Q1 2026 Amprius Technologies Inc Earnings Call

May 7, 2026

[Company Representative] (Amprius Technologies): Good morning. Welcome to the Amprius Technologies Q1 2026 Earnings Conference Call. Joining us for today's presentation are the company's CEO, Tom Stepien, and CFO, Ricardo Rodriguez. At this time, all participants are in listen-only mode. Following management's remarks, we will open the call for questions. Please note that this presentation contains forward-looking statements, including, but not limited to, statements regarding our financial and business performance, our business strategy, future product development or commercialization, new customer adoption and new applications, our growth and the growth of the markets in which we operate, and the timing and ability of Amprius to expand its manufacturing capacity, scale its business, and achieve a sustainable cost structure.

Speaker #2: At this time, all participants are in listen-only mode. Following management's remarks, we will open the call for questions. Please note that this presentation contains forward-looking statements, including but not limited to statements regarding our financial and business performance, our business strategy, future product development or commercialization, new customer adoption and new applications, our growth, and the growth of the markets in which we operate, and the timing and ability of Amprius to expand its manufacturing capacity, skilled business, and achieve a sustainable cost structure.

Speaker #2: 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.

[Company Representative] (Amprius Technologies): 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. This pre-presentation includes a non-GAAP financial measure, which is adjusted EBITDA. This non-GAAP financial measure does not replace the presentation of Amprius' GAAP financial results and should only be used as a supplement to, not a substitute for, Amprius' financial results presented in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Speaker #2: For a more complete discussion of these risks and uncertainties, please refer to Amprius' filings with the securities and exchange commission. This presentation includes a non-GAAP financial measure, which is adjusted EBITDA.

Speaker #2: This non-GAAP financial measure does not replace the presentation of Amprius' GAAP financial results and should only be used as a supplement to, not a substitute for, Amprius' financial results in a presented in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

Speaker #2: A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is included in our press release. A copy of which is filed with the SEC and posted on our website.

[Company Representative] (Amprius Technologies): A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, is included in our press release, a copy of which is filed with the SEC and posted on our website. Finally, I would like to remind everyone that this conference call is being webcast. 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 press release that accompanies these results, which can also be found on the Amprius investor relations website. Before turning the call over to management, I want to highlight a few near-term IR events. On 12 May, Tom Stepien will be at XPONENTIAL in Detroit. Any investors that are attending the expo are welcome to stop by the company's booth.

Speaker #2: Finally, I would like to remind everyone that this conference call is being webcast. A recording will be made available for replay on the company's investor relations website at ir.amprius.com.

Speaker #2: In addition to the webcast, the company has posted a press release that accompanies these results, which can also be found on the Amprius Investor Relations website.

Speaker #2: Before turning the call over to management, I want to highlight a few near-term IR events. On May 12th, Tom Stepien will be at Exponential in Detroit, and the investors that are attending the expo are welcome to stop by the company's booth.

Speaker #2: At the same time, Ricardo will be at the Needham Conference in New York City on May 12th and 13th. His fireside chat will be streamed online and will be available for replay on the company's IR website.

[Company Representative] (Amprius Technologies): At the same time, Ricardo will be at the Needham Conference in NY on 12 and 13 May. His fireside chat will be streamed online and will be available for replay on the company's IR website. On 14 May, the management team will be in NY and taking investor meetings with KKR. The following week, management will be attending the B. Riley conference on 20 and 21 May in LA. To round out the month, management will be at the Craig-Hallum conference in Minneapolis on 28 May. Looking to June, the team will start off the month in Chicago for the William Blair Conference. Management will attend the Jefferies EVTOL Summit on 8 June, the TD Cowen Technology Summit on 17 June, the Roth London Conference on 17 and 18 June, and the Northland Conference on 23 June.

Speaker #2: On May 14th, the management team will be in New York City and taking investor meetings with KKR. The following week, management will be attending the B.

Speaker #2: Reilly Conference on May 20th and 21st in Los Angeles, and a round out the month, management will be at the Craig Hallam Conference in Minneapolis on May 28th.

Speaker #2: Looking to doom, the team will start off the month in Chicago for the William Blair Conference. Management will then attend the Jefferies EVTOL Summit on June 8th, the TD Cowen Technology Summit on the 17th, the Roth London Conference on June 17th and 18th, and the Northland Conference on June 23rd.

Speaker #2: We hope to connect with many of you at these upcoming events. I'll now turn the call over to Amprius Technologies CEO, Tom Stepien, for his comments.

[Company Representative] (Amprius Technologies): We hope to connect with many of you at these upcoming events. I will now turn the call over to Amprius Technologies CEO, Tom Stepien, for his comments. Sir, please proceed.

Speaker #2: Sir, please proceed. Welcome, everyone, and thank you for joining us this morning. Let's start with slide three. Last quarter, I compared the advantages offered by our batteries to the difference between standard brewed coffee and espresso.

Tom Stepien: Welcome, everyone, and thank you for joining us this morning. Let's start with slide 3. Last quarter, I compared the advantages offered by our batteries to the difference between standard brewed coffee and espresso. It's an idea that illustrates the difference between our cells and those of our competitors. In this analogy, a standard graphite battery is like normal drip coffee, and we're the concentrated power of espresso. Our batteries contain the same energy as standard cells in a much smaller package. If you match the volume and weight of standard coffee with a double espresso, you achieve twice the energy. When you double the energy in a battery, you can double flight time for an unmanned aircraft or double the travel distance of a light electric vehicle. That's the Amprius Espresso Advantage. Turning now to slide 4.

Speaker #2: It's an idea that illustrates the difference between our cells and those of our competitors. In this analogy, a standard graphite battery is like normal drip coffee.

Speaker #2: And we're the concentrated power of espresso. Our batteries contain the same energy as standard cells in a much smaller package. If you match the volume and weight of standard coffee, with a double espresso, you achieve twice the energy.

Speaker #2: When you double the energy in a battery, you can double flight time for an unmanned aircraft, or double the travel distance of a light electric vehicle.

Speaker #2: That's the Amprius espresso advantage. Turning now to slide four. This energy advantage continues to drive robust financial performance and, in the first quarter, we sustained our strong business momentum.

Tom Stepien: This energy advantage continues to drive robust financial performance. In Q1, we sustained our strong business momentum. Our second generation SiCore silicon anode batteries are gaining broad adoption across unmanned aerial system customers. We are pleased to see the momentum we have built in Europe is now taking hold in the United States. US defense spending is at an all-time high, with a growing emphasis on UASs, commonly referred to as drones. Three Amprius customers leveraging our SiCore batteries have recently received notable multi-million dollar awards. First, I'll mention Kraus Hamdani Aerospace, a Northern California-based drone manufacturer. Their K1000ULE is a fully electric, ultra-long-range endurance UAS capable of 24-hour flight and a 1,000-mile range, designed for autonomous intelligence, surveillance, and communication missions across land, sea, and air.

Speaker #2: Our second-generation Sycor silicon anode batteries are gaining broad adoption across unmanned aerial, system customers, and we are pleased to see the momentum we have built in Europe is now taking hold in the United States.

Speaker #2: US defense spending is at an all-time high, with growing emphasis on UASs, commonly referred to as drones. Three Amprius customers leveraging our Sycor batteries have recently received notable multi-million dollar awards.

Speaker #2: First, I'll mention Kraus Hamdani Aerospace. A Northern California-based drone manufacturer. Their K1000 ULE is a fully electric, ultra-long-range endurance UAS capable of 24-hour flight and 1,000-mile range.

Speaker #2: Designed for autonomous intelligence surveillance and communication missions across land, sea, and air. They recently received a major sole-source award from the US Department of War for their UAS, and a separate contract worth up to $270 million from the US Air Force Central Command.

Tom Stepien: They recently received a major sole source award from the U.S. Department of Defense for their UAS and a separate contract worth up to $270 million from the United States Air Forces Central Command. There's AeroVironment, a leading US defense technology company and a long-term Amprius customer. In March 2026, AV won a $170 million firm fixed price US Army contract to deliver P550 UASs designed to provide front-line units with real-time intelligence and targeting in contested environments. There's Teledyne FLIR, a global leader in thermal imaging, surveillance sensors, and unmanned systems, and another tenured Amprius customer. They recently announced a European order for their Black Hornet 4, a palm-sized nano drone measuring just 25 cm long with a 200 mm rotor diameter.

Speaker #2: Then there's Arrow Environment, a leading US defense technology company and a long-term Amprius customer. In March 2026, AV won a $170 million firm fixed price US Army contract to deliver P550 UASs designed to provide front-line units with real-time intelligence and targeting in contested environments.

Speaker #2: And then there's Teledyne FLIR, a global leader in thermal imaging surveillance sensors and unmanned systems and another tenured Amprius customer. They recently announced a European order for their Black Hornet 4, a palm-sized nanodrone measuring just 25 centimeters long with a 200-millimeter rotor diameter.

Speaker #2: The Black Hornet 4 provides soldiers with live video feeds, target data, and real-time situational awareness for intelligence surveillance and reconnaissance, in both dismounted and vehicle-integrated operations.

Tom Stepien: The Black Hornet 4 provides soldiers with live video feeds, target data, and real-time situational awareness for intelligence, surveillance, and reconnaissance in both dismounted and vehicle-integrated operations. We commend these three customers on their recent wins. Their success boosts our visibility into future purchase orders for SiCore cells. We look forward to continuing to earn their trust and business. We are pleased to announce that our silicon anode cells were selected by a leading light electric vehicle customer based in China. This customer placed a $21 million multi-quarter purchase order for batteries for 2 and 3-wheeled vehicles. China is home to many of the world's most successful battery companies, which makes it especially satisfying to win business in this highly competitive region. Meanwhile, our ongoing project with the US Defense Innovation Unit continues to expand. In July 2025, Amprius won a development contract from the DIU.

Speaker #2: We commend these three customers on their recent wins. Their success boosts our visibility into future purchase orders for Sycor cells. We look forward to continuing to earn their trust and business.

Speaker #2: We are pleased to announce that our silicon anode cells were selected by a leading light electric vehicle customer based in China. This customer placed a 21-million-dollar multi-quarter purchase order for batteries for two and three-wheeled vehicles.

Speaker #2: China is home to many of the world's most successful battery companies, which makes it especially satisfying to win business in this highly competitive region.

Speaker #2: Meanwhile, our ongoing project with the US defense innovation unit continues 2025, Amprius wanted development contract from the DIU. In the March quarter, the contract was increased for a third time and now totals 18.1 million dollars.

