Q1 2024 Amprius Technologies Inc Earnings Call

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Operator: Good afternoon. Welcome to Amprius Technology's first quarter 2024 earnings conference call. 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 embrace technologies first quarter 2024 earnings conference call joining us for today's presentation are the company's CEO, Dr Chang Sun and CFO Sandra Wallach.

Operator: At this time all participants are in listen only mode behind managements 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 and the timing and the ability of Ambry has to build its large scale manufacturing facility expansion.

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, and 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. 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.

Operator: For a more complete discussion of these risks and uncertainties, please refer to Amprius' filings with the Securities and Exchange Commission. Finally, I would like to remind everyone that this call is being webcast, and a recording will be made available for replay on the company's investor relations website at ir.amprius.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 will now turn the call over to Amprius Technologies CEO, Dr. Kang Sun, for his comments. Sir, please proceed.

Speaker Change: Manufacturing capacity scale business and achieve a sustainable cost structure. These statements involve known and unknown risks uncertainties and other important factors that may cause amp reuses results performance or achievements to be materially different from any future results performance or achievements expressed or implied in such forward looking statements.

Speaker Change: 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 call is being webcast and a recording will be made available for replay on the company's investor Relations website at IR got Andrea Dot Com. In addition to the webcast the company as opposed to shareholder letter.

Speaker Change: That accompanies these results, which can also be found on the Investor Relations website I will now turn the call over to embrace technology CEO. Dr. Gang. So I'm curious comment Sir Please proceed.

Kang Sun: Welcome, everyone, and thank you for joining us this afternoon. On today's call, I will report on our accomplishments from the first quarter. We are also highlighting some of the upcoming milestones we are expecting for this year. Our CFO, Sandra Wallach, will then discuss our financial results for the period.

Kang Sun: Welcome everyone and thank you for joining us this afternoon.

Sandra Wallach: This call and we'll report on our accomplishments from the first quarter.

Sandra Wallach: Our ortho highlighting some of the upcoming milestones we are expecting for this year.

Sandra Wallach: Our CFO Don go Wallach will then discuss our financial results for the period.

Kang Sun: After that, I will share some closing remarks before opening the call for questions. Before I give a recap of the quarter, I would like to briefly introduce Amprius to those who may be new to the company. That's a reminder.

Sandra Wallach: I'll bet I will share some closing remarks before opening the call for questions.

Kang Sun: Before I gave her the cabo over the quarter I would like to briefly introduce MTS to those who may be new to the company.

Kang Sun: As a reminder, here at MKS, we develop manufacture and market high energy density and high power density batteries.

Kang Sun: Here at Amprius, we develop, manufacture, and market high-energy density and high-power density batteries, with applications across all segments of the electrical mobility industry, including the aviation and the EV industry. The Crosshower, Betsy Poliforio, we offer unmatched performance, including batteries capable of a specific energy density of 450 W per kilowatt and a volumetric energy density of 1150 W per liter. 10C power capability, the extreme fast charge rate of 0 to 80% of the 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 the safety design feature that enables us to pass the United States military's benchmark nail penetration test.

Kang Sun: What was the application across all segments of the it actually somewhat but it's including the aviation and the EV industries.

Kang Sun: Yeah.

Kang Sun: Across our battery on the 14th.

Kang Sun: We offer unmatched performance.

Kang Sun: <unk> batteries capable for specific energy density over 450 Wawa potato.

Kang Sun: And the volume metric of energy density of 11, six do you are you there.

Kang Sun: You shouldn't see power capability, the extreme fast charge elites of zero to 80% of the charge in <unk>.

Kang Sun: For me that he's six minutes.

Kang Sun: The ability to all Pete in the wide temperature range of them.

Kang Sun: That's a 30 degrees Celsius up to 55 degrees Celsius.

Kang Sun: And the safety design features that enable us to pass in the United States military and Schmuck new penetration test.

Kang Sun: Last year, we achieved third-party validation of our latest 500-whole-hour-per-kilo and 1300-whole-hour-per-liter battery platform, which we expect will be ready for commercial shipment later in 2024. Each of these performance parameters is critically important to electrical mobility applications. Not only do our batteries enable certain aircraft and vehicles to function, but they enable our customers to achieve their economic targets as well. I would believe that there are no other commercial batteries on the marquee that can perform at these levels today.

Kang Sun: Lisa last year.

Kang Sun: We achieved a third party validation of our latest 500, while replicate them 1700, Wawa police or pet food platform.

Kang Sun: Which we expect to be ready for commercial shipping later in 2024.

Kang Sun: Each of these performance parameters is of critical importance to electrical mobility applications.

Kang Sun: Not only do our batteries enables certain aircraft and the vehicles function.

Kang Sun: The label our customers to achieve their economics are gates as well.

Kang Sun: It's our belief that there are no other commercial batteries on the marquee and can perform at these levels today.

Kang Sun: Yeah.

Kang Sun: Amprius is a silicon battery technology pioneer, with over a decade of development experience, a strong patent portfolio of over 80 issued patents and patent applications, and a long track record of commercial shipments and customer success. Turning now to a review of our first, to start 2024, in addition to driving industry-leading performance with our battery technology, we took critical steps to drive our scale-up effort and increase our output to meet the growing demand for our solution.

Kang Sun: PSC the city can angle batteries, a lot of your pioneer with over a decade of development experience a strong patent portfolio of over 80 issued patents and patent applications.

Kang Sun: And the novel Quake Bad court of commercial shipments and customer successes.

Kang Sun: Okay.

Kang Sun: Turning now to a review of our first quarter.

Kang Sun: Without the 'twenty 'twenty four.

Kang Sun: In addition to providing industry, leading pro forming with our battery technology.

Kang Sun: Took a critical steps to drive our scale up effort.

Kang Sun: And the increase our all put to meet the growing demand for our solutions.

Kang Sun: In January, as part of this continued push to make our products available to the electrical mobility space, we launched our all-new cycle product family to go along with our existing silicon nanowire platform, now called SEMEG. Complementary to Cenex, which is Amprius' highest energy density performance battery offering, the cycle platform services applications that demand both high energy density and longer cycles, offering up to 400-watt replicators and as many as 1,200 cycles at the full depth of this talk. The cycle product family also has additional form factor flexibility, even more so for both the pouch and the cylindrical cell form factor.

Kang Sun: And generally it's a part of it is just the continued push to make our products available to the electrical mobility space.

Kang Sun: We launched our all new cycle product family to go along with our existing sneak another one platform now called a sandbox.

Kang Sun: Somebody mentoring to stand next quickie is M. P is the highest the anarchy Dansky, Paul Forman battery offering.

Kang Sun: The cycle of platform services applications led to demand both high energy density and longer cycle life.

Kang Sun: All thing up to 400, a wawa potato and as many as 1200 cycles at a full depth of these touch.

Kang Sun: The cycle part out of family also has additional form factor flexibility.

Kang Sun: Oh boy for both both pouch and synergistic with cell phone factors.

Kang Sun: This enables their utilization across a broader range of applications, such as Yibang and other micro-mobility market segments, in addition to having another product platform available for Amprius customers. Introduction of a cycle battery accelerates our revenue growth without additional capital investment and serves our customers without delay to produce psycho-vegetarianism. We take advantage of the existing available lithium-ion battery production capacity in the industry and have two manufacturers as a bridge between now and the operation of our own large-scale manufacturing facility. This tool manufacturing agreement provides us with hundreds of mega hours of cycle capacity today. Overall, CYMAX and CYCOR are the culminations of years of work in silicon aerospace.

Kang Sun: This thing naval some value.

Kang Sun: <unk> across a broad range of applications.

Kang Sun: Chassis E bike.

