false Q2 0001811414 --12-31 true true true P20D P30D P10Y P11Y3M18D P11Y1M6D P7Y7M6D P5Y9M7D P5Y9M10D P5Y18D P1Y7M17D P5Y2M1D P8Y25D P9Y2M4D P5Y9M10D 0.11 1.05 0.64 1.35 0001811414 2021-01-01 2021-06-30 xbrli:shares 0001811414 us-gaap:CommonClassAMember 2021-07-22 0001811414 us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:CommonClassBMember 2021-07-22 0001811414 qs:RedeemableWarrantsMember 2021-01-01 2021-06-30 iso4217:USD 0001811414 2021-06-30 0001811414 2020-12-31 0001811414 us-gaap:CorporateJointVentureMember 2021-06-30 0001811414 us-gaap:CorporateJointVentureMember 2020-12-31 iso4217:USD xbrli:shares 0001811414 us-gaap:CommonClassAMember 2021-06-30 0001811414 us-gaap:CommonClassAMember 2020-12-31 0001811414 us-gaap:CommonClassBMember 2021-06-30 0001811414 us-gaap:CommonClassBMember 2020-12-31 0001811414 2021-04-01 2021-06-30 0001811414 2020-04-01 2020-06-30 0001811414 2020-01-01 2020-06-30 0001811414 2021-03-31 0001811414 us-gaap:CommonStockMember 2021-03-31 0001811414 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001811414 us-gaap:RetainedEarningsMember 2021-03-31 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001811414 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001811414 us-gaap:CommonStockMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001811414 qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001811414 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001811414 us-gaap:CommonStockMember 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001811414 us-gaap:RetainedEarningsMember 2021-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001811414 us-gaap:CommonStockMember 2020-12-31 0001811414 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001811414 us-gaap:RetainedEarningsMember 2020-12-31 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001811414 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0001811414 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:CommonStockMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0001811414 2020-03-31 0001811414 us-gaap:CommonStockMember 2020-03-31 0001811414 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001811414 us-gaap:RetainedEarningsMember 2020-03-31 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001811414 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001811414 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001811414 2020-06-30 0001811414 us-gaap:CommonStockMember 2020-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001811414 us-gaap:RetainedEarningsMember 2020-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001811414 2019-12-31 0001811414 us-gaap:CommonStockMember 2019-12-31 0001811414 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001811414 us-gaap:RetainedEarningsMember 2019-12-31 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001811414 us-gaap:CommonStockMember 2020-01-01 2020-06-30 0001811414 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-06-30 0001811414 us-gaap:RetainedEarningsMember 2020-01-01 2020-06-30 0001811414 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-06-30 0001811414 us-gaap:CommonStockMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember 2021-04-01 2021-06-30 0001811414 us-gaap:CommonStockMember qs:LegacyQuantumScapeSeriesFPreferredStockPurchaseAgreementMember 2021-01-01 2021-06-30 qs:Agreement 0001811414 2018-09-30 xbrli:pure 0001811414 