Good morning, everyone. I will be your conference operator today. At this time, I would like to welcome everyone to Advent Technologies' fourth quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. On the call today, we are joined by Dr. Vasilis Gregoriou, Advent's Chairman and CEO, and Kevin Brackman, Advent's CFO. Before we begin the prepared remarks, we would like to remind you that Advent issued a press release announcing its fourth quarter 2022 financial results shortly before market open today. You may access the materials on the investor relations section of the company's website, www.advent.energy.
I would also like to remind everyone that during the course of this conference call, Advent's management will discuss forecasts, targets, and other forward-looking statements regarding the company's future customer orders and the company's business outlook that are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. While these statements represent management's current expectations and projections about future results and performance as of today, Advent's actual results are subject to many risks and uncertainties that could cause actual results to differ materially from those expectations. In addition to any risks highlighted during this call, important factors that may affect Advent's future results are described in its reports filed with the United States Securities and Exchange Commission, including today's earnings press release.
Except as required by applicable law, the company undertakes no obligation to update any of these forward-looking statements for any reason after the date of this call. Information discussed on this call concerning the company's industry competitive position in the market in which it operates is based on information from independent industry and research organizations, other third-party sources, and management estimates. Management estimates are derived from publicly available information released by independent industry analysis and other third-party resources, as well as data from the company's internal research, and are based on assumptions made upon reviewing such data and with knowledge of such industry and markets which it believes to be reasonable. These assumptions are subject to uncertainties and risk, which could cause results to differ materially from those expressed in the estimates. Please note that this call is being recorded. Kicking off the call will be Dr. Vasilis Gregoriou.
Dr. Gregoriou, I'll now turn it over to you.
Thank you, operator. Good morning to everyone listening in, and thank you for joining us on Advent's fourth quarter 2022 earnings call. On today's call, I will provide an update on the business. I will then hand over to Kevin, who will give a review of our financial performance and outlook. It is clear that the energy transition is underway, and while sustainability has always been foremost, the issue of energy security is also now prominent. The combination of sustainability and energy security has provided the tipping point for the clean energy economy. In particular, the increasing support from governments, and most notably the U.S. and EU, have introduced incentives such as the Inflation Reduction Act of 2022, REPowerEU, and the European Hydrogen IPCEI projects, where Advent is one of the participants. Advent had a productive fourth quarter.
After formal certification from the EU for funding of EUR 782.1 million for Advent's Green HiPo project, we have been working with the Greek state on the mechanism and timing schedule for the funding facility. These meetings have included visits by Greek state officials to the company's research and production facilities in Patras, Greece. It is our goal to finalize these discussions as soon as possible and proceed with the rollout of the program. The scope of Green HiPo over the initial period of six years is to innovatively develop and manufacture fuel cell systems and electrolyzer systems for the production of power and green hydrogen respectively. We're aiming for cumulative capacity of 118 megawatts of fuel cells and 1.5 gigawatts of electrolyzers over this time.
The production of these systems will take place in Greece, in the region of Western Macedonia, which will become our focal point for technology development and mass production. The company intends to create approximately 600 direct jobs for qualified scientific and technical personnel, and up to 4,600 indirect jobs over the 6-year period. Green HiPo will provide Advent with the momentum to enter into and accelerate towards commercialization of electrolyzer systems. We will be established a global green hydrogen value chain from hydrogen production with electrolyzers to clean energy production with fuel cells. In addition to the Green HiPo project, I will now give an overview of key recent developments. In the U.S., Advent recently announced that it opened its new R&D and manufacturing facility at Hood Park in Charlestown, Massachusetts.
The state-of-the-art Hood Park facility will enable Advent to scale up and deliver on the increasing global demand for electrochemical components in the clean energy sector. This includes state-of-the-art coating machines to support the seamless transition from prototypes to production runs for advanced membranes and electrodes. A fully analytical facility dedicated to quality control, performance analysis, and improving product lifetime. Fuel cell test stations for statistical process control and development of next-generation MEA materials, and a mechanical engineering lab for development automated process for MEAs. One of the products to be developed to manufacture, I'm sorry, in the Hood facility, will be the Ion Pair Advent MEA, which is currently being developed within the framework of L'Innovator, the company's joint development program with the US Department of Energy.
