Factorial Energy (FAC) investor relations material

Executive summary

• Achieved first commercial battery order in aerospace, marking a milestone toward initial revenue in 2027.

• Completed a reverse recapitalization via a de-SPAC transaction, raising $112.1 million gross and $92.0 million net, and became a Nasdaq-listed public company.

• Demonstrated 30% increase in drone flight range using solid-state and lithium-metal batteries, with further improvements targeted.

• Integrated FEST solid-state cells into a Dodge Charger Daytona, the first such automotive integration in North America.

• Remains a pre-revenue, development-stage company focused on solid-state battery technology, with no commercial sales to date.

Financial highlights

• Cash and cash equivalents stood at $112.8 million as of June 30, 2026, up from $28.9 million at year-end 2025, primarily due to de-SPAC and PIPE financing.

• Q2 operating expenses were $13 million; first half of 2026 totaled $19.5 million.

• Net loss for Q2 2026 was $11.3 million; for the six months ended June 30, 2026, $19.9 million.

• Non-GAAP operating expenses for the first half were $14.5 million, focused on R&D and infrastructure.

• Capital expenditures for the first half were $0.6 million; full-year 2026 CapEx expected at $13 million.

Outlook and guidance

• Non-GAAP operating expenses for 2026 projected at $40 million.

• First commercial revenue expected in 2027, led by aerospace and supercar markets.

• FEST production line expansion to complete by end of 2027; Solstice by end of 2028.

• Cash on hand expected to fund operations and capital expenditures into Q1 2028, assuming current plans and no major delays.

• May seek additional equity or debt financing if business conditions change or delays occur in commercialization.