qs:JointVentureAgreementMember 2021-01-01 2021-06-30 0001811414 qs:JointVentureAgreementMember 2020-01-01 2020-12-31 0001811414 qs:JointVentureAgreementMember 2021-06-30 0001811414 qs:USGovernmentMoneyMarketFundAndMarketableSecuritiesMember 2021-06-30 0001811414 qs:USGovernmentMoneyMarketFundAndMarketableSecuritiesMember 2020-12-31 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-06-30 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2020-12-31 0001811414 qs:PledgedAsSecurityForFacilityLeaseAgreementMember 2021-06-30 0001811414 qs:CollateralForCommercialLetterOfCreditMember 2021-06-30 0001811414 qs:ComputersAndHardwareMember 2021-01-01 2021-06-30 0001811414 us-gaap:FurnitureAndFixturesMember 2021-01-01 2021-06-30 0001811414 us-gaap:EquipmentMember 2021-01-01 2021-06-30 0001811414 us-gaap:LeaseholdImprovementsMember 2021-01-01 2021-06-30 0001811414 qs:SeriesDConvertiblePreferredStockMember 2021-01-01 2021-06-30 0001811414 qs:SeriesDConvertiblePreferredStockMember 2021-04-01 2021-06-30 0001811414 qs:SeriesDConvertiblePreferredStockMember 2020-04-01 2020-06-30 0001811414 qs:SeriesDConvertiblePreferredStockMember 2020-01-01 2020-06-30 0001811414 qs:FreeStandingConvertiblePreferredStockWarrantsLiabilityMember 2021-06-30 0001811414 qs:PublicWarrantsMember 2021-01-01 2021-06-30 0001811414 qs:PrivatePlacementWarrantsMember 2021-01-01 2021-06-30 0001811414 qs:PublicWarrantsMember 2021-06-30 0001811414 qs:PrivatePlacementWarrantsMember 2021-06-30 0001811414 qs:PublicWarrantsMember 2020-12-31 0001811414 qs:PrivatePlacementWarrantsMember 2020-12-31 qs:Segment 0001811414 qs:TwoThousandTwentyEmployeeStockPurchasePlanMember us-gaap:CommonClassAMember srt:MaximumMember 2021-01-01 2021-06-30 0001811414 qs:TwoThousandTwentyEmployeeStockPurchasePlanMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 qs:TwoThousandTwentyEmployeeStockPurchasePlanMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001811414 qs:TwoThousandTwentyEmployeeStockPurchasePlanMember us-gaap:CommonClassAMember 2021-06-30 0001811414 us-gaap:AccountingStandardsUpdate201912Member 2021-06-30 0001811414 us-gaap:CommonClassAMember qs:LegacyQuantumScapeMember 2020-09-02 0001811414 qs:LegacyQuantumScapeMember 2020-09-02 2020-09-02 0001811414 us-gaap:CommonClassBMember qs:LegacyQuantumScapeMember 2020-09-02 0001811414 2020-11-25 0001811414 us-gaap:CommonClassAMember 2020-11-25 0001811414 us-gaap:CommonClassBMember 2020-11-25 qs:Vote 0001811414 us-gaap:CommonClassAMember 2020-11-25 2020-11-25 0001811414 us-gaap:CommonClassBMember 2020-11-25 2020-11-25 0001811414 us-gaap:CommonClassAMember qs:SubscriptionAgreementMember 2020-09-02 2020-09-02 0001811414 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-06-30 0001811414 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001811414 us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001811414 us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001811414 us-gaap:ConvertibleDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001811414 us-gaap:ConvertibleDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member qs:AssumedPublicCommonStockWarrantsMember 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember qs:AssumedPublicCommonStockWarrantsMember 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member qs:AssumedPrivatePlacementCommonStockWarrantsMember 2021-06-30 0001811414 us-gaap:FairValueMeasurementsRecurringMember