Tom Stepien: In the March quarter, the contract was increased for a third time and now totals $18.1 million. This recent increase adds delivery of 3 types of silicon anode cylindrical cells and 4 standard size pouch cells. Standardization is really critical for the government. It reduces cost, simplifies logistics, and ensures systems can use the same safe, reliable, NDAA-compliant power sources. It is gratifying to receive awards from credible and independent media and trade groups. After winning a competitive CES Innovation Award in January, we were recently named a top 100 green tech company by Time. Turning now to our financial performance, I'm pleased to report Q1 revenue of $28.5 million, up 2.5x year over year and 13% higher sequentially.

Speaker #2: This recent increase adds delivery of three types of silicon anode cylindrical cells and four standard-sized pouch cells. Standardization is really critical for the government.

Speaker #2: It reduces cost, simplifies logistics, and ensures systems can use the same safe, reliable, NDAA-compliant power sources. It is gratifying to receive awards from credible and independent media and trade groups.

Speaker #2: After winning a competitive CES Innovation Award in January, we recently named a top 100 green tech company by TIME. Turning now to our financial performance, I'm pleased to report Q1 revenue of 28.5 million dollars.

Speaker #2: Up two and a half X year over year, and 13% higher sequentially. The strong results give us the confidence to increase our revenue guidance for the full year to at least 130 million dollars.

Tom Stepien: The strong results give us the confidence to increase our revenue guidance for the full year to at least $130 million, $5 million above our previous forecast. While it is not a practice to provide specific guidance for the current quarter, I would note that a revised annual forecast implies a re-acceleration of sequential top-line growth in Q2. Ricardo will provide more highlights on our financial performance and outlook shortly. He will also share details on our press release earlier this morning, in which we announced an agreement to exchange our outstanding public warrants for common shares, which will simplify and strengthen our capital structure. Let's now take a look at slide 5. Taking a step back, I'd like to review our substantial opportunity set in 5 principal end markets. The first is UAS, including drones used for defense, public safety, security, and logistics.

Speaker #2: 5 million above our previous forecast. While it is not a practice to provide specific guidance for the current quarter, I would note that a revised annual forecast implies a real acceleration of sequential top-line growth in the June quarter.

Speaker #2: Ricardo will provide more highlights on our financial performance and outlook shortly. He will also share details on our press release earlier this morning in which we announced an agreement to exchange our outstanding public warrants for common shares.

Speaker #2: Which will simplify and strengthen our capital structure. Let's now take a look at slide five. Taking a step back, I'd like to review our substantial opportunity set in five principal end markets.

Speaker #2: The first is UASs, including drones used for defense, public safety, security, and logistics. Defense platforms that require high-energy density typically support long loiter missions and are primarily targeted for ISR.

Tom Stepien: Defense platforms that require high energy density typically support long loiter missions and are primarily targeted for ISR, intelligence, surveillance, and reconnaissance. Public safety drones include DFR, drone as a first responder, systems integrated directly into emergency workflows. DFR programs are expanding nationwide because they deliver faster situational awareness, reduced response times, and materially improved public safety outcomes. As more agencies adopt DFR as a core part of 911 operations, demand for higher performance, longer endurance batteries continue to accelerate, and that plays directly to our strengths. Our second market segment is satellites and space, where our high energy density cells directly improve launch economics. Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight, our Espresso advantage, extremely valuable.

Speaker #2: Intelligence surveillance or reconnaissance. Public safety drones include DFR, drone as a first responder. Systems integrated directly into emergency workflows. DFR programs are expanding nationwide, because they deliver faster, situational awareness, reduced response times, and materially improved public safety outcomes.

Speaker #2: As more agencies adopt DFR as a core part of 911 operations, demand for higher performance, longer endurance batteries continue to accelerate, and that plays directly to our strengths.

Speaker #2: Our second market segment is satellites in space, where our high-energy density cells directly improve launch economics. Satellite launch providers charge customers by weight, making our ability to deliver the same energy at roughly half the weight our expresso advantage extremely valuable.

Speaker #2: The 21-million-dollar multi-quarter purchase order I mentioned earlier is an example of our traction in a third segment, light electric vehicles. The customer advantage here is sitting more capacity into standard packs or constrained spaces, and enabling range.

Tom Stepien: The $21 million multi-quarter purchase order I mentioned earlier is an example of our traction in a third segment, light electric vehicles. The customer advantage here is fitting more capacity into standard packs or constrained spaces and enabling range. We're optimistic about the opportunity in a fourth segment, robotics. Robot performance is closely tied to battery characteristics, as our CTO, Ionel Stefan, recently shared with a leading battery journal. Balancing the extreme discharge demands of actuation with the computational intensity of real-time AI processing requires a new generation of energy solutions, he said. High silicon anode cells represent a breakthrough, delivering the energy density needed to extend operational runtime while minimizing the weight penalties that constrain efficiency. Our fifth market segment is EVTOL, electric vertical take-off and landing aircraft. EVTOL and other advanced air mobility customers are developing autonomous point-to-point regional transport for both passengers and cargo.

Speaker #2: We're optimistic about the opportunity in a fourth segment, robotics. Robot performance is closely tied to battery characteristics. As our CTO, Ian L. Stefan, recently shared with a leading battery journal, "Balancing the extreme discharge demands of actuation with a computational intensity of real-time AI processing requires a new generation of energy solutions." He said, "High silicon anode cells represent a breakthrough, delivering the energy density needed to extend operational runtime, while minimizing the weight penalties that constrain efficiency." Our fifth market segment is EV toll, electric vertical takeoff and landing aircraft.

Speaker #2: EV-tol and other advanced air mobility customers are developing autonomous, point-to-point regional transport for both passengers and cargo. These vehicles only work with high-energy-density batteries.

Tom Stepien: These vehicles only work with high energy density batteries. Because aircraft must lift a heavy structure, a pilot, and 3 to 4 passengers. Without enough energy per kilogram, the vehicle simply can't achieve the required range, payload, or safety margins. If standard cells are chosen, the aircraft can likely get off the ground, but it likely cannot perform the required mission. Working with a third-party research firm, we size these 5 end markets as shown on the right-hand side of slide 5. Lithium-ion battery applications across these markets are estimated at $7 billion this year, growing to $13 billion by the end of the decade, nearly doubling in just a few years. Looking further out, we expect growth to accelerate meaningfully, reaching $35 billion by 2035. Let me now turn over the call to Ricardo to review our Q1 results in detail.

Speaker #2: Because aircraft must lift a heavy structure, a pilot, and three to four passengers. Without enough energy per kilogram, the vehicle simply can't achieve the required range, payload, or safety margins.

Speaker #2: If standard cells are chosen, the aircraft can likely get off the ground, but it likely cannot perform the required mission. Working with a third-party research firm we size these five end markets as shown on the right-hand side of slide five.

Speaker #2: Lithium-ion battery applications across these markets are estimated at 7 billion this year, growing to 13 billion by the end of the decade. Nearly doubling in just a few years.

Speaker #2: Looking further out, we expect growth to accelerate meaningfully reaching 35 billion by 2035. Let me now turn over the call to Ricardo to review our Q1 results in detail.

Speaker #1: Thank you, Tom, and good morning, everyone. I'm happy to report that Amprius had another record-breaking quarter. As shown on slide six, we delivered $28.5 million of revenue in Q1, which translates into 13% growth over the fourth quarter of last year, and a 153% increase year over year.

Ricardo Rodriguez: Thank you, Tom, and good morning, everyone. I'm happy to report that Amprius had another record-breaking quarter. As shown on slide six, we delivered $28.5 million of revenue in Q1, which translates into 13% growth over the Q4 of last year and a 153% increase year over year. As Tom mentioned, those results give us the confidence to increase our 2026 full year revenue forecast by $5 million to at least $130 million. I'll provide more color on the outlook shortly. As Tom noted, our revenue growth was driven by continued expansion in our SiCore customer base, combined with increasing order volumes from existing customers as they scale their own deployments. SiCore represented 97% of product revenue in the quarter, continuing our transition away from our legacy SiMaxx platform.

Speaker #1: As Tom mentioned, those results give us the confidence to increase our 2026 full-year revenue forecast by 5 million dollars to at least 130 million dollars.

Speaker #1: I'll provide more color on the outlook shortly. As Tom noted, our revenue growth was driven by continued expansion in our Sitecore customer base, combined with increasing order volumes from existing customers as they scaled their own deployments.

Speaker #1: Sitecore represented 97% of product revenue in the quarter, continuing our transition away from our legacy SIMAX X platform. In the quarter, we generated 58% of our revenue from Europe, the Middle East, and Africa, 21% from North America, and 21% from the Asia-Pacific region.

Ricardo Rodriguez: In the quarter, we generated 58% of our revenue from Europe, the Middle East, and Africa, 21% from North America, and 21% from the Asia Pacific region. The North American share increased meaningfully both sequentially and year over year, consistent with the growing interest we're seeing from US-based customers. While we expect this mix to fluctuate over the course of the year, we think the US business could accelerate in H2. Now moving on to cost of revenue and gross margins. Our Q1 gross profit was $5.7 million, producing a gross margin of 20%. For context, Q4 gross margin was 24%. We did step back quarter over quarter, and I want to be transparent about why.

Speaker #1: The North American share increased meaningfully both sequentially in year over year. Consistent with the growing interest we're seeing from US-based customers. While we expect this mix to fluctuate over the course of the year, we think the US business could accelerate in the second half.

Speaker #1: Now moving on to cost of revenue and gross margins. Our Q1 gross profit was 5.7 million dollars, producing a gross margin of 20%. For context, Q4 gross margin was 24%.

Speaker #1: So we did step back quarter over quarter, and I want to be transparent about why. Overhead costs associated with our three-month facility are being absorbed across a larger Sitecore revenue base, while the SIMAX product line continues to wind down.

Ricardo Rodriguez: Overhead costs associated with our Fremont facility are being absorbed across a larger SiCore revenue base, while the SiMaxx product line continues to wind down. Our Q1 SiMaxx-related overhead costs were up more than $3 million. Essentially, these are fixed costs against only $618,000 of revenue. That created a material but temporary drag on the blended margin. We also had 1 month of expenses from Colorado in the quarter, without which our gross margin would have been 22%. Turning over to operating expenses. Quarterly R&D expenses were of $3.8 million.

Speaker #1: Our Q1 SIMAX-related overhead costs were of more than $3 million. Essentially, these are fixed costs against only $618,000 of revenue. That created a material but temporary drag on the blended margin.

Speaker #1: We also had one month of expenses from Colorado in the quarter, which our gross without which our gross margin would have been 22%. Turning over to operating expenses.

Speaker #1: Quarterly R&D expenses were of $3.8 million. SG&A was $8.6 million, bringing total operating expenses to $12.4 million. Which was down approximately 19 million dollars quarter over quarter, though that comparison is heavily distorted by the 22.5 million dollar non-cash impairment charge for Colorado in Q4 of last year.

