Q2 2024 Amprius Technologies Inc Earnings Call

August 8, 2024

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Operator: Good afternoon. Welcome to the Amprius Technology second 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.

Operator: Welcome to the Amprius Technology Second Quarter, 2024, earnings conference call.

Speaker Change: Good afternoon. Welcome to the Amprius Technology Second 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. Following management's remarks, we will open the call for questions.

Operator: Joining us for today's presentation are the company CEO, Dr. Kang Sun, and TFO, Sandra Wallach. At this time, all participants are in listen-only mode.

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 new applications, and the timing and ability of Amprius to expand its manufacturing capacity, build its large-scale manufacturing facility, 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: Following management's remarks, we will open the call for questions.

Operator: Please note that this presentation contains forward-looking statements, including but not limited to statements regarding future product commercialization, new customer adoption and new applications, and the timing and ability of Amprius to expand its manufacturing capacity, build its large-scale manufacturing facility, 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.

Please note that this presentation contains forward-booking statements, including but not limited to statements regarding future product commercialization, new customer adoption and new applications, and the timing and ability of amperious to expand its manufacturing capacity, build its large-scale manufacturing facility, scale of 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.

For a more complete discussion of these risks and uncertainties, please refer to Amberie's file links with this shirt is an exchange commission.

Operator: 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.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.

Speaker Change: 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.amprius.com.

Speaker Change: In addition to the web gas 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 Amperious Technology CEO Dr. Kang Sun for his comments. Sir, please proceed.

Kang Sun: I will now turn the call over to Amprius Technology CEO, Dr. Kang Sun, for his comments. Sir, please proceed.

Operator: For a more complete discussion of these risks and uncertainties, please refer to Amprius's 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.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 Technology's CEO, Dr. Kang Sun, for his comments. Sir, please proceed.

Kang Sun: Welcome everyone and thank you for joining us this afternoon. On today's call, I will give you an overview of our second quarter accomplishments, while also highlighting some of the upcoming milestones we are expecting later this year. Our CFO, Sandra Wallach, will then discuss our financial results for the period. After that, we 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 our company.

Kang Sun: Welcome, everyone, and thank you for joining us this afternoon. Today's call, I will give you an overview of our second quarter of accomplishments, for also highlighting some of our upcoming milestones we are expecting later this year. Our CFO, Sangio Walik, will then discuss our financial results of the period, of that we will share some closing remarks before opening the call for questions.

Speaker Change: Welcome everyone and thank you for joining us this afternoon. On today's call I will give you an overview of our second quarter accomplishments while also highlighting some of the upcoming milestones we are expecting later this year.

Speaker Change: Our CFO , Sandra Wallach, will then discuss our financial results of the period. After that, we will share some closing remarks before opening the call for questions.

Kang Sun: Before I give a recap of the quarter, I would like to briefly introduce Amprius to those who may be new to our company. At Amprius, we developed manufacture and the market high energy density and high power density batteries with applications across all segments of electrical mobility, including the aviation and the EVA industries. Today, Amprius comments on performance leadership in this compilation of battery energy density, power density, charging time, operating temperature range, and safety. Across our battery portfolio, we offer unmatched performance amongst commercially available batteries. Amprius has been delivering commercial battery to the market with up to 450-hour per kilo and a 1150-hour per liter.

Kang Sun: At Amprius, we develop metafactor and the market high-energy density and high-power density batteries, with applications across all segments of electrical mobility, including the aviation and the event industry. Today, Amprius commends performance leadership in its compilation of battery, energy density, power density, charging time, operating temperature range, and safety. Across our battery portfolio, we offer unmatched performance amongst commercially available batteries. Amprius has been delivering commercial batteries to the market with up to 450Wh per kilo and 1150Wh per liter.

Speaker Change: Before I give a recap of the quarter, I would like to briefly introduce Amprius to those who may be new to our company.

Speaker Change: At Amphyrs, we develop, manufacture, and the market, high energy density, and the high power density batteries, with the applications across or segments of the electrical mobility, including the aviation and the evading industries.

Speaker Change: Today, Amprius commends performance leadership in its compilation of battery, energy, density, power density, charging time, operating temperature range, and safety.

Speaker Change: Across our battery portfolio, we offer unmatched performance amongst commercially available batteries.

Andrea: Andrea has been delivering commercial battery to the market with up to 450W per kilo and the U.S. and 50W per liter.

Kang Sun: Tense power capability. The extreme fast charger rate of 0-80% still of the charge in approximately 6 minutes. The ability to operate in a wide-temperature range of men at the 30-degree Celsius up to 55-degree Celsius and the safety design features that enable us to pass the United States' military benchmark and nail-pennification test. Each of these performance parameters is critically important to reward electrical mobility applications. Not only do our batteries enable certain aircraft and vehicles to maximize performance, but enable our customers to achieve very economic targets as well. In addition to what is commercially available today, we have also achieved a third-party validation of our latest the 500-watt-per-kil, 1300-watt-per-liter battery platform.

Kang Sun: Kinsey Public Limited, the extreme fast charge rate of 0 to 80% stay off the charge in proximity for 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 features that enable us to pass the United States military's benchmark and new penetration test.

Speaker Change: Tennessee Power Capabilities.

Speaker Change: The extreme fast charge rate of 0 to 80% stay off the charge in approximately 6 minutes.

Andrea: the ability to operate in a wide temperature range of minus 30 degrees Celsius up to 55 degrees Celsius.

Speaker Change: and the safety design features that enable us to pass the United States military's benchmark and nail penetration test.

Kang Sun: He's shown this performance of Providmetryals, critically important to real world electrical mobility applications. Not only do our batteries enable certain aircraft and vehicles to maximize performance, but they also enable the laborable customer to achieve the very commandment of targets as well. In addition to watch the commercial available today, we have also achieved a third-party validation of our latest 500-wawa-for-kind 13-hundred-wawa-for-eater battery platform. This battery will be ready for commercial shipment later this year, if I would believe that.

Speaker Change: Each of these performance parameters

Speaker Change: It's critical to important to reward electrical mobility applications. Not only do our battery label certain aircraft and vehicles to maximize performance, not only label our customers to achieve very economic targets as well.

Speaker Change: In addition to what is commercially available today, we have also achieved third-party validation of our latest 500Wh per kilo, 1300Wh per liter battery platform.

Kang Sun: This battery will be ready for commercial shipment later this year. This hour will believe that there are no other commercial batteries on the market that can perform at this level today. Amprius is a civic and animal battery technology pioneer. There is over a decade of development experience producing a strong patent for the photo of over 80 issued patents and patent applications and the long track record of commercial shipments and customer accomplishments.

Speaker Change: This battle will be ready for commercial shipment later this year.

Kang Sun: There are no other commercial batteries on the market that can perform at these levels today. Amprius, Peter Siddiken, and Bertry Tagaloggy Pioneer, with over a decade of development experience, producing a strong patent portfolio of over 80 issued patents and patent applications, and the long track record of commercial shipments the customer has achieved. Turning to the second quarter results.

Speaker Change: He thought I would believe that there are no other commercial batteries on the market that can perform at a these levels today.

Speaker Change: Amprius is a silicon-ion battery technology pioneer with over a decade of development experience, producing a strong patent portfolio of over 80 issued patents and patent applications.

Speaker Change: and the long track record of commercial shipments and customer accomplishments.

Kang Sun: Turning to the second quarter results, Amprius had a very productive quarter. We delivered a new high performance batteries to the market, developed a large manufacturing capacities and engaged with the new customers and the new market segments. The launch of Amprius cycle battery early this year has excite our customer base and attract the new customers. It also enabled Amprius to explore new market segments. Since the launch, we have seen continuity meant for cycle battery innovation in electrical transportation and other industrial applications. Amprius has recently further optimized our cell chemistries and cell designs, allowing us to deliver the battery with enhanced performance to the market.

Kang Sun: Amprius had a very productive quarter, with the launch of its new high-performance batteries to the market, development, large manufacturing capacity, and engagement with new customers and new market segments. The launch of Amprius' side-core battery early this year excited our customer base and attracted new customers. It also enabled Amprius to explore new Machiave segments soon for the launch.

Speaker Change: Turning to the second quarter results, Amprius had a very productive quarter. We delivered new high-performance batteries to the market.

Speaker Change: Divided for the larger manufacturing capacities and engaged with new customers and the new marketing segments.

Speaker Change: The launch of Amprius' Sidecore battery early this year has excited our customer base and attracted new customers.

Speaker Change: It also enabled Amprius to explore new market segments.

Kang Sun: We have seen continued demand for cycle batteries in aviation, electrical transportation, and other industrial applications. Amprius has recently further optimized our cell chemistries and the cell design, allowing us to deliver batteries with enhanced performance to the market. One of these high-performance batteries is the Amprius SE 11 bit. This is the energy and the power balance of the battery based on Amprius cycle cell chemistry. This 30 amp hour cell offers a 350 watt replicator with 700 cycles.

Speaker Change: See you for the lunch.

Speaker Change: We have seen continued demand for cycle battery in aviation, electrical transportation, and other industrial applications.

Speaker Change: I'm Pierce has a recent but he further optimized our cell chemistry and the cell developed allowing us to deliver the battery with enhanced performance to the market.

Kang Sun: While these high performance batteries is Amprius SA11 battery, this is the energy and the power of balance for battery based on Amprius's cycle or cell cancer. This 30-amp hour cell offers a 350-hour per kilo with 700 cycles. The performance and the cell format are specifically designed for certain electrical mobility applications, such as the EV tour and the drone market. Another battery we delivered in the second quarter is the Amprius SA17. This is the highest known energy density cylindrical battery with this format in the industry. Following the success of our 1860 battery that was released in January, we created a larger version of the cylindrical battery, the 21700.

Speaker Change: One of these high-performance batteries is MPs F-E-11 batteries. This is the energy and the power of balance for battery based on MPs's side core cell cancer.

Speaker Change: This 30Ah cell offers 350Wh per kWh with 700 cycles.

Kang Sun: The performance and the cell format are specifically designed for certain electrical mobility applications, such as the E-Wi-Tor and the Joe Market. Another battery we delivered in the second quarter is the Amprius SE17. This is the highest known energy density cylindrical battery with this format in the industry. Following the success of our 18650 battery that was released in January, we will create a larger version of the cylindrical battery. The 20-line statement, how you...

Speaker Change: The performance and the cell format are specifically designed for certain electrical mobility applications such as the EV Tor and the dual market.

Speaker Change: Another battery we've delivered in the second quarter is the MPs SA 17. This is the highest known energy density cylindrical battery with this format in the industry.

Speaker Change: Following the success of our 1860 battery that was released in January, we create a larger version of the single battery.

Kang Sun: The larger PC-17 offers a six-ampower energy-providing customer cropping replacement for those that currently use a five-ampower battery. The AC-17 enables us to further target the micromobility segments, including two-wheeler applications, like scooters and the e-bikes, as well as other applications in relation and the industry equipment. With these new additions, Amprius has 14 SKUs in our product portfolio. Our battery offerings cover the entire performance map of our customer commercial applications, energy, power, cycle life, charging time, and the more. The combination of Amprius XMX and the cycle platforms enables us to tailor our cell chemistry for various customer requirements.

Kang Sun: The larger SE17 offers 6Ah energy, providing customer drop-in replacement for those that currently use 5Ah batteries. A.C. 17 in Leigh Boast to further target the micro-mobility segment, including two waiver applications like scooters and e-bikes, as well as other applications in aviation and industrial equipment, with this new edition. Ampheus has a photo taken as a key use in our report on the portfolio. I will present the offering, and cover the entire performance map of our customer commercial applications, energy, power, cycle life, charging time, and more. The combination of Amprius' CEMEX and Cycle platforms enable us to tailor our cell chemistry for various customer requirements. Both Amprius SamX and Cycle batteries can be high energy, and the high-power solution for e-waste.

Speaker Change: The 21st and 21st, how you do it?

Speaker Change: The larger SE17 offers 6Ah energy, providing customer drop-in replacement for those that currently use 5Ah batteries.

Speaker Change: [inaudible]

Speaker Change: including two-wheeler applications like a school nurse and a e-bikes.

Speaker Change: as well as other applications in aviation and industrial equipment.

Speaker Change: With these new additions,

Speaker Change: Amprius has 14 SKUs in our product portfolio.

Speaker Change: Our battery offerings cover the entire performance map of our customer commercial applications. Energy, power, cycle life, charging time, and more.

Speaker Change: the Commission of Ampereus, the Sandex and the Psycho-Predforms in Libua to a pillar of a sale chemistry for various customer requirements.

Kang Sun: Both Amprius XMX and the cycle batteries can be high energy and a high-power solution for e-vase. This quarter, we made a material progress for delivering the 100-ampower e-vase form factor battery cells to the United States Advanced Battery Consortium or U.S.A.V.C. The cell we have developed will meet or exceed our 2023 U.S.A.V.C. do cause the fast-charging e-vase cell characteristics, including exceptional fast-charging performance and usable energy in your low cost battery solution. This development was under a three-meaning cost sharing contract from the U.S.A.V.C. in collaboration with the United States Department of Energy. Amprius high-performance batteries have continued to be received attention from customers in various market segments.

Speaker Change: Both countries of San Max and the cycle of batteries can be chronology and the high power solution for EVAs.

Kang Sun: This quarter, we made material progress on delivering the £100 EVA form-factor battery cells to the United States of the Lens Security Consortium, or USABC. The cell we have developed will meet or exceed the 2023 USADC low-cost fast-charging EV. Cell characteristics, including exceptional fast charging performance and the usable energy, you know, the low cost of that piece of wood.

Speaker Change: This quarter, we made material progress for delivering the 100-amp-hour EV form-factor battery cells to the United States Advanced Battery Consortium.

Speaker Change: OES ABC

Speaker Change: The cell we have developed will meet or exceed or 2023 USADC low-cost fast-charging EV.