Advent intends that its proprietary fuel cell products, such as Serene and Honey Badger 50, will incorporate the Ion Pair MEA beginning in 2024. The company expects introduction of the Ion Pair MEA will significantly reduce the cost of our Serene flagship product suit, and thus expand the immediately addressable market. Furthermore, the expected system increase in power density and lifetime will highly differentiate Advent's fuel cells in the heavy-duty mobility industry. In March this year, Advent and Hyundai announced a successful technology assessment. The assessment evaluated Advent's proprietary MEA technology for supplying Hyundai high temperature fuel cell needs. Following its success, the two companies have entered into a joint development agreement. The agreement solidifies the interest of one of the world's leaders in fuel cell technology to further develop the high temperature PEM technology in collaboration with Advent.
The first step of the JDA focuses on the MEA. Advent's goal is to provide its MEA and its high temperature PEM fuel cells development expertise to co-develop with automotive manufacturers the next generation of fuel cells for heavy-duty mobility. The high temperature PEM fuel cell technology is highly differentiated compared to the current LT-PEM technology, because it allows a vehicle to operate with efuel such as eMethanol, biofuels, and low purity hydrogen. It allows higher purity in the hydrogen or air intake, a case which is very common in practice and has repeatedly hampered low temperature PEM deployments in real-world condition. It has built-in resilience, as the high temperature PEM fuel cell does not rely on water for conductivity, therefore eliminating the problems of operating in extreme heat, cold, or humid conditions.
It has a high efficiency resulting from the high temperature operation, which allows for optimized cooling, a critical performance parameter for heavy-duty trucks and aircraft. Based on this, Advent will continue to pursue strategic joint development agreements to achieve its goal of supplying key MEA components and technology to the mobility market. In December, Advent launched a proof of concept project with Vantage Towers to replace diesel generators with fuel cells. Vantage Towers Greece is the largest and only independent tower infrastructure company in Greece, operating more than 5,250 towers for Vodafone Greece and Wind Hellas. By replacing diesel generators with fuel cells at non-permanent sites that are not connected to the power grid, they can be supplied with cleaner electricity.
Under the project, Vantage Towers Greece, a subsidiary of Vantage Towers Group, one of Europe's leading tower companies, will explore the applicability of Advent Serene biomethanol-powered fuel cell systems as backup and primary power sources for its telecom towers. Following the successful completion of the project in Greece, Advent and Vantage Towers will consider wider deployments. Advent has already installed approximately 1,000 methanol-powered Serene fuel cell systems worldwide, primarily used as backup power source for the telecommunication sector. In January this year, Advent announced a collaboration with Alfa Laval, a global provider of heat transfer, separation, and fuel handling products, on a project to explore application of Advent's methanol-powered high temperature PEM fuel cells in the marine industry. Funded by the Danish Energy Technology Development and Demonstration Program, the project is a joint effort between Advent, Alfa Laval, and a group of Danish ship owners.
The project will focus on testing Advent's methanol-powered high temperature PEM fuel cell as a source of marine auxiliary power. During the course of the project, the fuel cell system will undergo a risk assessment by leading international classification society. At the same time, the project aims to integrate the next-generation of Advent fuel cells. These fuel cells will be based on Advent's next-generation MEA. Aiming to meet the ever-growing power requirements of the marine industry, Advent's next-generation fuel cells are expected to demonstrate a significant increase in lifetime, efficiency, and electrical output. In February, Advent announced a new marine collaboration with a globally renowned energy technology company offering sustainable solution across the entire energy value chain.
Advent and its partner will work together to develop a 50 kW-500 kW marine fuel cell solution for a range of super yachts, which will provide a sustainable and reliable source of auxiliary power and offer improved power density. This marine fuel cell solution is initially expected to be used as a hybrid power source, enabling clean electricity generation instead of using conventional diesel engines and generators for procedures such as anchoring and maneuvering. As part of the agreement, Advent's partner has placed an initial order for 20 of Advent's methanol-powered Serene fuel cell systems.
Following the completion of this project, the two parties will explore the potential of developing similar solutions for a wider range of business applications beyond marine, such as industrial power solutions. Advent continue with the development effort of the Honey Badger 50, the portable power generation for the defense market funded by the U.S. Department of Defense. Sorry. The company expects the production version to be finalized in 2023. Our goal is to receive production orders in 2024, increasing to high volumes in 2025. We consider the Department of Defense programs a very important part of our innovation portfolio, as the demand performance under extreme conditions improve the resilience of the high-temperature PEM technology. The portable fuel cell application market is also a potential target for growth, where we intend to seek synergies with established market leaders that require a fuel cell product line.
