Solid Power, Inc. 10-K

Item 8. Financial Statements and Supplementary Data Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 42 Consolidated Balance Sheets 44 Consolidated Statements of Operations and Comprehensive Loss 45 Consolidated Statements of Stockholders’ Equity 46 Consolidated Statements of Cash Flows 47 Notes to Consolidated Financial Statements 48 ​ ​ ​ Solid Power, Inc. | 2024 Form 10-K | 41 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Solid Power, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Solid Power, Inc. (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive loss, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. ​ Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. ​ Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. ​ Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. ​ Solid Power, Inc. | 2024 Form 10-K | 42 Table of Contents Revenue recognition based on the percentage of completion method ​ ’s assumptions, especially the guideline public companies used to determine the volatility assumption. ​ Description of the Matter As described in Note 2 and Note 15 to the consolidated financial statements, revenues from collaboration arrangements are recognized over time utilizing incurred labor hours in relation to total labor hours anticipated to satisfy the combined performance obligation, and revenues from a new collaboration arrangement totaled $11.8 million for the year ended December 31, 2024. Due to the long-term nature of contracts, developing the total anticipated labor hours requires judgment. Factors that impact the total anticipated labor hours include the length of time required to complete the performance obligation, the achievement of milestones, and employee and subcontractor performance. Auditing management’s estimate for the total anticipated labor hours was challenging and complex due to the judgment involved in evaluating management’s assumptions over the total labor hours anticipated to satisfy the combined performance obligation. How We Addressed the Matter in Our Audit To test the total anticipated labor hours, we performed audit procedures that included, among others, reading the contract to confirm our understanding of the Company’s obligations and evaluating the significant data and assumptions used by management to determine the total anticipated labor hours. We inquired of both finance and operations personnel to understand the progress of the contract and the assumptions used to develop the estimate. We compared actual hours incurred to estimated hours to assess the historical accuracy of management’s estimate, we compared anticipated hours to hours incurred to date for similar activities to assess those estimates, and we verified achievement of key project milestones. ​ /s/ Ernst & Young LLP We have served as the Company’s auditor since 2021. Denver, Colorado February 28, 2025 ​ ​ ​ Solid Power, Inc. | 2024 Form 10-K | 43 Table of Contents ​ Solid Power, Inc. (in thousands, except par value and number of shares) Consolidated Balance Sheets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Assets ​ ​ ​ ​ ​ ​ Current Assets ​ ​ ​ Cash and cash equivalents ​ $ 25,413 ​ $ 34,537 Marketable securities ​ ​ 92,784 ​ ​ 141,505 Contract receivables ​ 1,393 ​ 1,553 Prepaid expenses and other current assets ​ 5,646 ​ 5,523 Total current assets ​ 125,236 ​ 183,118 Long-Term Assets ​ ​ ​ ​ ​ ​ Property, plant and equipment, net ​ 97,208 ​ 99,156 Right-of-use operating lease assets, net ​ ​ 7,490 ​ ​ 7,154 Right-of-use finance lease assets, net ​ ​ 856 ​ ​ 1,088 Investments ​ ​ 210,400 ​ ​ 239,566 Intangible assets, net ​ 2,072 ​ 1,650 Other assets ​ ​ 721 ​ ​ 1,060 Loan receivable from equity method investee ​ ​ 4,267 ​ ​ — Total long-term assets ​ ​ 323,014 ​ ​ 349,674 Total assets ​ $ 448,250 ​ $ 532,792 Liabilities, Mezzanine Equity and Stockholders’ Equity ​ ​ ​ Current Liabilities ​ ​ ​ Accounts payable and other accrued liabilities ​ $ 8,124 ​ $ 6,455 Deferred revenue ​ 3,150 ​ ​ 1 Deferred revenue from related parties ​ — ​ ​ 828 Accrued compensation ​ 7,578 ​ 7,590 Operating lease liabilities ​ ​ 833 ​ ​ 626 Finance lease liabilities ​ ​ 285 ​ ​ 379 Total current liabilities ​ 19,970 ​ 15,879 Long-Term Liabilities ​ ​ ​ ​ ​ ​ Warrant liabilities ​ ​ 8,735 ​ ​ 4,227 Operating lease liabilities ​ ​ 8,023 ​ ​ 7,996 Finance lease liabilities ​ 266 ​ 552 Other liabilities ​ ​ 942 ​ ​ 803 Total long-term liabilities ​ ​ 17,966 ​ ​ 13,578 Total liabilities ​ ​ 37,936 ​ ​ 29,457 Mezzanine Equity ​ ​ ​ ​ ​ ​ Mezzanine equity ​ ​ 34 ​ ​ — Stockholders’ Equity ​ ​ Common stock, $ 0.0001 par value; 2,000,000,000 shares authorized; 180,364,028 and 179,010,884 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively ​ 18 ​ 18 Additional paid-in capital ​ 591,394 ​ ​ 588,515 Accumulated deficit ​ ( 181,171 ) ​ ( 84,639 ) Accumulated other comprehensive income (loss) (AOCI) ​ ​ 39 ​ ​ ( 559 ) Total stockholders’ equity ​ 410,280 ​ 503,335 Total liabilities, mezzanine equity and stockholders’ equity ​ $ 448,250 ​ $ 532,792 ​ See accompanying Notes to Consolidated Financial Statements. ​ Solid Power, Inc. | 2024 Form 10-K | 44 Table of Contents Solid Power, Inc. (in thousands, except number of