Speaker Change: Cell characteristics, including exceptional, fast charging performance, and the usable energy in a low cost that is rooted.

Kang Sun: This development was under a three-unit cost-sharing contract from the U.S. ABC in collaboration with the United States Department of Energy. Amprius high-performance batteries have continuously received attention from customers in various market segments. In many cases, Amprius batteries are the only known commercially available batteries that will meet the customer requirements in technical performance and application economics. In Q2, we shifted to 56 customers; of those, 24 were new customers across the electrical mobility sector, complementing strong, repeat volume orders from our longtime partners such as Aerovironment, Pellet, and FLIR. Klaus Amdahnli and the BAE System.

Speaker Change: This development was under a three million cost-sharing contract from the USABC in collaboration with the United States Department of Energy.

Speaker Change: Amperes high-performance batteries

Speaker Change: have continuously received attention from customers in various market segments.

Kang Sun: In many cases, Amprius batteries are the only non-commercially available batteries that meet customer requirements in technical performance and application economics. In Q2, we shifted to 56 customers; of those, 24 were new customers across the electrical mobility sector. Complimenting strong repeat volume orders from our long-time partners such as Air Environment, Television Sphere, Cloud On-Downly and the BAE System. This compilation of 2,000 new customers and the volume shipments to returning customers allowed us to double our quarterly revenue outputs compared to Q2 last year. Geographically, we record a 41% year-over-year increase in shipments within the United States and a robust 271% increase in shipments to the rest of the world.

Speaker Change: In many cases, I'm Chris Beatrice.

Speaker Change: are the only known commercially available batteries that meet the customer requirements in technical performance and application economics.

Chris Beatrice: In Q2, we shifted to 56 customers.

Speaker Change: Of those 24 were new customers across the electrical mobility sector.

Speaker Change: complementing strong repeat volume orders from our longtime partners such as Aerovironment, Teledyne FLIR, Klaus Humdangli and BAE Systems.

Kang Sun: This compilation of 2,000 new customers and the volume of shipments to returning customers allowed us to double our quarterly revenue output compared to Q2 last year. Geographically, we registered a 41% year-over-year increase in shipments within the United States and a robust 271% increase in shipments to the rest of the world. With these improvements, we recorded 50% of total revenue in the second quarter from all sides of the United States. Look at the forward demand. We locked $7.6 million in new sales orders during the quarter, which translated to a 32% increase in our next backlog at the end of Q2 versus Q1.

Speaker Change: This compilation of 2,000 new customers and the volume of shipments to returning customers allowed us to double our quarterly revenue output compared to Q2 last year.

Good afternoon.

Operator: Welcome to the Amprius Technology Second Quarter, 2024, Earnings Conference Call. Joining us for today's presentation are the company CEO, Dr. Kang Sun, and TFO, Sandra Wallach. At this time, all participants are a listen-only mode. Following management's remarks, we will open the call for questions.

Speaker Change: geographically, we record a 41% year-over-year increase in shipments within the United States.

Speaker Change: and a robust 271% increase in shipments to the rest of the world.

Kang Sun: With this improvement, we record 50% of total revenue in the second quarter from all sides of the United States. Look at the four-word demand. We locked 7.6 million in new sales orders during the quarter, which translated to a 32% increase in our next backlogs at the end of Q2 versus Q1. During the quarter, we also secured an additional order from Mount Tide customer Otto Airbus. Based on all the sites and the timing, Amprius will not be delivering 7.6, 450-hour-per-kettle high-energy battery sales to Otto Airbus through 2025. But this battery sales will continue to supply the necessary power and endurance for Otto Airbus project safer, subtle, ferric flight operations.

Operator: Please note that this presentation contains forward-looking statements, including but not limited to statements regarding future product commercialization, new customer adoption and new applications, and the timing and ability of Amprius to expand its manufacturing capacity, build its large-scale manufacturing facility, 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. For a more complete discussion of these risks and uncertainties, please refer to Amprius' filings with the Securities and Exchange Commission.

Speaker Change: With these improvements, we record 50% of the total revenue in the second quarter from all sides of the United States.

Speaker Change: Look at the score of demand. We locked 7.6 million in new sales orders during the quarter.

Speaker Change: which translated to a 32% increase in our next backlogs at the end of the Q2 versus Q1.

Kang Sun: During the quarter, we also secured an additional order from longtime customer Otto Airbus, based on order size and timing. Amprius will now be delivering Cenex 450-watt per kilo high-energy battery cells to Auto Airbus through 2025. These battery cells will continue to supply the necessary power and endurance for Auto Airbus Project Zephyr. Strattlet, Ferry, Flight, Hopereads.

Speaker Change: During the quarter we also secured additional order from Mount Tai's customer Auto Airbus based on older sites and timing.

Operator: 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.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.

Speaker Change: Amprius will now be delivering CEMEX 450Wh per kilo high-energy battery cells to Auto Airbus through 2025.

Speaker Change: This battery cells will continue to supply the necessary power and endurance for auto-parabas, project, effort, struggle, ferry, flight, operations.

Operator: I will now turn the call over to Amprius Technology CEO, Dr. Kang Sun, for his comments. Sir, please proceed.

Kang Sun: In Q2, we also entered into three different partnerships with leading packet designers and manufacturers. This partnership is critical as they allow us to broaden our sales reach and offer our next generation batteries to each manufacturer's respect customer base. With the increase in customers, Amprius has developed a significant manufacturing capacity in the second quarter. The company took several steps forward to expand both our SMX and the cycle product capacity. Well, cycle, where currently have three well-equipped and a very experienced logic scale manufacturing partners in Asia, providing over 500-megawatt of a production capacity across both pouch and the cylindrical battery sales.

Kang Sun: In Q2, we also entered into three different partnerships with leading pack designers and manufacturers. These partnerships are critical as they allow us to broaden our sales reach and offer our next generation batteries to each manufacturer's respective customer base. With the increase in customers, Amprius developed a significant manufacturing capacity in the second quarter. The company took several steps forward to expand both our Cenex and Cycle product capacity. For CICOR, we currently have three well-equipped and very experienced large-scale manufacturing partners in Asia, providing over 500 megawatt hours of production capacity across both pouch and cylindrical battery cells.

Kang Sun: Welcome, everyone, and thank you for joining us this afternoon. Today's call, I will give you an overview of our second quarter of accomplishments, for also highlighting some of our upcoming milestones we are expecting later this year. Our CFO, Sangio Walik, will then discuss our financial results of the period of that we will share some closing remarks before opening the call for questions.

Speaker Change: In Q2, we also entered into three different partnerships with leading packet designers and manufacturers.

Speaker Change: These partnerships are critical as they allow us to broaden our sales reach and offer our next-generation batteries to each manufacturer's respected customer base.

Speaker Change: With the increase in customers, Amprius has developed a significant manufacturing capacity in the second quarter.

Speaker Change: The company took several steps forward to expand both our CEMEX and cycle product capacity.

Speaker Change: For CYCORP, we currently have three well-equipped and very experienced, large-scale manufacturing partners in Asia.

Speaker Change: providing over 500 MWh of production capacity across both pouch and cylindrical battery cells.

Kang Sun: Amprius today has SS to approximately 10 million pouch sales and 125 million cylindrical sales annually. These arrangements provide us with less global production capacity and ensure that we deliver our products in a timely manner when maintaining the quality our customers expect. More importantly, the concrete manufacturing partnership model allows us to eliminate the upfront capital expenditure, who are ensuring immediate capacity to accelerate our sales.

Kang Sun: Amprius today has access to approximately 10 million pulse cells and 125 million cylindrical cells annually. These arrangements provide us with massive global production capacity and ensure that we deliver our products in a timely manner while maintaining the quality our customers expect. More importantly, the contract manufacturing partnership model allows us to eliminate up-trend capital expenditure while ensuring immediate capacity to accelerate our sales. We are also planning a manufacturing facility in Brighton, Colorado.

Speaker Change: Amprius today has access to approximately 10 million pulse cells and 125 million cylindrical cells annually.

Kang Sun: Across our battery portfolio, we offer unmatched performance amongst commercially available batteries. Amprius has been delivering commercial battery to the market with up to 450-hour per kilo and a 1150-hour per liter. Tense power capability. The extreme fast charger rate of 0-80% still of the charge in approximately 6 minutes. The ability to operate in a wide-temperature range of men at the 30-degree Celsius up to 55-degree Celsius and the safety design features that enable us to pass the United States' military benchmark and nail-pennification test.

Speaker Change: This arrangement provided us with mass global production capacity and ensure that we deliver our products in a timely manner while maintaining the quality of our customers' expect.

Speaker Change: More importantly, the contract manufacturing partnership model allows us to eliminate up-front capital expenditure while ensuring immediate capacity to accelerate our sales.

Kang Sun: We are also planning a manufacturing facility in Brighton, Toronto. We have now completed roughly 60% of the construction design drawings and specifications for the facility. We will remain on track from a regulatory standpoint, having reasonable needs for our fed plant and the event or other regulatory plans and applications for the facility. As we previously discussed, the initial production line in Colorado will be focused on psycho-medicaching. Given the more immediate opportunities we have identified for the psycho-platform and a specific vehicle customer requesting a U.S.-based supply chain. We continue to make important progress to ramp up our facility in Fremont, California.

Speaker Change: We are also planning a manufacturing facility in Brighton, Colorado.

Kang Sun: We have now completed roughly 60% of the construction design drawings and specifications for the facility. We remain on track from a regulatory standpoint, having recently submitted our Fed Plan and Advancement, or other regulatory plans and applications for the facility. As we previously discussed, the initial production line in Colorado will be focused on cycle manufacturing.

Speaker Change: We have now completed roughly 60% of the construction design drawings and specifications for the facility. We remain on track from a regulatory standpoint. Having recently submitted our FED plan and advanced it.

Kang Sun: Each of these performance parameters is critically important to reward electrical mobility applications. Not only do our battery enable certain aircraft and vehicles to maximize performance, but enable our customers to achieve very economic targets as well. In addition to what is commercially available today, we have also achieved a third-party validation of our latest the 500-watt-per-kil, 13-hundred-watt-per-liter battery platform. This battery will be ready for commercial shipment later this year. This hour will believe that there are no other commercial batteries on the market that can perform at this level today. Amprius is a civic and animal battery technology pioneer.

Speaker Change: and others.

Speaker Change: as we previously discussed.

Speaker Change: The initial production line in Colorado will be focused on cycle manufacturing, given the more immediate opportunities we have identified for the cycle platform, and specifically for customers requesting a U.S.-based supply chain.

Kang Sun: Given the more immediate opportunities we have identified for the cycle platform and specifically for customers requesting a US-based supply chain, we continue to make important progress to ramp up our facilities in Fremont, California. In the second quarter, we completed the qualification process for our central thermal machine, which is used in the silicon anode fabrication process. Looking further ahead, we remain on pace to scale our three-month production reach at the end of the year to up to 2 megawatt-hour scale. This includes implementing CEMEX cattle production in-house to streamline our manufacturing process.

Speaker Change: We continue to make important progress to ramp up our facilities in Fremont, California.

Kang Sun: In the second quarter, we completed the qualification process for our central thermal machine, which is used in the silicon annual fabrication process. Look further ahead, we remain on pace to scale our Fremont production reach at the end of the year to up to two megawatt-hour scales. This includes implementing SEMEX cathode production in-house to streamline our manufacturing process. We plan to have this capacity up and running in Fremont later this year as well.

Speaker Change: In the second quarter, we completed the qualification process for our central thermal machine, which is used in the silicon anode fabrication process.

Kang Sun: There is over a decade of a development experience producing a strong patent for the photo of over 80 issued patents and patent applications and the long track record of commercial shipments and customer accomplishments.

Speaker Change: Look further ahead, we remain on pace to scale our free mount production reach at the end of the year to up to two megawar skills.

Speaker Change: This includes implementing ceramics, capital production.

Speaker Change: In the House, the Supreme Alliance, our Medifetion process.

Kang Sun: We plan to have this capacity up and running in Fremont later this year as well. Breakthrough Performance of Amprius Battery The company's 500-watt per kilo battery was selected as the first company magazine for its 2024 Innovation by Design Award. Amprius also won the Clean Tech Breakthrough Award, as the best technology company of the year in the inaugural event, invited by the Taiwan battery.

Speaker Change: We plan to have this capacity up and running in Fremont later this year as well.

Kang Sun: Breakthrough performance of Ampius battery has continued to gain recognition from the battery industry. The company 500-hour per kilo battery was a select that Fast Company magazine for its 2024 Innovation by Design awards. Ampius also recognized that the Klingtech Breakthrough Awards as the Battery Technology Company of the Year is the inaugural event. In red by the Taiwan Battery Association, Ampius hosts the first Ampius battery for ending Thailand April, where over 100 attendees from the industrial leading companies and institutions learned about the Ampius breaks through the silicon annual battery technology and the partnership opportunities. The four and received a significant interest from potential customers, industrial partners, and the Taiwanese investing in the community.

Speaker Change: Breakthrough Performance of Amprius Battery

Speaker Change: has continued to gain recognition from the battery industry.

Speaker Change: The company's $500 per kilowatt battery was selected as the first company magazine for its 2024 Innovation by Design Award.

Speaker Change: Amprius also recognized the Clean Tech Breakthrough Awards.

Speaker Change: [inaudible] Wallach, Sandra Wallach, Sandra Wallach, Sandra

Speaker Change: In weather weather, Taiwan, battery, socialization.

Kang Sun: Amprius hosted its first Amprius battery 4M in Taiwan in April, where over 100 attendees from industry leading companies and institutions learned about Amprius' breakthrough silicon-anode battery technology and partnership opportunities. The forum received significant interest from potential customers, industrial partners, and the Taiwanese investment community. The momentum built in Q2 has given us a strong tailwind in Q3 as well. Recently, we awarded 1.9 million contracts from the U.S. Army's X-Tile Prime Program to develop a large-form factor 500 Watt per kilo-Celmex high-energy density cell for electrical mobility applications in the defense sector. The recognition of this breakthrough technology by the U.S. military opens much broader applications for our 500-watt batteries, which are available only from Amprius today.