Ricardo Rodriguez: SG&A was $8.6 million, bringing total operating expenses to $12.4 million, which was down approximately $19 million quarter over quarter, though that comparison is heavily distorted by the $22.5 million non-cash impairment charge for Colorado in Q4 of last year. On a clean basis, our adjusted OpEx run rate is up modestly quarter over quarter, driven by targeted investments in our sales and go-to-market organization as we build a team to support the commercial momentum Tom described. Putting these elements together, our Q1 operating loss was $6.7 million, compared to a clean operating loss of approximately $2.9 million in Q4 after removing the Colorado one-time charge. The increase reflects the gross margin setback I described and the continued investment in commercial and R&D capabilities.

Speaker #1: On a clean basis, our adjusted OPEX run rate is up modestly quarter over quarter, driven by targeted investments in our sales and go-to-market organization, as we build a team to support the commercial momentum Tom described.

Speaker #1: Putting these elements together, our Q1 operating loss was $6.7 million, compared to a clean operating loss of approximately $2.9 million in Q4 after removing the Colorado one-time charge.

Speaker #1: The increase reflects the gross margin setback I described and the continued investment in commercial and R&D capabilities. If you want adjusted EBITDA, it was negative $1.8 million, which compares to negative $5.2 million in the same quarter of last year.

Ricardo Rodriguez: Q1 adjusted EBITDA was -$1.8 million, which compares to -$5.2 million in the same quarter of last year. After 2 quarters of positive adjusted EBITDA, we had expected a modest step back in Q1 due to the SiMaxx phase out and the 1-month Colorado cost carryover that I described. Our Q1 GAAP net loss was of $5 million or -$0.04 per share, based on approximately 136.9 million weighted average shares outstanding. Now turning over to the balance sheet and cash flow. We ended Q1 with $62.4 million of cash and no debt. Our cash position is down from $90.5 million at year-end due to several factors which consumed $37.3 million of cash in the quarter.

Speaker #1: After two quarters of positive adjusted EBITDA, we had expected a modest step back in Q1 due to the SIMAX phase-out and the one-month Colorado cost carryover that I described.

Speaker #1: Our Q1 gap-net loss was of $5 million, or negative 4 cents per share. Based on approximately 136.9 million weighted average shares outstanding. Now turning over to the balance sheet and cash flow.

Speaker #1: We ended Q1 with 62.4 million dollars of cash and no debt. Our cash position is down from 90.5 million dollars at year-end due to several factors, which consumed 37.3 million dollars of cash in the quarter.

Speaker #1: First, accounts receivable increased by 11.5 million dollars, reflecting the strong revenue growth we experienced near the quarter's end. Over six and a half million dollars of that figure has already been collected.

Ricardo Rodriguez: First, accounts receivable increased by $11.5 million, reflecting the strong revenue growth we experienced near the quarter's end. Over $6.5 million of that figure has already been collected. We also paid approximately $20 million to settle our Colorado facility lease obligation, as previously announced. That agreement settled what would have been an expense of more than $110 million in highly favorable terms. Largely due to that transaction, our liabilities were reduced by $29.8 million in the quarter. Q1 capital expenditures were of $980,000, funded largely through the DIU contract. Total shareholders' equity stood at $109.4 million at quarter's end.

Speaker #1: We also paid approximately $20 million to settle our Colorado facility lease obligation, as previously announced. That agreement settled what would have been an expense of more than $110 million in highly favorable terms.

Speaker #1: Largely due to that transaction, our liabilities were reduced by 29.8 million dollars in the quarter. Q1 capital expenditures were of $980,000, funded largely through the DIU contract.

Speaker #1: Total shareholders' equity stood at 109.4 million dollars at quarter's end. Before turning the call back to Tom, I'd like to spend a moment framing our outlook and commenting on the warrant exchange agreement transaction, that we announced this morning.

Ricardo Rodriguez: Before turning the call back to Tom, I'd like to spend a moment framing our outlook and commenting on the warrant exchange agreement transaction that we announced this morning. Let's also please turn to slide 7. When we communicated our 2026 baseline of at least $125 million of revenue, we said we would rather size the upside as it happens than commit to it ahead of time. We continue to see healthy demand indicators, a growing backlog, higher production volumes at all of our manufacturing partners, and increasing urgency from defense-related customers around NDAA compliant supply. With this in mind, we are raising our revenue guidance to at least $130 million in 2026.

Speaker #1: Let's also please turn to slide seven. When we communicated our 2026 baseline of at least $125 million of revenue, we said we would rather size the upside as it happens than commit to it ahead of time.

Speaker #1: We continue to see healthy demand indicators. A growing backlog, higher production volumes at all of our manufacturing partners, and increasing urgency from defense-related customers around NDAA compliant supply.

Speaker #1: With this in mind, we are raising our revenue guidance to at least $130 million in 2026. The setup for the rest of the year is constructive for our economics, particularly as our collections normalize, and additional capacity from our Korean and US manufacturing partners comes online.

Ricardo Rodriguez: The setup for the rest of the year is constructive for our economics, particularly as our collections normalize and additional capacity from our Korean and US manufacturing partners comes online. We continue to expect 2026 adjusted EBITDA of at least $4 million and a net loss of no more than $8 million, or less than $0.06 per share, assuming 136.9 million shares. Our CapEx will ramp up over the course of 2026, but remain below $10 million for the year, and we expect this to be funded by our contract with the Defense Innovation Unit. Finally, I'd like to briefly comment on the recent announcement of our agreements to convert over 7 million public warrants that were held by institutional investors into common stock.

Speaker #1: We continue to expect 2026 adjusted EBITDA of at least $4 million, and the net loss of no more than $8 million. Or less than 6 cents per share assuming $136.9 million shares.

Speaker #1: Our CAPEX will ramp up over the course of 2026, but remain below $10 million for the year, and we expect this to be funded by our contract with the defense innovation unit.

Speaker #1: Finally, I'd like to briefly comment on the recent announcement of our agreements to convert over $7 million public warrants that were held by institutional investors into common stock.

Speaker #1: This agreement reduces future dilution by converting warrants that would have been exercisable at lower prices into a fixed number of shares. On terms that we believe are favorable to existing shareholders.

Ricardo Rodriguez: This agreement reduces future dilution by converting warrants that would have been exercisable at lower prices into a fixed number of shares on terms that we believe are favorable to existing shareholders. It is consistent with the broader optimization of our capital structure that we've been executing, such as closing the ATM, settling the Colorado lease, and now managing our warrant overhang proactively. We're constantly looking for opportunities to simplify the balance sheet and optimize the capital structure as our operating performance gives us the leverage to do so. Thank you to everyone who worked with us on this and to the Amprius team for enabling it, thanks to the prompt execution of our plans. Now, I'm happy to turn the call back to Tom. Thank you all for your continued attention and support.

Speaker #1: It is consistent with the broader optimization of our capital structure that we've been executing, such as closing the ATM, settling the Colorado lease, and now managing our warrant overhang proactively.

Speaker #1: We're constantly looking for opportunities to simplify the balance sheet and optimize the capital structure as our operating performance gives us the leverage to do so.

Speaker #1: Thank you to everyone who worked with us on this, and to the Amprius team for enabling it thanks to the prompt execution of our plans.

Speaker #1: Now, I'm happy to turn the call back to Tom. Thank you all for your continued attention and support. Our Q1 performance bodes well for a successful 2026.

Tom Stepien: Our Q1 performance bodes well for a successful 2026. Revenue increasing at double-digit percentage points quarter-over-quarter, continued gross margin at or above 20%, and with our warrant exchange underway, we are removing a potential dilution overhang. Competition in the lithium-ion battery space is fierce, we embrace it. In 2026, the team is driving next generation silicon anode performance with higher energy density and sustained power without sacrificing safety or reliability while meeting all manufacturing and country origin requirements. We're expanding our portfolio to reach new markets and converting more customer engagements into formal qualifications and deployments, particularly in mobility-focused platforms. We remain deeply bullish about the opportunities in front of us, we look forward to meeting and reconnecting with many of you at the investor conferences we'll be attending in the weeks ahead.

Speaker #1: Revenue increasing at double-digit percentage points quarter over quarter, continued gross margin at or above 20%, and with our warrant exchange underway, we are removing a potential dilution overhang.

Speaker #1: Competition in the lithium-ion battery space is fierce, and we embrace it. In 2026, the team is driving next-generation silicon anode performance with higher energy density and sustained power, without sacrificing safety or reliability, while meeting all manufacturing and country of origin requirements.

Speaker #1: We're expanding our portfolio to reach new markets and converting more customer engagements into formal qualifications and deployments, particularly in mobility-focused platforms. We remain deeply bullish about the opportunities in front of us, and we look forward to meeting and reconnecting with many of you at the Investor Conferences we'll be attending in the weeks ahead.

Speaker #1: Thank you for your continued interest in and support of Amprius. And with that, let me—I'll turn it over to the operator for questions.

Tom Stepien: Thank you for your continued interest in and support of Amprius. With that, I'll turn it over to the operator for questions.

Speaker #2: Thank you. And at this time, we'll open the line for questions from the companies publishing research analysts. The company requests that each participant limit their comments to one question and one follow-up.

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

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

Speaker #2: To ask a question, press *1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the *keys. Now, our first question will come from Colin Rush with Oppenheimer.

Speaker #2: Please state your question.

Speaker #3: Thanks so much, guys. Tom, you've been with the company now about a year, and one of the big focuses was around driving better visibility on customer volumes so you could plan out production.

Colin Rusch: Thanks so much, guys. Tom, you know, you've been with the company now, about a year, and one of the big focuses was around driving better visibility on customer volumes, you know, so you could plan out production. You know, given some of the fluctuation that we're seeing with, you know, mix and margins here, just wanna get a more fulsome update on where you're at in that process and how much there is to go in terms of, you know, being able to drive increased volumes with key customers and do a little bit more work around planning and supply chain optimization.

Speaker #3: Given some of the fluctuation that we're seeing with mix and margins here, I just want to get a more fulsome update on where you're at in that process and how much there is to go in terms of being able to drive increased volumes with key customers and do a little bit more work around planning and supply chain optimization.

Speaker #4: Yeah, thanks, Colin. There is a lot of upside going forward here. We are in early days. We are starting to see some of the one big, beautiful bill dollars, the bill was signed, what, 10 months ago?

Tom Stepien: Yeah. Thanks, Colin. There is a lot of upside going forward here. We are in early days. We are starting to see some of the One Big Beautiful Bill dollars. The bill was signed, what, 10 months ago. The 3 customers that we referenced in the call are starting to receive contracts. The suppliers to those customers, including Amprius on the battery side, are next. We see that also in some of the light electric vehicle work. We announced a win. We've been a little bit vague about that in the past because it's been smaller purchase orders, now there's larger ones coming in. There is a lot of opportunity out there for us. We are going to robotics conferences that we have not attended in the past. We're going on offense, we're adding people to the team.