Kang Sun: And the other micro mobility market segments.

Kang Sun: In addition to having another put out a platform available for MTS customers.

Kang Sun: Introduction of a cycle battery Saturday our revenue grows we felt the additional capital investment.

Kang Sun: And to serve our customer with all the delay.

Kang Sun: So a produce cycle batteries, we take advantage of this thing available lithium ion battery production capacity in the industry.

Kang Sun: And to have a tool manufacturers as a bridge between now and the operation of our own largest scale manufacturing facility.

Kang Sun: This tool manufacturing agreements.

Kang Sun: Oh by the us with hundreds of megawatt hours of a cycle.

Kang Sun: Capacity today.

Kang Sun: Overall so.

Kang Sun: That makes an effect core of accumulation Sylvia ear, so work in silicon and the space and.

Kang Sun: And that's just the beginning of our vision here at Amprius to transform electrical mobility. We look forward to manufacturing both the CEMEX and the PSYCOR at our Brighton, Colorado facility in the future. So far, 2024 has been a huge success commercially for Amprius. In Q1, we doubled the number of customers we shipped to in Q4 2023. Shipping to 82 customers, up from 41. 52 of these shipments were to new customers across the electrical mobility sector, complementing our strong repeat customer base that includes Ato, Airbus, Ted and Fleer, the U.S. Army, and Klaus. Hamdeni, and the BAE System.

Kang Sun: And then just the beginning of our vision here at <unk>.

Speaker Change: Yes, so trends from electrical mobility.

Kang Sun: We look forward to manufacturing post the setbacks in the cycle at our bright in Colorado facility in the future.

Kang Sun: So far 2024 has been a huge success commercially for M P as in.

Kang Sun: In Q1, we doubled the number of customers we shipped to over Q4, 'twenty you're talking three ships.

Kang Sun: Keeping 282 customers up.

Kang Sun: Up from 41 four.

Kang Sun: 52 of these shipments were to new customers across the electrical morbidity sector complementing our strong repeat the customer base that includes.

Kang Sun: Auto Airbus handed out free or the U S Army clause.

Kang Sun: I'm Dani and the E systems.

Kang Sun: The cycle platform and the manufacturing capacity are a primary driver of our ability to meet this market demand. In the first quarter, we shipped cycle product to 76 customers. As we further build out our book of customers for cycle, we are confident that we'll be able to continue to meet the strong demand for our batteries when our CEMEX production approaches a larger scale capacity. As customer demand for Amprius batteries is a salary,

Kang Sun: The sequel platform and the manufacturing capacity is a primary driver of our ability to meet the market demand.

Kang Sun: In the first quarter, we saved side.

Kang Sun: Cycle product was 76 customers.

Kang Sun: We have further built out our book of a customer for cycle. We are confident that we would be able to continue to need to the strong demand for our batteries, while our semi ex production approach is the largest scale capacity.

Kang Sun: As customer demands for N P. S battery is accelerating.

Kang Sun: Expanding production capacity is our priority. In Q1, we continued to make significant progress in ramping up our production in Fremont, California. Most recently, we completed the qualification process for our central thermomachine, which is used in the silicon anode fabrication process.

Kang Sun: Expanding production capacity is our priority.

Kang Sun: In Q1, we continue to make significant progress linking up our production in Fremont, California.

Kang Sun: Also recently, we completed the qualification process for our central thumb they shouldn't.

Kang Sun: Used in the city and annual fabrication process.

Kang Sun: We remain on track to achieve two-megawatt-hour production in three months by the end of the year. We are also implementing CEMEX cathode production in-house to streamline our manufacturing process. We plan to have this... Pesky, up and running in Fremont later this year. We have continued to make important progress to our large-scale manufacturing site in Brighton, Colorado. We currently have completed 30% of construction design drawings and specifications for the facility.

Kang Sun: We remain on track to achieve two megawatt hour production in Fremont that end of the year.

Kang Sun: Yeah.

Kang Sun: We are also implementing thematic kessel production in house.

Kang Sun: So streamline our manufacturing process.

Kang Sun: We plan to have this.

Kang Sun: Pesky.

Kang Sun: And running in Fremont later this year.

Kang Sun: We have a continued.

Kang Sun: To make important progress at our largest scale manufacturing site in Washington, Colorado as well.

Kang Sun: We couldn't do you have a company with a 30% construction design drawings and specifications for the facility.

Kang Sun: And I have taken several regulatory steps forward, including submitting our side plan and advancing all other regulatory plans and applications for the facility, as an additional step and in response to the market's strong reaction to our cycle platform. We have updated our plans for that. Brighton facility to redesign our initial production line to be cycle focused. We will continue to produce the same eggs out of a free man until a second man begins production in Brighton.

Kang Sun: And I have taken several regulatory staff for the including some meeting our stated plan and are advancing or other regulatory plans at applications for the facility.

Kang Sun: As additional step and in response to the mall cases strong reaction to our site called platform.

Kang Sun: We have updated our plans for the <unk>.

Kang Sun: Facility to lead these on our initial production line to be cycled focused.

Kang Sun: But we'll continue to produce the sand makes all of our Fremont and to our second mine became production buys them.

Kang Sun: Yeah.

Kang Sun: Looking ahead, we have already carried our momentum from the beginning of the year into the second quarter across several of our initiatives. We recently signed our first long-term manufacturing agreement with one of our two manufacturing partners to confirm our collaboration and strategic alignment. This new agreement establishes overall engagement and moves us from operating transactionally to a partnership framework. Second, we have extended our partnership with several customers, including multiple purchase orders from Aalto Airbus for our CYMAX 450 watt replicator high energy density cell.

Kang Sun: Looking ahead, we have already carry our momentum from the beginning of the year into the second quarter across several of our initiatives.

Kang Sun: Sure.

Kang Sun: We recently signed our first the long term.

Kang Sun: Finishing agreements with one of our toll manufacturing partners to confirm our collaboration and strategic alignment.

Kang Sun: This new agreement disturb the chiefs overall engagement and the mood was from all three operating transitional D.

Kang Sun: Partnership framework.

Kang Sun: Second we have extended our partnership with several customers.

Kang Sun: Including multiple purchase orders from outward Airbus flowers. Some X 400, if you are a potato energy tends to yourself.

Kang Sun: They have continued to use these cells in their project Xiphyr, with CEMEX supplying the necessary power and endurance for their stratospheric fly operation. We have also received the first production order for the U.S. Army safe cells, and we expect to deliver them later this year. This is the first order we have received after the successful completion of the development contract that we discussed during our last call.

Kang Sun: They are continuing to use these cells and they are projected to XI for them with some excess supply the necessary power and endurance for their startle Barrick fly all patients.

Kang Sun: We have also received the first production order for the U S Army save yourself.

Kang Sun: And the we expect to deliver them in later this year.

Kang Sun: This is the first order we have received after the success completion of the development contract that we discussed at our last call.

Kang Sun: Third, we have established several new strategic partnerships in the second quarter, most notably with AI bots, and the staff are... Amprius will soon provide side-core sales to both partners, ensuring maximum power and reliability for AI bots' mission-critical operations, and serving as a staff-assisting preferred battery cell supplier. We look forward to partnering with both teams as they work on shaping the future of electric mobility. I believe that these collaborations can provide Amprius with an increase in sales, an expanding market reach, and a greater market share in the high-performance battery market segment. Together

Kang Sun: Third we have assigned several new strategic partnerships in the second quarter.

Kang Sun: Most of them know the body with AI bots at.

Kang Sun: The staffers fifteens Mb.

Kang Sun: I'm, just sort of provide a cycle ourselves to both partners, ensuring maximum power and reliability for E Sports mission critical operation.

