Amprius Technologies(US:AMPX)2025-05-08 21:13Part I - Financial Information Item 1. Financial Statements (Unaudited) Amprius reported Q1 2025 revenue of $11.3 million, a gross loss of $2.4 million, and a net loss of $9.4 million Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $118.5 million, with cash at $48.4 million, and total liabilities at $48.1 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $48,417 | $55,155 | | Accounts receivable, net | $10,396 | $5,580 | | Inventories | $4,003 | $6,574 | | Total current assets | $66,123 | $68,763 | | Total Assets | $118,472 | $121,125 | | Current Liabilities | | | | Accounts payable | $6,225 | $7,424 | | Total current liabilities | $13,960 | $17,210 | | Total Liabilities | $48,076 | $51,653 | | Total Stockholders' Equity | $70,396 | $69,472 | Condensed Consolidated Statements of Operations Q1 2025 revenue surged to $11.3 million, resulting in a gross loss of $2.4 million and a narrowed net loss of $9.4 million Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $11,284 | $2,336 | | Cost of revenue | $13,645 | $6,781 | | Gross loss | ($2,361) | ($4,445) | | Research and development | $2,003 | $1,581 | | Selling, general and administrative | $5,307 | $4,293 | | Loss from operations | ($9,671) | ($10,319) | | Net loss | ($9,371) | ($9,886) | | Net loss per share (basic and diluted) | ($0.08) | ($0.11) | Condensed Consolidated Statements of Cash Flows Net cash used in operations increased to $14.1 million in Q1 2025, with $8.5 million provided by financing activities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($14,126) | ($9,779) | | Net cash used in investing activities | ($913) | ($3,896) | | Net cash provided by financing activities | $8,505 | $8,159 | | Net decrease in cash | ($6,534) | ($5,516) | Notes to Condensed Consolidated Financial Statements The company's $48.4 million cash is deemed sufficient for 12 months, despite a history of losses and customer concentration - The company believes its cash and cash equivalents of $48.4 million as of March 31, 2025, will be sufficient to fund obligations for at least the next twelve months. This is supplemented by an At Market Issuance Sales Agreement, which has provided net proceeds of $42.2 million since its inception29 - As of March 31, 2025, four customers represented approximately 71% of total accounts receivable, indicating significant customer concentration45 - The company had remaining performance obligations of approximately $36.8 million as of March 31, 2025, which are expected to be recognized as revenue within one year63 Revenue by Geographic Area (in thousands) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $1,922 | $822 | | Rest of the world | $9,362 | $1,514 | | Total | $11,284 | $2,336 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes Q1 2025 revenue growth to SiCore batteries, scaling production, and managing liquidity through financing Overview Amprius develops SiCore and SiMaxx batteries, securing 1.8 GWh SiCore capacity and pausing GWh-scale facility plans - The company's primary product platforms are SiCore and SiMaxx batteries, targeting aviation, EV, and LEV industries91 - Amprius has secured access to up to 1.8 GWh of annual production capacity for its SiCore batteries through a supply agreement with Berzelius and three global contract manufacturers9297 - Plans for a GWh-scale manufacturing facility in Brighton, Colorado are on hold, pending funding and monitoring of industry dynamics. The company is exploring a potential sublease of the property9498 Results of Operations Q1 2025 revenue increased 383% to $11.3 million, reducing gross loss to $2.4 million despite rising operating expenses Comparison of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $11,284 | $2,336 | $8,948 | 383% | | Cost of revenue | $13,645 | $6,781 | $6,864 | 101% | | Gross loss | ($2,361) | ($4,445) | $2,084 | (47)% | | Gross margin | (21)% | (190)% | - | 169% | | R&D expense | $2,003 | $1,581 | $422 | 27% | | SG&A expense | $5,307 | $4,293 | $1,014 | 24% | | Net loss | ($9,371) | ($9,886) | $515 | (5)% | - The 383% revenue increase was primarily due to an $8.6 million increase in sales of batteries, driven by sales of SiCore batteries115 Liquidity and Capital Resources Amprius holds $48.4 million cash, relying on its At Market Financing program for liquidity despite increased operational cash usage - The company had cash and cash equivalents of $48.4 million as of March 31, 2025121 - The company has an At Market Financing agreement for up to $100.0 million, with approximately $57.8 million remaining available as of March 31, 2025123 - Net cash used in operating activities increased to $14.1 million in Q1 2025 from $9.8 million in Q1 2024, primarily due to the timing of cash receipts from customers and payments to suppliers133 - Contractual obligations consist primarily of operating leases for facilities in California and Colorado, with total future minimum lease payments of approximately $69.1 million over a weighted-average term of 13.2 years129 Quantitative and Qualitative Disclosures About Market Risk As a 'smaller reporting company,' Amprius is exempt from providing market risk disclosures - The company is not required to provide information under Item 3 as it qualifies as a 'smaller reporting