Kang Sun: Amprius has recently further optimized our cell chemistries and cell designs allowing us to deliver the battery with enhanced performance to the market. While these high performance batteries is Amprius SA11 battery, this is the energy and the power of balance for battery based on Amprius's cycle or cell cancer. This 30-amp hour cell offers a 350-hour per kilo with 700 cycles. The performance and the cell format are specifically designed for certain electrical mobility applications, such as the EV tour and the drone market.

Speaker Change: Ampere's host is the first Amperes battery 4M in Taiwan in April.

Speaker Change: where over 110 years from being industrial, leading companies, and the institutions learned about the Ampets Bridge from the Silicon Annual Battery Technology and the partnership of opportunities.

Speaker Change: The forum received significant interest from potential customers, industrial partners, and the Taiwanese investment community.

Kang Sun: The momentum viewed in Q2 has given us a strong tailwind in Q3 as well.

Speaker Change: The momentum viewed in YouTube has given us a strong tailwind in Q3 as well.

Kang Sun: Recently, we awarded a 1.9 million contracts from the U.S. Army's Expireal Prime program to develop a large full-factor 500-hour per kilo SEMEX energy density cell for electric mobility applications. in the defense sector. The recognition of this breakthrough technology that the U.S. in military opens much broader applications of our 500-wilded cattle battery that is available only from Amprius today.

Speaker Change: Recently, we were awarded a $1.9 million contract from the U.S. Army's X-Tile Prime Program.

Kang Sun: Another battery we delivered in the second quarter is the Amprius SA17. This is the highest known energy density cylindrical battery with this format in the industry. Following the success of our 1860 battery that was released in January, we created a larger version of the cylindrical battery, the 21700. The larger PC-17 offers a six-ampower energy-providing customer cropping replacement for those that currently use a five-ampower battery. The AC-17 enables us to further target the micromobility segments, including two-wheeler applications, like scooters and the e-bikes, as well as other applications in relation and the industry equipment.

Speaker Change: [inaudible]

Speaker Change: The recognition of this breakthrough technology by the U.S. military opens much broader applications of our 500-watt kilo batteries that is available only from Amprius today.

Kang Sun: In summary, we put for a strong second half of the year, thanks to our increasing sales outlooks, growing customer engagement, expand the production portfolio, and the high volume manufacturing capacity built up. We are working hard to execute our goals and expecting to continue our momentum through 2024, leading to a great 2025.

Kang Sun: In summary, we believe we paused for a strong second half of the year. Thanks to our increasing sales outlook, growing customer engagement, expanding the production portfolio, and high volume manufacturing capacity build up. We are working hard to execute our goals and expecting to continue our momentum through 2024, leading to a great 2025. With that... I will now turn the call over to our CFO, Sandra Wallach, to review our financial results for the quarter. Thank you.

Speaker Change: In summary, we believe we're pushed for a strong second-to-half over the year.

Speaker Change: thanks to our increasing sales outlook, growing customer engagement, expand the production portfolio, and high volume manufacturing capacity build up.

Speaker Change: We are working hard to execute our goals and expecting to continue our momentum through 2024 leading to a great 2025.

Kang Sun: With these new additions, Amprius has 14 SKUs in our product portfolio. Our battery offerings cover the entire performance map of our customer commercial applications, energy, power, cycle life, charging time, and the more. The combination of Amprius XMX and the cycle platforms enables us to tailor our cell chemistry for various customer requirements. Both Amprius XMX and the cycle batteries can be high energy and a high-power solution for e-vase. This quarter, we made a material progress for delivering the 100-ampower e-vase form factor battery cells to the United States Advanced Battery Consortium or U.S.A.V.C.

Sandra Wallach: With that, I will now turn the call over to our CFO, Sandra Wallach, to review our financial results for the quarter.

Speaker Change: We bet.

Speaker Change: I will now turn the call over to our CFO , Sandra Wallach, to review our financial results for the quarter. Thank you.

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 community of previously discussed. Our total revenue is a combination of our main revenue streams: product revenue, development services, and grant revenue. This quarter, all 3.3 million came from our product revenue. As we've discussed in prior quarters, our development services revenue comes from development programs that are non-mecorning in nature. On a sequential quarter-over-quarter basis, our product revenue increased 1 million or 43%. And compared to prior year, revenue increased 1.7 million, or 105%.

Sandra Wallach: 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 second quarter with $3.3 million in total revenue. As we have previously discussed, our total revenue is a combination of our main revenue streams, product revenue, development services, and grant revenue. This quarter, all $3.3 million came from our product revenue. As we've discussed in prior quarters, our development services revenue comes from development programs that are non-recurring in nature.

Sandra Wallach: Thank you, Kang. I would now like to spend a few minutes covering some key financial updates. As a reminder, our detail financials can be found in our shareholder letter.

Speaker Change: We finished the second quarter with $3.3 million in total revenue.

Speaker Change: As we have previously discussed, our total revenue is the combination of our main revenue streams, product revenue, development services, and grant revenue.

Speaker Change: This quarter, all 3.3 million, came from our product revenue. As we've discussed in prior quarters, our development services revenue comes from development programs that are non-mocoring in nature.

Sandra Wallach: On a sequential quarter-over-quarter basis, our product revenue increased $1 million, or 43%, and compared to the prior year, revenue increased $1.7 million, or 105%. These increases were driven by shipments to 56 customers in the quarter. 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. As Kang mentioned, 24 of the 56 customers this quarter were new customers.

Speaker Change: On a sequential quarter-over-quarter basis, our product revenue increased $1,000,000, or 43%, and compared to prior year, revenue increased $1.7 million, or 105%. These increases were driven by shipments to 56 customers in the quarter.

Kang Sun: The cell we have developed will meet or exceed or 2023 U.S.A.V.C, do cause the fast-charging e-vase cell characteristics, including exceptional fast-charging performance and usable energy in your low cost battery solution. This development was under a three-meaning cost sharing contract from the U.S.A.V.C, in collaboration with the United States Department of Energy. Amprius high-performance batteries have continued to be received attention from customers in various market segments. In many cases, Amprius batteries are the only non-commercial available batteries that need customer requirements in technical performance and application economics.

Sandra Wallach: These increases were driven by shipments to 56 customers in the quarter. Although our product revenue remains largely driven by customer purchase orders that can arise at uneven times throughout the year, we have shown consistent new customer growth and diversification in recent quarters. As Kang mentioned, 24 of the 56 customers this quarter were new customers. Also, 3 customers this quarter represented greater than 10% of revenue compared with 3 in Q1 2024 and 5 in the same period last year. Going forward, we will continue adding to our customer mix to diversify our revenue streams and provide more reliable product output as we get to a position of scale.

Speaker Change: All though our product revenue remains largely driven by customer purchase orders that can arise at uneven times throughout the year. We have shown consistent new customer growth and diversification in recent quarters. As Kang mentioned, 24 of the 56 customers this quarter were new customers.

Sandra Wallach: Also, three customers this quarter represented greater than 10% of revenue, compared with three in Q1 2024 and five in the same period last year. Going forward, we will continue adding to our customer base to diversify our revenue streams and provide more reliable product output as we get to a position of scale. Moving to our profitability metrics, our cross margin was negative 195% for the quarter, compared with negative 109% in Q1 2024 and negative 186% in the prior year period.

Kang Sun: Also, three customers this quarter represented greater than 10% of revenue compared with three in Q1 2024 and five in the same period last year.

Speaker Change: Going forward, we will continue adding to our customer mix to diversify our revenue streams and provide more reliable product output as we get to a position of scale.

Sandra Wallach: Moving to our profitability metrics, our gross margin was negative 195% for the quarter. Compared with negative 109% in Q1 2024 and negative 186% in the prior year period. As a reminder, we see significant gross margin variation as our product and service revenue mix fluctuates. Also, our gross margin continues to be impacted by pre-construction costs related to the Colorado facility. Longer term, we are confident that our gap gross margin will begin to normalize as we approach our capacity expansion goal.

Kang Sun: In Q2, we shifted to 56 customers of those 24 were new customers across the electrical mobility sector. Complimenting strong repeat volume orders from our long-time partners such as air environment, television sphere, cloud on-downly and the BAE system. This compilation of 2,000 new customers and the volume shipments to returning customers allowed us to double our quarterly revenue outputs compared to Q2 last year. Geographically, we record a 41% year-over-year increase in shipments within the United States and a robust 271% increase in shipments to the rest of the world. With this improvement, we record 50% of total revenue in the second quarter from all sides of the United States.

Speaker Change: Moving to our profitability metrics, our gross margin was negative 195% for the quarter compared with negative 109% in Q1 2024 and negative 186% in the prior year period.

Sandra Wallach: As a reminder, we see significant gross margin variation as our product and service revenue mix fluctuates. Also, our gross margin continues to be impacted by pre-construction costs related to the Colorado facility. Longer term, we are confident that our gap gross margin will begin to normalize as we approach our capacity expansion goal.

Speaker Change: As you are mine dear.

Speaker Change: We see significant gross margin variation as our product and service revenue mix fluctuates. Also, our gross margin continues to be impacted by pre-construction costs related to the Colorado facility.

Speaker Change: Longer term, we are confident that our gap 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 second quarter were $6.4 million, and increased to $0.5 million or 9% compared with Q1 2024, and a decrease of $0.7 million or 9% from the prior year period. The quarter of a quarter increase was driven by a G&A stock-based compensation. The year-over-year decrease is primarily attributable to reduction since G&A costs that were offset by investment in R&D and sales. Our GAT net loss for the second quarter was $12.5 million, or a net loss of $0.13 per share, with $97 million weighted average number of shares outstanding.

Sandra Wallach: Now on to our operating expense management. Our operating expenses for the second quarter were $6.4 million, an increase of $0.5 million or 9% compared with Q1 2024 and a decrease of $0.7 million or 9% from the prior year period. The quarter-over-quarter increase was driven by G&A stock-based compensation. The year-over-year decrease is primarily attributable to reductions in G&A costs that were offset by investment in R&D and sales.

Speaker Change: Now on to our operating expense management. Our operating expenses for the second quarter were $6.4 million, an increase of $0.5 million or 9% compared with Q1 2024, and a decrease of $0.7 million or 9% from the prior year period.

Speaker Change: The corridor of a quarter increased was driven by GNA stock-based compensation. The year over year decrease is primarily attributable to reductions in GNA costs that were offset by investment in R&D and sales.

Sandra Wallach: Our gap net loss for the second quarter was $12.5 million or a net loss of $0.13 per share with 97 million weighted average number of shares outstanding. In Q1 2024, net loss was a negative 11 cents per share with 90 million weighted average number of shares outstanding, and in Q2 2023, net loss was also negative 11 cents per share with 85.2 million weighted average number of shares outstanding.

Kang Sun: Look at the four-word demand. We locked 7.6 million in new sales orders during the quarter, which translated to a 32% increase in our next backlogs at the end of the Q2 versus Q1. During the quarter, we also secured additional order from Mount Tide customer Otto Airbus. Based on all the sites and the timing, Amprius will not be delivering 7.6, 450-hour-per-kettle high-energy battery sales to Otto Airbus through 2025. But this battery sales will continue to supply the necessary power and endurance for Otto Airbus project safer, subtle, ferric flight operations.

Speaker Change: Our GatNet loss for the second quarter was 12.5 million on a net loss of 13 cents per share. With 97 million weighted average number of shares outstanding.

Sandra Wallach: In Q1 2024, net loss was a negative $0.11 per share with $90 million weighted average number of shares outstanding. In Q2 2023, net loss was also negative $11 per share, with $85.2 million weighted average number of shares outstanding. As of June 30th, 2024, there were 88 full-time employees, up from 81 in the first quarter and 72 in the prior year's same period, with those employees primarily based in our Fremont, California location. Our share-based compensation for the second quarter was $1.9 million compared to $1.2 million in Q1 and $0.9 million in the prior year period.

Speaker Change: In Q1 2024, net loss was a negative 11 cents per share with 90 million weighted average number of shares outstanding.

Speaker Change: and in Q2 2023, that loss was also negative 11 turns per share with 85.2 million weighted average number of shares outstanding.

Sandra Wallach: As of June 30th, 2024, there were 88 full-time employees, up from 81 in the first quarter and 72 in the prior year same period, with those employees primarily based in our Fremont, California location. Our share-based compensation for the second quarter was $1.9 million, compared to $1.2 million in Q1 and $0.9 million in the prior year period. As of June 30, 2024, we had 108 million shares outstanding, which was up 15.7 million from the prior quarter and primarily related to the recent work we've done to clean up our cap table, which I'll now discuss.

Speaker Change: As of June 30, 2024, there were 88 full-time employees, up from 81 in the first quarter and 72 in the prior year's same period, with those employees primarily based in our Fremont, California location.

Speaker Change: Our share-based compensation for the second quarter was $1.9 million compared to $1.2 million in Q1 and $0.9 million in the prior year period.

Sandra Wallach: As of June 30th, 2024, we had 108 million shares outstanding, which was out 15.7 million from the prior quarter, and primarily related to the recent work we've done to clean up our cap table, which I'll now discuss. During the second quarter, we completed a cash tender offer, which provided a temporary exercise period with a reduced cash exercise price for our private and public warrants. In the cash approximately $47.7 million to approximately $34.6 million and raised net proceeds of $14.2 million. We have also closed the second tender offer that allowed cashless exercise of the private warrants, which resulted in the extinguishment of $15.6 million of the $15.9 million total outstanding in exchange for the issuance of 3.1 million shares of common stock.

Kang Sun: In Q2, we also entered into three different partnerships with leading packet designers and manufacturers. This partnership are critical as they allow us to broaden our sales reach and offer our next generation batteries to each manufacturer's respect customer base.

