QuantumScape Corp

Previous wording

We are developing next-generation battery technology for EVs and other applications. We believe that our technology will enable a new category of battery that meets the requirements for broader market adoption. The lithium-metal solid-state battery technology that we are developing is being designed to offer greater energy density, faster charging, and greater safety when compared to today’s conventional lithium-ion batteries.

Current wording

We are developing next-generation battery technology for electric vehicles (“EVs”) and other applications. We believe that our technology will enable a new category of battery that meets the requirements for broader market adoption. The lithium-metal solid-state battery technology that we are developing is being designed to offer greater energy density, faster charging, and greater safety when compared to today’s conventional lithium-ion batteries.

Previous wording

We are a development-stage company with no revenue to date, have incurred a net loss from operations of approximately $134.5 million and $266.4 million for the three and six months ended June 30, 2024, respectively, and an accumulated deficit of approximately $3.1 billion from our inception through June 30, 2024. We expect to incur significant expenses and continuing losses for the foreseeable future.

Current wording

We are a development-stage company with no revenue to date, have incurred a net loss from operations of approximately $130.2 million and $396.5 million for the three and nine months ended September 30, 2024, respectively, and an accumulated deficit of approximately $3.2 billion from our inception through September 30, 2024. We expect to incur significant expenses and continuing losses for the foreseeable future.

Previous wording

We have demonstrated capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer cell cycling data, and in 2022, shipped our first 24-layer A0 prototype battery cells to multiple automotive OEMs for testing. Following that shipment, we continued focusing our research and development on subsequent generations of prototype samples incorporating advances in cell functionality, process and reliability, as well as bringing online the manufacturing capability of our pre-pilot production facility (“QS-0”) in San Jose, California. In 2023, we announced our first targeted commercial product, the QSE-5, a cell with a capacity of approximately 5 amp-hours.

Current wording

We have demonstrated capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer cell cycling data, and in 2022, shipped our first 24-layer A0 prototype battery cells to multiple automotive original equipment manufacturers (“OEMs”) for testing. Following that shipment, we continued focusing our research and development on subsequent generations of prototype samples incorporating advances in cell functionality, process and reliability, as well as bringing online the manufacturing capability of our pre-pilot production facility (“QS-0”) in San Jose, California. In 2023, we announced our first targeted commercial product, the QSE-5, a cell with a capacity of approximately 5 amp-hours.

Previous wording

Cell layer count and dimensions. We have demonstrated capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer solid-state cells in commercially relevant areas (ranging from approximately 60x75mm to 70x85mm), and in 2022, shipped 24-layer A0 prototype battery cells to multiple automotive OEMs for testing. In order to advance the maturity of our prototype cells and produce commercially viable solid-state battery cells, we must produce battery cells with dozens of layers to achieve target cell capacities set by our customers and may have to vary cell layer count and dimensions; while we target our first commercial product, the QSE-5, to have approximately 5 amp-hours of capacity, the exact number of layers and dimensions will vary and depend upon customer specifications, cell design considerations, and other factors. We will need to overcome production challenges to produce sufficient volumes of our solid-state electrolyte-separators and prototype battery cells to complete development of our first commercial product and for customer evaluation and product qualification purposes, as well as subsequent cell designs that may require different layer counts and dimensions.

Current wording

Cell layer count and dimensions. We have demonstrated capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer solid-state cells in commercially relevant areas (ranging from approximately 60x75mm to 70x85mm). In order to advance the maturity of our prototype cells and produce commercially viable solid-state battery cells, we must produce battery cells that achieve target cell capacities set by our customers and we may have to vary cell layer count and dimensions; while we target our first commercial product, the QSE-5, to have approximately 5 amp-hours of capacity, the exact number of layers and dimensions will vary and depend upon customer specifications, cell design considerations, and other factors. We will need to overcome production challenges to produce sufficient volumes of our solid-state electrolyte-separators and prototype battery cells to complete development of our first commercial product and for customer evaluation and product qualification purposes, as well as subsequent cell designs that may require different layer counts and dimensions.

Previous wording

The solid-state electrolyte-separator is being designed to enable our ‘anode-free’ architecture. As manufactured, our solid-state battery cell has no anode; the lithium-metal anode is formed during the first charge of the cell. The lithium that forms the anode comes from the cathode material we purchase. Eliminating the anode bill of materials and associated manufacturing costs found in conventional lithium-ion cells could result in a meaningful cost of goods sold (COGS) advantage for us. In addition, our solid-state battery cell is being designed to reduce the time and capital-intensity of the formation and aging process step as compared to conventional lithium-ion manufacturing.

