SES AI Corporation (SES) Bundle
A Brief History of SES AI Corporation
Company Overview
SES AI Corporation (SES), a company focused on the development of lithium-metal batteries and artificial intelligence initiatives, was founded to revolutionize energy storage solutions. It has established partnerships with notable entities, including General Motors, to enhance its research and development efforts.
Financial Performance in 2024
As of September 30, 2024, SES reported a net loss of $30.2 million for the three months ended September 30, 2024, compared to a net loss of $13.5 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss totaled $65.6 million, up from $42.6 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $30.2 million | $13.5 million | $65.6 million | $42.6 million |
| Research and Development Expenses | $24.4 million | $8.5 million | $51.3 million | $23.3 million |
| General and Administrative Expenses | $9.8 million | $10.9 million | $28.9 million | $36.9 million |
| Total Operating Expenses | $34.2 million | $19.4 million | $80.1 million | $60.2 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, SES reported net cash used in operating activities of $53.8 million, compared to $43.9 million in 2023. The cash flow from investing activities showed net cash provided of $34.2 million in 2024, contrasting with a cash outflow of $12.3 million in 2023.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Used in Operating Activities | $53.8 million | $43.9 million |
| Cash Provided by Investing Activities | $34.2 million | ($12.3 million) |
| Cash Provided by Financing Activities | $0.4 million | $0.2 million |
Liquidity Position
As of September 30, 2024, SES held total cash and cash equivalents of $66.7 million and marketable securities valued at $207.0 million. The company's total liabilities amounted to $40.6 million, while total stockholders' equity was reported at $309.3 million.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $66.7 million |
| Marketable Securities | $207.0 million |
| Total Liabilities | $40.6 million |
| Total Stockholders' Equity | $309.3 million |
Research and Development Focus
Research and development expenses surged to $24.4 million in Q3 2024, reflecting a 188% increase from Q3 2023, driven by significant investments in equipment and personnel to support ongoing projects.
| R&D Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| R&D Expenses | $24.4 million | $8.5 million |
Stock Performance and Market Position
SES's stock performance has shown volatility, with significant fluctuations in its market capitalization linked to ongoing developments in its technology and partnerships. The total number of shares outstanding as of September 30, 2024, was 322.0 million.
| Stock Metrics | Amount |
|---|---|
| Total Shares Outstanding | 322.0 million |
| Net Loss Per Share | ($0.09) |
Future Outlook
Looking ahead, SES plans to continue its focus on product development and commercialization, aiming to enhance its market position in the energy storage sector while managing its operational costs effectively.
A Who Owns SES AI Corporation (SES)
Share Structure
As of September 30, 2024, SES AI Corporation has the following share structure:
| Class | Shares Authorized | Shares Issued | Shares Outstanding |
|---|---|---|---|
| Class A Common Stock | 2,100,000,000 | 316,703,306 | 316,703,306 |
| Class B Common Stock | 200,000,000 | 43,881,251 | 43,881,251 |
Major Shareholders
The ownership of SES AI Corporation is primarily held by institutional investors and the company's founders. The following table outlines the major shareholders as of 2024:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Ivanhoe Capital Sponsor LLC | Institutional | 6,900,000 (Class B) | 2.18% |
| BlackRock, Inc. | Institutional | 25,000,000 | 7.87% |
| The Vanguard Group, Inc. | Institutional | 20,000,000 | 6.29% |
| Other Institutional Investors | Various | Approximately 60,000,000 | 18.80% |
| Public Float | Public | Approximately 207,000,000 | 64.86% |
Recent Financial Performance
As of September 30, 2024, SES AI Corporation reported the following key financial metrics:
| Metric | Amount |
|---|---|
| Total Assets | $349,907,000 |
| Total Liabilities | $40,623,000 |
| Total Stockholders' Equity | $309,284,000 |
| Net Loss (Nine Months Ended September 30, 2024) | $(65,640,000) |
| Research and Development Expenses (Nine Months Ended September 30, 2024) | $51,260,000 |
Ownership Changes and Trends
Over the past year, SES AI Corporation has seen significant changes in its shareholding structure:
- Increased institutional ownership, particularly from large asset managers such as BlackRock and Vanguard.
- Class B shares, which hold more voting power, remain primarily with the founding sponsors.
- Overall public float has increased as SES continues to raise capital through stock options and equity offerings.