Speaker Change: As of June 30, 2024, we had 108 million shares outstanding, which was up 15.7 million from the prior quarter, and primarily related to the recent work we've done to clean up our cap table, which I'll now discuss.

Sandra Wallach: During the second quarter, we completed a cash tender offer which provided a temporary exercise period with a reduced cash exercise price for our private and public warrants. Through the cash tender offer, we were able to reduce the number of warrants outstanding from approximately $47.7 million to approximately $34.6 million and raised net proceeds of $14.2 million. We have also closed the second tender offer that allowed cashless exercise of the private warrants, which resulted in the extinguishment of $15.6 million of the $15.9 million total outstanding in exchange for the issuance of 3.1 million shares of common stock. In total, more than 60% of the original warrants are no longer outstanding.

Speaker Change: During the second quarter we completed a cash tender offer which provided a temporary exercise period with a reduced cash exercise price for our private and public warrants.

Kang Sun: With the increase in customers, Amprius has developed a significant manufacturing capacities in the second quarter. The company took several steps forward to expand both our SMX and the cycle product capacity. Well, cycle, where currently have three well-equipped and a very experienced logic scale manufacturing partners in Asia, providing over 500-megawatt of a production capacity across both pouch and the cylindrical battery sales. Amprius today has SS to approximately 10 million pouch sales and 125 million cylindrical sales annually.

Speaker Change: In the cash tender offer we were able to reduce the number of warrants outstanding from approximately $47.7 million to approximately $34.6 million and raised net proceeds of $14.2 million.

Speaker Change: We have also closed the second tender offer that allowed cashless exercise of the prize at warrants, which resulted in the extinguishment of $16.6 million at the $15.9 million total outstanding in exchange for the issuance of $3.1 million shares of common stock.

Sandra Wallach: In total, more than 60% of the original warrants are no longer outstanding.

Speaker Change: In total, more than 60% of the original warrants are no longer outstanding.

Sandra Wallach: Turning now to the balance sheet, we exited the second quarter with $46.4 million in net cash and no debt. Compared to Q1, we recorded a net increase of $7.4 million in cash. Key drivers of our cash activity for the quarter were $17 million of cash inflow, added with $14.2 million netted from the cash tender offer, and $2.8 million of cash inflow added primarily through the usage of our ATM. $8 million used in operating cash flow. We continue to remain lean with a 2 to 2.5 million run rate per month, excluding transaction-related costs, and $1.6 million used to continue build out of our expanded 2-megawatt production line in free month, and move our Brighton, Colorado facility forward.

Speaker Change: Turning now to the balance sheet, we exceeded the second quarter with 46.4 million in that cash and no debt. Compared to Q1, we recorded the net increase of 7.4 million in cash.

Kang Sun: These arrangements provide us with less global production capacity and ensure that we deliver our products in a timely manner when maintaining the quality our customers expect. More importantly, the concrete manufacturing partnership model allows us to eliminate the upfront capital expenditure who are ensuring immediate capacity to accelerate our sales.

Speaker Change: Key drivers of our cash activity for the quarter were $17 million of cash inflow added, with $14.2 million netted from the cash tender offer, and $2.8 million of cash inflow added primarily through the usage of our ATM.

Sandra Wallach: $8 million used in operating cash flow, we continue to remain lean with a $2 to $2.5 million run rate per month, excluding transaction-related costs, and $1.6 million used to continue the build-out of our expanded 2-megawatt production line in Fremont and move our Brighton, Colorado facility forward. 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 the remainder of the year.

Speaker Change: 8 million used in operating cash flow, we continue to remain lean with a two to two and a half million run rate per month, excluding transaction related costs.

Speaker Change: and $1.6 million used to continue build out of our expanded 2-megawatt production line in Fremont and move our Brighton, Colorado facility forward.

Sandra Wallach: Considering our business achievements and ongoing projects, we believe we are efficiently using capital to drive Amprius forward.

Speaker Change: Considering our business achievements and ongoing projects, we believe we are efficiently using capital to drive Amprius forward.

Sandra Wallach: Before I turn the call back over to Kane, I would like to take a moment to discuss our outlook for the remainder of the year. We expect to spend another one to two 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 end of the fourth quarter of this year. As Kane mentioned, we're also finalizing the pre-construction work for our Colorado facility. The first line will be for Sci-core manufacturing. This allows us to use conventional off-the-shelf processes, which will help us provide a high-confidence schedule and cost.

Speaker Change: 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.

Sandra Wallach: We expect to spend another one to two 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 end of the fourth quarter of this year. As Kang mentioned, we're also finalizing the pre-construction work for our Colorado facility. The first line will be for SICOR manufacturing. This allows us to use conventional, off-the-shelf processes, which will help us provide a high-confidence schedule and cost.

Speaker Change: We expect to spend another 1-2 million on equipment to support the 2-megawatt line in Freemont. This includes a necessary tools to have our cast-out line up and running by the end of the fourth quarter of this year.

Kang Sun: As we previously discussed, the initial production line in Colorado will be focused on psycho-medicaching. Given the more immediate opportunities we have identified for the psycho-platform and a specific vehicle customer requesting a U.S.-based supply chain.

Speaker Change: As Kang mentioned, we're also finalizing the pre-construction work for our Colorado facility. The first line will be for SICOR manufacturing. This allows us to use conventional, off-the-shelf processes, which will help us provide a high-confidence schedule and cost.

Sandra Wallach: The total facility will have room to accommodate three to five gigawatts of capacity to support both Synex and Sci-core production. The construction scope and schedule for the facility will be determined based on the final design and the availability and timing of funding.

Sandra Wallach: The total facility will have room to accommodate 3 to 5 gigawatts of capacity to support both Symax and Sycorp production. The construction scope and schedule for the facility will be determined based on the final design and the availability and timing of funding. In addition, we're paying close attention to the larger industry dynamics. Changes in demand, supply, battery cost structure, government incentives, trade tariffs, and other considerations would also influence our decision to support our strategic plan.

Kang Sun: We continue to make important progress to ramp up our facility in Fremont, California. In the second quarter, we completed the qualification process for our central thermal machine, which is used in the silicon annual fabrication process. Look further ahead, we remain on pace to scale our Fremont production reach at the end of the year to up to two megawatt-hour scales. This includes implementing SEMEX cathode production in house to streamline our manufacturing process. We plan to have this capacity up and running in Fremont later this year as well.

Speaker Change: The total facility will have room to accommodate three to five gigawatts of capacity to support both Symax and Sycorp production.

Speaker Change: The construction scope and schedule for the facility will be determined based on the final design and the availability and timing of funding.

Sandra Wallach: In addition, we're paying close attention to the larger industry dynamics. Changes in demand, supply, battery cost structure, government incentives, trade tariffs, and other considerations would also influence our decision. To support our strategic plan, we are regularly evaluating our capital resources, including sources of funding that provide the optimal cost of capital for our current production needs. These sources include both equity issuances, such as sales under our ATM or warrant exercises, and non-delutive sources such as grants, loans, and incentives.

Speaker Change: In addition, we're paying close attention to the larger industry dynamics. Changes in demand, supply, battery cost structure, government incentives, trade tariffs, and other considerations would also influence our decision.

Sandra Wallach: We are regularly evaluating our capital resources, including sources of funding that provide the optimal cost of capital for our current production needs. These sources include both equity issuances, such as sales under our ATM or warrant exercises, and non-dilutive sources, such as grants, loans, and incentives. That concludes my financial discussion, and I will now pass the call back to Kang. Thanks.

Speaker Change: To support our strategic plan, we are regularly evaluating our capital resources, including sources of funding that provide the optimal cost of capital for our current production needs.

Speaker Change: The sources include both equity issuances, such as sales under ATM or Orange exercises and non-deludous sources such as grants loans and incentives.

Kang Sun: Breakthrough performance of Ampius battery has continued to gain recognition from the battery industry. The company 500-hour per kilo battery was a select that fast company magazine for its 2024 innovation by design awards. Ampius also recognized that the Klingtech Breakthrough awards as the battery technology company of the year is the inaugural event. In red by the Taiwan battery association, Ampius hosts the first Ampius battery for ending Thailand April, where over 100 attendees from the industrial leading companies and institutions learned about the Ampius breaks through the silicon annual battery technology and the partnership opportunities. The four and received a significant interest from potential customers industrial partners and the Taiwanese investing in the community.

Sandra Wallach: That concludes my financial discussion, and I will now pass the call back to Kenning.

Speaker Change: That concludes my financial discussion and I will now pass the call back to Kang.

Kang Sun: Thanks, Center. As we look ahead, our strategy at the MPS is we may entrench our top priorities in the next generation battery, growing our customer base, and scaling our manufacturing capacities. We have a repeat density density to unmatch the breakthrough battery performance in our industry, commending a firm technology leap with our cell combination of safety, energy, power, charging time, and the temperature performance. Our batteries are uniquely positioned for the electrical mobility market, and they are globally available right now. Our breakthrough technology are already validated by our growing bulk of customers. This quarter alone, we shipped to over 56 customers, as we continue to expand our portfolio of offering to meet a greater range of user choices.

Kang Sun: As we look ahead... Our strategy at Amprius remains unchanged. Our top priorities are innovating next-generation batteries, growing our customer base, and scaling our manufacturing capacity. We have repeatedly demonstrated unmatched breakthrough battery performance in our industry, Commending a firm technology lead with our cell combination of safety, energy, power, charging time, and temperature performance. Our batteries are uniquely positioned for the electrical mobility market, and they are globally available right now. Our breakthrough technologies are already validated by our growing list of customers. This quarter alone, we shipped to over 56 customers, as we continue to expand our portfolio of offerings to meet a greater range of user cases. We expect the significance of more traction with customers.

Kang Sun: Thanks, Sandra

Kang Sun: As we look her head.

Kang Sun: Our strategy at the MPS is the main end chance of a top priorities you will be in the next generation battery growing our customer base and escaping our manufacturing capacities.

Speaker Change: We have repeatedly demonstrated unmatched breakthrough battery performance in our industry.

Kang Sun: Commending a firm technology leap with our cell combination of safety, energy, power, charging time, and the temperature performance.

Kang Sun: Our batteries are uniquely positioned for the electrical mobility market, and they are globally available right now.

Kang Sun: Our breakthrough technologies are already validated by our growing book of customers.

Kang Sun: This quarter along, we shift to over 56 customers.

Kang Sun: The momentum viewed in Q2 has given us a strong tailwind in Q3 as well. Recently, we award a 1.9 million contracts from the U.S. Army's expireal prime program to develop a large full-factor 500-hour per kilo SEMEX energy density cell for electric mobility applications, in the defense sector. The recognition of this breakthrough technology that the U.S, in military opens much broader applications of our 500-wilded cattle battery that is available only from Amprius today.

Kang Sun: As we continue to expand our portfolio of offerings to meet a greater range of user cases.

Kang Sun: We expect a significant more traction with customers. We have a developer to contract the manufacturing capacities that support the annuity over 10 million pouch battery cells and 125 million cylindrical cells for our cycle of batteries. We are also expanding our free amount of production capacity for same-sex battery production, and finalizing our design process, while we take our factory in Colorado.

Kang Sun: We have developed concrete manufacturing capacities that support over 10 million pouch battery cells and 125 million cylindrical cells for our cycle batteries. We are also expanding our Fremont production capacity for semi-expansive production and finalizing our design process for our gigawatt hour factory in Colorado. Looking ahead, we have several upcoming milestones in the second half of the year that align with our main priority. We expect to fully optimize our Cenex production process and the ramp-up of production to up to two megawatt hours, one week ending the year at our Fremont facility.

Kang Sun: We expect a significant and more traction with customers.

Kang Sun: We have developed concrete manufacturing capacities that support annually over 10 million pouch battery cells.

Speaker Change: and the 125th Muning, San Diego sells for our cycle batteries.

Speaker Change: We are also expanding our Fremont production capacity for semi-expansive production and finalizing our design process for our gigawatt-hour factory in Colorado.

Kang Sun: Look ahead; we have several upcoming milestones in the second half of the year that align with our main priorities. We expect to fully optimize our CNX production process and the run-pop of production to up to two megawatt-hour, long-rate, heavyweighting the year at our three-month facility. This will represent a ten-fold increase in our production levels that we had the heavyweight in 2023, and it gave us additional capacity coming online through 2025. We intend to use this expand capacity to continue growing our new customer order book as well as move existing strategic customers down the technical to commercial meditation process for the same X product.

Kang Sun: Look ahead, we have several upcoming milestones in the second half of the year that aligns with our main priorities.

Speaker Change: We expect to fully optimize our Cenex production process.

Speaker Change: and the ramphop of production to up to 2mph, long wait, take a date in the year at our famous facility.

Kang Sun: This will represent a tenfold increase in our production levels that we had exited in 2023 and give us additional capacity coming online through 2025. We intend to use this expanded capacity to continue growing our new customer order book, as well as move existing strategic customers down the technical to commercial validation process for the CYMAX product. We're looking forward to bringing additional youth, customer segments, and expanding applications with our current customers as we leverage our unmatched commercially available performance and hundreds of Megawatt Hours of cycle production capacity through our contract and manufacturing partnership that are in place today. We also expect to finalize the design plan and the permitting for our Brighton, Colorado facility, which will include PSYCORP as the first line.

Speaker Change: This will represent a 10-fold increase in our production levels that we had exit in 2023.

Sandra Wallach: With that, I will now turn the call over to our CFO, Sandra Wallach, review our financial results for the quarter. 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 community of previously discussed, our total revenue is a combination of our main revenue streams, product revenue, development services, and grant revenue. This quarter, all 3.3 million, came from our product revenue.

Speaker Change: and the gave us additional capacity coming on land from 2025.

Speaker Change: We intend to use this expense capacity to continue growing our new customer order book as well as more existing strategic customers on the technical to commercial meditation process for the same next product.

