Amprius Technologies, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024; comparisons are with Q1 2023 unless stated otherwise. Amprius develops and sells silicon-anode lithium-ion batteries, mainly for aviation applications. The unaudited financial statements are prepared under U.S. GAAP.
Financial performance and position
| Metric | Q1 2024 | Q1 2023 or prior date |
|---|---|---|
| Revenue | $2.336 million | $0.679 million |
| Gross loss / gross margin | $(4.445) million / (190)% | $(3.517) million / (518)% |
| Operating expenses | $5.874 million | $6.234 million |
| Operating loss | $(10.319) million | $(9.751) million |
| Net loss / loss per share | $(9.886) million / $(0.11) | $(9.102) million / $(0.11) |
| Cash used in operations | $(9.779) million | $(6.492) million |
| Capital expenditures | $3.896 million | $1.140 million |
| Cash and cash equivalents at period end | $39.045 million | $45.761 million at Dec. 31, 2023 |
| Total liabilities | $44.752 million | $47.936 million at Dec. 31, 2023 |
- Revenue rose 244%, primarily from higher battery sales, including SiCore; Q1 2023 also included $0.209 million of government-grant revenue. Three customers represented 55% of Q1 2024 revenue, compared with 76% in Q1 2023.
- Cost of revenue rose 62%, faster in absolute dollars than revenue. Gross loss widened by $0.928 million, although gross margin improved from (518)% to (190)%.
- R&D increased 98% to $1.581 million, mainly from additional personnel. SG&A declined 21% to $4.293 million, largely due to lower nonrecurring professional fees and insurance costs.
- Cash, cash equivalents and restricted cash totaled $40.301 million at March 31, including $1.256 million of restricted cash. The company reported no debt; liabilities primarily include operating leases. Operating lease liabilities were $36.086 million, with approximately $71.014 million of undiscounted future lease payments.
- Financing provided $8.159 million in Q1, mainly from common-stock sales under the at-the-market (ATM) agreement. Common shares outstanding increased to 92.274 million from 88.869 million at year-end.
Outlook, liquidity, and notable items
- Management stated that cash and cash equivalents were expected to fund obligations for at least 12 months from issuance of the financial statements. The company has recurring losses and negative operating cash flow, expects further losses and higher operating and capital spending, and may need additional financing.
- The ATM permits up to $100 million of aggregate share sales. Net proceeds were approximately $8.8 million in Q1 and $9.1 million cumulatively through March 31. After quarter-end, the company raised another $2.1 million through May 3 by selling 1.0 million shares. Future ATM proceeds are not assured and equity financing may dilute shareholders.
- Amprius is expanding its Fremont manufacturing line and expects it to reach up to 2 MWh of SiMaxx capacity when fully operational, targeted for exiting 2024. It is undertaking design and pre-construction work for the initial Brighton, Colorado facility phase, planned for up to 500 MWh annually. Estimated capital equipment spending for that capacity is $75–$100 million, excluding facility construction and build-out; timing depends on final design and funding.
- Key execution risks include developing and qualifying automated, high-volume manufacturing; achieving cost, yield and throughput targets; obtaining supplier capacity and commercially acceptable terms; and securing enough capital. SiCore batteries currently rely on Berzelius and manufacturing partners in China; commercial terms under the exclusive supply arrangement remain to be established.
- Colorado state and local incentives have an estimated total value of approximately $10 million and are subject to performance conditions. The previously awarded $50 million DOE cost-sharing grant was discontinued by mutual agreement in June 2023.
- Management identified two unremediated material weaknesses in financial-reporting controls, involving financial close and control design and segregation of duties. Remediation is in progress; management concluded the statements fairly present the company’s position and results after additional procedures and review.
- No legal proceedings were reported as likely to have a material adverse effect. The filing reports no formal revenue or earnings guidance.
Important facts for investors to verify
- Whether Fremont expansion meets the exit-2024 target and whether the Brighton facility can be funded, built, permitted and ramped on schedule and within the stated equipment-cost estimate.
- Cash burn, remaining ATM capacity and subsequent share issuance: the filing reports 94,472,655 common shares outstanding as of May 2, 2024.
- Whether battery sales grow enough to improve gross economics, while monitoring customer concentration and reliance on China-based SiCore production and supply.
- Progress in remediating the disclosed material weaknesses and establishing effective financial-reporting controls.
- Whether the company secures supplier agreements, commercial terms and contingent government incentives needed to support manufacturing plans.