2Q22 Results: Operating Loss at $19.1 Million; 2022 Financial Outlook Remains Unchanged; Progress of SES Korea Facility on Track to Support JDA Partners



KEY POINTS
  • SES reported an operating loss of $19.1 million, an increase of $12.5 million Y/Y due to increased personnel to support the development of battery cells and AI software. General and administrative costs ($11.9 million) and R&D costs ($7.2 million) were the primary contributors to the operating loss. Complete results can be accessed here.
  • The company’s net income was $9.0 million, or $0.03 per share. The positive number was due to a non-cash gain reported for the change in fair value of its $29.0 million sponsor earn-out liability.
  • SES closed the quarter with a cash balance of $404.6 million, which it intends to use to fund the further development of Li-Metal battery technology, its AI-powered safety software platform Avatar, and to provide adequate liquidity for commercialization.
  • The company’s financial outlook for 2022 remains unchanged from the first quarter. SES aims to deliver and optimize A-samples for its three joint development agreement (JDA) partners, while maintaining supply chains for key materials. For this, in 2022, the company expects to spend $95-115 million on capital expenditures ($25-$35 million) and operating costs ($70-80 million).
  • Construction of the company’s second cell production plant in SES Korea is on track and plans to be completed by October 2022. The building’s structure is complete and assembly lines are now being installed. This plant will service at least one of the company’s JDA partners and will be equipped to manufacture its large format 50Ah and 100Ah cells.
  • SES intends to arrange a second annual Battery World event before 2022 after strong investor interest in November 2021. SES plans to provide updates on the performance of its large-format (50Ah to 100Ah) Apollo cells and Avatar, its AI-powered safety software for monitoring battery health, and demonstrate Apollo cells in a non-automotive application.
FINANCIAL SNAPSHOT

• SES reported an operating loss of $19.1 million, an increase of $12.5 million Y/Y due to increased personnel to support the development of battery cells and AI software. General and administrative costs ($11.9 million) and R&D costs ($7.2 million) were the primary contributors to the operating loss. Complete results can be accessed here.

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