Q4 2023 Amprius Technologies Inc Earnings Call
Operator: Good afternoon. Welcome to Amprius Technologies' fourth quarter and full year 2023 earnings conference. Joining us for today's presentation are the company's CEO, Dr. Kang Sun, and CFO, Sandra Wallach. At this time, all participants are in listen-only mode.
Good afternoon, welcome to <unk> technologies fourth quarter and full year 2023 earnings conference call joining us for today's presentation are the company's CEO, Dr. Chang Sun and CFO Sandra Wallach at this time all participants are in listen only mode. Following.
Operator: 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 future product commercialization, new customer adoption, the timing and ability of Amprius to build its large-scale manufacturing facility, expand its manufacturing capacity, scale its business, and achieve a sustainable cost structure. And Amprius' financial and business performance. These statements involve known and unknown risks, uncertainties, and other important factors that may cause Amprius' results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements. Thank you to Dr. Kang Sun for his comments and suggestions.
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 product commercialization, new customer adoption, the timing and the ability of Ambry has to build this large scale manufacturing facility expand its manufacturing capacity yellows business.
And achieve a sustainable cost structure and embraces financial and business performance. These statements involve known and unknown risks uncertainties and other important factors that may cause the results performance or achievements to be materially different from any future results performance or achievements expressed or implied.
Such forward looking statements for a more complete discussion of these risks and uncertainties. Please refer to <unk> filings with the Securities and Exchange Commission finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on the company's investor Relations website at IR <unk> com.
Speaker Change: 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 will now turn the call over to Andrea Technology CEO, Dr. Ken Zhang for his comments Sir. Please proceed.
Kang Sun: Sir, please proceed. Welcome everyone and thank you for joining us this afternoon and for today's call. I will report our progress and accomplishments for the fourth quarter, while also highlighting some of the milestones that were achieved in 2023. Our CFO, Sandra Wallach, will then discuss our and many more. After that, I will share some closing remarks, before opening the call for questions. The fourth quarter was a strong end to a gritty year for Amprius. Before I give a recap of the year, I would like to briefly introduce Amprius to those who may be new to the company. Amprius develops, manufactures, and markets high energy density and high power density batteries, with applications across all segments of electrical mobility, including the aviation and EV industry. As a pioneer of silicon-anode battery technology, Amprius has spent the last decade developing various silicon anode structures and cell chemistries, as well as manufacturing processes.
Ken Zhang: Welcome everyone and thank you for joining us this afternoon.
Ken Zhang: On today's call.
Ken Zhang: It would be pulled our progress and accomplishments for the fourth quarter.
Ken Zhang: Well or sort of highlighting some of the milestones we achieved in 2023.
Ken Zhang: Our CFO Sandra Wallach will then discuss our.
Ken Zhang: Actual results for the period.
Speaker Change: After that I will share some closing remarks before opening the call for questions.
Speaker Change: The fourth quarter was a strong and off a great year for EM piece.
Speaker Change: Before I gave him if he can't go over the year I would like to briefly introduce N P. As to those who may be new to the company.
Speaker Change: It appears that develops manufactures and markets high energy density and the high power density batteries. These applications across all segments of the electrical mobility.
Speaker Change: Including the aviation D V industries.
Speaker Change: As the pioneer of a city can handle beds, we take a lot of juice.
N P: I'm pleased to have spent the last decade, developing various silicon and the structures and the Seo chemistries as well as the manufacturing processes.
Kang Sun: The company has a strong patent portfolio of over 80 issued patents and pending applications, and the other. Amprius silicon anode batteries command a firm leading position in the industry. Amprius batteries deliver 450 Wh per kilo specific energy density and 1150 Waw per liter volumetric energy density and have been available commercially since early 2022. In 2023, we developed a 500 Wh per kilo, 1300 Wh per liter battery platform, which will be ready for commercial shipment soon. Also, Amprius' silicon anode structures and cell chemistries enable us to for TenC Power Capabilities, and the balance the high energy and the high power battery design. Our city-handled batteries have an extreme fast charging rate of 0 to 80% of the charge in approximately 6 minutes, can operate in a wide temperature range of minus 30 degrees Celsius to up to 55 degrees Celsius, and they have safety design features that enable us to pass the Each of these performance parameters is critically important for electrical mobility applications.
The company has a strong patent the pull of 40 it off over 80 issued patents and pending applications.
N P: Waiting to comes to Betsy performance M.
M P a silicon and batteries to comment for them leading position in the industry.
N P: M P as pantries, you'd either 450, Wawa potato specific energy density.
N P: 11, 50, Wawa police body, Michigan I understand Steve.
N P: Hasn't been available commercially since early 2022.
N P: From 'twenty to 'twenty, three we developed a 500 wawa potato 1300, Wildwood police or pet to be plentiful.
N P: Which would be ready for commercial cheaply some.
N P: Or so.
N P: I'm curious the city can handle the structures and the sound Chemistries enable us.
N P: So we didn't see power capability.
N P: And the pilot is the high energy and the high powered battery designs.
N P: Our city candle batteries have the extreme fast charge a week of zero to 80 person steels the charge in proximity to the six minutes.
Speaker Change: Yeah I'll pay you to you know why is the temperature range off of men as a 30 degree Celsius.
Speaker Change: Up to 55 degrees Celsius.
Speaker Change: And then have a safety features that enable us to pass in the United States immediately benchmark can nail penny patient test.
Speaker Change: Each of these performance parameters, it's critically important.
Electrical mobility applications, not only two hour battery naval a certain aircrafts and the vehicles function.
Kang Sun: Not only do our batteries enable certain aircraft and vehicles to function, but in doing so, they also enable our customers to achieve their economic targets as well. Amprius has been in commercial battery production since 2018, so the company has many years of experience manufacturing high energy density and high power density lithium ion batteries. It's our belief that there are no other commercial batteries on the market, and other speakers.
Speaker Change: But I can do it yourself. They also enable our customers to achieve their economic toll gates as well.
Speaker Change: I'm curious has it been in commercial battery production since 2018.
Speaker Change: So the company has many years of <unk> manufacturing high energy density and high power density D C and Miami batteries.
Speaker Change: It's our belief that there are no other commercial batteries on the monkey.
Speaker Change: It can perform at these levels today.
Kang Sun: Between our two battery families, Femex and Seiko, Amprius high-performance batteries have attracted significant market attention and customer demand. The company's priority today is to build additional manufacturing capacity as quickly as we can to meet the significant customer demand for our product. 2023 was a transformational year for Amprius. We came into the year with three major goals.
Between our two battery families that may extend the cycle.
Speaker Change: M. P is high performance batteries.
Speaker Change: Craig just to get everything in the market attention and the customer demand.
Company's priority today.
Speaker Change: He has to build additional manufacturing capacity as quickly as we can to meet the significant customer demand for our products.
Speaker Change: Yeah.
Speaker Change: 2023 was a transformational year for N P S.
Speaker Change: We came into the year with three major goes first.
Kang Sun: First, we set out to further advance our silicon anobeltery technology to deliver breakthrough performance. Second, we sought new customer wins as we continued to grow our product shipment volume, and third, we strive to expand our production capacity to meet the increasing demand for our batteries. We made significant progress across each of these areas, and we are confident that our effort has positioned Amprius to continue executing on its growth strategy in 2024 and beyond. Specifically, we had several noteworthy accomplishments in 2023. Last year turned out to be a banner year for our technology development. Back in March, we unveiled our and 500-hour per-kiddo bed-free platform, and many more, to the best of our knowledge. One's, Ourselves, began shipping to customers this year.
