Solid Power (NASDAQ: SLDP) raises $121M, ends Q1 with $435M cash
Rhea-AI Filing Summary
Solid Power, Inc. reported first-quarter 2026 revenue and grant income of $3.1 million, down 49% from $6.0 million a year earlier, mainly from lower milestone and collaboration revenue. The company recorded a net loss of $13.0 million, an improvement from a $15.2 million loss.
Nonoperating income benefited from a $9.6 million gain on the change in fair value of warrant liabilities and higher interest income. Liquidity strengthened, with $435.3 million in cash, cash equivalents and available-for-sale securities, supported by $121.3 million of net proceeds from a January 2026 registered direct equity offering.
Operating expenses were broadly stable at $29.4 million, as research and development spending edged lower and more material costs shifted to revenue-generating projects. Solid Power continues to invest in a continuous electrolyte production pilot line and solid-state battery development under collaborations with partners such as SK On and the U.S. Department of Energy.
Positive
- None.
Negative
- None.
Insights
Solid Power traded near-term revenue for cash strength and pilot-line build-out.
Solid Power remains a development-stage business, with Q1 2026 revenue and grant income falling to $3.1M from $6.0M as SK On collaboration milestones moderated. Despite this, operating expenses were roughly flat at $29.4M, reflecting disciplined spending while projects shift toward validation.
Reported loss narrowed to $13.0M, helped by a $9.6M non-cash gain from warrant revaluation and higher interest income on a growing securities portfolio of $403.8M. These items do not change the underlying cash burn from R&D and operations.
Liquidity is a key highlight: total cash and available-for-sale securities reached $435.3M, boosted by a $121.3M registered direct offering completed in January 2026. Management plans to use this capital to complete the continuous electrolyte production pilot line and support partnerships, including SK On and the DOE assistance agreement, which will shape the pace of future commercialization efforts.
Key Figures
Key Terms
cost-to-cost method financial
available-for-sale securities financial
warrant liabilities financial
equity method investee financial
registered direct offering financial
Assistance Agreement financial
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______
Commission file number:
(Exact name of registrant as specified in its charter)
| ||
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading symbol(s) | | Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ | Accelerated filer ☐ | Smaller reporting company | ||||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Table of Contents
SOLID POWER, INC.
FORM 10-Q
Table of Contents
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | 4 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 26 |
Item 4. | Controls and Procedures | 26 |
PART II. OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 27 |
Item 1A. | Risk Factors | 27 |
Item 6. | Exhibits | 28 |
Signatures | 29 | |
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. References in this Report to “Solid Power,” “the Company,” “we,” “us,” and “our” refer to Solid Power, Inc. and its consolidated subsidiaries. We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this Report, regarding our future financial performance, strategy, expansion plans, including plans related to the expansion of our electrolyte production capabilities, market opportunity, operations, and operating results; estimated revenues or losses; projected costs; future prospects; and plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project,” or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions about us that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Report. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control.
In addition, we caution you that the forward-looking statements regarding the Company contained in this Report are subject to the following factors:
| ● | risks relating to the uncertainty of the success of our research and development efforts, including our ability to achieve the technological objectives or results that our partners require and our ability to commercialize our technology in advance of competing technologies and our competitors; |
| ● | risks relating to our status as a research and development stage company with a history of financial losses with an expectation of incurring significant expenses and continuing losses for the foreseeable future, including execution of our business plan and the timing of expected business milestones; |
| ● | risks relating to the non-exclusive nature of our partnerships, our ability to secure new business relationships, and our ability to manage these relationships; |
| ● | our ability to negotiate and execute commercial agreements with our partners and customers on commercially reasonable terms; |
1
Table of Contents
| ● | broad market adoption of EVs and other technologies where we are able to deploy our technology, if developed successfully; |
| ● | our success attracting and retaining our executive officers, key employees, and other qualified personnel; |
| ● | our ability to protect and maintain our owned and exclusively-licensed intellectual property, including in jurisdictions outside of the United States; |
| ● | our ability to secure government contracts and grants, changes in government priorities with respect to our government contracts and grants or government funding reductions or delays, and the availability of government subsidies and economic incentives; |
| ● | delays in the construction and operation of facilities that meet our short-term research and development and long-term electrolyte production requirements; |
| ● | changes in applicable laws or regulations, including tariffs; |
| ● | risks relating to, and potential liabilities resulting from, our information technology infrastructure and data security incidents, threats, breaches, or attacks; |
| ● | risks relating to other economic, business, or competitive factors in the United States and other jurisdictions, including supply chain interruptions and changes in market conditions, and our ability to manage these risks and uncertainties; and |
| ● | those factors discussed in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), as such descriptions may be updated or amended in future filings we make with the Securities and Exchange Commission (“SEC”). |
We caution you that the foregoing list does not contain all of the risks or uncertainties that could affect the Company.
You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Report primarily on our current expectations and projections about future events and trends that we believe may affect our business, operating results, financial condition and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors, including those described in “Part I, Item 1A. Risk Factors” in the 2025 Form 10-K, as such descriptions may be updated or amended in future filings we make with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Report. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Report to reflect events or circumstances after the date of this Report or to reflect new information or the occurrence of unanticipated events, except as required by law. You should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
TRADEMARKS
Our logo and trademark appearing in this Report and the documents incorporated by reference herein are our property. This document and the documents incorporated by reference herein contain references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and trade names referred to in this Report may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks, or service marks to imply a relationship with, or endorsement or sponsorship of it by, any other companies.
2
Table of Contents
MARKET AND INDUSTRY DATA
We obtained the industry and market data used throughout this Report or any documents incorporated herein by reference from our own internal estimates and research, as well as from independent market research, industry and general publications and surveys, governmental agencies, publicly available information, and research, surveys, and studies conducted by third parties. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research, and our industry experience and are based on assumptions made by us based on such data and our knowledge of our industry and market, which we believe to be reasonable. In some cases, we do not expressly refer to the sources from which this data is derived. In addition, while we believe the industry and market data included in this Report or any documents incorporated herein by reference is reliable and based on reasonable assumptions, such data involve material risks and other uncertainties and is subject to change based on various factors, including those discussed in the section entitled “Risk Factors.” These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties or by us.
AVAILABLE INFORMATION
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are filed with the SEC. These reports and other information we file with or furnish to the SEC are available free of charge at https://www.solidpowerbattery.com/investor-relations/financials/sec-filings as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. In addition, the SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.
We use our website (www.solidpowerbattery.com) and various social media channels (e.g., Solid Power, Inc. on LinkedIn) as a means of disclosing information about Solid Power and our products to our customers, investors, and the public. The information posted on our website and social media channels is not incorporated by reference in this Report or in any other report or document we file with the SEC. Further, references to our website URLs are intended to be inactive textual references only. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about Solid Power when you enroll your e-mail address by visiting the “Investor Email Alerts” section of our website under “Resources” at https://ir.solidpowerbattery.com. Although our executive officers may also use certain social media channels, we do not use our executive officers’ social media channels to disclose information about Solid Power or our products.
