(218)** |
| Additions | (1653) | (62) |
| Income from unused provisions | 60 |  |
| Utilized provisions during the year |  |  |
| Foreign exchange fluctuations | 41 | (5) |
| **Balance at end of year** | $**(1837)** | $**(285)** |

---

[**Table of Contents**](#toc)

**5. Inventories**

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Raw materials and supplies | $4540 | $4864 |
| Work-in-process |  | 90 |
| Finished goods | 229 | 259 |
| **Total** | $**4769** | $**5213** |
| Provision for inventory | (4761) | (5018) |
| **Total** | $**8** | $**195** |

---

The changes in the provision for inventory is as follows:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **Year Ended<br> December 31,<br> 2024** | **Year Ended<br> December 31,<br> 2023** |
| **Balance at beginning of year** | $**(5018)** | $**(45)** |
| Additions | (83) | (4917) |
| Income from unused provisions during the year | 99 |  |
| Utilized provisions during the year | 16 |  |
| Foreign exchange fluctuations | 225 | (56) |
| **Balance at end of year** | $**(4761)** | $**(5018)** |

---

Additions to provision for inventory includes provision for slow moving inventory at various locations, considering Company's high uncertainty over realization of inventory in future sales projects or in research and development projects and provision for reducing the carrying value of inventory to net realizable values.

**6. Prepaid expenses and other current assets**

Prepaid expenses are analyzed as follows:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Prepaid insurance expenses | $123 | $155 |
| Prepaid research expenses | 255 | 36 |
| Prepaid rent expenses |  |  |
| Other prepaid expenses | 19 | 27 |
| **Total** | $**397** | $**218** |

---

Prepaid insurance expenses as of December 31, 2024 and 2023 mainly include prepayments to insurers for directors' and officers' insurance services for liabilities that may arise in their capacity as directors and officers of a public entity.

Prepaid research expenses as of December 31, 2024 and 2023 mainly relate to prepayments for expenses under the grant agreements and Cooperative Research and Development Agreement as discussed in Note 18.

[**Table of Contents**](#toc)

Other prepaid expenses as of December 31, 2024 and 2023 mainly include prepayments for professional fees and purchases, which also include costs to fulfill a contract with customers which are expected to be recognized within 2024, upon delivery of services to these customers.

Other current assets are analyzed as follows:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| VAT receivable | $49 | $267 |
| Grant receivable | 36 | 181 |
| Purchases under receipt |  | 1 |
| Other receivables | 237 | 91 |
| Accrued sublease income | - | 80 |
| Total | $**322** | $**620** |

---

Grant receivable as of December 31, 2024 and 2023 relate to accrued income from grants as disclosed in Note 2.

**7. Goodwill and Intangible Assets**

***Goodwill***

As of December 31, 2024 and 2023, the Company had no remaining goodwill related to the acquisitions of UltraCell, SerEnergy, and FES, which is analyzed as follows:

---

| | | | |
|:---|:---|:---|:---|
| (Amounts in thousands) | **Gross<br> Carrying<br> Amount** | **Cumulative<br> Impairment** | **Net<br> Carrying<br> Amount** |
| Goodwill on acquisition of UltraCell | $631 | $(631) | $- |
| Goodwill on acquisition of SerEnergy and FES | 29399 | (29399) | - |
| **Total goodwill** | $**30030** | $**(30030)** | $**-** |

---

The Company performed a qualitative analysis for quarter ended June 30, 2023 and determined that triggering events for two of the Company's reporting units, UltraCell and SerEnergy / FES, had occurred which would require testing goodwill and long-lived assets, including definite-lived intangibles, for impairment.

The Company considered the triggering events related to current and expected future economic and market conditions and their impact on the Company, as well as the current revenue forecasts. Given certain market factors, the Company determined that these triggering events had occurred and would require a quantitative analysis to be performed.

As a part of the impairment assessment, the Company reviewed significant fair value input assumptions including revenues, margin, and capital expenditures to reflect current market conditions. Other changes in valuation assumptions included increases in interest rates and market volatility, resulting in higher discount rates.

[**Table of Contents**](#toc)

*UltraCell Reporting Unit*

In the second quarter of 2023, the Company updated the forecasted future cash flows of UltraCell used in the fair value measurement of the intangible assets and goodwill using a combination of market, cost and income approach methods. The Company is phasing out use of the UltraCell trade name and therefore recognized an impairment charge of $0.4 million during the period. The Patented Technology was valued with the multi-period excess earnings method, which is an income approach. The discount rate used for the valuation of the Patented Technology increased to 17.7% from 11.6% at the time of the acquisition of UltraCell. The Company determined that the undiscounted cash flows related to the Patented Technology was less than the current carrying value and therefore recognized an impairment charge of $3.3 million during the period. The Company determined that the fair value of the reporting unit utilizing the updated forecast was less than its current carrying value. As a result, the Company recorded a goodwill impairment charge of $0.6 million for the year ended December 31, 2023, and did not record a goodwill impairment charge for the year ended December 31, 2024.

*SerEnergy and FES Reporting Unit*

In the second quarter of 2023, the Company updated the forecasted future cash flows of SerEnergy and FES used in the fair value measurement of the intangible assets and goodwill using a combination of market, cost and income approach methods. The Company acquired finite-lived intangible assets, including patents, process know-how, and order backlog in conjunction with the SerEnergy and FES acquisition. The Company determined the undiscounted cash flows attributable to the IPR&D was greater than the current carrying value. As a result, the Company believes that the updated long-term forecast did not indicate impairment related to IPR&D. All other finite-lived intangible assets related to the SerEnergy and FES acquisition were previously fully amortized or impaired. The Company determined that the fair value of the reporting unit was $13.6 million utilizing the updated forecast, which was less than its current carrying value. As a result, the Company recorded a goodwill impairment charge of $5.1 million for the year ended December 31, 2023, and did not record a goodwill impairment charge for the year ended December 31, 2024.

During the fourth quarter of 2023, the Company fully impaired IPR&D given it is unlikely to recognize a future benefit from the intangible asset.

***Intangible Assets***

Information regarding our intangible assets, including assets recognized from our acquisitions, as of December 31, 2024 and 2023 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>(Amounts in thousands) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Cumulative<br> Impairment** | **Net<br> Carrying<br> Amount** |
| **Finite-lived intangible assets:** |  |  |  |  |
| Software | 250 | (165) | **-** | 85 |
| **Total intangible assets** | $**250** | $**(165)** | $**-** | $**85** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** |
| <br>(Amounts in thousands) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Cumulative<br> Impairment** | **Net<br> Carrying<br> Amount** |
| **Indefinite-lived intangible assets:** |  |  |  |  |
| Trade name "UltraCell" | $406 | $- | $(406) | $- |
| **Total indefinite-lived intangible assets** | $**406** | $**-** | $**(406)** | $**-** |
| **Finite-lived intangible assets:** |  |  |  |  |
| Patents | 21221 | (3247) | (17974) |  |
| Process know-how (IPR&D) | 2612 | (1017) | (1595) |  |
| Order backlog | 266 | (266) | **-** |  |
| Software | 233 | (154) | **-** | 79 |
| **Total finite-lived intangible assets** | $**24332** | $**(4684)** | $**(19569)** | $**79** |
| **Total intangible assets** | $**24738** | $**(4684)** | $**(19975)** | $**79** |

---

[**Table of Contents**](#toc)

During the year ended December 31, 2024, the Company recorded additions of less than $0.1 million to software. The Company did not record any additions to indefinite-lived intangible assets in the year ended December 31, 2023.

During the year ended December 31, 2023, the Company recorded $0.2 million of amortizing intangible assets related to software. The amortizing intangible assets consist of patents, process know-how *(IPR&D)*, and software which are amortized over 10 years, 6 years, and 5 years respectively. The amortization expense for the intangible assets for the years ended December 31, 2024 and 2023 was $0.1 million and $0.2 million, respectively.

All remaining intangible assets, other than software, from the UltraCell and SerEnergy and FES acquisitions were impaired during the year ended December 31, 2023.

Amortization expense is recorded on a straight-line basis. Assuming constant foreign currency exchange rates and no change in the gross carrying amount of the intangible assets, future amortization expense related to the Company's intangible assets subject to amortization as of December 31, 2024 is expected to be as follows:

---

| | |
|:---|:---|
| (Amounts in thousands) |  |
| **Fiscal Year Ended December 31,** |  |
| 2025 | $37 |
| 2026 | 21 |
| 2027 | 9 |
| 2028 | 9 |
| 2029 | 9 |
| Thereafter | - |
| **Total** | $**85** |

---

**8. Property, plant and equipment, net**

Property, plant and equipment, net, consisted of the following:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Land, Buildings & Leasehold Improvements | $865 | $12565 |
| Machinery | 4512 | 11734 |
| Equipment | 1747 | 2591 |
| Assets under construction | - | - |
|  | $**7124** | $**26890** |
| Less: accumulated depreciation | (102) | (3673) |
| Less: impairment | (2384) | (2384) |
| **Total** | $**4638** | $**20833** |

---

[**Table of Contents**](#toc)

During the year ended December 31, 2024, the Company did not have any additions to property, plant and equipment.