Speaker Change: First we set out to further advance our silicon anode battery technology to deliver peak through performance.
Speaker Change: Second we saw new customer wins as we continue to grow our pour it out of the shipment volume.
Speaker Change: And the search we strove to expand our production capacity to meet the increasing demand of our batteries.
Speaker Change: We'd need to see these kinds of progress across each of these areas and.
Speaker Change: And our confidence that our efforts have positioned us to continue executing on its growth strategy in 2024 and to be yeah.
Speaker Change: Specifically, we had several notable if he likes.
Speaker Change: Complishments in 'twenty to 'twenty three.
Last year turned out to be a banner year for our tech a lot of development.
Speaker Change: Back in March.
Unveiled our.
Speaker Change: 501 per kilowatt battery platform.
Speaker Change: First for our industry.
So the best so far of our knowledge one ourselves.
Speaker Change: PK shaping to a customer this year.
Kang Sun: Amprius will be the first company to achieve 500 watts per kilo energy density in a commercially available battery. Then, in August, we also unveiled our breakthrough battery cell chemistry and design that enables 400 Wh per kilo energy density with a simultaneous latency power capability. The energy and power delivered by this cell make it the ideal solution for electrical mobility applications such as aviation and EVs.
Speaker Change: So would it be the first company to achieve 500 Wawa, a kilo energy density and are commercially.
Speaker Change: Commercially available Patrick.
Then in August we also unveiled the precast through battery cell chemistry, and a design that are illegal 400, while replicate all energy density well he just simultaneous city tendency power capability.
Speaker Change: The energy and the power did you learned about this cell makes it a dia solution for electrical mobility applications, such as aviation and Evs.
Kang Sun: For EV tours, this battery is designed to provide the necessary proportion of power and energy for taking off, cruising, and landing, while also extending flight range by as much as 50% as modeled based on commercially available alternatives. We will complete customer evaluations and begin shaping batteries for select customers in 2023, with expanded commercialization expected in 2024. We hit the ground running in 2024 as well. In January, we launched our all-new cycle product family to go along with our existing silicon underwater platform, now called CEMEC. Well, CEMEX includes our highest performance battery, and the cycle platform services applications that demand high energy density and longer cycle life. Offering up to 400 W per kilo and as many as 1200 cycles at full depth of discharge, developed in close collaboration with Basilio, are all formerly affiliated companies.
Well easy toss. These batteries are designed to provide the necessary propulsion power and energy for taking off cruising and the lending.
Speaker Change: Wow orso, extending flight range that as much as 50% as modeled based on commercial deals available alternatives.
Speaker Change: We completed the customer evaluations the big game C. P batteries to sit next to customers in 2023, we see expanded commercialization expect 'twenty to 'twenty four.
Speaker Change: We hate to the ground running in 2024 as well.
Generally we lunched the hour or news cycle product family to go along with Salt Lake City coming onto our platform now called the sandbox.
Speaker Change: Well, it's that next includes our highest perform performance batteries now cycled Pediform services the applications that demand high energy density and the longer cycle life.
Speaker Change: Oh, sorry.
Speaker Change: Up to 400 Wawa potato.
Speaker Change: And as many as 1200 cycles at a food.
Speaker Change: Oh these touch.
Speaker Change: Developed in close collaboration with the Brazilians are for money, our CTO to company.
Kang Sun: We are able to achieve greater manufacturing, and Pesty, in the short term by working with the total manufacturing partners, which we expect will allow us to serve more customers and bring in additional revenue while we extend our U.S. manufacturing capacity. We believe that tool manufacturing capacities can create a bridge until our facility in Colorado comes online. The cycle products also have additional form factor flexibility and are all capable of both pouch and cylindrical cell form factors.
Speaker Change: We are able to achieve a quick turn manufacturing.
Speaker Change: Capacity.
Speaker Change: In the short term by working with a toll manufacturing partners, which we expect will allow us to serve more customers and the three additional revenue.
Speaker Change: While we extend our U S manufacturing capacity.
Speaker Change: We believe that toll manufacturing capacities can create a bridge until our facility in Colorado comes online.
Speaker Change: The cycle of product to also have additional form factor put flexibility.
Speaker Change: Capable for both pouch and cylindrical cells form factors.
Kang Sun: This allows them to be used in more applications and to be available at a scale today. These two product platforms are the culmination of years of work in the silicon anode space and just the beginning of our region here at Amprius to transform electrical mobility. Overall, when it comes to battery performance, we continued setting new bars for ourselves in 2023. We are confident that Amprius Battery, Amprius Tech, and many more. We believe that the highest endorsements of our technology are customer orders. Our industry continues to notice the battery performance success that we are having, and as a result, our demand far outstrips our supply throughout the year. We had several customers, but we were furthered out of partnership with Errol Laramie and Q. What?
Speaker Change: This allows them to be used more applications and to be available the scale to date.
Speaker Change: These two product platforms, the cumulation of yourself work in silicon animal space.
Speaker Change: And just the beginning of all the regions here at M. P is to transform from.
Speaker Change: Got it.
Speaker Change: Overall.
Speaker Change: Wayne to comes to battery performance, we continue setting new boss for yourself in 2023.
Speaker Change: We are confident that <unk> is battery.
Speaker Change: Can reach unmatched.
Speaker Change: Level of performance and we look forward to trying to extend our performance elite in 'twenty to 'twenty four.
Speaker Change: We believe that the hoist endorsement of our technology our customer corridors.
Speaker Change: Our industrial our industry continues to to notice the beds people, forming the success that we're having.
And as a result of the demand far outstrips our supply.
Speaker Change: So we're out of the year.
We had several customer wins or further to our partnership with visa had to learn the Q.
Speaker Change: Q what.
Kang Sun: started a new technical engagement with a leading high-performance automotive OEM in Q2, and reached a long-term battery supply agreement with Panergy in Q3. Also in the fourth quarter, we made significant progress on building out our book of customers. Shipping to 41 total customers in the quarter, up from 38 in Q3, while many of them were repeating customers like Aalto, Airbus, Peloton, FLIR, and the US Army and BAE systems. 16 of them were new customers who came to us from across the world and the electrical mobility sector, for example.
Speaker Change: Further our new technical engagement with a leading high performance automotive OEM in Q2.
Speaker Change: And they reached a long term battery supply agreement with <unk> in Q3.
Speaker Change: Also in <unk>.
Speaker Change: In the fourth quarter.
We made a significant progress on building out our book of customers.
Speaker Change: Shaping 241 total customers in the quarter.
Speaker Change: Up from 38 Q3.
Well many of them were repeating customers like auto Airbus rather than fear in the U S Army and the D. C seems 60.
Speaker Change: 16 of them were new customers.
Speaker Change: Who came to us from a cross.
Speaker Change: Electrical mobility sector.
Speaker Change: For example.
Kang Sun: We announced a volume purchase order from a VTOL manufacturer in October and completed a high volume shipment of CIMAX cells to the Korean Aerospace Research Institute in December. We also successfully secured the CEMEX purchase orders from three premier electrical aviation manufacturers. For customer, 450 Wh per kilo cell for battery packet development and quantification. These customer sales were developed in collaboration with Amprius' strategic partners to address their unique HEPS qualification requirements and enable these customers to operate in highly challenging environments, with greater energy density and longer cycle life and the previous 400-watt per-kilogram platform. The new cells are the only known commercially available batteries of their kind that can provide enough power and endurance and will have overnight stratospheric flight applications.
Speaker Change: We announced the volume push a soldier from a toll manufacturer in October and that completes the high volume of shipments of the same mix of sales to the Korean Aerospace Research Institute in December.
