SES AI (US:SES)2024-02-26 21:15Commercialization and Production - In 2023, the company achieved significant milestones in the commercialization of Li-Metal technology, including the world's first automotive B-sample joint development agreement with major automakers such as GM, Hyundai, and Honda[2][12]. - The company increased production of large automotive Li-Metal cells from less than 1,000 per year in 2022 to about 1,000 per month by the end of 2023, demonstrating improved manufacturability[9][30]. - The company plans to convert one A-sample line in South Korea to exclusively produce UAM cells, incorporating the latest production quality control measures and Avatar AI integration[22]. Quality Control and AI Integration - The Avatar AI model's prediction accuracy improved from 60% to 92% by the end of 2023, aided by increased production quality control checkpoints from less than 300 to over 600 per cell[9][30]. - The company plans to enhance its production quality control plan, increasing checkpoints from about 600 to approximately 1,500, integrating advanced imaging techniques with the Avatar AI model[13]. - The company aims to achieve 95% incident prediction accuracy for the Avatar AI model in 2024, moving towards a near 100% safety guarantee for automotive applications[10][27]. Financial Performance - For 2024, the company expects cash usage from operations to be between $90M and $100M, with capital expenditures projected between $20M and $30M[31]. - The company ended 2023 with $332M in liquidity, supporting its commercialization milestones[30]. - Net loss for the year ended December 31, 2023, was $53,400,000, compared to a net loss of $50,993,000 in 2022, indicating a 2.5% increase in losses[37]. - Total operating expenses for 2023 were $78,158,000, down from $79,573,000 in 2022, reflecting a decrease of about 1.8%[35]. - Cash and cash equivalents decreased from $106,623,000 in 2022 to $85,671,000 in 2023, a decline of approximately 19.6%[33]. - The company reported interest income of $16,685,000 for the year ended December 31, 2023, compared to $6,196,000 in 2022, an increase of approximately 168.5%[35]. Assets and Liabilities - Total assets decreased from $440,439,000 in 2022 to $406,810,000 in 2023, a decline of approximately 7.6%[33]. - Total current assets fell from $396,641,000 in 2022 to $348,627,000 in 2023, representing a decrease of about 12.1%[33]. - Total liabilities decreased slightly from $48,900,000 in 2022 to $47,860,000 in 2023, a reduction of about 2.1%[33]. - The weighted-average common shares outstanding increased from 315,051,508 in 2022 to 316,537,274 in 2023, an increase of approximately 0.5%[35]. Sustainability and Future Growth - The company is focusing on sustainability initiatives, including novel dry electrode processing and recycling, to reduce costs and CO2 footprint[24]. - The energy density of Li-Metal batteries is projected to be about 60% higher than current Li-ion batteries, making Urban Air Mobility (UAM) a profitable business opportunity[19][21]. - The company anticipates future growth in battery technology and aims to integrate its products into electric vehicles and Urban Air Mobility applications[38].