3
Table of Contents
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Solid Power, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value and number of shares)
March 31, 2026 | |||||||
| (Unaudited) | | December 31, 2025 | ||||
Assets | |||||||
Current Assets |
| |
| | |||
Cash and cash equivalents | $ | | $ | | |||
Marketable securities | | | |||||
Accounts receivable |
| |
| | |||
Contract assets | | | |||||
Prepaid expenses and other current assets |
| |
| | |||
Total current assets |
| |
| | |||
Long-Term Assets | |||||||
Property, plant and equipment, net |
| | | ||||
Right-of-use operating lease assets, net | | | |||||
Investments | | | |||||
Intangible assets, net |
| | | ||||
Other assets | | | |||||
Loan receivable from equity method investee | | | |||||
Total long-term assets | | | |||||
Total assets | $ | | $ | | |||
Liabilities, Mezzanine Equity and Stockholders’ Equity |
|
| |||||
Current Liabilities |
|
| |||||
Accounts payable and other accrued liabilities | | | |||||
Deferred revenue |
| | | ||||
Deferred revenue from related parties | | | |||||
Accrued compensation |
| | | ||||
Operating lease liabilities | | | |||||
Total current liabilities |
| |
| | |||
Long-Term Liabilities | |||||||
Warrant liabilities | | | |||||
Operating lease liabilities | | | |||||
Other liabilities |
| | | ||||
Total long-term liabilities | | | |||||
Total liabilities | | | |||||
Mezzanine Equity | |||||||
Mezzanine Equity | | | |||||
Stockholders’ Equity |
| |
| | |||
Common Stock, $ |
| | | ||||
Additional paid-in capital |
| | | ||||
Accumulated deficit |
| ( | ( | ||||
Accumulated other comprehensive income | ( | | |||||
Total stockholders’ equity |
| |
| | |||
Total liabilities, mezzanine equity and stockholders’ equity | $ | | $ | | |||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
4
Table of Contents
Solid Power, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
(in thousands, except number of shares and per share amounts)
Three Months Ended March 31, | |||||||
2026 | | 2025 | |||||
Revenues and Grant Income | |||||||
Revenue | $ | | $ | | |||
Grant income | | | |||||
Total revenue and grant income | | | |||||
Operating Expenses |
| ||||||
Direct costs | | | |||||
Research and development | | | |||||
Selling, general and administrative | | | |||||
Total operating expenses | |
| | ||||
Operating Loss | ( |
| ( | ||||
Nonoperating Income and Expense |
| ||||||
Interest income | | | |||||
Change in fair value of warrant liabilities | | | |||||
Interest expense | ( | ( | |||||
Other income (expense) | | ( | |||||
Total nonoperating income and expense | |
| | ||||
Pretax Loss | $ | ( | $ | ( | |||
Income tax expense | | — | |||||
Share of net loss of equity method investee | | | |||||
Net Loss Attributable to Common Stockholders | $ | ( | $ | ( | |||
Other Comprehensive Income (Loss) | ( | | |||||
Comprehensive Loss Attributable to Common Stockholders | $ | ( | $ | ( | |||
Basic and diluted loss per share | $ | ( | $ | ( | |||
Weighted average shares outstanding – basic and diluted | | | |||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
5
Table of Contents
Solid Power, Inc.
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)
(in thousands, except number of shares)
Common Stock | ||||||||||||||||||
Additional | Accumulated | Accumulated Other | Total Stockholders’ | |||||||||||||||
| Shares | | Amount | | paid-in capital | | deficit | | Comprehensive Income | | Equity | |||||||
Balance as of December 31, 2025 | | $ | | $ | | $ | ( | $ | | $ | | |||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||
Withholding of employee taxes related to stock-based compensation | — | — | ( | — | — | ( | ||||||||||||
Shares of common stock issued for vested RSUs | | — | — | — | — | — | ||||||||||||
Stock options exercised | | — | | — | — | | ||||||||||||
Stock-based compensation expense | — | — | | — | — | | ||||||||||||
Remeasurement of mezzanine equity | — | — | — | | — | | ||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | ( | ( | ||||||||||||
Proceeds from the registered direct offering, net of offering costs, commissions, and fees of $ | | | | — | — | | ||||||||||||
Balance as of March 31, 2026 | | $ | | $ | | $ | ( | $ | ( | $ | | |||||||
Common Stock | ||||||||||||||||||
Additional | Accumulated | Accumulated Other | Total Stockholders’ | |||||||||||||||
| Shares | | Amount | | paid-in capital | | deficit | | Comprehensive Loss | | Equity | |||||||
Balance as of December 31, 2024 | | $ | | $ | | $ | ( | $ | | $ | | |||||||
Net loss | — | — | — | ( | — | ( | ||||||||||||
Withholding of employee taxes related to stock-based compensation | — | — | ( | — | — | ( | ||||||||||||
Shares of common stock issued for vested RSUs | | — | — | — | — | — | ||||||||||||
Stock options exercised | | — | | — | — | | ||||||||||||
Repurchase and retirement of shares of common stock | — | — | — | — | — | — | ||||||||||||
Stock-based compensation expense | — | — | | — | — | | ||||||||||||
Remeasurement of mezzanine equity | — | — | — | | | |||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | | | ||||||||||||
Balance as of March 31, 2025 | | $ | | $ | | $ | ( | $ | | $ | | |||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
6
Table of Contents
Solid Power, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three Months Ended March 31, | |||||||
| 2026 | | 2025 | ||||
Cash Flows from Operating Activities |
| ||||||
Net loss | $ | ( | $ | ( | |||
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: |
| ||||||
Depreciation and amortization | | | |||||
Amortization of right-of-use assets | | | |||||
Loss on sales of property, plant and equipment, net | | | |||||
Share of net loss of equity method investee | | | |||||
Stock-based compensation expense | | | |||||
Change in fair value of warrant liabilities | ( | ( | |||||
Accretion of discounts on other long-term liabilities | | | |||||
Accretion of loan receivable from equity method investee | ( | ( | |||||
Amortization of premiums and accretion of discounts on available-for-sale securities | ( | ( | |||||
Loss on change in assessment of finance lease purchase options | — | | |||||
Change in operating assets and liabilities that provided (used) cash and cash equivalents: | |||||||
Accounts receivable | ( | ( | |||||
Contract assets | ( | — | |||||
Prepaid expenses and other current assets and other assets | | ( | |||||
Accounts payable and other accrued liabilities | | ( | |||||
Deferred revenue | — | ( | |||||
Accrued compensation | ( | ( | |||||
Operating lease liabilities | ( | ( | |||||
Net cash and cash equivalents used in operating activities | ( |
| ( | ||||
Cash Flows from Investing Activities |
| ||||||
Purchases of property, plant and equipment, net | ( | ( | |||||
Purchases of available-for-sale securities | ( | ( | |||||
Proceeds from sales of available-for-sale securities | | | |||||
Purchases of intangible assets | — | ( | |||||
Net cash and cash equivalents (used in) provided by investing activities | ( |
| | ||||
Cash Flows from Financing Activities |
| ||||||
Proceeds from exercise of stock options | | | |||||
Cash paid for withholding of employee taxes related to stock-based compensation | ( | ( | |||||
Payments on finance lease liabilities | ( | ( | |||||
Proceeds from the registered direct offering, net of fees | | — | |||||
Net cash and cash equivalents provided by (used in) financing activities | | ( | |||||
Net increase in cash and cash equivalents | | | |||||
Cash and cash equivalents at beginning of period | | | |||||
Cash and cash equivalents at end of period | | | |||||
Supplemental information | |||||||
Cash paid for interest | $ | | $ | | |||
Accrued capital expenditures | | | |||||
Unpaid reimbursements on capital expenditures | | ||||||
Accrued direct offering costs for the issuance of common stock | — | ||||||
See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
7
Table of Contents
Notes to Condensed Consolidated Financial Statements (Unaudited) (in thousands, except number of shares and per share amounts)
Note 1 – Nature of Business
Solid Power, Inc. (the “Company”) is developing solid-state battery technology for the battery electric vehicle (“EV”) and other markets. The Company’s planned business model is to sell its electrolyte and to license its cell designs and manufacturing processes.