Speaker #4: The three customers that we referenced in the call are starting to receive contracts. The suppliers to those customers, including Amprius on the battery side, are next.

Speaker #4: We see that also in some of the light electric vehicle work. We announced a win. We've been a little bit vague about that in the past because it's been smaller purchase orders, but now there's larger ones coming in.

Speaker #4: So there is a lot of opportunity out there for us. We are going to robotics conferences that we have not attended in the past.

Speaker #4: So we're going on offense. We're adding people to the team. We have some additional firms that are helping us. We just signed up a new group in South Korea that's helping us get started there before we establish our own team in place there.

Tom Stepien: We have some additional firms that are helping us. We just signed up a new group in South Korea that's helping us get started there before we establish our own team in place there. We are very bullish about this market in general, and we are making plans so that we can capture as much as we can get.

Speaker #4: So we are very bullish about this market in general, and we are making plans so that we can capture as much as we can get.

Speaker #3: Thanks so much. And then for my follow-up, I just want to focus in on some of the mobile robot opportunities here. Given the form factor and the flexibility that you guys have, with the different SKUs and the potential for multiple zones within some of these bots, particularly on the humanoid side, I just want to get a sense of kind of product-market fit, what you're seeing from a competitive standpoint, and the evolution of that opportunity to move into more substantial production.

Colin Rusch: Thanks so much. For my follow-up, I just want to focus in on some of the mobile robot opportunities here. You know, given the form factor and the flexibility that you guys have with the different SKUs and the potential for multiple zones within some of these bots, particularly on the humanoid side, just want to get a sense of, you know, kind of product market fit, what you're seeing from a competitive standpoint and the evolution of that opportunity to move into more substantial production.

Speaker #4: Yeah, it's early days on robotics. We don't have any real meaningful revenue in our Q1 numbers. We're starting to have some really good discussions with folks in the US and Asia about what really is ideal and, to a certain extent, some of these companies are learning for themselves one thing that we have learned is Amprius's strength, our high-energy density, really helps us in unstructured environments.

Tom Stepien: Yeah. It's early days on robotics. We don't have any real meaningful revenue in our Q1 numbers. We're starting to have some really good discussions with folks in the US and in Asia about what really is ideal. To a certain extent, some of these companies are learning for themselves. One thing that we have learned is Amprius's strength, our high energy density really helps us in unstructured environments. If you have a warehouse robot and you can go around the corner and plug in, okay, maybe we're not as strong.

Speaker #4: If you have a warehouse robot and you can go around the corner and plug in, okay, maybe we're not as strong. But if you have a variety of different power needs, I reference E&L's analysis, in the call where you have some intense power needs, if you're lifting, and then you have some low-energy needs for extended use, those play to our ability to have blended batteries—some that are power-focused, some that are energy-focused—a lot of which are balanced.

Tom Stepien: If you have a variety of different power needs, I reference Ionel's analysis in the call, where you have some intense power needs if you're lifting, and then you have some low energy needs for extended use, those play to our ability to have blended batteries, some that are power-focused, some that are energy-focused, a lot of which are balanced. We're getting started. We have some really good conversations with customers, and done well that will start to show up in terms of revenue toward the end of this year or early next.

Speaker #4: So we're getting started. We have some really good conversations with customers. And done well, that will start to show up in terms of revenue toward the end of this year, early next.

Speaker #3: Thanks so much, guys.

Colin Rusch: Thanks so much, guys.

Speaker #4: Thank you.

Tom Stepien: Thank you.

Tom Stepien: Thank you Colin.

Speaker #1: Thanks, Colin.

Ricardo Rodriguez: Thanks, Colin.

Speaker #2: Your next question comes from Mark Shooter with William Blair. Please state your question.

Operator 2: Your next question comes from Mark Schutter with William Blair. Please state your question.

Operator: Your next question comes from Mark Schutter with William Blair. Please state your question.

Speaker #5: Hey, gentlemen. Thanks for letting me ask the question here and congrats on the progress in the quarter.

Mark Schutter: Hey, gentlemen. Thanks for letting me ask a question here, and congrats on the progress in the quarter.

Speaker #2: Thanks, Mark.

Mark Schutter: Thanks, Mark.

Ricardo Rodriguez: Thanks, Mark.

Speaker #5: The last earning—hey, thanks, Ricardo. So the last earnings call, I believe we had just entered the Iran conflict. So I'm wondering how have your conversations developed over the last three months, especially with the US military and the defense contractors?

Mark Schutter: Hey, thanks, Ricardo. Last earnings call, I believe we had just entered the Iran conflict. I'm wondering how have your conversations developed over the last 3 months, especially with the US military and the defense contractors? Has there been any increase or a sense of urgency from these drone programs that you can talk about?

Speaker #5: Has there been any increase or a sense of urgency from these drone programs that you can talk about?

Speaker #4: Yeah, again, we're starting to see some of the flow in. We referenced some over-the-weekend calls. I think in the March quarter, and that has translated to some of the business.

Tom Stepien: Yeah. Again, we're starting to see some of the flow in. We referenced some over the weekend calls, I think, in Q1, and that has translated to some of the business. One of the customers that we talked about in the call was one of those customers. We as a, as a nation here, the US, is getting serious. I think we've seen that in a number of public announcements, and we're starting to see that flow down to us. It will, it will likely continue. The Gauntlet II in the Drone Dominance Program, the Gauntlet itself starts in August. There's some qualifiers next month in June. We know the 11 winners in Gauntlet I. There's more that are entering into Gauntlet II.

Speaker #4: One of the customers that we talked about in the call was one of those customers. So we, as a nation here, the US, is getting serious.

Speaker #4: I think we've seen that in a number of public announcements, and we're starting to see that flow down to us. It will likely continue the gauntlet too in the drone dominance program.

Speaker #4: The gauntlet itself starts in August. There's some qualifiers next month in June. We know the 11 winners in Gauntlet 1. There's more that are entering into Gauntlet 2.

Speaker #4: So really close with that community. And intend to stay close and intend to emphasize our ability to have a longer loitering time which, for many of the scoring in these drone contests, is super important.

Tom Stepien: We're really close with that community and intend to stay close and intend to emphasize our ability to have a longer loitering time, which for many of the scoring in these drone contests is super important.

Mark Schutter: Thanks, Tom. One follow-up for Ricardo about the warrant transaction at the tape this morning. Can you unpack a little bit more of the strategy around the transaction? Is there any more color you can provide to us on the what the potential dilution would have been and what it will be now?

Speaker #5: for Ricardo about the warrant transaction. I hit the tape this morning. Can you unpack a little bit more of the strategy around the transaction and is there any more color you can provide to us on what the potential dilution would have been and what it will be now?

Speaker #2: Thanks, Mark. Yeah, definitely. So I mean, just to get us all on the same page, right? So there were basically just nearly 16 and a half million public warrants that were issued back in 2022 in September when the company went public with a strike price of we're basically doing is we took 7.1 million of those warrants and negotiated with the holders of those warrants to convert them into stock at an exchange ratio that will be determined here next week.

Ricardo Rodriguez: Thanks, Mark. Yeah, definitely. I mean, just to get us all on the same page, right? There were basically, just nearly 16.5 million public warrants that were issued back in 2022 in September when the company went public with a strike price of $11.50. Here what we're basically doing is we took 7.1 million of those warrants and negotiated with the holders of those warrants to convert them into stock at an exchange ratio that'll be determined here next week. Per our math, we are basically saving shareholders at least $70 million of dilution that would've otherwise happened if those warrants were exercised. The other bit is when these warrants are held by institutional investors, they manage a hedge, right?

Speaker #2: Per our math, we were basically saving shareholders at least 70 million dollars of dilution that would have otherwise happened if those warrants were exercised.

Speaker #2: The other bit is when these warrants are held by institutional investors, they manage a hedge, right? They generally just want the performance from the warrants rather than the performance to be linked to the stock, and it's volatility.

Ricardo Rodriguez: They generally just want the performance from the warrants rather than the performance to be linked to the stock and its volatility. Given where the stock has been trading, meaningfully above $18 a share, which is the level at which we can call the warrants, if we trade above that level for 20 out of 30 trading days. They, in essence, had a 100% short position relative to those warrants. I do think that this should relieve some of the short interest on the stock to the tune, if you believe the math, of about 7.1 million shares at least.

Speaker #2: And given where the stock has been trading meaningfully above $18 a share, which is the level at which we can call the warrants, if we trade above that level for 20 out of 30 trading days, they in essence had a 100% short position relative to those warrants.

Speaker #2: So I do think that this should relieve some of the short interest on the stock to the tune if you believe the math of about 7.1 million shares at least.

Speaker #5: That's really helpful. Thanks for the color.

Mark Schutter: That's really helpful. Thanks for the color.

Speaker #2: Absolutely. Your next question comes from Derek Soderbergh with Cantor Fitzgerald. Please state your question.

Ricardo Rodriguez: Absolutely.

Operator 2: Your next question comes from Derek Soderberg with Cantor Fitzgerald. Please state your question.

Operator: Your next question comes from Derek Soderberg with Cantor Fitzgerald. Please state your question.

Speaker #5: Yeah, good morning, everyone, and thanks for taking the questions. I wanted to start with the 500 million dollars in defense orders awarded to your longstanding customers.

Derek Soderberg: Yeah, good morning, everyone, and thanks for taking the questions. Wanted to start with the $500 million in defense orders awarded to your long-standing customers. What's Amprius' typical attach rate look like on those programs? Can you sort of frame the timing of when those might translate into POs?

Speaker #5: What's Amprius's typical attach rate look like on those programs? And can you sort of frame the timing of when those might translate into POs?

Speaker #4: Yeah. So we haven't traced attach rates because some of these programs are brand new, right? We enjoy those three customers, and these are longstanding customers, right, that have been with us for a number of years.

Tom Stepien: We haven't traced attach rates because some of these programs are brand new, right? We enjoy those 3 customers, and these are long-standing customers, right? That have been with us for a number of years. We are in some of the programs, but not all. Some of the companies, of course, have changed over time. There's different divisions. AV bought BlueHalo, so it's a bit of a different company than it was when we first got close to them, 4 or 5 years ago. The good news is that we are a known quantity, and the groups tend to talk to each other. We're getting to the point where we're starting to share roadmaps.

Speaker #4: So we are in some of the programs, but not all. And then some of the companies, of course, have changed over time. And there's different divisions.

Speaker #4: AV bought Blue Halo, so it's a bit of a different company than it was when we first got close to them four or five years ago.

Speaker #4: So the good news is that we are a known quantity and the groups tend to talk to each other. We were getting to the point where we were starting to share roadmaps.

Speaker #4: As these companies are concerned about getting to US-made batteries, and US content, we're able to share our roadmaps on exactly when we will get there, who will build those for us.

