Amprius Technologies, Inc. 10-K

Item 9A. Controls and Procedures Evaluation of disclosure controls and procedures Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this Annual Report on Form 10-K. Our disclosure controls and procedures are designed to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were not effective because of the material weaknesses in internal controls over financial reporting identified during the year ended December 31, 2021 that have not been remediated as of December 31, 2022. Based on additional procedures and post-closing review, management concluded that the financial statements included in this Annual Report on Form 10-K present fairly, in all material respects, our consolidated financial position, consolidated results of operations, and consolidated cash flows for the periods presented, in conformity with accounting principles generally accepted in the United States. Remediation plan for material weaknesses Our management identified material weaknesses in our internal controls over financial reporting during the years ended December 31, 2022 and 2021. Those material weaknesses pertained to (i) inadequate design and maintenance of effective internal controls over our financial reporting and close process, which specifically relate to the inadequate controls on our review, analysis and approval of journal entries, and review of monthly financial statements; and (ii) lack of segregation of duties. Our management performed the following remediation efforts, which are in progress as of December 31, 2022: • increased the size of our accounting team by hiring permanent employees for key roles to allow for improved segregation of duties; • enhanced and improved our monthly close process, including establishing a close schedule and close checklists, implementing review and reconciliation processes including performing detailed review and validation of journal entries, and implementing software to assist with financial reporting; and • engaged an external specialist to assist in performing a risk assessment to identify key areas for improvement in accounting and financial reporting. Our management believes that the remediation efforts described above will enable us to address the material weaknesses that were identified in a timely manner, maintain a properly designed and effective system of internal controls over financial reporting, and provide appropriate segregation of duties. Our remediation efforts are in progress as of December 31, 2022. We will not be able to demonstrate that the material weaknesses have been fully remediated, or that our controls are operating effectively, until we complete our remediation efforts. We will continue to evaluate the effectiveness of our internal control over financial reporting and will continue to make changes that we believe will strengthen our internal control over financial reporting to ensure that our financial statements continue to be fairly stated in all material respects. Management’s report on internal control over financial reporting As discussed elsewhere in this Annual Report on Form 10-K, we completed the Business Combination on September 14, 2022 pursuant to which we acquired Legacy Amprius. Prior to the Business Combination, we were a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, and were not required to maintain an effective system of internal controls. As a result, previously existing internal controls are no longer applicable or comprehensive enough as of the assessment date as our operations prior to the Business Combination were insignificant compared to those of the consolidated entity post-Business Combination. The design of internal control over financial reporting for the 85 Table of Contents Index to Consolidated Financial Statements Company post-Business Combination has required and will continue to require significant time and resources from management and other personnel. As a result, management was unable, without incurring unreasonable effort or expense, to conduct an assessment of our internal control over financial reporting as of December 31, 2022. Accordingly, we are excluding management's report on internal control over financial reporting pursuant to Section 215.02 of the SEC Division of Corporation Finance's Regulation S-K Compliance & Disclosure Interpretations. Changes in internal control over financial reporting Except for the activities taken related to the ongoing remediation of the material weaknesses described above, there were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Inherent limitation on the effectiveness of internal control Our management, including our Chief Executive Officer and our Chief Financial Officer, do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Due to inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Item 9B. Other Information None. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections None. 86 Table of Contents Index to Consolidated Financial Statements Part III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2022. Item 11. Executive Compensation The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2022. Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2022. Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2022. Item 14. Principal Accountant Fees and Services The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2023 Annual Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2022. 87 Table of Contents Index to Consolidated Financial Statements Part IV Item 15. Exhibit and Financial Statement Schedules (a) We have filed the following documents as part of this Annual Report on Form 10-K: 1. Financial Statements See Index to Consolidated Financial Statements under Part II, Item 8 of this Annual Report on Form 10-K. 2. Financial Statement Schedules All financial statement schedules have been omitted as the information is not required under the related instructions or is not applicable or because the information required is already included in the financial statements or the notes to those financial statements. 