QuantumScape Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>QuantumScape Corp. filed its Q1 2024 10-Q, detailing financial positions and equity-related information.</b>

AI Summary

QuantumScape Corp (QS) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. QuantumScape Corp. filed its 10-Q report for the period ending March 31, 2024. The filing details financial information including assets, debt, and equity as of March 31, 2024, and December 31, 2023. Key financial statement items such as Retained Earnings, Accumulated Other Comprehensive Income, and Additional Paid-In Capital are reported for various periods. The report references specific equity awards and plans, including the Two Thousand Twenty Equity Incentive Award Plan and Extraordinary Performance Award Program. Fair value measurements for recurring items, including Commercial Paper and Convertible Debt Securities, are provided as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking QuantumScape Corp, this filing contains several important signals. This filing provides a snapshot of QuantumScape's financial health and operational activities during the first quarter of 2024, crucial for investors assessing the company's progress. The detailed breakdown of assets, liabilities, and equity, along with specific mentions of R&D and G&A expenses, offers insight into the company's investment in technology development and operational costs.

Risk Assessment

Risk Level: medium — QuantumScape Corp shows moderate risk based on this filing. The company is in the development stage of a novel battery technology, which carries inherent risks related to technological feasibility, scalability, and market adoption, as indicated by the focus on R&D expenses and the absence of significant revenue figures.

Analyst Insight

Investors should monitor QuantumScape's progress in battery development and manufacturing scale-up, as detailed in the R&D and operational expense sections of this filing.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-04-26 — Filing Date (Date the 10-Q was filed)
• 2024-01-01 — Q1 2024 Start Date (Start date for Q1 2024 financial reporting)
• 2023-03-31 — Q1 2023 End Date (End date for Q1 2023 financial reporting)

Key Players & Entities

• QuantumScape Corp. (company) — Filer of the 10-Q report
• DrTimHolme (person) — Mentioned in relation to financial data as of March 31, 2024, and March 31, 2023
• DrFritzPrinz (person) — Mentioned in relation to financial data as of March 31, 2024
• Kensington Capital Acquisition Corp. (company) — Former company name

FAQ

Risk Factors

• Development Stage Risks [high — operational]: The company is focused on developing advanced battery technology, which involves significant technical and manufacturing challenges that may impact its ability to commercialize its products.
• Need for Future Financing [medium — financial]: QuantumScape's operations require substantial capital, and the company may need to raise additional funds through equity or debt offerings, which could dilute existing shareholders or increase financial leverage.
• Competition in the Battery Market [medium — market]: The electric vehicle battery market is highly competitive, with established players and emerging technologies, posing a risk to QuantumScape's market penetration and growth prospects.

Key Financial Figures

• $0.0001 — tered Class A Common Stock, par value $0.0001 per share QS The New York Stock Exc

Filing Documents

• qs-20240331.htm (10-Q) — 1834KB
• qs-ex10_1.htm (EX-10.1) — 31KB
• qs-ex31_1.htm (EX-31.1) — 14KB
• qs-ex31_2.htm (EX-31.2) — 14KB
• qs-ex32_1.htm (EX-32.1) — 8KB
• qs-ex32_2.htm (EX-32.2) — 8KB
• 0000950170-24-049080.txt (&nbsp;) — 8736KB
• qs-20240331.xsd (EX-101.SCH) — 1239KB
• qs-20240331_htm.xml (XML) — 1634KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Consolidated Balance Sheets (Unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) 3 Condensed Consolidated Statements of Redeemable Non-Controlling Interest and Stockholders' Equity (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59 Item 3. Defaults Upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 60

Signatures

Signatures 61 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Unless the context otherwise requires, all references to "QuantumScape," "we," "us," "our," or the "Company" in this Quarterly Report on Form 10-Q (this "Report") refer to the current QuantumScape Corporation and its subsidiaries. The Company makes forward-looking statements in this Report and in documents incorporated herein by reference. All statements, other than statements of present or historical fact included in or incorporated by reference in this Report, regarding the Company's future financial performance, as well as the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Report, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "prospective," "should," "will," "would," the negative of such terms, and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, including those described in Part II, Item 1A, "Risk Factors" in this Report, most of which are difficult to predict and many of which are beyond the control of the Company and incident to its business. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materi

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements. QuantumScape Corporation Condensed Cons olidated Balance Sheets (Unaudited) (In Thousands, Except per Share Amounts) March 31, December 31, 2024 2023 Assets Current assets Cash and cash equivalents ($ 3,564 and $ 3,522 as of March 31, 2024 and December 31, 2023, respectively, for joint venture) $ 192,321 $ 142,524 Marketable securities 817,314 928,284 Prepaid expenses and other current assets 35,400 12,709 Total current assets 1,045,035 1,083,517 Property and equipment, net 315,644 313,164 Right-of-use assets - finance lease 24,422 25,140 Right-of-use assets - operating lease 54,596 55,863 Other assets 24,281 24,294 Total assets $ 1,463,978 $ 1,501,978 Liabilities, redeemable non-controlling interest and stockholders' equity Current liabilities Accounts payable $ 11,508 $ 12,959 Accrued liabilities 72,331 10,180 Accrued compensation and benefits 8,738 26,043 Operating lease liability, short-term 5,110 5,006 Finance lease liability, short-term 2,986 2,907 Total current liabilities 100,673 57,095 Operating lease liability, long-term 56,256 57,622 Finance lease liability, long-term 34,314 35,098 Other liabilities 13,073 11,986 Total liabilities 204,316 161,801 Commitments and contingencies (see Note 7) Redeemable non-controlling interest 1,790 1,770 Stockholders' equity Preferred stock- $ 0.0001 par value; 100,000 shares authorized; none issued and outstanding as of March 31, 2024 and December 31, 2023 — — Common stock - $ 0.0001 par value; 1,250,000 shares authorized ( 1,000,000 Class A and 250,000 Class B); 444,821 Class A and 54,666 Class B shares issued and outstanding as of March 31, 2024; 433,157 Class A and 59,874 Class B shares issued and outstanding as of December 31, 2023 50 49 Additional paid-in-capital 4,260,514 4,221,892 Accumulated other comprehensiv