During the year ended December 31, 2023, additions to property, plant and equipment of $9.1 million, primarily consisted of machines and assets under construction related to the Hood Park facility. Additionally, on April 27, 2023, the Company entered into an agreement with ETTEL S.A. to purchase land in Kozani, Greece in the amount of €0.8 million.

On June 29, 2024, in an effort to reduce costs, the Company decided to relinquish the facility located at Hood Park and secured a substitute tenant to occupy the space. The Company and the landlord agreed to accelerate the expiration of the lease to occur on June 30, 2024. The Company had a letter of credit in the amount of $750 thousand in favor of the landlord, which letter of the credit was released to the landlord in satisfaction of any claims against the Company. During the year ended December 31, 2024, the Company wrote off $9.8 million of leasehold improvements, $0.5 million of furniture, $1.7 million of right-of-use asset, $1.5 million of operating lease liabilities and $6.9M of long-term operating lease liabilities as part of the exit of Hood Park. As of December 31, 2023, the Company had $10.4 million of leasehold improvements and $0.5 million of furniture that would be forfeited as part of the exit of Hood Park. The Company recognized a net loss on disposal of $3.5 million in connection with the expiration of the lease at Hood Park during the year ended December 31, 2024.

On May 7, 2024, the Company entered into an agreement to sell two coating machines (part of its property, plant and equipment) from the Hood Park facility for $0.9 million resulting in a loss of $2.5 million. On May 8, 2024, the Company received an initial deposit of $0.3 million of the purchase price, and received the remaining $0.6 million of the purchase price in July 2024. The remaining machinery and equipment from Hood Park were relocated for use at the Company's other locations.

During the year ended December 31, 2024, the Company recognized losses of $0.3 million on the sale of machinery to the Discontinued Subsidiaries.

During the year ended December 31, 2023, the Company transferred $11.5 million of assets under construction to land, buildings and leasehold improvements related to the Hood Park facility.

Depreciation expense during the years ended December 31, 2024 and 2023 was $1.6 million and $3.0 million respectively.

During the three months ended June 30, 2023, the Company decided to consolidate certain of its German operations with its operations in Denmark and Greece. In July 2023, the Company initiated the process to communicate its plan to affected employees in Germany and to relocate certain equipment to either Denmark or Greece. As part of this consolidation, the Company anticipated it would dispose of equipment below its current carrying value, resulting in an impairment charge of $0.3 million during the second quarter of 2023. The affected employees continued to provide service through their termination dates, and as a result, the Company did not incur material severance charges.

The Company has a short-term loan payable which is partially collateralized with the Company's property, plant and equipment, refer to Note 13.

**9. Other non-current assets**

Other non-current assets as of December 31, 2024 are comprised of advances to suppliers for the acquisition of fixed assets of $0.1 million and guarantees to suppliers of $0.2 million.

Other non-current assets as of December 31, 2023 are mostly comprised of guarantees to suppliers of $0.2 million.

**10. Trade and other payables:**

Trade and other payables as of December 31, 2024 and December 31, 2023 include balances of suppliers and consulting service providers of $16.7 million and $4.0 million, respectively.

The increase in trade and other payables for the year ended December 31, 2024 is driven by an $11.6 million payable between the Company and one of its Discontinued Subsidiaries which was previously eliminated as intercompany activity.

[**Table of Contents**](#toc)

**11. Other current liabilities**

As of December 31, 2024 and 2023, other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Accrued expenses<sup>(1)</sup> | $388 | $653 |
| Other short-term payables | 1303 | 44 |
| Taxes and duties payable | 330 | 255 |
| Provision for unused vacation |  | 4 |
| Social security funds | 189 | 70 |
| Overtime provision | - | 9 |
| **Total** | $**2210** | $**1035** |

---

Other short-term payables largely consist of salary payable to the Company's officers who have not received a salary payment since May 2024.

(1) Accrued expenses are analyzed as follows:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Accrued expenses for legal and consulting fees | $183 | $219 |
| Accrued payroll fees |  | 139 |
| Other accrued expenses | 205 | 295 |
| **Total** | $**388** | $**653** |

---

Other accrued expenses mainly consist of accrued staff expenses and audit fees.

**12. Leases**

The Company enters into operating lease agreements for the use of real estate and certain other equipment. The Company determines if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The impacts of accounting for operating leases are included in Right-of-use assets, Operating lease liabilities, and Long-term operating lease liabilities in the Company's consolidated balance sheets.

On February 5, 2021, the Company entered into a lease agreement by and among the Company, in its capacity as tenant, and BP Hancock LLC, a Delaware limited liability company, in its capacity as landlord. The lease provides for the rental by the Company of office space at 200 Clarendon Street, Boston, MA 02116 for use as the Company's executive offices. Under the terms of the lease, the Company leases 6,041 square feet at an initial fixed annual rent of $0.5 million. The term of the lease is for five years (unless terminated as provided in the lease) and commenced on April 1, 2021. The Company provided security in the form of a security deposit in the amount of $0.1 million which is included in Other non-current assets on the consolidated balance sheet as of December 31, 2023. On April 17, 2024, the landlord terminated the lease for past due rent totaling $0.2 million and seized the security deposit of $0.1 million.

[**Table of Contents**](#toc)

On January 9, 2023, the Company entered into a sublease agreement by and among the Company, in its capacity as sublandlord, BP Hancock LLC, a Delaware limited liability company, in its capacity as landlord, and Hughes Boston, Inc. ("Hughes"), in its capacity as subtenant. The sublease provides for the rental by Hughes of office space at 200 Clarendon Street, Boston, MA 02116. Under the terms of the sublease, Hughes subleases 6,041 square feet at an initial fixed annual rent of $0.6 million and will increase 3.0% on each anniversary of the sublease commencement date. The term of the sublease is through March 2026 (unless terminated as provided in the sublease) and the sublease commencement date was February 1, 2023. The sublease was terminated on April 17, 2024 in connection with the termination of the lease agreement with BP Hancock LLC, in its capacity as landlord.

Additionally, the Company's subsidiaries, Advent Technologies S.A. and Advent Technologies LLC, have in place rental agreements for the lease of office and factory spaces.

On March 8, 2021, the Company entered into a lease for 21,401 square feet as a product development and manufacturing center at Hood Park in Charlestown, MA. Under the terms of the lease, the Company will pay an initial fixed annual rent of $1.5 million. The lease had a term of eight years and five months, with an option to extend for five years, and commenced in October 2022. The Company was obliged to provide security in the form of a security deposit in the amount of $0.8 million before commencement of the lease.

On April 1, 2024, the Company agreed with the landlord of the Hood Park facility for a 4-month rate abatement period (March through June 2024) and to extend the term of the lease for 4 additional months. On June 29, 2024, in an effort to reduce costs, the Company decided to abandon the facility at Hood Park and was able to find a new tenant to occupy the space. The Company and the landlord agreed to accelerate the expiration of the lease to occur on June 30, 2024. The Company had a letter of credit in the amount of $750 thousand in favor of the landlord, which letter of the credit was released to the landlord in satisfaction of any claims against the Company. The Company wrote off $1.7 million of right-of-use asset and $8.5 million of operating lease liabilities with the acceleration of the expiration of the lease.

Rental expense for all operating leases was $0.7 million and $1.5 million for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024 and 2023, rental expense for short-term leases was less than $0.1 million and $0.3 million, respectively.

As of December 31, 2024 and 2023, the right of use assets, net associated with operating leases was $0.3 million and $3.2 million, respectively.

Other information related to the operating leases are presented in the following table:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31,<br> 2024** | **Year ended**<br>**December 31,<br> 2023** |
| Cash payments (in thousands) | $1385 | $2139 |
| Weighted average remaining lease term (years) | 1.9 | 6.04 |
| Weighted average discount rate | 5.7% | 7.2% |

---

As of December 31, 2024, undiscounted maturities of operating lease liabilities are as follows (amounts in thousands):

---

| | |
|:---|:---|
|  | **Operating<br> Leases** |
| **Fiscal Year Ended December 31,** |  |
| 2025 | $151 |
| 2026 | 120 |
| 2027 | 17 |
| 2028 |  |
| 2029 |  |
| Thereafter | - |
| &nbsp;&nbsp;&nbsp;**Total undiscounted lease payments** | $**288** |
| Less: imputed interest | (15) |
| &nbsp;&nbsp;&nbsp;**Total discounted lease payments** | $**273** |
| Less: current portion | (89) |
| **Long-term lease liabilities** | $**184** |

---

[**Table of Contents**](#toc)

**13. Short-term loan payable**

On November 5, 2024, the Company entered into a term loan agreement with Agile Capital Funding, LLC as collateral agent, and Agile Lending, LLC, a Virginia limited liability company as "Lead Lender". The Company borrowed $594 thousand, net of fees paid to the lenders of $66 thousand. The Company is required to make weekly payments of approximately $31 thousand through maturity on June 19, 2025. The effective interest rate is 292.82% per year, assuming all payments are made on time. If the Company fails to make a payment on time the loan will be in default and the Company will be subject to an additional 5.00% default rate. Upon the prepayment of any principal amount, the Company is obligated to pay a prepayment fee comprising make-whole premium payment on account of such principal so paid, which Prepayment Fee shall be equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the Maturity Date. The Company may pay off the loan 30 days after funding for $792 thousand and 60 days after funding for $858 thousand.