Speaker Change: We also successfully secured a sandbox purchase order from three premier.
Speaker Change: That's cool.
Speaker Change: You'd have to take the aviation manufacturers.
So customer 450, Wawa took keto sell well Betsy peg it development and qualification.
Speaker Change: These customer sales and what the letter putting in collaboration with M. P. As strategic partners to address their unique hence qualification requirements and enable these customers to all pizza.
Heidi challenging environments.
Speaker Change: With greater energy density and the lung longer cycle life.
Speaker Change: Than the previous 400 Wawa potato platform.
Speaker Change: The new cell.
Speaker Change: Only known commercially available batteries of the kind that can prevent it enough power and endurance well heads.
Speaker Change: Hertz overnight struggles ferry flight applications.
Kang Sun: These orders help strengthen Amprius' position as a premier global battery solution for eVTOL and HEPS applications. Also, within our variables market, we completed our first volume shipment of the safe cell for the US Army in December. This shipment is an important milestone for us because it completes our scale-up manufacturing initiative under the US Army-funded manufacturing technology program, which allows us to now have a large deployment of ourselves for the mission critical product. To me, the market, and customer demand, we have made significant progress in building out our manufacturing capacity. First, we complete our new production line in Fremont, California, in December. With this investment, we have increased our manufacturing capacity by approximately 10 times and expect to achieve 2 MWh, and Patsy will exit in 2024. At our largest-scale manufacturing site in Brighton, Colorado, we received the final rezoning permit that allows us to move forward with the site.
Speaker Change: This order is to help strengthen <unk> position.
Speaker Change: As a premier global battery solution for EV Tau and perhaps application.
Speaker Change: Also we think.
Speaker Change: Or a variable variable as marquee, how we complete our first the volume of shipments.
Speaker Change: Faith cell for the U S Army December.
Speaker Change: This shipment is an important milestone.
Speaker Change: Loss, because he could compete our scale up manufacturing initiatives under the U S Army fund manufacturing technological progress.
Speaker Change: Which allows us to now have a larger deployments of ourselves for the mission critical products.
Speaker Change: To me the market and the customer demand, we have made significant progress in building out our manufacturing capacity.
Speaker Change: We complete our new production line Fremont Cottie 40, IGT December we see with this investment.
Speaker Change: We have increased our manufacturing capacity by approximately 10 times and expect to achieve a two megawatt hour of capacity exiting 'twenty 'twenty four.
Speaker Change: You know our largest scale manufacturing society fight in Colorado.
Received at the final rezoning permit that allows us to move forward with some site.
Kang Sun: We have made progress in recent months ordering long-lead-time items such as electrical, mechanical, and plumbing systems to ensure that we remain on track with our timeline. We are also continuing the design and pre-construction work that will allow us to be operational in 2025. In addition to our own manufacturing capacity development, we have developed two manufacturing partnerships to provide us with a large-scale manufacturing capacity for cycle battery production right away. Overall, we believe that 2023 was a highly successful year across our major initiatives. As we turn our attention to 2024, it remains critical to our growth strategy that we continue advancing our technology and expanding our production capacity. We are off to a good start.
Speaker Change: We have made a progress in recent months on ordering long lead time items, such as electrical mechanical and the plumbing systems to ensure that we remain on track without what timeline.
We are also continually the design and pre construction work that allowed us to be all accretion in 2025.
Speaker Change: In addition to our own manufacturing capacity development, we have a developer tool manufacturing partner shapes to provider.
At least the largest scale manufacturing capacity for cycle of battery production, rather the other way.
Speaker Change: Overall, we believe that 2023 was a highly successful year across our major initiatives.
Speaker Change: As we turn our attention to 'twenty to 'twenty four.
Speaker Change: There remains critical to grill to our growth strategy that we continue advancing our technology and expanding our production capacity.
Speaker Change: We are off to a good of stocks.
Kang Sun: In addition to launching a cycle and making progress on pre-construction activities at Amprius Fab, we announce that we have received and AS 9126 certification for our Fremont production facility. The Kuhlschluss certification was received from Smitherell Quality Assessment as we count the supplied batteries for the burgeoning electrical aviation industry, helping to advance the technology like eVTOL, HABs, and the drone. As shown in our recent customer wins and technological advancements, we believe that low-Ires can commercially offer capabilities that match those of Amprius batteries. Earlier this week, we were named one of the first companies in 2024, mostly innovative companies, largely due to our battery's advanced capabilities. We were also recognized at a recent International Battery Seminar, winning the Best of Show New Product Award for our technology and Femex 400-hour paquito sale. This is our second consecutive award in this category at IBS as well, as we won last year for our 450 W per kilo, 1,150 W per liter lithium-ion cells.
Speaker Change: Two our lungs in cycle, and they're making progress.
Speaker Change: Construction activities the M P S fab.
Speaker Change: We announced that we received.
Speaker Change: The E S 9100, 2016, such suffocation.
Speaker Change: Our Fremont production facility.
Speaker Change: Crucial certification received are from months to meet the real quality.
Speaker Change: And as we continue the supply of battery.
Speaker Change: So the burgeoning electric who'll have Asia industry, helping.
Helping to advance the Tagalong did you like EV Tor haps and the drums.
Speaker Change: As a shrinking our recent customer wins and the technology advancements.
Speaker Change: We believe that the wires and commercially offer capabilities that match those of M. P. S batteries.
Speaker Change: Early this week, we were named one of the fast company's 'twenty 'twenty four and most of the innovative companies largely due to our pet fees advanced capabilities.
Speaker Change: We were also recognized at the recent international Battery seminar, winning the best of show New report on the Cold War floor with.
Speaker Change: That makes 400 wawa potatoes sell.
Speaker Change: This is our second consecutive award in this category.
Speaker Change: Ibs as well.
As we want nastier flower 450, while replicate all 1100, 50, Wawa police or D C and Miami cell.
Sandra Wallach: Overall, these awards further underscore the demand for our innovative solutions. We are working hard to expand our production capacity to meet that demand, and we are confident in the path forward for Amprius. I will now turn the call over to our CFO, Sandra Wallach, to review our financial results for the quarter, and George. Thank you, Kang.
Overall these awards further to score the demand for our innovative solutions.
Speaker Change: We are working hard to expand our production capacity to meet that demand.
And we are confident in the past for MTS.
Speaker Change: What is that.
Speaker Change: I will now turn the call over two hours he absolutely central Wallach to review our financial results for the quarter.
Speaker Change: Andrew.
Andrew: Thank you King I would now like to spend a few minutes covering some key financial update as a reminder, our detailed financials can be found in our shareholder letter.
Sandra Wallach: I would now like to spend a few minutes covering some key financial updates. As a reminder, our detailed financials can be found in our shareholder letter. We finished the fourth quarter with $3.9 million in revenue, a $3.1 million increase compared to $0.8 million in the same quarter last year, and up $1.1 million sequentially. There were three drivers of this net increase in Q4 versus Q4 of 2022. First, our product revenue increased by $0.3 million from the prior year period to $0.9 million, largely driven by shipments to 41 customers in the quarter, a second consecutive quarterly record for Amprius. Additionally, although our product revenue remains largely driven by customer purchase orders that can arrive at uneven times throughout the year, we have shown consistent new customer growth and diversification in recent quarters. Also, of these customers, only two customers represented greater than 10% of revenue, a testament to our diverse customer set. Second, our development services revenue increased by $3 million, a reflection of the successful completion of the U.S. Army Manufacturing Technology Program delivery that Kang mentioned earlier. Development services are non-recurring in their nature due to disparate programs.