Kang Sun: And the serving as the staff for assisting preferred a battery cell supplier.

Kang Sun: We look forward to partnering with both teams as we work on shaping the future of electric mobility.

Kang Sun: I believe that these collaborations can provide the MTA is with <unk>.

Kang Sun: Increase in sales.

Kang Sun: Spending market reach and the greater market share in the high performance benchmark his segment.

Kang Sun: Together.

Kang Sun: These high-profile customers and strategic partnerships have helped, helped strengthen Amprius Traction in our industry. Just a few weeks ago, in response to the growing global awareness, our better. Amprius hosted its first Taiwan battery forum. There were over 100 attendees from industry-leading companies and institutions learned about Amprius breakthroughs, silicon and battery technologies, and partnership opportunities. Also, in April, Amprius was honored with the inaugural.

Kang Sun: These high profile customers set a stretch eagle partnerships.

Kang Sun: Strengths in M. P is the traction in our industry.

Kang Sun: Just a few weeks the adult.

Kang Sun: English bonds early.

Kang Sun: Global awareness our battery.

Kang Sun: Here's the host here's the first the Taiwan battery for it.

Kang Sun: There are over 100 attendees from the industry, leading companies and institutions burned out about a M. P. S. Briggs, who are sitting here in new Bedford technologies and partnership opportunities.

Kang Sun: Flintech Battery Company of the Year Award and the Markey Intelligence and Research Group Tech Breakthrough. This comes on the heels of the Amprius nomination for the best charges annually by the world's most innovative companies. Another point of recognition for our business. We have long known that our products are yet to be matched at the commercial level. We are proud that the industry is taking notice as well. It's clear that our recent customer expansion and the new industry recognition signal a strong start to 2024 for Amprius.

Kang Sun: Also in April <unk>.

Kang Sun: So was honored with in Lora.

Kang Sun: <unk> Tec battery company of the year of war in the market intelligence and the research group take a breakthrough.

Kang Sun: This comes on the heels of the M. P. S nomination to the fast the charges and at least over the war the most innovative companies.

Kang Sun: Another point of drag in Asia for our pet business.

Kang Sun: Well, we have a long known that our products are yet to be met.

Kang Sun: On a macro level.

Kang Sun: We are proud that the industry is taking notice as well.

Kang Sun: Yeah.

Kang Sun: Is it clear that our recent customer expansion and the new industrial recognition signal a strong start to 2024 piece we.

Kang Sun: We are working hard to expand our production capacity to meet our sizeable demand, and we are confident in the path forward for Amprius. With that, we will turn the call over to our CFO, Sandra Wallach, to review our financial results for the quarter.

Kang Sun: We are working hard to expand our production capacity to meet the sizable in high demand and we are confident in the path forward for MTS.

Sandra Wallach: With that we will.

Kang Sun: Ill turn the call over to our CFO Sandra Wallach to review our financial results for the.

Kang Sun: Quota.

Sandra Wallach: Thank you, Kang. 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 first quarter with $2.3 million in total revenue. As we've previously discussed, our total revenue is the combination of two main revenue streams, product revenue and development services and grant revenue. This quarter, all $2.3 million of our revenue came from our product revenue, representing a 397% increase from the prior year period and a 147% sequential increase.

Kang Sun: Sandra.

Sandra Wallach: Thank you Kim 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: We finished the first quarter with $2 3 million in total revenue.

Sandra Wallach: As we've previously discussed our total revenue is the combination of two main revenue streams product revenue and development services and grant revenue.

Sandra Wallach: This quarter at $2 3 million of our revenue came from our product revenue, representing a 397% increase from the prior year period, and 147% sequential increase these.

Sandra Wallach: These increases were largely driven by shipments to 82 customers in the quarter, a significant increase for Amprius. 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 three customers represented greater than 10% of revenue, a testament to our diverse customer set.

Sandra Wallach: These increases were largely driven by shipments to 82 customers in the quarter, a significant increase from Empress although our product revenue remains largely driven by customer purchase orders that can arrive at uneven time throughout the year, we have shown consistent new customer growth and diversification in recent quarters also.

Sandra Wallach: As customers only three customers represented greater than 10% of revenue a testament to our diverse customer set.

Sandra Wallach: As we've discussed in prior quarters, our development services revenue consortium from large development programs that are nonrecurring in nature.

Sandra Wallach: As we've discussed in prior quarters, our development services revenue comes largely from large development programs that are non-recurring in nature. Moving to our profitability metrics, our gross margin was negative 190% for the quarter compared to negative 518% in the prior year period and negative 98% in Q4 of 2023. As a reminder, we see significant gross margin variation as our product and services revenue mix fluctuates.

Sandra Wallach: Moving to our profitability metrics, our gross margin was negative 190% for the quarter compared to negative 518% in the prior year period and negative 98% in Q4 of 2023.

Sandra Wallach: As a reminder, we see significant gross margin variation as our product and services revenue mix fluctuates.

Sandra Wallach: Also, we anticipated that factory startup costs would ramp up as we start Colorado design and pre-construction and still expect this to be the case through at least 2024. However, longer term, we're confident that our gap gross margin will begin to normalize as we approach our capacity expansion goal. Now on to our Operating Expense Management. Our operating expenses for the first quarter were $5.9 million, a 6% decrease from the prior year period and flat quarter over quarter.

Sandra Wallach: Also we anticipated that factory start up costs would ramp up as we start Colorado design and pre construction and still expect this to be the case, so at least 'twenty 'twenty four.

Sandra Wallach: Longer term, we're confident that our GAAP gross margin will begin to normalize as we approach our capacity expansion goals.

Sandra Wallach: Now onto our operating expense management, our operating expenses for the first quarter were $5 9, million% to 6% decrease in the prior year period and flat quarter over quarter.

Sandra Wallach: This decrease is primarily attributable to a decrease in G&A costs that were offset by investment in R&D and sales. Our gap net loss for the first quarter was $9.9 million, or a net loss of $0.11 per share, with $90 million weighted average number of shares outstanding, compared to a net loss of $0.11 per share with $84.6 million weighted average number of shares outstanding in the prior year period.

Sandra Wallach: This decrease is primarily attributable to a decrease in G&A costs were offset by investments in R&D and sales.

Sandra Wallach: Our GAAP net loss for the first quarter was $9 9 million or a net loss of <unk> 11 per share with 90 million weighted average number of shares outstanding compared to a net loss of 11 cents per share with $84 6 million weighted average number of shares outstanding in the prior year period.

Sandra Wallach: Also, as of March 31st, 2024, there were 81 full-time employees, up from 80 in the fourth quarter and 65 in the prior year period, with those employees primarily based in our Freelon, California location. Our share-based compensation for the first quarter was $1.2 million compared to $1.1 million in Q4 of 2023 and $0.7 million in the prior year period. As of March 31st, 2024, we have 92.3 million shares outstanding. Now turning to the balance sheet, we exited the first quarter with $39 million in cash and no debt.

Sandra Wallach: Also as of March 31st 2024, there were 81 full time employees up from eight in the fourth quarter and 65 in the prior year period with those employees, primarily based in our prelaunch, California location.

Sandra Wallach: Our share based compensation for the first quarter was $1 2 million compared to $1 1 million in Q4, as 2023 and 0.7 million in the prior year period.

Sandra Wallach: As of March 31st 2024, we have 92.3 million shares outstanding.

Sandra Wallach: Now turning to the balance sheet, we exited the first quarter was $39 million in cash and no debt.