Note 2 – Significant Accounting Policies
The significant accounting policies followed by the Company are set forth in Note 2 – Significant Accounting Policies to the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”) and are supplemented by the Notes to the Condensed Consolidated Financial Statements (Unaudited) in this Report (the “Notes”). The financial statements included in this Quarterly Report on Form 10-Q (including the Notes) should be read in conjunction with the 2025 Form 10-K.
Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at, and for, the periods presented. The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ from those estimates. All dollar amounts presented herein are in U.S. dollars and are in thousands, except par value and share and per share amounts. The accompanying unaudited condensed consolidated financial statements include accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The Company accounts for its equity ownership in Dahae Energy Co., Ltd. (“Dahae”), an entity in which the Company does not exercise control or have the obligation to absorb losses or receive benefits, as a variable interest entity (“VIE”). A VIE is a legal entity that possesses any of the following conditions: the entity’s equity at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, equity owners are unable to direct the activities that most significantly impact the legal entity’s economic performance (or they possess disproportionate voting rights in relation to the economic interest in the legal entity), or the equity owners lack the obligation to absorb the legal entity’s expected losses or the right to receive the legal entity’s expected residual returns. The Company consolidates a VIE if the Company determines that it has (i) the power to direct the activities of the VIE that most significantly impacts its economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that are more than insignificant to the VIE. If an entity is determined to be a VIE but the Company does not have a controlling interest, the entity is accounted for under either the cost or equity method depending on whether the Company can exercise significant influence. The Company has determined that it does not meet the control requirements to consolidate Dahae and accounts for the investment using the equity method of accounting. The Company evaluates its relationships with Dahae on an ongoing basis, including when the Company believes a loss in value may have occurred which is other than temporary. The Company measures its equity method investment at cost minus impairment, if any, plus or minus the share of the equity method investee’s loss or gain. Activity is included in Investments in the Condensed Consolidated Balance Sheets and separately within Share of net loss of equity method investee in the Condensed Consolidated Statements of Operations and Comprehensive Loss and within Cash Flows from Investing Activities in the Condensed Consolidated Statements of Cash Flows.
Revenue and Grant Income
The Company assesses all collaborative arrangements to determine whether the agreement should be recorded in accordance with Accounting Standards Codification (“ASC”) 808 – Collaborative Arrangements. Collaborative arrangements involve two or more parties who are active participants and meet the following components: both parties are exposed to significant risks and rewards, and both parties are dependent on the commercial success of the efforts under the contract. Revenue recognition is recorded by analogy to ASC 606 – Revenue from Contracts with Customers. The Company’s agreements with SK On Co., Ltd. (“SK On” and such agreements, the “SK On Agreements”) meet the criteria of collaborative arrangements. Amounts received for these products and services are classified as Revenue in the Condensed Consolidated Statements of Operations and Comprehensive Loss. The Company recognizes revenue utilizing the cost-to cost method to satisfy the performance obligation. The Company expenses contract fulfillment costs as incurred.
8
Table of Contents
Prior to January 1, 2025, the Company recognized revenue from the Company’s collaborative arrangement, including the SK On Agreements, over time using the input measurement method utilizing labor hours in relation to total labor hours anticipated to satisfy the performance obligation. Effective January 1, 2025, the Company changed its basis of input to utilize the cost-to cost method to satisfy the performance obligation. The Company made this adjustment because it believes using the cost-to-cost method provides more accurate reflection of how performance is satisfied over time. This adjustment is treated as a change in estimate beginning on January 1, 2025, and prior period amounts will not be adjusted. The Company expenses contract fulfillment costs as incurred.
The Company estimates whether it will be subject to variable consideration under the terms of a contract and includes its estimate of variable consideration, subject to constraint, in the transaction price based on the expected value method when it is deemed probable of being realized based on historical experience and trends. The Company updates its estimate of the transaction price each reporting period, and the effect of variable consideration on the transaction price is recognized as an adjustment to revenue on a cumulative catch-up basis.
The Company recognizes revenue from cooperative agreements with the government in cost contracts on the basis of costs incurred during the period and for cost plus fixed-fee contracts on the basis of costs incurred during the period plus the fee earned. Contract costs include all direct labor, subcontract, material, and indirect costs related to the contract performance.
On January 21, 2025, Solid Power Operating, Inc. entered into an assistance agreement with the U.S. Department of Energy (“DOE”) with an effective date of January 1, 2025 (as amended effective May 15, 2025 and amended and restated effective January 1, 2026, the “Assistance Agreement”). The Assistance Agreement provides that DOE will provide the Company with funding of up to $
For electrolyte sales, the Company recognizes revenue when the control of the goods is transferred to the customer and for the amount of consideration the Company expects to receive.
Warrants
The Company accounts for warrants as either liabilities or equity based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480—Distinguishing Labilities from Equity and ASC 815—Hedge Accounting. Warrants recorded as liabilities are recorded at their fair value within Warrant liabilities in the Condensed Consolidated Balance Sheets and remeasured on each reporting date with changes recorded in Change in fair value of warrant liabilities in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. Warrants recorded as equity are recorded at their fair value at issuance (less direct issuance costs) in Additional Paid-In Capital and are not remeasured.
Segment Reporting
The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The Company has determined that it operates in
Recent Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2024-03 Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. ASU 2024-03 requires disclosure of specified information about certain costs and expenses in the notes to the financial statements. ASU 2024-03 will be effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. ASU 2024-03 can be applied either prospectively to financial statements or retrospectively to any prior periods presented in the financial statements. The Company is evaluating the impact.
9
Table of Contents
In December 2025, the FASB issued ASU No. 2025-10 Government Grants (Topic 832). ASU 2025-10 establishes authoritative guidance on the recognition, measurement and presentation of government grants received by business entities. The guidance is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods beginning after December 15, 2028, with early adoption permitted. The guidance is applied on a modified prospective, a modified retrospective, or a retrospective transition approach. The Company is currently evaluating the impact of adoption on the Condensed Consolidated Financial Statements and disclosures.
In December 2025, the FASB issued ASU No. 2025-11 Interim Reporting (Topic 270). ASU 2025-11 clarifies guidance related to Topic 270 for interim disclosure requirements. The objective of the amendment is to provide clarity about the current requirements rather than evaluate whether to expand or reduce interim disclosure requirements. ASU 2025-11 is effective for interim reporting periods beginning after December 15, 2027, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the disclosure impact of ASU 2025-11.
The Company early adopted ASU-2025-05, Financial Instruments – Credit Losses (Topic 326) which provides a practical expedient for estimating expected credit losses on financial assets measured at amortized cost, including accounts receivable and contract assets. The adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements.
Note 3 – Property, Plant and Equipment, Net
Property, plant and equipment, net are summarized as follows:
| March 31, 2026 | | December 31, 2025 | ||||
Production equipment | $ | | $ | | |||
Laboratory equipment | | | |||||
Leasehold improvements |
| |
| | |||
Furniture and computer equipment |
| |
| | |||
Construction in progress |
| |
| | |||
Total cost |
| |
| | |||
Accumulated depreciation |
| ( |
| ( | |||
Property, plant and equipment, net | $ | | $ | | |||
Depreciation expenses for dedicated laboratory equipment and production equipment are charged to research and development. Office equipment, leasehold improvements, software, and computer equipment related depreciation expenses are allocated between research and development and selling, general and administrative expenses based on the nature of its use.