Finally, let me turn to the stationary off-grid markets. Advent has made focused efforts to increase the commercial footprint of the Serene HT-PEM fuel cell system produced in Germany and in Denmark. Our stationary power product suite has been targeting telecommunication and other critical backup power opportunities. We're experiencing and changing landscape in the Philippines, which has resulted in order delays. Prior to our acquisition, Serene was actively selling to both Smart and Globe Telecom in the Philippines. In 2022, these companies proceeded with selling of most of their tower assets to TowerCos. This has resulted in delayed orders and the mandate to reboot our efforts in this sector. We're focusing our resources now on major TowerCos, pursuing long-term, large-scale deals that can sustain this product, and marketing at the tower exchange events.
In addition to lower revenue that we had planned in 2022, another financial impact of the market change and order delays was the recognition of the impairment charge against our Serene investment. We remain confident, though, that the answered Serene products have great promise for both the off-grid and marine markets. With that, I would like to hand over to our CFO, Kevin Brackman.
Thank you, Vassilis. Good morning, everyone. Turning to our financial results, we delivered revenue of $2 million in the fourth quarter, compared to $2.9 million in the prior year quarter. The year-over-year result is due to a decline in orders for the company's stationary fuel cell systems, driven by a change in telecom tower ownership, as Vassilis mentioned. R&D expenses were $2.5 million in the fourth quarter, primarily related to internal R&D costs incurred in each of our businesses, as well as our cooperative research and development agreement with the Department of Energy. Administrative and selling expenses were $9.3 million in the fourth quarter. Combined with R&D expenses, total operating expenses were $11.7 million, a year-over-year decrease of $4.6 million, primarily due to a reduction in incentive and stock-based compensation expenses.
Net loss in Q4 was $47.6 million or $0.92 per share. Adjusted net loss was $13.2 million or $0.26 per share. The adjusted net loss excludes a $2.1 million gain from the change in the fair value of outstanding warrants, a $2.4 million gain from an acquisition purchase price adjustment, and a $38.9 million asset impairment charge. The asset impairment charge primarily relates to goodwill from the company's stationary fuel cell systems business in Denmark, Germany, and the Philippines, which was acquired in August 2021. Unrestricted cash reserves were $32.9 million as of December 31st, 2022, which is a decrease of $9.5 million from September 30th.
In the fourth quarter of 2022, we received $0.4 million in tenant improvement allowances for the Hood Park R&D and manufacturing facility, which is net of additional spending for the build-out of the facility. Our existing cash balances and projected cash flows are not expected to be sufficient to support planned operations for the next 12 months. As Vasilis discussed earlier, we have been working with the Greek state to implement a funding mechanism for the Green HiPo project as soon as possible. We are exploring opportunities to raise additional capital and expect to provide an update on this very soon. In the meantime, we will continue to manage our costs closely and capitalize on opportunities to reduce costs where possible. I will now turn to our outlook. Advent entered 2023 with a strong pipeline of opportunities.
As we all know, however, not every opportunity in the pipeline will transpire due to factors that are beyond Advent's control. Opportunities may not materialize or could be delayed. Due to the long-term contract nature of our business model, the timing of our revenue can also be difficult to predict. As we mentioned, we have experienced delays in the Philippines for stationary fuel cell systems and their installation. Due to the level of uncertainty caused by these factors, we are not providing a revenue outlook for 2023 at this time. With that, I will hand back to Vasilis for closing remarks.
Thank you, Kevin. Advent has a significant portfolio of technology and commercial strengths, allowing to compete and be successful at the global level. Green HiPo will be transformational for Advent. Green HiPo is for the long run. We're moving along the process with the Greek state to unlock state aid. We'll keep you informed on developments. Advent is pursuing a visible and defined path towards key and significant sectors. Advent is a clean energy technology company. We will leverage from this strength to generate commercial products in addition to providing attractive technology solutions through partnerships with OEMs. In closing, we believe Advent is well-positioned to be the provider of clean energy solution across a variety of end markets. I would like to thank you all for joining us today. We're now ready to answer questions. Thank you very much.