Kang Sun: We're looking forward to green additional new customer segments and the expanding applications with our current customers as we leverage our unmatched commercially available performance and hundreds of megawatt-hour cycle production capacity through our concrete and manufacturing partnership that are in place today. We also expect to finalize the design plan and the permitting for our Brighton, Colorado facility, which will include cycle as the first line. We will deliver the 100-unpower e-wave form factor sale to the UFADC as part of our grand program in coming weeks. This will make a major milestone and a practical step for empires as we move into the e-wave market.

Speaker Change: We're looking forward to bring a decent or youth transformer segment and the expanding applications with our current customers as we leverage our unmatched commercially available performance and hundreds.

Sandra Wallach: As we've discussed in prior quarters, our development services revenue comes from development programs that are non-mecorning in nature. On a sequential quarter-over-quarter basis, our product revenue increased 1 million or 43%. And compared to prior year, revenue increased 1.7 million or 105%. These increases were driven by shipments to 56 customers in the quarter. Although our product revenue remains largely driven by customer purchase orders that can arise at uneven times throughout the year, we have shown consistent new customer growth and diversification in recent quarters.

Speaker Change: of Megua Hour cycle production capacity to our concrete and manufacturing partnership that are in place today.

Speaker Change: We also expect to finalize the design plan and the permitting for our Brighton-Colorado facility, which will include SciCorp as the first line.

Kang Sun: We will deliver the 100-amp-hour EV form factor cell to the USADC as part of our grant program in the coming weeks. This will be a major milestone and a practical step for Amprius as we move into the EV market. We continue to bring new and innovative products to the market that push the boundaries of what is possible for our industry. As part of this, we look forward to commercializing our 500-watt per kilo CYMAX cells later this year.

Speaker Change: We will deliver the 100-unpowered EV form factor cell to the USAIDC as a part of our grant program in coming weeks.

Speaker Change: This will make a major milestone and a practical step for Amprius as we move into the EV market.

Sandra Wallach: As Kang mentioned, 24 of the 56 customers this quarter were new customers. Also, 3 customers this quarter represented greater than 10% of revenue compared with 3 in Q1 2024 and 5 in the same period last year. Going forward, we will continue adding to our customer mix to diversify our revenue streams and provide more reliable product output as we get to a position of scale.

Kang Sun: We continue to bring the market new and the innovative products that push the boundaries of what is possible for our industry. As part of this, we look forward to commercializing our 500-watt per kilo SemEx sales later this year. We believe that the opportunity in front of empires is tremendous. We have what we believe are the best performing commercial battery in the industry. We have added hundreds of megawatt-hours production capacity available to us. We have a strong customer portfolio and the pipeline. As we have demonstrated, we will execute the plan and deliver the results.

Speaker Change: We continue to bring the market new and innovative products that push the boundaries of what is possible for our industry.

Speaker Change: As part of this, we look forward to commercializing our 500-watt potato SEMEX cells later this year. Thank you.

Kang Sun: We believe that the opportunity in front of Amprius is tremendous. We have what we believe are the best performing commercial batteries in the industry. We have hundreds of megawatt hours of production capacity available to us. We have a strong customer portfolio and pipeline.

Speaker Change: We believe that the opportunity in front of MPs is tremendous.

Speaker Change: We have what we believe are the best performing commercial batteries in the industry.

Speaker Change: We have added hundreds of megalo hours production capacity available to us.

Speaker Change: We have a strong customer base.

Kang Sun: As we have demonstrated, we will execute the plan and deliver the result. We look forward to carrying the momentum from the first half of the year into the rest of, of 2024 and delivering what we have planned and promised, over the next few weeks, will also be attending several industrial and financial conferences, will be participating in the UBS Energy Transition course series on August 14, the leading industry tech robotic, and the Cleantech Conference on August 19 and 20, and the Gatorad Conference, on September 4th, the H3Wirelight Conference on September 9th and 10th.

Speaker Change: for the folio and the pipeline.

Speaker Change: As we have it in the street, we will execute the plan and deliver the result.

Kang Sun: We look forward to carrying the momentum from the first half of the year into the rest of 2024 and delivering what we have planned and promised.

Speaker Change: We look forward to carrying the momentum from the first half of the year into the rest of 2024 and delivering what we have planned and promised.

Kang Sun: Over the next few weeks, we will also be attending several industries and financial conferences. We will be participating in the UBS Energy Transition Cost Series on August 14th. The leading industrial tech, robotics, and the Clean Tech Conference August 19 and the 20th. The Gateway Conference of September 4th, the H.R.Y. White conference of September 9th and 10th. The Ohanheimer Sustainability Summit of September 24th. We look forward to speaking with many of you at a base event and over the coming days.

Sandra Wallach: Now on to our operating expense management. Our operating expenses for the second quarter were $6.4 million, and increased to $0.5 million or 9% compared with Q1 2024, and a decrease of $0.7 million or 9% from the prior year period. The quarter of a quarter increase was driven by a G&A stock-based compensation. The year-over-year decrease is primarily attributable to reduction since G&A costs that were offset by investment in R&D and sales. Our GAT net loss for the second quarter was $12.5 million or a net loss of $0.13 per share, with $97 million weighted average number of shares outstanding.

Speaker Change: Overleast few weeks.

Speaker Change: We will also be attending several industrial and financial conferences.

Speaker Change: We'll be participating in the UBS Energy Transition course series on August 14th.

Speaker Change: The Leading Industry Tech Robotics and Cleantech Conference on August 19 and 20.

Speaker Change: The Gatorade Conference.

Speaker Change: September 4th

Speaker Change: The H.V. Wainwright Conference on September 9th and 10th.

Kang Sun: The Oppenheimer Sustainability Summit on September 24. We look forward to speaking with many of you at this event and in the coming days. Thank you for your continued support of Amprius Technology. With that, I will turn it back to the operator for Q&A.

Speaker Change: The Oppenheimer Sustainability Summit on September 24th.

Sandra Wallach: In Q1 2024, net loss was a negative $0.11 per share with $90 million weighted average number of shares outstanding. In Q2 2023, net loss was also negative $11 per share, with $85.2 million weighted average number of shares outstanding. As of June 30th, 2024, there were 88 full-time employees up from 81 in the first quarter and 72 in the prior year's same period, with those employees primarily based in our Fremont California location. Our share-based compensation for the second quarter was $1.9 million compared to $1.2 million in Q1 and $0.9 million in the prior year period.

Speaker Change: We look forward to speaking with many of you at these events.

Kang Sun: Thank you for your continued support of Amprius Tech knowledge with that.

Speaker Change: and the over the coming days.

Speaker Change: Thank you for your continued support of Amprius Technology.

Operator: I will turn it back to the office for QA. Thank you.

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

Operator: Thank you. The floor is now open for questions. If you do have a question, you may press Star 1 on your telephone keypad at this time. The company requests that each participant limit their comment to one question and one follow-up question. Again, ladies and gentlemen, it's Star 1 to ask a question. It's 1 to relieve yourself from the queue. Our first question comes from Colin Rusch from Oppenheimer. Go ahead.

Operator: The floor is now open for questions. If you do have a question, you may press star one on your telephone keypad at this time. The company requested each participant limit their comment to one question and one follow-up question. Again, ladies and gentlemen, it's star one to ask a question.

Speaker Change: Thank you. The floor is now open for questions. If you do have a question, you may press Star 1 on your telephone keypad at this time.

Speaker Change: The company requests that each participant limit their comment to one question and one follow-up question. Again, ladies and gentlemen, it's star one to ask a question. It's one to relieve yourself from the queue. Our first question comes from Colin Rusch from Oppenheimer. Go ahead.

Operator: It's one to relieve yourself from the queue.

Colin Rusch: Our first question comes from Colin, Rush from Oppenheimer. Go ahead. Thanks so much, guys. You know, you've got an impressive customer list, and it continues to grow. You know, as you brought on the potential cycle capacity, can you talk a little bit about the design cycles and the cycle times for when we might start seeing some of those customers start to drive more significant volumes?

Colin Rusch: Thanks so much, guys. You know, you've got an impressive customer list, and it continues to grow, you know, as you have brought on the potential cycle capacity. Can you talk a little bit about the design cycles and the cycle times, you know, for when we might start seeing some of those customers start to drive more significant volume?

Colin Rusch: Thanks so much, guys. You know, you've got an impressive customer list and it continues to grow, you know, as you have brought on.

Colin Rusch: the potential cycle or capacity. Can you talk a little bit about the design cycles and the cycle times for when we might start seeing some of those customers start to drive more significant volumes?

Kang Sun: Yeah, Colin, we introduced the cycle already this year in January 2024. So the customer needs to go through the codification. Two subs codification. The first is the product codification. There's a normally takes 9 to 12 months. So, after that, today's production codification. We already have a customer that started the second stage of the codification.

Kang Sun: Colin, we introduced the PsyCorps early this year in January 2024. So the customer needs to go through the qualification process. There are two steps of qualification. The first is product qualification. That normally takes nine to 12 months. After that, there is production qualification. We already have a customer starting the second stage of the qualification. In September, we will have a customer come to our manufacturing site to look at our manufacturing facilities. So normally, this takes nine to 18 months; it depends on the size and the complexity of the project.

Sandra Wallach: We have also closed the second tender offer that allowed cashless exercise of the private warrants, which resulted in the extinguishment of $15.6 million of the $15.9 million total outstanding in exchange for the issuance of 3.1 million shares of common stock. In total, more than 60% of the original warrants are no longer outstanding.

Speaker Change: Colin, we introduced the SciCore early this year, in January 2024.

Colin Rusch: So the customer needs to go through the qualification, the two fairs qualification, the first thing, the poor out of the qualification, there's a normal he takes in nine to twelve months.

Colin Rusch: So after that, there is a production qualification, we already have a customer.

Kang Sun: In September, we will have customers come to our manufacturing site to look at our manufacturing facilities. So normally this is a take some 9 to 18 months; depends on the size and the complexity of the project.

Speaker Change: Start of the Seconds.

Speaker Change: Stage of the courtification in September, we will have customer come to our manufacturing site to look at our manufacturing facilities. So, no money that he would take from none to 18 months depends on.

Speaker Change: and the size and the complexity of the project.

Colin Rusch: Great.

Colin Rusch: Great. And then, yeah, as you look at the ramp-up in Fremont, can you talk a little bit about any sort of surprises that you're running into as you, you know, start getting a little bit more into the meat of that ramp-up?

Kang Sun: And then, yeah, as you look at the ramp up and in three months, can you talk a little bit about any sort of surprises that you're running into as you, you know, start getting a little bit more into the meat of that ramp up. Yeah, three months. We've qualified the three months. The first, the most important thing is to grow the silicon on the work. That's the same ex products. We already qualified the central terms to for silicon. And then none of our growth. That's the stable we have it. But the entire manufacturing process needs to be optimized to reach the nameplate capacity.

Speaker Change: Great. And then as you look at the ramp up in Fremont, can you talk a little bit about any sort of surprises that you're running into as you start getting a little bit more into the meat of that ramp up.

Sandra Wallach: Turning now to the balance sheet, we exited the second quarter with $46.4 million in net cash and no debt. Compared to Q1, we recorded a net increase of $7.4 million in cash. Key drivers of our cash activity for the quarter were $17 million of cash inflow added with $14.2 million netted from the cash tender offer and $2.8 million of cash inflow added primarily through the usage of our ATM. $8 million used in operating cash flow, we continue to remain lean with a 2 to 2.5 million run rate per month, excluding transaction-related costs, and $1.6 million used to continue build out of our expanded 2-megawatt production line in free month, and move our Brighton, Colorado facility forward. Considering our business achievements and ongoing projects, we believe we are efficiently using capital to drive Amprius forward.

Kang Sun: At Fremont, we qualified at the Fremont, the first, and most important thing is to grow the silica nanowire. And that's the FAMEX. Poor dog.

Speaker Change: At Fremont, we qualify that at Fremont, the first, the most important thing is to grow the silicon underwater. That's the FedEx.

Kang Sun: We already qualified the central thermos tool for silicon nanowire growth, that's the stable we have, but the entire manufacturing process needs to be optimized to reach the name plague capacity. So the next few months will be the time for us to develop and optimize those processes. So at the end of the year, we will have. This is our plan; at the end of the year, we should have that facility in full production.

Speaker Change: products. We already qualified the central thermos tool for silicon nanowire growth. That's a step we have.

Speaker Change: But the entire manufacturing process needs to be optimized.

Kang Sun: So we next few months. We'll be the time for us to develop and optimize those processes. So the end of the year will have. This is our plan.

Speaker Change: to reach the main plague of testing so we in the next few months.

Speaker Change: will be the time for us to develop and optimize those processes. At the end of the year, we will have...

Colin Rusch: At the end of the year, we should have that facility in full production. Thanks so much, guys.

Speaker Change: This is our plan, at the end of the year we should have that facility in full production.

Colin Rusch: Thanks so much, guys. I'll take it offline.

Kang Sun: We'll take it offline. Thank you.

Speaker Change: Thanks so much, guys. I'll take it offline.

Operator: Thank you. And the next question comes from Chip Moore from Rothko. Go ahead, Chip.

Chip Moore: And the next question comes from Chip. More from Ross. Go ahead, Chip. Thank you. Hey, everybody. Thanks for taking the question.

Speaker Change: Thank you, and the next question comes from Chip Moore from Roth. Go ahead, Chip.

Timothy Moore: I wanted to ask about the 7.6 million in new bookings that you mentioned. Is that all CIMAX, and how should we think about the timeline on those orders?

Kang Sun: I wanted to ask about the, I think of a 7.6 million in new bookings that you, that you mentioned. Is that, is that all Simax? And how should we think about the timeline on those orders? Yeah, that's across, that's across both Simax and Saikor. And most of those are for the upcoming quarters. Got it. So most of that in the back at the years as a fair assumption. Right, with the exception of us and large purchase orders that we got from out to air bus, which include committing capacity through 2025. But I would say the majority of it is for the next couple of quarters, along with the backlogs that we had coming into the quarter.