Depreciation expense related to property, plant and equipment are summarized as follows:
Three Months Ended March 31, | |||||||
2026 | | 2025 | |||||
Depreciation expense | $ | | $ | | |||
As of March 31, 2026, the Company is designing a continuous electrolyte production pilot line which it expects to be substantially complete and commissioned by the end of 2026. Construction in progress related to property, plant and equipment is summarized as follows:
Construction in progress | March 31, 2026 | December 31, 2025 | |||||
Continuous electrolyte pilot manufacturing line | $ | | $ | | |||
Cell safety abuse lab | — | | |||||
EIC | | | |||||
Other capital projects | | | |||||
Total | $ | | $ | | |||
10
Table of Contents
Note 4 – Intangible Assets
Intangible assets are summarized as follows:
| March 31, 2026 | | December 31, 2025 | ||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||
| Amount | | Amortization | | Amount | | Amortization | ||||||
Intangible assets: | |||||||||||||
Licenses | $ | | $ | ( | $ | | $ | ( | |||||
Patents | | ( | | ( | |||||||||
Patents pending |
| |
|
| |
| — | ||||||
Trademarks | | | — | ||||||||||
Trademarks pending |
| |
|
| |
| — | ||||||
Total amortizable intangible assets | $ | | $ | ( | $ | | $ | ( | |||||
Amortization expense for intangible assets is summarized as follows:
Three Months Ended March 31, |
| ||||||
2026 | | 2025 |
| ||||
Amortization expense | $ | | $ | | |||
Useful lives of intangible assets range from three to
Note 5 – Revenue and Grant Income
The Company receives revenue and grant income from both government and non-government entities. Government revenue and grant income includes both revenue and grant income from collaborative arrangements. Non-government revenue includes both revenue from collaborative arrangements and electrolyte sales. The table below sets forth revenue and grant income by type for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31, | ||||||
2026 | | 2025 | ||||
Government - revenue | $ | | $ | | ||
Government - grant income | | | ||||
Non-government revenue | | | ||||
Total revenue and grant income | $ | | $ | | ||
Note 6 – Fair Value Measurements
The carrying amount of certain financial instruments, such as cash equivalents, accounts receivable, accounts payable, and accrued liabilities, approximate fair value due to their relatively short maturities. The difference between the amortized cost and fair value of available-for-sale securities as of March 31, 2026 and December 31, 2025 was not material.
Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The following table summarizes the asset type, balance sheet classification, maturity, and value of the Company’s marketable securities and investments in the Condensed Consolidated Balance Sheets.
11
Table of Contents
Assets | Balance Sheet Classification | Maturity | March 31, 2026 | December 31, 2025 | |||
Commercial Paper | Marketable securities | $ | | $ | | ||
Corporate Bonds | Marketable securities | | | ||||
Government Bonds | Marketable securities | | | ||||
U.S. Treasuries | Marketable securities | | | ||||
Total Marketable securities | $ | | $ | | |||
Corporate Bonds | Investments | $ | | $ | | ||
Government Bonds | Investments | | | ||||
Equity Method Investment | Investments | | | ||||
Total Investments | $ | | $ | | |||
See Note 2 – Significant Accounting Policies to the Company’s financial statements included in the 2025 Form 10-K, as supplemented by the Notes, for information regarding Levels 1 through Level 3 inputs.
As of March 31, 2026 and December 31, 2025, the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis were classified within the fair value hierarchy as follows:
March 31, 2026 | |||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | ||||||
Assets | Balance Sheet Classification | ||||||||||||
Commercial Paper | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Corporate Bonds | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Government Bonds | Marketable securities |
| $ | | $ | — | $ | — |
| $ | | ||
U.S. Treasuries | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Corporate Bonds | Investments | $ | | $ | — | $ | — | $ | | ||||
Government Bonds | Investments | $ | | $ | — | $ | — | $ | | ||||
Bifurcated embedded derivative | Loan receivable from equity method investee | $ | — | $ | — | $ | | $ | | ||||
Liabilities | |||||||||||||
Public Warrants | Warrant liabilities | $ | | $ | — | $ | — | $ | | ||||
Private Placement Warrants | Warrant liabilities | $ | — | $ | | $ | — | $ | | ||||
December 31, 2025 | |||||||||||||
| Level 1 | | Level 2 | | Level 3 | | Total | ||||||
Assets | Balance Sheet Classification | ||||||||||||
Commercial Paper | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Corporate Bonds | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Government Bonds | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
U.S. Treasuries | Marketable securities | $ | | $ | — | $ | — | $ | | ||||
Corporate Bonds | Investments | $ | | $ | — | $ | — | $ | | ||||
Government Bonds | Investments | $ | | $ | — | $ | — | $ | | ||||
Bifurcated embedded derivative | Loan receivable from equity method investee | $ | — | $ | — | $ | | $ | | ||||
Liabilities | |||||||||||||
Public Warrants | Warrant liabilities | $ | | $ | — | $ | — | $ | | ||||
Private Placement Warrants | Warrant liabilities | $ | — | $ | | $ | — | $ | | ||||
The change in fair value of the Company’s marketable securities and investments are included in Other Comprehensive Income (Loss) in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss. There were
12
Table of Contents
During the three months ended March 31, 2026 and 2025, the Company purchased $
Fair Value of Bifurcated Embedded Derivative
The fair value of the bifurcated embedded derivative (the “Derivative”) has been estimated using the with-and-without method as of March 31, 2026 using Level 3 unobservable inputs and Level 2 directly or indirectly observable inputs, including estimated credit rating, risk-free interest rates, and expected future cash flows. Material increases or decreases in any of those inputs may result in a significantly higher or lower fair value measurement. Material increases or decreases in expected future cash flows may result in a significantly higher or lower estimated fair value of the Derivative. See Note 12 – Related Party Transactions for more information.
Fair Value of Public Warrants and Private Placement Warrants
The fair value of the private placement warrants issued as part of the Company’s business combination in 2021 (the “Private Placement Warrants”) have been estimated using a Black-Scholes model as of March 31, 2026 and December 31, 2025. The estimated fair value of the Private Placement Warrants is determined using Level 2 directly or indirectly observable inputs. Inherent in a Black-Scholes model are assumptions related to expected stock-price volatility, expected life, risk-free interest rate, and dividend yield. Material increases (or decreases) in any of those inputs may result in a significantly higher (or lower) fair value measurement. The Company estimates the volatility of its Private Placement Warrants based on implied volatility from the Company’s publicly-traded warrants (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”) and from historical volatility of select peer companies’ common stock that matches the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve for a maturity similar to the expected remaining life of the Warrants. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. The fair value of the Public Warrants has been measured based on the quoted price of such warrants on the Nasdaq Stock Market, a Level 1 input.
The following table provides quantitative information regarding Level 2 inputs used in the recurring valuation of the Private Placement Warrants as of their measurement dates.
| March 31, 2026 | | December 31, 2025 |
| |||
Exercise price | $ | | $ | | |||
Stock price | $ | | $ | | |||
Volatility |
| | % |
| | % | |
Term (in years) |
| |
| | |||
Risk-free rate |
| | % |
| | % | |
The following table provides a roll forward (per Warrant) of the Public Warrants measured at fair value using Level 1 inputs and Private Placement Warrants measured at fair value using Level 2 inputs.
Public Warrants | Private Placement Warrants | |||||
| Level 1 Fair Value | | Level 2 Fair Value | |||
December 31, 2025 | $ | | $ | | ||
Change in fair value | $ | ( | $ | ( | ||
March 31, 2026 | $ | | $ | | ||
See Note 7 – Warrants for more information.
