Amprius Technologies (AMPX) risk factors, FY2024 10-K

Risks Related to Our Technology, Products and Manufacturing

1. 01If our batteries fail to perform as expected, our ability to develop, market and sell our batteries would be adversely affected
2. 02Our reliance on third parties to manufacture certain of our batteries or battery materials subjects us to certain risks
3. 03Index to Consolidated Financial Statements
4. 04In the event any of the above risks, or any other adverse events resulting from our reliance on third parties, including those risks described below, occurs, our business, financial condition, results of operations and prospects may be adversely affected
5. 05We may not meet our manufacturing cost targets, which would limit the size of our market opportunities
6. 06We rely on, and will continue to rely on, complex equipment for our operations, and manufacturing involves a significant degree of risk and uncertainty in terms of operational performance and costs
7. 07Our establishment of a volume manufacturing facility is subject to many risks, including, among others, risks relating to construction, permitting, delays, cost overruns, supply chain constraints, and operating in a new geographic area away from our headquarters
8. 08We may not succeed in retaining and attracting key employees, particularly technical talent, needed to operate and build our business successfully
9. 09We have pursued new product platforms and expanded our product portfolio. We may expend our limited resources to pursue a particular product and fail to capitalize on products that may be more profitable or for which there is a greater likelihood of success
10. 10Certain of our officers and directors provide services to other entities formerly affiliated with Amprius Holdings
11. 11We may encounter delays and technical obstacles in developing new battery products such as different cell formats to meet varied market requirements
12. 12Certain components of our batteries are hazardous and pose safety risks that may cause accidents in our manufacturing facility. We may be subject to financial and reputational risks due to product recalls and product liability claims, and we could face substantial liabilities that exceed our resources
13. 13Product liability claims, even those without merit or those that do not involve our battery products, could harm our business, financial condition, results of operations and prospects
14. 14We may not be able to accurately estimate the future supply and demand for our batteries, which could result in a variety of inefficiencies in our business and hinder our ability to generate revenue. If we fail to accurately predict our manufacturing requirements, we could incur additional costs or experience delays
15. 15We may not be able to establish supply relationships for necessary finished batteries, materials, components or equipment or may be required to pay more than anticipated for components or equipment, which could negatively impact our business

Risks Related to Our Business and Industry

1. 16Index to Consolidated Financial Statements
2. 17Developments in alternative technology or other fossil fuel alternatives may adversely affect the demand for our battery products
3. 18We have pursued and may continue to pursue development agreements and other strategic alliances, which could have an adverse impact on our business if they are unsuccessful
4. 19Our ability to grow will depend, in part, on our ability to contract with aviation, EV and LEV OEMs to incorporate our batteries in their products, which will require significant time and expense, and may not come to fruition
5. 20If existing customers do not make subsequent purchases from us or renew their contracts with us, our revenue could decline, and our results of operations would be adversely impacted
6. 21If our customers choose to reduce purchases, or do not purchase at all, batteries manufactured outside of the United States, our revenue could decline and our prospects may be adversely affected
7. 22We may require additional capital to support business growth, and this capital might not be available on commercially reasonable terms or at all
8. 23It is not possible to predict the actual number of shares we will sell under the Sales Agreement, if any, or the gross proceeds resulting from those sales
9. 24Our future growth and success depend in part on our ability to grow our customer base and effectively sell to a wide variety of customers
10. 25Our business model has yet to be tested and any failure to realize our strategic plans would have an adverse effect on our operating results and business, harm our reputation and could result in substantial liabilities that exceed our resources
11. 26We are an early-stage company with a history of financial losses and expect to incur significant expenses and continuing losses for the foreseeable future
12. 27If we fail to effectively manage our future personnel growth, we may not be able to market and sell our batteries successfully
13. 28Certain members of our management do not have experience in operating a public company
14. 29Our insurance coverage may not be adequate to protect us from all business risks
15. 30Our cash and money market funds could be adversely affected if the financial institutions in which we hold our cash and money market funds fail
16. 31Our ability to utilize our net operating losses, tax credit carryforwards, and certain other tax attributes to offset future taxable income may be subject to certain limitations
17. 32The unavailability, reduction or elimination of government and economic incentives could have a material adverse effect on our business, financial condition, results of operations and prospects
18. 33contingencies. If we are not able to achieve the performance-based goals set for the incentives, we may not receive any funding or benefits from the state and local governments of Colorado
19. 34We have contracts with certain government agencies of the United States (as a prime contractor or subcontractor)