Andrew: We finished the fourth quarter with $3 9 million in revenue of $3 1 million increase compared to 0.8 million in the same quarter last year.
Andrew: And up 1.1 million sequentially.
Andrew: There were three drivers of this net increase in Q4 versus Q4 F. 2022.
Andrew: First our product revenue increased by 0.3 million from the prior year period to 0.9 million largely driven by shipments to 41 customers in the quarter.
Andrew: Second consecutive quarterly record for Empress, although our product revenue remains largely driven by customer purchase orders that can arrive at uneven times throughout the year, we have shown consistent new customer growth and diversification in recent quarters also at these customers only two customers represented greater than 10%.
Andrew: Revenue, a testament to our diverse customer set.
Andrew: Second our development services revenue increased by $3 million a reflection of the successful completion of the U S Army manufacturing technology program to liberate that Kim mentioned earlier.
Andrew: And services are nonrecurring in their nature do did this spread programs.
Sandra Wallach: Third, these two increases were partially offset by $0.2 million reduction in government grant revenue period over period due to the completion of the DOE program in Q3 2023 and the rest of the community. This represents a growth rate of over 100% from 2022. Moving to our profitability metrics, our gross margin was negative 162% for the full year compared to negative 128% in the prior year period. As we've discussed in prior quarters, we see significant gross margin variation as our product and services revenue mix fluctuates. Also, we anticipated that factory startup costs would ramp up as we start Colorado design and construction. However, longer term, we are confident that our GAAP gross margin will begin to normalize as we approach our capacity expansion goals.
Andrew: Third these two increases were partially offset by 0.2 million reduction in government grant revenue period over period due to the completion of the daily program in Q3, 'twenty 'twenty slate.
Andrew: Pivoting to our full year results, we closed 2023 with $9 1 million in revenue.
Andrew: This represents a growth rate above 100% from 2022.
Andrew: Moving to our profit profitability metrics, our gross margin was negative 162% for the full year compared to negative 128% in the prior year period.
As we've discussed in prior quarters, we see significant gross margin variation as our product and services revenue mix fluctuates.
Andrew: So he anticipated that factory start up costs would ramp up as we start Colorado design and construction.
Andrew: Longer term, we are confident that our GAAP gross margin will begin to normalize as we approach our capacity expansion goals.
Sandra Wallach: Now on to our operating expense management. Our operating expenses for the full year 2023 were $24 million, a 94% increase from the prior year. While we continue to maintain a lean cost structure, the increase is primarily attributed to increased G&A related to public company expenses and transaction-related costs, as well as targeted staffing increases in R&D and sales and marketing. Our gap net loss for the full year 2023 was $36.8 million, or a net loss of $0.43 per share with an $86.2 million weighted average number of shares outstanding compared to a net loss of $0.24 per share with $71.3 million weighted average number of shares outstanding.
Andrew: Now onto our operating expense management, our operating expenses for the full year, 2023, or 24 million and 94% increase from the prior year Ali.
Andrew: While we continue to maintain a lean cost structure. The increase is primarily attributed to the increased G&A related to public company expenses and transaction related costs as well as targeted staffing increases in R&D and sales and marketing our GAAP net loss for the full year 2023 was third.
Andrew: $6 8 million or a net loss of 43 cents per share with $86 2 million weighted average number of shares outstanding compared to a net loss of 24 cents per share with $71 3 million weighted average number of shares outstanding.
Sandra Wallach: Also, as of December 31st, 2023, there were 80 full-time employees, up from 76 in the third quarter and 59 at the end of 2022, with those employees primarily based in our Fremont, California location. Our share-based compensation for the year was $3.9 million compared to $2.7 million in 2022. Turning to the balance sheet, we exited the year with $45.8 million in cash and no debt.
Andrew: Also as at December 31st 2023, there were 80 full time employees.
Andrew: From 76 in the third quarter and 59 at the end of 2022 with those employees, primarily based in our Fremont, California location.
Andrew: Our share based compensation for the year was $3 9 million compared to $2 7 million in 2022.
Andrew: Turning to the balance sheet, we exited the year with $45 8 million in cash and no debt.
Sandra Wallach: Key drivers of our cash activity for the year were $25.6 million used in operating cash flow, $17.6 million used for costs related to the build-out of the Fremont and Brighton facilities, and 19.2 million in cash added primarily through the usage of our equity financing. Considering our business achievements and ongoing projects, we believe we are efficiently using capital to drive Amprius forward. Before I turn the call back over to Kang, I would like to take a moment to discuss our outlook for 2024. We expect to spend another $2-3 million completing the new cathode line and other support equipment for the megawatt-hour line in Fremont this year.
Key drivers of our cash activity for the year were $25 6 million used in operating cash flow.
Andrew: $17 6 million used for cost related to the build out of the Fremont and brighten facilities and.
Andrew: And $19 2 million inflow added primarily through the usage of our equity financing.
Andrew: Considering our business achievements and ongoing projects. We believe we are efficiently using capital to drive Empress forward.
Speaker Change: Before I turn the call back over to Kim I would like to take a moment to discuss our outlook for 2024.
Kim: We expect to spend another two to 3 million completing the new catheter fine and other support equipment. So the megawatt hour line and Fremont This year.
Sandra Wallach: As detailed design work on our facility and brightness is finalized and construction gets underway, we expect to finalize our construction cost forecast and will provide updates as the year goes on. As part of our strategic planning efforts, we filed a shelf registration on Form S3 in October 2023 and, once effective, established a new ATM facility for $100 million. We have terminated the committed equity facility concurrently with the effectiveness of the shelf registration statement.
Kim: As detailed design work on our facility in brightness finalized and construction gets underway, we expect to finalize our construction cost forecast and we'll provide updates as the year goes on.
Kim: As part of our strategic planning efforts, we filed a shelf registration on form S. Three in October 2023, and once effective and established a new ATM facility for 100 million.
Kim: We have terminated the committed equity facility concurrent with the effectiveness of the shelf registration statement.
Sandra Wallach: Subsequent to December 31st, 2023, we have raised gross proceeds of about $6.5 million through the sale of approximately 2 million shares under the ATM facility as of March 18th, 2024. To support our strategic plan, we are pursuing additional funding through multiple vehicles, including both equity issuances, such as warrant exercises and sales under our ATM, and non-dilutive sources, such as grants, loans, and incentives. With that, I will conclude the financial discussion and pass the call back to Kang. Thanks, Sandra.
Kim: Subsequent to December 31, 2023, we have raised gross proceeds of about $6 5 million through the sale of approximately 2 million shares under the ATM facility as of March 18th 2024.
Kim: To support our strategic plan, we are pursuing additional funding through multiple vehicles, including both equity issuances, that's just warrant exercises and sales under our ATM and non dilutive sources, such as grants loans and incentives.
Kim: With that I will conclude the financial discussion and pass the call back to Kim.
Kim: Thanks Sandra.
Kang Sun: First, Amprius' silicon anode technology continues to demonstrate unmatched performance in our industry. Amprius Battery takes a firm lead with their combination of safety, energy, power, charging time, and temperature performance, and they are uniquely positioned for the electrical mobility market.
Kim: I'd like to reemphasize, a few key points before closing.
Kim: First appears the city can handle the technology continues to demonstrate the unmatched performance in our industry.
M P is battery come and firmly.
Kim: Is there a combination of safety energy power charging time and attendance performance.
Kim: And there are uniquely positioned for the electrical mobility market.
