First Quarter of 2022 Highlights
- Closed business combination with Ivanhoe Capital Acquisition
Corporation in early February. Quarter ending cash position of $426
million expected to provide sufficient liquidity to reach
commercialization
- Announced an “A-sample” joint development agreement (JDA) with
Honda to develop Li-Metal batteries as part of Honda’s next
generation battery strategy. This is our third JDA and follows
agreements with General Motors and Hyundai
- Formed SES Korea with plans to build a pre-production facility
in South Korea to support our planned growth
- Completed Phase 1 of our Pilot Facility in Shanghai, providing
0.2GWh of capacity to produce the Li-Metal cells ranging in size
from 50Ah to more than 100Ah
SES AI Corporation (NYSE: SES), a global leader in the
development and manufacturing of high-performance lithium-metal
(Li-Metal) rechargeable batteries for electric vehicles (EVs) and
other applications announced today its financial results for the
first quarter ended March 31, 2022.
“It’s been a very busy and exciting time for our company,” said
Dr. Qichao Hu, Chairman and Chief Executive Officer of SES. “In
early February we completed the merger with Ivanhoe Capital
Acquisition Corporation and started trading on the New York Stock
Exchange. This was the culmination of a 10‑year journey, and I
believe the best is yet to come. I cannot say thank you enough to
the employees at our Boston headquarters, Shanghai Giga
manufacturing facility, and at SES Korea. I’d also like to thank
our OEM partners that have been working along-side us for many
years and have supported our practical approach to developing
Li-Metal batteries.”
Financial Highlights:
SES reported an operating loss for the quarter of $19.2 million,
primarily driven by general and administrative expenses of $15.1
million and research and development expenses of $4.1 million. Net
loss attributable to common stockholders was $27.0 million or a
loss of $0.12 per share.
SES ended the quarter with cash and cash equivalents of $426
million, which it expects to use to support the continued
development of Li-Metal battery technology.
Outlook:
SES is targeting the following milestones over the next
12‑months:
- Deliver and optimize A-samples for our 3 JDA partners
- Begin to transition from A-samples to B-samples
- Continue to establish supply chains for key materials
To execute on this plan, SES estimates that in 2022, capital
expenditures will range from $25 million to $35 million, and cash
used in operations will be between $70 million and $80 million. As
a result, our use of cash for the year is expected to range between
$95 million and $115 million.
Webcast and Conference Call
SES will host a conference call at 5:00 p.m. EDT today, May 12,
2022. Participating on the call will be Qichao Hu, Chief Executive
Officer, and Jing Nealis, Chief Financial Officer.
Interested investors and other parties can listen to a webcast
of the live conference call through SES’s Investor Relations
website by clicking here: SES AI Corporation 1Q22 Earnings
(on24.com)
The conference call can be accessed live over the phone by
dialing +1‑844‑200‑6205 (domestic) or +1‑929‑526‑1599
(international).
A recording of the conference call will be available shortly
after the completion of the call at investors.ses.ai
About SES
SES is a global leader in development and production of
high-performance Li-Metal rechargeable batteries for electric
vehicles (EVs) and other applications. Founded in 2012, SES is an
integrated Li-Metal battery manufacturer with strong capabilities
in material, cell, module, AI-powered safety algorithms and
recycling. Formerly known as Solid Energy Systems, SES is
headquartered in Boston and has operations in Singapore, Shanghai,
and Seoul. To learn more about SES, please visit:
ses.ai/investors/
SES may use its website as a distribution channel of material
company information. Financial and other important information
regarding SES is routinely posted on and accessible through the
Company’s website at www.ses.ai. Accordingly, investors should
monitor this channel, in addition to following SES’s press
releases, Securities and Exchange Commission filings and public
conference calls and webcasts.
Forward-looking statements
All statements other than statements of historical facts
contained in this press release are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, without
limitation, statements relating to expectations for future
financial performance, business strategies or expectations for our
business. These statements are based on the beliefs and assumptions
of the management of SES. Although SES believes that its plans,
intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, it cannot assure you
that it will achieve or realize these plans, intentions or
expectations. These statements constitute projections, forecasts
and forward-looking statements, and are not guarantees of
performance. Such statements can be identified by the fact that
they do not relate strictly to historical or current facts. When
used in this press release, words such as “anticipate”, “believe”,
“can”, “continue”, “could”, “estimate”, “expect”, “forecast”,
“intend”, “may”, “might”, “plan”, “possible”, “potential”,
“predict”, “project”, “seek”, “should”, “strive”, “target”, “will”,
“would” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking.
