Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. GAAP throughout this press release, the Company has provided non-GAAP financial measures - Adjusted Net Income / (Loss) and Adjusted EBITDA - which present results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors. The Company believes that these non-GAAP financial measures are useful financial metrics to assess its operating performance from period-to- period by excluding certain items that the Company believes are not representative of its core business. These non- GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of the Company’s financial results in accordance with GAAP. The use of the terms Adjusted Net Income / (Loss) and Adjusted EBITDA may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These measures are reconciled from the respective measures under GAAP in the appendix below.

ADVENT TECHNOLOGIES HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in USD thousands, except share and per share amounts)

	As of
	June 30, 2024			December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	682		$	3,562
Restricted cash, current		-			100
Accounts receivable, net		922			191
Contract assets		11			21
Inventories		1,986			2,707
Prepaid expenses and Other current assets		3,314			2,254
Total current assets		6,915			8,835
Non-current assets:
Intangibles, net		76			79
Property and equipment, net		6,734			21,549
Right-of-use assets		341			3,216
Restricted cash, non-current		-			750
Other non-current assets		303			308
Available for sale financial asset		-			-
Total non-current assets		7,454			25,902
Total assets	$	14,369		$	34,737

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade and other payables	$	6,283		$	5,087
Deferred income from grants, current		7			530
Contract liabilities		2,221			2,015
Loss contingency liabilities		5,162			-
Other current liabilities		1,768			1,916
Operating lease liabilities		162			2,186
Income tax payable		176			179
Total current liabilities		15,779			11,913
Non-current liabilities:
Bonds and other long-term debt, net		537			-
Warrant liability		-			59
Long-term operating lease liabilities		170			8,230
Defined benefit obligation		91			83
Deferred income from grants, non-current		-			320
Other long-term liabilities		671			684
Total non-current liabilities		1,469			9,376
Total liabilities		17,248			21,289

Commitments and contingent liabilities

Stockholders’ equity
Common stock ($0.0001 par value per share; Shares authorized: 500,000,000 at June 30, 2024 and December 31, 2023; Issued and outstanding: 2,636,508 and 2,580,159 at June 30, 2024 and December 31, 2023, respectively)		-			-
Preferred stock ($0.0001 par value per share; Shares authorized: 1,000,000 at June 30, 2024 and December 31, 2023; nil issued and outstanding at June 30, 2024 and December 31, 2023)		-			-
Additional paid-in capital		199,265			194,941
Accumulated other comprehensive loss		(2,356	)		(2,334	)
Accumulated deficit		(199,788	)		(179,159	)
Total stockholders’ equity / (deficit)		(2,879	)		13,448
Total liabilities and stockholders’ equity	$	14,369		$	34,737

ADVENT TECHNOLOGIES HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in USD thousands, except share and per share amounts)

	Three months ended June 30, (Unaudited)						Six months ended June 30, (Unaudited)
	2024			2023			2024			2023
Revenue, net	$	805		$	1,112		$	4,256		$	2,089
Cost of revenues		(155	)		(1,905	)		(1,174	)		(3,389	)
Gross loss		650			(793	)		3,082			(1,300	)
Income from grants		677			660			2,114			1,194
Research and development expenses		(3,587	)		(2,883	)		(5,002	)		(6,024	)
Administrative and selling expenses		(6,372	)		(8,331	)		(13,275	)		(16,820	)
Sublease income		-			138			145			265
Amortization of intangibles		(1	)		(188	)		(2	)		(409	)
Credit loss – customer contracts		-			(127	)		-			(127	)
Impairment losses		-			(9,763	)		-			(9,763	)
Operating loss		(8,633	)		(21,287	)		(12,938	)		(32,984	)
Fair value change of warrant liability		-			99			59			489
Finance income / (expenses), net		(54	)		8			(286	)		118
Foreign exchange gains / (losses), net		(156	)		159			(165	)		118
Loss contingency		36						(4,871	)
Other income / (expenses), net		(2,466	)		(806	)		(2,483	)		(760	)
Loss before income tax		(11,273	)		(21,827	)		(20,684	)		(33,019	)
Income taxes		-			(4	)		55			(800	)
Net loss	$	(11,273	)	$	(21,831	)	$	(20,629	)	$	(33,819	)
Net loss per share
Basic loss per share		(4.28	)		(12.26	)		(7.91	)		(19.25	)
Basic weighted average number of shares		2,634,179			1,780,574			2,609,549			1,757,137
Diluted loss per share		(4.28	)		(12.26	)		(7.91	)		(19.25	)
Diluted weighted average number of shares		2,634,179			1,780,574			2,609,549			1,757,137