The loan is collateralized with all of the Company's goods, accounts, equipment, inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, general intangibles (including intellectual property), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other collateral accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all of the Company's books and records relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

**14. Private Placement Warrants and Working Capital Warrants**

In connection with the Business Combination, the Company assumed 131,343 Private Placement Warrants issued upon AMCI's initial public offering. In addition, upon the closing of the Business Combination, the working capital loan provided by AMCI's Sponsor to AMCI was converted into 13,333 Working Capital Warrants, which were also assumed. The terms of the Working Capital Warrants are the same as those of the Private Placement Warrants.

As of December 31, 2024 and 2023, the Company had an aggregate of 65,671 Private Placement Warrants and Working Capital Warrants outstanding, respectively. Each Private Placement Warrant and Working Capital Warrant entitles the registered holder to purchase one share of Common Stock at a price of $345.00 per share, subject to adjustment, at any time commencing 30 days after the completion of the Business Combination. The Public Warrants expire five years after the closing of the Business Combination or earlier upon redemption or liquidation.

The Private Placement Warrants and Working Capital Warrants are identical to the Public Warrants, except that the Private Placement Warrants and Working Capital Warrants and the common stock issuable upon the exercise of those warrants were not transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants and Working Capital Warrants are exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If those warrants are held by someone other than the initial purchasers or their permitted transferees, they will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. As of December 31, 2024, an aggregate of 65,671 Private Placement Warrants and Working Capital Warrants are held by its initial purchasers.

According to the provisions of the Private Placement Warrants and Working Capital Warrants warrant agreements, the exercise price and number of shares of common stock issuable upon exercise of those warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. Private Placement Warrants and Working Capital Warrants are classified as liabilities in accordance with the Company's evaluation of the provisions of ASC 815-40-15, which provides that a warrant is not indexed to the issuer's common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant with a fixed exercise price and fixed number of underlying shares.

[**Table of Contents**](#toc)

**15. Employee benefits**

***Employee Tax-Deferred Savings Plans***

The Company offers a 401(k) savings plan (the "401(k) Plan") to all full-time employees that provides for tax-deferred salary deductions for eligible employees (beginning the first month following an employee's hire date). Employees may choose to make voluntary contributions of their annual compensation to the 401(k) Plan, limited to an annual maximum amount as set periodically by the IRS. Employee contributions are fully vested when made. Under the 401(k) Plan, there is no option available to the employee to receive or purchase the Company's common stock. Matching contributions of 5% under the 401(k) Plan aggregated $0.2 and $0.2 million for the years ended December 31, 2024 and 2023, respectively.

***Employee Defined Benefit Plans***

Under Greek labor law, employees are entitled to staff leaving indemnity in the event of dismissal or retirement with the amount of payment varying in relation to the employee's compensation, length of service and manner of termination (dismissed or retired). Employees who resign or are dismissed with cause are not entitled to staff leaving indemnity. The provision for retirement obligations is classified as defined benefit plan under ASC 715-30 and is based on an actuarial valuation.

As of December 31, 2024 and 2023, the defined benefit obligation presented in the consolidated balance sheets was $0.1 million and $0.1 million, respectively.

The changes in the defined benefit obligation for the years ended December 31, 2024 and 2023 were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Liability at beginning of year** | $**83** | $**72** |
| Interest cost | 3 | 2 |
| Service cost | 16 | 22 |
| Actuarial (gains) / losses |  | (15) |
| Foreign exchange fluctuations | (5) | 2 |
| **Liability at end of year** | $**97** | $**83** |

---

For the years ended December 31, 2024 and 2023, the amounts included in the consolidated statements of operations and in the consolidated statements of comprehensive income (loss) were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Amounts included on the consolidated statements of operations:** |  |  |
| Interest cost | $3 | $2 |
| Service cost | 16 | 22 |
| Total | $**19** | $**24** |

---

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **Amounts included on the consolidated statements of comprehensive income (loss):** |  |  |
| Actuarial (gains) / losses | $- | $(15) |
| Total | $**-** | $**(15)** |

---

[**Table of Contents**](#toc)

**Methodology**

ASC 715 requires that retirement benefit arrangements should be classified as defined benefit or defined contribution plans. Defined contribution plans are accounted for on a cash basis, i.e., the Net Periodic Benefit Cost in any period is equal to the employer cash contributions. The accounting treatment of defined benefit plans is more complicated and requires actuarial valuations because the standard requires the costs of defined benefit plans to be attributed to periods of employee service.

The Retirement Indemnities Plan (under Greek Law 4093) has been classified by the Company as unfunded defined benefit plans for ASC 715 accounting purposes.

The actuarial methodology uses an approach which considers the benefits in respect of service completed before the valuation date (past service) separately from benefits in respect of service expected to be completed after the valuation date (future service). This approach enables us to determine the defined benefit obligation and the cost of the benefits accruing in the year following the valuation date.

The calculation is based on the Projected Unit Credit method.

**Actuarial Assumptions**

The actuarial assumptions are the best estimates at the valuation date and are taken into account at the calculation of the Defined Benefit Obligation.

The principal actuarial assumptions used are:

---

| | | |
|:---|:---|:---|
| | **Valuation Date** | **Valuation Date** |
| <br>**Financial Assumptions** | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Discount rate | 3.08% | 3.08% |
| Future salary increases | 2.40% | 2.40% |
| Inflation | 1.10% | 2.10% |

---

---

| | | |
|:---|:---|:---|
| | **Valuation Date** | **Valuation Date** |
| <br>**Demographic Assumptions** | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Mortality<sup>(1)</sup> | EVK 2000 (male and female) | EVK 2000 (male and female) |
| Disability<sup>(1)</sup> | 50% EVK 2000 | 50% EVK 2000 |
| Retirement age limits<sup>(2)</sup> | As defined by the Greek main insurance institution for each employee. | As defined by the Greek main insurance institution for each employee. |
| Turnover<sup>(3)</sup> | 0.00% | 0.00% |

---

(1) Mortality Table: The mortality rate of employees is defined according to EVK 2000 (male and female), which is widely accepted as unbiased.

(2) Turnover Rates: For the purposes of the actuarial study, the turnover rate was estimated based on the Company's historical data, estimated future development and long-term economic trends.

(3) Retirement ages are those provided by primary Greek insurance carrier and depend mainly on sex, class of worker, having incorporated the latest additions to the age limits of Greek Laws 4093/2012 and 4336/2015.

[**Table of Contents**](#toc)

**Sensitivity Analysis**

The sensitivity analysis of defined benefit obligation against changes in principal assumptions is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Effect on liability in financial<br> year 2024** | **Effect on liability in financial<br> year 2024** | **Effect on liability in financial<br> year 2024** |
|  | **Change in<br> assumption by** | **Increase in<br> assumption** | **Decrease in<br> assumption** |
| Discount rate | 0.50% | -9% | +10% |
| Annual salary increase | 0.50% | +6% | -8% |

---

**16. Stockholders' Equity / (Deficit)**

***Shares Authorized***

As of December 31, 2024, the Company had authorized a total of 501,000,000 shares for issuance with 500,000,000 shares designated as common stock, par value $0.0001 per share and 1,000,000 shares designated as preferred stock, par value $0.0001 per share.

***Common Stock***

On February 6, 2023, 2,958 shares of common stock were issued in connection with the Company's 2021 Equity Incentive Plan (the "Plan").

On February 8, 2023, 13,448 shares of common stock were issued in connection with the Plan.

On March 23, 2023, 1,687 shares of common stock were issued in connection with the Plan.

On March 24, 2023, 38 shares of common stock were issued in connection with the Plan.

On June 12, 2023, 4,301 shares of common stock were issued in connection with the Plan.

On July 7, 2023, 2,151 shares of common stock were issued in connection with the Plan.

On July 26, 2023, 1,875 shares of common stock were issued in connection with the Plan.

On September 8, 2023, 5,200 shares of common stock were issued in connection with the Plan.

On October 12, 2023, 226 shares of common stock were issued in connection with the Plan.

From April 12, 2023 through September 12, 2023, 314,696 shares of common stock were issued in connection with the Purchase Agreement with Lincoln Park.

From October 25, 2023 through December 26, 2023, 176,323 shares of common stock were issued in connection with the At the Market Offering with H.C. Wainwright & Co., LLC.

[**Table of Contents**](#toc)

On December 27, 2023, 333,333 shares of common stock were issued in a Registered Direct Offering.

From February 2, 2024, through March 28, 2024, 24,976 shares of common stock were issued in connection with the At the Market Offering with H.C. Wainwright & Co., LLC for net proceeds of $0.1 million.

From April 1, 2024, through April 15, 2024, 31,751 shares of common stock were issued in connection with the At the Market Offering with H.C. Wainwright & Co., LLC for net proceeds of $0.2 million.

As of December 31, 2024, and December 31, 2023, there were 2,636,508 and 2,580,159 shares of issued and outstanding common stock with a par value of $0.0001 per share, respectively.

***Reverse Stock Split***

On April 29, 2024 and April 30, 2024, our stockholders and Board, respectively, approved a reverse stock split of our Common Stock, at a ratio of 1-for-30 (the "Reverse Stock Split"), as of the Effective Date. The Effective Date of the Reverse Stock Split with the Secretary of the Commonwealth of Massachusetts was 5:00 p.m. on May 13, 2024 and May 14, 2024 in the marketplace.

