Revenue - Revenue for the three months ended March 31, 2025, was $6.0 million, a slight increase of 1.7% from $5.9 million in the same period in 2024[116] - Collaborative revenue accounted for $4.5 million during the three months ended March 31, 2025, primarily driven by agreements with SK On[117] - Government revenue recognized was $1.5 million, with funding from the U.S. Department of Energy's Assistance Agreement, which provides up to $50 million for equipment installation[118] Expenses - Operating expenses decreased by $1.7 million, or 5%, to $30.0 million for the three months ended March 31, 2025, compared to $31.7 million in 2024[119] - Cash used in operating activities decreased by $2.8 million to $26.3 million for the three months ended March 31, 2025, compared to $29.1 million in 2024[131] - Cash used in financing activities decreased by $4.9 million in Q1 2025 compared to Q1 2024, primarily due to no stock repurchases in Q1 2025[134] Income - Nonoperating income increased to $8.9 million for the three months ended March 31, 2025, up from $4.6 million in the same period in 2024, primarily due to a gain in the fair value of warrant liabilities[123] Liquidity - Total liquidity as of March 31, 2025, was $299.6 million, a decrease of $27.9 million from $327.5 million as of December 31, 2024[125] Cash Flow - Cash provided by investing activities increased by $16.9 million to $30.5 million for the three months ended March 31, 2025, primarily due to increased proceeds from available-for-sale securities[132] - Capital expenditures were $2.4 million for the three months ended March 31, 2025, down from $4.0 million in the same period in 2024, primarily for the continuous electrolyte production pilot line[133] - The company anticipates cash used in operations to slightly increase on a quarterly basis for the remainder of the year, but expects additional cash receipts from partners to partially offset that increase[131] Accounting Policies - Collaborative revenue recognition methodology changed as of January 1, 2025, now utilizing the cost-to-cost method for performance obligations[137] - No significant changes in critical accounting policies and estimates during Q1 2025 compared to the previous year[136] - The company is not involved in any off-balance sheet arrangements as defined under SEC rules[135] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[139]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated revenue of $6 million, a slight increase from $5.9 million in Q1 2024, primarily driven by the SK On agreement and milestone execution [9][10] - Operating expenses decreased to $30 million, down by $1.7 million compared to the same quarter last year, attributed to lower direct labor costs [10] - The operating loss was $24 million, with a net loss of $15 million, equating to 8 cents per share [10] - Total liquidity at the end of the quarter was $300 million, with contract receivables totaling $2.2 million and current liabilities at $10.4 million [10][11] Business Line Data and Key Metrics Changes - The company is focused on electrolyte development, with plans to install a continuous manufacturing pilot line at SP2, expected to expand production capacity to 75 metric tons per year [4][5] - The company is close to completing factory acceptance testing for the SK On line, a key milestone in their line installation agreement [6] Market Data and Key Metrics Changes - Demand for multiple generations of the company's electrolyte from both existing and potential new customers has been observed, indicating strong market interest [8] Company Strategy and Development Direction - The company aims to execute agreements with Eskayon to develop solid-state cells based on its technology and operate a solid-state pilot line [5] - The focus is on driving electrolyte innovation and performance through customer feedback, which is expected to lead to improved electrolyte performance [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the promise of sulfide-based solid-state batteries and noted that customer engagement and electrolyte sampling activities are encouraging [9] - The trajectory of revenue growth is expected to be gradual, with significant electrolyte revenue anticipated as early as 2027, with the bulk around 2029 and beyond [18] Other Important Information - The company received $1.5 million in reimbursements under an agreement with the U.S. Department of Energy during the quarter [5][20] Q&A Session Summary Question: How to think about '25 revenue and timing around revenue from customers? - Management indicated that 2025 revenue is dominated by collaborative arrangements, particularly with SK On, and some government contracts [14] Question: Trajectory of revenues potentially beyond '25? - Management noted that customers are in early stages of cell development, with increased sampling but not large quantities yet, with significant revenue expected around 2027 to 