shares and per share amounts) Consolidated Statements of Operations and Comprehensive Loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Revenue ​ $ 20,139 ​ $ 17,410 ​ Operating Expenses ​ ​ ​ ​ ​ ​ Direct costs ​ ​ 20,284 ​ ​ 27,731 ​ Research and development ​ ​ 73,341 ​ 54,749 ​ Selling, general and administrative ​ ​ 31,847 ​ 25,550 ​ Total operating expenses ​ ​ 125,472 ​ 108,030 ​ Operating Loss ​ ​ ( 105,333 ) ​ ( 90,620 ) ​ Nonoperating Income and Expense ​ ​ ​ ​ ​ ​ Interest income ​ ​ 17,671 ​ ​ 20,265 ​ Change in fair value of warrant liabilities ​ ​ ( 4,508 ) ​ ​ 4,890 ​ Interest expense ​ ​ ( 46 ) ​ ( 84 ) ​ Other expense ​ ​ ( 2,977 ) ​ ​ — ​ Total nonoperating income and expense ​ ​ 10,140 ​ 25,071 ​ Pretax Loss ​ ​ ( 95,193 ) ​ ( 65,549 ) ​ Income tax expense ​ ​ 1,194 ​ — ​ Share of net loss of equity method investee ​ ​ 133 ​ ​ — ​ Net Loss Attributable to Common Stockholders ​ $ ( 96,520 ) ​ $ ( 65,549 ) ​ Other Comprehensive Income ​ ​ 598 ​ ​ 2,600 ​ Comprehensive Loss Attributable to Common Stockholders ​ $ ( 95,922 ) ​ $ ( 62,949 ) ​ Basic and diluted loss per share ​ $ ( 0.54 ) ​ $ ( 0.37 ) ​ Weighted average shares outstanding – basic and diluted ​ ​ 179,397,332 ​ 178,006,919 ​ ​ ​ ​ ​ ​ ​ ​ ​ See accompanying Notes to Consolidated Financial Statements. ​ ​ Solid Power, Inc. | 2024 Form 10-K | 45 Table of Contents Solid Power, Inc. (in thousands, except number of shares) Consolidated Statements of Stockholders’ Equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Accumulated ​ Accumulated ​ Total Stockholders’ ​ Shares Amount paid-in capital deficit OCI Equity Balance as of December 31, 2022 ​ ​ 176,007,184 ​ $ 18 ​ $ 577,603 ​ $ ( 19,090 ) ​ $ ( 3,159 ) ​ $ 555,372 Net loss ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 65,549 ) ​ ​ — ​ ​ ( 65,549 ) Withholding of employee taxes related to stock-based compensation ​ ​ — ​ ​ — ​ ​ ( 112 ) ​ ​ — ​ ​ — ​ ​ ( 112 ) Shares of common stock issued under the ESPP ​ ​ 287,224 ​ ​ — ​ ​ 434 ​ ​ — ​ ​ — ​ ​ 434 Shares of common stock issued for vested RSUs ​ ​ 226,201 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Stock options exercised ​ ​ 2,490,275 ​ ​ — ​ ​ 220 ​ ​ — ​ ​ — ​ ​ 220 Unrealized gain on available-for-sale securities ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,600 ​ ​ 2,600 Stock-based compensation expense ​ ​ — ​ ​ — ​ ​ 10,370 ​ ​ — ​ ​ — ​ ​ 10,370 Balance as of December 31, 2023 ​ ​ 179,010,884 ​ $ 18 ​ $ 588,515 ​ $ ( 84,639 ) ​ $ ( 559 ) ​ $ 503,335 Net loss ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 96,520 ) ​ ​ — ​ ​ ( 96,520 ) Withholding of employee taxes related to stock-based compensation ​ ​ — ​ ​ — ​ ​ ( 615 ) ​ ​ — ​ ​ — ​ ​ ( 615 ) Shares of common stock issued under the ESPP ​ ​ 387,664 ​ ​ — ​ ​ 412 ​ ​ — ​ ​ — ​ ​ 412 Shares of common stock issued for vested RSUs ​ ​ 1,229,645 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Shares of common stock issued to non-employees ​ ​ 298,508 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Stock options exercised ​ ​ 5,141,728 ​ ​ 1 ​ ​ 272 ​ ​ — ​ ​ — ​ ​ 273 Repurchase and retirement of shares of common stock ​ ​ ( 5,704,401 ) ​ ​ ( 1 ) ​ ​ ( 9,162 ) ​ ​ — ​ ​ — ​ ​ ( 9,163 ) Remeasurement of mezzanine equity ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 12 ) ​ ​ — ​ ​ ( 12 ) Unrealized gain on available-for-sale securities ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 598 ​ ​ 598 Stock-based compensation expense ​ ​ — ​ ​ — ​ ​ 11,972 ​ ​ — ​ ​ — ​ ​ 11,972 Balance as of December 31, 2024 ​ ​ 180,364,028 ​ $ 18 ​ $ 591,394 ​ $ ( 181,171 ) ​ $ 39 ​ $ 410,280 ​ See accompanying Notes to Consolidated Financial Statements. ​ ​ Solid Power, Inc. | 2024 Form 10-K | 46 Table of Contents Solid Power, Inc. (in thousands, except par value, share amounts, and per share amounts) Consolidated Statements of Cash Flows ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Cash Flows from Operating Activities ​ ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 96,520 ) ​ $ ( 65,549 ) ​ Adjustments to reconcile net loss to net cash and cash equivalents from operating activities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ ​ 16,464 ​ 11,962 ​ Amortization of right-of-use assets ​ ​ 900 ​ ​ 768 ​ Loss on sales of property, plant, and equipment ​ ​ 1,957 ​ — ​ Loss on extinguishment of note receivable ​ ​ 760 ​ ​ — ​ Share of net loss of equity method investee ​ ​ 133 ​ ​ — ​ Stock-based compensation expense ​ ​ 11,972 ​ 10,370 ​ Change in fair value of warrant liabilities ​ ​ 4,508 ​ ​ ( 4,890 ) ​ Accretion of discounts on other long-term liabilities ​ ​ 78 ​ ​ 174 ​ Amortization of premiums and accretion of discounts on available-for-sale-securities ​ ​ ( 7,829 ) ​ ​ ( 10,975 ) ​ Change in operating assets and liabilities that provided (used) cash and cash equivalents: ​ ​ ​ ​ ​ ​ Contract receivables ​ ​ 160 ​ ( 31 ) ​ Contract receivables from related parties ​ ​ — ​ ​ 319 ​ Prepaid expenses and other assets ​ ​ 710 ​ ( 1,510 ) ​ Accounts payable and other accrued liabilities ​ ​ 1,268 ​ 1,814 ​ Deferred revenue ​ ​ 3,150 ​ ( 50 ) ​ Deferred revenue from related parties ​ ​ ( 828 ) ​ ​ ( 3,172 ) ​ Accrued compensation ​ ​ ( 11 ) ​ 3,058 ​ Operating lease liabilities ​ ​ ( 771 ) ​ ​ ( 549 ) ​ Net cash and cash equivalents used in operating activities ​ ​ ( 63,899 ) ​ ( 58,261 ) ​ Cash Flows from Investing Activities ​ ​ ​ ​ ​ ​ Purchases of property, plant and equipment ​ ​ ( 15,942 ) ​ ( 34,512 ) ​ Purchases of available-for-sale securities ​ ​ ( 216,193 ) ​ ( 327,591 ) ​ Proceeds from sales of available-for-sale securities ​ ​ 302,966 ​ ​ 405,161 ​ Proceeds from sales of property, plant and equipment ​ ​ 77 ​ ​ — ​ Cash paid for loan receivable from equity method investee ​ ​ ( 5,610 ) ​ ​ — ​ Cash paid for equity method investment ​ ​ ( 656 ) ​ ​ — ​ Purchases of intangible assets ​ ​ ( 438 ) ​ ( 556 ) ​ Net cash and cash equivalents provided by investing activities ​ ​ 64,204 ​ 42,502 ​ Cash Flows from Financing Activities ​ ​ ​ ​ ​ ​ Payments of debt ​ ​ — ​ ( 7 ) ​ Proceeds from exercise of stock options ​ ​ 273 ​ 220 ​ Proceeds from issuance of shares of common stock under the ESPP ​ ​ 412 ​ ​ 434 ​ Cash paid for withholding of employee taxes related to stock-based compensation ​ ​ ( 615 ) ​ ​ ( 112 ) ​ Repurchase of shares of common stock ​ ​ ( 9,072 ) ​ ​ — ​ Payments on finance lease liabilities ​ ​ ( 427 ) ​ ​ ( 362 ) ​ Net cash and cash equivalents provided by (used in) financing activities ​ ​ ( 9,429 ) ​ ​ 173 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net decrease in cash and cash equivalents ​ ​ ( 9,124 ) ​ ​ ( 15,586 ) ​ Cash and cash equivalents at beginning of period ​ ​ 34,537 ​ ​ 50,123 ​ Cash and cash equivalents at end of period ​ $ 25,413 ​ $ 34,537 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental information ​ ​ ​ ​ ​ ​ ​ Cash paid for interest ​ $ 46 ​ $ 84 ​ Accrued capital expenditures ​ $ 1,196 ​ $ 814 ​ ​ See accompanying Notes to Consolidated Financial Statements. ​ ​ Solid Power, Inc. | 2024 Form 10-K | 47 Table of Contents Notes to Consolidated Financial Statements (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 Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements of the Company have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements. Actual results could differ from those estimates. All amounts presented in the footnotes are in thousands, except share and per share amounts or as otherwise indicated. The 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 investment in an entity in which the Company does not exercise significant influence or have the obligation to absorb losses or receive benefits as a variable interest entity (“VIE”). The VIE is accounted for under the equity method at the cost of initial investment. The Company evaluates its relationships with the VIE 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 Consolidated Balance Sheets and separately within Share of net loss of equity method investee in the Consolidated Statements of Operations and Comprehensive Loss and within Cash Flows from Investing Activities in the Consolidated Statements of Cash Flows. Segment Reporting The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment as the CODM reviews financial information presented as a single entity for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM manages the business on a consolidated basis and uses consolidated Net Loss Attributable to Common Stockholders as reported in the Consolidated Statements of Operations and Comprehensive Loss as the profit or loss measure in assessing performance and deciding how to allocate resources. The CODM is regularly provided with only the consolidated expenses in the Consolidated Statements of Operations and Comprehensive Loss. See Note 15 – Segment Disclosure for more information. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and contingencies at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting periods. Estimates made by the Company include, but are not limited to, those related to the measurement of revenue for collaborative arrangements, valuation of warrants, valuation of stock-options and useful lives of long-term assets, among others. The Company bases these estimates on historical experience and other assumptions that it believes are reasonable under the circumstances. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of December 31, 2024 and throughout the year, the Company’s cash accounts exceeded federally insured limits. Available-for-Sale Securities The Company’s investment policy is consistent with the definition of available-for-sale securities. The Company does not buy and hold securities principally for the purpose of selling them in the near future. The Company’s policy is focused on the preservation of capital, liquidity, and return. From time to time, the Company may sell certain securities, but the objectives are not to generate profits on short-term differences in price. Solid Power, Inc. | 2024 Form 10-K | 48 Table of Contents These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income (loss) in stockholders’ equity until realized. Gains and losses on available-for-sale securities are reported on the specific-identification method. Dividend and interest income are recognized when earned. The Company’s available-for-sale securities are recorded within Marketable securities and within Investments in the Consolidated Balance Sheets. Contract Receivables Contract receivables consist of amounts due from government entities and commercial contractors. Management considers all contract receivables collectible and, therefore, the Company has not recorded an allowance for credit losses as of December 31, 2024, and 2023. Amounts for work performed but not billed as of December 31, 2024, and 2023 are included within contract receivables and shown in the table below. ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Contract receivables not billed ​ $ 438 ​ $ 302 ​ Credit Risk and Major Customers Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, marketable securities, investments and loan receivables. The Company seeks to mitigate its credit risk with respect to cash and cash equivalents, marketable securities, and investments by making deposits with large, reputable financial institutions and investing in high credit rated instruments. The Company grants credit in the normal course of business to government entities and commercial contractors. The Company periodically monitors the financial condition of its customers to reduce credit risk, but generally does not require collateral to support contract receivables. The table below sets forth revenue and contract receivable concentration for customers that accounted for more than 10% of the Company’s total gross revenue for the years ended December 31, 2024, and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 Revenue concentration ​ ​ ​ Number of customers ​ 3 2 Related total revenue percentage 98 % 89 % Contract receivable concentration ​ Number of customers 2 3 Related contract receivables percentage 94 % 97 % ​ Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist primarily of security deposits, prepaid insurance, and other minor miscellaneous expenses paid in advance. Property, Plant and Equipment Property, plant and equipment are recorded at cost. The Company capitalizes property, plant and equipment with useful lives exceeding one year. Assets are depreciated over their estimated useful lives. The straight-line method is used for computing depreciation. Depreciation expenses are recorded within Operating Expenses in the Consolidated Statements of Operations and Comprehensive Loss. Cost of maintenance and repairs are charged to expense when incurred. Construction in progress related to specialized equipment will be reclassified as Property, plant and equipment and depreciated, once placed in service. ​ ​ ​ ​ ​ Depreciable Life Production equipment ​ 5 years Laboratory equipment ​ 5 years Furniture and Computer Equipment 3 - 7 years Leasehold improvements Lesser of asset life or lease term ​ Solid Power, Inc. | 2024 Form 10-K | 49 Table of Contents Investments The Company considers all available-for-sale securities with an original maturity of less than 12 months when purchased to be marketable securities. The Company considers all available-for-sale securities with an original maturity of 12 months or more when purchased to be investments. The Company records its investments in non-marketable equity securities in accordance with Accounting Standards Codification (“ASC”) 321 – Investments - Equity Securities. Under the measurement alternative, carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Adjustments are determined at fair value as of the transaction date. The Company’s equity securities investment is presented in Investments in the Consolidated Balance Sheets. The Company’s non-marketable equity securities investment, as noted in Note 11 – Related Party Transactions, is evaluated for impairment based on qualitative factors, including the investee’s financial and liquidity position and access to capital resources, among others. When indicators of impairment exist, a loss is recorded equal to the difference between the fair value and carrying value of the investment. The Company acquired an equity interest in Dahae Energy Co., Ltd (“Dahae”) in October 2024. The Company has determined that Dahae is a VIE. The Company does not have a controlling financial interest in Dahae and, therefore, accounts for its investment using the equity method of accounting. As a result of the Company’s interest in Dahae, Dahae is considered a related party. See Note 11 – Related Party Transactions for more information. Loan Receivable from Equity Method Investee The Company accounts for its loan receivable from its equity method investee, Dahae at its stated principal amount, net of any discount or premium. The related discounts or premiums on the loan receivable are amortized or accreted over the term of the loan receivable. The Company classifies its loan receivable on a current (due within 12 months of reporting date) and a long-term (due in excess of 12 months from reporting date) basis in accordance with the stated maturity date. Interest income is accrued based on the contractual terms which are payable on a quarterly basis. Interest income from the loan receivable is presented as Interest income in the Consolidated Statements of Operations and Comprehensive Loss. Any interest receivable from the loan receivable represents a current asset within Prepaid expenses and other current assets in the