Kang Sun: Second, Amprius batteries are commercially available today. We have been shipping commercial products since 2018, and our technological advancements continue to bring in significant customer demand. This quarter, we not only delivered to repeat customers and expanded our technical engagements, but we added 16 new customers as well. Our demand pipeline is robust, and we look forward to further building out our customer book in the coming quarter. Third, we are scaling our manufacturing capacity to serve significant demand ahead and support a US-based supply chain. We believe that the introduction of a side core helps us meet some of the near-term demands. Finally, we are looking forward to several exciting miles in the year ahead. In 2024, we are working to begin construction of our Gigawatt skill facility in Brighton, Colorado.
Kim: Second time piece of batteries are commercially available today.
Kim: We have a seat we have been shipping commercial products since 2018, and now with Tiger technological advancement continue to bringing in significant customer demand.
Kim: This quarter, we laid out on the P. D word to repeat the customers and expand our technical engagements, we added 16, new customers as well.
Kim: Our demand pipelines are robust and.
Kim: And we look forward to further building out our customer book.
Kim: The coming quarters.
Kim: Third we are scaling our manufacturing.
Kim: Capacity to service the demand hit and the support of U S based supply chain.
Kim: We believe that the introduction of a site core helps us be the some of the near term demand.
Kim: Finally, we are looking forward to several exciting milestones in the year ahead.
In 2024.
Kim: We are working to begin construction of our gigawatt scale facility and bright in Colorado.
Kang Sun: We optimize our CEMEX mass production process in Fremont and for new customers and deliver additional sales to current customers and many more. Ren Paopao said manufacturing efforts to secure hundreds of megawatts of capacity in 2024, so that we can maximize our opportunity to deliver cycle batteries to customers, commercialize our 500-watt per kilo cells and continue to bring to market new and innovative products, and continue to innovate and push the boundary of what is possible for our industry. As we look to the rest of the year, our strategy and focus on Amprius remain unchanged.
Kim: Fully optimize our sandbox mass production process in Fremont.
Kim: And the new customers and deliver additional sales to current customers.
Kim: We are increasing our simex sale production.
Kim: Grandpa with toll manufacturing efforts to see Q hundreds of megawatts of capacity in 2024.
Kim: So that we can maximize our opportunity to be recycled batteries to customers.
Kim: Realize our 500 wawa per kid ourselves that continue to bring to market new and innovative products.
Kim: And they continue to innovate tend to push the boundary of what it is it possible for our industry as.
Kim: As we look to rest of the year, our strategy and the focus and the M. P. S at remains unchanged we.
Operator: We have a tremendous opportunity ahead, with a product portfolio that positions us to both grow in the aviation market and expand to other industries seeking batteries with leading performance. The opportunities in front of Amprius are enormous, including the 1.25 billion building conformal variable battery market by 2030. The 33 Building Aviation Battery Market by 2030, and the 500-man-building EV battery market by 2033, all of which Amprius grows past in coming years. 2023 was a very productive year for the company, and we believe that 2024 is off to a strong start. We look forward to continuing to deliver what we have planned and promised in the year ahead. Thank you for your continued support of Amprius Technology. We said, I will turn it back to the operator for Q&A.
We have a tremendous opportunity ahead.
Kim: The product portfolio that positions us to both closing at eastern Marquis and expand it to other industries seeking batteries with leading performance.
The opportunities in front of the M. P. S are enormous.
Including the 1.5 beauty conformal variables battery marquee 20 search.
Kim: The 33 beauty aviation battery market that 2030.
Kim: Under the 500 non beauty EV battery market at 2033.
Oh, which I'm appears screws pests in coming years.
2023 was a very productive year for the company.
Kim: Although we believe that 'twenty 'twenty four is off to a strong stocks.
Kim: We look forward to continuing to.
Speaker Change: Did you ever why do we have planned and the promised in the year ahead.
Speaker Change: Thank you for your continued support of M. P is take a lot of juice.
Speaker Change: With that.
I will turn it back to the operator for Q&A.
Speaker Change: Thank you.
Operator: Thanks, and at this time, we'll open up the line to many more, limit their comments to one question, and one follower. To ask a question, press star 1 underneath, and the Cops, and Kate, your line is in. You may press star 2 if you would like to remove your questions. It may be necessary to pick up your handsets, and again press star one to ask a question and limit yourself, and the following.
Speaker Change: And at this time, we'll open up the line for questions.
Speaker Change: Company request that each participant limit their comments to one question and one follow up.
Speaker Change: To ask a question press star one on your telephone keypad.
Information tone will indicate your line is in the question queue.
Speaker Change: You May press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys once it got press star one to ask a question on limit yourself to one question and one follow up.
Speaker Change: Okay.
Speaker Change: Thank you and our first question comes from Colin Rusch with Oppenheimer and company. Please state your question.
Operator: Thank you. And our first question comes in from Colin Rush with Oppenheimer and Karen Korn. Hi, this is Lydia.
Speaker Change: Hi, This is <unk> on for Colin.
Could you speak to the customer direction and opportunity you're pursuing with <unk>.
Kang Sun: I'm on behalf of Colin. Could you speak to the customer direction and opportunity you're pursuing with Cycle? and the rest. We have been working on Sitecore for some time. We have explored this market since the middle of 2023. We received very strong feedback from customers.
Speaker Change: What has the initial feedback so far.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: We have been working on cycle for some time.
Speaker Change: We explore this market seems a needle for 2020 three we received a very strong feedback from the customers.
Kang Sun: So, Cycle has form factor flexibility. Currently, we are not only supplying the pouch cell we have been making in the last few years. This particular product enables us to supply energy cylindrical cells as well, and then for my follow-up on RAMP, are there any surprises you're running into on the ramp-up of your megawatt scale tool? And then in Colorado, how's the permitting and procurement of equipment going as you figure out Let me answer the ramping up question. We have a food facility set up in Fremont, California that would enable us to produce approximately two megawatt hours of electricity and many more products at the end of the year. For Colorado, we have finished the rezoning. Rezoning was successful.
Speaker Change: So our cycle has a full.
Speaker Change: Well in fact, hopefully visibility.
Speaker Change: Currently we're not only supplying the powered shell we have been making the last few years.
Speaker Change: This particular part out of enable us to supply a SIGINT vehicle energy cylindrical sell as well.
Speaker Change: Great and then for my follow up on ramp are there any surprises you're running into.
Speaker Change: On ramp up of your megawatt scale tool and then in Colorado, How's the permitting and procurement of equipment going on if you can figure out the best use of your balance sheet.
Speaker Change: No.
Speaker Change: Yeah, Let me answer the.
Speaker Change: The ramping up for a question.
Speaker Change: We have a fourth facility.
Speaker Change: Facility set up in Fremont, California that would enable us to produce approximately two megawatt hour.
Speaker Change: Product.
Speaker Change: At the end of the year.
Speaker Change: Colorado, we finish of the rezoning.
Speaker Change: Only if it was successful.
Operator: Now we are working on the air permitting and emergency response plan. Thank you, and our next question is from Jed Dorsheimer with William Blair. You have Mark Shooter on for Jed Dorsh.
Speaker Change: Now we are working on the permitting.
Speaker Change: And our emergency.
Speaker Change: Sounds great.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: And our next question comes from Jed door Shimer with William Blair. Please state your question.
Jed Shimer: Alright, you have mark shooter on for Chad North China.
Operator: Thanks for your time, Tom. Could you give a little bit more color on the revenue breakdown between SciMax and SciCore? So Mark, this is Sandra.
Jed Shimer: Thanks for your time.
Jed Shimer: Okay.
Could you give a little bit more color on the revenue breakdown between <unk> and <unk>.
Jed Shimer: So mark this is Sandra so we have not disclosed the separation of those two is reported under our product revenue in our filings.