qs:AssumedPrivatePlacementCommonStockWarrantsMember 2021-06-30 0001811414 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001811414 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001811414 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member qs:AssumedPublicCommonStockWarrantsMember 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember qs:AssumedPublicCommonStockWarrantsMember 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member qs:AssumedPrivatePlacementCommonStockWarrantsMember 2020-12-31 0001811414 us-gaap:FairValueMeasurementsRecurringMember qs:AssumedPrivatePlacementCommonStockWarrantsMember 2020-12-31 qs:Security 0001811414 2020-01-01 2020-12-31 0001811414 qs:TriplePointCapitalOneWarrantsMember qs:SeriesAConvertiblePreferredStockMember 2011-01-01 2013-12-31 0001811414 qs:TriplePointCapitalOneWarrantsMember qs:SeriesAConvertiblePreferredStockMember 2013-12-31 0001811414 qs:TriplePointCapitalOneWarrantsMember qs:SeriesCConvertiblePreferredStockMember 2015-01-01 2015-01-31 0001811414 qs:TriplePointCapitalOneWarrantsMember qs:SeriesCConvertiblePreferredStockMember 2015-01-31 0001811414 qs:TriplePointCapitalOneWarrantsMember qs:SeriesCConvertiblePreferredStockMember 2021-01-01 2021-06-30 0001811414 qs:TriplePointCapitalTwoWarrantsMember us-gaap:CommonClassAMember 2020-12-31 0001811414 us-gaap:ComputerEquipmentMember 2021-06-30 0001811414 us-gaap:ComputerEquipmentMember 2020-12-31 0001811414 us-gaap:FurnitureAndFixturesMember 2021-06-30 0001811414 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001811414 qs:LabEquipmentMember 2021-06-30 0001811414 qs:LabEquipmentMember 2020-12-31 0001811414 us-gaap:LeaseholdImprovementsMember 2021-06-30 0001811414 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001811414 us-gaap:ConstructionInProgressMember 2021-06-30 0001811414 us-gaap:ConstructionInProgressMember 2020-12-31 0001811414 2021-06-22 2021-06-22 0001811414 2021-06-22 utr:sqft 0001811414 2021-04-02 0001811414 2021-04-02 2021-04-02 qs:RenewalOption qs:Suit 0001811414 2021-02-01 2021-02-28 qs:Officer_Director 0001811414 2021-02-28 0001811414 us-gaap:IPOMember 2021-01-01 2021-06-30 0001811414 us-gaap:IPOMember 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsRedemptionJulyThirtyTwentyTwentyOneMember 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsRedemptionJulyThirtyTwentyTwentyOneMember 2021-01-01 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsMember 2021-01-01 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsMember 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsCommencingSeptemberTwentyEightTwentyTwentyOneMember srt:MinimumMember 2021-06-30 0001811414 qs:PrivatePlacementWarrantsAndWorkingCapitalWarrantsCommencingSeptemberTwentyEightTwentyTwentyOneMember 2021-01-01 2021-06-30 0001811414 qs:PublicWarrantsMember 2021-02-12 2021-02-12 0001811414 qs:PublicWarrantsMember 2021-02-13 2021-02-13 0001811414 qs:PublicWarrantsMember 2021-02-13 0001811414 qs:PublicWarrantsMember 2021-04-01 2021-06-30 0001811414 qs:PublicWarrantsMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001811414 qs:PublicWarrantsMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001811414 us-gaap:CommonClassAMember qs:MarchTwoThousandTwentyOnePublicOfferingMember 2021-03-31 0001811414 us-gaap:CommonClassAMember qs:MarchTwoThousandTwentyOnePublicOfferingMember 2021-03-01 2021-03-31 0001811414 