2030 [17][18] Question: Update on the DOE grant? - Management clarified that the $1.5 million received is a grant, not a loan, and that is the current status [20]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated revenue of $6 million, a slight increase from $5.9 million in Q1 2024, primarily driven by the SK On agreement and milestone execution [9] - Operating expenses decreased to $30 million, down by $1.7 million compared to Q1 2024, attributed to lower direct labor costs [9] - The operating loss was $24 million, with a net loss of $15 million or 8 cents per share [10] - Total liquidity at the end of the quarter was $300 million, with contract receivables of $2.2 million and total current liabilities of $10.4 million [10][11] Business Line Data and Key Metrics Changes - The company is focused on electrolyte development, with plans to install a continuous manufacturing pilot line at SP2, expected to expand production capacity to 75 metric tons per year [4] - The company is close to completing factory acceptance testing for the SK On line, a key milestone in their line installation agreement [6] - There is ongoing innovation in the Electrolyte Innovation Center, which is being used to develop and test production processes [7] Market Data and Key Metrics Changes - Customer engagement and electrolyte sampling activities have shown positive trends, indicating demand for multiple generations of the electrolyte from both existing and potential new customers [8] Company Strategy and Development Direction - The company aims to balance financial discipline with appropriate investments in technology development and process improvement [11] - The strategic focus includes executing agreements with Eskayon for solid state cell development and ramping up electrolyte sampling to identify long-term customers [5][7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the transition from traditional lithium-ion to solid-state battery technology, highlighting the importance of customer feedback in driving electrolyte performance improvements [6][8] - The company anticipates significant electrolyte revenue growth starting as early as 2027, with the bulk of revenues expected around 2029 and beyond [20] Other Important Information - The company received $1.5 million in reimbursements under an agreement with the U.S. Department of Energy during the quarter [5][22] Q&A Session Summary Question: How to think about 2025 revenue and timing around revenue from customers for electrolytes? - Management indicated that 2025 revenue is primarily driven by collaborative arrangements, particularly with SK On, and government contracts, with electrolyte sampling at a lower level [15][16] Question: What is the trajectory of revenues potentially beyond 2025? - Management noted that customers are in early stages of cell development, with increased sampling but not large quantities yet, and significant revenue is expected around 2027 to 2030 [19][20] Question: Update on the DOE grant? - Management clarified that the $1.5 million received is a grant, not a loan, and that is the current status [22]

[Solid Power First Quarter 2025 Results](index=1&type=section&id=Solid%20Power%20Reports%20First%20Quarter%202025%20Results) [Business and Financial Highlights](index=1&type=section&id=Business%20and%20Financial%20Highlights) The company reported stable revenue, progressed on key operational goals, and maintained a strong liquidity position of $299.6 million - Key operational achievements in Q1 2025 include advancing the electrolyte pilot line design, nearing completion of the SK On pilot cell line, and receiving increased customer demand for electrolyte[7](index=7&type=chunk) - Capital expenditures for Q1 2025 totaled **$2.4 million**, primarily for the construction of the continuous electrolyte production pilot line[8](index=8&type=chunk) Q1 Financial Comparison | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $6.0 million | $6.0 million | | Operating Expenses | $30.0 million | $31.7 million | | Operating Loss | $24.0 million | $25.8 million | | Net Loss | $15.1 million | $21.2 million | | Loss Per Share | $0.08 | $0.12 | Liquidity Position | Liquidity (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $29,454 | $25,413 | | Available-for-sale securities | $270,134 | $302,057 | | **Total liquidity** | **$299,588** | **$327,470** | [2025 Outlook](index=2&type=section&id=2025%20Outlook) The company reaffirmed its 2025 objectives, focusing on electrolyte innovation, technology roadmap execution, and maintaining financial discipline - Key objectives for 2025 include driving electrolyte innovation, executing the technology roadmap, fulfilling partner commitments, and maintaining financial discipline while investing in technology[9](index=9&type=chunk)[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements subject to significant risks and uncertainties, cautioning readers against undue reliance - The