Sandra Wallach: Key drivers of our cash activity for the quarter were $9.8 million used in operating cash flow, $3.1 million used to continue our build-out of our expanded 2-megawatt production line in Fremont, $0.8 million used for progress payments to secure our production slots for mechanical, electrical, and plumbing equipment, and $8.2 million of cash inflow added primarily through the usage of our ATM. Considering our business achievements and ongoing projects, we believe we are efficiently using capital to drive Amprius forward.

Sandra Wallach: Key drivers of our cash activity for the quarter were $9 8 million used in operating cash flow three.

Sandra Wallach: $3 1 million used to continue our build out of our expanded two megawatt production line in Fremont.

Sandra Wallach: 0.8 million used for progress payments to secure our production thoughts for mechanical electrical and plumbing equipment.

Sandra Wallach: And $8 2 million of cash inflow at it primarily through the usage of our ATM.

Sandra Wallach: Considering our business achievements and ongoing projects. We believe we are efficiently using capital strive and pray as far apart.

Sandra Wallach: Before I turn the call back over to Kang, I would like to take a moment to discuss our outlook for the remainder of the year. We expect to spend another $1 to $2 million on equipment to support the 2-megawatt line in Fremont. This includes the necessary tools to have our cathode line up and running by the fourth quarter of this year. As Kang mentioned, we're also finalizing the design work for our Colorado facility.

Speaker Change: Before I turn the call back over to Kim I would like to take a moment to discuss our outlook for the remainder of the year.

Sandra Wallach: We expect to spend another one to 2 million on equipment to support the two megawatt line in Fremont. This includes the necessary tools to have our cathode line up and running by the fourth quarter of this year.

Sandra Wallach: As Ken mentioned, we're also finalizing the design work for our Colorado facility, we expect to publicly communicated construction costs forecast once the plan is finished.

Sandra Wallach: We expect to publicly communicate a construction cost forecast once the plan is finished. As part of our ongoing strategic planning efforts, we filed a shelf registration on Form S-3 back in October of 2023 and, once effective, established a new ATM facility for $100 million. Subsequent to March 31, 2024, and through May 3, we have raised gross proceeds of about $2.1 million through the sale of approximately 1 million shares under the ATM facility.

Sandra Wallach: As part of our ongoing strategic planning efforts, we filed a shelf registration on form S. Three back in October of 2023, and once effective established a new ATM facility for 100 million.

Sandra Wallach: Subsequent to March 31st 'twenty, 'twenty, four and through May 3rd we have raised gross proceeds of about $2 1 million through the sale of approximately 1 million shares under the ATM facility.

Sandra Wallach: To support our strategic plan, we are pursuing additional funding through multiple vehicles, including 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.

Sandra Wallach: To support our strategic plan, we are pursuing additional funding through multiple vehicles, including 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 Kim.

Kang Sun: Thanks, Andrew.

Kang Sun: I'd like to re-emphasize a few key points before closing. First, Amprius City and Technology continues to demonstrate unmatched performance in our industry. Amprius batteries command a firm lead with their combination of safety, energy, power, charging time, and temperature performance. They are uniquely positioned for the electrical mobility market. Second, the Amprius battery, a commercially available.

Kang Sun: I'd like to re emphasize a few key points before closing.

Kang Sun: I'm just sitting here I know the Tagalong Digi continues to demonstrate the unmatched performance in our industry.

Kang Sun: I'm curious the battery commend affirmative.

Kang Sun: The combination of a safety energy power Fogging time, and the temperature performance.

Kang Sun: Yeah uniquely positioned for the electrical mobility market.

Kang Sun: Second.

Kang Sun: And it's better to be a commercially available today.

Kang Sun: Our breakthrough technologies are validated by over 80 customer orders. This quarter, we doubled our number of customers who received the shipment. Not only did we have our normal, repeat customers... out of 52, but also new customers.

Kang Sun: Our breakthrough technologies Vegetate that over 80 customer orders.

Kang Sun: This quarter, we doubled our number of customers who received the shipments.

Kang Sun: Not only did we have our normal repeat the customers better safety or new customers.

Kang Sun: This is testament to our robust demand pipeline. We look forward to further building out our customer book in the coming quarters.

Kang Sun: And then two our robust pipeline.

Kang Sun: We look forward to further building out our customer book.

Kang Sun: The coming quarters.

Kang Sun: Third.

Kang Sun: We are scaling our manufacturing capacity through building our own production capacity and partnering with two manufacturing partners. With our grant underway in Fremont, our design process is moving forward in Brighton, and assigning the partnerships with additional tool manufacturing partners in place, will remain on track to deliver expanded production capacities to fulfill market demands. Finally, we are looking forward to several exciting, upcoming milestones over the rest of the year. We expect to fully optimize our CEMEX mass production process and ramp-up production to a 2-megawatt-hour run rate by the end of the year at our Fremont facility.

Kang Sun: We are scanning our manufacturing person to building our own production capacity.

Kang Sun: And the other thing with toll manufacturing partners.

Kang Sun: With our rent underway in Fremont.

Kang Sun: Our design process moving forward is bright.

Kang Sun: <unk> signed the partnership with additional tool manufacturing partners in place we remain on track to deliver expand the production capacity to fulfill market demand.

Kang Sun: Finally, we are looking forward to several use it exciting.

Kang Sun: Coming milestones over the rest of the year.

Kang Sun: We expect to fully optimize our semi ex U S production process.

Kang Sun: And the ramp up production to a two megawatt hour run rate exiting the year at our Fremont capacity.

Kang Sun: Yeah.

Kang Sun: This will represent a tenfold increase in our production levels that we had in 2023, and it will give us additional available products for strategic customers. We look forward to taking advantage of the hundreds of megawatts of new cycle product availability provided by our tool manufacturing agreement to reach more customers and expand our current customer engagement. During the summer, we will deliver the 100-ampere-hour EV form factor cell to the U.S. Advanced Battery Consortium, USABC, as part of our grant program.

Kang Sun: This will represent a time for to increase our production levels.

Kang Sun: Now that we had from 'twenty to 'twenty three.

Kang Sun: And they gave us additional available product for the strategic customers.

Kang Sun: We look forward taking advantage of the hundreds of megawatt hours, a new cycle of product availability provided by our toll manufacturing agreements.

Kang Sun: To reach more customers and extend our current customer engagements.

Kang Sun: Yeah.

Kang Sun: During the summer well would you lever the husband and tower E V form factor itself. So the U S for the lens the bedroom consortia U S. A D C. As a part of our <unk> program.

Kang Sun: We are in the process of finalizing the design plans and are excited to begin the construction of our gigawatt-scale facility in Brighton, Colorado. As we always prioritize... We will continue to bring to market new and innovative products that push the boundaries of what is possible for our industry. As part of this, we look forward to commercializing our 500-hour Pocato Sandbags sales later this year.

Kang Sun: We are in the process of finalizing the design plans and are excited to begin the construction of our gigawatt scale facility bright in Colorado.

Kang Sun: Absolutely always prioritize we will continue to bring two marquee you and I know with your products.

Kang Sun: Now to push the boundaries of what is possible for our industry.

Kang Sun: As part of this we look forward to commercializing our 500, while replicate authentic selves later this year.

Kang Sun: As we look ahead, our strategy and focus on Amprius remain unchanged. We believe that the opportunity in front of Amprius is tremendous. And that our product portfolio positioned us to both grow in the aviation market and expand it to other industries, seeking batteries with leading performance. Our addressable markets are growing and durable, including the 1.2-font building conformal wearable battery market by 2030, the 33-building aviation battery market by 2030, and the 500-building EV battery market by 2033, all of which Amprius will grow past in the coming years.

Kang Sun: As we look ahead, our strategy and our focus and MTS remains unchanged.

Kang Sun: We believe that the opportunity in front of the M. P. This is a tremendous.