Tom Stepien: As these companies are concerned about getting to US-made batteries and US content, we're able to share our roadmaps on exactly when we will get there, who will build those for us. That gets us closer, and that allows us to have the right kind of discussions with the engineers and the program managers that are selecting different components, batteries, motors, cameras, et cetera, for these unmanned systems that they're either producing today or have on the drawing board for release in future quarters.

Speaker #4: That gets us closer, and that allows us to have the right kind of discussions with the engineers and the program managers that are selecting different components: batteries, motors, cameras, etc.

Speaker #4: for these unmanned systems that they're either producing today or have on the drawing board for release and future quarters.

Speaker #2: And Derek, maybe just to add, I think a rough guide when thinking about what this could mean for us is the batteries are usually 5% to 15% of the build materials, depending on how advanced the UAV is.

Ricardo Rodriguez: Derek, maybe just to add, I think a rough guide when thinking about what this could mean for us is the batteries are usually 5% to 15% of the build materials, depending on how advanced the UAV is. The timing, I mean, we do think that this will have to be fulfilled in H2 of this year, spilling over into the following year, but that's being determined by the manufacturers right now.

Speaker #2: And the timing I mean, we do think that this will have to be fulfilled in the second half of this year, spilling over into the following year.

Speaker #2: But that's being determined by the manufacturers right now.

Speaker #5: Got it. Super helpful. And then just on the gross margin, guide for 26, 25 percent for the full year. It looks like Q1 came in around 22 percent, ex-Colorado.

Derek Soderberg: Got it. Super helpful. Then just on the gross margin guide for 2026, 25% for the full year. It looks like Q1 came in around 22% ex Colorado. What specifically gets you back to that 25% for the full year, in the H2? Thanks.

Speaker #5: What specifically gets you back to that 25 percent for the full year in the back half of the year? Thanks.

Speaker #2: Yeah. I think there are three points that are worth considering here. The first one is, are US mix continuous accelerating due to what we just discussed, right?

Ricardo Rodriguez: Yeah. I think there are 3 points that are worth considering here. The first one is our US mix continues accelerating due to what we just discussed, right? US customers pulling demand ahead of even our own schedule and really driving quite a bit of the growth of the business. There's also the mix of China within that, which we are working to manage as well. Our sales there, along with the rest of the Asia Pacific region, are accelerating too.

Speaker #2: US customers pulling demand ahead of even our own schedule and really driving quite a bit of the growth of the business. There's also the mix of China within that, which we are working to manage as well.

Speaker #2: Our sales there along with the rest of the Asia-Pacific region are accelerating too. And so if you look at what the team basically does every single week, month, and quarter, we're kind of playing this game of Tetris where the demand comes in in a certain set of flavors, and then we work to sprint the supply it across our different SKUs and manufacturing partners within a certain period of time and not leave any revenue on the table.

Ricardo Rodriguez: If you look at what the team basically does every single week, month and quarter, we're kind of playing this game of Tetris, where the demand comes in in a certain set of flavors, and then we work to sprint the supply it across our different SKUs and manufacturing partners within a certain period of time and not leave any revenue on the table. You can gear that for profit or you can gear it for revenue depending on what growth rate you're managing to. We are managing that process pretty extensively day by day, literally. You know, were there another 3 to 4 percentage points of gross margin on the table if we had the logistics coordination capabilities of a couple hundred million dollar revenue company? I think so.

Speaker #2: And so you can gear that for profit, or you can gear it for revenue, depending on what growth rate you're managing to. And we are managing that process pretty extensively.

Speaker #2: Day by day, literally. And so we're there. Another three to four percentage points of gross margin on the table if we had the logistics, coordination capabilities of a couple hundred million dollar revenue company.

Speaker #2: I think so. And so this is just a matter of us sharpening our axe when it comes to that regard developing those capabilities. And in essence, getting that margin back into the company.

Ricardo Rodriguez: This is just a matter of us sharpening our axe when it comes to that regard, developing those capabilities, and in essence, getting that margin back into the company. It's easy to fulfill as much revenue as possible and then have all of your profits go to FedEx and UPS if you don't manage that. You know, we continue sharpening our axe in this regard. The team is pretty focused on it, and we do believe that the 25% gross margin target that we set externally is still pretty well in sight. We'll catch up mainly in H2 of this year.

Speaker #2: It's easy to fulfill as much revenue as possible and then have all of your profits go to the FedEx and UPS if you don't manage that.

Speaker #2: And so we continue sharpening our axe in this regard. The team is pretty focused on it. And we do believe that the 25 percent gross margin target that we set externally is still pretty well in sight.

Speaker #2: And we'll catch up in the mainly in the second half of this year.

Speaker #5: Great. Thanks, guys.

Derek Soderberg: Great. Thanks, guys.

Speaker #2: Thank you. Your next question comes from Austin Bolig with Needham. Please state your question.

Ricardo Rodriguez: Thank you.

Operator 2: Your next question comes from Austin Bohlig with Needham. Please state your question.

Operator: Your next question comes from Austin Bohlig with Needham. Please state your question.

Speaker #6: Hey, guys. Thanks for taking my question and congrats on the nice quarter. First question, it has to do with kind of your current customer base.

Austin Bohlig: Hey, guys. Thanks for taking my question and congrats on the nice quarter. First question has to do with kinda your current customer base. I think last quarter you guys revealed, like a customer base of 550. Curious on what, like the new customer add was in the quarter. Secondly, it sounds like you guys continue to go deeper with these current customers. Or if you could talk about the cadence on how that is going with current customers.

Speaker #6: I think last quarter you guys revealed a customer base of 550. Curious on what the new customer add was in the quarter. And then secondly, it sounds like you guys continue to go deeper with these current customers.

Speaker #6: So just wanted to talk about or if you could talk about the cadence on how that is going with current customers.

Speaker #4: Yeah. On the first part, the count, Austin, thanks for the question. It continues to be robust. And more than 50 percent of our shipments in the first quarter were for new customers, which certainly bodes well for the future.

Tom Stepien: Yeah. On the first part, the count, Austin, thanks for the question. It continues to be robust, more than 50% of our shipments in Q1 were for new customers, which certainly bodes well for the future. It's a little bit of a misleading statistic, the actual number of counts, we're gonna tend to move away from it. It's very robust. Lots of interest. We'll be at XPONENTIAL, the drone conference that is coming up, starting Monday in Detroit. That continues to go well. We're starting to see, again, increased interest, some of that because of the mandates for US batteries, National Defense Authorization Act approved batteries. Korea is coming online. We have 3 CMs there.

Speaker #4: It's a little bit of a misleading statistic, the actual number of counts. So we're going to tend to move away from it. But it's very robust.

Speaker #4: Lots of interest. We'll be at exponential the drone conference that is coming up starting Monday in Detroit. So that's that continues to go well.

Speaker #4: And we're starting to see, again, increased interest—some of that because of the mandates for U.S. batteries, National Defense Authorization Act-approved batteries. Korea is coming online.

Speaker #4: We have three CMs there. There's work underway at the one cylindrical CM in the US and more coming. We're not ready quite to announce who's next.

Tom Stepien: There's work underway at the one cylindrical CM in the US and more coming. We're not ready quite to announce who's next, but we are getting ourselves organized in order to intersect that demand that we see.

Speaker #4: But we are getting ourselves organized in order to intersect that demand that we see.

Speaker #2: And Austin, maybe just to add, I think the reason why the customer count metric has sort of run its course is we are seeing a lot of scalability with small customers by leveraging our battery pack partners.

Ricardo Rodriguez: Austin, maybe just to add, I think, you know, the reason why the customer count metric has sort of run its course is we're seeing a lot of scalability with small customers by leveraging our battery pack partners. If you look at a lot of the folks that were competing in Drone Dominance, even some of the ones who won, they're buying our cells through our pack partners. That's giving us even more scalability than we thought of, only a couple months ago. It does tend to, over time, you know, maybe give us a lower customer count that's kind of meaningless when the real customer count is actually increasing and accelerating relative to where we were in the last quarter.

Speaker #2: So if you look at a lot of the folks that we're competing in drone dominance, even some of the ones who won their buying ourselves through our pack partners, and so that's giving us even more scalability than we thought of only a couple of months ago.

Speaker #2: And it does tend to over time maybe give us a lower customer count that's kind of meaningless when the real customer count is actually increasing and accelerating relative to where we were in the last quarter.

Speaker #6: Okay. Well, thank you. And then I guess, Ricardo, one follow-up for you. It's like a modeling perspective. How should we think about OPEX kind of progressing through the year off of this Q1 number?

Austin Bohlig: Well, thank you. I guess, Ricardo, one follow-up for you, from like a modeling perspective, how should we think about OpEx kind of progressing through the year off of this Q1 number? Should we expect it to grow sequentially or kind of taper off as maybe SiMaxx continues to roll off?

Speaker #6: Should we expect it to grow sequentially or kind of taper off as maybe Cymax continues to roll off?

Speaker #2: Yeah. So through the year, and I think we have it there on slide seven. So through the year, we do expect it to, in essence, top out at 50 million dollars for this year.

Ricardo Rodriguez: Through the year, and I think we have it there on slide seven. Through the year, we do expect it to, in essence, top out at $50 million for this year. With the main change basically being this reallocation of roughly $1.4 million of costs from cost of goods sold over to OpEx. Some of the main hires that we were looking to make this year actually started in Q1 already, so they're reflected there. Any incremental ones will be managed below this level of roughly $50 million a year.

Speaker #2: And with the main change basically being this reallocation of roughly 1.4 million dollars of costs from cost of goods sold over to OPEX. Some of the main hires that we were looking to make this year actually started in Q1 already.

Speaker #2: So they're reflected there. And then any incremental ones will be managed below this level of roughly 50 million dollars a year.

Speaker #6: Okay. Well, thank you, guys. Good luck the rest of the year.

Austin Bohlig: Okay. Well, thank you, guys. Good luck the rest of the year.

Speaker #2: Thanks, Austin. We'll see you around.

Tom Stepien: Thanks, Austin.

Ricardo Rodriguez: Yeah. We'll see you around.

Speaker #3: Your next question comes from Ryan Finkst with B Reilly Security. Please state your question.

Operator 2: Your next question comes from Ryan Pfingst with B. Riley Securities. Please state your question.

Operator: Your next question comes from Ryan Pfingst with B. Riley Securities. Please state your question.

Speaker #5: Hey, good morning, guys. Thanks for taking the questions. Could you provide some commentary broadly on how you've progressed with nanotech to gear up for production with them?

Ryan Pfingst: Hey. Good morning, guys. Thanks for taking the questions. Could you provide some commentary broadly on how you've progressed with Nanotech to gear up for production with them and where you might stand related to signing up additional US or other allied manufacturing partners?

Speaker #5: And where you might stand related to signing up additional US or other allied manufacturing partners?