Note 7 – Warrants
Public Warrants and Private Placement Warrants
The table below provides a summary of the outstanding Public and Private Placement Warrants classified as a liability.
| March 31, 2026 | | December 31, 2025 | |
Public Warrants | | | ||
Private Placement Warrants | | |
13
Table of Contents
Each whole Warrant entitles the holder thereof to purchase
None of the Private Placement Warrants are redeemable by the Company so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. The table below provides the fair value of warrant liabilities at:
| March 31, 2026 | | December 31, 2025 | |||
Fair value of warrant liabilities | $ | | $ | |
The table below provides the gain (loss) recognized in connection with changes in fair value of warrant liabilities at:
Three Months Ended March 31, | |||||||
| 2026 | | 2025 | ||||
Gain (Loss) recognized associated with warrant liabilities | $ | | $ | | |||
There have been no changes to the terms of the Public or Private Placement Warrants disclosed in the 2025 Form 10-K.
Pre-Funded Warrants and Common Warrants
In January 2026, the Company issued pre-funded warrants (the “Pre-Funded Warrants”) to purchase an aggregate of
Note 8 – Stockholders’ Equity
Common Stock
Stock options exercised for common stock and shares of common stock issued upon vesting of restricted stock units (“RSUs”) for the three months ended March 31, 2026 and 2025 are summarized in the table below.
Three Months Ended March 31, | |||||
2026 | | 2025 | |||
Stock options exercised | | ||||
Shares of common stock issued for vested RSUs | | ||||
The table below presents the cash received or paid associated with common stock related activities for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31, | |||||
| 2026 | | | 2025 | |
Cash received from stock options exercised | $ | | $ | | |
At-the-Market Offering
On September 5, 2025, the Company entered into an Equity Distribution Agreement (the “Distribution Agreement”) with Oppenheimer & Co. Inc., serving as agent (“Oppenheimer”), with respect to an at-the-market offering program (the “ATM”) under which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $
14
Table of Contents
stock under the Distribution Agreement. As of March 31, 2026, approximately $
Registered Direct Offering
On January 28, 2026, the Company entered into a securities purchase agreement with a single sector-focused institutional investor for the direct offering of
Note 9 – Stock-Based Compensation
There have been no changes to the Solid Power, Inc. 2014 Equity Incentive Plan (the “2014 Plan”), the Solid Power, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), the Solid Power, Inc. 2021 Employee Stock Purchase Plan (“ESPP”), the Company’s accounting for stock-based compensation under those plans, or the restricted stock grants to
The fair value of stock options and RSUs under the 2021 Plan is recognized as compensation expense over the vesting period of the award. The Company accounts for forfeitures as they occur.
For the three months ended March 31, 2026 and 2025, the Company recognized compensation costs totaling:
Three Months Ended March 31, | ||||||
2026 | | 2025 | ||||
Stock-based compensation costs related to RSUs | $ | | $ | | ||
Stock-based compensation costs related to stock options |
| |
| | ||
Stock-based compensation costs related to the ESPP | | | ||||
Total stock-based compensation costs | $ | | $ | | ||
Unrecognized future compensation costs as of March 31, 2026 were $
The following table summarizes the Company’s award activity for RSUs and stock options for the three months ended March 31, 2026:
RSUs | Stock Options | ||||
Balance at December 31, 2025 | | | |||
Granted | | — | |||
Vested or Exercised | ( | ( | |||
Forfeited | ( | — | |||
Expired | — | — | |||
Balance at March 31, 2026 | | |
15
Table of Contents
Restricted Stock Grants to Dahae Executives
On October 21, 2024, the Company issued
Note 10 – Basic and Diluted Loss Per Share
The table below sets forth the basic and diluted loss per share calculation for the three months ended March 31, 2026 and 2025.
Three Months Ended March 31, | |||||||
2026 | 2025 | ||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | |||
Weighted average shares outstanding – basic and diluted | |||||||
Basic and diluted loss per share | $ | ( | $ | ( | |||
Basic weighted average shares outstanding for the three months ended March 31, 2026 and 2025 include
Three Months Ended March 31, | |||||
2026 | | 2025 | |||
Public Warrants and Private Placement Warrants | |
| | ||
Common Warrants | | — | |||
2014 Plan & 2021 Plan - Stock Options | |
| |||
2021 Plan - RSUs | |
| |||
ESPP - Common Stock | | | |||
Restricted stock grants to Dahae executives | | | |||
Total potentially dilutive securities | | | |||
Note 11 – Leases
The Company leases its facilities and certain equipment. Fixed rent for the Company’s facilities escalates each year, and the Company is responsible for a portion of the landlords’ operating expenses such as property tax, insurance, and common area maintenance.
The Company’s facility in Louisville, Colorado is under a noncancelable operating lease with a maturity date in December 2029. In 2022, the Company amended this operating lease to incorporate a prior subleased space into the base lease and extend the term of the lease. In 2024, the Company amended this operating lease to incorporate additional space and further extend the term of the lease. The Company has the right to renew this operating lease for an additional
On September 1, 2021, the Company entered into an industrial operating lease agreement for its facility in Thornton, Colorado, with the initial term through March 31, 2029. Under this operating lease, the Company has one option to renew for
16
Table of Contents
The Company has certain equipment leases classified as finance leases as of March 31, 2026. In the Condensed Consolidated Balance Sheets, the Company records its right-of-use finance lease assets, net within Other assets, records its short-term finance lease liabilities within Accounts payable and other accrued liabilities, and records its long-term finance lease liabilities within Other liabilities.
The Company’s leases do not have any contingent rent payments and do not contain residual value guarantees.
The components of lease expense are as follows:
| Three Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
Finance lease costs: |
| ||||||
Amortization of right-of-use assets | $ | | $ | | |||
Interest on lease liabilities |
| |
| | |||
Operating lease costs |
| |
| | |||
Total lease expense | $ | | $ | | |||
The components of cash flow information related to leases are as follows:
| Three Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
Operating outgoing cash flows – finance leases | $ | | $ | | |||
Financing outgoing cash flows – finance leases |
| |
| | |||
Operating outgoing cash flows – operating leases |
| |
| | |||
Right-of-use assets obtained in exchange for new, modified, and remeasured finance lease liabilities: | — | ( | |||||
Right-of-use assets obtained in exchange for new, modified, and remeasured operating lease liabilities: | — | ||||||
The supplemental balance sheet information related to leases is as follows:
| March 31, 2026 |
| |
Finance lease |
| ||
Weighted-average remaining lease term – finance leases (in years) |
| ||
Weighted-average discount rate – finance leases |
| | % |
Operating lease |
| ||
Weighted-average remaining lease term – operating leases (in years) |
| ||
Weighted-average discount rate – operating leases |
| | % |
As of March 31, 2026, future minimum payments during the next five years and thereafter are as follows:
Fiscal year | | Finance Lease | | Operating Lease | ||
2026 (remaining nine months) | | | ||||
2027 | | | ||||
2028 | | | ||||
2029 | — | | ||||
2030 | — | | ||||
Thereafter | — | | ||||
Total | | | ||||
Less present value discount | ( | ( | ||||
Total lease liabilities | $ | | $ | | ||
17
Table of Contents
Note 12 – Related Party Transactions
BMW of North America LLC
During 2022, the Company amended its joint development agreement (“JDA”) with BMW of North America LLC (“BMW”) to provide a research and development-only license to certain of the Company’s intellectual property relating to cell manufacturing. The license allows, among other things, BMW to install a solid-state prototype cell manufacturing line based on the Company’s proprietary information. The license is limited to BMW’s research and development activities and may not be used for commercial battery cell production. During 2024, the Company further amended its JDA with BMW to extend the term of the JDA, revise the payment schedule, and revise certain deliverables and the timing to achieve various milestone and development targets and confirm cell performance requirements.