You should not place undue reliance on these forward-looking
statements. Should one or more of a number of known and unknown
risks and uncertainties materialize, or should any of our
assumptions prove incorrect, our actual results or performance may
be materially different from those expressed or implied by these
forward-looking statements. Some factors that could cause actual
results to differ include, but are not limited to the following
risks: changes in domestic and foreign business, market, financial,
political and legal conditions, including but not limited to the
ongoing conflict between Russia and Ukraine; risks relating to the
uncertainty of the projected financial information with respect to
SES; risks related to the development and commercialization of
SES’s battery technology and the timing and achievement of expected
business milestones; the effects of competition on SES’s business;
the ability of SES to issue equity or equity-linked securities or
obtain debt financing in the future; the ability of SES to
integrate its products into electric vehicles (“EVs”); the risk
that delays in the pre-manufacturing development of SES’s battery
cells could adversely affect SES’s business and prospects;
potential supply chain difficulties; risks resulting from SES’s
joint development agreements and other strategic alliances, if such
alliances are unsuccessful; the quickly evolving battery market;
SES’s ability to accurately estimate future supply and demand for
its batteries; SES’s ability to develop new products on an ongoing
basis in a timely manner; product liability and other potential
litigation, regulation and legal compliance; SES’s ability to
effectively manage its growth; SES’s ability to attract, train and
retain highly skilled employees and key personnel; the willingness
of vehicle operators and consumers to adopt EVs; developments in
alternative technology or other fossil fuel alternatives; SES’s
ability to meet certain motor vehicle standards; a potential
shortage of metals required for manufacturing batteries; risks
related to SES’s intellectual property; the uncertainty in global
economic conditions and risks relating to health epidemics,
including the COVID‑19 pandemic and any operational interruptions;
risks related to SES’s business operations outside the United
States, including in China; SES has identified material weaknesses
in its internal control over financial reporting and may identify
material weaknesses in the future or otherwise fail to maintain an
effective system of internal controls; compliance with certain
health and safety laws; changes in U.S. and foreign tax laws; and
the other risks described in “Part I, Item 1A. Risk Factors” in our
annual report on Form 10‑K for the fiscal year ended December 31,
2021 filed with the Securities and Exchange Commission (“SEC”) on
March 31, 2022 and other documents filed from time to time with the
SEC. There may be additional risks that SES presently knows and/or
believes are immaterial that could also cause actual results to
differ from those contained in the forward-looking statements. In
addition, forward-looking statements reflect SES’s expectations,
plans or forecasts of future events and views only as of the date
of this press release. SES anticipates that subsequent events and
developments will cause its assessments to change. However, while
SES may elect to update these forward-looking statements at some
point in the future, SES specifically disclaims any obligation to
do so. These forward-looking statements should not be relied upon
as representing SES’s assessments as of any date subsequent to the
date of this press release.
SES AI Corporation Condensed
Consolidated Balance Sheet(1) (Unaudited)
(In thousands, except share and per share
amounts)
March 31, 2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
426,076
$
160,497
Receivable from related party
7,537
7,910
Prepaid expenses and other current
assets
7,416
1,563
Total current assets
441,029
169,970
Property and equipment, net
15,991
12,494
Intangible assets, net
1,708
1,626
Right-of-use assets, net
11,468
—
Restricted cash
475
475
Deferred offering costs
—
5,711
Other assets
3,742
3,077
Total assets
$
474,413
$
193,353
Liabilities, redeemable convertible
preferred stock and stockholders’ deficit
Current liabilities:
Accounts payable
$
16,756
$
4,712
Accrued compensation
2,766
2,117
Operating leases, current
1,693
—
Accrued expenses and other current
liabilities
6,465
4,156
Total current liabilities
27,680
10,985
Sponsor Earn-Out liability
44,081
—
Operating leases, non-current
10,109
—
Other liabilities
137
749
Total liabilities
82,007
11,734
Commitments and contingencies (Note 8)
Redeemable Convertible Preferred Stock,
$0.000001 par value – none authorized, issued and outstanding as of
March 31, 2022; 213,960,286 shares authorized, issued and
outstanding as of December 31, 2021 (aggregate liquidation
preference of $271,148 as of December 31, 2021
—
269,941
Stockholders’ equity (deficit):
Preferred stock, $0.0001 par value;
20,000,000 shares authorized, none issued and outstanding as of
March 31, 2022; none authorized, issued and outstanding as of