report contains forward-looking statements concerning financial guidance and future performance, which are based on current expectations and not guarantees of future results[13](index=13&type=chunk) - The company identifies numerous risks that could cause actual results to differ, including **R&D success**, a **history of financial losses**, and **delays in facility construction**[13](index=13&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The statements detail the company's financial position, with total assets of $419.4 million and a net loss of $15.2 million for Q1 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary | Balance Sheet (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $249,277 | $125,236 | | **Total assets** | **$419,390** | **$448,250** | | Total current liabilities | $10,429 | $19,970 | | **Total liabilities** | **$22,275** | **$37,936** | | **Total stockholders' equity** | **$397,072** | **$410,280** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(Unaudited)) Statement of Operations Summary | Statement of Operations (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $6,016 | $5,953 | | Total operating expenses | $30,045 | $31,734 | | Operating Loss | $(24,029) | $(25,781) | | **Net Loss** | **$(15,151)** | **$(21,207)** | | Basic and diluted loss per share | $(0.08) | $(0.12) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Cash Flow Summary | Cash Flows (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,291) | $(29,065) | | Net cash provided by investing activities | $30,499 | $13,639 | | Net cash used in financing activities | $(167) | $(5,092) | | **Net increase (decrease) in cash** | **$4,041** | **$(20,518)** | | **Cash and cash equivalents at end of period** | **$29,454** | **$14,019** |

Financial Performance - Revenue for the year ended December 31, 2024, was $20.139 million, an increase of 15.7% compared to $17.410 million in 2023[293]. - Total operating expenses for 2024 were $125.472 million, up from $108.030 million in 2023, reflecting a 16.2% increase[293]. - Research and development expenses rose to $73.341 million in 2024, compared to $54.749 million in 2023, marking a 33.8% increase[293]. - The net loss attributable to common stockholders for 2024 was $96.520 million, compared to a loss of $65.549 million in 2023, representing a 47.2% increase in losses[293]. - Basic and diluted loss per share for 2024 was $0.54, compared to $0.37 in 2023, indicating a 45.9% increase in loss per share[293]. - The accumulated deficit increased to $(181.171) million in 2024 from $(84.639) million in 2023, showing a significant rise in accumulated losses[290]. - The net loss for the year ended December 31, 2024, was $96,520,000, compared to a net loss of $65,549,000 for 2023, representing a 47% increase in net loss year-over-year[299]. - Total stockholders' equity as of December 31, 2024, was $410,280,000, a decrease from $503,335,000 as of December 31, 2023, reflecting a decline of about 18.5%[296]. Cash Flow and Assets - Cash and cash equivalents decreased to $25.413 million as of December 31, 2024, down from $34.537 million in 2023, a decline of 26.5%[290]. - Total assets decreased to $448.250 million in 2024 from $532.792 million in 2023, a reduction of 15.8%[290]. - Total liabilities increased to $37.936 million in 2024, compared to $29.457 million in 2023, reflecting a 28.8% increase[290]. - The company reported cash flows from operating activities of $(63,899,000) for 2024, compared to $(58,261,000) for 2023, indicating a worsening cash flow situation[299]. - The company invested $15,942,000 in property, plant, and equipment in 2024, a decrease from $34,512,000 in 2023, representing a reduction of about 53.8%[299]. - Proceeds from sales of available-for-sale securities were $302,966,000 in 2024, down from $405,161,000 in 2023, reflecting a decrease of approximately 25.3%[299]. Research and Development - Solid Power is focused on maintaining financial discipline while investing in technology development and process improvements to extend its runway[47]. - The company focuses on research and development to improve electrolyte and cell technologies, expensing costs as incurred[344]. - Solid Power's patent portfolio includes 21 issued U.S. patents and 91 pending U.S. patent applications, focusing on solid electrolyte materials and cell technology[59]. - The company expanded its pilot electrolyte production at the Thornton, Colorado facility, with increased scale electrolyte production at SP2, which began in 2023[356]. Partnerships and Collaborations - The partnership with BMW includes a $135.6 million Series B investment round and a joint development agreement (JDA) for solid-state battery cell technology[48]. - The amended JDA with BMW allows for a $20 million payment between December 2022 and June 2024, contingent on achieving certain milestones[52]. - Solid Power entered into agreements with SK On, which include