Solid Power Inc
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
SLDP$1.99-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001558370-24-011190
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001558370-24-014938
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 48 previous paragraphs and 48 current paragraphs.
27 unchanged; 20 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
During the three and nine months ended September 30, 2024, we increased capital and operational investments centered on expanding our electrolyte capabilities and advancing our cell designs. Our capital investments included the addition of an EIC to improve and test electrolyte manufacturing processes. Our operational investments were focused on the strategic enhancement of our research and development workforce as well as efforts to improve electrolyte and cell performance. Through the remainder of 2024, we expect the trend of increased capital and operational investments to continue for our production capabilities, partnership development, and Korean operations as we execute our development strategy according to our current outlook.
Removed paragraphs (1)
Previous report
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.
Reworded paragraphs (20)
Previous wording
Our core technology is our proprietary solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion batteries. We believe that our electrolyte material can improve driving range, battery life, safety performance, and battery costs.
Current wording
Our core technology is a proprietary sulfide solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion batteries. We believe that our electrolyte can improve driving range, battery life, safety performance, and battery costs.
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 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.
Current wording
Additionally, we are developing solid-state cells with our electrolyte, with the aim of commercializing our technology by selling electrolyte and licensing cell designs. This approach minimizes capital requirements, unlike other battery manufacturers who require significant cell production facilities and equipment. This strategy also allows us to focus on our core strengths of electrolyte production and solid-state technology development.
Previous 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.
Current wording
Currently, we produce electrolyte on pilot manufacturing lines. The electrolyte is used for cell development and customer sampling. We also develop cells on two pilot lines, producing multiple cell sizes to both support our partners and refine cell designs.
Previous wording
We have partnered with industry leaders BMW, Ford Motor Company, and SK On and will continue to work closely with our partners to improve cell designs, produce electrolyte material, and commercialize our technology. Our products are currently in the development stage and require further research and improvement before we can commercialize our technology.
Current wording
We have partnered with industry leaders BMW, Ford Motor Company, and SK On and will continue to work closely with our partners to improve cell designs, improve our electrolyte, and ultimately commercialize our technology. Our products are currently in the development stage and require further research and improvement before we can commercialize our technology.
Previous wording
We are a research and development-stage company and have not generated significant revenue through the sale of our electrolyte or licensing of our cell designs. Our ability to commercialize our products depends on several factors that present significant opportunities for us but also pose material risks and challenges, including those discussed in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” sections of this Report, which are incorporated by reference.
Current wording
We are a research and development-stage company and have not generated significant revenue through the sale of our electrolyte or licensing of our cell designs. Our ability to commercialize our products depends on several factors that present significant opportunities but also pose material risks and challenges, including those discussed in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” sections of this Report, which are incorporated by reference.
Previous 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.
Current 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. To satisfy anticipated demand, we will need to scale production of our electrolyte. All of these 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
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.
Current wording
Revenue generated to date has primarily come from performance on research and development licensing agreements and government contracts. We will need to 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.
Previous 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.
Current 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.
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 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:
Current wording
The key factors driving results of operations for the three and nine months ended September 30, 2024, including the increased operating loss as compared to the corresponding periods in 2023, were as follows:
Previous 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.
Current wording
The sale of equity has historically been our primary source of cash, with a smaller portion of cash coming from performance milestones onour JDAs and government contracts.
Previous wording
As of June 30, 2024, contract receivables and contract receivables from related parties were $12,347, deferred revenue was $10,075, and total current liabilities were $22,949. As of December 31, 2023, contract receivables were $1,553, deferred revenue and deferred revenue from related parties was $829, and total current liabilities were $15,879.
Current wording
As of September 30, 2024, contract receivables were $2.6 million, deferred revenue was $6.7 million, and total current liabilities were $20.3 million. As of December 31, 2023, contract receivables were $1.6 million, deferred revenue and deferred revenue from related parties was $0.8 million, and total current liabilities were $15.9 million.
Previous 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.
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 completion of an EIC that we expect to place fully 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
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.
Current wording
However, we may require additional liquidity sources if there are material changes to our business conditions or other developments, including changes to our operating plan, development progress, or 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 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.
Current 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 the common stock, economic and market conditions, and corporate and regulatory requirements. During the nine months ended September 30, 2024, we 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 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.
Current wording
Cash used in operating activities decreased for the nine months ended September 30, 2023 as compared to the same period in 2024. The decrease was largely attributable to increased depreciation and amortization expenses as a result of placing SP2 in service, increased deferred revenue as a result of receipt of payment related to a collaborative arrangement ahead of services provided, and decreased contract receivables as a result of receipt of payment from our collaborative arrangements associated with completion of milestones. This benefit was partially offset by increased operating losses, which were driven by a continued increase in research and development and selling, general and administrative costs.
Previous 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.
Current wording
Cash provided by investing activities increased for the nine months ended September 30, 2023 as compared to the same period in 2024 primarily due to the 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 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.
Current wording
Cash used in financing activities for the nine months ended September 30, 2024 was predominantly related to the effect of cash utilized for the stock repurchase program and withholding of employee taxes related to stock-based compensation. These payments were offset by proceeds from the issuance of shares of common stock under the ESPP and exercise of stock options. Cash provided by financing activities for the nine months ended September 30, 2023 was primarily from the exercise of stock options and proceeds from the sale of common stock under the ESPP, partially offset by cash paid for withholding of employee taxes related to stock-based compensation and payments on finance lease liabilities.
Previous wording
The Company is not a party to any off-balance sheet arrangements, as defined under SEC rules.
Current wording
We are 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 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.
Current wording
There were no significant and material changes in our critical accounting policies and use of estimates during the nine months ended September 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.