Speaker #2: Yeah. So nanotech is a cylindrical provider in Chico, California, north of Sacramento. Step one with them was to validate the cell and make sure that they can handle our silicon anode materials and produce a product that is on par with some of our CMs that do that in Asia.

Tom Stepien: Nanotech is a cylindrical provider in Chico, California, north of Sacramento. Step 1 with them was to validate the cell and make sure that they can handle our silicon anode materials and produce a product that is on par with some of our CMs that do that in Asia. They've done that. Percentage-wise, they are about 10% better. We have a 6.8 amp hour, those of who are keeping score here, which is above the 6.6 amp hour cell of its kind. This is a 21700 cell. It can handle up to 20 amps, and some of the competing cells can handle less. We are pleased with the technical performance of the cell that they make for us, that we make together.

Speaker #2: They've done that. Percentage-wise, they are about 10 percent better. We have a 6.8 amp-hour. Those of who are keeping score here, which is above the 6.6 amp-hour cell of its kind.

Speaker #2: This is a 21,700 cell. It can handle up to the 20 amps and some of the competing cells can handle less. So we are pleased with the technical performance of the cell that they make for us, that we make together.

Tom Stepien: We are in the process of scheduling demand. There is demand for that cell. There is demand for US cells, and they're a go-to company to do that. The second part on others, we have numerous discussions underway. We are being encouraged by the Department of Defense to continue to advance those discussions, and we are. We're not quite ready to announce anybody yet, but we are actively working on that. It'll be focused on the pouch cells. The pouch cells are about the size of a teabag. That's what the DIU has funded us to advance both in Fremont with our prototype line as well as manufacturing in Korea and in the US. So stay tuned.

Speaker #2: And we are in the process of scheduling demand. There is demand for that cell. There is demand for U.S. cells. And there are go-to companies to do that.

Speaker #2: The second part on others, we have numerous discussions underway. We are being encouraged by the Department of War to continue to advance those discussions.

Speaker #2: And we are. We're not quite ready to announce anybody yet. But we are actively working on that. It'll be focused on the pouch cells.

Speaker #2: The pouch cells are about the size of a tea bag. That's what the DIU has funded us to advance both in Fremont with our prototype line as well as manufacturing in Korea and in the US.

Speaker #2: So stay tuned. We are hard at work. And we will eventually be able to share news of who we're working with there.

Tom Stepien: We are hard at work, and we will eventually be able to share news of who we're working with there.

Speaker #5: I appreciate that detail, Tom. And then secondly, curious if you can talk about the potential opportunities that the recent defense budget request might provide you guys.

Ryan Pfingst: I appreciate that detail, Tom. Secondly, curious if you can talk about the potential opportunities that the recent defense budget request might provide you guys.

Speaker #2: Yeah. So as we all know, the big, beautiful bill puts at about a trillion dollars in defense spending. And a couple of analysts have commented that that is heavily weighted more biased to the unmanned aerial systems, which, of course, is our strength as we have commented in the call and previously.

Tom Stepien: Yeah. As we all know, the Big Beautiful Bill puts it about $1 trillion in defense spending, and a couple analysts have commented that that is heavily weighted, more biased to the unmanned aerial systems, which of course, is our strength, as we've commented in the call and previously. The proposed $500 billion addition has more of that coming. There's this group called DAWG, Defense Autonomous Working Group, I think it stands for, and that group is the proposed budget is something like $58 billion, which is the size of the Marine budget today. A lot of that is, again, with drones and counter-drones. That is our sweet spot. We're starting to see more of that come. We are in the right discussions.

Speaker #2: The proposed 500 billion dollar addition has more of that coming. There's this group called DAWG, Defense Autonomous Working Group. I think it stands for.

Speaker #2: And that group is the proposed budget is something like 58 billion dollars, which is the size of the marine budget today. A lot of that is, again, with drones and counter drones.

Speaker #2: So that is our sweet spot. So we're starting to see more of that come. We are in the right discussions. Ricardo and I were just on a call with some guys from the DOD just yesterday.

Tom Stepien: Ricardo and I were just on a call with some guys from the DoD just yesterday about some of this. We are in a privileged position. It's wonderful when the market is expanding and the product characteristics that we have line up. We're seeing really strong product market fit. We got more work to do. There's areas that we want to reinforce, but it's coming together and we feel good about where we are.

Speaker #2: About some of this. So we are in a privileged position. It's wonderful when the market is expanding and the product characteristics that we have line up.

Speaker #2: So we're seeing really strong product market fit. We got more work to do. There's areas that we want to reinforce. But it's coming together.

Speaker #2: And we feel good about where we are. And the other thing there Ryan is basically that you can apply the same rough rule that we mentioned to Derek, right?

Ricardo Rodriguez: The other thing, there, Ryan, is basically that you can apply the same rough rule that we mentioned, to Derek, right? Roughly 5% to 15% of the bill of materials is the battery inside of it. I don't think our current market analysis captures the effect of this budget request if it, if it were to be approved.

Speaker #2: Roughly 5 to 15 percent of the bill of materials is the battery inside of it. And I don't think our current market analysis captures the effect of this budget request if it were to be approved.

Speaker #5: Understood. I appreciate it, guys. I'll turn it back.

Ryan Pfingst: Understood. I appreciate it, guys. I'll turn it back.

Speaker #2: Anytime.

Ricardo Rodriguez: Anytime.

Speaker #6: Thanks, Ryan.

Tom Stepien: Thanks, Ryan.

Ricardo Rodriguez: Thanks.

Speaker #2: Thanks.

Speaker #3: Your next question comes from Eric Stein with Craig-Hallum. Please state your question.

Operator 2: Your next question comes from Eric Stine with Craig-Hallum. Please state your question.

Operator: Your next question comes from Eric Stine with Craig-Hallum. Please state your question.

Speaker #6: Hi, Tom. Hi, Ricardo. Thanks for sneaking me in here. Morning.

Eric Stine: Hi, Tom. Hi, Ricardo. Thanks for sneaking me in here again.

Tom Stepien: Hey, Eric.

Ricardo Rodriguez: Morning.

Speaker #2: Hey. Good morning. So I know last quarter you talked about or highlighted that for the 11 key components of your battery that you had reached NDAA compliance.

Eric Stine: Hey.

Tom Stepien: Absolutely.

Eric Stine: Good morning. I know last quarter you talked about or highlighted that for the 11 key components of your battery that you had reached NDAA compliance. I know that an objective there, a near-term objective, is to get those suppliers under long-term agreements. Just curious where that process stands, I guess, a couple months later.

Speaker #2: And I know that an objective there, a near-term objective, is to get those suppliers under long-term agreements. So, just curious where that process stands, I guess, a couple of months later?

Speaker #6: Yeah. So getting the 11 components, the internals, anode, cathode, separator, electrolyte, etc., is super important. And as you commented, Eric, we check that box last quarter.

Tom Stepien: Getting the 11 components, the internals, anode, cathode, separator, and electrolyte, et cetera, is super important. As you commented, Eric, we checked that box last quarter. We have several under contract, several of the major components. Not all, but several. The nice thing is that we have primary and secondary, and we have a very good understanding of the landed cost. What will it take to get Japanese anode powder to Korea? What would it take to get Korea anode powder to the US? We understand the details of that. We understand what they should be costing, and those that we have not entered into long-term agreements with, we're having the arm wrestling on the should cost versus the landed cost. We're progressing well.

Speaker #6: We have several undercontracts, several of the major components. Not all, but several. And the nice thing is that we have primary and secondary and we have a very good understanding of the landed cost, what will it take to get Japanese anode powder to Korea, what would it take to get Korea anode powder to the US.

Speaker #6: So we understand the details of that. We understand what they should be costing. And those that we have not entered into long-term agreements with, we're having the arm wrestling on the should cost versus the landed cost.

Speaker #6: So we're progressing well. We have shipped. The company has shipped full NDAA cells. And then as we bring on South Korea and really get them hitting their stride, one of our CMs there is delivering to customers including one of the customers that we talked about in the call and on slide three of the deck.

Tom Stepien: We have shipped, the company has shipped full NDA cells. As we bring on South Korea and really get them hitting their stride, one of our CMs there is delivering to customers, including one of the customers that we talked about in the call and on slide 3 of the deck. We need to get the other ones up to speed. Nanotech, as I mentioned, in the US, checks a full box on technology. We need to get them up to the delivery cadence that we want to get to. A lot of that will occur with these suppliers. Progression on track. The DIU is pleased with where we are, as evidenced by their continuing to provide us some incremental funding based upon good work done to date.

Speaker #6: We need to get the other ones up to speed. Nanotech, as I mentioned in the US, checks a full box on technology. We need to get them up to the delivery cadence that we want to get to.

Speaker #6: And a lot of that will occur with these suppliers. So progression on track. The DIU is pleased with where we are. As evidenced by their continuing to provide us some incremental funding based upon good work done today.

Eric Stine: That's great. Thank you for that. For me, my follow-up, you know, just on light electric vehicles. I know that obviously, you know, UAS, drones, robotics, all of those other end markets, you know, the growth profile is quite significant. I'm just curious, I mean, you're now into the Chinese market. It's, you know, I mean, it's not even arguably, it is the best electric mobility market. Is there a scenario where light electric vehicles, you know, could match, could exceed the growth in some of these other end markets, which, you know, arguably right now might be more top of mind?

Speaker #6: That's great. Thank you for that. And then for me, my follow-up, just on light electric vehicles, I know that obviously UAS, drones, robotics, all of those other end markets the growth profile is quite significant.

Speaker #6: But I'm just curious. I mean, you're now into the Chinese market. It's I mean, it's not even arguably. It is the best electric mobility market.

Speaker #6: Is there a scenario where light electric vehicles could match, could exceed the growth in some of these other end markets, which arguably right now might be more top of mind?

Speaker #2: Yeah. So it is a nice win. And it's a nice win as we commented in that region because it's super competitive. And there are other areas, right?

Tom Stepien: It is a nice win, and it's a nice win as we come at it in that region because it's super competitive. There are other areas, right? India, Vietnam, right? A lot of two-wheelers and three-wheelers there, and they care about some of the same things. We have aspirations of expanding our technology into those. Will it be dominant? I think at least for the next year or so, it will be second, maybe third place if some of the other segments that we show on slide 5, if we get some of the traction that we aim to get, right? Today, LEVs are number 2.

Speaker #2: India, Vietnam, right? A lot of two-wheelers and three-wheelers there. And they care about some of the same things. So we have aspirations of expanding our technology into those.

Speaker #2: Will it be dominant? I think at least for the next year or so, it will be second, maybe third place if some of the other segments that we show on slide five if we get some of the traction that we aim to get, right?

Speaker #2: So today, LEDs are number two. We'd like to think that as some of the other ones come on, robotics in particular, even some of the space activities, that they would rival LEDs.