On the Effective Date, the total number of shares of our Common Stock held by each shareholder was converted automatically into the number of whole shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by such shareholder immediately prior to the Reverse Stock Split, divided by (ii) 30.

No fractional shares were issued in connection with the Reverse Stock Split, and stockholders who would otherwise be entitled to a fractional share received a proportional cash payment, resulting in the reduction of 378 shares. The Reverse Stock Split did not have any effect on the stated par value of the Company's Common Stock. The rights and privileges of the holders of shares of Common Stock will be unaffected by the Reverse Stock Split.

The Company is authorized to issue 501,000,000 shares of Common Stock and that number did not change as a result of the Reverse Stock Split.

The consolidated financial statements and footnote disclosures have been updated to reflect the retrospective effect of the reverse stock split for all periods presented.

***Purchase Agreement with Lincoln Park***

On April 10, 2023, the Company entered into the Purchase Agreement with Lincoln Park, which provides that the Company has the right, but not the obligation, to sell to Lincoln Park up to $50 million worth of shares of the Company's Common Stock ("Purchase Shares") from time to time over the 36-month term of the Purchase Agreement. Concurrently with entering into the Purchase Agreement, the Company also entered into a registration rights agreement with Lincoln Park, pursuant to which the Company agreed to register the resale of the shares of the Company's Common Stock that have been and may be issued to Lincoln Park under the Purchase Agreement pursuant to a registration statement. The Company will control the timing and amount of any sales of Purchase Shares to Lincoln Park pursuant to the Purchase Agreement.

Under the Purchase Agreement, on any business day selected by the Company, the Company may direct Lincoln Park to purchase up to 6,667 shares of its Common Stock on such business day (or the purchase date) (a "Regular Purchase"), provided that the closing sale price of the Company's Common Stock on the Nasdaq Stock Market ("Nasdaq") on the applicable purchase date is not below $15.00 and subject to other adjustments. A Regular Purchase may be increased to up to (i) 8,333 shares if the closing sale price of the Company's Common Stock on Nasdaq is not below $45.00 on the applicable purchase date; (ii) 10,000 shares if the closing sale price of the Company's Common Stock on Nasdaq is not below $90.00 on the applicable purchase date; and (iii) 13,333 shares if the closing sale price of the Company's common stock on Nasdaq is not below $150.00 on the applicable purchase date. The Company may direct Lincoln Park to purchase shares in Regular Purchases multiple times on the same business day, provided the Company has not failed to deliver Purchase Shares for the most recent prior Regular Purchase.

The purchase price per share for each such Regular Purchase will be equal to the lesser of (a) the lowest sale price for the Company's Common Stock on Nasdaq on the purchase date of such shares; and (b) the average of the three lowest closing sale prices for the Company's Common Stock on Nasdaq during the 10 consecutive business days prior to the purchase date of such shares.

[**Table of Contents**](#toc)

In addition, the Company may also direct Lincoln Park, on any business day on which the Company has submitted a Regular Purchase notice for the maximum amount allowed for such Regular Purchase, to purchase an additional amount of the Company's Common Stock (an "Accelerated Purchase") of up to the lesser of (a) three times the number of shares purchased pursuant to such Regular Purchase; and (b) 30% of the aggregate shares of the Company's Common Stock traded on Nasdaq during all or, if certain trading volume or market price thresholds specified in the Purchase Agreement are crossed on the applicable Accelerated Purchase date, the portion of the normal trading hours on the applicable Accelerated Purchase date prior to such time that any one of such thresholds is crossed (the "Accelerated Purchase Measurement Period").

The purchase price per share for each such Accelerated Purchase will be equal to 95% of the lower of (a) the volume-weighted average price of the Company's Common Stock on Nasdaq during the applicable Accelerated Purchase Measurement Period on the applicable Accelerated Purchase date; and (b) the closing sale price of the Company's Common Stock on Nasdaq on the applicable Accelerated Purchase date.

The Company may also direct Lincoln Park on any business day on which an Accelerated Purchase has been completed and all of the shares to be purchased thereunder have been delivered to Lincoln Park in accordance with the Purchase Agreement, to purchase an additional amount of the Company's Common Stock (the "Additional Accelerated Purchase"), as described in the Purchase Agreement.

In the case of Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, the purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the business days used to compute the purchase price.

The Purchase Agreement prohibits the Company from directing Lincoln Park to purchase any shares of Common Stock if those shares, when aggregated with all other shares of Common Stock then beneficially owned by Lincoln Park and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder), would result in Lincoln Park and its affiliates beneficially owning more than 9.99% of the then total outstanding shares of the Company's Common Stock.

Upon the execution of the Purchase Agreement, the Company issued 21,186 shares of Common Stock to Lincoln Park as consideration for its commitment to purchase shares of the Company's Common Stock under the Purchase Agreement. Lincoln Park has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company's Common Stock.

The Company evaluated the contract that includes the right to require Lincoln Park to purchase additional shares of Common Stock in the future ("put right") considering the guidance in ASC 815-40, "Derivatives and Hedging - Contracts on an Entity's Own Equity" ("ASC 815-40") and concluded that it is an equity-linked contract that does not qualify for equity classification, and therefore requires fair value accounting. The Company has analyzed the terms of the put right and has concluded that it has immaterial value as of December 31, 2024 and December 31, 2023.

During the year ended December 31, 2023, the Company incurred costs of approximately $0.9 million related to the execution of the Purchase Agreement. Of the total costs incurred, approximately $0.6 million was paid in Common Stock to Lincoln Park as a commitment fee and $0.03 million to reimburse Lincoln Park for expenses. These transaction costs were included in other income / (expenses), net in the consolidated statement of operations. Approximately $0.2 million was incurred for legal fees, which were included in administrative and selling expenses on the consolidated statement of operations.

During the year ended December 31, 2023, the Company issued and sold an aggregate of 293,509 shares pursuant to the Purchase Agreement and received net proceeds of $5.5 million. During the year ended December 31, 2023, the Company incurred approximately $0.3 million of expenses, related to the discount on the issuance of common stock to Lincoln Park, which is included in other income / (expenses), net in the consolidated statement of operations.

As the Company's common stock price is below $15.00 per share, the Company is unable to utilize the facility and did not transact under it for the year ended December 31, 2024.

[**Table of Contents**](#toc)

***At the Market Offering Agreement***

On June 2, 2023, the Company entered into an At The Market Offering Agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC, as sales agent (the "Agent"), to create an at-the-market equity program under which it may sell up to $50 million of shares of the Company's common stock (the "Shares") from time to time through the Agent (the "ATM Offering"). Under the ATM Agreement, the Agent will be entitled to a commission at a fixed rate of 3.0% of the gross proceeds from each sale of Shares under the ATM Agreement.

Sales of the Shares, if any, under the ATM Agreement may be made in transactions that are deemed to be "at-the-market equity offerings" as defined in Rule 415 under the Securities Act, including sales made by means of ordinary brokers' transactions, including on the Nasdaq Capital Market, at prevailing market prices at the time of sale or as otherwise agreed with the Agent. The Company has no obligation to sell, and the Agent is not obligated to buy or sell, any of the Shares under the Agreement and may at any time suspend offers under the Agreement or terminate the Agreement. The ATM Offering will terminate upon the termination of the ATM Agreement as permitted therein. The Shares will be issued pursuant to the Company's previously filed Registration Statement on Form S-3 (File No. 333-271389) that was declared effective on May 2, 2023, and a prospectus supplement and accompanying prospectus relating to the ATM Offering filed with the SEC on June 2, 2023.

Deferred offering costs associated with the ATM Agreement are reclassified to additional paid in capital on a pro-rata basis when the Company completes offerings under the ATM Agreement. Any remaining deferred costs will be expensed to the statements of operations should the planned offering be terminated.

During the year ended December 31, 2023, the Company issued and sold an aggregate of 176,323 shares of common stock under the ATM Offering.

During the year ended December 31, 2024, the Company issued and sold an aggregate of 56,727 shares of common stock under the ATM Offering.

***Registered Direct Offering and Engagement Letter with Joseph Gunnar & Co., LLC***

On December 22, 2023, the Company entered into a Securities Purchase Agreement (the "Gunnar Purchase Agreement") with those certain purchasers named therein (the "Purchasers") pursuant to which the Company agreed to issue and sell, in a public offering, directly to the Purchasers (the "Registered Direct Offering"), 333,333 shares of common stock. The purchase price per share of Common Stock was $6.00, resulting in gross proceeds of $2,000,000 and net proceeds of approximately $1.8 million, after deducting estimated expenses payable by the Company associated with the Registered Direct Offering.

On December 22, 2023, the Company entered into an engagement letter with Gunnar, pursuant to which Gunnar agreed to serve as the exclusive placement agent for the Company, on a reasonable best-efforts basis, in connection with the Registered Direct Offering. The Company paid Gunnar an aggregate cash fee equal to 9.0% of the gross proceeds of the Registered Direct Offering, and agreed to reimburse Gunnar up to a total of $25,000 for actual fees and expenses of legal counsel and other out-of-pocket expenses.