Kang Sun: And that's our product portfolio positioned us to both grow the aviation market and expand it to other industries seeking batteries with a leading performance.

Kang Sun: Hello, addressable market, a growing and durable, including the one playing through Fong fueling conformal wearable battery market at <unk> 30.

Kang Sun: Thirty-three building of Asia, that's the market that 2030 under the 500 beauty EV battery market at 23.

Kang Sun: 33 oral screeched.

Kang Sun: I'm curious growth path in coming years.

Kang Sun: 2024 is off to a strong start. We look forward to continuing to deliver what we have planned and promised for the year ahead. Thank you for your continued support of Amprius Technology. With that, I will turn it back to the orbiter for the Q&A.

Kang Sun: Fund, whose money for is off to a strong start.

Speaker Change: We look forward to continuing to de lever, but we have planned and the problem is the year ahead.

Speaker Change: Thank you for your continued support.

Speaker Change: Just to take a lot of juice.

Speaker Change: That I will turn it back to the operator for the Q&A.

Operator: Thank you. At this time, we'll open the lines for questions. The company requests that each participant limit their comments to one question and one follow-up. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for a participant choosing speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Colin Rusch with Oppenheimer and Company. Please proceed.

Speaker Change: Thank you at this time, we'll open the lines for questions. The company requests that each participant limit their comments to one question and one follow up if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is it in the question queue you may have.

Operator: Press Star two if he would like to remove your question from the queue and for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

Colin William Rusch: Our first question is from college Rush with Oppenheimer and company. Please proceed.

Colin William Rusch: Thanks so much. You know, guys, there are an awful lot of new customers. Can you give us a sense of, you know, what the diversity is from a geographic standpoint and an application standpoint? You mentioned mobility. I'm just curious, you know, if you can give us a sense of who those folks are and, you know, what sort of sampling they're doing at the moment.

Colin William Rusch: Thanks, So much Oh gosh. This is an awful lot of new customers can you give us a sense of.

Colin William Rusch: You know what the diversity is just from a geographic standpoint and application standpoint, you mentioned mobility. Just curious you know if you can give us a sense of of you know.

Colin William Rusch: Who those folks are in and you know what sort of sampling and they're trying it at this point.

Kang Sun: Yeah, Colin, we have disclosed some customers we can disclose. Our customer coverage is quite broad. Primarily in the United States and Europe, we also have Asian customers. For example, we have customers in India. Our primary battery application for those customers still in the aviation industry.

Colin William Rusch: They are calling we have disclosed for some customers, we cannot disclose our customer comedy too.

Speaker Change: It was quite broad we are primarily in.

Colin: United States and Europe.

Kang Sun: So we'll have the eastern Costumers for example, we have a customer.

Kang Sun: Our primary port Betsy application for those customers are doing reaching those.

Kang Sun: Yeah.

Colin William Rusch: And then, you know, as you move into working with the contract manufacturer, can you talk a little bit about how you anticipate your potential scaling of sales? It seems to me that you guys are in a unique position to grow fairly quickly as you get into the balance of the year for more revenue.

Speaker Change: Excellent. Thanks, so much and then you know as you move into working with a contract manufacturer can you talk a little bit about how you anticipate your you know potential scaling of sales. It seems to me that you guys are in a unique position to to grow fairly quick.

Colin William Rusch: <unk> as you get into the balance of the here are from a revenue perspective.

Kang Sun: Yeah, we are strengthening our sales team with the introduction of the PsiCore product. The introduction of the PsiCore product was basically the result of the manufacturing capacity issue for that particular product. We have a hundred megawatt hours of capacity behind us, both in cylindrical form and in pouch form. [inaudible] This gave us tremendous support for our customer development effort here. Recently, we just added more individuals to our sales force.

Speaker Change: Yeah, we are strengthening our sales team.

Kang Sun: With the introduction of <unk>.

Kang Sun: Our core products with basically resolved.

Kang Sun: The manufacturing capacity okay.

Kang Sun: Okay for that particular product.

Kang Sun: Have a hungry.

Kang Sun: Megawatt hour comparisons the house, both physical form and a powerful.

Kang Sun: Uh huh.

Kang Sun: This gave us a tremendous.

Kang Sun: Uh huh.

Kang Sun: Port for our customer development effort here.

Kang Sun: The company.

Kang Sun: Recently, we just added.

Kang Sun: More individuals to Odyssey.

Kang Sun: Sales force.

Colin William Rusch: Thanks so much. And then, in Fremont, just the final one for me, can you talk a little bit about the tool qualification and how that's going? You know, are the machines, and primarily the key machine, working as you anticipated as you go through all the testing processes? Yeah. In Fremont, the Omni machine.

Speaker Change: Thanks, So much and then in Fremont and just the final one for me can you talk a little bit about the tool qualification and how that's going you know R. R.

Colin William Rusch: Are the machines and the primarily the key machine working as as you anticipated as you go through all the testing processes.

Kang Sun: In Fremont, the only machine that is measured is the central thermomechanic, which produces the silicon nanowire. The rest of the equipment is measured in Fremont, using off-the-shelf equipment just like other people are using in the industry. So recently, the Fremont Central Thermal Machine started producing silicon anodes for our batteries. So, of course, we still need to adjust the production protocol, perfect the production protocol, and make it more efficient. This machine, when we say qualification of the machine, we mean the machine can produce a quality silicon anode for our battery.

Colin William Rusch: Yeah.

Colin William Rusch: The only machine.

Kang Sun: Uh huh.

Kang Sun: Mission, According with the citizen and.

Kang Sun: The rest of the equipment.

Kang Sun: Oh shelf is equivalent to flag or other people in the U S industry.

Speaker Change: That's true.

Kang Sun: Somebody the Primo study.

Kang Sun: Michelle.

Kang Sun: Do you see it again.

Kang Sun: Animal.

Kang Sun: For our bedroom.

Kang Sun: So of course, we still need the.

Kang Sun: Oh the job that's been political perfect for the potash in Porto <unk>.

Kang Sun: Make it more efficient.

Speaker Change: Listen listen and we say qualification over to Michele now when they have the machine can produce the quality city can handle quality pet food.

Speaker Change: Thanks, so much guys.

Operator: Our next question is from Donovan Schafer with Northland Capital Markets. Please proceed.

Kang Sun: Our next question is from Donovan Schafer with Northland Capital markets. Please proceed.

Donovan Due Schafer: Hey guys, thanks for taking the questions. So first, I want to also ask about the customer orders there, with there being so many of the 82 or, you know, deliveries to customers. So just to kind of cross the T's and dot the I's, I just want to confirm that 52 of those were for new customers across the electricity or electric mobility sector. Is there any caveat there, or can I just take the 82 minus the 52 to say that you had 30 repeat orders? Is that accurate?

Donovan Due Schafer: Hey, guys. Thanks for taking the questions. So first I want to also ask about with the customer orders, there where they're being so many of the 82 Oh.

Donovan Due Schafer: Our deliveries to customers. So just to kind of cross the Ts and dot the eyes I just wanted to confirm so you say 52 of those were to new customers across the electricity electric mobility sector.

Donovan Due Schafer: Is there any caveat there or kind of just take the 82 minus the 52.

Donovan Due Schafer: To say that you've got you had 30 repeat orders in the quarter.

Donovan Due Schafer: Is that accurate.

Kang Sun: Yeah, that's the right name.

Speaker Change: Yeah, that's the right now.

Donovan Due Schafer: Okay, great. And then the other part of that is that it looks like 76 of those shipments were for Cycle. So, you know, I guess that raises the question, do you have some repeat customers where they previously did Symax orders, and now they're showing an interest in Sycore? Sycore, and so I guess they had enough interest in Symax but are also curious to know how this other product essentially works for them. Is that kind of what's going on there?