Chip Moore: Thank you. Hey everybody, thanks for taking the question. I wanted to ask about the, I think it was 7.6 million in new bookings that you mentioned. Is that all CIMAX and how should we think about timeline on those orders?

Sandra Wallach: The first line will be for Sci-core manufacturing. This allows us to use conventional off-the-shelf processes, which will help us provide a high-confidence schedule and cost. The total facility will have room to accommodate three to five gigawatts of capacity to support both Synex and Sci-core production. The construction scope and schedule for the facility will be determined based on the final design and the availability and timing of funding.

Kang Sun: That's across both Sinax and Souther.

Kang Sun: That's across both Synax and Sycorps, and most of those are for the upcoming quarters.

Speaker Change: That's across both Sinax and SICOR, and most of those are for the upcoming quarters.

Sandra Wallach: In addition, we're paying close attention to the larger industry dynamics. Changes in demand, supply, battery cost structure, government incentives, trade tariffs, and other considerations would also influence our decision. To support our strategic plan, we are regularly evaluating our capital resources including sources of funding that provide the optimal cost of capital for our current production needs. These sources include both equity issuances, such as sales under our ATM or warrant exercises, and non-delutive sources such as grants, loans, and incentives.

Timothy Moore: Got it. So most of that in the back half of the year is a fair assumption.

Speaker Change: Got it. So most of that in the back half of the year is a fair assumption.

Kang Sun: Right, with the exception of some large purchase orders that we got from Alto Airbus, which include committing capacity through 2025, but I would say the majority of it is for the next couple of quarters, along with the backlog that we had coming into the quarter.

Speaker Change: Right with the exception of us and large purchasers that we got from.

Speaker Change: Alta Airbus, which include committing capacity through 2025, but I would say the majority of it is for the next couple of quarters, along with the backlog that we had coming into the quarter.

Chip Moore: Yeah, okay, that's helpful. Thanks, Sandra.

Timothy Moore: Got it. Okay, that's helpful. Thanks. Thanks, Sandra.

Kang Sun: And then maybe just my follow-up, but you mentioned maybe some factors that might impact Colorado. I think it was maybe scope and schedule, just any more detail there on how you're thinking about things right now. And, you know, what should my contemplate is some key swing factors? There are many factors; you know, the last 12 months, the better industry has changed significantly. The supply demand, the government policies, there are many possible factors that could influence our design and the influence how we operate at the factory. So we need to wait for a couple. We have not stopped moving forward.

Timothy Moore: And then maybe just my follow up. You mentioned maybe some factors that might impact Colorado. I think it was maybe scope and schedule, just any more detail there on how you're thinking about things right now and, you know, what you might contemplate as some key swing factors.

Speaker Change: Got it. Okay, that's helpful. Thanks, Sandra. And then maybe just my follow-up, you mentioned maybe some factors that might impact Colorado. I think it was maybe scope and schedule. Just any more detail there on how you're thinking about things right now and, you know, what you might contemplate as some key swing factors.

Sandra Wallach: That concludes my financial discussion, and I will now pass the call back to Kenning. Thanks, Center.

Kang Sun: As we look ahead, our strategy at the MPS is we may entrenched our top priorities in the next generation battery, growing our customer base, and scaling our manufacturing capacities. We have a repeat density density to unmatch the breakthrough battery performance in our industry, commending a firm technology leap with our cell combination of safety, energy, power, charging time, and the temperature performance. Our batteries are uniquely positioned for electrical mobility market, and they are globally available right now.

Kang Sun: Jeff, there are many factors. You know, in the last 12 months, the battery industry has changed significantly. The supply, the demand, the government policies, there are many possible factors that could influence our design and influence how we operate at the factory, so on.

Speaker Change: Chief, there are many factors, you know the last 12 months.

Speaker Change: The battery industry has changed significantly. The supply, the demand, the government policies, there are many possible factors that could influence

Speaker Change: influence our design and influence how we operate at the factory.

Kang Sun: We have not stopped moving forward. We just have not put all the effort into accelerating the process. We finished 60% of the design. We are working on 90% now. We have finished most of the regulatory issues. We are moving forward, but with caution, not just us, but the entire industry. Now we pay attention to the supply and demand and the cost of operation and government incentives today or government incentives in the future.

Speaker Change: So...

Speaker Change: We have not stopped moving forward. We just have not put all the effort in accelerating the process.

Kang Sun: We just have not put all the efforts and salaries of the process. Now, we finished the 60% design. We are working on 90% design. We finished most of the regulatory issues. We are moving forward, but with caution. You know, not just us, the entire industry. Now we pay attention to the supply and the demand and the cost of operation and the government incentives today or government incentives in the future. Understood. Yeah. We'll see what happens right in November as well. Okay. Thanks very much.

Kang Sun: Our breakthrough technology are already validated by our growing bulk of customers. This quarter alone we shipped to over 56 customers, as we continue to expand our portfolio of offering to meet a greater range of user choices. We expect a significant more traction with customers. We have a developer to contract the manufacturing capacities that support the annuity over 10 million pouch battery cells and 125 million cylindrical cells for our cycle of batteries.

Speaker Change: We finished 60% of the design. We are working on 90% design. We finished most of the regulatory issues.

Speaker Change: We are moving forward with caution, not just fast, the entire industry.

Speaker Change: Now we pay attention to the supply and the demand and the cost of operation and the government incentives today or government incentives in the future.

Timothy Moore: Understood. Yeah. We'll see what happens right in November as well. Okay. Thanks very much.

Speaker Change: Understood. Yeah, we'll see what happens right in November as well. Okay, thanks very much.

Kang Sun: We are also expanding our free amount of production capacity for same-sex battery production, and finalizing our design process, while we take our factory in Colorado.

Jeff Grant: Thank you. And our next question comes from Jeff Grant from Alliance Global Partners.

Operator: Thank you. And our next question comes from Jeff Grampp from Alliance Global Partners. Go ahead, Jeff.

Speaker Change: Thank you. And our next question comes from Jeff Grampp from Alliance Global Partners. Go ahead, Jeff.

Jeff Grant: Go ahead, Jeff. After everyone, one of the touch on the customer count was down a bit sequentially, but obviously Q1 was a super strong quarter for you guys from a customer count perspective. I'm wondering how you guys are interpreting that. Do you see customers order and then maybe take a few months or a couple quarters to kind of assess and then potentially come back where some of these maybe anticipated one off. So perhaps that Q1 wasn't flated. Just wondering how you guys are interpreting that customer count change from Q1 to Q2 and how you stay going forward.

Jeffrey Grampp: Afternoon, everyone. One of the things I touched on was the customer count was down a bit sequentially, but obviously, Q1 was a super strong quarter for you guys from a customer account perspective. I'm wondering how you guys are interpreting that. Do you see customers ordering and then maybe taking a few months or a couple quarters to kind of assess and then potentially come back? Were some of these maybe anticipated one-offs, so perhaps that Q1 was inflated? Just wondering how you guys are interpreting that customer account change from Q1 to Q2 and how you see it going forward. The customer...

Jeffrey Grampp: Afternoon, everyone.

Kang Sun: Look ahead, we have several upcoming milestones in the second half of the year that align with our main priorities. We expect to fully optimize our CNX production process and the run-pop of production to up to two megawatt-hour, long-rate, heavyweighting the year at our three-month facility. This will represent a ten-fold increase in our production levels that we had the heavyweight in 2023, and it gave us additional capacity coming online through 2025. We intend to use this expand capacity to continue growing our new customer order book as well as move existing strategic customers down the technical to commercial meditation process for the same X product.

Jeffrey Grampp: One of the touch on the customer account was down a bit sequentially, but obviously Q1 was a super strong quarter for you guys from a customer account perspective. I'm wondering how you guys are interpreting that. Do you see...

Kang Sun: The customer account changes do not mean we have fewer customers, Jeff, because the former customers acquired a sample; they took time to evaluate the sample. During this period of time, we did a shift to them of additional samples, so they are not accounted for in our shipment.

Speaker Change: customers order and then maybe take a few months or a couple quarters to kind of assess and then potentially come back where some of these

Jeffrey Grampp: I understand. Okay, thank you.

Speaker Change: Maybe anticipated one off, so perhaps that that Q1 wasn't flated, just wondering how you guys are interpreting that customer count change from Q1 to Q2 and how you stay going forward.

Kang Sun: The customer, Kang Stangit, does not mean we have less customer, Jeff, because the summer customer, they'll acquire the fumble, they take time to, to, that is the fumble. During this period of the time, we did the shifts then, additional fumbles, so they are not accounted for our shipments.

Speaker Change: The customer account changes does not mean we have less customers. Jeff, because of the former customer, they acquired a sample. They take time to evaluate the sample. During this period of time, we didn't ship to them additional samples, so they are not accounted for our shipment.

Jeff Grant: Understood. Okay, thank you.

Jeffrey Grampp: And for my follow-up question, I'm curious about the customer receptivity with Psycore being obviously very strong. You have the third parties that obviously have a lot of capacity, but at the same time, you guys are focused within Colorado on Psycore. I'm curious, do you expect customers will only order from a U.S.-domiciled Psycore facility, or would that kind of be a natural transition as you stand that facility up, whereby you're fulfilling that through your tolling partners, and then, over time, would you transition that once Colorado's online? How important is that for customers to have that U.S. supply chain in place? Moore's for the car.

Kang Sun: And for my follow-up, I'm curious, the customer receptivity with Cycord is obviously very strong. You have the third parties that obviously have a lot of capacity, but at the same time you guys are focused within Colorado on Cycord. I'm curious, do you expect customers will only order from a U.S.? domicile cycle facility, or would that kind be a natural transition, as you stand that facility up, whereby you're fulfilling that through your tolling partners, and then over time would transition that once Colorado's online. What is, how important is that for customers having that U.S. supply chain in place?

Speaker Change: Understood. Okay, thank you. And for my follow-up, I'm curious, the customer receptivity with with SICOR is obviously very strong. You have the third parties that obviously have a lot of capacity, but at the same time you guys are focused within Colorado on SICOR. I'm curious, do you expect customers

Speaker Change: Will only order from a U.S. domiciled SICOR facility or would that kind of be a natural transition as you stand that facility up whereby you're fulfilling that through your tolling partners and then over time would transition that once Colorado's online? How important is that for customers having that U.S. supply chain in place?

Kang Sun: We also expect to finalize the design plan and the permitting for our Brighton Colorado facility, which will include cycle as the first line. We will deliver the 100-unpower e-wave form factor sale to the UFADC as part of our grand program in coming weeks. This will make a major milestone and a practical step for empires as we move into the e-wave market.

Kang Sun: And most of the customers, only two parameters: quantity and cost. Another one is performance. You know, we have leading performance batteries. But they expect us, our factory, to deliver quality and affordable cost. So for now, I would say the majority of the customers really don't pay attention to where the batteries are made. Of course, we have some special applications that are required when making batteries in the United States.

Kang Sun: Most of the customers are only two for admittance, quality, and the cost. Another one is the performance. We have leading performance batteries, but they expect us, our factory duty, quality, and the cost. So for now, I want to say, majority of the customers really don't pay attention, why the battery are made it. Of course, we have some special applications that will require. Another require will make batteries in the United States. So, we divide the significant the meta-fetching capacity there. You can see we have over 10 units, partial cell, available to us in 2024. We have over 100 units, the integral cell meta-fetching capacity available to us in 2024.

Speaker Change: The most for customer are only two poor amitapses.

Kang Sun: Quality and cost. Another one is performance. We have leading performance batteries.

Speaker Change: by the VEG Staghouse, our factory did give a quality and a call on the...

Speaker Change: a fathomable cost.

Kang Sun: So, for now, I would say the majority of customers really don't pay attention to where the batteries are made. Of course, we have some special applications that are required when making batteries in the United States.

Kang Sun: We continue to bring the market new and the innovative products that push the boundaries of what is possible for our industry. As part of this, we look forward to commercializing our 500-watt per kilo-SemEx sales later this year. We believe that the opportunity in front of empires is tremendous. We have what we believe are the best performing commercial battery in the industry. We have added hundreds of megawatt-hours production capacity available to us. We have a strong customer portfolio and the pipeline. As we have demonstrated, we will execute the plan and deliver the results.

Kang Sun: So, uh... We developed a significant manufacturing capacity there. As you can see, we will have over 10 million partial cells available to us in 2024. We will have over 100 million cylindrical cell manufacturing capacity available to us in 2024. So the manufacturing capacity for SiCore is no longer an issue for us. We just need to sell more. And at the same time, we do have a customer. I hope you know we can produce it domestically. So we are working on that. That's Colorado. In addition to that, you know, we are also planning to have more manufacturing partners in other regions, for example, in Europe.

Speaker Change: So, uh...

Speaker Change: We developed a significant manufacturing capacity there. You can see we have over 10 million partial cells available to us in 2024. We have over 100 million cylindrical cell manufacturing capacity available to us in 2024.

Kang Sun: So the meta-fetching for Cycord is no longer an issue for us. We just need to sell more. And at the same time, we do have a customer hope we can produce domestically. So, we are working on that. That's the Colorado. In addition to that.

Speaker Change: So, the manufacturing for a fire core is a little longer, the manufacturing capacity for a fire core is a little longer, an issue for us.

Speaker Change: We just need to sell more. At the same time, we do have a customer.

Hope: Hope, you know, we can produce domesticity.

Speaker Change: So...

Kang Sun: We look forward to carrying the momentum from the first half of the year into the rest of 2024 and delivering what we have planned and promised.

Kang Sun: We are also planning to have more manufacturing partners in the region, for example, in Europe.

Kang Sun: We are working on that. That's the Colorado. In addition to that, you know, we are also planning to have more manufacturing partners in other regions, for example, in Europe .

Jeff Grant: Okay, great details. Can't thank you guys for the time.

Jeffrey Grampp: Okay, great details, Kang. Thank you guys for the time.