company' as defined by Item 10 of Regulation S-K143 Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025144 - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting145 Part II - Other Information Legal Proceedings The company is not currently involved in any legal proceedings expected to materially impact its business - Amprius is not currently involved in any legal proceedings that are likely to materially impact its business146 Risk Factors Key risks include battery performance, manufacturing reliance, scaling, competition, capital needs, financial losses, and regulatory compliance Summary of Risk Factors Material risks include battery performance, third-party manufacturing, scaling, competition, capital, losses, IP, and regulatory compliance - Key operational risks include potential battery performance failures, reliance on third-party manufacturers, and difficulties in scaling up high-volume manufacturing lines while meeting cost targets148 - Business and financial risks include intense competition, dependence on the growth of battery-powered markets, the need for additional capital, a history of financial losses, and maintaining effective internal controls149 - Regulatory and market risks include protecting intellectual property, compliance with extensive legal and environmental regulations, impacts from U.S. tariffs and trade policy, and maintaining the NYSE listing149 Risks Related to Our Technology, Products and Manufacturing Risks include battery defects, third-party manufacturing reliance, high-volume production challenges, and GWh-scale facility uncertainties - The company's batteries may have design or manufacturing defects, which could lead to repairs, recalls, and termination of orders150 - Amprius relies on third parties, including Berzelius and other contract manufacturers, to produce its SiCore batteries, subjecting it to risks of price increases, supply disruptions, and quality control issues152157 - The company may not succeed in developing its own high-volume manufacturing lines that meet requirements for quality, yield, and throughput, which is critical for scaling production and achieving cost targets154160 Risks Related to Our Business and Industry Business risks include intense competition, market growth dependency, capital needs, financial losses, customer concentration, and cybersecurity threats - The battery market is intensely competitive, with competitors that may have significantly greater resources188 - The company may require additional capital to support business growth, which might not be available on commercially reasonable terms. The At Market Financing program is a key potential source of funds205206 - The company has a history of financial losses, incurring a net loss of $9.4 million in Q1 2025, and expects to incur continuing losses for the foreseeable future219 - Three customers accounted for approximately 66% of revenue during the three months ended March 31, 2025, indicating significant customer concentration risk202 Risks Related to Litigation and Regulatory Compliance Regulatory risks include environmental laws, trade policies, export controls, reliance on Chinese suppliers, and anti-corruption compliance - The company is subject to numerous environmental, health, and safety laws, and failure to comply could result in substantial fines and liabilities261262 - Reliance on suppliers in China subjects the company to risks from U.S. trade policy, tariffs, and potential Chinese export restrictions on key battery materials or finished products282285286 - The company's products and investments may be subject to U.S. export controls, economic sanctions, and foreign investment regulations like CFIUS, which could impair its ability to compete internationally or raise capital278280 Risks Related to Ownership of Our Common Stock Stock ownership risks include NYSE listing compliance, anti-takeover provisions, reduced disclosure, dilution from stock sales, and worthless warrants - The company must maintain compliance with NYSE listing standards to avoid delisting, having previously regained compliance after its stock price fell below the $1.00 minimum291 - Sales of substantial amounts of common stock, including through the At Market Financing program, could reduce the market price and cause significant dilution to existing stockholders307310 - There is no guarantee that the company's outstanding warrants (public, private, and PIPE) will be 'in the money' before they expire, potentially rendering them worthless314 - As an 'emerging growth company' and 'smaller reporting company,' Amprius takes advantage of certain exemptions from disclosure requirements, which could make its securities less attractive to investors304306 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None320 Defaults Upon Senior Securities The company reported no defaults upon senior securities - None321 Mine Safety Disclosures The company reported no mine safety disclosures - None322 Other Information No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter323 Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents and certifications - The exhibits include corporate governance documents, an offer letter for Tom Stepien, certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and Inline XBRL documents324