Current wording

The solid-state electrolyte-separator is being designed to enable our ‘anode-free’ architecture. As manufactured, our solid-state battery cell has no anode; the lithium-metal anode is formed during the first charge of the cell. The lithium that forms the anode comes from the cathode material we purchase. Eliminating the anode bill of materials and associated manufacturing costs found in conventional lithium-ion cells could result in a meaningful cost of goods sold (COGS) advantage once sufficient scale and process maturity are achieved. In addition, our solid-state battery cell is being designed to reduce the time and capital-intensity of the formation and aging process step as compared to conventional lithium-ion manufacturing.

Previous wording

QS-0 is intended to serve four purposes. First, QS-0 is intended to provide a sufficient quantity of solid-state electrolyte-separator and cells for internal development and customer sampling. Second, QS-0 is intended to provide the basis for continued manufacturing process development and to help inform equipment selection and specifications for future manufacturing activities by us or our partners. Third, we target the initial production of QSE-5 cells at QS-0. Fourth, QS-0 is intended to support collaboration and future technology transfer activities as part of the collaboration and licensing arrangements with PowerCo as well as potential future commercial arrangements. Delays in the successful buildout of QS-0 may impact both our development and future scale-up timelines.

Current wording

QS-0 is intended to serve four purposes. First, QS-0 is intended to provide a sufficient quantity of solid-state electrolyte-separator and cells for internal development and customer sampling. Second, QS-0 is intended to provide the basis for continued manufacturing process development and to help inform equipment selection and specifications for future manufacturing activities by us or our partners. Third, we target the initial production of QSE-5 cells at QS-0. Fourth, QS-0 is intended to support collaboration and future technology transfer activities as part of the collaboration and licensing arrangements with PowerCo SE (“PowerCo”) as well as potential future commercial arrangements. Delays in the successful buildout of QS-0 may impact both our development and future scale-up timelines.

Previous wording

We have demonstrated the performance capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer solid-state cells in commercially relevant areas (ranging approximately from 60x75mm to 70x85mm), and in 2022, shipped our first 24-layer A0 prototype battery cells to multiple automotive original equipment manufacturers (“OEM”). We will work to continue improving quality, consistency, reliability, throughput, and safety and optimize all components of the cell. We will continue to work to further develop and validate the volume manufacturing processes to enable higher volume manufacturing and minimize manufacturing costs. Finally, we intend for the building out of QS-0 to serve as the basis for continued manufacturing process development for the subsequent scale up of the manufacturing capabilities of our battery cells.

Current wording

We have demonstrated capabilities of our solid-state electrolyte-separator and battery technology in single-layer and multilayer solid-state cells in commercially relevant areas (ranging from approximately 60x75mm to 70x85mm). We will work to continue improving quality, consistency, reliability, throughput, and safety and optimize all components of the cell. We will continue to work to further develop and validate the volume manufacturing processes to enable higher volume manufacturing and minimize manufacturing costs. Finally, we intend for the building out of QS-0 to serve as the basis for continued manufacturing process development for the subsequent scale up of the manufacturing capabilities of our battery cells.

Previous wording

On July 5, 2024, we entered into a Collaboration Agreement with PowerCo SE (“PowerCo”) (the “Collaboration Agreement”) with the goal of industrializing the solid-state lithium-metal battery technology we intend to use in our first planned product—the QSE-5 (the “QSE-5 Technology”). PowerCo was formed by Volkswagen in 2022 as a company intended to consolidate Volkswagen’s activities in the development and production of battery cells. In connection with the Collaboration Agreement and subject to the completion of certain milestones, we and PowerCo intend to enter into a license agreement (the “IP License Agreement”) under which we will grant PowerCo a non-exclusive, limited, royalty-bearing license to use the QSE-5 Technology for the purpose of manufacturing and selling batteries primarily for automotive applications, and PowerCo will pre-pay an initial royalty fee of $130,000,000, against which any future royalties due will be credited. The initial royalty is subject to a time-based diminishing clawback if the IP License Agreement is terminated early by PowerCo under certain conditions. The Collaboration Agreement supersedes the JVA, which was terminated concurrently.

