Amprius Technologies(US:AMPX)2023-05-10 16:00Production and Capacity - Amprius Technologies has shipped over 10,000 batteries as of March 31, 2023, enabling mission-critical applications for over 40 customers, including Airbus and the U.S. Army [88]. - The company expects to increase its silicon anode production capacity to approximately 2 MWh by the end of 2023 with the new large-scale anode production machine [98]. - The company plans to build a GWh-scale manufacturing facility in Brighton, Colorado, but current zoning does not allow for battery manufacturing, with re-zoning expected to be completed by September 2023 [99][100]. - Estimated capital expenditures to achieve 1.0 GWh per year of manufacturing capacity are projected to range between $120 million and $150 million [101]. - The initial phase of the new GWh-scale manufacturing facility is expected to be operational in 2025, with a capacity of 500 MWh [133]. Financial Performance - Revenue decreased by $1.4 million, or 68%, to $0.7 million during the three months ended March 31, 2023, compared to $2.1 million in the same period last year [123]. - Cost of revenue increased by $1.0 million, or 30%, to $4.1 million during the three months ended March 31, 2023, from $3.1 million in the same period last year [124]. - Research and development expense increased by $0.4 million, or 117%, to $0.8 million during the three months ended March 31, 2023, from $0.4 million in the same period last year [125]. - Selling, general and administrative expense increased by $4.0 million, or 268%, to $5.5 million during the three months ended March 31, 2023, from $1.5 million in the same period last year [126]. - The company incurred a net loss of $9.1 million during the three months ended March 31, 2023 [134]. Cash and Financing - Cash and cash equivalents were $64.2 million as of March 31, 2023, expected to meet working capital and capital expenditure requirements for at least twelve months [129]. - The company estimates capital equipment expenditures will range between $120.0 million and $150.0 million to achieve 1.0 GWh per year of manufacturing capacity [133]. - Net cash used in operating activities increased to $6.5 million for the three months ended March 31, 2023, up from $3.0 million in the same period last year, primarily due to higher personnel-related costs [138]. - Net cash used in investing activities rose to $1.1 million during the three months ended March 31, 2023, compared to $34 thousand in the same period last year, mainly due to purchases of production equipment [141]. - Net cash provided by financing activities increased to $2.1 million for the three months ended March 31, 2023, from $0.2 million in the same period last year, driven by proceeds from the issuance of common stock [142]. Agreements and Grants - Amprius has entered into a Common Stock Purchase Agreement allowing it to sell up to $200 million of common stock, with $2.4 million raised from the sale of 331,351 shares as of March 31, 2023 [91][93]. - A $50 million cost-sharing grant was awarded to Amprius by the U.S. Department of Energy under the Bipartisan Infrastructure Law, pending final contract negotiations [94]. - A new lease agreement for a GWh-scale manufacturing facility in Brighton, Colorado, was entered into, with future lease payments totaling approximately $62.9 million starting December 2024, contingent on successful re-zoning [135]. Risks and Future Outlook - The company expects to incur additional losses and increased expenses in future periods related to the GWh-scale manufacturing facility and R&D efforts [134]. - The company is exposed to credit risk from customers, which may affect operating results and cash flows if customers default on obligations [152]. - High inflation may impact operating results and cash flows, although it was not deemed to have a material effect during the three months ended March 31, 2023 [153]. - The company may need to seek additional equity or debt financing if cash resources are insufficient, which could lead to reduced capital or operating expenditures [136]. - The company is classified as an emerging growth company, allowing it to take advantage of reduced reporting requirements under the JOBS Act [144]. Product Development - Amprius aims to reduce manufacturing costs on a $/kWh basis to accelerate demand and expand its customer base, focusing on optimizing material utilization and throughput [102]. - The company is developing customized battery solutions and prototypes for industry leaders and the federal government, with ongoing research to improve battery life and energy density [106][107]. - Amprius is the only known manufacturer using a 100% silicon anode free of inactive additives, positioning itself as a leader in high-performance batteries for aviation applications [103][105]. Corporate Changes - The merger with Amprius Holdings, if approved, will eliminate the controlling stockholder and allow legacy stockholders to hold shares directly, with a special meeting expected in the third fiscal quarter of 2023 [95][96].