Amprius Technologies, Inc.

Q4 2022 Earnings Conference Call


spk_0: good afternoon and welcome to the a prius technologies conference call and webcast it's ah my pleasure to turn the pull over to brag bribery
spk_1: good afternoon welcome to every technologies fourth quarter and full year twenty twenty two conference call joining us for today's presentation or the company ceo doctor king's son and see if house and your wallet at this time all participants are in listen only mode falling management's remarks we will open the call for questions please note that this presentation contains forward looking statements including but not limited to statements regarding future products commercialization new customer adoption and timing and ability of mps prius to build it's large scale manufacturing facility expanded manufacturing capacity and skills business the statements involved known and unknown risks on certain these and other important factors that may cause increases results performance or achievements to be material flee different from any future results performance or achievements expressed or implied in such forward looking statements for a more complete discussion of these risks and uncertainties please refer to embrace his filings with the securities and exchange commission including but not limited to the discussion of every says risk factors in it's quarterly report on form tend to filed on november fourteenth twenty twenty two finally i would like to remind everyone that this conference call is being web chest and a recording will be made available for replay on the company's investor relations website and i are got imperious dot com in addition to the webcast the company has posted a shareholder letter that accompanies these results which can also be found on the investor relations website are now turn the call over to average technology ceo doctor tanks on for his comments sir please proceed welcome everyone and essential you for joining us it's up to me the beginning to this discussion i will give some companies bagwell of the by a review of our recent accomplishments before turning to call over twelve a seattle central wanted to discuss our financial results for the year in more deaths after that i was share some closing remarks before hoping to call for questions i'm christie that of and the manufacturers auto high energy density feel my own bed to face of our proprietary citizens and would have allowed it's our business has a forty sleuth advantage is unmatched technical and the port of performance proven that a sexual selection yourself a put out a commercialization with industry leaders and the a team of a season even with operators with authority that track record have a near term goal is to skill our met a sexual with the long term goal of have become a mainstream battery solution with applications or class all segments of electrical motility including the evolution and it the industry over the past years and his has a dealer to commercial batteries with the highest amount of energy density and the powered and our current available batteries have as much as four hundred and fifty you are a potato you actually get into them and the eleven think the walrus a leader to body sugar added sense with up to ten feet high power to do that our thirties our so few the for the past or present environments leaflets your ability to pass the united states military benchmark male penetration test as well as less activity to operate in nazi germany why the temperature range of assets as low as minus thirty degrees celsius and up to fifty five degrees celsius
spk_2: these features
spk_1: well i'm always extremely fast charging weeks of a deal to eighty percent the of charging a approximately six minutes
spk_3: said andrea support he's our belief that says no wires in the commercial marty that can perform at this level
spk_1: well addition we have amassed over eating patterns and over a decade of the little hub city can and with tagalog or gnm etc
spk_3: moving to our review
spk_1: one thousand and twenty two was arguably the most transformational year for i'm just think i our funding in two thousand eight it was also a year of many firsts while it's business as late as to the our strategy to transform electrical mobility with a focus on a decent education
spk_3: obama make a menace to highlight some of our key milestones from the past year
spk_1: as a lot of the few minutes ago i'm sure it has a leading to the should do the emerging energy transmission sector was disrupted tagalog it we enter just two thousand tons to resolve of first commercial shipments from four hundred and fifty was a kid and eleven to he was a to told us for high platoons at age we manufacture the of the trees on march is that it can produce this executions to the are constantly watching team to the settlements and to the that it is that i have wanted
spk_4: as an example earlier today we're like that
spk_1: our athlete fall behind good while to kill kill volt batteries for there's not a year available to the market has said there to the most she's very satisfied independent third party which is a crucial step to the philosophy and timeline he meant for these next generation of the better schools and the we'll meet and greet progress be some friends that just needs we stick to be able to see to the tight to see their to customers people tend assistance of touching three we also company several important temptations of our technological capabilities and twenty twenty two the october we successfully exhibits our battery a swim sabotages ability similar video demonstration choir we were able to achieve a retail over zero to eighty per cent sale shots in proximity to be six minutes our performance is ahead of the united states and of and fancy consortium twenty twenty five goals of zero two eighty a percentage of city limits in practice this were allowed the vehicles and other applications to operate a much more efficient city with that some time let's see somebody in november we allow that dependent the third party testing lab that it is our three hundred ninety wow a gentle potty mouth electrolytes sales a successful cases of the united states military performances are performing a statistician male hadn't chosen test this test is used to determine the feasibility of a specific product in combat scenarios and is important percent mark to because he therefore military applications we have a unique opportunity to provide a significant the energy density performance increase of nearly hundred percent toppling the one time for mobile power to be lazy with all the increase in the overall weeks of the verbal batteries flower soldiers moving to our business development efforts on june twenty two was a successful sales is your flower evolution and defenses segments mps has a secret been rolled with the elevation and the the top market because we produce i am you done lately a better single most important issue you a topic for me he the battery week question is why our batteries are you such high demand