Current wording

On July 5, 2024, we entered into a Collaboration Agreement with PowerCo (the “Collaboration Agreement”) with the goal of industrializing the solid-state lithium-metal battery technology we intend to use in our first planned product—the QSE-5 (the “QSE-5 Technology”). PowerCo was formed by Volkswagen in 2022 as a company intended to consolidate Volkswagen’s activities in the development and production of battery cells. In connection with the Collaboration Agreement and subject to the completion of certain milestones, we and PowerCo intend to enter into a license agreement (the “IP License Agreement”) under which we will grant PowerCo a non-exclusive, limited, royalty-bearing license to use the QSE-5 Technology for the purpose of manufacturing and selling batteries primarily for automotive applications, and PowerCo will pre-pay an initial royalty fee of $130 million, against which any future royalties due will be credited. The initial royalty is subject to a time-based diminishing clawback if the IP License Agreement is terminated early by PowerCo under certain conditions. The Collaboration Agreement supersedes the JVA, which was terminated concurrently. As compared to a joint venture arrangement of similar output volumes, we expect the licensing arrangement to result in less revenue, as well as lower costs and capital requirements.

Previous wording

We believe that our technology enables a variety of business models. In addition to the collaboration with PowerCo, which contemplates a licensing arrangement, we may operate solely-owned manufacturing facilities, license technology to other manufacturers, or enter into joint venture arrangements. We intend to continue to invest in research and development to improve battery cell performance, improve manufacturing processes, and reduce cost.

Current wording

We believe that our technology enables a variety of business models. In addition to the collaboration with PowerCo, which contemplates a licensing arrangement, we may operate solely-owned manufacturing facilities, license technology to other manufacturers, or enter into joint venture arrangements, among other approaches. We intend to continue to invest in research and development to improve battery cell performance, improve manufacturing processes, and reduce cost.

Previous wording

Based on our current business plan, we believe that our cash resources will last into 2028. In July 2022, we filed a shelf registration statement on Form S-3 with the SEC (File No. 333-266419) (the “Form S-3”), which the SEC declared effective in August 2022, for the offer and sale of Class A Common Stock, preferred stock, depositary shares, debt securities, warrants, subscription rights, purchase contracts and units in one or more offerings and in any combination for an aggregate offering price of up to $1 billion. In February 2023, we filed a prospectus supplement to the Form S-3 for the issuance and sale of our Class A Common Stock from time to time for an aggregate offering price of up to $400 million (the “ATM offering”). No shares of our Class A Common Stock were sold pursuant to the ATM offering during the three and six months ended June 30, 2024. In August 2023, we completed an underwritten public offering of 37.5 million shares of our Class A Common Stock for an aggregate purchase price of $288.2 million, net of issuance costs of $11.8 million (the “August 2023 Public Offering”).

Current wording

Based on our current business plan, we believe that our cash resources will last into 2028. In July 2022, we filed a shelf registration statement on Form S-3 with the SEC (File No. 333-266419) (the “Form S-3”), which the SEC declared effective in August 2022, for the offer and sale of Class A Common Stock, preferred stock, depositary shares, debt securities, warrants, subscription rights, purchase contracts and units in one or more offerings and in any combination for an aggregate offering price of up to $1 billion. In February 2023, we filed a prospectus supplement to the Form S-3 for the issuance and sale of our Class A Common Stock from time to time for an aggregate offering price of up to $400 million (the “ATM offering”). No shares of our Class A Common Stock were sold pursuant to the ATM offering during the three and nine months ended September 30, 2024. In August 2023, we completed an underwritten public offering of 37.5 million shares of our Class A Common Stock for an aggregate purchase price of $288.2 million, net of issuance costs of $11.8 million (the “August 2023 Public Offering”).

Previous wording

Comparison of the Three and Six Months Ended June 30, 2024 to the Three and Six Months Ended June 30, 2023

Current wording

Comparison of the Three and Nine Months Ended September 30, 2024 to the Three and Nine Months Ended September 30, 2023

Previous wording

The increase in research and development expense in the three months ended June 30, 2024 compared to the three months ended June 30, 2023 primarily resulted from an increase of $5.1 million in personnel cost to support our battery technology development, an increase of $3.2 million related to depreciation and amortization and an increase of $2.2 million in material supplies.