***Public Warrants***

In connection with the Business Combination, the Company assumed the Public Warrants issued upon AMCI's initial public offering.

As of December 31, 2024, the Company had 735,069 Public Warrants outstanding. Each Public Warrant entitles the registered holder to purchase one share of common stock at a price of $345.00 per share, subject to adjustment, at any time commencing 30 days after the completion of the Business Combination. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. During the second quarter of 2021, certain warrant holders exercised their option to purchase an additional 760 shares at $345.00 per share. These exercises generated $262,177 additional proceeds to the Company and increased the Company's shares outstanding by 760 shares. During 2023, one original Private Warrant Holder sold all their Private Placement Warrants resulting in a reclassification to Public Warrants. Following these exercises, as of December 31, 2024, the Company's Public Warrants amounted to 813,314.

[**Table of Contents**](#toc)

Once the warrants become exercisable, the Company may redeem the Public Warrants:

– in whole and not in part;

at a price of $0.01 per warrant;

– upon not less than 30 days' prior written notice of redemption;

if, and only if, the reported last sale price of the Company's common stock equals or exceeds $540 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders; and

– if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying such warrants.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a "cashless basis," as described in the warrant agreement. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of common stock at a price below its exercise price. In addition, the warrant agreement provides that in case of a tender offer or exchange that involves 50% or more of the Company's stockholders, the Public Warrants may be settled in cash, equity securities or other assets depending on the kind and amount received per share by the holders of the common stock in such consolidation or merger that affirmatively make such election.

The Public Warrants are classified in equity in accordance with the Company's evaluation of the provisions of ASC 480 and ASC 815. The Company analyzed the terms of the Public Warrants and concluded that there are no terms that provide that the warrant is not indexed to the issuer's common stock. The Company also analyzed the tender offer provision discussed above and considering that upon the Closing of the Business Combination the Company has a single class of common shares, concluded that the exception discussed in ASC 815-40-25 applies, and thus equity classification is not precluded.

***Stock-Based Compensation Plans***

***2021 Equity Incentive Plan***

The Company's Board of Directors and shareholders previously approved the Plan to reward certain employees and directors of the Company. The Plan has been established to advance the interests of the Company by providing for the grant to Participants of Stock and Stock-based Awards. The maximum number of shares of Common Stock that may be delivered in satisfaction of Awards under the Plan is 569,306 shares. On April 29, 2024, the stockholders voted to increase the number of shares of Common Stock issuable under the Company's 2021 Equity Incentive Plan from 230,530 to 569,306.

***Stock Options***

Pursuant to and subject to the terms of the Plan the Company entered into separate Stock Option Agreements with each participant according to which each participant is granted an option (the "Stock Option") to purchase up to a specific number of shares of common stock set forth in each agreement with an exercise price equal to the market price of Company's common stock at the date of grant. The Company did not grant Stock Options during the years ended December 31, 2024 and December 31, 2023.

[**Table of Contents**](#toc)

The Stock Options are granted to each participant in connection with their employment with the Company. The Stock Options vest on a graded basis over four years. The Company has a policy of recognizing compensation cost on a straight-line basis over the total requisite service period for the stock options. The Company recognized compensation cost of $1.6 million and $3.3 million in respect of Stock Options granted, which is included in administrative and selling expenses in the consolidated statement of operations for the years ended December 31, 2024 and 2023, respectively. The Company also has a policy of accounting for forfeitures when they occur.

The following table summarizes the activities for the Company's unvested stock options for the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br> options** | **Weighted Average<br> Exercise Price** | **Weighted Average<br> Remaining<br> Vesting Period** | **Aggregate<br> Intrinsic<br> Value<sup>(1)</sup>** |
| **Unvested as of December 31, 2023** | **57894** | $**214.20** |  |  |
| Granted |  |  |  |  |
| Vested | (22240) | $251.36 |  |  |
| Forfeited | (25327) | $182.63 |  |  |
| **Unvested as of December 31, 2024** | **10327** | $**212.02** | **0.50 years** | $**-** |

---

(1) The aggregate intrinsic value is calculated as the difference between the closing market price of $5.00 per share of the Company's common stock on December 31, 2024 and the exercise price, times the number of stock options where the closing stock price is greater than the exercise price that would have been received by the option holders had all option holders exercised their options on that date.

As of December 31, 2024, there was $0.4 million of unrecognized compensation cost related to unvested stock options. This amount is expected to be recognized over the remaining vesting period of stock options.

***Restricted Stock Units***

Pursuant to and subject to the terms of the Plan the Company entered into separate Restricted Stock Units ("RSUs") with each participant. On the grant date of RSUs, the Company grants to each participant a specific number of RSUs as set forth in each agreement, giving each participant the conditional right to receive without payment one share of common stock. The RSUs are granted to each participant in connection with their ongoing employment with the Company. The Company has in place Restricted Stock Unit Agreements that vest within one year and Restricted Stock Unit Agreements that vest on a graded basis over four years. The Company has a policy of recognizing compensation cost on a straight-line basis over the total requisite service period. The Company recognized compensation cost of $3.2 million and $6.6 million in respect of RSUs, which is included in administrative and selling expenses in the consolidated statement of operations for the years ended December 31, 2024 and 2023, respectively. The Company also has a policy of accounting for forfeitures when they occur.

Restricted Stock Units have been granted during the year ended December 31, 2024 as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Grant Date<br> Fair Value** |
| Granted on June 26, 2024 | 22988 | $4.50 |
| **Total restricted stock units granted in 2024** | **22988** |  |

---

[**Table of Contents**](#toc)

The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted Average<br> Grant Date<br> Fair Value** | **Weighted Average<br> Remaining<br> Vesting Period** | **Aggregate<br> Intrinsic<br> Value<sup>(1)</sup>** |
| **Unvested as of December 31, 2023** | 67894 | $**200.1** |  |  |
| Granted | 22988 | $4.50 |  |  |
| Vested | (52728) | $114.28 |  |  |
| Forfeited | (27827) | $191.21 |  |  |
| **Unvested as of December 31, 2024** | 10327 | $**245.33** | **0.5 years** | $**51635** |

---

(1) The aggregate intrinsic value is calculated based on the fair value of $5.00 per share of the Company's common stock on December 31, 2024 due to the fact that the restricted stock units carry a $0 purchase price.

As of December 31, 2024, there was $0.6 million of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over the remaining vesting period of Restricted Stock Unit Agreements.

***Accumulated Other Comprehensive Loss***

Other comprehensive income (loss) is defined as other changes in stockholders' equity that do not represent transactions with stockholders or in the Company's stock. Changes in accumulated other comprehensive loss were as follows:

---

| | | | |
|:---|:---|:---|:---|
| (Amounts in thousands) | **Accumulated<br> Foreign Currency Translation<br> Adjustments** | **Accumulated<br> Actuarial<br> Gains / (Losses)** | **Total Accumulated<br> Other Comprehensive<br> Income (Loss)** |
| **Balance as of December 31, 2022** | $**(2587)** | $**(17)** | $**(2604)** |
| Other comprehensive (loss) from continuing operations | (125) | 15 | (110) |
| Other comprehensive (loss) from discontinued operations | 380 | - | 380 |
| **Balance as of December 31, 2023** | $**(2332)** | $**(2)** | $**(2334)** |
| Other comprehensive (loss) from continuing operations | 658 |  | 658 |
| Other comprehensive (loss) from discontinued operations | 1519 | - | 1519 |
| **Balance as of December 31, 2024** | $**(155)** | $**(2)** | $**(157)** |

---

[**Table of Contents**](#toc)

**17. Revenue**

Revenue is analyzed as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| Sales of goods | $199 | $918 |
| Sales of services | 3077 | 618 |
| **Total revenue from contracts with customers** | $**3276** | $**1536** |

---

The timing of revenue recognition is analyzed as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| **Timing of revenue recognition** |  |  |
| Revenue recognized at a point in time | $526 | $918 |
| Revenue recognized over time | 2750 | 618 |
| **Total revenue from contracts with customers** | $**3276** | $**1536** |

---

As of December 31, 2024 and 2023, Advent recognized contract assets of $623 thousand and $9 thousand, respectively, on the consolidated balance sheets.

As of December 31, 2024 and 2023, Advent recognized contract liabilities of $3.2 million and $0.4 million, respectively, in the consolidated balance sheets. During the years ended December 31, 2024 and 2023, the Company recognized the amount of $0.1 million and $0.1 million in revenues.

**18. Collaborative Arrangements**

***Cooperative Research and Development Agreement***

In August 2020, the Company entered into a Cooperative Research and Development Agreement ("CRADA") with Triad National Security, LLC ("TRIAD"), Alliance for Sustainable Energy LLC ("ASE"), and Brookhaven Science Associates ("BSA"). The purpose of this project is to build a fuel cell prototype that moves this technology closer to commercial readiness which was sanctioned by the Los Alamos National Laboratory and the National Renewable Energy Laboratory. The Government's estimated total contribution, which is provided through TRIAD's, ASE's, and BSA's respective contracts with the Department of Energy is $1.2 million, subject to available funding. As a part of the CRADA, the Company is required to contribute $1.2 million in cash and $0.6 million of in-kind contributions, such as personnel salaries. The cash payments are capitalized and amortized on a straight-line basis over the life of the contract. In-kind contributions are expensed as incurred. To date, the Company has not recognized any revenue from the CRADA. In December 2022, the term of the agreement was extended until March 3, 2024. In January 2024, the term of the agreement was extended until September 3, 2024.