us-gaap:SeriesFPreferredStockMember 2020-09-30 0001811414 us-gaap:SeriesFPreferredStockMember 2020-08-31 0001811414 us-gaap:SeriesFPreferredStockMember 2020-05-01 2020-09-30 0001811414 us-gaap:SeriesFPreferredStockMember 2020-08-01 2020-08-31 0001811414 qs:VGAMember us-gaap:CommonClassAMember 2020-12-01 0001811414 qs:VGAMember us-gaap:CommonClassAMember 2021-03-30 0001811414 qs:VGAMember us-gaap:CommonClassAMember 2020-12-01 2020-12-01 0001811414 qs:VGAMember us-gaap:CommonClassAMember 2021-03-30 2021-03-30 0001811414 us-gaap:CommonClassAMember 2021-04-27 2021-04-28 0001811414 us-gaap:CommonClassAMember 2021-04-28 0001811414 us-gaap:CommonClassAMember qs:TwoThousandTwentyEquityIncentiveAwardPlanMember 2021-06-30 0001811414 us-gaap:CommonClassAMember qs:TwoThousandTwentyEquityIncentiveAwardPlanMember srt:MaximumMember 2021-01-01 2021-06-30 0001811414 qs:TwoThousandTwentyEquityIncentiveAwardPlanMember srt:MinimumMember 2021-01-01 2021-06-30 0001811414 qs:TwoThousandTwentyEquityIncentiveAwardPlanMember 2021-01-01 2021-06-30 0001811414 qs:ExercisePriceRangeThreeMember 2021-06-30 0001811414 qs:ExercisePriceRangeFourMember 2021-06-30 0001811414 srt:MinimumMember qs:ExercisePriceRangeOneMember 2021-06-30 0001811414 srt:MinimumMember qs:ExercisePriceRangeTwoMember 2021-06-30 0001811414 srt:MaximumMember qs:ExercisePriceRangeOneMember 2021-06-30 0001811414 srt:MaximumMember qs:ExercisePriceRangeTwoMember 2021-06-30 0001811414 qs:ExercisePriceRangeOneMember 2021-06-30 0001811414 qs:ExercisePriceRangeTwoMember 2021-06-30 0001811414 qs:ExercisePriceRangeOneMember 2021-01-01 2021-06-30 0001811414 qs:ExercisePriceRangeTwoMember 2021-01-01 2021-06-30 0001811414 qs:ExercisePriceRangeThreeMember 2021-01-01 2021-06-30 0001811414 qs:ExercisePriceRangeFourMember 2021-01-01 2021-06-30 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2020-12-31 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2021-06-30 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2020-08-01 2020-08-31 0001811414 us-gaap:ResearchAndDevelopmentExpenseMember 2021-04-01 2021-06-30 0001811414 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0001811414 us-gaap:ResearchAndDevelopmentExpenseMember 2021-01-01 2021-06-30 0001811414 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-06-30 0001811414 us-gaap:GeneralAndAdministrativeExpenseMember 2021-04-01 2021-06-30 0001811414 us-gaap:GeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0001811414 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-06-30 0001811414 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-06-30 0001811414 qs:CommonClassAAndClassBSharesMember 2021-04-01 2021-06-30 0001811414 qs:CommonClassAAndClassBSharesMember 2020-04-01 2020-06-30 0001811414 qs:CommonClassAAndClassBSharesMember 2021-01-01 2021-06-30 0001811414 qs:CommonClassAAndClassBSharesMember 2020-01-01 2020-06-30 0001811414 us-gaap:WarrantMember 2020-01-01 2020-06-30 0001811414 us-gaap:EmployeeStockOptionMember 2021-01-01 2021-06-30 0001811414 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001811414 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001811414 us-gaap:CorporateJointVentureMember qs:SeriesFConvertiblePreferredStockMember 2020-05-14 2020-05-14 0001811414 qs:VolkswagenGroupOfAmericaIncorporationMember us-gaap:SeriesFPreferredStockMember 2020-09-01 2020-09-30 0001811414 us-gaap:SubsequentEventMember qs:PublicWarrantsMember 2021-07-23