Tom Stepien: We'd like to think that as some of the other ones come on, robotics, in particular, even some of the space activities, that they would rival LEVs. They are very early today. It'll probably stay at number 2 for the next year or so.

Speaker #2: They are very early today. So it'll probably stay at number two for the next year or so.

Speaker #6: Okay. I appreciate that. I guess good problem to have if it's because some of the other end markets growth is that significant. So okay.

Eric Stine: Okay. I appreciate that. I guess good problem to have if it's because some of the other end markets growth is that significant, okay. Thank you.

Speaker #6: Thank you.

Speaker #2: All right. Thanks, Eric.

Tom Stepien: All right. Thanks, Eric.

Speaker #3: Your next question comes from Chip Moore with Ross. Please state your question.

Operator 2: Your next question comes from Chip Moore with ROTH MKM. Please state your question.

Operator: Your next question comes from Chip Moore with ROTH MKM. Please state your question.

Chip Moore: Hey, good morning. Thanks for taking the question. Wanted to go back to, you know, that importance of standardizing for the government customers. Just maybe talk a bit more about that process and then, you know, the cells you've called out, any sense of size of opportunities, you know, those specific cells could translate to?

Speaker #5: Hey. Good morning. Thanks for taking the question. Wanted to go back to that importance of standardizing for the government customers. Just maybe talk a bit more about that process.

Speaker #5: And then the cells you called out—any sense of the size of opportunities those specific cells could translate to?

Speaker #6: Yeah. So the cylindrical cells are standardized as many of us know. So that flashlights and headlamps and night vision goggles all can be interchangeable.

Tom Stepien: Yeah. The cylindrical cells are standardized, as many of us know, so that flashlights, headlamps, and night vision goggles all can be interchangeable. That does not exist with the very popular pouch cells. Pouch cells tend to have a little bit higher energy density, and they're very popular with drones. That is exactly why the DIU funded us. We're the only company, as we've talked about in the past, that was funded under this program last year in a very competitive situation. The goal is to make pouch cells in the US to make them at our prototype line. Some of the funding that we received is to increase the capability and capacity about the prototype line in Fremont.

Speaker #6: That does not exist with the very popular pouch cells. Pouch cells tend to have a little bit higher energy density. And they're very popular with drones.

Speaker #6: And that is exactly why the DIU funded us. And we're the only company as we've talked about in the past that was funded under this program last year in a very competitive situation.

Speaker #6: The goal is to make pouch cells in the US to make them at our prototype line, some of the funding that we received is to increase the capability and capacity of the prototype line in Fremont.

Speaker #6: Standardized has been talked about. And in the discussions and the during Q1 that got solidified with the incremental $3 million to our grant, it's all about making standard cells in the pouch format and they are the size of the pouch cells.

Tom Stepien: Standardized has been talked about and in the discussions and the during Q1 that got solidified with the incremental $3 million to our grant. It's all about making standard cells in the pouch format, and they are the size of the pouch cells. A teabag is one of the smaller sized ones, ranging to an iPhone size pouch cell. It's about the same thickness, by the way, as an iPhone. Just so folks get a sense of what we're talking about. We are maybe the first, certainly among the first that are pushing standardized cells. We wanna make those available so that that interchangeability that we enjoy on the cylindrical side can be done. You don't wanna have to worry about batteries for a lot of these components.

Speaker #6: So again, a T-bag is one of the smaller size ones. Ranging to an iPhone size pouch cell. And it's about the same thickness, by the way, as an iPhone.

Speaker #6: So just so folks get a sense of what we're talking about. We are maybe the first, certainly among the first at our pushing standardized cells.

Speaker #6: We want to make those available so that that interchangeability that we enjoy on the cylindrical side can be done. You don't want to have to worry about batteries for a lot of these components and to get the friction out.

Tom Stepien: To get the friction out, that's a big part of what's happening in the defense land these days, is just make it easier to source components, batteries, cameras, motors. There are websites, Amazon-like websites for the military where they these components are available, just to add some of the efficiencies that we all see on our daily lives to the military side of things. We're all over that. Standardized pouch cells certainly makes sense to us. We will deliver to that incremental funding, make these cells available. It's very much in line with our interest as a company and certainly the Department of Defense's interest for the reasons we mentioned.

Speaker #6: That's a big part of what's happening in the defense land these days is just make it easier to source components, batteries, cameras, motors, there are websites, Amazon-like websites for the military where they these components are available just to add some of the efficiencies that we all see on our daily lives to the military side of things.

Speaker #6: So we're all over that standardized pouch cells. Certainly makes sense to us. We will deliver to that incremental funding, make these cells available. It's very much in line with our interests as a company and certainly the Department of War's interest for the reasons we mentioned.

Speaker #5: Very helpful, Tom. And maybe for my follow-up, I think in your closing remarks, you talked about mobility-focused platforms and qualifications. Is that mostly LEDs, to your point on the last question?

Chip Moore: Very helpful, Tom. Maybe for my follow-up, I think in, you know, your closing remarks, you talked about mobility-focused platforms and qualifications. Is that mostly LEVs, to your point on the last question, or should we think about broader mobility applications? Thanks.

Speaker #5: Or should we think about broader mobility applications? Thanks.

Speaker #2: Yeah. It's LEDs. It's also some of the robotics, right? I mentioned that we're going to some of the first conferences. It's certainly early days.

Tom Stepien: It's LEVs. It's also some of the robotics, right? I mentioned that we're going to some of the first conferences. It's certainly early days. We're getting smarter. We have some really good discussions going on. Look, anything that moves, and we all know that we have that in our daily lives, should be able to benefit from a higher energy density, which is our claim to fame. Sometimes it's also a better volumetric energy density. You only have so much space, but if you can get more energy out of that space, out of that volume, then that should win. These are higher performing cells, so we're at the high end of the market. That's okay.

Speaker #2: We're getting smarter. We have some really good discussions going on. But look, anything that moves, and we all know that we have that in our daily lives, should be able to benefit from higher energy density, which is our claim to fame.

Speaker #2: And sometimes it's also better volumetric energy density. You only have so much space. But if you can get more energy out of that space, out of that volume, then that should win.

Speaker #2: These are higher performing cells. So we're at the high end of the market. And that's okay. So we're not we don't make sense today for large electric vehicles like we would drive.

Tom Stepien: We're not, we don't make sense today for large electric vehicles like we would drive, but for the light electric vehicles, that certainly makes sense. For robotics, it makes sense. As we said, when you pay per kilogram to get something up in space, if you can save some kilograms, but you have the same energy, that should be a win. That's how we think about these markets, and that's how we try to reference our advantage, and then listen to customers to see, of course, if it resonates.

Speaker #2: But for the light electric vehicles, that certainly makes sense for robotics. It makes sense. As we said, when you pay per kilogram to get something up in space, if you can save some kilograms, but you have the same energy, that should be a win.

Speaker #2: That's how we think about these markets. And that's how we try to reference our advantage and then listen to customers to see, of course, if it resonates.

Speaker #5: Thank you.

Chip Moore: Thank you.

Speaker #3: Your next question comes from Ted Jackson with Northland Securities. Please state your question.

Operator 2: Your next question comes from Ted Jackson with Northland Securities. Please state your question.

Operator: Your next question comes from Ted Jackson with Northland Securities. Please state your question.

Speaker #7: Thanks very much. Congrats on the quarter. So my first question and my first question is around the Fremont plant and the overhead costs with SIMEX.

Ted Jackson: Thanks very much. Congrats on the quarter.

Tom Stepien: Thanks, Ted.

Ted Jackson: my first question is around the Fremont plant and, you know, the overhead costs with SiMaxx. I mean, is there a point where you just go to a, you know, you do an asset impairment and write it down and, you know what I mean? Like, how does that play out? You know, you've got equipment in there that's very bespoke for the manufacturing of that product. That product's clearly fading out. You know what I mean? It's a sunk cost. It's not like it impacts cash flow. At some point, is there, you know, a case to be made to where, you know, you either, you know, write down, you know, the assets that are in there or, you know what I mean, like, or just get rid of them, you know, as you get rid of SiCore, I mean, SiMaxx. That's my first question.

Speaker #7: I mean, is there a point where you just go to a you do an asset impairment and write it down? And you know what I mean?

Speaker #7: How does that play out? You've got equipment in there that's very bespoke for the manufacturing of that product. That product's clearly fading out. You know what I mean?

Speaker #7: It's a subcost. It's not like it impacts cash flow, but at some point, is there a case to be made to where you either write down the assets that are in there or you know what I mean?

Ted Jackson: At some point, is there, you know, a case to be made to where, you know, you either, you know, write down, you know, the assets that are in there or, you know what I mean, like, or just get rid of them, you know, as you get rid of SiCore, I mean, SiMaxx. That's my first question.

Speaker #7: And then or just get rid of them as you get rid of Sycor. I mean, SIMEX. That's my first question.

Speaker #6: Yeah. That's a good question. The asset impairment actually happened in Q4 of last year. You may have seen our DNA went down pretty meaningfully from well over a million dollars to only about 800K.

Tom Stepien: Yeah, that's a good question. The asset impairment actually happened in Q4 of last year. You may have seen our D&A went down pretty meaningfully from, you know, well over $1 million to only about 800K. This was in essence just.

Speaker #6: And so this was, in essence, just this is where accounting is really an art more than a science. But we literally allocated the cost of Fremont by square foot and what the square foot is used for now to drive the allocation.

Ricardo Rodriguez: You know, this is where accounting is really an art more than a science. We literally allocated the cost of Fremont by square foot and what that square foot is used for now to drive the allocation. We feel pretty good with where we landed here for Q1 and carrying that going forward until we start producing a little bit of SiCore in Fremont again late this year, early next year.

Speaker #6: And we feel pretty good with where we landed here for Q1. And carrying that going forward until we start producing a little bit of Sycor in Fremont again late this year, early next year.

Ted Jackson: Mm-hmm. Is there a roadmap to just, you know, get out of that product, or you're just kinda tied to it because of the customer base that's already there?

Speaker #7: And is there a roadmap to just get out of that product, where you're just kind of tied to it because of the customer base that's already there?

Speaker #6: Oh, we'll definitely be out of it here in Q1. So the last 600,000 dollars of revenue were delivered in Q1. Quite a bit of that was inventory that was produced in Q4.

Ricardo Rodriguez: We'll definitely be out of it here in Q1. The last $600,000 of revenue were delivered in Q1. Quite a bit of that was inventory that was produced in Q4. We should be out of the woods on SiMaxx.

Speaker #6: And so we should be out of the woods on SIMEX. Yeah. We converted all of our customers from SIMEX to Sycor. Yeah.

Tom Stepien: Yeah. We converted all of our customers from SiMaxx to SiCore.

Ricardo Rodriguez: Yeah.