spk_3: later and events or batteries
spk_1: nice greater emphasis and the grinch
spk_3: while fast the taj time long time me
spk_5: increased flight time
spk_1: well that and we find that new multi year agreement with a several shame that's ready there's like everywhere him and alibi flirt and the be a d c seems and the spend our you based on communists with airbus the us army and the us a decent
spk_6: among others
spk_1: i will hire some of those agreements about
spk_3: in july will allow a three year deal with paradigm slow to supply our batteries as they develop that i'm in l class system products
spk_1: fourthly october we are entering two or three your cooperation agreements with a be a you see seems to develop a lightweight high energy batteries for you that recording powered flight application
spk_3: the married we will award funding for the second bought he or she got him development a problem in the united states or divides the best battery consortium for the development of a know cause you a bedroom
spk_1: cut off from he would between ford gm and death penalty and the is being labeled bell club team agreements with the united states department of energy their mission is to the verdict electoral chemical energy storage technologies that are the band's the commercialization of the next generation you have to fight a vehicle applications i'm pleased to to allow said we all three saudi delivered reverted the first set of the reference to sell in the fourth quarter of a twenty twenty
spk_7: two
spk_1: or together this new wheels and the opportunity extension among to a sixty five percent year over year boost the seabed three shipments we believe our successful thirty efforts are now but gliding a passing the flywheel he said leading to orders from the new customers and extension orders from existing customers
spk_3: as we think about our goals for the next several years our primary focus is on t spending capacity to me that man and the ultimate achiever sensible a structure at a scale
spk_1: we need a several stretches your assholes in two thousand and twenty two that a put us out career path to achieve these goals who september we close our business combination with the kensington capital acquisition corp for to provide us with a greater access to capital below the poverty the market
spk_3: though that a process we also read the seventeen unit in cash net of expensive and edit strategical customer to other us are based in l worm and
spk_1: we could last how odd because of for a better partner then the kensington t and have continually to watch closely alongside them as we execute our strategy only somebody we put in place
spk_3: a a everything facility which allows us to assess up to two hundred noon of additional funding after a competitive a profit we was he likes to receive a to cost sharing grant from the united states department of energy in october of five hundred twenty two
spk_1: the first is a one any cost sharing branch from the deal use advanced manufacturing avi specifically for the a federation of a development of mass production process we use for our city handle this process between our free man facility includes at the position sitting president that he used he saw him that it a cell manufactured the second that either fifteen he only a share sharing them through some gwen selected for legalization of the away from the deal is off his manufacturing and energy supply chain
spk_8: we are among the first set of the company to be select forty goes asia of the wants to receive funding from the president biden back by parties and with us factual to expand the domestic manufacturing of batteries
spk_9: who they're the end
spk_1: in october
spk_3: we receive of the first
spk_1: larger scale and production mission from central from quitting the lobby for that the our freeman facility and a effect to increase our capacity for city can and production to a passing agreed to let go off exited twenty twenty three to me to be for twitter for the actual output will be somebody spend our least facility in fremont california effectively top of each our a footprint in that location
spk_3: how are you thinking freeman is planned to improve our high volume manufacturing process is an increase our capacity by tim x quit will serve strategical of asian customers the some nice and to support somebody and qualification projects with it
spk_1: new customers walk from to the the clock let's take me to our more exciting news how do these months we'll along with the selection of of fighting python caught colorado
spk_10: as a location flower seven hundred and seventy five thousand square foot nets production
spk_3: facility
spk_1: the selection of the colorado florida gigawatt scale factory most are important a miles from for anxious
spk_11: we watched closely with the state of colorado
spk_1: the colorado economic development commission adams county and of the city of a fight him to allow terms that are mutually beneficial
spk_12: quitting included a comprehensive in some people proposals
spk_1: the initial phase
spk_3: of our food out of existence facility will provide a potential of up to file a two hour and a dorsal expanded to create over three hundred and thirty huge off