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

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: 001-39345

 

 

QUANTUMSCAPE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

85-0796578

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

1730 Technology Drive

San Jose, CA

95110

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (408) 452-2000

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol (s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

QS

 

The New York Stock Exchange

Redeemable warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50

 

QS.WS

 

The New York Stock Exchange

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.     Yes  ☒    No  

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).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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

 

 

 

 

 

Non-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      No  

The number of shares of the registrant’s Class A Common Stock, par value $0.0001 per share outstanding was 305,040,491, and the number of shares of the registrant’s Class B Common Stock, par value $0.0001 per share outstanding was 109,606,774, as of July 22, 2021.

 

 

 

 


 

 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

2

 

Condensed Consolidated Balance Sheets

2

 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

3

 

Condensed Consolidated Statements of Redeemable Non-Controlling Interest and Stockholders’ Equity

4

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

6

Item 2.

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

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

50

Item 3.

Defaults Upon Senior Securities

50

Item 4.

Mine Safety Disclosures

50

Item 5.

Other Information

50

Item 6.

Exhibits

51

Signatures

52

 

 

 

 

i


 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The Company makes forward-looking statements in this Quarterly Report on Form 10-Q (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,” “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 all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company and incident to its business.

These forward-looking statements are based on information available as of the date of this Report, and current expectations, forecasts and assumptions, and involve a number of risks and uncertainties. Accordingly, forward-looking statements in this Report and in any document incorporated herein by reference should not be relied upon as representing the Company’s views as of any subsequent date, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

As a result of a number of known and unknown risks and uncertainties, the Company’s actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

 

any further changes to our financial statements or this Report that may be required due to SEC comments or further guidance regarding the accounting treatment of the Assumed Common Stock Warrants (as defined in Note 2 to the condensed consolidated financial statements in this Report);

 

the effectiveness of the Company’s disclosure controls and procedures and internal control over financial reporting;

 

the quantitative effects of the restatement of our previously issued consolidated financial statements as of and for the period ended December 31, 2020;

 

delays in or the inability to achieve our technology development objectives, including high volume production of battery cells at commercial size with acceptable quality, consistency, throughput and cost for successful commercialization of our technologies;

 

delays in implementing or the inability to successfully implement the manufacturing processes related automation and technologies necessary for development efforts, volume production and successful commercialization of our technologies;

 

the inability to establish supply relationships for necessary components or being required to pay higher than anticipated supply costs;

 

our relationship with Volkswagen, including the ability to commercialize solid-state batteries from our joint development relationship with Volkswagen and as a potential customer;

 

the failure of our batteries to perform as expected;

 

delays in starting up the expected operations of our current and planned facilities, including the addition of an approximately 197,000 square foot pre-pilot line facility in California (“QS-0”), a 1GWh pilot line (“QS-1”), and subsequently the expansion to the full 21GWh target (“QS-1 Expansion”);

 

the inability to attract customers during the development stage or for high volume commercial production;

 

the Company’s future financial and business performance, including financial projections and business metrics;

 

changes in the Company’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans;

 

the Company’s ability to scale in a cost-effective manner;

 

the Company’s ability to raise capital;

 

developments relating to the Company’s competitors and industry;

 

the outcome of any known and unknown litigation and regulatory proceedings; and

 

the impact of worldwide economic, political, industry, and market conditions, including the continued effects of the global COVID-19 pandemic.

Other risks and uncertainties set forth in this Report, including risk factors discussed in Item 1A under the heading, “Risk Factors.

1


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

QuantumScape Corporation

Condensed Consolidated Balance Sheets (Unaudited)

(In Thousands, Except per Share Amounts)

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents ($3,382 and $3,406 as of June 30, 2021 and

   December 31, 2020, respectively, for joint venture)

 

$

402,391

 

 

$

113,216

 

Marketable securities

 

 

1,165,139

 

 

 

884,336

 

Prepaid expenses and other current assets

 

 

10,622

 

 

 

11,616

 

Total current assets

 

 

1,578,152

 

 

 

1,009,168

 

Property and equipment, net

 

 

91,217

 

 

 

43,696

 

Right-of-use assets - finance lease

 

 

38,105

 

 

 

 

Right-of-use assets - operating lease

 

 

23,382

 

 

 

11,712

 

Other assets

 

 

12,219

 

 

 

2,193

 

Total assets

 

$

1,743,075

 

 

$

1,066,769

 

Liabilities, redeemable non-controlling interest and stockholders’ equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,135

 

 

$

5,383

 

Accrued liabilities

 

 

3,663

 

 

 

2,701

 

Accrued compensation

 

 

5,602

 

 

 

2,391

 

Operating lease liability, short-term

 

 

1,519

 

 

 

1,220

 

Strategic premium, short-term

 

 

352

 

 

 

655

 

Total current liabilities

 

 

25,271

 

 

 

12,350

 

Operating lease liability, long-term

 

 

22,516

 

 

 

11,244

 

Finance lease liability, long-term

 

 

38,708

 

 

 

 

Assumed common stock warrant liabilities

 

 

148,455

 

 

 

689,699

 

