Amprius Technologies, Inc. — Q3 2023 Form 10-Q
Reporting period: Quarter and nine months ended September 30, 2023. Financial statements are unaudited. Amprius develops and sells silicon-anode lithium-ion batteries, primarily for aviation and other mobility applications, and is seeking to expand from kWh-scale production toward larger-scale manufacturing.
Financial performance and liquidity
| Metric | Q3 2023 | Q3 2022 | Nine months 2023 | Nine months 2022 |
|---|---|---|---|---|
| Revenue | $2.8 million | $0.8 million | $5.1 million | $3.6 million |
| Gross loss | $4.2 million | $1.5 million | $10.8 million | $4.0 million |
| Gross margin | -152% | -185% | -211% | -110% |
| Operating expenses | $4.9 million | $2.8 million | $18.2 million | $7.4 million |
| Net loss | $8.5 million | $4.2 million | $27.0 million | $11.3 million |
| Net loss per share, basic and diluted | $0.10 | $0.06 | $0.32 | $0.17 |
- Revenue mix: Q3 product sales were $2.2 million and customized design services were $0.6 million. Nine-month product sales were $4.0 million, design services $0.9 million, and government-grant revenue $0.3 million. Management said product growth included battery sales through a toll-manufacturing arrangement.
- Cash flow: Nine-month operating cash use was $20.8 million, investing cash use $11.8 million, and financing cash provided $16.3 million. Cash and cash equivalents were $53.4 million at September 30, down from $69.7 million at December 31, 2022; including restricted cash, period-end cash was $53.5 million.
- Balance sheet: Current assets were $61.4 million and current liabilities $13.9 million. Total liabilities were $20.9 million; the filing reports no interest-bearing borrowings. Stockholders’ equity was $65.8 million.
- Capital and share count: The company issued shares under its committed equity financing during the first nine months, receiving $16.5 million net cash in the cash-flow statement. It had 87.6 million shares outstanding at September 30 and 88.4 million as of November 3, 2023.
Changes versus comparable periods
- Q3 revenue increased 243% year over year; nine-month revenue increased 41%. Product revenue rose, while nine-month customized design revenue declined by $1.0 million.
- Losses widened: nine-month net loss increased by $15.8 million. Higher manufacturing and facility-related costs, personnel and R&D spending, and public-company professional and insurance costs contributed.
- Cash used in operations increased to $20.8 million from $8.2 million, while capital spending increased to $11.8 million from $0.7 million.
- Property, plant and equipment, net rose to $16.7 million from $4.2 million, including construction in progress of $12.2 million. Operating lease liabilities increased, reflecting facility expansion.
Outlook, management commentary and notable matters
- Management expects ongoing losses and increased operating and capital spending as it develops manufacturing capacity. It believes available cash will fund operating and capital requirements for at least 12 months from issuance of the financial statements, but says additional financing may be needed to execute its plans.
- The company expects its first large-scale anode machine to support approximately 2 MWh of capacity by year-end 2023. It targets an initial 500 MWh annual manufacturing phase in 2025 and estimates $75–$100 million of capital equipment spending for that capacity; this estimate excludes facility construction and build-out costs. These are plans and estimates, not assured outcomes.
- The proposed Brighton, Colorado facility is subject to zoning approval. The lease had not commenced as of September 30; if the required rezoning decision was not obtained by December 31, 2023, the lease would automatically terminate. If it proceeds, scheduled lease payments total approximately $62.9 million and are expected to begin in December 2024.
- After quarter-end, Amprius entered into a sales agreement allowing up to $100 million of common-stock offerings and terminated its prior committed equity purchase agreement, which had provided $17.0 million cumulatively through September 30. Actual ATM proceeds are uncertain and equity issuance may dilute shareholders.
- The company and the U.S. Department of Energy ended negotiations for a proposed $50 million cost-sharing grant in June 2023. The proposed merger with Amprius Holdings was mutually terminated on October 21, 2023.
- Customer concentration is significant: four customers represented 89% of Q3 revenue, and three customers accounted for 83% of accounts receivable at September 30.
- Management reported disclosure controls were not effective because previously identified material weaknesses in financial-reporting controls and segregation of duties remained unremediated. Remediation efforts were ongoing; management said additional procedures supported the fair presentation of the interim statements.
- Principal risks include scaling manufacturing and achieving cost, yield and quality targets; facility zoning, permitting, construction and supply constraints; customer concentration and market adoption; future funding and dilution; product safety and liability; competition; and unresolved internal-control weaknesses. No material litigation was reported.
Important facts for investors to verify
- Progress on Brighton rezoning, facility plans, permits, project costs and the timing and funding of the targeted 500 MWh capacity.
- Whether the Fremont line achieves the stated capacity goal and whether manufacturing yields, costs and product performance support commercially viable margins.
- Cash burn and runway relative to expansion spending; actual ATM share sales, proceeds and resulting dilution.
- Customer orders, revenue concentration, receivable collections and conversion of remaining performance obligations (approximately $11.3 million at September 30, including $8.3 million expected within one year).
- Completion of internal-control remediation and whether management later reports effective controls.
- Potential obligations and dilution associated with leases, warrants and equity compensation; the filing lists 47.7 million outstanding warrants with exercise prices of $11.50 or $12.50 per share.