QuantumScape(QS) - 2024 Q3 - Quarterly Results

Battery Technology Development - QuantumScape has begun producing low volumes of its first B-sample cells, QSE-5, with an energy density of over 800 Wh/L and fast-charging capability from 10% to 80% in less than 15 minutes [2]. - The QSE-5 B-sample cells are the first anode-free solid-state lithium-metal cells designed for automotive applications, marking a significant milestone in battery technology [3]. - The company is focused on developing solid-state battery technology, facing significant challenges in achieving high-volume production and commercialization [19]. - The company is at an early stage of testing its battery technology for consumer electronics, with potential technical hurdles ahead [19]. Financial Performance - Adjusted EBITDA loss for 2024 is forecasted to be between $280 million and $300 million, primarily due to higher legal fees and settlement accruals [8]. - Total operating expenses for the three months ended September 30, 2024, were $130,158, an increase of 7.7% compared to $120,870 for the same period in 2023 [14]. - Research and development expenses increased to $96,994 for the three months ended September 30, 2024, up from $88,154 in the same period last year, representing a growth of 9.9% [14]. - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $(119,572), compared to $(110,617) for the same period in 2023, reflecting an increase in loss of 8.7% [14]. - Adjusted EBITDA for the three months ended September 30, 2024, was $(71,573), compared to $(62,493) for the same period in 2023, indicating a decline of 14.5% [16]. - Cash, cash equivalents, and restricted cash at the end of the period were $192,753, down from $268,872 at the end of the same period last year, a decrease of 28.3% [15]. - Net cash used in operating activities for the three months ended September 30, 2024, was $(92,802), compared to $(62,557) for the same period in 2023, an increase of 48.3% [15]. - The company reported a comprehensive loss attributable to common stockholders of $(118,114) for the three months ended September 30, 2024, compared to $(107,225) for the same period in 2023, an increase of 10.8% [14]. - The basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.23), unchanged from the same period in 2023 [14]. Capital and Liquidity - Capital expenditures in Q3 2024 were $17.9 million, primarily for equipment purchases related to low-volume QSE-5 prototype production and the Cobra process [8]. - The company has extended its cash runway forecast by 18 months into 2028, with liquidity at $841 million as of Q3 2024 [8]. - Total current assets decreased from $1,083.5 million in December 2023 to $853.7 million in September 2024 [13]. - Total liabilities remained relatively stable, decreasing slightly from $161.8 million in December 2023 to $161.4 million in September 2024 [13]. Strategic Collaborations and Risks - The collaboration with PowerCo aims to bring QSE-5 technology into mass production at gigawatt-hour scale, with a $130 million prepayment contingent on satisfactory technical progress [5]. - There are risks associated with the collaboration with Volkswagen and PowerCo, which could impact future business prospects and technology industrialization [19]. - Delays in acquiring and operating new manufacturing equipment may hinder production capabilities and development efforts [19]. - The company may need to raise additional funds, potentially leading to dilution of stock ownership for investors [19]. - The company cautions that actual results may differ materially from forward-looking statements due to various risks and uncertainties [19]. - The company emphasizes the importance of protecting its intellectual property to maintain its competitive position [19]. - There may be challenges in controlling operational costs and achieving competitive pricing for solid-state battery components [19]. - The company has encountered delays in increasing production of engineering samples, which have previously slowed development efforts [19]. - The company disclaims any duty to update forward-looking statements unless required by law, highlighting the uncertainty of future outcomes [19]. Corporate Governance - QuantumScape's board of directors is transitioning with the addition of two new members, enhancing its focus on product and industrialization [10].