***Expenses from Collaborative Arrangements***

For the years ended December 31, 2024 and 2023 an amount of $0.1 million and $1.6 million, respectively, has been recognized in research and development expenses line on the consolidated statements of operations.

[**Table of Contents**](#toc)

**19. Convertible Bond Loan**

On May 25, 2022, Advent SA and UNIFUND entered into an agreement to finance Cyrus with a convertible Bond Loan of €1.0 million. As a part of this transaction, Advent SA offered €0.3 million in bond loans with an annual interest rate of 8%. The term of the loan is three years and there is a surcharge of 2.5% for overdue interest.

Cyrus business relates to the research and experimental development in natural sciences and mechanics, the construction of pumps and hydrogen compressors and the wholesale of compressors. Hydrogen compressors are critical part of the Hydrogen Refueling Stations (HRS) to be used by transport applications. Cyrus has developed a prototype Metal Hydride Compressor which offers unique advantages. The proceeds from the Bond Loan are to cover Cyrus's working capital needs in the context of its operation and the product development.

Mandatory conversion of the Bond Loan will occur in the event of qualified financing which is equivalent to a share capital increase by Cyrus in the first three years from the execution of the Bond Loan agreement with a total amount over €3 million which is covered by third parties unrelated to the basic shareholders or by investors related to them.

The Company continues to fully reserve the Bond Loan as of December 31, 2024.

**20. Income Taxes**

The components of loss before income taxes for the years ended December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| Domestic | $(26816) | $(35233) |
| Foreign | (3253) | (15751) |
| &nbsp;&nbsp;&nbsp;**Total loss before income taxes** | $**(30069)** | $**(50984)** |

---

The components of income tax provision (benefit) for the years ended December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| **Federal:** |  |  |
| &nbsp;&nbsp;&nbsp;Current | $(55) | $(52) |
| &nbsp;&nbsp;&nbsp;Deferred | - | - |
| **Total federal income tax (benefit) provision** | **(55)** | **(52)** |
| **State:** |  |  |
| &nbsp;&nbsp;&nbsp;Current |  | (30) |
| &nbsp;&nbsp;&nbsp;Deferred | - | - |
| **Total state income tax (benefit) provision** | **-** | **(30)** |
| **International (Non-US):** |  |  |
| &nbsp;&nbsp;&nbsp;Current |  |  |
| &nbsp;&nbsp;&nbsp;Deferred | - | - |
| **Total international income tax (benefit) provision** | **-** | **-** |
| **Total income tax (benefit) provision** | $**(55)** | $**(82)** |

---

[**Table of Contents**](#toc)

Income tax (benefit) provision differs from the amount that would be provided by applying the statutory U.S. corporate income tax rate of 21% for the years ended December 31, 2024 and 2023 due to the following items:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| Current tax at U.S. statutory rate | $(6315) | $(10707) |
| Effect of state tax | (1636) | (1132) |
| Effect of valuation allowance | 8963 | 13450 |
| Warranty Liability | (12) | (83) |
| Effect of non-US income tax rates | (288) | (4100) |
| Impairment | (875) | 1073 |
| Stock compensation | 199 | 1677 |
| Other, net | (91) | (260) |
| **Total income tax (benefit) provision** | $**(55)** | $**(82)** |

---

Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company's assets and liabilities at the applicable tax rates in effect. The principal components of Company's deferred tax assets (liabilities) as of December 31, 2024, and 2023 include the following:

---

| | | |
|:---|:---|:---|
| (Amounts in thousands) | **December 31,<br> 2024** | **December 31,<br> 2023** |
| **Deferred Tax Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $31425 | $26759 |
| &nbsp;&nbsp;&nbsp;Capital loss | 12345 |  |
| &nbsp;&nbsp;&nbsp;Reserves and accruals | 1348 | 1126 |
| &nbsp;&nbsp;&nbsp;Stock compensation | 3496 | 1423 |
| &nbsp;&nbsp;&nbsp;Lease Liability | 71 | 2511 |
| &nbsp;&nbsp;&nbsp;Sec 174 Cap | 1714 | 1823 |
| &nbsp;&nbsp;&nbsp;Intangibles | 1013 | 1073 |
| &nbsp;&nbsp;&nbsp;Other | 2875 | 1137 |
| **Total deferred tax assets before valuation allowance** | $**54287** | $**35852** |
| &nbsp;&nbsp;&nbsp;Less: Valuation Allowance | (53944) | (32654) |
| **Total deferred tax assets, net of valuation allowance** | $**343** | $**3198** |
| **Deferred Tax Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Fixed assets | (296) | (300) |
| &nbsp;&nbsp;&nbsp;Lease ROA | (47) | (2898) |
| &nbsp;&nbsp;&nbsp;Intangibles |  |  |
| &nbsp;&nbsp;&nbsp;Other |  | - |
| **Total deferred tax liabilities** | $**(343)** | $**(3198)** |
| **Net deferred tax assets/(liabilities)** | $**-** | $**-** |

---

[**Table of Contents**](#toc)

A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The Company provides a valuation allowance to offset deferred tax assets for net operating losses incurred during the year and for other deferred tax assets where, in the Company's opinion, it is more likely than not that the financial statement benefit of these losses will not be realized. The Company's valuation allowance increased by approximately $21.3 million during the year ended December 31, 2024 mainly due to net operating losses generated during the period.

As of December 31, 2024, the Company had U.S. federal and state net operating loss carryforwards of $78.4 million and $70.3 million, respectively, which may be used to offset future taxable income, if any. As of December 31, 2023, the Company had U.S. federal and state net operating loss carryforwards of $64.9 million and $56.8 million, respectively, which may be used to offset future taxable income, if any. The Company's U.S. federal and state net operating loss carryforwards begin to expire in 2033 and the U.S. federal net operating losses generated in 2018- 2022 can be carried forward indefinitely. As of December 31, 2024, the Company had U.S. federal and state credit carryforwards of $0.7 million and $0.2 million, respectively, which may be used to offset future taxable income, if any. The Company's U.S. federal and state credit carryforwards begin to expire in 2043. The Company's ability to utilize these net operating loss carryforwards and tax credit carryforwards may be limited in the future if the Company experiences an ownership change pursuant to Internal Revenue Code Section 382 and 383. An ownership change occurs when the ownership percentages of 5% or greater stockholders change by more than 50% over a three-year period.

The Company also has net operating loss carryforwards in Greece of approximately $14.0 million that begin to expire in 2026 and in Germany of approximately $25.5 million that can be carried forward indefinitely.

The Company's policy is to classify interest and penalties, if any, as components of the income tax provision in the consolidated statement of operations. The Company has not recorded any interest or penalty in the consolidated statement of operations for the years ended December 31, 2024 and 2023. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments, and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. However, based on the uncertainties associated with finalizing audits with the relevant tax authorities including formal legal proceedings, it is not possible to reasonably estimate the impact of any such change. The provision for unaudited tax years as of December 31, 2024 and December 31, 2023 amounted to approximately $0.2 million, relating to possible tax liabilities which may arise from potential future examination for the tax years 2017, 2018 and 2019 by the Greek Independent Tax Authority.

The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course, the Company is subject to examinations by taxing authorities throughout the world. The material jurisdictions in which the Company is subject to potential examination include the United States, Germany and Greece. The Company's 2018 and subsequent tax years remain open to examination by the German Federal Central Tax Office and the Company's 2017 and subsequent tax years remain open to examination by the Greek Independent Authority for Public Revenue. Carryforward attributes that were generated prior to tax years mentioned may still be adjusted upon examination by certain jurisdiction tax authorities if they either have been, or will be, utilized in a future period.

The Company's foreign subsidiaries have incurred losses since inception and the Company has no undistributed earnings as of December 31, 2024.

[**Table of Contents**](#toc)

**21. Segment Reporting and Information about Geographical Areas**

**Reportable Segments**

The Company develops and manufactures high-temperature proton exchange membranes ("HT-PEM" or "HT-PEMs") and fuel cell systems for the off-grid and portable power markets and plans to expand into the mobility market. The Company's current revenue is derived from the sale of fuel cell systems and from the sale of MEAs, membranes, and electrodes for specific applications in the fuel cell and energy storage (flow battery) markets. The research and development activities are viewed as another product line that contributes to the development, design, production and sale of fuel cell products; however, it is not considered a separate operating segment. The Company has identified one business segment.

As a single reportable segment entity, the determined measure of profit or loss is the Company's consolidated net income (loss). Consolidated asset information for the Company's single reportable segment is presented in the Company's consolidated balance sheets.