Kang Sun: Over the next few weeks, we will also be attending several industries and financial conferences. We will be participating in the UBS Energy Transition Cost Series on August 14th. The leading industrial tech, Robotics, and the Clean Tech Conference August 19 and the 20th. The Gateway Conference of September 4th, the H.R.Y. White Conference of September 9th and 10th. The Ohanheimer Sustainability Summit of September 24th.

Speaker Change: Okay, great details, Kang. Thank you guys for the time.

Donovan Schafer: Thank you. And our next question comes from Donovan Shaffer from Northland Capital.

Operator: Thank you. And our next question comes from Donovan Schafer from Northland Capital. Go ahead, Donovan.

Speaker Change: Thank you. And our next question comes from Donovan Schafer from Northland Capital. Go ahead, Donovan.

Donovan Schafer: Go ahead, Donovan. Hey, guys. Thanks for taking the questions. So, first I want to ask, you know, on the letter to shareholders, you mentioned that 50% of the Q2 deliveries or revenue is from outside the U.S. Is that a mix that we would expect to continue going forward, or was that kind of an outlier for the quarter?

Donovan Schafer: Hey guys, thanks for taking the questions. So first, I want to ask you, you know, in the letter to shareholders, you mentioned that 50% of the Q2 deliveries or revenue was from outside the U.S. Is that a mix that we would expect to continue going forward, or was that kind of an outlier for the quarter?

Donovan Schafer: Hey guys, thanks for taking the questions, so first I want to ask, you know, on the letter to share holders, you mentioned that 50% of the Q2 deliveries are revenue is from outside the U.S.

Speaker Change: is that a mix that we would expect to continue going forward or was that kind of an outlier for the quarter.

Kang Sun: So, Donovan, in last year or earlier, our primary focus is the U.S. and some in Europe, such as the Airbus. So, now we want to go globally.

Kang Sun: So, Donovan... In the last year or so, our primary focus has been on the U.S. and some in Europe, such as Airbus. Yeah, so now we want to go globally. Okay, we want to expand our Marquis Ridge, and not just the US, not just Europe, we're including Asia in our Marquis engagement.

Solomon: You're a Solomon.

Kang Sun: We look forward to speaking with many of you at a base event and over the coming days. Thank you for your continued support of Amprius Tech knowledge with that.

Kang Sun: In last year or earlier, I will primary focus at the U.S. and if I'm in Europe, such as Airbus.

Sandra Wallach: Okay, we're on the spot. We expand our marquee reach, and that means not just the US, not just Europe; we're including Asia in our marquee engagement. Okay, and then with the ATM, if you can just give us an update whether there has been any usage of the ATM so far into the third quarter.

Speaker Change: Yeah, so now we want a good good boy, okay, we're on the...

Kang Sun: Bye!

Operator: I will turn it back to the office for QA. Thank you.

Donovan Schafer: Okay, um, and then on the ATM, if you can just give us an update on whether there has been any usage of the ATM so far in the third quarter.

Speaker Change: Okay, and then...

Speaker Change: With the ATM, if you can just give us an update whether there has been any usage of the ATM so far into the third quarter?

Sandra Wallach: Yeah, so we have not been active on the ATM in the third quarter.

Colin Rusch: Our first question comes from Colin, Rush from Oppenheimer. Go ahead. Thanks so much, guys. You know, you've got an impressive customer list and it continues to grow. You know, as you brought on the potential cycle capacity, can you talk a little bit about the design cycles and the cycle times for when we might start seeing some of those customers start to drive more significant volumes? Yeah, Colin, we introduced the cycle already this year in January 2024.

Sandra Wallach: yeah so we we have not been active on the ATM in third quarter

Donovan Schafer: Okay. And then just one last one to squeeze in is for the milestones for the rest of the year. When you say you plan to finalize design drawings for the Brighton facility by the year end, does that mean, you know, does it follow the same goal, or can we have the expectation that there'd be a cost estimate by year end as well, or could that take longer?

Donovan Schafer: Okay, and then just one last one to squeeze in is for the milestones for the rest of the year. When you say you plan to finalize design drawings for the Brighton facility by the year, does that mean, you know, does it follow that the same goal or that we can have the expectation that there be a cost estimate by year end as well, or could that take longer? By year, we would have more accurate cost estimation. We do have cost estimation today, but based on 60% design. We like to finish this design before your end and have the cost, cost estimate, and more accurate cost estimate.

Donovan Schafer: Okay.

Donovan Schafer: And then just one last one to squeeze in is for the milestones for the rest of the year.

Donovan Schafer: When you say you plan to finalize design drawings for the Brighton facility by the year end, does that mean, you know, does it follow the same goal, or that we can have the expectation that there'd be a cost estimate by year end as well, or could that take longer?

Colin Rusch: So the customer needs to go through the codification. Two subs codification. The first is the product codification. There's a normally takes 9 to 12 months. So after that, today's production codification. We already have a customer that started the second stage of the codification. In September, we will have customers come to our manufacturing site to look at our manufacturing facilities. So normally this is a take some 9 to 18 months depends on the size and the complexity of the project.

Donovan Schafer: But by year-end, we would have more accurate cost estimation. We do have cost estimation today, but based on 60% design, we would like to finish this design before year-end and have the cost Cosseth Neat, and more I agree with the Cosseth Neat, and you know that you care about the construction market, and the materials market, the raw materials for construction, all those things have been very dynamic. So we update our information almost on a monthly basis. So before the end of the year, we should have regulatory issues resolved. And we should have a design finished. We should have a construction cost estimate, and Edward Sheehan.

Donovan Schafer: But by year-end, we would have more accurate cost estimation. We do have cost estimation today, but based on 60% design, we like to finish this design before year-end and have the cost estimate.

Kang Sun: And you know, the entire construction marquee and the materials, the raw materials for construction, all those things have been very dynamic. Okay, so we update our information almost on a monthly basis. So, before the end of the year, we should have regulatory issues resolved, and though we should have a design finished, we should have a construction cost estimate.

Donovan Schafer: cost estimates and more accurately the cost estimates and you know the entire construction market

Donovan Schafer: Um...

Kang Sun: and the materials market, the raw materials for construction, all those things have been very dynamic.

Kang Sun: Great. And then yeah, as you look at the ramp up and in three months, can you talk a little bit about any sort of surprises that you're running into as you, as you, you know, start getting a little bit more into the meat of that ramp up. Yeah, three months. We've qualified the three months. The first, the most important thing is to grow the silicon on the work. That's the same ex products.

Speaker Change: Okay, so we update our information almost on a monthly basis.

Donovan Schafer: So, before end of the year, we should have regulatory issues resolved.

Speaker Change: and we should have a design finish, we should have a construction of course estimate.

Kang Sun: And would you expect to share the cost estimate publicly at that time?

Kang Sun: And then would you share the cost estimate publicly at that time? We'll see, you know, how I created the data.

Speaker Change: And would you expect to share the cost estimate publicly at that time?

Donovan Schafer: We will see how I create the data. Thank you.

Kang Sun: We already qualified the central terms to for silicon. And then none of our growth. That's the stable we have it. But the entire manufacturing process needs to be optimized to reach the name plate capacity. So we next few months. We'll be the time for us to develop and optimize those process. So the end of the year will have. This is our plan. At the end of the year, we should have that facility in full production. Thanks so much, guys. We'll take it offline. Thank you.

Donovan Schafer: Thank you. Yeah, I think it depends on how quickly we're going to move the facility forward. And I think that's the part that we're still evaluating. Okay. All right, that's helpful.

Sandra: Who is he and how I created the data, Sandra?

Sandra Wallach: Yeah, I think it depends on how quickly we're going to move the facility forward. And I think that's the part that we're

Edward Sheehan: Yeah I think I think it depends on how how quickly we're going to move move the facility forward and I think that's the part that we're we're still evaluating.

Donovan Schafer: Thank you. I'll take the rest. Okay.

Donovan Schafer: Thank you. I'll take the right. Okay.

Donovan Schafer: Okay. Yeah. All right. That's all. Thank you. I'll take the rest. Okay.

Ryan Pfingst: Thank you. Our next question comes from Ryan Fist from B.

Operator: Thank you. Our next question comes from Ryan Pfingst from B. Riley. Go ahead, Ryan.

Ryan Pfingst: Riley. Go ahead, Ryan. Hey, thanks for taking my questions. Just a follow up on some commentary you had earlier.

Speaker Change: Thank you. Our next question comes from Ryan Fisht from B. Reilly. Go ahead, Ryan.

Ryan Pfingst: Hey, thanks for taking my questions. Just to follow up on some commentary you had earlier, could you just tell us what some of the risks are on the policy side if we do get a change in administration in November?

Ryan Pfingst: Hey, thanks for taking my questions. Just to follow up on some commentary you had earlier. Could you just tell us what some of the risks are on the policy side if we do get a change in administration in November?

Kang Sun: Could you just tell us what some of the risks are on the policy side if we do get a change in administration in November? There won't be difficult for us to comment why. Because all those aspects, regulations, right, there's no fact at this moment. You know, for us, not just the common incentives; you know, we need to look at the market dynamics. At this moment, I'm the manufacturing capacity for our cycle product is not an issue.

Chip Moore: And the next question comes from Chip. More from Ross. Go ahead, Chip. Thank you. Hey, everybody. Thanks for taking the question.

Kang Sun: That one is difficult for us to comment on because all those are speculations, right? There is no fact at this moment.

Speaker Change: They're wine difficult for us to come and wine because all of those are the regulations. They move facts at its moment. You know, for us, not just the Carmitting San Gives.

Kang Sun: I wanted to ask about the, I think of a 7.6 million in new bookings that you, that you mentioned, is that, is that all Simax? And how should we think about timeline on those orders? Yeah, that's across, that's across both Simax and Saikor. And most of those are for the upcoming quarters. Got it. So most of that in the back at the years as a fair assumption. Right, with the exception of us and large purchase orders that we got from out to air bus, which include committing capacity through 2025. But I would say the majority of it is for the next couple of quarters, along with the backlogs that we had coming into the quarter. Yeah, okay, that's helpful. Thanks, Sandra.

Kang Sun: You know, for us, not just the government incentive. Now we need to look at, uh..., the market dynamics. At this moment, the manufacturing capacity for our cycle product is not an issue. You know, we have, from the Global Economy and Experience Forum.

Kang Sun: We need to look at the market dynamics. At this moment, the manufacturing capacity for our cycle product is not an issue.

Kang Sun: We have a tremendous manufacturing capacity behind us; at the same time, we are developing now a semi-medifacial capacity here. So the company has a product as a manufacturing capacity, you know, we have a customer base, we just need a salary to customer modification and process to grow the revenue.

Kang Sun: and we have a...

Kang Sun: tremendous manufacturing capacity behind us.

Kang Sun: At the same time, we are developing our CEMEX manufacturing capacity here. So the company has a product, has a manufacturing capacity, and we have a customer base. We just need to accelerate the customer modification process to grow the revenue.

Ryan Pfingst: Fair enough, and then understanding that EVs are a longer-term focus, but wondering if you had an update on your engagement with OEMs and if we might see your related announcements in the near term there. As we mentioned earlier, last few calls, we do have engagements with all segments of electrical mobility, including EVs, but we don't have commercial products for EV customers. However, we do have technical exchanges. Got it, thanks for those answers.

Ryan Pfingst: Fair enough. And then, understanding that EVs are a longer-term focus, but wondering if you had an update on your engagement with OEMs and if we might see a related announcement in the near term there.

Speaker Change: Fair enough, and then understanding that EVs are a longer-term focus, but wondering if you had an update on your engagement with OEMs and if we might see a related announcement in the near term there.

Kang Sun: And then maybe just my follow up, but you mentioned maybe some factors that might impact Colorado. I think it was maybe scope and schedule, just any more detail there on how you're thinking about things right now. And, you know, what should my contemplate is some key swing factors? There are many factors, you know, the last 12 months, the better industry has changed significantly. The supply demand, the government policies, there are many possible factors that could influence our design and the influence how we operate at the factory.

Kang Sun: As we mentioned earlier in the last few calls, we do have engagement with all segments of electrical mobility, including e-waste. But we don't have a commercial product for EV customers, but we do have a technical exchange.

Kang Sun: As we mentioned earlier, last few calls, we do have engagement with all segments of electrical mobility, including e-waste.

Kang Sun: But we don't have commercial products for EV customers, but we do have technical exchanges.

Ryan Pfingst: Got it. Thanks for those answers.

Amit Dayal: Thank you. And our next question comes from Amit Dayal from HC Wainwright.

Speaker Change: Got it. Thanks for those answers.

Operator: Thank you. And our next question comes from Amit Dayal of H.C. Wainwright. Your line is now open.

Amit Dayal: Thank you.

Operator: Thank you. And our next question comes from Amit Dayal from H.C. Wainwright.

Amit Dayal: Your line is now open. Thank you, Grafton, everyone. Most of my questions have been asked.

Amit Dayal: Thank you. Good afternoon, everyone.

Speaker Change: Your line is now open.

Kang Sun: So we need to wait for a couple. We have not stopped moving forward. We just have not put all the efforts and salaries of the process. Now, we finished the 60% design. We are working on 90% design. We finished the most of the regulatory issues. We are moving forward, but with caution, you know, not just us, the entire industry. Now we pay attention to the supply and the demand and the cost of operation and the government incentives today or government incentives in the future. Understood. Yeah. We'll see what happens right in November as well. Okay. Thanks very much. Thank you.

Kang Sun: Just one question around the Colorado facility: are we fully committed to building this facility out, or in the, you know, for preserving the balance sheet and capital, etc. You know, as you scale up, could you potentially, you know, both contract manufacturer, both the Cycorp and Cymax offerings, you know, while you build the market for these products? Well, we, in terms of Cycorp manufacturing capacity, we have plenty of problems and support us for next few years. Even today, this year we have 10 million; next year we will have much more capacity available to us. In better sense, there is no additional capacity needed.

