Amprius Technologies, Inc.

Good afternoon. Welcome to the Amperius Technologies second quarter 2025 earnings conference call. Joining us for today's presentation are the company's CEO, Dr. Kang Sun, President Tom Stepien, and CFO, Sandra Wallach. At this time, all participants are in listen-only mode. Following 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 our financial and business performance, our business strategy, future product development or commercialization, new customer adoption, and new applications, our growth and the growth of the markets in which we operate, and the timing and ability of Ambrius to expand its manufacturing capacity, skilled business, and achieve a sustainable cost structure. These statements involve known and unknown risks, uncertainties, and other important factors that may cause Ambrius' results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. For more complete discussion of these risks and uncertainties, please refer to Ambrius' filings with the Securities and Exchange Commission. Finally, I would like to remind everyone that this conference call is being webcasted, and a recording will be made available for replay on the company's investor relations website at ir.ambrius.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. I'll now turn the call over to Ambrose Technologies CEO, Dr. Kang Sun, for his comments. Sir, please proceed.

Welcome, everyone, and thank you for joining us this afternoon. On today's call, I will give you an overview of our business, and then our president, Tom Stetting, will recap our Q2 performance and our recent accomplishments. After that, our CFO, Sandra Wallach, will discuss our financial results for the period. Then I will share some closing remarks before opening the call for questions. Let's begin. For those who may be new to our company, I would like to briefly introduce Amprius. Amprius is a pioneer and a leader in the silicon anode battery space. With over decades of development experience, and a long track record of commercial shipments and customer achievement. At Amperes, we develop, manufacture, and market high energy density and high power density silicon anode battery with applications across all segments of electrical mobility, including aviation and the later electrical vehicle industry. Today, Amperes has the most complete commercially available portfolio of silicon and other material systems in the industry. And to convince performance leadership, we see the combination of the battery energy density, power density, charging time, operating temperature range, and safety. Across our battery portfolio, we believe that we offer unmatched performance among the commercially available batteries. Ampere has been delivering commercial battery to the market with up to 450 W per kilo and 1150 W per liter. 10C power capability. An extreme fast charge rate of 0 to 80% stay of charge in approximately six minutes. The ability to operate in a wide temperature range of minus 30 degrees Celsius up to 55 degrees Celsius. and safety design features that enable us to pass the United States military's benchmark and nail penetration test. Each of these performance parameters is critically important to real-world electrical mobility applications. Not only do our batteries empower certain drones, satellites, and the vehicles to maximize performance, but they also enable our customers to achieve their economic targets as well. In addition, Amperes has developed a 500 Wh per kilo and a 1,300 Wh per liter battery platform that has been validated by independent third parties. With our belief that there are no other commercial batteries on the market that can perform at these levels today. In the second quarter, Amperes continued to demonstrate agro-logical innovation, and the travel business growth. We believe we are successfully executing our strategy to transform electrical mobility with our game-changing performance. With that overview complete, I will now turn the call over to our president, Tom Stepney, to recap the highlights from our record quarter. Tom.