Market Capitalization
As of September 30, 2024, SES AI Corporation's market capitalization is approximately:
| Metric | Value |
|---|---|
| Current Share Price | $0.64 |
| Market Capitalization | Approximately $202,241,000 |
Conclusion on Ownership Dynamics
The ownership structure of SES AI Corporation reflects a mix of institutional investment and strategic founder control, with ongoing trends indicating a growing presence of institutional investors in the company.
SES AI Corporation (SES) Mission Statement
SES’s mission is to power a new era of electric transportation on land and in the air with Li-Metal batteries. We believe Li-Metal is the “end game” for electric transportation energy storage with its potential for step-change in energy density compared to state-of-the-art Li-ion. Our team has dedicated the past decade to developing a comprehensive and proprietary Li-Metal battery technology platform, including high concentration solvent-in-salt electrolyte, ultra-thin wide format lithium anode, protective anode coating, and novel cell engineering processes that are based on scalable Li-ion manufacturing but address unique Li-Metal challenges. As we build more automotive large capacity Li-Metal cells and generate more data, AI becomes an increasingly integral part in material development, battery health monitoring and incident prediction. Our AI for Science has the potential to accelerate our pipeline material discovery by mapping the vast universe of small molecules, with the goal to improve battery performance and safety. Our AI for Safety is designed to monitor battery state-of-health and predict incidents more accurately than conventional battery management systems. Our AI for Manufacturing uses machine learning to help define and fine-tune quality specifications based on manufacturing process data.
There are four pillars to our mission:
1. Electric Vehicles (EV)
Since our founding, EV has always been our core focus. In 2012, we transitioned away from solid state Li-Metal, so our Li-Metal batteries could operate at room temperature and be manufactured at large scale. In 2015, we received the first strategic investment from General Motors. In 2021, we signed what we believe to be the world’s first automotive A-sample Li-Metal joint development agreements (JDAs) with GM, Hyundai and Honda, all of whom made strategic investments in our company. In 2023, we signed what we believe to be the world’s first automotive B-sample Li-Metal JDA with a major global automaker. In 2024, we extended our JDA agreement with Hyundai to conduct further development activities in order to achieve production of B-sample batteries. As of September 30, 2024, we are on track to build the B-sample line at our original equipment manufacturer (OEM) partner’s facility in South Korea.
2. Urban Air Mobility (UAM)
UAM frequently operates on a fleet business model where the key business metrics are cost per passenger per mile, with weight being a paramount factor to costs. We believe that the step-change gravimetric energy density that Li-Metal can potentially offer means that an aircraft has the potential to carry twice the number of passengers, or twice the payload for cargo applications, or fly twice the distance, which has the potential to significantly improve the profitability of UAM operators. We have converted two of our EV A-sample lines to be dedicated to UAM cell production.
3. Artificial Intelligence (AI)
- AI for Safety - Our AI for Safety prediction accuracy increased from less than 60% in 2022 to 95% in 2024.
- AI for Manufacturing - Our AI for Manufacturing can accelerate the timeline for optimizing cell design and process significantly.
- AI for Science - We are developing new AI models designed to screen a vast universe of small molecules for potential electrolyte solvent candidates.
4. Sustainability
We are executing several initiatives designed to improve the environmental sustainability of our business, including technological innovations such as dry electrodes that can significantly reduce our electricity consumption and CO2 emissions. Recently, we announced SES Cares, where we power advanced drones with our Li-Metal A-samples and B-samples to collect field data to train Avatar AI, while partnering with operations such as forest fire monitoring and marine animal protection.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research and Development Expenses | $24,438,000 | $8,472,000 | 188% |
| General and Administrative Expenses | $9,779,000 | $10,885,000 | -10% |
| Total Operating Expenses | $34,217,000 | $19,357,000 | 77% |
| Net Loss | $30,186,000 | $13,473,000 | 124% |
As of September 30, 2024, SES AI Corporation reported total current assets of $291,495,000, down from $348,627,000 at year-end 2023. The company has incurred net losses of $65.6 million and $42.6 million for the nine months ended September 30, 2024 and 2023, respectively. The total liabilities stood at $40,623,000 as of September 30, 2024, compared to $47,860,000 previously.
How SES AI Corporation (SES) Works
Business Model
SES AI Corporation specializes in the development of advanced lithium-metal battery technology, targeting applications in electric vehicles (EVs) and other energy storage solutions. The company operates primarily through joint development agreements (JDAs) with original equipment manufacturers (OEMs) to enhance its research and development capabilities.
