SES AI (SES)2025-02-28 21:05Revenue and Financial Performance - Revenue for the year ended December 31, 2024 was $2.0 million, primarily from service-related contracts with OEMs [236]. - Total revenue for 2024 was $2,040,000, compared to no revenue in 2023 [293]. - Gross profit for 2024 was $1,288,000, with a cost of revenues of $752,000 [293]. - The company incurred net losses of $100.2 million and $53.4 million for the years ended December 31, 2024 and 2023, respectively [235]. - Net loss for 2024 was $100,185,000, compared to a net loss of $53,400,000 in 2023, indicating an increase in losses of 87.5% [293]. - The company reported a total comprehensive loss of $100,805,000 in 2024, compared to $53,762,000 in 2023 [293]. - Interest income for the year ended December 31, 2024 was $15.0 million, a decrease of $1.7 million from $16.7 million in 2023 [249]. Expenses - Cost of revenue for the year ended December 31, 2024 was $0.8 million, mainly attributable to personnel costs [238]. - Research and development expenses increased by $41.5 million, or 135.2%, to $72.1 million for the year ended December 31, 2024, compared to $30.7 million in 2023 [241]. - General and administrative expenses decreased by $9.1 million, or 19.1%, to $38.4 million for the year ended December 31, 2024, compared to $47.5 million in 2023 [247]. - Total share-based compensation expense for 2024 was $19.935 million, down from $20.649 million in 2023, a decrease of 3.4% [422]. - The company recorded stock-based compensation expense of $19.9 million in 2024, contributing to the net loss reported [258]. Cash and Investments - As of December 31, 2024, the company had total cash and cash equivalents of $128.8 million and short-term investments in marketable securities of $133.7 million [254]. - Cash provided by investing activities was $108.2 million for the year ended December 31, 2024, compared to a cash outflow of $32.7 million for 2023 [261]. - Net cash used in operating activities was $66.1 million for the year ended December 31, 2024, primarily due to a net loss of $100.2 million [258]. - The company had received but not yet earned 12 billion Korean won (approximately $8.1 million) as of December 31, 2024, disclosed as a noncurrent liability [387]. - The company had cash and cash equivalents of $128.8 million as of December 31, 2024, an increase from $85.7 million as of December 31, 2023 [378]. Liabilities and Obligations - Total liabilities rose to $51,475,000 in 2024 from $47,860,000 in 2023, an increase of 5% [291]. - The total contractual obligations as of December 31, 2024, amount to $46.5 million, with $33.6 million in purchase obligations and $12.9 million in operating lease obligations [264]. - The total future minimum lease payments under existing operating leases as of December 31, 2024, amounted to $10.562 million after imputed interest [392]. Research and Development - The company is focused on scaling up manufacturing processes to achieve commercialization in EVs and UAMs at a global scale [233]. - The company expects research and development expenses to remain consistent in 2025 compared to 2024 [241]. - Research and development credits totaled $8.575 million for the year ended December 31, 2024, compared to $23.065 million for the year ended December 31, 2023 [377]. - Research and development costs are expensed as incurred, including employee compensation, materials, and consultant payments [356]. Stock and Equity - As of December 31, 2024, the Company had 317,676,034 shares of Class A common stock and 43,881,251 shares of Class B common stock issued and outstanding [406]. - The total common stock available for future issuance as of December 31, 2024, is 76,795,708 shares [416]. - The SES AI Corporation 2021 Plan has 37,263,345 shares available for future issuance as of December 31, 2024 [419]. - The number of outstanding RSUs increased to 13,282,923 by December 31, 2024, from 6,359,474 at the end of 2023, a growth of 108.5% [423]. Foreign Currency and Risk Management - The company is exposed to foreign currency risks, particularly in China and South Korea, but engages in minimal transactions outside of its functional currency [275]. - The company has not hedged its foreign currency exposure but may consider doing so in the future [275]. - A 100 basis point increase in U.S. interest rates would decrease the fair value of short-term investments by approximately $0.5 million [274]. Compliance and Governance - The company’s financial statements are presented in conformity with U.S. generally accepted accounting principles [280]. - The company’s management is responsible for the financial statements, while the independent auditor provides an opinion based on the audit [281]. - The company’s audit included evaluating the accounting principles used and significant estimates made by management [283].