Before BMW’s installation of its cell manufacturing line, the Company and BMW have agreed to joint development and manufacturing activities at the Company’s facilities. Any intellectual property developed jointly by the Company and BMW at the Company’s facilities will be solely owned by the Company. To the extent intellectual property is jointly conceived elsewhere, the Company and BMW will jointly own such intellectual property. The intellectual property developed by us or BMW individually will be owned by such party. Both parties will have the right to utilize the other party’s technical improvements for research and development purposes only. The Company, with certain limitations, has the right to cause BMW to license BMW’s technical improvements to the Company for commercial purposes.
BMW agreed to pay the Company $
Dahae Energy Co., Ltd.
During 2024, the Company entered into a series of transactions with Dahae, a strategic partner in the Republic of Korea. Dahae provides process engineering support for the Company’s pilot cell lines and is serving as the installer for installation of a pilot cell manufacturing line at SK On’s facility. The transactions included, among other things, a bond (the “Bond”) with detachable warrants (the “Detachable Warrants”) and the Derivative, restricted stock grants to
The Company acquired a
As of March 31, 2026 and December 31, 2025, the Bond had an unamortized discount of $
The Company recorded the Detachable Warrants within Investments in the Condensed Consolidated Balance Sheets at a fair value upon acquisition of $
The Company granted
The Company entered into a term loan facility with Dahae. Dahae drew upon the facility on November 3, 2024, with a principal balance of $
18
Table of Contents
All financing agreements between the Company and Dahae are collateralized by Dahae’s assets and a minority equity interest in Dahae. The Company has committed to provide up to $
The table below presents the summarized transactions recorded in the Condensed Consolidated Balance Sheets related to the Company’s equity method investment for the periods presented. The transactions reflected in the table below coupled with the term loan facility of $
March 31, 2026 | | December 31, 2025 | ||
Bond | $ | | $ | |
Loan | | | ||
Warrants | | | ||
Equity method investment (a) | | | ||
Mezzanine equity |
| (a) | The change in equity method investment from December 31, 2025 to March 31, 2026 reflects Dahae’s loss of $ |
The table below presents the summarized transactions recorded in the Condensed Consolidated Statements of Operations and Comprehensive Loss related to the Company’s equity method investment for the three months ended March 31, 2026 and 2025, respectively.
Three Months Ended March 31, | |||||
2026 | 2025 | ||||
Interest income | $ | | $ | | |
Share of net loss of equity method investee | | | |||
Other comprehensive income | | | |||
Note 13 – Income Taxes
The Company’s effective tax rate was (
The Company's quarterly provision for income taxes is calculated by applying a projected annual effective tax rate, calculated separately for the United States and Republic of Korea, to ordinary pre-tax book income.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes, among other things the permanent extension of certain provisions of the U.S. Tax Cuts and Jobs Act of 2017, modifications to the United States’ international tax framework, restoration of favorable tax treatment for certain business provisions, and acceleration of the phase-out of EV credits. The OBBBA contains a variety of effective dates, with certain provisions effective in 2025 and others implemented through 2027. The OBBA did not have a material impact on the reported results of operations.
Note 14 – Contingencies
The Company may be party to litigation from time to time in the normal course of business. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company.
On December 3, 2024,
19
Table of Contents
Power Operating, Inc. with a subsidiary of DCRC and seeks to recover unspecified damages and equitable relief. None of the Company, its subsidiaries, or its current officers or directors, except Mr. Anderson, is named as a defendant. The Hamilton Defendants have demanded indemnification and advancement of defense costs from the Company. Accordingly, it is reasonably possible that the Company could be liable for the legal fees, defense costs, judgments, and/or settlement fees incurred by certain of the Hamilton Defendants. The proceedings are subject to uncertainties inherent in the litigation process, and the Company cannot currently estimate a reasonably possible loss.
Note 15 – Subsequent Events
Effective April 10, 2026, the Company achieved the site acceptance testing milestone under its line installation agreement with SK On. As a result of achieving this milestone, the Company obtained an unconditional right to consideration in accordance with the terms of the line installation agreement and the Company’s revenue recognition policies. On the date of achievement, the Company reclassified $
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this Report. The following discussion contains forward-looking statements that reflect future plans, estimates, beliefs, and expected performance. For additional discussion, see “Cautionary Note Regarding Forward-Looking Statements” above. The forward-looking statements are dependent upon events, risks, and uncertainties that may be outside of our control. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed elsewhere in this Report, under “Part I, Item 1A. Risk Factors” of the 2025 Form 10-K, as such descriptions may be updated or amended in future filings we make with the SEC. Unless indicated otherwise, the following discussion and analysis of results of operations and financial condition and liquidity relates to our current continuing operations and should be read in conjunction with the consolidated financial statements and notes thereto of this Report and the 2025 Form 10-K. We do not undertake, and expressly disclaim, any obligation to publicly update any forward-looking statements, whether as a result of new information, new developments, or otherwise, except to the extent that such disclosure is required by applicable law.
Overview
Solid Power is a U.S.-based leader in solid-state battery technology and manufacturing processes. Our core technology is a sulfide-based solid electrolyte material, which replaces the liquid or gel electrolyte used in traditional lithium-ion battery cells. We believe our electrolyte technology has the potential to enable a step-change improvement in battery cell performance beyond what is currently achievable in conventional lithium-ion battery cells, including improved energy density, battery life, and safety performance. We are currently targeting the battery electric vehicle market due to the size and perceived demand for next generation battery technology but believe our technologies can have a broader application as they mature.
2026 Development Objectives
We made progress on our 2026 development objectives as the solid-state battery landscape continues to evolve. Below is a summary of recent progress towards our goals.
| ● | Strengthen relationships with our partners through continued execution – We approached completion of site acceptance testing under our line installation agreement with SK On Co., Ltd. (“SK On”), which was formally completed in April 2026. |
| ● | Continue executing on our electrolyte development roadmap – We began construction and completed factory acceptance of all key equipment for a continuous manufacturing pilot line for sulfide electrolyte production; commissioning of the line remains on track for the end of 2026. In addition, we continued to explore potential partners for commercial-scale electrolyte production in the Republic of Korea. |
| ● | Promote electrolyte product competitiveness – We provided Samsung SDI Co., Ltd. with electrolyte under our Joint Evaluation Agreement with Samsung SDI Co., Ltd. and BMW AG and continued sampling electrolyte to other customers. |
20
Table of Contents
| ● | Remain fiscally disciplined – We remained fiscally disciplined, balancing financial discipline with appropriate investments in technology developments and process improvements. We also raised gross proceeds of $130.0 million through a registered direct offering in January 2026. See “—Results of Operations” and “—Liquidity and Capital Resources” for more information. |
Key Factors Affecting Operating Results
We are a research and development-stage company and have not generated cash flows through the sale of our electrolyte or licensing of our cell designs to adequately cover our costs. 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.
Prior to reaching commercialization, we must improve our products to ensure they meet the performance requirements of our customers. We also will have to negotiate commercial agreements 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, require capital, and affect our operating results. Since many factors are difficult to quantify, our actual operating results may be different than currently anticipated.
Revenue generated to date has primarily come from performance on research and development licensing agreements, line installation agreement, 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 administrative expenses as a publicly traded company.
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.
Basis of Presentation
We currently conduct our business through one operating segment and one reportable segment. As a research and development company with no commercial operations, our activities to date have been limited and were conducted primarily in the United States and the Republic of Korea. Our historical results are reported under U.S. generally accepted accounting principles and in U.S. dollars.
21
Table of Contents
Results of Operations
Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
During the three months ended March 31, 2026, our capital and operational investments supported our key 2026 development objectives.