Sandra Wallach: So we have not disclosed the separation of those two. It's reported under our product and revenue in our filing. Okay. Directionally, do you think that, you know, for 2024, there will be even one more than the other?
Jed Shimer: Okay Directionally do you think that you know for the.
Sandra Wallach: For 2024 that there'll be even one more than the other.
Sandra Wallach: We will still be limited in 2024 by the capacity that is already spoken for here in Fremont of two megawatts. However, there is not a capacity restriction on PSYCORP because it's being made by our manufacturing partners. So it has the potential to be much larger. Okay, great. Could you speak a little bit about the IRA subsidies that you're, are you participating in any of that with the facility in Fremont? Yes, so we have gone through our study with our tax advisors, and we're pursuing the 45X tax credit, the manufacturing tax credit, which is 10% of the anode manufacturing cost and $35 per kilowatt hour.
Sandra Wallach: We will still be limited in 2024 by the capacity that is already spoke for here in Fremont as two megawatts.
Sandra Wallach: That there is not a capacity restriction.
Sandra Wallach: On side core because it's being made by our co manufacturing partners. So it has the potential to be much larger.
Okay great.
Sandra Wallach: Did you could you speak to a little bit of the Irish subsidies that you're are you participating in any of that with the facility.
Sandra Wallach: Facility in Fremont.
Speaker Change: Yeah. So we we have gone through our study with our tax advisers and we're pursuing fortify the ex tax credit manufacturing tax credits.
Speaker Change: Which is 10% of the anode manufacturing cost and $35 per kilowatt hour. So that'll be part of our tax planning for 2020 three we can take advantage of it with this year's filing and part of our financial planning going forward.
Sandra Wallach: So that'll be part of our tax planning for 2023. We can take advantage of it with this year's filing and as part of our financial planning going forward. Awesome. Thank you, Sandra.
Speaker Change: Awesome.
Speaker Change: <unk> Center.
Operator: Thank you. Our next question is Chris Souther with B. Reilly Securities Police. Hi, thanks for taking my question. On the Side Core, how does the pricing compare to, you know, kind of commodity batteries that are out there and as well as Side Max?
Speaker Change: Thank you. Our next question comes from Chris Souther with B Riley Securities. Please state your question.
Yeah, Hi, Thanks for taking my question.
On the hardcore.
Christopher Curran Souther: How does the pricing compared to you know kind of commodity batteries that are out there and well side that I'm, just kind of curious like where that sits as far as kind of premium pricing.
Kang Sun: I'm just kind of curious, like where that sits as far as premium pricing would be helpful to understand. Chris, since we have a large-scale manufacturing facility available to us, today, we certainly have a competitive production cost. In terms of ASP, the pricing, what do we charge for our customers? Because of the superb performance our battery delivers, we deliver a very high energy density as well as a long cycle. So we still commend the premium for those applications. Got it? Okay. And maybe just a little more on some of the application focus for PSYCOR. It seems like it's some pretty similar end markets that you're going after with the PSYMAC that we've been talking about for quite some time. Is the additional form factor something that kind of increases the different applications you're going after or customers you're going after?
Christopher Curran Souther: It would be helpful to understand.
Speaker Change: Yeah, Chris.
Christopher Curran Souther: So we have our largest scale manufacturing facility available to us.
Christopher Curran Souther: So today, we certainly have a competitive or a matter of fact quite often cost.
Christopher Curran Souther: In terms of E. S T. The pressing a why do we charge a cloud customer.
Christopher Curran Souther: Cause of the.
Superb performance, our battery delivers so where do you live or very high energy density. So it's a long cycle. So are we still come in the premium for those applications.
Speaker Change: Got it okay.
Speaker Change: Maybe just a little more on some of the application focus for cycle or is that.
It seems like some pretty similar end markets that you're going after with <unk>.
Speaker Change: Yeah.
Speaker Change: We've been talking about for quite some time.
Speaker Change: If there are additional form factors or something that kind of increases the different applications, you're going after or.
Speaker Change: Customers, you're going after maybe just.
Kang Sun: Maybe just at a higher level, like if there's any differentiation as far as the end market focus that you're looking at with that new product. Our end market focus remains the same, but the cycle products offer a flexible form factor, so they certainly enable us to participate in other market segments. We have our product catalog available. From that, you can see we have already achieved EV performance. That means the energy is 350 watts per kilo, 1200 cycles, and Nita or other EV battery specifications. The cylindrical cell opened a new market for us, not only for aviation but also for other electrical mobility segments.
Speaker Change: Like what.
Speaker Change: If there's any differentiation as far as the <unk>.
End market focus.
With that new product.
Speaker Change: Yeah.
Speaker Change: And market forecasters remain the same but the cycle of product offer a flexible form factor. So certainly enable us to participate in other market segments.
Speaker Change: Well, you'll pay Oh.
Speaker Change: We have I would put out a catalog available for them that you can see we have beds, we already achieved the ebay performance that means.
Speaker Change: And how is that.
Speaker Change: 51 euro per cable a 1200 cycles.
Speaker Change: Lisa or other EV battery specifications.
Speaker Change: The cylindrical cell opened a new market for us not only for aviation or social other electrical mobility segments.
Operator: Okay, that's helpful. I'll hop in the queue, and our next guest, and more with Ross Hey, everybody. Great to see you earlier this week.
Speaker Change: Okay. That's helpful I'll hop in the queue. Thanks.
Speaker Change: Our next question comes from Chip Moore with Ross M. Cam. Please state your question.
Timothy M. Moore: Hey, everybody great to see you earlier this week I wanted to ask.
Operator: I wanted to ask another one on PSYCOR. I think you talked about the potential for 100 plus megawatt hours of demand there in the future or already. Maybe just help us think about the ramp of pulling capacity and how we should think about potential revenues there. The manufacturing capacity We have been developing those customers, those partners for some time, so the manufacturing capacity is available for us. It's over hundreds of megawatts. The question is the qualification.
Timothy M. Moore: Another one on site for.
Timothy M. Moore: I think you talked about potential for 100, plus megawatt hours of demand there in the future.
Timothy M. Moore: Or already maybe just help us think about the ramp of filling capacity and how we should think about potential revenues there.
Timothy M. Moore: The manufacturing capacity are we we have been developing those customers. There's a part of it or is it for sometime so manufacturing capacity is available for US now is over 100 megawatts.
The question is of the qualification so customers still need to qualify a they support Argus.
Kang Sun: So the customers still need to qualify these products. We have received some purchasing orders for commercial applications already, but a large fraction of the customers are still in the evaluation phase.
Timothy M. Moore: We have some purchasing orders.
Timothy M. Moore: For commercial applications already.
Timothy M. Moore: But the larger fracs down with the customer is still in the evaluation phase.
Kang Sun: We believe the commercial revenue will come in later in the year. So capacity is not our issue today, but the customer has to go through the factory qualification and the product qualifications. Got it. That's very helpful, Kang.
Timothy M. Moore: We believe.
Timothy M. Moore: The commercial revenue will come in later over the year.
Timothy M. Moore: So the capacity is not the issue today.
Timothy M. Moore: But the customer has to go through the factory qualification and the product qualifications.
Speaker Change: Got it that's very helpful.
Kang Sun: Appreciate that. And maybe on my follow-up for Fremont, I guess, anything to keep in mind as the year progresses, the tie-in of the cathode line or any other equipment that you need to put in, any downtime or anything like that, we should keep in mind. Thanks. Our capital line will come in probably the third quarter. That's the only missing piece of equipment available on emission equipment at this time. The reason is we have for our council a very specific coding specification. So the supplier wants to make sure they can and the status of our specification. Got it.