Kang Sun: Okay, Great and then the other part of that is it looks like 76.

Donovan Due Schafer: Those the shipments were for site poor so yeah, I guess that raises the question do you have some repeat customers where they previously did sign Max orders and now they're showing an interest in sorry core and so you have to I guess say.

Kang Sun: The answer is yes, because we have a customer interest in both.

Kang Sun: Had enough of interesting IMAX, but are also curious to know how those other products essentially works for them.

Kang Sun:

Kang Sun: Is that kind of what's going on there.

Speaker Change: Oh, I'm, sorry, yes, yes.

Kang Sun: Yeah, we have a customer interest in both products.

Kang Sun: and some of its crossing over.

Kang Sun: And some of its crossing over it seems like.

Donovan Due Schafer: Those products are all for, yeah, that's right, yeah, they'll be all, yeah. Okay.

Kang Sun:

Speaker Change: That's all for yeah.

Donovan Due Schafer: That's right yeah.

Donovan Due Schafer: Okay.

Donovan Due Schafer: And then I saw, you know, in the letter to investors that for the initial production in Colorado, you switched to that will be for PsiCore now instead of PsiMax. And, you know, you say that that's in response to some kind of customer interest. But what I'm curious about is, you know, can you give us anything more in terms of like what are the specific attributes of PsiCore versus PsiMax that's causing that interest? And also, is there a difference in manufacturing cost that's an impact there where one is, you know, less expensive to manufacture versus the other?

Donovan Due Schafer: Okay, and then I saw you know in the letter to investors that the initial production in Colorado, you switched to but that will be for sidecar now instead of IMAX and you say that that's in response to customer interest.

Donovan Due Schafer: But what I'm curious as you know can you give us anything more in terms of like.

Donovan Due Schafer: What are the specific attributes about side core versus sign Max that is that's causing that interest and also is there a is there a difference in manufacturing costs, but that's an impact of there are more one is you know less expensive to manufacture versus the other.

Kang Sun: You know, one of the reasons we have a tremendous interest in Psycore is because we have more Psycore for customers today. We have a large production capacity behind us, so we can serve a lot of more customers. The more customers we serve, the more interest that comes to us, so that's the reason we look at the momentum that we have built up here. We say, hey, we probably need to do the cycle first. Those customers, by the time we finish our factory... We will have very significant inquiries from our customers.

Speaker Change: Yeah, Walter the reason Oh, we have a tremendous interest at four five core because if we have more favorable for customer.

Kang Sun: Today, we have a larger production capacity behind us. So we can serve a lot of more customers.

Kang Sun: Customer with though the more interest to come to us.

Kang Sun: So that's the reason we look at the momentum that we've built up here with it whenever we probably need to do to the cycle first.

Kang Sun: Those customers are better time, we finished all the factory.

Kang Sun: Well, we'll have a very if you could ever get into inquiries from our customers.

Donovan Due Schafer: Okay, I see. So you've got the fact that you can have these conversations around Psycore where you've got the tolling arrangements in place already with some manufacturers, so that creates more of an interest with the potential customer because, okay, gee whiz, you're ready to provide volume, and then you might as well bring that manufacturing in-house over time. So then I guess the question there is: How long should we start to expect to maybe see that tolling partnership that you've kind of buttoned up with one manufacturer? Do you have any sense around when that could start turning into some kind of a revenue around the cycle or product, you know, at a scale, even though it's sort of through tolling?

Speaker Change: Okay I see so you've got it's the fact that you can have these conversations around cycle or where you've got the tolling arrangements in place already with some manufacturers to you that that creates more of an interest with the potential customer because okay. Gee Whiz you ready to provide volume and then.

Donovan Due Schafer: You might as well bring that manufacturing in house over time.

Donovan Due Schafer: So then I guess the question there is.

Donovan Due Schafer: How long or when should we start to expect to maybe see that tolling partnership that you've kind of buttoned up.

Donovan Due Schafer: With one manufacturer.

Donovan Due Schafer: You have any sense around when that could start turning into some kind of a revenue around the core product at a scale, even though it's sort of through tolling.

Kang Sun: Yeah, we already have. You can't, you can't see we have so many customer engagements now, right? So, though we believe this year, some of those customers, some of those customers during the qualification phase, and not every customer gives big orders. But since we have so many customers, we have over 80 customers, in a week's tax cut, each section with his customer, will place decent orders this year.

Speaker Change: Yeah, we already have a are you can you can see we have so many customer engagements now right. So oh no. We believe these here.

Kang Sun: Part of those customers was thought Oh, no some of those customers still in the qualification stage.

Kang Sun: Not every customer gave a big order but.

Kang Sun: We have so many customers we have over 80 customers.

Kang Sun: We expect that Frac.

Kang Sun: Frac sand with a customer.

Kang Sun: We'll play decent orders this year.

Donovan Due Schafer: Okay, and I guess that makes sense in terms of the sequence that they were in. They're going to be incrementally more interested in taking PSYCorps, qualifying it, and figuring out if they can incorporate that into their offering at a scale, but to get to show that interest and go through that qualification process once you've validated or, you know, had handshakes and contracts and so forth signed with people so that you can back it up and say, okay, once you place an order, we're ready to go.

Speaker Change: Okay, and I guess that makes sense in terms of sequence that they.

Donovan Due Schafer: Okay. Sorry. Just thinking that through out loud. I'll take the rest of my questions offline. Thank you, guys.

Donovan Due Schafer: They're going to be incrementally more interested in taking stock or qualifying yet and figuring out if they can incorporate that into their offering.

Donovan Due Schafer: Scale, but to get to show that interesting goes through that qualification process. Once you've validated or you know had handshakes in contracts and so forth signed with people. So you can back it up and say okay. Once you place an order we're ready to go okay, sorry, just thinking about thinking that threw out a lot I'll take the rest of my question.

Speaker Change: <unk> offline.

Donovan Due Schafer: Thank you guys.

Donovan Due Schafer: Thanks.

Operator: Our next question is from Jed Dorsheimer with William Blair. Please proceed.

Speaker Change: Our next question is from Jed <unk> with William Blair. Please proceed.

Jed Dorsheimer: Hi, everybody. This is Mark Schueter on Prudential Dorschheimer. Tom, question on the 76 customers, say they all come to fruition, and I know you have hundreds of megawatts in the total coders, but, Is there a scenario in which you'll have to restrict allocation to a certain number of customers?

Jed Dorsheimer: Hi, everybody. This is mark shooter on for George Farmer.

Jed Dorsheimer: Hum question on the 76 customers say, they all come to fruition and I know you have hundreds of megawatts.

Jed Dorsheimer: The toll coders, but.

Jed Dorsheimer: Is there a scenario in which you'll have to restrict allocation to a certain number of customers.

Kang Sun: Yeah, we have, Mark, we have a tremendous capacity we have for cycle, for cycle customers, I would say in 2024, maybe even 2025.

Jed Dorsheimer: Yep.

Jed Dorsheimer: We have a market we have a tremendous capacity Bihar fourth high court.

Kang Sun: Uh Huh fourth favorable customer Oh oldest stay in 'twenty to 'twenty four maybe even in 2020 five.

Speaker Change: Not to have a supply issue.

Kang Sun: Yeah.

Jed Dorsheimer: understood. Okay.

Speaker Change: Understood, Okay, and do you see any of those.

Jed Dorsheimer: Potential customers is there any restriction on converting to P. O based on where the material is coming from.

Kang Sun: And do you see any of those potential customers? Is there any restriction on converting to PO based on where the material is coming from? I'm thinking, okay, I'd like to place a PO if you'd rather wait for US.