Three Months Ended March 31, | Change | |||||||||
2026 | | 2025 | $ | % | ||||||
Revenues and Grant Income | ||||||||||
Revenue | $ | 2,105 | $ | 5,125 | $ | (3,020) | (59)% | |||
Grant income | 968 | 891 | 77 | 9% | ||||||
Total revenue and grant income | 3,073 | 6,016 | (2,943) | (49)% | ||||||
Operating Expenses | ||||||||||
Direct costs | 3,548 | 2,696 | 852 | 32% | ||||||
Research and development | 17,749 | 19,022 | (1,273) | (7)% | ||||||
Selling, general and administrative | 8,122 | 8,327 | (205) | (2)% | ||||||
Total operating expenses | 29,419 |
| 30,045 |
| (626) | (2)% | ||||
Operating Loss | (26,346) |
| (24,029) |
| (2,317) | 10% | ||||
Nonoperating Income and Expense | ||||||||||
Interest income | 4,012 | 3,599 | 413 | 11% | ||||||
Change in fair value of warrant liabilities | 9,642 | 5,879 | 3,763 | 64% | ||||||
Interest expense | (197) | (8) | (189) | 2363% | ||||||
Other income (expense) | 17 | (522) | 539 | (103)% | ||||||
Total nonoperating income and expense | 13,474 |
| 8,948 |
| 4,526 | 51% | ||||
Pretax Loss | $ | (12,872) | $ | (15,081) | $ | 2,209 | (15)% | |||
Income tax expense | 84 | — | 84 | 100% | ||||||
Share of net loss of equity method investee | 72 | 70 | 2 | 3% | ||||||
Net Loss Attributable to Common Stockholders | $ | (13,028) | $ | (15,151) | $ | 2,123 | (14)% | |||
Other Comprehensive Income (Loss) | (1,407) | 173 | (1,580) | (913)% | ||||||
Comprehensive Loss Attributable to Common Stockholders | $ | (14,435) | $ | (14,978) | $ | 543 | (4)% | |||
Revenue and Grant Income
Revenue recognized consists of performance on our non-government contracts as well as certain government contracts. Grant income recognized consisted of performance on our assistance agreement, dated January 1, 2025 (as amended effective May 15, 2025 and amended and restated effective January 1, 2026, the “Assistance Agreement”), with the U.S. Department of Energy (“DOE”).
We recognized $2.1 million of collaborative revenue for the three months ended March 31, 2026. The collaborative revenue mostly consisted of performance on our research and development technology license agreement (the “SK On R&D license”), line installation agreement, and electrolyte supply agreement with SK On (collectively, the “SK On Agreements”). During the three months ended March 31, 2026, we approached completion of site acceptance testing of the SK On line under the line installation agreement, which we completed in April 2026.
We recognized $1.0 million of government grant income for the three months ended March 31, 2026. Government grant income consists of grant income from the Assistance Agreement. The Assistance Agreement provides that the DOE will provide us with funding of up to $50 million for our installation of equipment necessary for the continuous production of sulfide-based solid electrolyte material. During the three months ended March 31, 2026, we began construction of the continuous electrolyte production pilot line.
Total revenue and grant income decreased $2.9 million for three months ended March 31, 2026 compared to the three months ended March 31, 2025 largely due to the timing and nature of milestone-based work under the SK On Agreements. For the remainder of 2026, we expect revenue recognition to continue to decrease relative to prior periods as we conduct validation activities under the SK On R&D license, construct the continuous electrolyte production pilot line, and provide electrolyte to our partners and customers.
Operating Expenses
22
Table of Contents
Operating expenses decreased $0.6 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to the reduction in materials purchased related to research and development.
Direct Costs
Direct costs, which include labor, subcontractor, and material costs incurred in support of revenue-generating projects, increased $0.9 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was mainly driven by the timing of milestone achievements under our collaborative agreements. In addition, the increase was due to increased costs associated with electrolyte product mix.
Research and Development
Research and development expenses consist of employee compensation and benefits for personnel engaged in research, engineering, manufacturing, chemistry, and technical operations. Research and development expenses also include costs related to our facilities and depreciation associated with plant and equipment used in our development activities.
Total research and development expenses decreased $1.3 million in the three months ended March 31, 2026 compared to the same period in 2025. The decrease was partially attributable to the timing of shipments and a reduction in depreciation expense during the current period. In addition, a higher proportion of material costs were allocated to revenue-generating projects rather than research activities.
Selling, General and Administrative
Selling, general and administrative expenses are largely comprised of employee compensation and personnel-related costs for our administrative functions as well as costs driven by insurance and regulatory requirements. Selling, general and administrative expenses did not change materially for the three ended March 31, 2026 compared to the same period in 2025.
Overall, we expect operating expenses for the remainder of the year to remain consistent as we focus on continuing to develop and drive improvements for our electrolyte products and pursue a potential partnership for commercial-scale electrolyte production in the Republic of Korea.
Nonoperating Income and Expense
Nonoperating income and expense includes interest income, the non-cash impact from the change in the fair value of our warrant liabilities, and other immaterial income and expense items.
For the three months ended March 31, 2026, nonoperating income and expense increased $4.5 million compared to the three months ended March 31, 2025 due to the change in fair value of warrant liabilities. The change in the fair value of warrant liabilities for the three months ended March 31, 2026 caused a $9.6 million gain compared to the three months ended March 31, 2025 where the change in the fair value caused a gain of $5.9 million. The impact of these changes caused a period-over-period loss in the fair value of warrant liabilities of $3.8 million.
Liquidity and Capital Resources
Sources of Liquidity
The sale of equity has historically been our primary source of cash, with a smaller portion of cash coming from achievement of performance milestones under agreements with our partners and government contracts. We also receive cash from the interest earned on our available-for-sale securities.
As of March 31, 2026 and December 31, 2025, we had total liquidity, as set forth below:
(in thousands) | | March 31, 2026 | December 31, 2025 | ||||
Cash and cash equivalents | $ | 31,509 | $ | 21,607 | |||
Available-for-sale securities |
| 403,763 |
| 314,843 | |||
Total liquidity | $ | 435,272 | $ | 336,450 | |||
23
Table of Contents
As of March 31, 2026, total liquidity, which includes all cash and cash equivalents as well as our available-for-sale securities, was $435.3 million, an increase of $98.8 million compared to December 31, 2025. As of March 31, 2026, contract assets and contract receivables were $12.7 million and total current liabilities were $17.1 million.
Short-Term Liquidity Requirements
Our short-term liquidity requirements include operating and capital expenses needed to further our research and development programs and to install our continuous electrolyte production pilot line. We anticipate that our most significant capital expenditures for the remainder of the year will relate to construction of our continuous electrolyte production pilot line as well as improvements to our cell development capabilities. We believe that our cash on hand is sufficient to meet our operating cash needs and working capital and capital expenditure requirements for a period of at least the next 12 months.
Long-Term Liquidity Requirements
Longer term, we may require additional liquidity prior to being able to generate adequate cash flows from electrolyte sales and/or licensing activities. We also may require funding if there are material changes to our business conditions or other developments, including changes to our operating plan; development progress or delays; negotiations with OEMs, cell manufacturers, or other customers; market adoption of EVs; supply chain challenges; competitive pressures; government regulations, including tariffs; and inflation. To the extent that our resources, including our ability to use the ATM to generate additional proceeds, are insufficient to satisfy our cash requirements, we may need to seek equity or debt financing. We also may opportunistically seek to enhance our liquidity through equity or debt financing, if such financing becomes available to us on terms that we consider favorable. If financing is not available, or if the terms of financing are less desirable than we expect, 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.