The table below is a summary of the segment net loss from continuing operations before income taxes, including significant segment expenses:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| Revenue, net | $3276 | $1536 |
| Cost of revenues | (1488) | (6964) |
| **Gross profit (loss)** | **1788** | **(5428)** |
| &nbsp;&nbsp;&nbsp;Income from grants | 887 | 1582 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (3225) | (7567) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (14318) | (28825) |
| &nbsp;&nbsp;&nbsp;Sublease income | 145 | 543 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | (29) | (207) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (3617) | (1048) |
| &nbsp;&nbsp;&nbsp;Impairment losses | - | (9763) |
| **Operating loss** | **(18369)** | **(50713)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability | 59 | 394 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (535) | 104 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | (272) | 101 |
| &nbsp;&nbsp;&nbsp;Loss Contingency | (4724) |  |
| &nbsp;&nbsp;&nbsp;Net gains/ (losses) on disposal/write-offs of property, plant and equipment and intangible assets | (6235) |  |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | 7 | (870) |
| **Segment and consolidated net loss before income taxes** | **(30069)** | **(50984)** |

---

**Geographic Information**

The following table presents revenues, by geographic location (based on the location of the entity selling the product or service) for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands) | **2024** | **2023** |
| North America | $3101 | $1268 |
| Europe | 175 | 268 |
| **Total net sales** | $**3276** | $**1536** |

---

[**Table of Contents**](#toc)

**22. Commitments and contingencies:**

**Litigation**

The Company is subject to legal and regulatory actions that arise from time to time in the ordinary course of business. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves significant judgment about future events.

There is no material pending or threatened litigation against the Company that remains outstanding as of December 31, 2024, that is considered probable or reasonably possible, with the following exceptions:

On May 9, 2025, Chris Kaskavelis ("Kaskavelis"), a former employee of Advent SA, filed a claim against the Company's wholly owned subsidiary in Greece, Advent SA, before the Athens First Instance Court (LABOR CLAIMS). A hearing is on the claim is scheduled for October 20, 2025. In connection with the claim, Kaskavelis alleges that Advent should pay him the following amounts: (1) €107,194.90 for unpaid wages, (2) €612,206.40 for unpaid severance, (3) €50,000 for "moral damages" and (4) related court expenses stemming from the lawsuit. The Company denies the Kaskavelis claims as they are unsubstantiated and without merit as he was terminated by the Company for cause per the terms of his employment agreement. Notwithstanding the same, and as a contingency, the Company has accrued for the unpaid wages portion of his claim in the amount of €107,194.90 ($124,000). The Company believes that the remainder of the Kaskavelis claims are wholly without merit and intends to defend itself vigorously in these proceedings, although we cannot accurately predict the ultimate outcome of this matter.

On August 16, 2024, the Company was informed that an arbitration decision and award was decided in favor of F.E.R. fischer Edelstahlrohre GmbH ("F.E.R."), pursuant to the arbitration provisions of the Share Purchase Agreement dated June 25, 2021, whereby the Company acquired SerEnergy and FES on August 31, 2021. The arbitration was held in Frankfurt am Main, Germany in accordance with the Arbitration Rules of the German Arbitration Institute. The award in favor of F.E.R. is in the amount of approximately €4.5 million euro. The Company appealed the decision and instructed its counsel to file a motion with the Higher Regional Court of Frankfurt to set aside the arbitral award. In February 2025, the parties met to discuss the possibility of a settlement and the framework for such a settlement, and on July 1, 2025, the parties entered into a settlement agreement, pursuant to which the Company has agreed to pay F.E.R. €5,366,625.55 with such payment to be made in installments beginning on September 1, 2025. The Company will be entitled to a reduced settlement amount totaling €4,366,625.55 if payment is made by no later than June 30, 2026. In exchange for such reduced settlement amount, both parties agreed to a mutual release of claims against the other party.

By letter dated September 14, 2023, a purported shareholder of the Company made a demand to inspect the Company's books and records pursuant 8 Del. C. § 220 ("Demand"). The Demand purported to request access to books and records of the Company and its predecessor, AMCI Acquisition Corp. ("AMCI"), to investigate possible alleged breaches of fiduciary duty by AMCI's board of directors and officers in connection with its merger with the Company on February 4, 2021. As of May 24, 2024, the purported shareholder entered into a tolling agreement with the Company and the former directors of AMCI that tolled all claims for the period January 29, 2024 through June 30, 2024. On June 5, 2024, the purported shareholder filed a putative class action complaint ("Complaint") on behalf of in the Delaware Court of Chancery alleging claims of breach of fiduciary duty and unjust enrichment in connection with the SPAC transaction against former officers and directors of AMCI. The Company is not named as a defendant in the Complaint. The Company is not aware as to whether the Complaint has been served on the defendants.

**Guarantee letters** 

The Company had contingent liabilities in relation to performance guarantee letters and other guarantees provided to third parties that arise from its normal business activity and from which no substantial charges are expected to arise. As of December 31, 2024, and 2023, the Company did not hold any letters of guarantee.

[**Table of Contents**](#toc)

**Contractual obligations**

In December 2021, the Company entered into a supply agreement by and among the Company, in its capacity as Customer, and BASF New Business GmbH, in its capacity as Seller. The supply agreement provides for the purchase by the Company of 21,000m2 (Minimum Quantity) of membrane from BASF during the contract duration from January 1, 2022 until December 31, 2025. The Company has not purchased any additional quantities in 2024 under this agreement and on July 12, 2024, has formally requested to terminate the supply contract. On March 11, 2025, the parties agreed to terminate the agreement. The Company will return 473 sqm of membrane (stored at BASF) and 4,000 sqm of membrane from its facility in Patras, Greece to BASF by December 15, 2025. BASF will agree to waive payment of €608,412. The Company agrees to pay unpaid license fees in the amount of €44,759 by April 30, 2025. BASF will no longer require the Company to purchase 14,000 m2 quantity.

In May 2022, the Company entered into a supply agreement by and among the Company, in its capacity as Customer, and De Nora Deutschland GmbH ("De Nora"), in its capacity as Seller. The supply agreement provides for the purchase by the Company of 3,236 (Minimum Quantity) of electrodes from De Nora during the contract duration from May 3, 2022 until June 24, 2023. As of December 31, 2024, the Company has no remaining obligations under this agreement.

In June 2022, the Company entered into a supply agreement by and among the Company, in its capacity as Customer, and Shin-Etsu Polymer Singapore Pte, Ltd ("Shin-Etsu"), in its capacity as Seller. The supply agreement provides for the purchase by the Company of 318,400 pieces (Minimum Quantity) of bipolar plates from Shin-Etsu during the contract duration from June 1, 2022 until June 30, 2024. In May 2023, the Company amended the supply agreement with Shin-Etsu to reduce the Minimum Quantity of bipolar plates to 75,400 pieces. In January 2024, the Company amended the supply agreement with Shin-Etsu to shift the timing of the monthly minimum requirements and extend the agreement until September 2024. The Company has not made any purchases under the amended agreement in 2024, the contract is currently on hold pending negotiations with Shin Etsu. Under the contract, Shin- Etsu can claim Advent to buy the remaining purchase requirement of 57,600 pieces with the agreed purchases by the end of September 2024.

**23. Net income / (loss) per share**

Net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the year.

The following table sets forth the computation of the basic and diluted net income / (loss) per share for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>(Amounts in thousands, except share and per share amounts) | **2024** | **2023** |
| **Numerator:** |  |  |
| Net loss from continuing operations | $(30014) | $(50902) |
| Net loss from discontinued operations | $(10980) | $(20495) |
| **Net loss** | $**(40994)** | $**(71397)** |
| **Denominator:** |  |  |
| Basic weighted average number of shares | 2618857 | 1917179 |
| Diluted weighted average number of shares | 2618857 | 1917179 |
| **Net loss per share:** |  |  |
| &nbsp;&nbsp;&nbsp;Basic loss per share from continuing operations | $(11.46) | $(26.55) |
| &nbsp;&nbsp;&nbsp;Basic loss per share from discontinued operations | $(4.19) | $(10.69) |
| &nbsp;&nbsp;&nbsp;**Basic loss per share** | $**(15.65)** | $**(37.24)** |
| &nbsp;&nbsp;&nbsp;Diluted loss per share from continuing operations | $(11.46) | $(26.55) |
| &nbsp;&nbsp;&nbsp;Diluted loss per share from discontinued operations | $(4.19) | $(10.69) |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share** | $**(15.65)** | $**(37.24)** |

---

[**Table of Contents**](#toc)

Basic net income / (loss) per share is computed by dividing net income / (loss) for the periods presented by the weighted-average number of common shares outstanding during these periods.

Diluted net income /(loss) per share is computed by dividing the net income / (loss), by the weighted average number of common shares outstanding for the periods, adjusted for the dilutive effect of shares of common stock equivalents resulting from the assumed exercise of the Public Warrants, Private Placements Warrants, Working Capital Warrants, Stock Options and Restricted Stock Units. The treasury stock method was used to calculate the potential dilutive effect of these common stock equivalents.

As the Company incurred losses for the years ended December 31, 2024 and 2023, the effect of including any potential common shares in the denominator of diluted per-share computations would have been anti-dilutive; therefore, basic and diluted losses per share are the same.