a $20 million R&D license and an estimated $22 million for line installation, both contingent on milestone achievements[54]. - The JDA with Ford was amended to extend the expiration date to December 31, 2025, and revise cell material delivery obligations[56]. - Solid Power's relationships with BMW, Ford, and SK On are expected to expedite research and development processes compared to competitors[62]. Workforce and Diversity - As of February 1, 2025, Solid Power employed over 260 employees, primarily with technical backgrounds[69]. - The company is committed to increasing workforce diversity and maintaining an inclusive culture as part of its success strategy[70]. Stock and Equity - The company issued 1,229,645 shares of common stock for vested RSUs in 2024, compared to 226,201 shares in 2023, indicating a significant increase in share issuance[296]. - The company reported a loss on sales of property, plant, and equipment amounting to $1,957,000 in 2024, which was not reported in 2023[299]. - The company’s stock repurchase program allows for the purchase of up to $50,000 of outstanding common stock until December 31, 2025[378]. - The number of RSUs granted under the 2021 Plan rose to 6,792,700 in 2024, compared to 4,663,079 in 2023, marking a 45.5% increase[387]. Tax and Regulatory - Total income tax expense for 2024 was $1,194, compared to $0 in 2023[433]. - The effective tax rate for 2024 was approximately (1.26)%, compared to 0.00% in 2023[434]. - The Company reported total deferred tax assets of $68,025 for 2024, an increase from $50,491 in 2023[437]. - The valuation allowance for deferred tax assets increased by $20,635 in 2024[437]. - The Company had total U.S. federal net operating loss carryovers of approximately $130,333 and $129,729 for 2024 and 2023, respectively[438].

Core Viewpoint - Solid Power, Inc. is conducting its Q4 2024 earnings conference call, indicating a focus on financial performance and future outlook [1]. Group 1: Company Overview - The conference call features key participants including the President and CEO, John Van Scoter, and CFO, Linda Heller, highlighting the leadership team's involvement in the discussion [3][5]. - The earnings release is accessible on Solid Power's Investor Relations website, emphasizing transparency and availability of financial information [3]. Group 2: Forward-Looking Statements - The company will discuss forward-looking statements as defined by U.S. securities laws, which are based on current expectations and assumptions [4]. - Solid Power disclaims any obligation to update forward-looking statements unless required by law, indicating a cautious approach to future projections [4].

Financial Data and Key Metrics Changes - In 2024, Solid Power generated revenue of $20.1 million, a $2.7 million or 16% increase compared to 2023 revenue of $17.4 million, slightly above the guidance range of $16 million to $20 million [24] - Operating expenses were $125.5 million for the year, an increase of $17.5 million compared to 2023, driven by higher research and development costs [25] - Operating loss was $105.3 million and net loss was $96.5 million or $0.54 per share [26] Business Line Data and Key Metrics Changes - The increase in revenue was primarily driven by agreements with SK On, accounting for $11.8 million of the 2024 revenue [25] - The electrolyte sampling program was expanded, with the majority of volume going to Asian Tier 1 cell manufacturers and automotive OEMs [15] Market Data and Key Metrics Changes - Solid Power deepened its relationship with SK On, signing three agreements to support solid state cell development [19] - The company expanded its presence in Korea to drive engagement with potential customers and vendors [22] Company Strategy and Development Direction - Solid Power's strategy focuses on manufacturing and selling electrolyte to Tier 1 battery manufacturers and automotive OEMs, distinguishing it from companies that plan to be commercial battery manufacturers [13] - The company aims to maintain a capital-light business model, expecting significantly lower capital requirements than cell manufacturers [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult macro environment with slower-than-expected EV sales and projected commercial adoption of solid-state batteries in the late 2020s or early 2030s [7] - For 2025, the company expects cash investment to be in the range of $100 million to $120 million, with revenue anticipated to be consistent with or higher than 2024 [28][29] Other Important Information - Solid Power was selected by the U.S. Department of Energy for a grant of up to $50 million to install a continuous manufacturing process for sulfide-based solid electrolyte materials [16] - The company ended the year with total liquidity of $327.5 million [28] Q&A Session Summary Question: What should be listened for in 2025 regarding partnerships and sampling? - Management indicated that there will be both new partnerships and larger quantities ordered from existing customers [45] Question: How does industry momentum affect the focus on electrolyte? - Management emphasized that electrolyte and the capital-light model have always been the core business, and they are returning to this focus to innovate around electrolytes [48] Question: Are materials sourced mostly within the U.S. or non-tariff countries? - Management stated that materials are sourced globally, with a well-diversified supply chain to mitigate tariff impacts [54]