At this time, I would like to remind everyone, in order to ask a question, press star followed by one on your telephone keypad. We'll pause for just a moment to compile a Q&A roster. Again, if you would like to ask a question, press star followed by one on your telephone keypad. Your first question comes from the line of Lacie Midgley with Panmure Gordon. Your line is open.
Hi, Vasilis, Kevin. Can you hear me?
Yes, very well.
Hi, guys. Thank you very much for the presentation. Vasilis as well, congratulations on the recent appointment as chair of the IPCEI Hydrogen High Level Group . My first question actually is around the Green HiPo project. Obviously, this is a key project for Advent over the next few years, certainly. You mentioned that next steps towards implementation of the project have been discussed. Can you give us some more color on what the steps and next milestones are and sort of timing of those, please?
Yes, absolutely. I know this is a very good question, and this is something that's very, very important to us, so we follow it every day. Here is the situation. The IPCEI has been ratified at EUR 5.4 billion across the continent. Not all countries are at the same level. Again, as a very newly elect chairman, my first thing is to, you know, for all of us to find out where we are and to go in the next couple of months when we have our first reporting to see where everybody is. The idea is that the Greek state is very positive about it.
We received a letter in March that first of all congratulated us on this amazing success, if you will. Second is that they go as fast as possible to go to the next level, meaning, you know, get us a call and in the call, we're all gonna see the exact details of what's gonna happen there. In general, when I came back from the first meeting two days ago in Berlin, is that the hydrogen is here, and it's gonna be big in Europe. I think the collective effort there represents a true, you know, world opportunity. I think that's how much and I can say. I think we in the next few months, we will know things.
Right now I don't think we can say something more about it. I mean, we are definitely there, you know, and definitely happening. We cannot say, unfortunately, when. We definitely would like to have it by now, don't get me wrong, because we got the ratification in July of 2022, and we know it's gonna be some months, but unfortunately we don't have it today.
Okay. No, no. I understand that. Thank you. That's helpful. I guess sort of switching sort of pack here a little bit, but on the Hyundai, the JDA deal, which for me is, you know, it's quite significant step forward this year and most recently. Is there any more color you can give us again on sort of expected timing on the development milestones? I know early days, of course, but any initial sort of expected timings on a commercial product or, you know, being ready with Hyundai?
Yeah. Thank you. Listen, we had a joint press release, as you know. I don't think I can say much more from that. I thought it was inclusive. The good thing here is A, the long-term nature of this because we passed the first test. Okay. The technology assessment, in my opinion, was the most difficult thing there. We agreed to work together. There is tremendous expertise from Hyundai in catalyst that we use it in the final MEA. Also, we have demonstrated to Hyundai that our hardware capabilities, especially, you know, the superior cooling and the multi-fuel capacity that we said before, are very important to a global player like them.
I would say we focus on the longer term, and, it's a really important milestone for us.
No, no, absolutely. I think it's. Yeah. I agree. As a follow-up, just I think I know the answer to this, but this isn't an exclusive agreement. You're free to work with other sort of partners and players in the auto market?
No. No. We have with them a particular agreement. As I said, you know, we provide our expertise. They provide their expertise. Because, you know, these are rather complex systems, right? I mean, not everybody knows everything. We go to different collaborations with different models. We're very happy so far with Hyundai, and we congratulate them also to being a pioneer in this sector.
Okay. One last one from me, just finishing up sort of thoughts on the auto market more generally. Is there, is this wider interest that you're getting sort of, I know you probably won't be able to say too much on this, again, but from sort of auto players? I'm assuming so given this deal. Within that, I mean, obviously, you mentioned in the statement with Hyundai on sort of heavy-duty applications, is there more interest around that given your technology, and your strengths than there are on the light-duty side? Any color you can give there would be helpful.
Yeah. You said it. We are very competitive, and we have tremendous advantages for heavy duty, maybe a little bit light duty. We are not, you know, we're not that competitive somewhere else. We're trying to concentrate where our strength is. I think let's go where we have our strength rather than to, you know, try to engage in everything that, in the end of the day, you know, technology is what makes the thing either work or doesn't work. Heavy duty and some light trucks as well, I would say.
Okay. Thanks so much. That's all from me. Thanks, guys.
All right. Thank you.
There are no further questions at this time. Ladies and gentlemen, thank you for participating. This concludes today's conference call. You may now disconnect.