Solid Power Inc

Previous wording

Solid Power is developing solid-state battery technology for EV and additional markets served by battery manufacturers.

Current wording

Solid Power is developing solid-state battery technology for the EV market and additional markets served by battery manufacturers.

Previous wording

We are also developing solid-state cells with our electrolyte, with the aim of commercializing our technology by selling our electrolyte material and licensing our cell designs. This approach is capital light, unlike other battery manufacturers who require significant production facilities and equipment. This strategy allows us to focus on our core strengths of electrolyte production and solid-state technology development.

Current wording

We are also developing solid-state cells with our electrolyte, with the aim of commercializing our technology by selling our electrolyte material and licensing our cell designs. This approach minimizes capital requirements, unlike other battery manufacturers who require significant production facilities and equipment. Also, this strategy allows us to focus on our core strengths of electrolyte production and solid-state technology development.

Previous wording

We currently produce our electrolyte on a pilot manufacturing line, which is used in our cell development and for customer sampling. We currently develop our cells on our two pilot lines, producing multiple cell sizes to both support our partners and refine cell designs. Longer-term, we expect our pilot lines to focus on research and development.

Current wording

The Company currently produces electrolyte on a pilot manufacturing line, which is used in cell development and for customer sampling. We currently develop our cells on our two pilot lines, producing multiple cell sizes to both support our partners and refine cell designs. Longer-term, we expect the pilot lines to focus on research and development.

Previous wording

Prior to reaching commercialization, we must improve our products to ensure they meet the performance and safety requirements of our customers. We also will have to continue to negotiate licensing and supply contracts with our customers on terms and conditions that are mutually acceptable. We will need to scale production of our electrolyte material to satisfy anticipated demand.

Current wording

Prior to reaching commercialization, the Company must improve our products to ensure they meet the performance and safety requirements of our customers. We also will have to continue to negotiate licensing and supply contracts with our customers on terms and conditions that are mutually acceptable. Production of our electrolyte material will need to be scaled to satisfy anticipated demand. All of these factors will take time and affect our operating results. Since many factors are difficult to quantify, actual operating results may be different than currently anticipated.

Previous wording

Our revenue generated to date has primarily come from performance on research and development licensing activities and government contracts. We continue to deploy substantial capital to expand our production capabilities and engage in research and development programs. We also expect to continue to incur significant administrative expenses as a publicly traded company.

Current wording

Revenue generated to date has primarily come from performance on research and development licensing activities and government contracts. Substantial capital will need to be deployed to expand our production capabilities and engage in research and development programs. We also expect to continue to incur significant administrative expenses as a publicly traded company.

Previous wording

In addition to meeting our development goals, commercialization and future growth and demand for our products are highly dependent upon consumers adopting EVs. The market for new energy vehicles is still rapidly evolving due to emerging technologies, competitive pricing, government regulation and industry standards, and changing consumer demands and behaviors.

Current wording

In addition to meeting development goals, commercialization and future growth and demand for our products are highly dependent upon consumers adopting EVs. The market for new energy vehicles is still rapidly evolving due to emerging technologies, competitive pricing, government regulation and industry standards, and changing consumer demands and behaviors.

Previous wording

We currently conduct our business through one operating segment. As a research and development company with no commercial operations, our activities to date have been limited and were conducted primarily in the United States. Our historical results are reported under GAAP and in U.S. dollars.

Current wording

We currently conduct our business through one operating segment. As a research and development company with no commercial operations, our activities to date have been limited and were conducted primarily in the United States. Historical results are reported under GAAP and in U.S. dollars.

Previous wording

Comparison of the Three Months Ended March 31, 2024 to the Three Months Ended March 31, 2023

Current wording

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

Previous wording

During the three months ended March 31, 2024, we continued to expand and accelerate our development efforts through increased capital and operational investments. We continued to invest in talent while expanding our facilities, production equipment, and capabilities. We expect to continue to increase our spending in all operational areas through the remainder of 2024 in order to execute our development strategy.

Current wording

During the three and six months ended June 30, 2024, development efforts were expanded and accelerated through increased capital and operational investments. We continued to invest in talent while expanding our facilities, production equipment, and capabilities. This trend is expected to continue for our production capabilities, partnership development, and Korean operations through the remainder of 2024 as the development strategy is executed according to the current outlook.

Previous wording

The key factors driving our results of operations for the three months ended March 31, 2024, including our increased operating loss as compared to the corresponding period in 2023, were as follows:

Current wording

The key factors driving results of operations for the three and six months ended June 30, 2024, including the increased operating loss as compared to the corresponding period in 2023, were as follows:

Previous wording

Our primary sources of cash have historically been derived from the sale of equity, with a small portion coming from performance onour JDAs, government contracts, and other collaborative arrangements.

Current wording

The Company’s primary sources of cash have historically been derived from the sale of equity, with a smaller portion coming from performance milestones onour collaborative arrangements and government contracts.

Previous wording

Our short-term liquidity requirements include operating and capital expenses needed to further our research and development programs and to further optimize our pilot production lines and electrolyte manufacturing capabilities. We anticipate that our most significant capital expenditures for the remainder of 2024 will relate to finishing construction of our electrolyte research facility and enhancing the capabilities of our electrolyte production facility. We expect to fund our short-term liquidity requirements through our cash on hand and other liquid assets.

Current wording

Short-term liquidity requirements include operating and capital expenses needed to further research and development programs and to further optimize pilot production lines and electrolyte manufacturing capabilities. We anticipate that our most significant capital expenditures for the remainder of 2024 will relate to enhancing the capabilities of our electrolyte production facility, including development of a design verification plan and report lab expected to be placed in service by the end of 2024. We expect to fund our short-term liquidity requirements through our cash on hand and other liquid assets.