Speaker Change: Appreciate that.
Speaker Change: Maybe on my follow up for Fremont I guess.
Speaker Change: Anything to keep in mind as it progresses.
Speaker Change: The cathode line or any other equipment that you need to put in any downtime or anything like that we should keep in mind. Thanks.
Speaker Change: Yeah, I was careful our economy problems.
Speaker Change: For the quarter, that's the only missing piece of equipment.
Speaker Change: The only missing equipment out of the Sky.
Speaker Change: The reason is that we have for our castle.
Speaker Change: That's a very specific coding, especially vacation so the supplier wanted to make sure they can.
Speaker Change: Need to satisfy outlet specification.
Okay.
Speaker Change: Yeah.
Operator: Okay. Congratulations on all the progress this year. Thanks. Thank you, and our next question comes from Jeff Grant with Alliance Global Partners. Please state your question. Good afternoon.
Speaker Change: Got it okay. Congrats on all the progress this year. Thanks.
Speaker Change: Thank you.
Speaker Change: And our next question comes from Jeff Gramm with Alliance Global Partners. Please state your question.
Jeff Grant: Good afternoon.
Operator: Question for you guys on the 500 watt hour product that's going to be commercially available this year. Just curious to dig in on the timing a little bit more. Is that going to be a back half of 24, kind of in line with that cathode line? And just, you know, the big picture, kind of the pipeline that you guys are seeing in terms of demand there? Yes, the Kethel line will not affect the shipment of this product.
Jeff Grant: A question for you guys on the AR 500 Watt hour product, that's going to be commercially available. This year, just curious to dig in on the timing a little bit more.
Jeff Grant: Is that going to be that back half of 'twenty four kind of in line with with that cathode mine and just big picture kind of the pipeline that you guys are seeing in terms of demand there.
Jeff Grant: Yes.
Jeff Grant: The careful that we're not effect.
The shipment of this product.
Kang Sun: We are planning to have this product shipped to customers this year. Okay, thank you. And for my follow-up on the R&D side of things, curious, you know, kind of the main initiatives or goals maybe for 2024, if you had to maybe, you know, bucket those in terms of key objectives, whether those relate to things like, you know, density, cycle life, different form factors, or just any other kind of big picture objectives you guys are thinking about as relates to R&D in 2024. Thanks. Yeah, we have a very ambitious goal for 2024. You will see the improvement in energy density and power, particularly the balance of energy density and power.
Jeff Grant: Planning to have these products to ship it at some customer this year.
Jeff Grant: Okay.
Jeff Grant: Yes.
Okay. Thank you and my follow up on the R&D side of things curious you know kind of main initiatives or goals might be for 2024. If you had to maybe bucket those in terms of key objectives, whether those relate to things like density cycle life different form factors or just any other kind of big picture objectives, you guys are thinking about.
Jeff Grant: As it relates to R&D and 24.
Yeah, we have very ambitious goal for 'twenty four.
Jeff Grant: North Sea that energy.
Jeff Grant: <unk> I know your density and the power, but he couldn't get the balance of the energy density and the power.
Kang Sun: We are working on additional safety features for our battery. So, in 2024, you will see some breakthrough performance delivered from Amprius Lab. Alright, we'll stay tuned. Thanks for your time.
Jeff Grant: Yeah, we added additional safety we are working on additional safety features for our battery. So the 'twenty 'twenty four you will see some breakthrough performance delivered a swollen I'm pleased slip.
Jeff Grant: <unk>.
Speaker Change: Alright, well stay tuned thanks for the time.
Speaker Change: Okay.
Operator: Thank you. Just a reminder to the audience: to ask a question, press star 1. And to remove yourself from the question queue, press star 2 on your telephone keypad.
Speaker Change: Thank you just a reminder to the audience to ask a question press Star one.
Speaker Change: And to remove yourself from the question queue Press Star two on your telephone keypad.
Operator: Our next question comes from Donovan Schaffer with Northland Capital Markets. Please state your question. Hey guys, thanks for taking the questions. So just real quick for the first one.
Speaker Change: Our next question comes from Donovan Schafer with Northland Capital markets. Please state your question.
Donovan Schafer: Hey, guys. Thanks for taking my questions. So just real quick for the first one.
Kang Sun: Sorry if I missed this, and I'm guessing with the cathode line not coming on until Q3. I just want to clarify, so is it correct to say that the run rate for the megawatt hour capacity in Fremont right now is, you know, from that incremental equipment is essentially zero? Is it still just the, you know, 250 kilowatt hours of capacity at the moment? Or are you actually able to get some incremental capacity out of whatever has been put in place already? So the line started running, already producing annuals.
Donovan Schafer: Sorry, if I missed this and I'm guessing.
Donovan Schafer: Guessing was the cathode line not coming on for Q3 I just wanted to clarify so is it is it correct to say that the run rate for the megawatt hour capacity in Fremont right now is from.
Donovan Schafer: From that incremental equipment is essentially zero, it's still just the.
Donovan Schafer: 250 kilowatt hours of capacity at the moment or are you actually able to get some incremental capacity out of whatever it has been put in place already.
Donovan Schafer: So the Landstar Ronnie.
Donovan Schafer: Already producing animal as I mentioned, we have been sourcing castle from our.
Kang Sun: As I mentioned, we have been sourcing cattle from our manufacturing partners for years, so missing this cattle line for next quarter is not going to affect our output. So today we have already started producing the battery and the anode, but the full capacity will be reached sometime in Q4. And what would you say is the kind of run rate capacity right now? Is it half a megawatt hour, one megawatt hour?
Donovan Schafer: Our manufacturing partners for years, So it's kind of amazing. These castle land for for next quarter is not going to affect our Oh puts.
Donovan Schafer: So.
Donovan Schafer: Today, we already started producing the battery in the animal but as a full capacity we will.
Donovan Schafer: B reach that sometimes in Q4.
And what would you say is kind of the run rate capacity right. Now is the megawatt Hoffman I go out our one megawatt hour.
Kang Sun: Not there yet. I think that we, remember, we just set up this line in December, and many more. Okay, okay. And then for 2024, I know you don't give revenue guidance or anything like that, but just in kind of a general sense or at a high level, you know, with the line coming on and the capacity increasing, should we at least expect to see a revenue increase in 24 versus 24? and maybe even something like a run rate based on the Q4 numbers. Yeah, that's a great question. Go ahead. Yeah Go ahead if you want.
Donovan Schafer: Not there yet I think that we remember we just to set off of the flying December Mhm Mhm, Yeah part of the this line certainly help us to meet our revenue plan.
Donovan Schafer: Yes.
Donovan Schafer: Okay, Okay, and then for.
Donovan Schafer: For 'twenty 'twenty four I know you don't give like a revenue guidance or anything like that but just in kind of a general sense or at a high level, you know with a Y in coming on in the capacity increasing should we at least expect to see a revenue increase in 24 versus <unk>.
Donovan Schafer: Three and maybe even something like a run rate based on the Q4 numbers.
Donovan Schafer: Okay.
Yes, that's a great question.
Speaker Change: Go ahead.
Sandra Wallach: Okay. So that's a great question. So we absolutely expect to see our revenues continue to ramp up through 2024, and over 2023. As Kang mentioned, we've got two drivers of that.
Speaker Change: Okay. So that's a great question. So we absolutely expect to see our revenue continue.
Speaker Change: Continue to ramp up through 2024.
Speaker Change: For 2023.
Speaker Change: King mentioned, we've got two drivers of that one is the capacity for Fremont.