Financial Performance - Solid Power reported $20.1 million in revenue for 2024, an increase of $2.7 million or approximately 15.5% compared to 2023[5]. - The net loss for 2024 was $96.5 million, or $0.54 per share, compared to a net loss of $65.5 million in 2023[7][22]. - Net loss for the year ended December 31, 2024, was $96,520, compared to a net loss of $65,549 in 2023, representing a 47% increase in losses[24]. Operating Expenses - Operating expenses rose to $125.5 million in 2024, up from $108.0 million in 2023, primarily due to increased research and development costs[7]. - Stock-based compensation expense rose to $11,972 from $10,370, marking a 15% increase year-over-year[24]. Liquidity and Cash Flow - Total liquidity as of December 31, 2024, was $327.5 million, down from $415.6 million in 2023[8]. - Cash and cash equivalents at the end of the period decreased to $25,413 from $34,537, reflecting a net decrease of $9,124[24]. - Net cash used in operating activities was $63,899, an increase from $58,261 in the previous year, indicating a 10% rise in cash outflow[24]. - Net cash provided by investing activities was $64,204, up from $42,502 in 2023, showing a 51% increase in cash inflow from investments[24]. Capital Expenditures - Capital expenditures for 2024 totaled $15.9 million, focusing on electrolyte development and production capabilities[10]. - Accrued capital expenditures at the end of the period were $1,196, compared to $814 in 2023, reflecting a 47% increase[24]. Investments and Grants - Solid Power aims for cash investment in 2025 to be between $100 million and $120 million, excluding potential benefits from a DOE grant[11]. - The company received a U.S. Department of Energy award for up to $50 million for the continuous production of sulfide-based solid electrolyte materials[6]. Asset Management - As of December 31, 2024, total assets were $448.3 million, a decrease from $532.8 million in 2023[20]. Sales and Securities - Purchases of available-for-sale securities decreased to $216,193 from $327,591, a reduction of 34%[24]. - Proceeds from sales of available-for-sale securities were $302,966, down from $405,161, indicating a 25% decline[24]. Other Financial Metrics - Cash paid for withholding of employee taxes related to stock-based compensation increased to $615 from $112, a significant rise of 450%[24]. - The company reported a loss on sales of property, plant, and equipment amounting to $1,957, with no comparable figure in the previous year[24]. - The company successfully completed 2024 milestones for multi-year agreements with SK On and extended joint development agreements with BMW and Ford[6].

Core Viewpoint - Solid Power, Inc. is set to release its full year 2024 results on February 27, 2025, followed by a conference call to discuss the results [1]. Company Overview - Solid Power is a developer of solid-state battery technology aimed at enhancing the next generation of batteries for electric vehicles (EVs) and other markets [3]. - The company's core technology focuses on its electrolyte material, which is expected to provide extended driving range, longer battery life, improved safety, and lower costs compared to traditional lithium-ion batteries [3]. - Solid Power's business model involves selling its electrolyte to cell manufacturers and licensing its cell designs and manufacturing processes, differentiating it from competitors who aim to be commercial battery manufacturers [3]. - The company aspires to be a leading producer and distributor of sulfide-based solid electrolyte material for powering EVs and other applications [3].

Core Viewpoint - Solid Power's stock experienced a nearly 10% decline following the announcement of COO Derek Johnson's departure, contrasting with a slight increase in the S&P 500 index [1]. Group 1: Executive Departure - COO Derek Johnson will step down effective February 1, 2023, but will provide transition consulting services until May 1, 2023 [2]. - Johnson has been with Solid Power since January 2020 and has extensive experience in the auto battery field, making his departure significant [3]. Group 2: Market Reaction - The reason for Johnson's departure was not disclosed, nor was a successor mentioned, contributing to investor concerns and the stock sell-off [4]. - The market reaction may be seen as an overreaction, as companies are typically more than just one executive [4].