Consolidated Balance Sheets. The Company applies ASC 326 – Measurement of Credit Losses on Financial Instruments to financial assets measured at amortized cost, including the loan receivable from Dahae. The Company utilizes the discounted cash flow method to estimate current expected credit losses. The Company has not recognized an allowance for current expected credit losses on its loan receivable and does not have any loans receivable in nonaccrual status. See Note 11 – Related Party Transactions for more information. Intangible Assets Intangible assets consist of licenses and costs incurred for pending patents and trademarks. Licenses consist of rights to use patents and are amortized over their estimated useful life of three to 20 years . Patent and trademark costs are amortized over an estimated useful life upon award by the United States Patent and Trademark Office or expensed if the Company is unsuccessful in securing an issued patent. Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested at least annually for impairment if events or circumstances indicate an impairment may have occurred. Leases The Company accounts for its leases under ASC 842 – Lease Accounting. Under this guidance, the Company classifies contracts meeting the definition of a lease as operating or financing leases, and leases are recorded in the Consolidated Balance Sheets as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right-of-use asset results in front-loaded expense over the lease term. Variable lease expenses, including common maintenance fees, insurance and property tax, are recorded when incurred. Solid Power, Inc. | 2024 Form 10-K | 50 Table of Contents In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets. The Company excludes short-term leases having initial terms of 12 months or less as an accounting policy election and instead recognizes rent expense on a straight-line basis over the lease term. Stock-Based Compensation Stock-based compensation primarily consists of stock options, restricted stock units (“RSUs”), and restricted stock grants to non-employees. Expenses for stock-based compensation are measured based on fair value on the date of the grant and recognized over the prescribed vesting schedule as described within Note 8 – Stock-Based Compensation. The estimated fair value of stock options on the date of grant is calculated using the Black-Scholes option-pricing model and is affected by the Company’s stock price, as well as assumptions regarding risk-free rate, dividend yield, and the historical volatility of comparable entities. The estimated fair value of RSUs is determined based on the number of shares granted and the closing price for of the Company’s common stock one business day before the grant date. The Company accounts for forfeitures as they occur. Employee compensation cost is recognized on a straight-line basis over the requisite vesting service period and is recorded within Operating Expenses in the Consolidated Statements of Operations and Comprehensive Loss. The Company recognizes expenses for restricted stock grants to non-employees based on the grant date fair value of the restricted stock, which is based on the closing price of the Company’s common stock one business day before the grant date. Non-employee stock-based compensation expenses are recognized on a straight-line basis over the non-employee vesting period. Non-employee stock-based compensation related to restricted stock grants is recognized within Share of net loss of equity method investee in the Consolidated Statements of Operations and Comprehensive Loss. Revenue The Company records revenue in accordance with ASC 808 – Collaborative Arrangements. Revenue recognition is recorded by analogy to ASC 606 – Revenue from Contracts with Customers. 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. R evenue from the Company’s collaborative arrangements is recognized over time using the input measurement method utilizing labor hours in relation to total labor hours anticipated to satisfy the performance obligation. The Company expenses contract fulfillment costs as incurred. The Company recognizes government revenue from 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 that are allowable under contract provisions. Deferred revenue represents cash collected in advance of revenue recognized. ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Deferred revenue ​ $ 3,150 ​ $ 1 Deferred revenue from related parties ​ ​ — ​ ​ 828 ​ Warrant Liabilities The Company accounts for warrants as liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 – Distinguishing Liabilities from Equity and ASC 815 – Hedge Accounting. Warrants recorded as liabilities are recorded at their fair value within Warrant liabilities in the Consolidated Balance Sheets and are remeasured on each reporting date with changes recorded in Change in fair value of warrant liabilities in the Company’s Consolidated Statements of Operations and Comprehensive Loss. Fair Value Measurements The Company applies fair value accounting for selected financial assets and liabilities measured on a recurring and nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The accounting guidance ASC 820 – Fair Value Measurement established a fair value hierarchy based on three levels of inputs, of which Solid Power, Inc. | 2024 Form 10-K | 51 Table of Contents the first two are considered observable and the last unobservable, used to determine the fair value of its financial instruments. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Level 1 – inputs include quoted market prices in an active market for identical assets or liabilities. Level 2 – inputs are market data, other than Level 1 inputs, that are observable either directly or indirectly, including quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other observable information that can be corroborated by market data. Level 3 – inputs are unobservable and corroborated by little or no market data. The Company considers all highly liquid instruments with original maturities of less than 90 days to be cash equivalents. The Company accounts for the change in fair value of the Company’s available-for-sale securities in Other Comprehensive Income in the Company’s Consolidated Statements of Operations and Comprehensive Loss. Research and Development The Company’s research and development activities focus on making improvements to its electrolyte and cell technologies with the ultimate goal of commercializing technology that outperforms conventional lithium-ion. Costs related to research and development are expensed as incurred. ​ Income Taxes The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or tax returns. Deferred tax liabilities and assets are determined based on the differences between the Consolidated Financial Statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any uncertain tax positions or tax benefits that are not expected to be realized based on available evidence. The Company records deferred tax assets and associated valuation allowances, when appropriate, to reflect amounts more likely than not to be realized based on the Company’s analysis. The Company’s temporary differences result primarily from capitalization of certain qualifying research and development expenses, accruals and reserves, depreciation of property, plant and equipment, stock compensation expense, capitalization of operating or financing leases, and net operating loss carryovers. The Company provides deferred U.S. federal, state, or foreign income tax benefits for periods presented. The Company has also provided a valuation allowance on the net deferred tax asset because of uncertainty regarding realizability. Realization of deferred tax assets is dependent on generating sufficient taxable income prior to the expiration of loss carryforwards. The Company accounts for any uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized in the Consolidated Financial Statements from such a position based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Interest and penalties associated with tax positions are recorded in the period assessed as Selling, general and administrative in the Consolidated Statements of Operations and Comprehensive Loss. No interest or penalties have been assessed during the years ended December 31, 2024 and 2023. Basic and Diluted Loss per Share of Common Stock Basic loss per share is based on the weighted average number of shares of common stock outstanding for the period. Basic loss per share represents Net Loss Attributable to Common Stockholders divided by the weighted average number of shares of common stock outstanding for the period. Diluted loss per share includes the dilutive effect of additional potential shares of common stock issuable from stock-based awards and grants determined using the treasury stock method. Diluted loss per share represents Net Loss Attributable to Common Stockholders divided by diluted weighted average number of shares of common stock, which includes the average dilutive effect of all potentially dilutive securities outstanding for the period. ​ Solid Power, Inc. | 2024 Form 10-K | 52 Table of Contents Foreign Currency The Company’s reporting currency and the functional currency of its foreign operations is U.S. dollars. The Company’s Korean subsidiary maintains its financial statements in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are remeasured using the exchange rate prevailing at the balance sheet date. Gains and losses arising on remeasurement or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not entered into derivative instruments to offset the impact of foreign currency fluctuations. The total impact of foreign currency transaction losses for the years ended December 31, 2024 and 2023 was $ 179 and $ 0 , respectively. ​ Recent Accounting Pronouncements Segment Reporting In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. Effective December 31, 2024, the Company adopted ASU 2023-07 on a retrospective basis. See “—Segment Reporting” above and Note 15 – Segment Disclosure for more information. Income Taxes In December 2023, the FASB issued ASU No. 2023-09 Income Taxes (Topic 740) Improvements to Income Tax Disclosures. ASU 2023-09 requires companies to disclose, on an annual basis, specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires companies to disclose additional information about income taxes paid. ASU 2023-09 will be effective