SES AI (SES)2024-10-31 21:59Research and Development Expenses - Research and development expenses for the three months ended September 30, 2024 increased by 24.4 million, driven by equipment purchases and stock-based compensation adjustments[83] - Research and development expenses for the nine months ended September 30, 2024 increased by 51.3 million, primarily due to equipment purchases and increased personnel costs[84] - The company spent 59.9 million on gross research and development activities for the three and nine months ended September 30, 2024, respectively[79] General and Administrative Expenses - General and administrative expenses for the three months ended September 30, 2024 decreased by 9.8 million, mainly due to reduced stock-based compensation and insurance expenses[87] - General and administrative expenses for the nine months ended September 30, 2024 decreased by 28.9 million, driven by lower stock-based compensation and accounting-related expenses[88] Net Losses and Revenue - The company incurred net losses of 65.6 million for the three and nine months ended September 30, 2024, respectively, with no revenue generated from sales to customers[79] AI and Technology Development - AI for Safety prediction accuracy increased from less than 60% in 2022 to 95% in 2024, meeting the target set at the start of the year[73] - The company is focusing on EV B-sample development, improving Li-Metal cell safety, and accelerating electrolyte development as part of its future outlook[77] Production and Facility Updates - The company is on track to build the B-sample line at its OEM partner's facility in South Korea as of September 30, 2024[70] - The company has converted two of its EV A-sample lines to be dedicated to UAM cell production[72] Interest Income and Fair Value Adjustments - Interest income for the three and nine months ended September 30, 2024 was 11.8 million, respectively, compared to 12.5 million for the same periods in 2023, reflecting decreases of 0.7 million due to lower investment balances[90] - The company recorded a gain of 3.3 million for the three and nine months ended September 30, 2024, respectively, from the change in fair value of Sponsor Earn-Out liabilities, compared to gains of 5.4 million for the same periods in 2023[91] - Miscellaneous expense for the three months ended September 30, 2024 was 0.1 million in the same period in 2023, driven by a decline in the fair value of investments in publicly traded companies[92] Income Taxes - The provision for income taxes decreased to 0.4 million for the three and nine months ended September 30, 2024, respectively, compared to 0.7 million for the same periods in 2023, primarily due to local taxes in foreign jurisdictions[94] Cash and Investments - As of September 30, 2024, the company had total cash and cash equivalents of 207.0 million[96] - The company's cash on hand and marketable securities are expected to meet working capital and capital expenditure requirements for at least 12 months and fund operations to commercialization[98] Cash Flow Activities - Net cash used in operating activities for the nine months ended September 30, 2024 was 65.6 million, partially offset by stock-based compensation expense of 6.0 million[100] - Net cash provided by investing activities for the nine months ended September 30, 2024 was 12.3 million for the same period in 2023[105] Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024 were $12.0 million, primarily related to purchases of lab machinery and equipment for production lines and facilities[107] - The company expects capital expenditures for the fourth quarter of 2024 to decrease compared to the corresponding period in 2023 due to higher capital expenditure for new facilities in the prior year[107]