spk_1: for the subsequent feces the fight has essentially candidate for up to a total potential metaphysical type of a pen giggle our the site also hosts a few advantages over our other potential locations nobody is already equipped with the electrical power and existence structurally out need for gigawatts scale you feel my arm that she's actually which was a beard out cause and the time to margie lisa a goal of have be operational in twenty twenty five also apply to any closer to some of father material to years in the most worse than us
spk_3: quit week fact that were lower operational costs over the long term saturday
spk_1: our commitment to colorado allow fast to establish our largest scale operations year in the united states i'm it's battery will be designed and the made that in the us this a new facility will transform our long term option to the villages in the near term will will continue to develop and the shape cutting edge products from our free month facility while we we find our manufacturing processes to forbid he risk the handoff our mass production pull it off two boys and in the coming years
spk_3: who have with as foundation we need a statute you've got these agents to form of to new business units
spk_1: i'm the a flat and the empty said
spk_3: hundred celeb no kidding freeman will focus our advance the battery technology products and a meditation the not a month
spk_1: while and said no kidding right we'll focus on large scale fabrication of a city can handle batteries
spk_13: to support this transition jump boston trying to the the company ceo will take a new rules to leader andrew ladd as the division
spk_1: business unit the president
spk_14: in the interim i our serve as an excellent president of amp he said
spk_15: i have one fun of
spk_3: update before
spk_1: and the call over to thank you wow the area which and most the proud he did the team we have built over the last several months we have a critical rules to the that our efforts the in ex actual present in the row for amp it said i'm watching with our new that presence of the infrastructure and to avoid who joined us last september and you bring for over thirty years of a facility development and management experience and the most recently so but as with us over facilities and a family the energy of north america i will be fair spearheading our efforts to scale production capacity focusing on sekhri plenty facilitated development and the regulatory compliance
spk_16: with our leadership team in place we believe that we are well positioned to x to the our our food to scratch
spk_1: we'd better overview of companies i will not turn the car over twelve a seattle send your phonic to review our financial results for the four year sentence
spk_17: thank you can i would now like to spend a few minutes covering some key updates as a reminder er details financials can be found in our shareholder letter
spk_1: as kang mentioned we believe that we have the proprietary technology in place and we have shown consistent manufacturer dirty in commercial success lead and shipping commercial products and twenty eighteen so her focus today is neuron commercializing but is instead on stealing our production capacity to meet the growing demand in these fast moving market in our financial particularly in our revenue results you will see data points to reinforced his strength of our customer development efforts as we scale
spk_17: we believe that those results especially when paired with our investments in both our fremont capacity and gigawatt hours scale capabilities position the company well to achieve it's growth and profitability potential
spk_1: we closed out twenty twenty two with four point four million in revenue product revenue was two point four million including over twenty five new customers to which we shipped batteries within calendar twenty twenty two within that said of new customers for our leading easy tom manufacturers and to our global battery pack suppliers for the aviation sector
spk_17: also we deliver commercial quantity shipments to aerovironment and solid i'm flir and completed two flights sets for airbases hats program with the backlog of six more sense for future delivery still pending
spk_1: development services revenue totaled one point eight million driven by both the delivery of cells and the timing of other deliverables under multiple contacts we also recognize the first portion of the one million dollars yearly cost sharing grant revenue which was zero point two million for twenty twenty two are gap gross profit margin was negative one hundred and twenty three percent are gross margin displays variations period of her period based on the mixer products and services now moving to our operating expense management or gap operating expenses for twenty twenty two were twelve point six million that higher g and a expenses into three and key for due to increased public company cost or twenty twenty two gap net loss was seventeen point three million or a loss as twenty four cents per share or shares outstanding it's december thirty first twenty twenty two for eighty four point six million with seventy one point three million weighted average shares a common stock outstanding for the year as of december thirty first twenty twenty two there were fifty nine full time employees primarily based in our fremont california location sure based compensation for twenty twenty two was two point seven million
spk_17: turning to the balance sheet we exit twenty twenty two with sixty nine point seven million in cash and no death
spk_1: a net increase of fifty eight point two million from december thirty first twenty twenty one the key drivers of our cash activity for the year were thirteen point nine million used in operating activities
spk_17: one point five million in capital expenditures which represents our investment in our current manufacturing facility as well as an opportunity to stand our footprint and accelerate our capacity to support customer qualifications and scale up seventy three point six million net cash provided by financing activities driven by proceeds received in connection with the business combination and plates investment that of issuance cause plus proceeds from the exercise a stock warrants and options losing your outlook weeks back to continue to be limited by manufacturing capacity until we exit twenty twenty three with the new to make a lot capacity coming on mine regarding revenue we have several ongoing development services programs with performance obligations that we expect to complete within twenty twenty three which means that we expect increased revenue recognition waited more heavily towards the latter part of the year we expect there to in a costs will continue at a higher rate exiting twenty twenty two noting additional public company expenses