Total liabilities

 

 

234,950

 

 

 

713,293

 

Commitments and contingencies (see Note 8)

 

 

 

 

 

 

 

 

Redeemable non-controlling interest

 

 

1,694

 

 

 

1,704

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock- $0.0001 par value; 100,000 shares authorized, none

   issued and outstanding as of June 30, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock - $0.0001 par value; 1,250,000 shares authorized

   (1,000,000 Class A and 250,000 Class B); 304,933 Class A

   and 109,607 Class B shares issued and outstanding as of June 30, 2021,

   207,769 Class A and 156,225 Class B shares issued and

   outstanding as of December 31, 2020

 

 

41

 

 

 

36

 

Additional paid-in-capital

 

 

3,478,814

 

 

 

2,329,406

 

Accumulated other comprehensive loss

 

 

(694

)

 

 

(31

)

Accumulated deficit

 

 

(1,971,730

)

 

 

(1,977,639

)

Total stockholders’ equity

 

 

1,506,431

 

 

 

351,772

 

Total liabilities, redeemable non-controlling interest and stockholders’ equity

 

$

1,743,075

 

 

$

1,066,769

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2


 

QuantumScape Corporation

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

 

(In Thousands, Except per Share Amounts)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

35,776

 

 

$

12,049

 

 

$

65,241

 

 

$

25,396

 

General and administrative

 

 

13,846

 

 

 

2,178

 

 

 

29,056

 

 

 

4,747

 

Total operating expenses

 

 

49,622

 

 

 

14,227

 

 

 

94,297

 

 

 

30,143

 

Loss from operations

 

 

(49,622

)

 

 

(14,227

)

 

 

(94,297

)

 

 

(30,143

)

Other (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(238

)

 

 

 

 

 

(238

)

 

 

 

Interest income

 

 

349

 

 

 

281

 

 

 

596

 

 

 

819

 

Change in fair value of assumed common stock warrant liabilities

 

 

130,504

 

 

 

 

 

 

99,740

 

 

 

 

Other (expense) income

 

 

(5

)

 

 

 

 

 

98

 

 

 

 

Total other income

 

 

130,610

 

 

 

281

 

 

 

100,196

 

 

 

819

 

Net income (loss)

 

 

80,988

 

 

 

(13,946

)

 

 

5,899

 

 

 

(29,324

)

Less: Net loss attributable to non-controlling interest, net of tax of $0 for the three and six months ended June 30, 2021 and 2020

 

 

 

 

 

(1

)

 

 

(10

)

 

 

(5

)

Net income (loss) attributable to common stockholders

 

$

80,988

 

 

$

(13,945

)

 

$

5,909

 

 

$

(29,319

)

Net income (loss)

 

$

80,988

 

 

$

(13,946

)

 

$

5,899

 

 

$

(29,324

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities

 

 

(837

)

 

 

(258

)

 

 

(663

)

 

 

57

 

Total comprehensive income (loss)

 

 

80,151

 

 

 

(14,204

)

 

 

5,236

 

 

 

(29,267

)

Less: Comprehensive loss attributable to non-controlling

   interest

 

 

 

 

 

(1

)

 

 

(10

)

 

 

(5

)

Comprehensive income (loss) attributable to common stockholders

 

$

80,151

 

 

$

(14,203

)

 

$

5,246

 

 

$

(29,262

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share of common stock attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.20

 

 

$

(0.06

)

 

$

0.02

 

 

$

(0.12

)

Diluted

 

$

(0.12

)

 

$

(0.06

)

 

$

(0.24

)

 

$

(0.12

)

Weighted-average shares used in computing net income (loss) per share of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

404,957

 

 

 

239,798

 

 

 

386,970

 

 

 

239,795

 

Diluted

 

 

410,372

 

 

 

239,798

 

 

 

396,059

 

 

 

239,795

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3


 

QuantumScape Corporation

Condensed Consolidated Statements of Redeemable Non-Controlling Interest and Stockholders’ Equity (Unaudited)