Current wording

The increase in research and development expense in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily resulted from an increase of $4.7 million in personnel cost to support our battery technology development, an increase of $3.4 million related to depreciation and amortization, an increase of $2.9 million in material supplies and equipment, a non-cash stock-based compensation expense increase of $2.0 million primarily due to the net effect of new restricted stock units granted offset by full amortization of awards subsequent to September 30, 2023, and an increase of $1.5 million in facility related expenses primarily offset by a decrease of $6.1 million in write-off of property and equipment.

Previous wording

The increase in research and development expense in the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily resulted from an increase of $7.6 million in personnel cost to support our battery technology development, an increase of $5.9 million related to depreciation and amortization, an increase of $1.5 million in material supplies, and a non-cash stock-based compensation expense increase of $1.4 million primarily due to the net effect of new restricted stock units granted offset by full amortization of awards subsequent to June 30, 2023.

Current wording

The increase in research and development expense in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily resulted from an increase of $12.3 million in personnel cost to support our battery technology development, an increase of $9.1 million related to depreciation and amortization, an increase of $5.2 million in material supplies and equipment, and a non-cash stock-based compensation expense increase of $3.4 million primarily due to the net effect of new restricted stock units granted offset by full amortization of awards subsequent to September 30, 2023 primarily offset by a decrease of $4.8 million in write-off of property and equipment.

Previous wording

The increase in general and administrative expenses in the six months ended June 30, 2024 compared to the six months ended June 30, 2023 primarily resulted from the net $24.5 million litigation settlement accrual for the Securities Class Action Litigation described in Note 7, Commitments and Contingencies, to the condensed consolidated financial statements elsewhere in this Report, and an increase of $11.5 million in charges related to other legal matters, professional fees, outside services and office administration, offset by a decrease in non-cash stock-based compensation expense of $22.3 million primarily due to the net effect of forfeiture of EPA awards offset by new restricted stock units granted subsequent to June 30, 2023.

Current wording

The increase in general and administrative expenses in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily resulted from the net $24.5 million litigation settlement for the Securities Class Action Litigation described in Note 7, Commitments and Contingencies, to the condensed consolidated financial statements elsewhere in this Report, and an increase of $10.6 million in charges related to other legal matters, professional fees, outside services and office administration, offset by a decrease in non-cash stock-based compensation expense of $21.3 million primarily due to the net effect of forfeiture of EPA awards offset by new restricted stock units granted subsequent to September 30, 2023.

Previous wording

The increase in interest income during the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023 was mainly due to an increase in investment and interest rates.

Current wording

The increase in interest income during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was mainly due to the increase in the weighted average interest rate and investment during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.

Previous wording

Other income (expense) for the three and six months ended June 30, 2024 consisted of foreign currency exchange gain and other miscellaneous income. Other income (expense) for the three and six months ended June 30, 2023 consisted of foreign currency exchange loss and other miscellaneous income.

Current wording

Other income (expense) for the three and nine months ended September 30, 2024 consisted of foreign currency exchange loss and other miscellaneous income. Other income (expense) for the three and nine months ended September 30, 2023 consisted of foreign currency exchange gain and other miscellaneous income.

Previous wording

As of June 30, 2024 and December 31, 2023, our principal sources of liquidity were our cash and cash equivalents and marketable securities in the amount of approximately $937.9 million and $1.1 billion, respectively. Our cash equivalents are invested in U.S. money market funds, U.S. Treasury bonds and commercial paper. Our marketable securities are invested in U.S. Treasury notes and bonds, commercial paper, and corporate notes and bonds.

Current wording

As of September 30, 2024 and December 31, 2023, our principal sources of liquidity were our cash and cash equivalents and marketable securities in the amount of approximately $841.0 million and $1.1 billion, respectively. Our cash equivalents are invested in U.S. money market funds, U.S. Treasury bonds and commercial paper. Our marketable securities are invested in U.S. Treasury notes and bonds, commercial paper, and corporate notes and bonds.

Previous wording

We believe that our cash on hand will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this Report. Based on our current business plan, we believe that our cash resources will last into 2028. However, any changes to our technology development, operating costs and scale-up, including our ability to meet the milestones to enable the entry into the IP License Agreement and related receipt of the initial royalty fee from PowerCo, could materially impact us and the availability of our capital resources. We may need additional cash resources due to changed business conditions or other developments, including unanticipated delays in negotiations with automotive OEMs and tier-one automotive suppliers or other suppliers, supply chain challenges, competitive pressures, inflation, and regulatory developments, among others. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. If such financing is not available, or if the financing terms are onerous given the high-interest rate environment or less desirable than we expect, we may be forced to decrease our level of investment in product development or scale back our operations, which could have an adverse impact on our business and financial prospects.