At-the-Market Offering
On September 5, 2025, we entered into an Equity Distribution Agreement (the “Distribution Agreement”) with Oppenheimer & Co. Inc., serving as agent (“Oppenheimer”), with respect to the ATM under which we may offer and sell, from time to time, shares of our common stock having an aggregate offering price of up to $150.0 million through Oppenheimer.
During the three months ended March 31, 2026, we did not sell any shares of common stock under the Distribution Agreement. As of March 31, 2026, approximately $58.8 million remained available for future sales under the Distribution Agreement.
Stock Repurchase Program
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. During the three months ended March 31, 2025, we did not repurchase any shares of common stock under the program. The stock repurchase program expired on December 31, 2025.
Registered Direct Offering
On January 28, 2026, we entered into a securities purchase agreement with a single sector-focused institutional investor for a registered direct offering of 17,000,000 shares of our common stock, pre-funded warrants to purchase an aggregate of 5,807,018 shares of common stock, and warrants to purchase up to an aggregate of 45,614,036 shares of common stock (the “registered direct offering”). Our proceeds, net of fees and expenses, totaled $121.3 million.
24
Table of Contents
Cash Flows
The following table summarizes our cash flows from operating, investing, and financing activities for the periods presented:
Three Months Ended March 31, | |||||||
(in thousands) | | 2026 | | 2025 | |||
Net cash and cash equivalents used in operating activities | $ | (18,753) | $ | (26,290) | |||
Net cash and cash equivalents (used in) provided by investing activities | $ | (92,288) | $ | 30,499 | |||
Net cash and cash equivalents provided by (used in) financing activities | $ | 120,943 | $ | (167) | |||
Cash used in operating activities:
Cash used in operating activities for the three months ended March 31, 2026 decreased by $7.5 million compared to the three months ended March 31, 2025. This decrease was driven by the timing of annual contract payments, which shifted from a beginning-of-year payment schedule to an end-of-year payment schedule.
The decrease was also attributable to cash used for employee compensation and related benefit costs, including the payment of annual performance-based incentive compensation. Cash used for employee compensation decreased by $1.6 million during the three months ended March 31, 2026 compared to the same period in the prior year.
Other cash used in operating activities during the three months ended March 31, 2026 related to facility operating costs, purchases of materials from suppliers, and hazardous waste removal. We expect cash used in operating activities for the remainder of the year to remain consistent on a quarterly basis as we continue to explore a production partnership in the Republic of Korea and focus on driving electrolyte product competitiveness.
Cash provided by (used in) investing activities:
Cash used in investing activities increased by $122.8 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due changes in our proceeds from and purchases of available-for-sale securities and changes in capital expenditures.
Purchases of available-for-sale security activity increased $143.4 million in the three months ending March 31, 2026 compared to the same period in prior year. This change was driven by deployment of $121.3 million of proceeds, net of fees and expenses, from the registered direct offering into our investment portfolio.
Cash used for capital expenditures and intangibles decreased $1.2 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to timing of milestone payments on our capital projects. We anticipate cash used in investing for capital expenditures for the remainder of the year to increase as we continue to construct the continuous electrolyte production pilot line.
Cash provided by (used in) financing activities:
Cash provided by financing activities increased $121.1 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due the proceeds of $121.3 million, net of fees and expenses, from the registered direct offering.
Off-Balance Sheet Arrangements
We are not a party to any off-balance sheet arrangements, as defined under SEC rules.
25
Table of Contents
Critical Accounting Estimates
Except as set forth below, there have been no significant and material changes in our critical accounting policies and use of estimates during the three months ended March 31, 2026 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 the 2025 Form 10-K.
Collaborative Revenue | ||
Description | Judgments and Uncertainties | Effect if Results Differ From Assumptions |
We recognize revenue from our research and development collaboration agreements representing joint operating activities in accordance with ASC 808 – Collaborative Arrangements. These agreements include the following components: parties to the contract are active participants, both parties are exposed to significant risks and rewards, and both parties are dependent on the commercial success of the efforts under the contract. | Our revenue recognition accounting methodology requires us to make significant estimates and assumptions, and to apply professional judgment. Our collaborative arrangements recognize revenue over time using the input measurement method utilizing the cost-to-cost method to satisfy the combined performance obligation. Contract costs include all direct labor, subcontract costs, costs for materials and indirect costs related to the contract performance that are allowable under the provisions of the contract. Collaborative revenues from fee-based contracts are recognized based on costs incurred to meet contractually defined milestones and deliverables along with our assessment of achievement of those measurable deliverables under the contract or based on appropriate over time methods. | If we were to change our judgments or estimates, it could cause a material increase or decrease in the amount of revenue or deferred revenue that we report in a particular period. |
Recent Accounting Pronouncements
See Note 2 of our unaudited financial statements included in this Report as well as Note 2 of our audited financial statements included in the 2025 Form 10-K for more information.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined in Rule 12b-2 under the Exchange Act. As a result, pursuant to Item 305(e) of Regulation S-K, we are not required to provide the information required by this Item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
In designing and evaluating our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired controls. As required by Rule 13a-15(b) under the Exchange Act, our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026.
26
Table of Contents
Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered by this Report, our disclosure controls and procedures were effective.
Changes in Internal Control Over Financial Reporting
There was no change in our internal control over financial reporting that occurred during the three months ended March 31, 2026 covered by this Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we have been, and may become, involved in litigation or other legal proceedings. See Note [14] of our unaudited financial statements included in this Report for more information. Regardless of outcome, litigation, including indemnity claims, can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.
Item 1A. Risk Factors
Our business, prospects, reputation, results of operations, and financial condition, as well as the price of our common stock and warrants, can be affected by a number of factors, whether currently known or unknown, including those described in “Part I, Item 1A. Risk Factors” of the 2025 Form 10-K, as such descriptions may be updated or amended in future filings we make with the SEC. When any one or more of these risks materialize from time to time, our business, reputation, results of operations, and financial condition, as well as the price of our common stock and warrants, can be materially and adversely affected. There have been no material changes to our risk factors since the 2025 Form 10-K.
27
Table of Contents
Item 6. Exhibits
Incorporated by Reference | ||||||||||
Exhibit Number |
| Description |
| Schedule Form |
| File Number |
| Exhibit/Annex |
| Filing Date |
3.1 | Second Amended and Restated Certificate of Incorporation | 8-K | 001-40284 | 3.1 | December 13, 2021 | |||||
3.2 | Amended and Restated Bylaws | 8-K | 001-40284 | 3.1 | November 21, 2022 | |||||
4.1 | Form of Common Warrant | 8-K | 001-40284 | 4.2 | January 29, 2026 | |||||
10.1 | Assistance Agreement, dated March 5, 2026, between Solid Power Operating, Inc. and the U.S. Department of Energy | 8-K | 001-40284 | 10.1 | March 6, 2026 | |||||
31.1* | Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 | |||||||||
31.2* | Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 | |||||||||
32.1** | Section 1350 Certification | |||||||||
32.2** | Section 1350 Certification | |||||||||
101.INS* | XBRL Instance Document – the instance document does not appear in the Interactive Data file because its Inline XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Document | |||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||||
* Filed herewith.
** Furnished herewith.
28
Table of Contents
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 6, 2026 | Solid Power, Inc. |
By: | /s/ John Van Scoter | |
Name: | John Van Scoter | |
Title: | President, Chief Executive Officer, and Director | |
(Principal Executive Officer) | ||
By: | /s/ Linda Heller | |
Name: | Linda Heller | |
Title: | Chief Financial Officer, Treasurer, and Secretary | |
(Principal Financial and Accounting Officer) | ||
29