SES AI (US:SES)2025-11-12 21:16Revenue and Financial Performance - Revenue from customers for the three months ended September 30, 2025, was $7.1 million, and for the nine months, it was $16.4 million, primarily from service-related contracts and ESS product shipments [94]. - Total operating expenses for the three months ended September 30, 2025, were $22.3 million, a decrease of 34.9% compared to the same period in 2024 [93]. - Interest income for the three months ended September 30, 2025, was $2.3 million, down from $3.7 million for the same period in 2024, reflecting a decrease of $1.4 million [109]. - Net cash used in operating activities was $48.0 million for the nine months ended September 30, 2025, primarily due to a net loss of $56.0 million [121]. - The net decrease in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025, was $93.5 million, compared to a decrease of $19.6 million for the same period in 2024 [118]. - The company expects to sustain substantial operating expenses without generating sufficient revenues for several years, relying on cash on hand and marketable securities for at least 12 months [116]. Expenses and Cost Management - Research and development expenses for the three months ended September 30, 2025, decreased by $8.8 million, or 36%, to $15.6 million compared to the same period in 2024 [100]. - General and administrative expenses decreased by $3.1 million, or 32%, to $6.7 million for the three months ended September 30, 2025, compared to $9.8 million for the same period in 2024 [106]. - Miscellaneous expenses increased to $0.7 million for the three months ended September 30, 2025, from $0.5 million for the same period in 2024, primarily due to foreign currency translation losses [111]. - Capital expenditures were $2.1 million for the nine months ended September 30, 2025, significantly lower than $12.0 million for the same period in 2024 [125]. Acquisitions and Strategic Initiatives - The acquisition of UZ Energy for approximately RMB 183.5 million ($25.8 million) is expected to enhance the company's capabilities in the ESS market [92]. - The company transitioned from developing A-Sample batteries to B-Sample batteries in 2024 to meet automotive manufacturers' requirements [90]. - The company has converted two EV A-sample production lines to focus on UAM cell production, indicating a strategic shift towards urban air mobility applications [90]. Technology and Innovation - The company achieved a 95% prediction accuracy in its AI for Safety program in 2024, meeting its target for the year [87]. - AI for Manufacturing aims to optimize cell design and improve manufacturing quality, potentially accelerating production timelines [86]. - The company believes its AI-enhanced Li-Metal battery technology can charge to 80% in less than 15 minutes, significantly reducing charging times for EVs [88]. Financial Obligations and Assets - The company had total contractual obligations of $26.2 million as of September 30, 2025, including $16.2 million in purchase obligations and $9.9 million in operating lease obligations [128]. - The Company evaluates goodwill and indefinite-lived intangible assets for impairment annually or more frequently based on ASC Topic 350, with the latest assessment indicating no impairment as of September 30, 2025 [134]. - The fair value of deferred consideration related to business combinations is determined using management judgment and contingent on future financial performance metrics [134]. - Intangible assets acquired from business combinations, including trademarks and patents, are initially measured at their estimated fair values and amortized on a straight-line basis over their estimated useful lives [133].