Ted Jackson: Okay. Okay, that's good news. Excuse me. My second question, on your battery pack partners, I know that, you know, that's a good way to leverage your business and, you know, grow revenue. I guess my question on that is can you kind of walk us through maybe a timeline and, you know, like maybe how many partners do you have? You know, maybe kind of what percentage of your revenue's coming from that and where it's come from. How you see, you know, those partners helping drive your forward revenue. Thanks.

Speaker #7: Okay. Okay. That's good news. Excuse me. My second question, on your battery pack partners, I know that that's a good way to leverage your business and grow revenue.

Speaker #7: I guess my question on that is, can you kind of walk us through maybe a timeline and maybe how many partners do you have?

Speaker #7: Maybe kind of what percentage of your revenue is coming from that and where it's come from? And how you see those partners revenue? Thanks.

Speaker #5: Yeah. So some of our customers are vertically integrated, take our sales, build them into packs. Add some electronics to manage the battery. To worry about, "Okay.

Tom Stepien: Yeah. Some of our customers are vertically integrated, take our cells, build them into packs, add some electronics to manage the battery, to worry about, okay, is the battery full? Is it empty? What is the state of charge, et cetera. Other of our customers do that through pack partners that we have, who in turn receive our cells, so they're an intermediary. There are about 40 different pack companies that we work with in any given quarter. About 6 to 10 of those are major volume pack providers, those that we have under a certain program. There's 3 or 4 on our website that we have worked with. We're formalizing that program so that there are standard gold, silver, bronze type of partners, where we share our roadmap with the pack partners.

Speaker #5: It's a battery full. Is it empty? What is the state of charge?" etc. Other of our customers do that through pack partners that we have, who in turn receive our sales.

Speaker #5: So they're an intermediary. There are about 40 different pack companies that we work with in any given quarter. About 6 to 10 of those are major volume pack providers.

Speaker #5: Those that we have under a certain program. There’s three or four on our website that we have worked with. We’re formalizing that program so that there are standard Gold, Silver, Bronze type of partners where we share our roadmap with the pack partners.

Speaker #5: Those that we are close to will be in our booth at shows. We've had joint press releases with a couple of the pack partners that we've worked with closely.

Tom Stepien: Those that we are close to will be in our booth at shows. We've had joint press releases with a couple of the pack partners that we work with closely. They are a multiplier, a force multiplier for us because they often are asked by component companies, Gosh, whose cells do you recommend? They will listen to their customers and then say, Well, look, if you want to optimize for energy density, there's really only one choice here. They help pull and add to our customer base. We like that relationship. It allows us to focus on what we do really well, which is make these industry-leading cells. It allows them to add the level of customization. We want this connector, we have this battery management system. We need it in this size or shape.

Speaker #5: They are a multiplier, a force multiplier for us because they often are asked by component companies like, "Gosh, who sells do you recommend?" So they will listen to their customers and then say, "Well, look, if you want to optimize for energy density, there's really only one choice here." So they help pull and add to our customer base.

Speaker #5: So we like that relationship. It allows us to focus on what we do really well, which is make these industry-leading cells. It allows them to add the level of customization where we want this connector.

Speaker #5: We have this battery management system. We need it in this size or shape. You'll often hear that you need to match voltages and to the voltages of the systems.

Tom Stepien: You'll often hear that you need to match voltages and to the voltages of the systems. They'll put 6 of our batteries in series and then put 2 of those groups in parallel in order to do that. They do all that customization. They're great partners, and we're formalizing even stronger our relationship with them.

Speaker #5: So they'll put six of our batteries in series and then put two of those groups in parallel in order to do that. They do all that customization.

Speaker #5: So the great partners and we're formalizing even stronger our relationship with them.

Speaker #7: Is it fair to say that as a percentage of your revenue, if they grown in terms of how they the percentage of revenue that's coming through them and you talk about them being a force multiplier and they're allowing you to, let's just say, reach a customer set that you might not be able to reach otherwise?

Ted Jackson: Is it fair to say that they, as a percentage of your revenue, have they grown in terms of how they, you know, the percentage of revenue that's coming through them and, you know, you talk about them being a force multiplier, and they're allowing you to, let's just say, reach a customer set that you might not be able to reach otherwise?

Speaker #6: Yeah. For standard cell sizes, they're a key driver, and they and we do expect their portion of sales to increase on some specific cell sizes.

Ricardo Rodriguez: Yeah. For standard cell sizes, they're a key driver, and we do expect their portion of sales to increase on some specific cell sizes.

Speaker #7: Okay. All right. Thanks very much. Got my two questions.

Ted Jackson: Okay. All right. Thanks very much. Got my two questions.

Speaker #6: Absolutely. Thanks, Ted. Thanks, Ted.

Ricardo Rodriguez: Absolutely. Thanks, Ted.

Tom Stepien: Thanks, Ted.

Speaker #1: Your next question comes from Ahmed Dayal with HC Wainwright. Please state your question.

Operator 2: Your next question comes from Amit Dayal with H.C. Wainwright. Please state your question.

Operator: Your next question comes from Amit Dayal with H.C. Wainwright. Please state your question.

Speaker #8: Hey, good morning, guys. Thank you for taking my questions. On the bulk cell performance, should we actually hey, hey, hey, Ricardo, good morning. The bulk cell performance, should we expect this to match or even improve over the cylindrical format?

Amit Dayal: Good morning, guys. Thank you for taking my questions. On the pouch cell performance.

Tom Stepien: Amit?

Amit Dayal: Good morning, Ricardo. The pouch cell performance, should we expect this to match or even improve over the cylindrical format?

Speaker #7: Yeah. So because the bulk cells have less overhead, they don't have any medical metal can, you take a little bit of weight out and the gravimetric energy density tends to be higher.

Tom Stepien: Because the pouch cells have less overhead, they don't have a metal can, you take a little bit of weight out, and the gravimetric energy density tends to be higher. If you look at the 450 watt-hours per kilogram, those cells are pouch in format. The cylindricals tend to be 330 to 350, so a bit lower, again, because of some of the overheads. That's where the pouch lines up, and that's why the pouch are preferred for some of the high-end drones, cause you're really trying to eke out any weight that you can. If you can use a carbon fiber container for the pack housing, versus metal, a little bit more expensive, but it's lighter.

Speaker #7: So if you look at the 450 watt-hours per kilogram, those cells are pouch in format. The cylindricals tend to be 330 to 350. So a bit lower, again, because of some of the overheads.

Speaker #7: That's where the pouch lines up. And that's why the pouch are preferred for some of the high-end drones because you really trying to eke out any weight that you can.

Speaker #7: If you can use a carbon fiber container to for the pack housing, versus metal, a little bit more expensive, but it's lighter. Those choices again, back to the last question about pack partners, those choices would be made with the pack partners so that's super important.

Tom Stepien: Those choices, again, back to the last question about pack partners, those choices would be made with the pack partners, so that's super important. If you're trying to max energy density, you would choose a pouch.

Speaker #7: So if you're trying to max energy density, you would choose a pouch.

Speaker #8: Understood, Tom. Thank you. And just as a follow-up to that, once the bulk cell is cemented and confirmed all the design, etc., is that when you get a little bit more aggressive about sort of building the pipeline for maybe the US non-drone defense opportunity?

Amit Dayal: Understood, Tom. Thank you. Just as a follow-up to that, once the pouch cell is, you know, cemented and, you know, confirmed all the design, et cetera, is that when you get a little bit more aggressive about sort of building the pipeline for maybe the US non-drone defense opportunity?

Speaker #7: Yes. So that's where some of the standardization comes in. So standardized cells and then putting them into standard packs. Can really make a lot of sense.

Tom Stepien: Yeah. That's where some of the standardization comes in. Standardized cells and then putting them into standard packs can really make a lot of sense. There's standard voltages in automotive, right? We all know 12 volts and 24 volts, and even the data centers, they've got 800 volts standards that are either here or emerging. The same thing is happening in drone land, where there are preferred voltages and components. If you have standardized cells, you can put them together into packs that meet those voltages, so you can be part of this ecosystem.

Speaker #7: There's standard voltages in automotive, right? We all know 12 volts and then 24 volts, and then even the data centers, 800 volts standards that are either here or emerging.

Speaker #7: The same thing is happening in drone land, where there are preferred voltages and components, and then if you have standardized cells, you can put them together into packs that meet those voltages.

Speaker #7: So you can be part of this ecosystem. Again, all that's focused on adding some of the efficiencies, taking out some of that friction on the engineering side.

Tom Stepien: All that's focused on adding some of the efficiencies, taking out some of that friction on the engineering side, so you can get these iterative better drones available with using off-the-shelf, but in our case, premium products to maximize the missions that these crafts might be addressing.

Speaker #7: So you can get these iterative better drones available with using off-the-shelf, but in our case, premium products to maximize the emissions that these crafts might be addressing.

Speaker #8: Thank you. Great to see the execution, guys. Congratulations. I'll take my other questions offline. Thank you.

Amit Dayal: Thank you. Great to see the execution, guys. Congratulations. I'll take my other questions offline. Thank you.

Speaker #7: Okay.

Tom Stepien: Okay. Thanks, Tom.

Speaker #1: Thanks, Tom.

Operator 2: Thank you.

Operator: Thank you.

Speaker #7: Thank you. Take care.

Tom Stepien: Take care.

Speaker #1: Thank you at this time. This concludes our question-and-answer session. If you have any additional questions, you may contact Amprius's investor relations team at ir@amprius.com.

Operator 2: Thank you. At this time, this concludes our question and answer session. If you have any additional questions, you may contact Amprius' investor relations team at ir@amprius.com. I would now like to turn the call back over to Tom for his closing remarks.

Operator: Thank you. At this time, this concludes our question and answer session. If you have any additional questions, you may contact Amprius' investor relations team at ir@amprius.com. I would now like to turn the call back over to Tom for his closing remarks.

Speaker #1: I'd now like to turn the call back over to Tom for his closing remarks.

Speaker #7: I want to thank all of our shareholders, employees, and partners for their continued support. At Amprius, we believe the next decade belongs to those who push the limits of what is possible.

Tom Stepien: I wanna thank all of our shareholders, employees, and partners for their continued support. At Amprius, we believe the next decade belongs to those who push the limits of what is possible. That's exactly what we intend to do. Thank you for your time and attention this morning. Operator.

Speaker #7: And that's exactly what we intend to do. Thank you for your time and attention this morning. Operator?

Operator 2: Thank you for joining us today for Amprius Technologies' Q1 2026 Earnings Conference Call.

Operator: Thank you for joining us today for Amprius Technologies' Q1 2026 Earnings Conference Call.

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Amprius

AMPX

Earnings

Q1 2026 Amprius Technologies Inc Earnings Call

Thursday, May 7th, 2026 at 12:30 PM

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Amprius

Earnings