SES AI (SES)2024-07-30 20:16Financial Performance - As of June 30, 2024, the company has not generated any revenue from sales, incurring net losses of $19.9 million for the three months ended June 30, 2024, compared to $12.9 million for the same period in 2023[94]. - For the six months ended June 30, 2024, the company incurred a net loss of $35.5 million, compared to a net loss of $29.2 million for the same period in 2023[116][117]. - Total cash outflow for the six months ended June 30, 2024, was $30.9 million, a significant decrease from $55.2 million in 2023[113]. Research and Development - Research and development expenses increased by 137% to $15.1 million for the three months ended June 30, 2024, compared to $6.3 million for the same period in 2023[97]. - The company has spent $30.9 million on gross research and development activities for the six months ended June 30, 2024, compared to $26.3 million for the same period in 2023[94]. - The company has signed joint development agreements (JDAs) with major automakers, including Hyundai, to further research and develop B-sample batteries, with plans to transition to C-sample in 2026 and commercial production in 2027[83][91]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $24.6 million, an increase of 28% from $19.3 million in the same period in 2023[95]. - General and administrative expenses decreased by 26% to $9.6 million for the three months ended June 30, 2024, compared to $12.9 million for the same period in 2023[102]. - The company expects to sustain substantial operating expenses without generating sufficient revenues for several years due to the capital-intensive nature of its business[111]. Cash and Investments - Cash and cash equivalents as of June 30, 2024, totaled $54.8 million, with investments in marketable debt and equity securities amounting to $239.9 million[110]. - Net cash used in operating activities was $31.1 million for the six months ended June 30, 2024, compared to $30.9 million for the same period in 2023[116][117]. - The company reported a net cash provided by investing activities of $0.5 million for the six months ended June 30, 2024, compared to a net cash used of $23.8 million in 2023[118]. Environmental Initiatives - The company is executing initiatives to improve environmental sustainability, including dry electrode technology and Li-Metal recycling[89]. Other Financial Metrics - Interest income for the three months ended June 30, 2024, was $4.0 million, slightly down from $4.1 million for the same period in 2023[105]. - The provision for income taxes for the six months ended June 30, 2024, increased to $0.3 million, compared to $0.5 million for the same period in 2023[109]. - Miscellaneous income for the six months ended June 30, 2024, was $0.3 million, a decrease from $0.4 million in 2023[108]. - Capital expenditures for the six months ended June 30, 2024, were $10.5 million, an increase from $7.8 million in 2023, primarily for lab machinery and equipment[120]. - The company has total contractual obligations of $56.4 million as of June 30, 2024, including purchase obligations and operating lease obligations[122]. Technology Development - The Avatar AI prediction accuracy improved from less than 60% in 2022 to 92% in 2023, with a target of reaching 95% by the end of 2024[87]. - The company is converting one of its EV A-sample lines to UAM cell production by the end of 2024, aiming to enhance profitability for UAM operators[85].