for annual periods beginning January 1, 2025 and will be applied on a prospective basis with the option to apply the standard retrospectively. The Company is evaluating the impact of ASU 2023-09 and anticipates that it may result in additional required disclosures in the Company’s Consolidated Financial Statements for the year ending December 31, 2025. Income Statement In November 2024, the 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 disclosure impact of ASU 2024-03. Note 3 – Property, Plant, and Equipment Property, plant, and equipment are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Production equipment ​ $ 41,750 ​ $ 36,086 Laboratory equipment ​ ​ 12,611 ​ ​ 9,910 Leasehold improvements ​ 73,114 ​ 59,109 Furniture and computer equipment ​ 4,298 ​ 3,915 Construction in progress ​ 5,141 ​ 13,650 Total cost ​ 136,914 ​ 122,670 Accumulated depreciation ​ ( 39,706 ) ​ ( 23,514 ) Net property, plant and equipment ​ $ 97,208 ​ $ 99,156 ​ Solid Power, Inc. | 2024 Form 10-K | 53 Table of Contents Depreciation expenses for dedicated laboratory equipment and production equipment are charged to research and development. The other depreciation expenses are included in the Company’s overhead and are allocated across Operating Expenses based on Company personnel costs incurred. Depreciation expenses related to property, plant, and equipment are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Depreciation expense ​ $ 16,449 ​ $ 11,947 ​ ​ The Company expanded its pilot electrolyte production to produce larger quantities of electrolyte to feed cell-production lines and continue research and development efforts at its Thornton, Colorado facility (“SP2”). The Company began producing electrolyte at SP2 in 2023. The Company also built an electrolyte innovation center (the “EIC”) at SP2 to design, improve, and test electrolyte manufacturing processes. The Company placed nearly all of the EIC into service in 2024 and expects to place the remaining portion in service by the end of the first quarter 2025. Construction in progress related to property, plant, and equipment is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, Construction in progress 2024 2023 SP1 – Capital projects ​ $ 1,896 ​ $ 2,298 SP2 – Increased scale electrolyte production ​ 3,245 ​ 11,352 ​ ​ Note 4 – Intangible Assets Intangible assets are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 ​ ​ Gross Carrying ​ Accumulated ​ Gross Carrying ​ Accumulated ​ ​ Amount Amortization Amount Amortization Intangible assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 149 ​ $ ( 69 ) ​ $ 149 ​ $ ( 61 ) Patents ​ ​ 135 ​ ​ ( 12 ) ​ ​ 92 ​ ​ ( 5 ) Patents pending ​ ​ 1,831 ​ — ​ 1,444 ​ — Trademarks ​ ​ 13 ​ ​ — ​ ​ 13 ​ ​ — Trademarks pending ​ ​ 25 ​ — ​ 18 ​ — Total amortized intangible assets ​ $ 2,153 ​ $ ( 81 ) ​ $ 1,716 ​ $ ( 66 ) ​ Amortization expense for intangible assets is summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 ​ Amortization expense ​ $ 15 ​ $ 15 ​ ​ Useful lives of intangible assets range from three to 20 years . Amortization expenses are allocated ratably across operating expenses in the accompanying Consolidated Statements of Operations and Comprehensive Loss. Note 5 – Fair Value Measurements The carrying amounts 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 December 31, 2024 was not material. As of December 31, 2024, 100 % of the Company’s marketable securities had a maturity of less than one year. As of December 31, 2024, 99 % of the Company’s investments had a maturity between one to five years and 1 % of the Company’s investments had a maturity between five and ten years. Solid Power, Inc. | 2024 Form 10-K | 54 Table of Contents Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis As of December 31, 2024 and 2023, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ Level 1 Level 2 Level 3 Total Assets Balance Sheet Classification ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper Marketable securities ​ $ 47,046 ​ $ — ​ $ — ​ $ 47,046 Corporate bonds Marketable securities ​ $ 28,614 ​ $ — ​ $ — ​ $ 28,614 Corporate bonds Investments ​ $ 173,369 ​ $ — ​ $ — ​ $ 173,369 Government bonds Investments ​ $ 35,904 ​ $ — ​ $ — ​ $ 35,904 U.S. treasuries Marketable securities $ 17,124 ​ $ — ​ $ — $ 17,124 Bifurcated embedded derivative Loan receivable from equity method investee ​ $ — ​ $ — ​ $ 584 ​ $ 584 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Public Warrants Warrant liabilities ​ $ 5,537 ​ $ — ​ $ — ​ $ 5,537 Private Placement Warrants Warrant liabilities ​ $ — ​ $ 3,198 ​ $ — ​ $ 3,198 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ Level 1 Level 2 Level 3 Total Assets Balance Sheet Classification ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper Marketable securities ​ $ 84,909 ​ $ — ​ $ — ​ $ 84,909 Corporate bonds Marketable securities ​ $ 48,135 ​ $ — ​ $ — ​ $ 48,135 Corporate bonds Investment ​ $ 191,338 ​ $ — ​ $ — ​ $ 191,338 Government bonds Marketable securities ​ $ 8,461 ​ $ — ​ $ — ​ $ 8,461 Government bonds Investment ​ $ 48,228 ​ $ — ​ $ — ​ $ 48,228 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Public Warrants Warrant liabilities ​ $ 2,505 ​ $ — ​ $ — ​ $ 2,505 Private Placement Warrants Warrant liabilities ​ $ — ​ $ 1,722 ​ $ — ​ $ 1,722 ​ There were no transfers in and out of Level 3 fair value hierarchy during the years ended December 31, 2024 and 2023. The following table provides the available-for-sale securities purchased during the years ended December 31, 2024 and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 Available-for-sale securities purchased ​ $ 216,193 ​ $ 327,591 ​ 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 December 31, 2024 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 11 – Related Party Transactions for more information. Fair Value of 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 December 31, 2024 and 2023. 