Amprius Technologies, Inc. — FY2022 Form 10-K
Reporting period: Fiscal year ended December 31, 2022. Amounts are in U.S. dollars; financial figures below are in millions unless stated otherwise. This is an annual filing, not a standalone fourth-quarter report. The September 2022 business combination was accounted for as a reverse recapitalization; historical results are those of Legacy Amprius.
Business context
Amprius develops and sells lithium-ion batteries using proprietary silicon anodes. Its commercial production is currently at kilowatt-hour scale in Fremont, California, and its batteries are used primarily in aviation applications, including drones and high-altitude pseudo satellites. The company reported more than 40 customers that had tested and validated its batteries and more than 10,000 batteries shipped. It says demand exceeds current manufacturing capacity.
Financial performance and liquidity
| Metric | FY2022 | FY2021 |
|---|---|---|
| Revenue | $4.4 | $2.8 |
| Cost of revenue | $9.8 | $7.1 |
| Gross loss | $(5.4) | $(4.3) |
| Research and development | $2.0 | $1.5 |
| Selling, general and administrative | $10.6 | $4.8 |
| Loss from operations | $(18.0) | $(10.6) |
| Net loss | $(17.3) | $(9.9) |
| Basic and diluted loss per share | $(0.24) | $(0.15) |
| Cash used in operating activities | $(13.9) | $(8.0) |
| Cash used in investing activities | $(1.5) | $(0.6) |
| Cash provided by financing activities | $73.6 | $20.1 |
Revenue grew 59%, but cost of revenue rose 39%; gross margin remained negative at approximately 123% of revenue. SG&A more than doubled, largely due to public-company transition costs, added personnel, professional fees and insurance. Net loss increased 75%.
At year-end, cash and cash equivalents were $69.7 million, current assets $75.2 million, current liabilities $6.9 million, and stockholders’ equity $73.0 million. The company reported no interest-bearing borrowings. Operating lease liabilities totaled $3.0 million. Management said available cash was expected to fund working capital and capital expenditures for at least 12 months from the financial-statement issuance date, while warning that additional financing may be needed.
Material changes and developments
- Revenue increased by $1.6 million, including higher battery sales, customer design services and $0.2 million of government grant revenue.
- Four customers represented 73% of FY2022 revenue; two customers represented 80% in FY2021. Three customers represented 88% of year-end receivables.
- The September 2022 business combination and PIPE generated $70.9 million in net proceeds. Financing cash flow also included warrant exercises and other equity-related proceeds.
- The company entered a committed equity financing agreement allowing it, subject to conditions and limitations, to sell up to $200 million of common stock to BRPC II through January 1, 2025. Shares sold are priced at market-based terms with a 3% discount; use of the facility and proceeds are not assured.
Outlook, risks and contingencies
- Manufacturing expansion: Amprius expects its Fremont production capacity to reach approximately 2 MWh by the end of 2023, subject to equipment customization and commissioning. It targets an initial 500 MWh phase at a planned Brighton, Colorado facility to be operational in 2025. The Colorado lease remained under negotiation under a nonbinding letter of intent, and zoning, permits, construction, equipment, hiring and scale-up remain uncertain.
- Capital needs: Management estimates capital equipment expenditures of $120–$150 million to achieve 1.0 GWh of annual capacity. A $50 million DOE cost-sharing grant was awarded, but the final contract and funding conditions were unresolved at year-end. State and local incentives of approximately $10 million are contingent on performance goals.
- Operating outlook: The company expects continuing losses and higher R&D, staffing, public-company and manufacturing expenses. It has not yet demonstrated high-volume production, mature yields or target manufacturing costs. EV-market entry also requires improvements in cycle life, cell format, cost and production volume.
- Financial reporting controls: Disclosure controls were deemed ineffective at year-end because two previously identified material weaknesses—financial close/review controls and segregation of duties—had not been remediated. Management’s remediation work was ongoing; no management assessment of internal control effectiveness was included.
- Other key risks: Customer concentration, dependence on government contracts and grants, supplier and equipment availability, product safety and liability, competition, potential dilution from equity financing and warrants, and the possibility that planned aviation markets grow more slowly than expected. The filing also notes a prior ransomware incident in December 2021 and temporary access disruption to deposits at Silicon Valley Bank.
Important facts for investors to verify
- Whether Fremont equipment commissioning achieves the stated capacity target and whether Brighton lease, zoning, permits and construction proceed on schedule.
- Whether the DOE grant contract is finalized, what costs it covers, and whether matching and performance conditions can be met.
- Actual capital spending, production yields, unit costs, customer orders and the company’s cash runway as expansion proceeds.
- Customer concentration and the conversion of testing, development and supply arrangements into recurring revenue.
- Progress remediating internal-control weaknesses and the continuing implications of potential equity issuance, committed-financing restrictions and outstanding warrants.