Previous wording

We believe that our cash on hand is sufficient to meet our operating cash needs and working capital and capital expenditure requirements for a period of at least the next 12 months and longer term until we generate adequate cash flows from licensing activities and/or electrolyte sales. We also believe that we have adequate cash on hand for our stock repurchase program should we choose to execute additional share repurchases.

Current wording

We believe that our cash on hand is sufficient to meet our operating cash needs and working capital and capital expenditure requirements for a period of at least the next 12 months and longer term until adequate cash flows from licensing activities and/or electrolyte sales can be generated. We also believe that we have adequate cash on hand for our stock repurchase program should we choose to execute additional share repurchases.

Previous wording

of EVs, supply chain challenges, competitive pressures, inflation, and regulatory developments. To the extent that our resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. We also may opportunistically seek to enhance our liquidity through equity or debt financing, if such financing becomes available to us on terms that we consider favorable. If financing is not available, or if the terms of financing are less desirable than we expect, we may be forced to take actions to reduce our capital or operating expenditures, which may adversely affect our development, business, operating results, financial condition and prospects.

Current wording

Additional liquidity sources may be required if there are material changes to our business conditions or other developments, including changes to our operating plan, development progress, negotiations with OEMs, cell manufacturers, or other suppliers, market adoption of EVs, supply chain challenges, competitive pressures, inflation, and regulatory developments. To the extent that our resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing. We also may opportunistically seek to enhance our liquidity through equity or debt financing, if such financing becomes available on terms that we consider favorable. If financing is not available, or if the terms of financing are unfavorable, we may be forced to take actions to reduce our capital or operating expenditures, which may adversely affect our development, business, operating results, financial condition and prospects.

Previous wording

On January 23, 2024, we announced that our Board approved a stock repurchase program authorizing us to purchase up to $50 million of our outstanding common stock. Under the stock repurchase program, we may purchase shares of our common stock from time to time until the repurchase program expires on December 31, 2025. The shares of common stock may be purchased on the open market, in unsolicited negotiated transactions, or in any manner that complies with the provisions of Rule 10b-18 of the Exchange Act. Management’s decision to repurchase shares of common stock will depend on a number of factors, such as the price of our common stock, economic and market conditions, and corporate and regulatory requirements. During the three months ended March 31, 2024, the Company repurchased 3,186,638 shares of common stock at an average price of $1.52 per share for an aggregate cost of approximately $4.96 million.

Current wording

On January 23, 2024, we announced that our Board approved a stock repurchase program authorizing the Company to purchase up to $50 million of our outstanding common stock. Under the stock repurchase program, we may purchase shares of our common stock from time to time until the repurchase program expires on December 31, 2025. The shares of common stock may be purchased on the open market, in unsolicited negotiated transactions, or in any manner that complies with the provisions of Rule 10b-18 of the Exchange Act. Management’s decision to repurchase shares of common stock will depend on a number of factors, such as the price of the common stock, economic and market conditions, and corporate and regulatory requirements. During the six months ended June 30, 2024, the Company repurchased 5,000,000 shares of common stock at an average price of $1.64 per share for an aggregate cost of approximately $8.36 million.

Previous wording

Cash used in operating activities increased from March 31, 2023 to 2024. The increase was primarily attributable to our operating loss, which was driven by a continued increase in direct and research and development costs. We expect cash used in operating activities to increase as we accelerate the pace and scope of our development efforts and work to achieve commercialization of our products.

Current wording

Cash used in operating activities increased from June 30, 2023 to 2024. The increase was largely attributable to operating losses, which were driven by a continued increase in research and development and selling, general and administrative costs.

Previous wording

Cash provided by (used in) in investing activities increased from March 31, 2023 to 2024 primarily due to net effect of proceeds from the sales of marketable securities and decreased capital expenditures for property, plant and equipment. As our production processes are scaled for commercialization, especially with respect to our electrolyte material, we expect capital expenditures to increase.

Current wording

Cash provided by investing activities increased from June 30, 2023 to 2024 primarily due to net effect of proceeds from the sales of marketable securities and decreased capital expenditures for property, plant and equipment.

Previous wording

Cash used in financing activities for the three months ended March 31, 2024 was primarily related to the net effect of cash utilized for the stock repurchase program, partially offset by cash received from the exercise of stock options. Cash provided by financing activities for the three months ended March 31, 2023 was primarily from the exercise of stock options. We expect our cash used in financing activities to increase as we execute share repurchases through the remainder of 2024.

Current wording

Cash used in financing activities for the six months ended June 30, 2024 was predominantly related to the net effect of cash utilized for the stock repurchase program, partially offset by cash received from the exercise of stock options and proceeds from the sale of common stock under the ESPP. Cash provided by financing activities for the six months ended June 30, 2023 was primarily from the exercise of stock options and proceeds from the sale of common stock under the ESPP.

Previous wording

We are not a party to any off-balance sheet arrangements, as defined under SEC rules.

Current wording

The Company is not a party to any off-balance sheet arrangements, as defined under SEC rules.

Previous wording

There were no significant and material changes in our critical accounting policies and use of estimates during the three months ended March 31, 2024 as compared to those disclosed in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2023 Form 10-K.

Current wording

There were no significant and material changes in our critical accounting policies and use of estimates during the six months ended June 30, 2024 as compared to those disclosed in “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2023 Form 10-K.