spk_1: we will continue to be lean on other operating expenses to teach ugly adding critical mass to the new business units that we announced and allocating the majority of our capital to scaling up our manufacturing
spk_17: and we expect higher capital expenditures going forward as we continue to build out the to megawatts capacity in fremont california while we in parallel design and can start or newly announced brighton colorado gigawatt hours skill facility
spk_1: are spending pattern is dependent on several factors outside of our control including the timing of approval for rezoning for the colorado site so we will provide more specific protections as we have additional information to share
spk_17: also we expect that we will continue to have strong support from the us inflation reduction act as the access production tax credits at the anode and sell levels in addition we have received over ten million dollars in state and local incentive packages relating to our gigawatts scale facility which is the result of missing and partnerships dealt in colorado school our selection process
spk_1: we believe that these tell wins will further enhance our economics as the accelerator scale to meet our massive market
spk_17: which the strength of our balance sheet and multiple vehicles to generate additional funding to both equity such as warrants and are committed equities facility and and nonreligious sources such as grants loans and incentives we believe we will have enough cash to execute on our strategic plan with that i will
spk_3: conclude the financial discussion and pass the call back to
spk_1: thanks census
spk_3: i'd like to emphasize a few key points before closing so do we have a market has a lot and the position
spk_1: i businesses that are reflection of our and that performance
spk_3: we'll would add to sons over the past with them since sixteen fast charging to that that it is enhance our thirties
spk_1: didn't form of four hundred sixty two fall hunger
spk_13: and the successfully test performance important to futile was with us and
spk_3: we are you love the skills to
spk_1: so some and man in the us and to support us since the supply chain resumes
spk_3: exiting twenty twenty three will go for this who out our largest scale manufacturing process
spk_1: and the planters with to megawatts pylon i'm coming up our fremont california facility
spk_18: we are also love movies will seek to prepared
spk_1: noodles our single que for citizens invites him colorado for the first five hundred megawatts and through some problems with the united states the bottom the and it's
spk_19: oh we are consuming to build a pipeline of a boutique customers to meet our planned expansion efforts
spk_1: which have
spk_3: that's all freedom eating at a scale of hundreds of megawatts of these and twenty twenty four
spk_1: as we look to the rest of a plenty funny silly our strategy and a focus at anfield the names and times we have a tremendous opportunities ahead with the put out a portfolio that a positions us to both coasts of each module and expanded to other industries kicking said suisse with a stronger performance and a faster of time we are continuing to dude of our odie need to move tigers technological advancements and a surgical policies
spk_3: who the private and the public sector we now have the capital and abusing the capacity to become a leading commercial providers in the sustainable mobility sector
spk_1: following we have the team in place to execute our mission thank you for your continued support of mps tagalog or geez
spk_0: we set our time change back to the of reason for doing it thank you not to conduct your question and answer session if you like to be place in the question can you please press starve one on your telephone key that we as you please ask one question one follow up them return to the que one moment please what we pulled from fascism what's your that star one to be placed into question que
spk_20: or first questions raised from you from color rush from oppenheimer you lied his allies
spk_1: and so much as i'm and congratulations another progress on new really glad to see you guys get said a word or this week with or about or show i'm not getting his you and started selling the megawatt tools and in evaluating them keep talk about any surprises either positive or negative they were seen from the tools one solution of the spawn the heart of at this point sir will already powers the two in three months the central them to we don't we also
spk_21: fights with to the source of because officials
spk_22: we did a walk away the supplier to get a the
spk_1: the the is a source at adjusted a weeks back to some ten summer lead a summer early fall of the these to would be
spk_20: forty this particular to august for sitting in or girls will be forty two hobbies okay that's that's tremendous of and then you know in terms of the the selection of colorado in obviously in is it the building site has an advantage the can talk a little more about supply chain advantages in terms of location and is was hiring of opportunity to do there seems to be in a potentially some is that you guys are or gain by two
spk_1: this location doubt the most obvious one authorities close to our funding source they're selling a day manufactured able to see of montana corrado compared to the others the or we looked georgia tech saw that we should i retired so this is probably the most visible a supply chair advantage they addition to that and the cars colorado's weather it's a must dwyer that that is a very important to floss having of the most important thing is the car out of the have the service in the powerful osceola acid battery manufacturer we cannot afford to have apologies fashion
spk_3: i saw the and the almost guaranteed of the power supply or the current of power
spk_6: a supply already adequate a flawless she's like