Thank you, Kang. In the second quarter, we built on our momentum from the start of the year, and we believe we have improved in all key business areas. Specifically, we released compelling new products, engaged with additional customers, and continued to expand our operations. Let's start with product updates. Innovative technologies and breakthrough product performance are the foundations of Amprius' business. Since debuting our SciCore product platform in January 2024, we have relentlessly pushed the limits of lithium-ion performance. This April, we introduced SA-102, the first SciCore cell to reach 450 watt-hours per kilogram, a record-setting energy density 73% higher than the typical 260 watt hours per kilogram of conventional batteries used in electric vehicles and power tools. Built around a high capacity silicon anode, this is where the SA prefix comes from, and about the size of a standard tea bag, SA-102 is produced on our California pilot line and is already winning strong customer praise for the significant endurance boost it gives mission-critical unmanned autonomous vehicles, commonly referred to as drones. With global drone demand accelerating, SA-102 cements Amprius's position at the forefront of this market. In order to deliver Sitecore samples to our customers quickly and expedite their qualification process, we've expanded production at our pilot line in Fremont, California. As prospective customers move through the qualification process and request high volume orders, we then deliver through our existing contract manufacturing partners. So far in 2025, We have shipped the cells to several industry-leading global drone companies. In May, we announced that Alto, a subsidiary of Airbus, set a new record for their loitering drone, which flew for 67 days without interruption. Alto's Zephyr is a solar-powered loitering vehicle that operates around 70,000 feet, approximately twice the altitude of commercial airplanes. During daylight, solar powers the motors and channels surplus energy to charge embryo cells. At night, Zephyr draws stored energy to remain aloft. Our high-capacity silicon anode batteries deliver dependable overnight power, enabling continuous flight for more than two months and stand as a critical pillar of the mission's success. During Q2, we added dozens of new customers. We recently announced that Amprius was selected by Amazon to participate in their inaugural cohort as a part of the Amazon Devices Climate Tech Accelerator. This program supports companies developing technologies that could help reduce the carbon footprint of Amazon's devices and operations. This is a recent development and this selection provides us with a valuable opportunity to engage with Amazon's technical and sustainability teams that work on millions of devices worldwide. We are excited about the opportunity to explore how ourselves could provide more efficient energy solutions in their industrial consumer electronics and mobility focused platforms. In Q2, we shipped batteries to 93 customers, 43 of whom are new to the Amperes platform. The remaining 50 are repeat customers, including several of our longtime strategic partners, such as Alto Airbus, BAE Systems, and the U.S. Army. Thanks to our breakthrough energy performance and the ample production capability, We attracted new customers and generated $26.4 million in revenue during the first half of this year, already surpassing our full year 2024 total of $24.2 million. Q2 revenue totaled $15.1 million, a 34% increase from the first quarter and up 350% from Q2 2024. This strong growth was primarily driven by a greater than 450% increase in SICOR shipments over Q2 2024. SICOR is a proprietary silicon anode that uses standard lithium ion processing equipment and is gross margin positive, enabling us to report positive gross margin for the first time. Sandra will provide more context here when she reviews our financial highlights next. In Q2, we diversified our customer base. 86% of our revenue came from outside the United States on a shipped-to basis, an increase from 60% in Q2 2024. Customer diversification helped enable steady growth in a generally uncertain domestic and international macroeconomic environment. In Q2, over 90% of our revenue came from the aviation sector, driven by an increase and ongoing strength in the drone market. We are enjoying increased market adoption and a more favorable policy stance from the U.S. government that creates new opportunities for innovation and deployment. The remainder of our Q2 revenue was primarily derived from the light electric vehicle sector, which remains healthy but has a lumpier profile, due to our customers' varying product introduction cycles. The LEV market tends to have short design-in cycles, and we believe our drop-in replacement batteries can help us succeed in gaining market share in this growing market. To support customer demand we are seeing in our core markets, we have continued to work closely with our current contract manufacturers. We are also opportunistically sourcing additional partners to provide us with greater geographic diversification and operating flexibility. In May, we announced a contract manufacturing agreement with a leading battery manufacturer in South Korea. This new partnership expands our physical manufacturing footprint and allows us to serve additional customers with specific geographic supply chain requirements. The facility is currently ramping up and is expected to produce amprius cells shortly. We are off to a rapid start in Q3. As we announced in July, we initiated shipping cells to customers from our Fremont, California pilot line for testing. So far, five customers have received the new Cycor cells. Our pilot line allows us to rapidly develop and prototype new batteries quickly and to deliver them to key strategic customers who have specific design requirements. We are seeing an increase in demand for drone technologies following the June 2025 U.S. Executive Order promoting domestic drone manufacturing and the July Department of Defense Directive prioritizing U.S.-made drones for procurement. U.S. Secretary of Defense Hegseth wrote that small drones quote, resemble munitions more than high-end airplanes. They should be cheap, rapidly replaceable, and categorized as consumables, unquote. We expect these policy actions will accelerate adoption timelines and open new opportunities across both the defense and commercial sectors. Amprius has operated in this sector for seven years, and we believe we enjoy a first mover advantage. Here is one specific example. AV, formerly known as Aero Environment, is a designer and manufacturer of small drones used by the U.S. military. This quarter, we delivered sample cells as part of the Extech Prime U.S. Army grant program. These cells extended state-of-the-art performance, clocking in with an average energy density of 517 watt hours per kilogram. Higher energy density delivers tremendous customer value, notably longer flight time and or additional payloads. In summary, the first half of 2025 has been strong, and now our focus is on maintaining that momentum through consistent execution in the second half. I'll now turn over the call to our CFO, Sandra Wallach, to review our financial results.