Current wording

We believe that our cash on hand will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this Report. Based on our current business plan, we believe that our cash resources will last into 2028, in part due to our transition from the JVA arrangement to the licensing arrangement with PowerCo, which, if entered into, is expected to have significantly lower costs and capital requirements. However, any changes to our technology development, operating costs and scale-up, including our ability to meet the milestones to enable the entry into the IP License Agreement and related receipt of the initial royalty fee from PowerCo, could materially impact us and the availability of our capital resources. We may need additional cash resources due to changed business conditions or other developments, including unanticipated delays in negotiations with automotive OEMs and tier-one automotive suppliers or other suppliers, supply chain challenges, competitive pressures, inflation, and regulatory developments, among others. To the extent that our current resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. If such financing is not available, or if the financing terms are onerous given the high-interest rate environment or less desirable than we expect, we may be forced to decrease our level of investment in product development or scale back our operations, which could have an adverse impact on our business and financial prospects.

Previous wording

In February 2023, we filed a prospectus supplement to the Form S-3 for the issuance and sale of our Class A Common Stock from time to time for an aggregate offering price of up to $400 million through J.P. Morgan Securities LLC, Cowen and Company, LLC, Deutsche Bank Securities Inc. and UBS Securities LLC, as the sales agents. We entered into Distribution Agreements with each of these sales agents in February 2023, in connection with the offering. We have up to three years from the date of the Distribution Agreements to sell the shares, however we are not obligated to sell any such shares. Any proceeds from the sale of shares will be used for working capital and other general corporate purposes and would further extend our forecasted cash runway. No shares of our Class A Common Stock were sold pursuant to the ATM offering during the three and six months ended June 30, 2024.

Current wording

In February 2023, we filed a prospectus supplement to the Form S-3 for the issuance and sale of our Class A Common Stock from time to time for an aggregate offering price of up to $400 million through J.P. Morgan Securities LLC, Cowen and Company, LLC, Deutsche Bank Securities Inc. and UBS Securities LLC, as the sales agents. We entered into Distribution Agreements with each of these sales agents in February 2023, in connection with the ATM offering. We have up to three years from the date of the Distribution Agreements to sell the shares, however we are not obligated to sell any such shares. Any proceeds from the sale of shares will be used for working capital and other general corporate purposes and would further extend our forecasted cash runway. No shares of our Class A Common Stock were sold pursuant to the ATM offering during the three and nine months ended September 30, 2024.

Previous wording

Our cash flows used in operating activities to date have been primarily driven by the growth in our underlying business to support the research and development of next-generation battery technology. To support our research and development activities and our plan to expand our QS-0 capability, we are expecting cash payments of approximately $8.9 million during the next twelve months and approximately $69.9 million thereafter for the operating lease commitments as of June 30, 2024. From time to time, we also enter into non-cancellable service and purchase commitments. We are expecting cash used in operating activities to include payments of approximately $4.1 million in the next twelve months and approximately $5.8 million thereafter through 2027 for our non-cancellable commitments as of June 30, 2024.

Current wording

Our cash flows used in operating activities to date have been primarily driven by the growth in our underlying business to support the research and development of next-generation battery technology. To support our research and development activities and our plan to expand our QS-0 capability, we are expecting cash payments of approximately $9.0 million during the next twelve months and approximately $67.7 million thereafter for the operating lease commitments as of September 30, 2024. From time to time, we also enter into non-cancellable service and purchase commitments. We are expecting cash used in operating activities to include payments of approximately $4.3 million in the next twelve months and approximately $4.5 million thereafter through 2027 for our non-cancellable commitments as of September 30, 2024.

Previous wording

Cash used in operating activities for the six months ended June 30, 2024 was primarily driven by a net loss of $243.6 million, offset by non-cash expense of $67.1 million related to stock-based compensation, non-cash expense of $24.9 million related to depreciation and amortization, non-cash lease expense and amortization of right-of-use assets of $4.0 million. Cash used in the operating activities was further driven by an increase of $22.7 million in prepaid expenses, other current assets and other assets, and $15.7 million in amortization of premiums and accretion of discounts on marketable securities, and offset by an increase of $63.3 million in accounts payable, accrued liabilities and accrued compensation and benefits.