Amit Dayal: Thank you. Good afternoon, everyone. Most of my questions have been asked. Just one question around the Colorado facility. Are we fully committed to, you know, building this facility out?

Amit Dayal: Most of my questions have already been asked. Just one question around the Colorado facility. Are we fully committed to, you know, building this facility out? Or are we in the process of, you know, preserving the balance sheet and, you know, capital, et cetera. You know, as you scale up, could you potentially, you know, both contract manufacture both the Psycorp and Psymax offerings while you build the market for these products?

Speaker Change: Or in the, you know, for preserving the balance sheet and, you know, capital, et cetera, you know, as you scale up, could you potentially, you know, both contract manufacture both the Psycore and Psymax offerings?

Amit Dayal: You know, while you build the market for these products

Kang Sun: Right, Amit. We, in terms of the cycle of manufacturing capacity, we have plenty, and probably can support ourselves for the next few years. Even today, this year, we have 10 million. Next year, we will have much more capacity available to us. In that sense, there is no additional capacity needed. However, we consider ourselves as a manufacturing company, and we do need to have our own manufacturing facility. Yeah, so that's why we... We are still working on the Colorado factory. As Sandra mentioned before, there are many factors that need to be considered.

Kang Sun: Right, Amit. We, in terms of cycle of manufacturing capacity, we have plenty, probably can support us for the next few years.

Kang Sun: Even today, this year we have 10 million, next year we will have much more capacity available to us.

Kang Sun: In that sense, there is no additional capacity needed.

Kang Sun: However, we consider, you know, as a manufacturing company, we do need to have our own manufacturing facility. So that's why we are still working on the Colorado factory, as Sandra mentioned before. Now, many factories we do to be considered, okay, to, how we, we will see what kind of capacity we need in Colorado, because the market has been changed, compared to two years ago. So we need to revaluate our design, our, the scale of the factory, our own factory in the United States. The manufacturing capacity for Cycorp, as I mentioned, is no longer the issue for Ampius.

Jeff Grant: And our next question comes from Jeff Grant from Alliance Global Partners. Go ahead, Jeff. After everyone, one of the touch on the customer count was down a bit sequentially, but obviously Q1 was a super strong quarter for you guys from a customer count perspective. I'm wondering how you guys are interpreting that. Do you see customers order and then maybe take a few months or a couple quarters to kind of assess and then potentially come back where some of these maybe anticipated one off. So perhaps that that Q1 wasn't flated.

Speaker Change: However, we...

Kang Sun: Kang Sun, as a manufacturing company, we do need to have our own manufacturing facility.

Speaker Change: Yeah, so that's why we...

Speaker Change: We are still working on the car rattle factory as Sandra mentioned that before now many sections need to be considered, okay, to how we will see what are kind of the why a lot of kind of capacity we need in car rattle because the market has been changed.

Kang Sun: We will see what kind of design, what kind of capacity we need in Colorado because the market has changed compared to two years ago. So we need to reevaluate our design, and the scale of our own factory in the United States. The manufacturing capacity of the cycle, as I mentioned, is no longer an issue for Amprius.

Kang Sun: Just wondering how you guys are interpreting that customer count change from Q1 to Q2 and how you stay going forward. The customer, Kang Stangit, does not mean we have less customer, Jeff, because the summer customer, they'll acquire the fumble, they take time to, to, that is the fumble. During this period of the time, we did the shifts then, additional fumbles, so they are not accounted for our shipments. Understood.

Kang Sun: compared to two years ago. So we need to re-evaluate.

Kang Sun: of our design, our scale of our own factory in the United States. The manufacturing capacity for fire core, as I mentioned, is no longer the issue for empty space.

Kang Sun: I'm just trying to get a sense, you know, when, by when you might make that call, because it gives, you know, investors a sense of, you know, how you can use a balance sheet. to progress the commercialization efforts. And that's good. We, at this moment, we're still working on the project because we need to see the market dynamics. The market changed very fast.

Amit Dayal: Understandable. I'm just trying to get a sense of when and by when you might make that call, because it will give investors a sense of, you know, how you can use a balance sheet to progress the commercialization effort.

Speaker Change: understood I'm just trying to get a sense you know when by when you might make that call because it will give you know investors a sense of you know how you can use a balance sheet you know to progress the commercialization efforts

Kang Sun: Okay, thank you. And for my follow-up, I'm curious, the customer receptivity with, with Cycord is obviously very strong. You have the third parties that obviously have a lot of capacity, but at the same time you guys are focused within Colorado on Cycord. I'm curious, do you expect customers will only order from a U.S, domicile cycle facility, or would that kind of be a natural transition, as you stand that facility up, whereby you're fulfilling that through your tolling partners, and then over time would transition that once Colorado's online.

Kang Sun: And, you know, understood, you know, understood, you know, we, at this moment, we're still working on the project because we need to see the market dynamics, the market changing very fast. I think, at the end of the year, not just the market dynamics, but also the political dynamics, will influence what we are going to do.

Kang Sun: and the school, we're working on the projects because we need to see the market there. The market changes very fast.

Kang Sun: I think at the end of the year, not just the market dynamics or the political dynamics, okay, we're influenced what are we are going to do. Okay.

Kang Sun: I think at the end of the year, not just the market dynamics, also the political dynamics will influence what we are going to do.

Amit Dayal: Okay. Yeah, that's all I have, guys. I'll take my other questions offline. Thank you.

Amit Dayal: Yeah, that's all I've got. I'll take my other questions off end. Thank you. Thanks.

Amit Dayal: Okay. Yeah, that's all I am. I'll take my other questions off. Thank you.

Kang Sun: What is, how important is that for customers having that U.S, supply chain in place? Most of the customers are only two for admittance, quality and the cost. Another one is the performance. We have leading performance batteries, but they expect us, our factory duty, quality and the cost. So for now, I want to say, majority of the customers really don't pay attention, why the battery are made it. Of course, we have some special applications that will require, another require will make batteries in the United States.

Kang Sun: At this time, this concludes our question-and-answer session. If your question was not taken, you may contact Amprius investor relations team at IR at Amprius.com.

Operator: At this time, this concludes our question and answer session. If your question was not taken, you may contact Amprius' investor relations team at ir@Amprius.com. I would now like to turn the call back over to Dr. Sun for any closing remarks.

Dr. Sun: Thank you.

Operator: At this time, this concludes our question and answer session. If your question was not taken, you may contact Amprius' investor relations team at ir at Amprius.com. I would now like to turn the call back over to Dr. Sun for any closing remarks.

Kang Sun: I would now like to turn the call back over to Dr. Sun for any closing remarks. Thanks again, everyone, for joining us today. As a reminder, you can find out more about our company. Receive additional updates and learn about upcoming events and presentations from the Investor Relations section of our website. We hope to see you at the wall of our upcoming conferences, and we'll continue to update you on the exciting progress we are making in transforming the electric mobility market. Finally, I'd like to thank our employees, partners, and the shareholders for their continued support. Thank you.

Kang Sun: Thanks again, everyone, for joining us today. As a reminder, you can find out more about our company, receive additional updates, and learn about upcoming events and presentations from the investor relations section of our website. We hope to see you at one of our upcoming conferences, and we'll continue to update you on the exciting progress we are making in transforming the electrical mobility market. Finally, I would like to thank our employees, partners, and shareholders for their continued support.

Kang Sun: Thanks again everyone for joining us today as a reminder you can find out more about our company, receive additional updates and learn about upcoming events and presentations from the investor relation section of our website.

Kang Sun: So, we divide the significant the meta-fetching capacity there. You can see we have over 10 units, partial cell, available to us in 2024. We have over 100 units, the integral cell meta-fetching capacity available to us in 2024. So the meta-fetching for Cycord is no longer a issue for us. We just need to sell more. And at the same time, we do have a customer hope we can produce domestically. So, we are working on that. That's the Colorado in addition to that.

Kang Sun: We hope to see you at one of our upcoming conferences and we'll continue to update you on the exciting progress we are making in transforming the electrical mobility market.

Sonony: Sonony, I'd like to thank our employees, partners and the shareholders for their continued support.

Operator: Thank you. Thank you for joining us today at Amprius Technology First.

Operator: Thank you for joining us today for Amprius Technology's first quarter 2023 earnings conference call.

Speaker Change: All Created

Operator: You may disconnect your lines at this time and have a wonderful day.

Chip Moore: We are also planning to have more manufacturing partners on the region, for example, in Europe. Okay, great details.

Chip Moore: Can't thank you guys for the time. Thank you.

Donovan Schafer: And our next question comes from Donovan Shaffer from Northland Capital. Go ahead, Donovan. Hey, guys. Thanks for taking the questions. So, first I want to ask, you know, on the letter to shareholders, you mentioned that 50% of the Q2 deliveries or revenue is from outside the U.S. Is that a mix that we would expect to continue going forward, or was that kind of an outlier for the quarter?

Kang Sun: So, Donovan, in last year or earlier, our primary focus is the U.S, and some in Europe, such as the Airbus. So, now we want to go globally. Okay, we're on the spot.

Sandra Wallach: We expand our marquee reach, and that means not just the US, not just Europe, we're including Asia in our marquee engagement Okay, and then with the ATM, if you can just give us an update whether there has been any usage of the ATM so far into the third quarter. Yeah, so we have not been active on the ATM in the third quarter.

Sandra Wallach: Okay, and then just one last one to squeeze in is for the milestones for the rest of the year, when you say you plan to finalize design drawings for the Brighton facility by the year and does that mean, you know, does it follow that the same goal or that we can have the expectation that there be a cost estimate by year end as well, or could that take longer? By year, we would have more accurate cost estimation, we do have cost estimation today, but based on 60% design, we like to finish this design before your end and have the cost, cost estimate, and more accurate cost estimate.

Sandra Wallach: And you know, the entire construction marquee and the materials, the raw materials for construction, all those things have been very dynamic. Okay, so we update our information almost on a monthly basis. So before end of the year, we should have regulatory issues resolved, and though we should have a design finished, we should have a construction cost estimate.

Donovan Schafer: Okay, all right, that's all. I'll take the right, that's all.

Sandra Wallach: And then would you share the cost estimate publicly at that time? We'll see, you know, how I created the data. Thank you. Yeah, I think it depends on how quickly we're going to move the facility forward. And I think that's the part that we're still evaluating. Okay. All right, that's helpful. Thank you. I'll take the right. Okay. Thank you.

Ryan Pfingst: Our next question comes from Ryan Fist from B. Riley. Go ahead, Ryan. Hey, thanks for taking my questions. Just a follow up on some commentary you had earlier.

Kang Sun: Could you just tell us what some of the risks are on the policy side if we do get a change in administration in November? There won't be difficult for us to comment why. Because all those aspects regulations, right, there's no fact at this moment. You know, for us, not just the common incentives, you know, we need to look at the market dynamics. At this moment, I'm the manufacturing capacity for our cycle product is not an issue.

Kang Sun: We have a tremendous manufacturing capacity behind us, at the same time we are developing now a semi-medifacial capacity here, so the company has a product as a manufacturing capacity, you know, we have a customer base, we just need a salary to customer modification and process to grow the revenue.

Kang Sun: Fair enough, and then understanding that EVs are a longer-term focus, but wondering if you had an update on your engagement with OEMs and if we might see your related announcements in the near term there. As we mentioned earlier, last few calls, we do have engagements with all segments of electrical mobility including EVs, but we don't have commercial products for EV customers, but we do have technical exchanges. Got it, thanks for those answers. Thank you.

Amit Dayal: And our next question comes from Amit Dayal from HC Wainwright. Your line is now open. Thank you, Grafton, everyone. Most of my questions have been asked. Just one question around the Colorado facility, are we fully committed to building this facility out or in the, you know, for preserving the balance sheet and capital, etc. You know, as you scale up, could you potentially, you know, both contract manufacturer, both the Cycorp and Cymax offerings, you know, while you build the market for these products?

Amit Dayal: Well, we, in terms of Cycorp manufacturing capacity, we have plenty of problems and support us for next few years. Even today, this year we have 10 million, next year we will have much more capacity available to us. In better sense, there is no additional capacity needed. However, we consider, you know, as a manufacturing company, we do need to have our own manufacturing facility. So that's why we, we are still working on the Colorado factory, as Sandra mentioned before.

Amit Dayal: Now, many factories we do to be considered, okay, to, how we, we will see what kind of capacity we need in Colorado, because the market has been changed, compared to two years ago. So we need to revaluate our design, our, the scale of the factory, our own factory in the United States. The manufacturing capacity for Cycorp, as I mentioned, is no longer the issue for Ampius. I'm just trying to get a sense, you know, when, by when you might make that call, because it gives, you know, investors a sense of, you know, how you can use a balance sheet, to progress the commercialization efforts.

Amit Dayal: And that's good. We, at this moment, we're still working on the project, because we need to see the market dynamics. The market changed very fast. I think at the end of the year, not just the market dynamics or the political dynamics, okay, we're influenced what are we are going to do. Okay. Yeah, that's all I've got. I'll take my other questions off end. Thank you. Thanks.

Operator: At this time, this concludes our question and answer session. If your question was not taken, you may contract Amprius investor relations team at IR at Amprius.com.

Kang Sun: I would now like to turn the call back over to Dr. Sun for any closing remarks.

Kang Sun: Thanks again, everyone, for joining us today. As a reminder, you can find out more about our company. Receive additional updates and learn about upcoming events and presentations from the investor relations section of our website. We hope to see you at the wall of our upcoming conferences and we'll continue to update you on the exciting progress we are making in transforming the electric mobility market.

Kang Sun: Finally, I'd like to thank our employees, partners, and the shareholders for their continued support. Thank you.

Operator: Thank you for joining us today for Amprius technology first quarter 2023 earnings conference call.

Operator: You may disconnect your lines at this time and have a wonderful day.

Q2 2024 Amprius Technologies Inc Earnings Call

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