**24. Discontinued Operations**

The assets and liabilities associated with discontinued operations were as follows for December 31, 2024, and December 31, 2023:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2024** | **December 31,<br>2023** |
| **ASSETS OF DISCONTINUED OPERATIONS** |  |  |
| **Current assets of discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $- | $362 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net |  | 128 |
| &nbsp;&nbsp;&nbsp;Contract assets |  | 12 |
| &nbsp;&nbsp;&nbsp;Inventories |  | 2512 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and Other current assets | - | 1416 |
| **Total current assets of discontinued operations** | **-** | **4430** |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net |  | 716 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets |  | 59 |
| &nbsp;&nbsp;&nbsp;Other non-current assets | - | 66 |
| **Total non-current assets of discontinued operations** | **-** | **841** |
| **Total assets of discontinued operations** | $**-** | $**5271** |
| **LIABILITIES OF DISCONTINUED OPERATIONS** |  |  |
| **Current liabilities of discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade and other payables | $- | $1091 |
| &nbsp;&nbsp;&nbsp;Deferred income from grants, current |  | 7 |
| &nbsp;&nbsp;&nbsp;Contract liabilities |  | 1601 |
| &nbsp;&nbsp;&nbsp;Other current liabilities |  | 881 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | - | 48 |
| **Total current liabilities of discontinued operations** | **-** | **3628** |
| **Non-current liabilities of discontinued operations:** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term operating lease liabilities |  | 12 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | - | 683 |
| **Total non-current liabilities of discontinued operations** | **-** | **695** |
| **Total liabilities of discontinued operations** | $**-** | $**4323** |

---

[**Table of Contents**](#toc)

The following table summarizes the Company's loss from discontinued operations for the years ended December 31, 2024, and December 31, 2023:

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| Revenue, net | $728 | $3323 |
| Cost of revenues | (716) | (11322) |
| **Gross profit (loss)** | **12** | **(7999)** |
| &nbsp;&nbsp;&nbsp;Income from grants | 310 | 922 |
| &nbsp;&nbsp;&nbsp;Research and development expenses |  | (4546) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (4311) | (3643) |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets |  | (435) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts |  | (222) |
| &nbsp;&nbsp;&nbsp;Impairment losses | 142 | (3705) |
| **Operating loss from discontinued operations** | **(3847)** | **(19628)** |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net |  | (29) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | (1597) | (4) |
| &nbsp;&nbsp;&nbsp;Net gains / (losses) on disposal | (5536) |  |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | - | (33) |
| **Loss before income taxes from discontinued operations** | **(10980)** | **(19694)** |
| &nbsp;&nbsp;&nbsp;Income taxes effect on discontinued operations | - | (801) |
| **Income (loss) from discontinued operations** | **(10980)** | **(20495)** |
| **Other comprehensive income/(loss)** | **(83)** | **380** |
| **Comprehensive loss from discontinued operations** | **(11063)** | **(20115)** |

---

**25. Subsequent Events**

On April 14, 2025, the Company issued 33,778 common shares related to the vesting of restricted stock units issued in connection with its stock compensation program.

On April 15, 2025, the Company entered into a term loan agreement with Agile Capital Funding, LLC as collateral agent, and Agile Lending, LLC, a Virginia limited liability company as "Lead Lender". The Company entered into a term loan for $870 thousand. The Company received net proceeds of $443 thousand, net of fees paid to the lenders of $87 thousand and its outstanding unpaid balance of the term loan dated November 5, 2024 of $340 thousand. The Company is required to make weekly payments of approximately $37 thousand through maturity on December 18, 2025. The effective interest rate is 250.67% per year, assuming all payments are made on time. If the Company fails to make a payment on time the loan will be in default and the Company will be subject to an additional 5.00% default rate. Upon the prepayment of any principal amount, the Company is obligated to pay a prepayment fee comprising make-whole premium payment on account of such principal so paid, which Prepayment Fee shall be equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the Maturity Date.

The loan is collateralized with all of the Company's goods, accounts, equipment, inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, general intangibles (including intellectual property), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other collateral accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all of the Company's books and records relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

[**Table of Contents**](#toc)

**26. Supplemental Quarterly Information (Unaudited)**

The following tables reflect the Company's unaudited condensed consolidated statements of operations for each of the quarterly periods in 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
| <br>(Amounts in USD thousands, except share and per share amounts) | **December 31,<br> 2024** | **September 30,<br> 2024** | **June 30,**<br> **2024** | **March 31,**<br> **2024** |
| Revenue, net | $(244) | $128 | $654 | $2738 |
| Cost of revenues | (592) | (336) | (83) | (477) |
| **Gross profit / (loss)** | **(836)** | **(208)** | **571** | **2261** |
| &nbsp;&nbsp;&nbsp;Income from grants | (512) | 137 | 424 | 838 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (704) | (411) | (695) | (1415) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (7364) | (3135) | 2374 | (6193) |
| &nbsp;&nbsp;&nbsp;Sublease income |  |  |  | 145 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | (26) | (1) | (1) | (1) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | 692 | (4309) | - | - |
| **Operating loss** | **(8750)** | **(7927)** | **2673** | **(4365)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability |  |  |  | 59 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | (235) | (14) | (54) | (232) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | 1565 | (1672) | (156) | (9) |
| &nbsp;&nbsp;&nbsp;Loss contingency | 147 |  | 36 | (4907) |
| &nbsp;&nbsp;&nbsp;Net gains/ (losses) on disposal/write-offs of property, plant and equipment and intangible assets | 6500 |  | (12714) | (21) |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | 3 | (2) | 2 | 4 |
| **Income / (loss) before income taxes** | **(770)** | **(9615)** | **(10213)** | **(9471)** |
| &nbsp;&nbsp;&nbsp;Income taxes | - | - | - | 55 |
| **Income (loss) from continuing operations** | $**(770)** | $**(9615)** | $**(10213)** | $**(9416)** |
| **Income (loss) from discontinued operations** | **(1073)** | **(8907)** | **(1060)** | **60** |
| **Net income / (loss)** | **(1843)** | **(18522)** | **(11273)** | **(9356)** |
| **Net income / (loss) per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from continuing operations** | $**(0.29)** | $**(3.65)** | $**(3.88)** | $**(3.64)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basic weighted average number of shares** | **2636508** | **2636508** | **2634179** | **2584918** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from continuing operations** | $**(0.29)** | $**(3.65)** | $**(3.88)** | $**(3.64)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Diluted weighted average number of shares** | **2636508** | **2636508** | **2634179** | **2584918** |

---

[**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** | **Three Months Ended,** |
| <br>(Amounts in USD thousands, except share and per share amounts) | **December 31,<br> 2023** | **September 30,<br> 2023** | **June 30,**<br> **2023** | **March 31,**<br> **2023** |
| Revenue, net | $1314 | $112 | $21 | $89 |
| Cost of revenues | (5628) | (807) | (183) | (346) |
| **Gross profit / (loss)** | **(4314)** | **(695)** | **(162)** | **(257)** |
| &nbsp;&nbsp;&nbsp;Income from grants | 794 | 242 | 360 | 186 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | (2822) | (1197) | (1774) | (1774) |
| &nbsp;&nbsp;&nbsp;Administrative and selling expenses | (18039) | (8000) | 4932 | (7718) |
| &nbsp;&nbsp;&nbsp;Sublease income | 139 | 139 | 138 | 127 |
| &nbsp;&nbsp;&nbsp;Amortization of intangible assets | 319 | (117) | (188) | (221) |
| &nbsp;&nbsp;&nbsp;Credit loss – customer contracts | (985) | (3) | (60) |  |
| &nbsp;&nbsp;&nbsp;Impairment loss – intangible assets and goodwill | - | - | (9763) | - |
| **Operating loss** | **(24908)** | **(9631)** | **(6517)** | **(9657)** |
| &nbsp;&nbsp;&nbsp;Fair value change of warrant liability | 39 | (134) | 98 | 391 |
| &nbsp;&nbsp;&nbsp;Finance income / (expenses), net | 626 | (72) | (487) | 37 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains / (losses), net | (6) | (22) | 185 | (56) |
| &nbsp;&nbsp;&nbsp;Net gains/ (losses) on disposal/write-offs of property, plant and equipment and intangible assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income / (expenses), net | (1) | (113) | (798) | 42 |
| **Loss before income taxes** | **(24250)** | **(9972)** | **(7519)** | **(9243)** |
| &nbsp;&nbsp;&nbsp;Income taxes | (122) | 81 | 1 | 122 |
| **Net loss from continuing operations** | $**(24372)** | $**(9891)** | $**(7518)** | $**(9121)** |
| **Income (loss) from discontinued operations** | **(1360)** | **(1955)** | **(14313)** | **(2867)** |
| **Net income / (loss)** | **(25732)** | **(11846)** | **(21831)** | **(11988)** |
| **Net loss per share** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Basic loss per share from continuing operations** | $**(11.41)** | $**(4.92)** | $**(4.22)** | $**(5.26)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Basic weighted average number of shares** | **2136840** | **2012382** | **1780574** | **1733439** |
| &nbsp;&nbsp;&nbsp;**Diluted loss per share from continuing operations** | $**(11.41)** | $**(4.92)** | $**(4.22)** | $**(5.26)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Diluted weighted average number of shares** | **2136840** | **2012382** | **1780574** | **1733439** |

---

[**Table of Contents**](#toc)

**Up to 987,036 Shares of Common Stock** 

**ADVENT TECHNOLOGIES HOLDINGS, INC.**

**PROSPECTUS**

**August 27, 2025**