QuantumScape(US:QS)2022-07-28 00:26Financial Data and Key Metrics Changes - In Q2 2022, the company reported operating expenses of $96 million and a GAAP net loss of $95 million, which was in line with expectations [15] - Cash operating expenses for the quarter were $60 million, with full-year expectations ranging from $225 million to $275 million [16] - Capital expenditures (CapEx) for Q2 were approximately $28 million, below the guidance range of $35 million to $65 million, leading to a revised full-year CapEx projection of $175 million to $225 million [17][18] - The company expects to enter 2023 with over $950 million in liquidity, exceeding previous guidance of over $800 million [21] Business Line Data and Key Metrics Changes - The company achieved a peak of over 5,000 weekly separator film starts during the quarter, with a goal of reaching 8,000 starts by year-end [11] - Progress was made on 24-layer prototype cells, which are crucial for automotive customer delivery [6][12] Market Data and Key Metrics Changes - The company has engaged with six prospective automotive customers, including top 10 manufacturers and luxury automakers, indicating robust demand for next-generation solid-state batteries [13][12] Company Strategy and Development Direction - The company aims to deliver 24-layer A-sample cells to automotive customers by year-end, which is essential for the automotive qualification process [14] - The operational focus includes improving cell quality and throughput, with the phase two engineering line now operational, allowing for increased production capacity [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges related to production quality and throughput but expressed optimism about progress made on 24-layer cells [7][14] - The company remains focused on strategic partnerships and customer engagement to drive technology to market [13][36] Other Important Information - The company is strategically planning fundraising and capital spending, forecasting a cash runway extending through the end of 2024 [34] - The relationship with Volkswagen is expected to remain strong despite the creation of PowerCo, with ongoing collaboration on technology development [37] Q&A Session Summary Question: Can you provide more detail on the lower CapEx spending? - The company is pushing approximately $150 million of CapEx into 2023 due to deliberate postponements and supply chain challenges [44] Question: What is required to go from A-sample to B-sample? - The A-sample is defined by OEM requirements, while the B-sample is closer to production processes, typically involving small tweaks [47] Question: What is the timeline for A, B, and C samples? - Assuming A-sample delivery by the end of this year, the C-sample is expected by late 2025 [57] Question: How does the delivery of a C-sample relate to QS-1? - The C-sample is essential for QS-1 commissioning, as it provides learnings necessary for scaling up production [65] Question: What is the significance of the gold-standard test conditions? - The gold-standard test conditions demonstrate the performance capabilities of lithium-metal cells under optimal conditions, which is a key indicator of technology progression [71]