SESHIGH SIGNALRISK10-K

SES has dramatically shifted its business focus from lithium-metal battery development for electric vehicles to drone cell manufacturing and energy operations through acquisitions, while burning through most of its cash reserves.

This represents a fundamental pivot away from EV battery technology toward defense-related drone manufacturing and energy services, suggesting the original lithium-metal battery strategy may have encountered insurmountable technical or commercial obstacles. The company now faces entirely new execution risks around NDAA compliance, integration challenges with UZ Energy, and uncertain market demand for drone cells, while operating with severely constrained liquidity.

Comparing 2026-03-04 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

SES burned through roughly three-quarters of its cash position, dropping from $128.8M to $29.5M, creating a significant liquidity constraint. Operating performance showed modest improvement with reduced losses and lower capital expenditures, but stockholders' equity declined by nearly a quarter to $214.8M. The dramatic reduction in capital spending from $12.2M to $2.9M likely reflects the strategic pivot away from battery manufacturing infrastructure toward the new business focus areas.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-77.1%
$128.8M→$29.5M

Cash declined 77.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Capital Expenditure
Cash Flow
-76.6%
$12.2M→$2.9M

Capex reduced 76.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Net Income
P&L
+27.1%
-$100.2M→-$73.0M

Net income grew 27.1% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+24.4%
-$109.2M→-$82.6M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Stockholders Equity
Balance Sheet
-22.8%
$278.3M→$214.8M

Equity decreased 22.8% — buybacks or losses reducing book value, monitor solvency ratios.

Current Assets
Balance Sheet
-21.9%
$276.9M→$216.3M

Current assets declined 21.9% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-17.3%
$329.8M→$272.6M

Total assets contracted 17.3% — asset sales, write-downs, or balance sheet optimization underway.

Total Liabilities
Balance Sheet
+12.5%
$51.5M→$57.9M

Liabilities increased 12.5% — monitor debt-to-equity ratio and interest coverage.

Operating Cash Flow
Cash Flow
+11.7%
-$66.1M→-$58.4M

Operating cash flow grew 11.7% — strong conversion of earnings to cash, healthy business fundamentals.

LANGUAGE CHANGES
NEW — 2026-03-04
PRIOR — 2025-02-28
ADDED
As of March 2, 2026, there were 322,742,539 shares of the registrant s Class A common stock and 43,881,251 shares of the registrant s Class B common stock outstanding.
Some factors that could cause actual results to differ include, but are not limited to the risks below, which also serves as a summary of the principal risks of an investment in our securities: We expect to continue to incur losses for the foreseeable future.
We may not be able to successfully integrate UZ Energy s operations with our business.
We may face challenges in developing National Defense Authorization Act ( NDAA )-compliant manufacturing capacity for drone cells, and even if we develop the manufacturing capacity, demand for NDAA-compliant drone cells may not develop.
We may not be able to develop and commercialize newly discovered materials.
The use of artificial intelligence in our products and services may result in reputational harm and competitive harm.
The market for our AI-based services such as Molecular Universe is still emerging and our AI programs may not achieve the growth potential we expect .
The economic benefit of our ESS products to our customers depends on the cost of electricity available from alternative sources, including local electric utility companies, which cost structure is subject to change.
Our ESS products performance may not meet customers expectations or needs.
We depend upon component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S.
REMOVED
As of February 25, 2025, there were 320,778,608 shares of the registrant s Class A common stock and 43,881,251 shares of the registrant s Class B common stock outstanding.
Some factors that could cause actual results to differ include, but are not limited to the risks below, which also serves as a summary of the principal risks of an investment in our securities: We face significant challenges in developing a Lithium-Metal ( Li-Metal ) battery that can be commercialized for use in electric vehicles ( EVs ) and other applications, and the pace of development is often unpredictable and subject to delays.
We expect to continue to incur losses for the foreseeable future.
Our Li-Metal technology is untested in actual EVs and may ultimately prove unworkable.
We are unable to predict user behavior when driving EVs with Li-Metal technology.
Delays in the pre-manufacturing development of our battery cells could adversely affect our business and prospects.
If we are unable to integrate our products into EVs manufactured by OEM customers, our results of operations could be impaired.
The market for our AI-based services is still emerging and our AI programs may not achieve the growth potential we expect .
Our failure to satisfy certain New York Stock Exchange ( NYSE ) listing requirements may result in our Class A common stock being delisted from the NYSE, which could eliminate or adversely affect the trading market for our Class A common stock.
Our differentiated battery technology has been designed to combine the high energy density of Li-Metal and Li-ion with the large-scale manufacturability of conventional Li-ion batteries in order to help promote the transition from the global dependence on fossil fuel-based vehicles to clean and efficient EVs, with the goal of enabling a new era of electric transportation on land and in the air.
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