(In Thousands, Except Share and per Share Amounts)

 

 

Redeemable

Non-

Controlling

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

Three Months Ended June 30, 2021

Interest

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balance as of March 31, 2021

$

1,694

 

 

 

 

389,772,337

 

 

$

39

 

 

$

3,346,442

 

 

$

(2,052,718

)

 

$

143

 

 

$

1,293,906

 

Exercise of stock option

 

 

 

 

 

7,644,503

 

 

 

 

 

 

8,572

 

 

 

 

 

 

 

 

 

8,572

 

Shares issued upon vesting of restricted stock units

 

 

 

 

 

1,561,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of warrants

 

 

 

 

 

340,480

 

 

 

 

 

 

12,265

 

 

 

 

 

 

 

 

 

12,265

 

Issuance of Class A Common Stock pursuant to Legacy QuantumScape Series F Preferred Stock Purchase Agreement, net of issuance costs of $0.1 million

 

 

 

 

 

15,221,334

 

 

 

2

 

 

 

99,928

 

 

 

 

 

 

 

 

 

99,930

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

11,607

 

 

 

 

 

 

 

 

 

11,607

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

80,988

 

 

 

 

 

 

80,988

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(837

)

 

 

(837

)

Balance as of June 30, 2021

$

1,694

 

 

 

 

414,539,835

 

 

$

41

 

 

$

3,478,814

 

 

$

(1,971,730

)

 

$

(694

)

 

$

1,506,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Non-

Controlling

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

Six Months Ended June 30, 2021

Interest

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balance as of December 31, 2020

$

1,704

 

 

 

 

363,993,705

 

 

$

36

 

 

$

2,329,406

 

 

$

(1,977,639

)

 

$

(31

)

 

$

351,772

 

Exercise of stock option

 

 

 

 

 

10,529,052

 

 

 

1

 

 

 

9,451

 

 

 

 

 

 

 

 

 

9,452

 

Shares issued upon vesting of restricted stock units

 

 

 

 

 

3,005,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of warrants

 

 

 

 

 

9,830,244

 

 

 

1

 

 

 

553,821

 

 

 

 

 

 

 

 

 

553,822

 

Issuance of Class A Common Stock, net of issuance costs of $15.5 million

 

 

 

 

 

11,960,000

 

 

 

1

 

 

 

462,925

 

 

 

 

 

 

 

 

 

462,926

 

Issuance of Class A Common Stock pursuant to Legacy QuantumScape Series F Preferred Stock Purchase Agreement, net of issuance costs of $0.1 million

 

 

 

 

 

15,221,334

 

 

 

2

 

 

 

99,928

 

 

 

 

 

 

 

 

 

99,930

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

23,283

 

 

 

 

 

 

 

 

 

23,283

 

Net income (loss)

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

5,909

 

 

 

 

 

 

5,909

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(663

)

 

 

(663

)

Balance as of June 30, 2021

$

1,694

 

 

 

 

414,539,835

 

 

$

41

 

 

$

3,478,814

 

 

$

(1,971,730

)

 

$

(694

)

 

$

1,506,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Non-

Controlling

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

Three Months Ended June 30, 2020

Interest

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balance as of March 31, 2020

$

1,706

 

 

 

 

239,797,166

 

 

$

24

 

 

$

446,650

 

 

$

(311,236

)

 

$

405

 

 

$

135,843

 

Exercise of stock option

 

 

 

 

 

1,608

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

2,185

 

 

 

 

 

 

 

 

 

2,185

 

Net loss

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

(13,945

)

 

 

 

 

 

(13,945

)

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(258

)

 

 

(258

)

Balance as of June 30, 2020

$

1,705

 

 

 

 

239,798,774

 

 

$

24

 

 

$

448,836

 

 

$

(325,181

)

 

$

147

 

 

$

123,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

Non-

Controlling

 

 

 

Common Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

Six Months Ended June 30, 2020

Interest

 

 

 

Shares