spk_20: i'll have that the superbowl and then just as a funnel one with the introduction in the new new product ah and and validation her third party you know the i guess me talk about we have what your customers are looking for an end in terms of incremental validation on that before you start to see some orders or is it really just a capacity issue
spk_1: for you guys right now on their product given that for fossil you fail to demonstrate that we have were capacities you are with a lotta customers a lot inquiries ago we have less will have inquiries from roma industrial players either from the government's that a widow out of in africa proceed to satisfy that the my never once challenges lots of that's why the earth as expansion is our priority the second custom a second man from the customer of cause we are currently focusing on a vision segments so aviation segments has so far we are the only one can provide high energy high powered batteries saudi the daily allows the fall i know our a or that's the battery the airbus has four when i really needed to make a sixty second generation and for have to watch so are we have a capacity
spk_3: a challenge at the same time in a we have customers as he made some energy and the power of the athletic energy and the power emphasis today probably the only company the can get overexcited you have our
spk_23: i have not a thing on a better he can to do
spk_0: i think some interest thank you as reminder that star ones be placing the question que
spk_24: next question is coming from chris other from be while you're alive his allies did i are you take my questions here
spk_1: yeah me to start driving past the tower facility he called out in the latter are resigning process of you're going through there anything you'd hear about that process and are at how we should think about the oh the timing assuming you get clarity on that over the next couple weeks months whenever either
spk_20: in a big deal for all capital be expected to the end of next year
spk_1: any of the their given point appear to be pretty solidified in colorado
spk_3: guy care answer the other times you and then a hadn't question then the send your can eat every the more on the phalanges so out we are trend that he was always a regulatory authorities i think a c the most time consuming part of this project
spk_1: i'm trying to the source of the fourth of july and i will have never land up i believe our production line can be delivered on time
spk_25: construction discussion
spk_1: want wow he for our we are planning to have this construction started late summer and the early for
spk_3: it took us about eighteen months to get the to get building pew
spk_24: such a few feet then the hello our production line so
spk_26: didn't get any appeared on the the capital yeah
spk_24: expectations to through the end of next year i've given you know if i think we've probably got a pretty good idea
spk_1: i feel you're expecting pasta destroyed you're giving the site selection and and all that yeah so that's a great question so our production equipment capital needs are so in the one hundred and twenty to one hundred and fifty million forgive last ah that's the total cost without ah government grant and offsets and whereas
spk_24: canadian as possibly another hundred million on construction and he i sell them were in total between two twenty inches fifty and i know how on the customer has diabetes like you you guys you continue to add new customers have seen the maybe could just talk a little bit more ah about some of the demand and segments
spk_26: aside from us a b c are there any other non airspace
spk_24: defense said persons in there and made with their face jersey to talk about on the only the size of her you know use cases
spk_1: within that can of broader scale factor to consider contemporary down around to demand you're sitting out there that we are we are working with the earth because most of our customer evolution
spk_27: as battery customers
spk_1: at the same time a week have been in love few years ago engaging with none of these and battery customers primary get a in the next a electrical vehicles battery a speech at because we don't have a large format and fourth of july and it's time so we only chance the at a variation speech editors at this phase out of college technically and uses
spk_21: as you know the u s a d c o ward off the
spk_3: the grants the is twice i've got to proceed as a low cost fairly density electrical league we also have left interaction with the other
spk_1: oh yeah to the evil years but at it's finest feel sad as a paralegal exchanges staged until we have a large format me anyway for me and hundred and our hundred thousand yen hours sell
spk_24: we will always stay at talladega exchange speech don't know that get a chance for me because millionaires make any of you
spk_20: is any ways you can kind of segment out in the title customers
spk_3: with these cases with would be helpful there
spk_28: by it's lawsuit today is a we have
spk_3: we haven't does your customers
spk_1: we have customary in defense of segments those batteries are edge create a for other applications we just need to have a capacity and the light of format of the battery in the right size of the dead
spk_29: for for those applications idea this is our effort alexa eighteen to twenty four months we'll get there an hour as we measure
spk_30: repeated imagining in our challenge jesus is of capacity once we get it's capacity you resolved
spk_1: we'll have were
spk_25: much better
spk_31: such ease in new revenue generation and the
spk_0: so with customers a the kids are scarce
spk_1: thank you as a reminder that star one to be placed in the question to one moment please while we pay for further questions
spk_3: we reach another question and answer session was term of for that over to doctor some free further opposing
spk_6: thanks o day everyone for joining us today
spk_0: either like to thank our employees partners and the shareholders for their continue to support as a reminder you mean know more about our company updates and the are we would be presenting in the lesser editions section of our website we look forward to rpg

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