Solid Power(US:SLDP)2022-08-10 00:29Financial Data and Key Metrics Changes - The company generated second quarter revenue of $2.6 million, bringing year-to-date revenue to $4.8 million, which is at the high end of the previous full year guidance range [19] - Operating expenses for the second quarter were $17.3 million, reflecting increased direct program costs driven by higher revenues [20] - The company recognized a gain of $27.5 million based on the market value change of warrant liabilities, resulting in a net income of $13.7 million despite an operating loss of $14.7 million [21] - Total liquidity at the end of the quarter was just over $534 million, consisting of cash, marketable securities, and long-term investments [22] Business Line Data and Key Metrics Changes - The company is on track to deliver 20 amp hour cells to Ford and BMW in the third quarter for initial testing, marking a significant step towards full-scale EV cell production [8][9] - The EV cell pilot line has been completed and is dedicated to the production of full-scale EV cell designs, with expectations to enter the A sample validation phase later this year [11][12] - Construction of the electrolyte production facility is progressing well, although there are delays due to supply chain challenges, with powder production now expected to begin in the first quarter of 2023 [14][15] Market Data and Key Metrics Changes - The company is experiencing supply chain challenges that have affected equipment delivery times, but it has managed to increase electrolyte production at its Louisville facility to meet near-term needs [14][15] - The company anticipates that the slight delay in the start of production at the electrolyte facility will not impact its cell development and delivery timeline [15] Company Strategy and Development Direction - The company is focused on strengthening its technology, development, and production capabilities while delivering shareholder value [29] - Plans are in place for an event in the first half of 2023 to showcase new operational capabilities and technology advancements [17] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's ability to manage supply chain challenges while keeping development plans largely on track [18][28] - The company expects total revenue for 2022 to exceed its guidance range, with a projected ending liquidity of $420 million to $440 million [26] Other Important Information - The company is executing its operational and development plans in line with projections, with cash used in operations during the first half of 2022 just under $23 million [22][23] Q&A Session Summary Question: Are OEMs looking for multiple solid-state sources? - Management indicated that while they cannot speak to specific strategies of existing partners, there is a general trend among OEMs to avoid sole sourcing, particularly for lithium-ion technology [32] Question: Has inflation changed the expense outlook or capital expenditure view? - Management stated that inflation has not significantly impacted the expense outlook, with minor fluctuations being managed effectively [33]