Speaker Change: I'm thinking okay.

Kang Sun: T O.

Kang Sun: There are way up for a U S. Domestic production is that a factor at all in your comps.

Jed Dorsheimer: Dr. Rudolph, and your conversation is part of the customer who has concerns. The customers who have concerns would not engage with us for a tool manufacturing model.

Jed Dorsheimer: Cause somebody engaged.

Speaker Change: Without a problem.

Jed Dorsheimer: The customer who had.

Jed Dorsheimer: Who the customers who have concerns with not engage with us.

Jed Dorsheimer: For a full manufacturing model.

Kang Sun: Okay. Thank you. And lastly, congrats on the award with the military. Can you give any color on the unit volumes we should be expecting or ASPs or margin?

Speaker Change: Understood. Okay. Thank you and lastly here congrats on the award with the military can.

Kang Sun: Can you give any color on the unit volumes, we should be expecting or a S piece or margin and any color, how we should be modeling that.

Kang Sun: Okay.

Kang Sun: Somebody wouldn't yeah.

Kang Sun: How do you address it.

Jed Dorsheimer: So that is a larger order that is scheduled to go out this year, but we haven't given guidance on pricing and margins on that.

Kang Sun: Okay.

Kang Sun: So.

Kang Sun: That is a larger order that are scheduled to go out this year, but it it we haven't given guidance on on pricing and our enlarged sense on that.

Kang Sun: Okay, I understand. Thank you.

Speaker Change: Okay understood.

Speaker Change: Thank you.

Operator: Our next question is from Chris Souther with B Riley Securities. Please proceed.

Kang Sun: Our next question is from Chris Souther with B Riley Securities. Please proceed.

Christopher Curran Souther: Hi guys, thanks for taking my question. So, about six months ago, we were talking about customer commitments of tens of megawatt hours and indications of hundreds of megawatt hours for CyMax. Are most of those commitments, you know, for customers that can, you know, switch over to CyCorps, at least in the interim, if that's the first line you're going to have up and running, and maybe even, you know, utilize some of the total manufacturing in the

Christopher Curran Souther: Hey, guys. Thanks for taking my question so about.

Christopher Curran Souther: About six months ago, we were talking about the.

Christopher Curran Souther: Customer commitment of tens of megawatt hours and indications of hundreds of megawatt hours for sure sorry Max.

Christopher Curran Souther: Are most of those commitments.

Christopher Curran Souther: You know the customers that can switch over to sidecar at least in the interim but that's the first time, you're going to have up and running and maybe even you know you utilize the toll manufacturing in the interim.

Christopher Curran Souther: Or can.

Christopher Curran Souther: Or, you know, can you help kind of understand the customer evolution a little bit better as far as... You know, switching over to this newer product just because you're going to have a lot more capacity quicker for that.

Christopher Curran Souther: Can you can you help kind of understand like what the customer evolution is a little bit better.

Christopher Curran Souther: As far as.

Christopher Curran Souther: Switching over to this newer product just because you're going to have a lot more capacity quicker for that product.

Kang Sun: Yeah, the customer, Chris, customers who are interested in FedEx, they would not easily shift to the side core because, as you know, we sold out our 2024 capacity for CEMEX. The demand for CEMEX is still very strong, so the customer wants to have a CYMAX product for a reason. CYMAX not only offers super high energy density but also offers very high power capability. We have a customer interested in both products, but I have not seen a customer willing to compromise, say, you know, since the FedMax is not readily available, I'm going to use a side call.

Speaker Change: Yeah, the the customer a great customer.

Kang Sun: Customer who are interesting you said that they were not easy D C to besides core because as you.

Kang Sun: Hello.

Kang Sun: As you know we sold out our 'twenty 'twenty four capacity for Pemex with demand for sand bags, but still very strong.

Kang Sun: So the customer wants to have a fantastic product for Lisa.

Kang Sun: <unk> not only offers Super high energy density also offer a very high power capability.

Kang Sun: Yeah, we have a customer interest in both products.

Kang Sun: A lot of see customer waiting to compromise, saying things that Pemex is not readily available I'm going to give a cycle.

Kang Sun: Yeah.

Christopher Curran Souther: Okay, so, you know, what are the conversations like as far as those customers who, you know, were expecting like the first line to be in Colorado to be CIMAX and, you know, now it might be, you know, a little bit further that they'd have to wait, you know, is that going to impact any, you know, product launches with some of the key customers you've talked about previously or, you know, how do you kind of address that, you know, in the interim on this area?

Speaker Change: Okay. So you know.

Kang Sun: What are the conversations like as far as those customers who were expecting like a first line to be in.

Christopher Curran Souther: In Colorado, Besides racks and now it might be a little bit further than they would have to we can impact any you know product launches with some of the key customers you talk talked about previously.

Christopher Curran Souther: Yeah, how do you kind of address that you know in the interim I'm curious.

Kang Sun: At this time, our design likes to have a first line for a cycle. That doesn't mean we have to wait for two or three years to build the next one. So CIMAX, by the year-end, you know, we have... We have a full manufacturing protocol for CIMAX validation at Fremont with the two megawatt facility. So we are ready to go larger scale. So now our plan is to design this factory, not only for CYCLO but also for CYMAX, and procure our first line and production line for Psycorp.

Christopher Curran Souther: At this time of our design like to have a first line foresight cool and it doesn't mean, we have to wait for three years could be the same next.

Kang Sun: So the same ex.

Kang Sun: But the ear and you know we have a.

Kang Sun: We have a full manufacturing protocol.

Kang Sun: For some eggs validate at Fremont with this two megawatt facility.

Kang Sun: So we are ready to do a larger scale.

Kang Sun: Uh huh.

Kang Sun: For now.

Kang Sun: We designed this factory not only for that cycle also for say Max we just.

Kang Sun: Pretty cool, our first line and production line for Fe Corp.

Christopher Curran Souther: Okay. And then can you quantify, in any way, beyond, you know, the customer numbers being impressively quick to grow here, how much commitment and indications are for PsiCorps that you're kind of prioritizing that one for the first line? And are there significant expectations of CAPEX savings for that initial line, you know, for PsiCorps versus, you know, PsiMax?

Speaker Change: Okay, and then can you quantify in any way beyond the classroom numbers game impressively quick too to grow here, how commitment and indications are for a site core that you're kind of prioritizing.

Christopher Curran Souther: So having that one for the first line are there significant expectations of Capex savings for that initial line.

Christopher Curran Souther: Foresight core versus IMAX.

Kang Sun: Yeah, FACO line, of course, is... Based on our estimate, the FIGO line is relatively lower cost. Okay, this is an off-the-shelf production line, right? So, it is a proven manufacturing process. Currently, we are using it to do for us. We know exactly how the process looks like, how the machine, and the configuration is.

Speaker Change: Yeah. Thank all line of course, there is a uh huh.

Kang Sun: Based on our estimates.

Kang Sun: Sorry go lives.

Kang Sun: Relatively lower cost. Okay. This is the off shelf production line right. So.

Kang Sun: He is a proven manufacturing process currently we are using.

Kang Sun: And pull them out of the factory for US we know exactly.

Kang Sun: However, the process it looks like they shouldn't have the mission.

Kang Sun: The configuration is.

Operator: As a reminder, it is star one on your telephone keypad if you would like to ask a question. Our next question is from Jeff Grampp with Alliance Global Partners. Please proceed.

Kang Sun: As a reminder, the star one on your telephone keypad, if he would like to ask a question. Our next question is from Jeff Grant with Alliance Global Partners. Please proceed.