Current wording

Cash used in operating activities for the nine months ended September 30, 2024 was primarily driven by a net loss of $363.3 million, offset by non-cash expense of $110.5 million related to stock-based compensation, non-cash expense of $39.8 million related to depreciation and amortization, non-cash lease expense and amortization of right-of-use assets of $6.0 million. Cash used in the operating activities was further driven by an increase of $3.7 million in operating lease expense, and $23.1 million in amortization of premiums and accretion of discounts on marketable securities, and offset by an increase of $16.0 million in accounts payable, accrued liabilities and accrued compensation and benefits.

Previous wording

Cash used in operating activities for the six months ended June 30, 2023 was primarily driven by a net loss of $221.1 million, and a decrease of $4.0 million in accounts payable, accrued liabilities and accrued compensation and benefits, offset by non-cash expense of $88.0 million related to stock-based compensation, non-cash expense of $19.5 million related to depreciation and amortization, non-cash lease expense and amortization of right-of-use assets of $3.9 million.

Current wording

Cash used in operating activities for the nine months ended September 30, 2023 was primarily driven by a net loss of $331.7 million, offset by non-cash expense of $128.4 million related to stock-based compensation, non-cash expense of $31.2 million related to depreciation and amortization, non-cash expense of $6.3 million related to the impairment of fixed assets, and non-cash lease expense and amortization of right-of-use assets of $5.8 million. These were adjusted by a decrease of $10.9 million in amortization of premiums and accretion of discounts on marketable securities, and a decrease of $5.5 million in accounts payable, accrued liabilities and accrued compensation and benefits.

Previous wording

Cash provided by investing activities for the six months ended June 30, 2024 primarily consists of proceeds from the maturity and sale of marketable securities of $893.8 million and $1.2 million, respectively. These were offset by $690.2 million used for the purchase of marketable securities and $33.0 million used for the purchase of various property and equipment, primarily to support our research and development activities.

Current wording

Cash provided by investing activities for the nine months ended September 30, 2024 primarily consists of proceeds from the maturity and sale of marketable securities of $1.1 billion and $1.2 million, respectively. These were offset by $858.9 million used for the purchase of marketable securities and $51.0 million used for the purchase of various property and equipment, primarily to support our research and development activities.

Previous wording

Cash provided by investing activities for the six months ended June 30, 2023 primarily consists of the proceeds from the maturity and sale of marketable securities of $452.5 million and $1.5 million, respectively, offset by $290.8 million used for the purchase of marketable securities. Cash provided by investing activities also includes $52.7 million of cash used for the purchase of various property and equipment, primarily to support our research and development activities.

Current wording

Cash used in investing activities for the nine months ended September 30, 2023 primarily consists of $731.5 million used for the purchase of marketable securities and $70.7 million used for the purchase of various property and equipment, primarily to support our research and development activities. These were offset by the proceeds from the maturity and sale of marketable securities of $702.1 million and $1.5 million, respectively.

Previous wording

Our cash flows from financing activities primarily consist of proceeds from the issuance of common stock and exercise of stock options. Finance lease commitment for QS-0 will result in net cash payments of $5.2 million in the next twelve months and payments of $41.7 million thereafter.

Current wording

Our cash flows from financing activities primarily consist of proceeds from the issuance of common stock and exercise of stock options. Finance lease commitment for QS-0 will result in net cash payments of $5.2 million in the next twelve months and payments of $40.4 million thereafter.

Previous wording

Cash provided by financing activities during the six months ended June 30, 2024 is primarily due to $6.6 million received from the exercise of stock options and our employee stock purchase plan.

Current wording

Cash provided by financing activities during the nine months ended September 30, 2024 is primarily due to $14.0 million received from the exercise of stock options and our employee stock purchase plan.

Previous wording

Cash provided by financing activities during the six months ended June 30, 2023 is primarily due to $7.6 million received from the exercise of stock options and our employee stock purchase plan.

Current wording

Cash provided by financing activities during the nine months ended September 30, 2023 is primarily due to $288.4 million in net proceeds received from the August 2023 Public Offering, $9.9 million received from the exercise of stock options and our employee stock purchase plan.