Risks Related to Intellectual Property

1. 35We rely heavily on our intellectual property portfolio. If we are unable to protect our intellectual property rights, our business and competitive position would be harmed
2. 36We may need to defend ourselves against intellectual property infringement claims, which may be time-consuming and could cause us to incur substantial costs
3. 37Our patent applications may not result in issued patents or our patent rights may be contested, circumvented, invalidated or limited in scope, any of which could have a material adverse effect on our ability to prevent others from interfering with our commercialization of our batteries
4. 38We may obtain licenses on technology that has not been commercialized or has been commercialized only to a limited extent, and the success of our business may be adversely affected if such technology does not perform as expected

Risks Related to Litigation and Regulatory Compliance

1. 39Our operations expose us to litigation, environmental and other legal compliance risks. Compliance with laws and regulations can be expensive, and our failure to comply with these laws and regulations may result in monetary damages and fines, adverse publicity and a material adverse effect on our business
2. 40employment-related liabilities, environmental matters, investment screening and national security laws, and compliance with U.S. and foreign laws, competition laws and laws governing improper business practices
3. 41We are subject to a variety of laws and regulations related to the safety and transportation of our batteries. Our failure to comply with these laws and regulations may have a material adverse effect on our business and results of operations
4. 42Failure to comply with certain health and production safety laws and regulations governing hazardous materials could materially adversely affect our business and results of operations
5. 43we cannot assure you that none of our officers, directors, employees, business partners, agents, representatives and third party intermediaries will take actions in violation of our policies and applicable law, for which we may be ultimately held responsible
6. 44We are subject to governmental export and import controls that could impair our ability to compete in international markets or subject us to liability if we violate these controls
7. 45Recent and potential tariffs imposed by the United States government or a global trade war could increase the cost of our products, which could have a material adverse effect on our business, financial condition and results of operations
8. 46Our reliance on suppliers in foreign countries, including China, subjects us to risks and uncertainties relating to foreign laws and regulations and changes in relations between the United States and such foreign countries
9. 47From time to time, we may be involved in legal proceedings and commercial or contractual disputes, which could have an adverse impact on our profitability and financial position

Risks Related to Ownership of Our Common Stock

1. 48There can be no assurance that we will be able to comply with the continued listing standards of the NYSE
2. 49We incurred and may continue to incur significant expenses and administrative burdens as result of operating as a public company, which could have an adverse effect on our business, financial condition and results of operations
3. 50If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change their recommendations regarding our securities adversely, the price and trading volume of our securities could decline
4. 51Sales of substantial amounts of our common stock in the public markets, or the perception that such sales could occur, could cause the market price of our common stock to drop significantly, even if our business is doing well
5. 52Subject to applicable securities laws and the satisfaction of any vesting restriction, the shares issued thereunder will be available for immediate resale in the public market
6. 53We may issue additional shares of common stock under an employee incentive plan (including the 2022 Equity Incentive Plan and the Employee Stock Purchase Plan), or may issue preferred stock. Any such issuances would dilute the interest of our stockholders and likely present other risks

Risks Related to Our Warrants

1. 54There is no guarantee that our warrants will be in the money, and they may expire worthless
2. 55We may redeem unexpired public warrants prior to their exercise at a time that is disadvantageous to the warrant holders, thereby making the public warrants worthless
3. 56The warrants are exercisable for common stock, which would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders