Amprius Technologies(AMPX) - 2024 Q2 - Quarterly Report

Battery Production and Capacity - Company has shipped over 150,000 batteries enabling mission-critical applications, validated by over 100 customers including AALTO Airbus and BAE Systems[91] - SiMaxx battery production capacity expected to reach 2 MWh by end of 2024, a 10x increase from 2023 levels[92] - SiCore battery production capacity exceeds 500 MWh through toll manufacturing partnerships, with plans for a GWh-scale facility in Brighton, Colorado[93] - Expansion plans include scaling manufacturing capacity in Fremont, California, and building a GWh-scale facility in Brighton, Colorado[97] - The company is expanding its manufacturing capacity from kWh-scale to MWh-scale in Fremont, California, while designing a new GWh-scale facility in Brighton, Colorado[131] Financial Performance and Capital Expenditures - Company raised $11.2 million in net proceeds from stock sales under the At Market Issuance Sales Agreement as of June 30, 2024[95] - Capital equipment expenditures estimated at $75-100 million to achieve 500 MWh/year capacity in Brighton, Colorado facility[99] - Revenue increased by $1.7 million (105%) to $3.3 million in Q2 2024, driven by a $2.0 million increase in battery sales, including $1.8 million from SiCore batteries[120] - Cost of revenue increased by $5.2 million (112%) to $9.9 million in Q2 2024, primarily due to nonrecurring fees for the GWh manufacturing facility and higher material and personnel costs[121] - Research and development expenses increased by $0.9 million (115%) to $1.7 million in Q2 2024, driven by higher personnel-related costs and stock-based compensation[122] - Selling, general, and administrative expenses decreased by $1.5 million (25%) to $4.7 million in Q2 2024, due to a $2.5 million reduction in non-recurring professional fees and insurance costs[123] - Net loss increased by $3.1 million (32%) to $12.5 million in Q2 2024, compared to the same period last year[116] - The company expects capital expenditures of $75.0 million to $100.0 million to achieve up to 500 MWh/year manufacturing capacity, excluding costs for the new GWh-scale facility in Brighton, Colorado[131] - Net loss of $12.5 million for the three months ended June 30, 2024, and $22.4 million for the six months ended June 30, 2024[132] - Net cash used in operating activities increased to $17.7 million for the six months ended June 30, 2024, up from $12.1 million in the same period last year[135] - Net cash used in investing activities increased to $5.5 million for the six months ended June 30, 2024, compared to $2.9 million in the same period last year[136] - Net cash provided by financing activities increased to $25.1 million for the six months ended June 30, 2024, up from $10.3 million in the same period last year[137] - Total cash flow changes: operating activities increased by $5.663 million, investing activities increased by $2.633 million, and financing activities increased by $14.868 million[138] - Company may seek additional equity or debt financing if current resources are insufficient to meet cash requirements[134] - Expansion plans may be reduced or delayed if financing is unavailable, potentially impacting production capacity and business operations[134] Research and Development - Research and development focuses on improving battery life, energy density, and larger cell form factors for broader electrified transportation applications[104][105] - Company faces challenges in reducing manufacturing costs due to higher capital equipment costs for silicon anode production compared to graphite anodes[102] Market and Competitive Landscape - Company is the only known manufacturer using a 100% silicon anode without inactive additives, targeting aviation applications[103] - Company operates in a highly competitive market with established manufacturers and new entrants developing alternative battery technologies[103] Liquidity and Financing - Cash and cash equivalents stood at $46.4 million as of June 30, 2024, with liquidity expected to cover working capital and capital expenditure needs for at least twelve months[127] - The company raised $10.9 million in net proceeds from the At Market Financing program during the first six months of 2024[128] - A total of 12.6 million public warrants and 500,000 private warrants were exercised for cash, generating $13.6 million in net proceeds[129] Leases and Future Commitments - Future minimum lease payable of $70.7 million over a weighted-average lease term of 13.9 years, with $2.5 million payable in the next twelve months[133] Related Party Transactions - Company continues to purchase raw materials and development materials from previous related parties, including finished batteries for the SiCore product platform[141] Regulatory Status - Company qualifies as an emerging growth company and smaller reporting company, allowing for reduced reporting requirements and extended transition periods for new accounting standards[142][143]