December 31, 2021
—
—
Common stock: Class A shares, $0.0001 par
value, 2,100,000,000 shares authorized as of March 31, 2022;
304,011,931 shares and 22,261,480 shares issued and outstanding as
of March 31, 2022 and December 31, 2021, respectively; Class B
shares, $0.0001 par value, 200,000,000 authorized as of March 31,
2022; 43,881,251 shares and 39,881,455 shares issued and
outstanding as of March 31, 2022 and December 31, 2021,
respectively
34
6
Additional paid-in capital
513,222
5,598
Accumulated other comprehensive income
476
367
Accumulated deficit
(121,326
)
(94,293
)
Total stockholders' equity (deficit)
392,406
(88,322
)
Total liabilities, redeemable convertible
preferred stock, and stockholders' equity (deficit)
$
474,413
$
193,353
SES AI Corporation Condensed
Consolidated Statements of Operations and Comprehensive Loss(1)
(Unaudited)
Three months ended March
31,
(In thousands, except share and per share
amounts)
2022
2021
Operating expenses:
Research and development
$
4,067
$
2,983
General and administrative
15,130
1,456
Total operating expenses
19,197
4,439
Loss from operations
(19,197
)
(4,439
)
Other (expense) income:
Interest income
23
2
Loss on change of fair value of Sponsor
Earn-Out liability
(7,688
)
—
Other (expense) income, net
(160
)
842
Total other (expense) income, net
(7,825
)
844
Loss before income taxes
(27,022
)
(3,595
)
Provision for income taxes
(11
)
—
Net loss
(27,033
)
(3,595
)
Other comprehensive income (loss):
Foreign currency translation
adjustment
109
(14
)
Total comprehensive loss
(26,924
)
(3,609
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.12
)
$
(0.06
)
Weighted-average shares outstanding, basic
and diluted
219,180,317
60,781,975
SES AI Corporation Condensed
Consolidated Statements of Cash Flows(1) (Unaudited)
Three months ended March
31,
(In thousands)
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(27,033
)
$
(3,595
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
410
440
Loss on change of fair value of Sponsor
Earn-Out liability
7,688
—
Stock-based compensation
3,186
72
PPP note forgiveness
—
(840
)
Changes in operating assets and
liabilities that provide (use) cash:
Receivable from related party
373
—
Prepaid expenses and other assets
(6,453
)
(405
)
Accounts payable
5,448
(518
)
Accrued compensation
649
994
Operating leases liabilities
(315
)
—
Accrued expenses and other liabilities
1,232
713
Net cash used in operating activities
(14,815
)
(3,139
)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(2,542
)
(265
)
Purchase of short-term investments
—
(810
)
Maturities of short-term investments
—
13,101
Purchases of intangible assets
(117
)
—
Net cash (used in) provided by investing
activities
(2,659
)
12,026
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Business Combination and
PIPE Financing
282,940
—
Proceeds from stock option exercises
4
—
Net cash provided by financing
activities
282,944
—
Effect of exchange rates on cash and cash
equivalents
109
(190
)
Net increase in cash, cash equivalents and
restricted cash
265,579
8,697
Cash, cash equivalents and restricted cash
at beginning of period
161,044
2,728
Cash, cash equivalents and restricted cash
at end of period
$
426,623
$
11,425
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING INFORMATION:
Accounts payable and accrued expenses
related to purchases of property and equipment
$
1,983
$
—
Conversion of Redeemable Convertible
Preferred Stock to shares of Class A Common Stock
$
(269,941
)
$
—
AP and accrued expenses related to
professional fees
$
(12,954
)
$
—
Liabilities of Ivanhoe acquired in the
Business Combination
$
(387
)
$
—
(1) The business combination between SES AI Corporation’s
(“SES”) predecessor, SES Holdings Pte. Ltd. (“Old SES”), and
Ivanhoe Capital Acquisition Corp. (“Ivanhoe”), which closed on
February 3, 2022 (the “Closing”), is accounted for as a reverse
recapitalization under U.S. GAAP. Under this method of accounting,
Ivanhoe has been treated as the “acquired” company for financial
reporting purposes. Accordingly, for accounting purposes, the
financial statements of SES represent a continuation of the
financial statements of Old SES with the business combination being
treated as the equivalent of Old SES issuing shares for the net
assets of Ivanhoe, accompanied by a recapitalization. The net
assets of Ivanhoe are stated at historical cost, with no goodwill
or other intangible assets recorded. Operations prior to the
Closing are those of Old SES. As a result, the unaudited condensed
consolidated financial statements reflect (i) the historical
operating results of Old SES prior to the Closing; (ii) the
combined results of SES and Old SES following the Closing; (iii)
the assets and liabilities of Old SES at their historical cost; and
(iv) share and per share amounts prior to the Closing have been
retroactively converted using the exchange ratio for the business
combination. See our Form 10-Q for the three months ended March 31,
2022 for additional information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220512005997/en/
Investors: Eric Goldstein ericgoldstein@ses.ai
Media: Irene Lam ilam@ses.ai
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