Amprius Technologies(AMPX) - 2025 Q2 - Quarterly Report

Part I - Financial Information Item 1. Financial Statements (Unaudited) The company reported significant revenue growth and a narrowed net loss for the first half of 2025, reflecting strong battery sales and improved operational performance Condensed Consolidated Balance Sheets The balance sheet as of June 30, 2025 shows increased total assets and stockholders' equity, alongside a reduction in total liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $54,189 | $55,155 | | Accounts receivable, net | $10,766 | $5,580 | | Inventories | $4,335 | $6,574 | | Total Assets | $123,041 | $121,125 | | Current Liabilities | | | | Accounts payable | $3,739 | $7,424 | | Total Liabilities | $46,387 | $51,653 | | Total Stockholders' Equity | $76,654 | $69,472 | Condensed Consolidated Statements of Operations Significant revenue growth and a positive quarterly gross profit led to a substantially reduced net loss for the three and six months ended June 30, 2025 Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $15,067 | $3,345 | $26,351 | $5,681 | | Gross Profit (Loss) | $1,340 | $(6,531) | $(1,021) | $(10,976) | | Loss from Operations | $(6,813) | $(12,932) | $(16,484) | $(23,251) | | Net Loss | $(6,370) | $(12,517) | $(15,741) | $(22,403) | | Net Loss Per Share | $(0.05) | $(0.13) | $(0.13) | $(0.24) | Condensed Consolidated Statements of Cash Flows Cash flow for the first half of 2025 shows consistent use in operations, reduced investing outflows, and significant inflows from financing activities Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(18,391) | $(17,738) | | Net cash used in investing activities | $(1,629) | $(5,501) | | Net cash provided by financing activities | $19,261 | $25,125 | Notes to Condensed Consolidated Financial Statements The notes provide details on liquidity, revenue recognition, customer concentration, and remaining performance obligations - The company believes its cash and cash equivalents of $54.2 million, plus potential funds from its At Market Issuance Sales Agreement, are sufficient to fund obligations for at least twelve months[27] - As of June 30, 2025, two customers represented approximately 71% of total accounts receivable, while three customers represented 35%, 13%, and 11% of revenue for the six-month period[43][48] - The aggregate amount of remaining performance obligations was approximately $29.1 million as of June 30, 2025, expected to be recognized as revenue within one year[61] Revenue Disaggregation for the Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Sale of battery products | $25,526 | $5,681 | | Customization design services | $325 | $0 | | Other revenue – government grants | $500 | $0 | | Total revenue | $26,351 | $5,681 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses strong revenue growth from SiCore batteries, improved margins, rising operating expenses, and future manufacturing expansion plans Overview The company develops high-performance silicon anode batteries, rapidly scaling its SiCore platform and expanding its customer base through strategic partnerships - The company's customer engagements grew to over 360 since inception, with shipments to 93 customers during Q2 2025, including 43 new customers[87] - Amprius has access to up to 1.8 GWh of annual production for SiCore batteries through its partner Berzelius and global contract manufacturers[89] - In July 2025, the company delivered SiCore battery cells from its Fremont facility to customers including AALTO Airbus[91] Results of Operations Revenue surged 364% in the first half of 2025, driving significant gross margin improvement and a 29% reduction in operating loss - The $20.7 million (364%) increase in revenue for the first six months of 2025 was primarily driven by a $19.9 million increase in battery sales from the SiCore product line[116] - Cost of revenue increased by 64% for the six-month period, a much lower rate than revenue growth, due to higher volumes of SiCore battery purchases and increased production costs[117] - R&D expenses for the six-month period increased by 28% to $4.2 million, mainly due to higher personnel-related costs from increased headcount[121] Results of Operations Comparison (in thousands) | | Six months ended June 30, | Change | | --- | --- | --- | | | 2025 | 2024 | $ | % | | Revenue | $26,351 | $5,681 | $20,670 | 364% | | Gross profit (loss) | $(1,021) | $(10,976) | $9,955 | 91% | | Loss from operations | $(16,484) | $(23,251) | $6,767 | (29)% | | Net loss | $(15,741) | $(22,403) | $6,662 | (30)% | Liquidity and Capital Resources The company maintains sufficient liquidity for the next year through cash reserves and its Sales Agreement, while managing capital expenditures for facility expansions - The company's primary sources of liquidity are cash on hand ($54.2 million at June 30, 2025), revenue, and proceeds from its At Market Issuance Sales Agreement[126] - The Sales Agreement has generated gross proceeds of approximately $53.3 million since inception, with $46.7 million remaining available for future sales[128][219] - Expansion of the Fremont, CA facility is supported by a $10.5 million contract from the U.S. Government Defense Innovation Unit awarded in July 2025[134] - The company is exploring a potential sublease of its Brighton, Colorado facility, with the construction schedule dependent on funding and market conditions[135] Quantitative and Qualitative Disclosures About Market Risk As a "smaller reporting company," Amprius is not required to provide the information requested under this item - The company is not required to provide this information as it qualifies as a "smaller reporting company" under Regulation S-K[151] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Based on an evaluation as of the period end, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[152] - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[153] Part II - Other Information Legal Proceedings The company is not currently a party to any litigation or legal proceedings that are expected to have a material adverse effect on its business - Amprius is not currently involved in any legal proceedings that are likely to materially and adversely affect its business[154] Risk Factors The company faces significant risks related to technology performance, manufacturing scale-up, market competition, capital needs, and regulatory compliance - Key risks include potential battery performance failures, reliance on third-party manufacturers, and challenges in scaling up high-volume manufacturing[156] - The company faces intense competition and its success depends on the growth of markets for battery-powered applications[157] - Financial risks include a history of losses, the potential need for additional capital, and maintaining effective internal controls[157] - Regulatory and geopolitical risks include reliance on foreign suppliers, potential tariffs, and compliance with export controls and anti-corruption laws[157] Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the period - None[326] Other Information No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter[329] Exhibits This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files