3. Exhibits The exhibits listed below are filed as part of this Annual Report on Form 10-K or are incorporated herein by reference, in each case as indicated below: Incorporated by Reference Exhibit Number Description Form File No. Exhibit Number Filing Date Filed Herewith 2.1† Business Combination Agreement, dated as of May 11, 2022, by and among Kensington Capital Acquisition Corp. IV, Kensington Capital Merger Sub Corp. and Amprius Technologies, Inc. Form 8-K File No. 001-41314 2.1 May 12, 2022 3.1 Certificate of Incorporation of Amprius Technologies, Inc. Form 8-K File No. 001-41314 3.1 September 16, 2022 3.2 Amended and Restated Bylaws of Amprius Technologies, Inc. Form 8-K File No. 001-41314 3.1 March 23, 2023 4.1 Specimen Common Stock Certificate Form 8-K File No. 001-41314 4.1 September 16, 2022 4.2 Warrant Agreement, dated as of September 14, 2022, between the Company and Continental Stock Transfer & Trust Company, as warrant agent Form 8-K File No. 001-41314 4.2 September 16, 2022 4.3 Form of Warrant Certificate (included in Exhibit 4.2) Form 8-K File No. 001-41314 4.2 September 16, 2022 4.4 Warrant Agreement, dated as of March 1, 2022, between the Company and Continental Stock Transfer & Trust Company Form 8-K File No. 001-41314 4.1 March 4, 2022 4.5 Form of Warrant Certificate (included in Exhibit 4.4) Form 8-K File No. 001-41314 4.1 March 4, 2022 4.6 Description of Capital Stock X 10.1 Registration Rights Agreement, dated as of September 14, 2022, by and among the Company and the persons named therein Form 8-K File No. 001-41314 10.1 September 16, 2022 10.2 Form of Indemnification Agreement by and between the Company and its directors and officers Form S-4/A File No. 333-265740 10.12 August 9, 2022 10.3# Confirmatory Employment Letter with Dr. Kang Sun Form 8-K File No. 001-41314 10.3 September 16, 2022 10.4# Confirmatory Employment Letter with Sandra Wallach Form 8-K File No. 001-41314 10.4 September 16, 2022 10.5# Amended and Restated Confirmatory Employment Letter with Jonathan Bornstein Form S-1 File No. 333-267683 10.10 September 30, 2022 10.6# Amended and Restated Confirmatory Employment Letter with Dr. Constantin Ionel Stefan Form S-1 File No. 333-267683 10.11 September 30, 2022 10.7# Amprius Technologies, Inc. 2022 Equity Incentive Plan and forms of agreements thereunder Form 8-K File No. 001-41314 10.7 September 16, 2022 10.8# Amprius Technologies, Inc. 2022 Employee Stock Purchase Plan 424B3 File No. 333-265740 Annex E September 1, 2022 10.9# Amprius Technologies, Inc. Outside Director Compensation Policy Form 8-K File No. 001-41314 10.9 September 16, 2022 88 Table of Contents Index to Consolidated Financial Statements 10.10# Amprius Technologies, Inc. Executive Incentive Compensation Plan Form 8-K File No. 001-41314 10.10 September 16, 2022 10.11# Amprius Technologies, Inc. 2016 Equity Incentive Plan and forms of agreements thereunder Form 8-K File No. 001-41314 10.11 September 16, 2022 10.12 Registration Rights Agreement, dated September 27, 2022, by and between the Company and BRPC II Form 8-K File No. 001-41314 10.2 September 27, 2022 10.13† Common Stock Purchase Agreement, dated September 27, 2022, by and between the Company and BRPC II Form 8-K File No. 001-41314 10.1 September 27, 2022 10.14† Lease, dated January 30, 2019, by and between Los Altos Fields, LLC and Amprius, Inc. Form 8-K File No. 001-41314 10.12 September 16, 2022 10.15 Assignment of Lease, dated May 1, 2022, by and between Amprius, Inc. and Amprius Technologies, Inc. Form 8-K File No. 001-41314 10.14 September 16, 2022 10.16 First Amendment to Lease Agreement, dated January 4, 2023, between the Company and Los Altos Fields, LLC X 10.17 Form of PIPE Subscription Agreement Form 8-K File No. 001-41314 10.1 September 7, 2022 16.1 Letter from Marcum LLP to the Securities and Exchange Commission, dated September 16, 2022 Form 8-K File No. 001-41314 16.1 September 16, 2022 16.2 Letter from SingerLewak LLP to the Securities and Exchange Commission, dated September 16, 2022 Form 8-K File No. 001-41314 16.2 September 16, 2022 21.1 List of Subsidiaries X 23.1 Consent of BDO USA, LLP X 23.2 Consent of SingerLewak LLP X 31.1 Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 31.2 Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 32.1* Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 32.2* Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 101.INS Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. X 101.SCH Inline XBRL Taxonomy Extension Schema Document X 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document X 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document X 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document X 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document X 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) X * These certifications furnished in Exhibit 32.1 and 32.2 hereto are deemed to accompany this Annual Report on Form 10-K and are not deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act of the Exchange Act. † Certain schedules and exhibits have been omitted in accordance with Regulation S-K Item 601(a)(5). A copy of any omitted schedule or exhibit will be finished to the SEC upon request. # Indicates management contract or compensatory plan. Item 16. Form 10-K Summary None. 89 Table of Contents Index to Consolidated Financial Statements SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized. AMPRIUS TECHNOLOGIES, INC. Date: March 30, 2023 By: /s/ Dr. Kang Sun Name: Dr. Kang Sun Title: Chief Executive Officer POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Dr. Kang Sun and Sandra Wallach, and each of them, as his or her true and lawful attorney-in-fact and agent with full power of substitution, for him or her in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K,and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact, proxy and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, proxy and agent, or his or her substitute, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Signature Title Date /s/ Dr. Kang Sun Chief Executive Officer and Director March 30, 2023 Dr. Kang Sun (Principal Executive Officer) /s/ Sandra Wallach Chief Financial Officer March 30, 2023 Sandra Wallach (Principal Financial and Accounting Officer) /s/ Donald R. Dixon Director March 30, 2023 Donald R. Dixon /s/ Dr. Steven Chu Director March 30, 2023 Dr. Steven Chu /s/ Dr. Wen Hsieh Director March 30, 2023 Dr. Wen Hsieh /s/ Justin Mirro Director March 30, 2023 Justin Mirro 90