Sandra Wallach: One is the capacity for Fremont that will be coming online and starting to contribute to revenue soon and, you know, getting to what we think is capacity leaving 2024 in Q4. We also have the Sidecore product, which is available today, and we've been sampling that under market exploration. That's, again, not capacity constrained, but it will continue to and the rest of the team. Kang, did you have anything to add?
Speaker Change: It will be coming online and starting to contribute to revenue soon.
And as you know getting to what we think its capacity exiting 2024 in Q4. We also have besides core product, which is a basketball today and we've been sampling that Ontario market exploration, that's again not capacity constrained, but it will.
Speaker Change: <unk> continued to incur.
Speaker Change: Increase as customers get through their qualification and testing.
Speaker Change: Yeah.
Kang Sun: Yeah, 2024 certainly is going to be an exciting year for us. Now we have two product families. Of the product family, we actually have significant production capacity behind us. Okay, and then just one last question. I can ask about, you know, you mentioned long lead time items for the Colorado facility. And so I know there will be a full cost kind of estimate that comes out later and that will be down the line, but can you give us any just kind of broad sense of what kind of investments or, you know, how much funds are needed to do that type of near-term procurement, you know, for long lead time items or other things that sort of can't wait to Just the rough terms.
Speaker Change: Did you have anything to add.
Speaker Change: Yeah.
Speaker Change: Plenty for US certainly is going to be exciting year for US now we have a two product families.
Speaker Change: Well with the product of a family you actually have Oh, so you could even get in touch with us and capacity would be house.
Speaker Change: Okay.
Speaker Change: And then just one last question if I can.
Can I ask about Ah Yeah, you mentioned long lead time items for the Colorado facility.
Speaker Change: And so I know there'll be a forecast kind of estimate that comes out later and that will be down the line, but can you give us any just kind of broad sense of what.
Kind of investments or how much funds are needed to do that type of near term procurements for long lead time items or other things that sort of can't wait.
Speaker Change: Get a full budget put together just you know.
Next.
Speaker Change: Or whatever this year or something like that or for some of these are just kind of what expenses are involved in that just a rough terms.
Operator: So under 10 million. Yeah. So the procurement of long-lead-time items around mechanical and electrical and plumbing was for things like the dehumidifier, the switchgear, and the transformers.
Speaker Change: So.
Speaker Change: Yeah.
Speaker Change: So the procurement of long lead time items around mechanical and electrical and plumbing worth for things like the dehumidifier, the switch gear and the Transformers those.
Sandra Wallach: Purchase orders and down payments were placed in Q3 with some additional payments in Q4, so that's already been taken care of. Those are the long, long poles in the tent.
Speaker Change: Purchase orders and down payments were placed in Q3.
Speaker Change: With some additional payments in Q4, so that's already been taken care of those or that.
Speaker Change: Long long pole in the tent.
Sandra Wallach: And we're focused on permitting and finalizing the design in order to be able to share a high-confidence construction and build out budget. Okay, okay, fantastic. Thanks, guys. I'll take the rest of my questions offline. Thank you, Anne. Our next question: Dayal, Wes H.C., and Drew Brofman, everyone.
Speaker Change: And where work we're focused on permitting and finalizing the design it in order to be able to share at a high confidence construction and build out.
Speaker Change: Right.
Okay. Okay fantastic. Thanks, guys I'll take the rest of my questions offline.
Speaker Change: Thank you and our next question comes from Amit Dayal with H C. Wainwright. Please state your question.
Amit Dayal: Good afternoon, everyone.
Operator: Sandra, in terms of costs in 2024, should we expect some improvements on the gross margin side? Given volumes could be a little bit higher for you. And then on the operating costs also, how should we expect costs in 2024? And religiously, great, great three.
Amit Dayal: In terms of you know of course in 2020 for should we expect some.
Amit Dayal: <unk> on the gross margin side.
Amit Dayal: Given the volumes could be a little bit higher for you and me.
Amit Dayal: And on the operating cost also like you know how should we expect costs Greg on your floor.
Amit Dayal: Religious were greater than three.
Sandra Wallach: Great question. So we will get economies of scale on Fremont. You're absolutely right.
Greg: Great question so.
Greg: We will get economies of scale on Fremont, you're absolutely right, but we'll also start continue to incur cost in Colorado without the benefit of revenue in 2024.
Sandra Wallach: But we'll also start to incur costs in Colorado without the benefit of revenue in 2024. So there's design costs and pre-construction work that is ongoing. So I think the margins are still going to be under some pressure in 2024, and again, we're not expecting to have a significant change in operating expenses. We had 24 million in full year 2023. We continue to look surgically at where we need to add resources, but I wouldn't expect to see anything significantly different. Okay. Thank you for that. And then, you know, for 2024. Do you have a sense of what your military versus commercial revenue mix could be? So that's hard for us to tell because we sell through OEMs. We're not selling directly unless we're doing a development program, so that's hard for us to estimate.
So there's design cost and and and Preconstruction.
Greg: Instruction work that is ongoing so I think the margins are still going to be under some pressure in 2024.
And again, we're not expecting to.
Greg: Do you have a significant change in operating expense we had.
Greg: 'twenty.
Greg: $24 million in full year 2023.
Greg: We continue to look surgically, where we need to add resources.
Greg: But I wouldn't expect to see something significantly different.
Speaker Change: Thank you for that and then you know for 2024.
Speaker Change: Do you have a sense of you know what Joe military versus commercial revenues mix could be.
Speaker Change: So that's hard for us to tell because we sell through the Oems were not selling directly unless we're doing a development program. So that's hard for us to estimate what we do know is that we continue to build our relationships with folks.
Sandra Wallach: What we do know is that we continue to build our relationships with folks like Air Environment, Taliban Clear, and Alto Airbus, as well as BAE Systems. So the development program that we just wrapped up, the $3 million for the U.S. Army, you know, that was the largest one that we had in the backlog, and so on. Yeah, that's all I have for now, and I have other questions offline. Thank you. This concludes our question and answer. If you have any additional questions, you may contact Amprius' investor relations at ir.amprius.com. I'd now like to turn the call back over to Dr. Sun for his comments. Thanks again, everyone, for joining us today. As a reminder, you may learn more about our company from the additional updates and find out about the upcoming events and presentations from the investor relations section of our website. We hope to see you at our upcoming investor conferences, and we'll continue to update you on the exciting progress we are making in Colorado. Finally, I'd like to thank our employees, partners, and shareholders for their continued support. Thank you for joining us today for Amprius Technologies and Full Year 2017, and many more.
Speaker Change: Like Aerovironment telephone player and also Airbus as long as the AE system. So.
Speaker Change: The development program that we just wrapped up the $3 million and U S Army.
Speaker Change: You know that was the largest one that we have in the backlog.
Speaker Change: Okay understood.
Yeah, that's all I have for nowadays I think my other questions offline. Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you at this time this concludes our question and answer session.
Speaker Change: You have any additional questions you may contact <unk> Investor relations team at IR at <unk> Dot com.
Dr. <unk>: I'd now like to turn the call back over to Dr. <unk> for his closing remarks.
Dr. <unk>: Thanks again, everyone for joining us today as a reminder, you may learn more about our company and additional updates and they learn about it the upcoming events and presentations from the Investor Relations section of our website.
Dr. <unk>: We hope to see you at our upcoming Investor conferences, and the World continue to update you on the exciting progress we are making in Colorado.
Dr. <unk>: Tony I like to thank our employees partners and shareholders for their continued support.
Dr. <unk>: Peter.
Speaker Change: Thank you for joining us today for Empire technologies fourth quarter and full year 2023 earnings conference call.
Speaker Change: You may now disconnect.