ADVENT TECHNOLOGIES HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in USD thousands, except share and per share amounts)

	Six Months Ended June 30, (unaudited)
(Amounts in thousands)	2024			2023			$ change			% change
Net Cash used in Operating Activities	$	(4,810	)	$	(18,899	)	$	14,089			(74.5	)%

Cash Flows from Investing Activities:
Proceeds from sale of property and equipment		300			-			300			N/A
Purchases of property and equipment		(28	)		(2,348	)		2,320			(98.8	)%
Advances for the acquisition of property and equipment		-			(1,214	)		1,214			N/A
Acquisition of subsidiaries		-			(1,864	)		1,864			N/A
Net Cash provided by / (used in) Investing Activities	$	272		$	(5,426	)	$	5,698			(105.0	)%

Cash Flows from Financing Activities:
Proceeds from issuance of common stock and paid-in capital		282			3,410			(3,128	)		(91.7	)%
Proceeds from borrowings		540			-			540			N/A
Net cash provided by Financing Activities	$	822		$	3,410		$	(2,588	)		(75.9	)%

Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents	$	(3,716	)	$	(20,915	)	$	17,199			(82.2	)%
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents		(14	)		94			(108	)		(114.9	)%
Cash, cash equivalents, restricted cash and restricted cash equivalents at the beginning of year		4,412			33,619			(29,207	)		(86.9	)%
Cash, cash equivalents, restricted cash and restricted cash equivalents at the end of period	$	682		$	12,798		$	(12,116	)		(94.7	)%

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.

The following tables show a reconciliation of net loss to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023.

EBITDA and Adjusted EBITDA	Three months ended June 30, (Unaudited)									Six months ended June 30, (Unaudited)
(in Millions of US dollars)	2024			2023			$ change			2024			2023			$ change
Net loss	$	(11.27	)	$	(21.83	)		10.56		$	(20.63	)	$	(33.82	)		13.19
Depreciation of property and equipment	$	0.40		$	0.81			(0.41	)	$	1.12		$	1.21			(0.09	)
Amortization of intangibles	$	-		$	0.19			(0.19	)	$	-		$	0.41			(0.41	)
Finance income / (expenses), net	$	0.06		$	(0.01	)		0.07		$	0.29		$	(0.12	)		0.41
Loss contingency	$	(0.04	)	$	-			(0.04	)	$	4.87		$	-			4.87
Other income / (expenses), net	$	2.46		$	0.81			1.65		$	2.48		$	0.76			1.72
Foreign exchange differences, net	$	0.16		$	(0.16	)		0.32		$	0.17		$	(0.12	)		0.29
Income taxes	$	-		$	-			-		$	(0.06	)	$	0.80			(0.86	)
EBITDA	$	(8.23	)	$	(20.19	)		11.96		$	(11.76	)	$	(30.88	)		19.12
Net change in warrant liability	$	-		$	(0.10	)		0.10		$	(0.06	)	$	(0.49	)		0.43
Impairment losses	$	-		$	9.76			(9.76	)	$	-		$	9.76			(9.76	)
Adjusted EBITDA	$	(8.23	)	$	(10.53	)		2.30		$	(11.82	)	$	(21.61	)		9.79

This supplemental non-GAAP measure is provided to assist readers in determining our financial performance. We believe this measure is useful in assessing performance and highlighting trends on an overall basis. Adjusted Net Loss 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 loss to Adjusted Net Loss for the three and six months ended June 30, 2024 and 2023.

Adjusted Net Loss	Three months ended June 30, (Unaudited)									Six months ended June 30, (Unaudited)
(in Millions of US dollars)	2024			2023			$ change			2024			2023			$ change
Net loss	$	(11.27	)	$	(21.83	)		10.56		$	(20.63	)	$	(33.82	)		13.19
Net change in warrant liability	$	-		$	(0.10	)		0.10		$	(0.06	)	$	(0.49	)		0.43
Impairment losses	$	-		$	9.76			(9.76	)	$	-		$	9.76			(9.76	)
Adjusted Net Loss	$	(11.27	)	$	(12.17	)		0.90		$	(20.69	)	$	(24.55	)		3.86

INEOS is Committed to Investment in Hydrogen Technology as a Core Part of its Future Business