Jeffrey Scott Grampp: Afternoon. I'm curious, going back to the customer count that you guys had in the quarter, curious if you guys have kind of a percentage or rough numbers that are taking both SICOR and SIMAX, and wondering if you have a sense or any insight as to the ones that maybe are taking both. Is that to maybe assess a better fit within a specific use case, or might there be customers that could ultimately be customers of both products for differing use cases? Any insight there?

Jeffrey Scott Grampp: Afternoon, I'm curious going back to the the customer count that you guys had in the quarter I'm curious if you guys have kind of a percentage of rough numbers that are taking both <unk> and Si Max and wondering if you have a sense or any insight as to the ones that maybe are taking both is that to maybe assess.

Jeffrey Scott Grampp: It's a better fit within a specific use case or might there be customers that could be ultimately be customers of both products for different use cases any insight there.

Kang Sun: As we mentioned in our call, last quarter was the primary driver of our revenue. Last quarter, actually, we had almost the same amount of people purchase equal amounts of Simex and Sicor. But we have a lot more new customers for the Sicor product because we have capacity available to them. If we had more capacity for FEMEx, we're going to have a lot more FedMax customers as well.

Jeffrey Scott Grampp: Yeah.

Jeffrey Scott Grampp: As we mentioned in our call.

Kang Sun: Of course her a primary driver of our revenue.

Kang Sun: Last quarter actually we have almost like a the people pushes the equal amount. So next in the cycle, but we have a lot more new customers or factual product because we have capacity available for that.

Kang Sun: If we had had more capacity for Sun met some eggs.

Kang Sun: The Hell of a lot of more fat mass cosmetics as well.

Jeffrey Scott Grampp: And for my follow-up, maybe for Sandra... Any rough numbers or timeline in terms of when you guys might have a final number to share publicly on the cost of Colorado? Is that something that's, you know, months away, a year end, or just any kind of benchmark to kind of think about here without holding you to too tight of a timeline?

Speaker Change: Understood that's helpful.

Jeffrey Scott Grampp: For my follow up maybe for Sandra.

Sandra Wallach: Any rough numbers.

Sandra Wallach: Our timeline in terms of when you guys might have a final number to share publicly on on the cost of Colorado is that something that's months away a year end or just any kind of benchmark to kind of think about here without holding you to two type of timeline.

Sandra Wallach: Yes, so we've completed the 30% construction drawings. We believe we'll have the 100% construction drawings at the end of the summer. That'll allow us to get a more high-confidence cost estimate as well as the schedule, and so I think we should be able to give some sort of guidance when we exit the third quarter.

Sandra Wallach: Yeah. So we we we've completed the 30% construction drawings, we believe we'll have the 100 per cent construction drawings at the end of the summer that'll allow us to get a more high confidence cost estimate as well as the schedule and so I think we should be able to give some sort.

Sandra Wallach: Guidance in exiting the third quarter.

Jeffrey Scott Grampp: Great. I look forward to it. Thank you.

Speaker Change: Great look forward to it thank you.

Speaker Change: Thank you.

Operator: Our next question is from Amit Dayal with H.C. Wainwright. Please proceed. Thank you, and good afternoon.

Jeffrey Scott Grampp: Our next question is from Amit Dayal with H C. Wainwright. Please proceed.

Amit Dayal: Thank you. Good afternoon. With respect to sort of this ramp-up, you know, new customers, how should we think about revenues for 2024, given that you do have, you know, the polling capacity available? Is there anything in the pipeline that could materialize into sort of an order that is larger than everyone is sort of expecting at this point that could move expectations for 2024 higher than where they are.

Amit Dayal: Thank you and good afternoon, everyone with respect to sort of this ramp in.

Amit Dayal: New customers.

Amit Dayal: How should we think about and revenues with great any floor given that you do have.

Amit Dayal: The cooling capacity available is there anything in the pipeline.

Amit Dayal: That could materialize into sort of.

Amit Dayal: And all of that is larger than everyone. Instead of expecting at this point that could move expectations for 'twenty 'twenty four are higher than where they are.

Speaker Change: Don't we.

Kang Sun: As you see, we have... We have a very impressive number of customers today. So at this moment, we don't know which customer can finish their qualification process. We have some customers who have already placed orders for their commercial use, but we have a large fraction of customers just engaging with us, starting to purchase small quantities of the batteries for qualification. I think we may have more. [inaudible] End of the rec, in the later part of Q2, which customer can start off in our larger order.

Amit Dayal: I still say we have a.

Kang Sun: We have a very impressive.

Kang Sun: Number of customers today. So at this moment, we don't know which customer.

Kang Sun: I can finish qualification process, well, if I'm a customer already placeholder for commercial use.

Kang Sun: We have a larger fraction of our customer because he can give you the visa.

Kang Sun: Perfect and small quantity over their batteries for qualification.

Kang Sun: I think that we've made.

Kang Sun: More.

Kang Sun: Clarity.

Kang Sun: And if Iraq.

Kang Sun: In Q2 major rip off of Q2.

Kang Sun: Which customer can start to.

Kang Sun: Hmm.

Kang Sun: We will start offering our larger all quarters.

Amit Dayal: Okay, understood. Um, and then the 2.3 million in sales for OneCue, was it all Symax? You know, if you could just maybe give some color on what the mix was between Symax and Cyclone.

Speaker Change: Okay understood.

Amit Dayal: And then the $2 2 million in sales for <unk> was it all IMAX, but you know if you can.

Amit Dayal: Just maybe just color on what the mix was between sign makes sense Michael.

Sandra Wallach: Yeah, great question. So, um, it was roughly 50-50.

Speaker Change: Yeah, Great question. So it was roughly 50 50 between the two.

Amit Dayal: Okay, and the CIMAX was coming from... Oh, well, no, it's a little bit... I'm sorry, it's a little bit more... I gave an answer too fast.

Sandra Wallach: Okay, and the cyanide so it's coming out now and it gets a little bit I'm, sorry, it's a little bit more I gave an answer to fast it's about $1 million in sign accident about a million three insight core.

Sandra Wallach: It's about a million dollars in CIMAX and about a million and three in SICOR. And it all came from Fremont? Yes. So that's all I have, guys. I'll take one of the questions offline. Thank you.

Sandra Wallach: Okay, and so IMAX all came from three month.

Sandra Wallach: Yes.

Sandra Wallach: Okay.

Speaker Change: Okay. That's all I guess I'll take my other questions offline. Thank you.

Sandra Wallach: Yeah.

Operator: At this time, this concludes our question and answer session. If you have any additional questions, you may contact Amprius Investor Relations at IR@Amprius.com. I would now like to turn the call over to Dr. Sun for his closing remarks. Thanks again, everyone, for joining us.

Sandra Wallach: At this time. This concludes our question and answer session. If you have any additional questions you may contact MTS Investor Relations team and I are at air France Dot Com I would now like to turn the call over to Doctor Sun.

Kang Sun: Any remarks.

Kang Sun: Thanks again everyone for joining us today. As a reminder, you may learn more about our company in the additional updates and learn about 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 both Fremont and Colorado. Finally, I'd like to thank our employees, partners, and shareholders for their continued support. I'll play it right here.

Kang Sun: Thanks again, everyone for joining us today.

Kang Sun: As a reminder, you may learn more about half of company funded additional updates and they learn about the op comedy events in the presentations from the Investor Relations section of our website.

Kang Sun: We hope to see you at our upcoming Investor Conference and we'll continue to update you on the exciting progress we are making in both Fremont and the Colorado.

Kang Sun: Finally, I'd like to thank our employees.

Kang Sun: And the shareholders for their continued support.

Kang Sun: Okay.

Operator: This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Speaker Change: This will conclude today's conference you may disconnect your lines at this time and thank you for your participation.

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