Financial Performance
As of September 30, 2024, SES AI Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development Expenses | $24,438,000 | $8,472,000 | $15,966,000 | 188% |
| General and Administrative Expenses | $9,779,000 | $10,885,000 | ($1,106,000) | (10%) |
| Total Operating Expenses | $34,217,000 | $19,357,000 | $14,860,000 | 77% |
| Net Loss | ($30,186,000) | ($13,473,000) | ($16,713,000) | 124% |
Operating Results
For the nine months ended September 30, 2024, the company reported:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development Expenses | $51,260,000 | $23,308,000 | $27,952,000 | 120% |
| General and Administrative Expenses | $28,855,000 | $36,932,000 | ($8,077,000) | (22%) |
| Total Operating Expenses | $80,115,000 | $60,240,000 | $19,875,000 | 33% | Net Loss | ($65,600,000) | ($42,600,000) | ($23,000,000) | 54% |
Cash Flow Summary
The summary of cash flows for the nine months ended September 30, 2024, is as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Cash used in Operating Activities | ($53,794) | ($43,893) |
| Cash provided by Investing Activities | $34,154 | ($12,332) |
| Cash provided by Financing Activities | $378 | $157 |
| Net Decrease in Cash | ($19,553) | ($56,732) |
Liquidity and Capital Resources
As of September 30, 2024, SES AI Corporation had:
- Total cash and cash equivalents: $66,740,000
- Investments in marketable securities: $207,000,000
The company’s total liabilities stood at $40,623,000, while total stockholders' equity was $309,284,000.
Research and Development Commitments
SES AI Corporation has a remaining commitment to spend up to $24.3 million under its JDAs as of September 30, 2024.
Stock Performance
The stock price of SES AI Corporation as of September 30, 2024, was $0.64.
Future Outlook
SES continues to focus on enhancing its lithium-metal battery technology and improving its AI capabilities for product development. The company is committed to maintaining its R&D initiatives to drive future growth and potential profitability.
How SES AI Corporation (SES) Makes Money
Business Model Overview
SES AI Corporation specializes in developing high-performance Lithium-Metal (Li-Metal) rechargeable battery technologies aimed primarily at electric vehicles (EVs), urban air mobility (UAM), and drones. As of 2024, SES has not yet generated revenue from sales to customers, focusing instead on research and development (R&D) and partnerships with original equipment manufacturers (OEMs) under Joint Development Agreements (JDAs).
Revenue Streams
As of September 30, 2024, SES has not generated any sales revenue. The company relies on funding from JDAs and interest income:
- Interest Income: $3.7 million for Q3 2024, down from $4.2 million in Q3 2023.
- Reimbursements from OEM partners under JDAs: $8.6 million for the nine months ended September 30, 2024, compared to $14.4 million for the same period in 2023.
Financial Performance
As a pre-commercialization stage company, SES has incurred significant operating losses:
| Period | Net Loss (in thousands) | Operating Expenses (in thousands) |
|---|---|---|
| Q3 2024 | $30,186 | $34,217 |
| Q3 2023 | $13,473 | $19,357 |
| 9 Months Ended Sep 30, 2024 | $65,644 | $80,115 |
| 9 Months Ended Sep 30, 2023 | $42,626 | $60,240 |
Research and Development Expenses
R&D expenses form a significant part of SES's spending, reflecting its focus on innovation and product development:
| Period | R&D Expenses (in thousands) |
|---|---|
| Q3 2024 | $24,438 |
| Q3 2023 | $8,472 |
| 9 Months Ended Sep 30, 2024 | $51,260 |
| 9 Months Ended Sep 30, 2023 | $23,308 |
General and Administrative Expenses
General and administrative costs have also seen fluctuations, reflecting changes in operational needs:
| Period | G&A Expenses (in thousands) |
|---|---|
| Q3 2024 | $9,779 |
| Q3 2023 | $10,885 |
| 9 Months Ended Sep 30, 2024 | $28,855 |
| 9 Months Ended Sep 30, 2023 | $36,932 |
Liquidity and Capital Resources
As of September 30, 2024, SES had total cash and cash equivalents of $66.7 million and investments in marketable debt and equity securities totaling $207.0 million. The company's funding strategy has involved private investments and prior funding received through the sales of redeemable convertible preferred stock.
Future Outlook
SES anticipates the need for additional funding to support ongoing operations and product development, particularly as it aims to commercialize its Li-Metal battery technology. The company has committed to spend an additional $24.3 million under its current JDA agreements as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- SES AI Corporation (SES) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SES AI Corporation (SES)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SES AI Corporation (SES)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.