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 Solid Power, Inc. | 2024 Form 10-K | 55 Table of Contents 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 ​ Exercise price ​ $ 11.50 ​ $ 11.50 ​ Stock price ​ $ 1.89 ​ $ 1.45 ​ Volatility ​ 124.8 % 95.0 % Term (in years) ​ 1.94 ​ 2.94 ​ Risk-free rate ​ 4.16 % 3.94 % ​ The following table provides a rollforward (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, 2023 ​ $ 0.19 ​ $ 0.28 Change in fair value ​ $ 0.23 ​ $ 0.24 December 31, 2024 ​ $ 0.42 ​ $ 0.52 ​ See Note 6 – Warrant Liabilities for more information. ​ ​ Note 6 –Warrant Liabilities The table below provides a summary of the outstanding Public and Private Placement Warrants. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Public Warrants ​ ​ 13,182,501 ​ ​ 13,182,501 Private Placement Warrants ​ ​ 6,150,802 ​ ​ 6,150,802 ​ Each whole Warrant entitles the holder thereof to purchase one share of common stock at a price of $ 11.50 per share, subject to customary adjustments. Only whole Warrants are exercisable. The Warrants became exercisable on January 7, 2022 and will expire on December 8, 2026. Redemption of Public Warrants When Price per Share of Common Stock Equals or Exceeds $ 18.00 The Company may redeem all of the outstanding Public Warrants: ● in whole and not in part; ● upon at least 30 days ’ prior written notice; ● at a price of $ 0.01 per Public Warrant; and ● if the last sale price of the Company’s common stock equals or exceeds $ 18.00 per share, subject to customary adjustments, for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which notice of the redemption is given. Solid Power, Inc. | 2024 Form 10-K | 56 Table of Contents Redemption of Public Warrants When Price per Share of Common Stock Equals or Exceeds $ 10.00 The Company may redeem all of the outstanding Public Warrants: ● in whole and not in part; ● upon at least 30 days ’ prior written notice; ● at a price of $ 0.10 per Public Warrant, provided that holders will be able to exercise their Warrants on a cashless basis prior to redemption and receive a number of shares of the Company’s common stock determined in part by the redemption date and the “fair market value” of the common stock; and ● if the last sale price of the Company’s common stock equals or exceeds $ 10.00 per share, subject to customary adjustments, on the trading day prior to the date on which notice of redemption is given. The “fair market value” of the Company’s common stock means the average reported last sale price of the Company’s common stock for the ten trading days immediately following the date on which the notice of redemption is sent to the holders of Warrants. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Fair value of warrant liabilities ​ $ 8,735 ​ $ 4,227 ​ The table below provides the gain (loss) recognized in connection with changes in fair value of warrant liabilities at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Gain (loss) recognized associated with warrant liabilities ​ $ ( 4,508 ) ​ $ 4,890 ​ ​ Note 7 – Stockholders’ Equity Common Stock Stock options exercised for common stock, shares of common stock issued under the Solid Power, Inc. 2021 Employee Stock Purchase Plan (the “ESPP”), shares of common stock issued upon vesting of RSUs, shares of restricted stock issued to non-employees, and shares of common stock repurchased under the stock repurchase program for the years ended December 31, 2024 and 2023 are summarized in the table below. ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ ​ 2024 2023 ​ Shares of common stock issued upon exercise of stock options ​ 5,141,728 ​ 2,490,275 ​ Shares of common stock issued under the ESPP ​ 387,664 ​ 287,224 ​ Shares of common stock issued upon vesting of RSUs ​ 1,229,645 ​ 226,201 ​ Shares of restricted common stock issued to non-employees ​ 298,508 ​ — ​ Shares of common stock repurchased ​ ( 5,704,401 ) ​ — ​ ​ Solid Power, Inc. | 2024 Form 10-K | 57 Table of Contents The table below presents the cash received or paid associated with common stock related activities for the years ended December 31, 2024 and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 ​ 2023 Cash received from exercise of stock options ​ $ 273 ​ $ 220 Cash received from shares of common stock issued under the ESPP ​ ​ 412 ​ ​ 434 Cash paid for shares of common stock repurchased ​ ​ ( 9,072 ) ​ ​ — ​ Stock Repurchase Program On January 23, 2024, the Company announced that its Board of Directors (the “Board”) approved a stock repurchase program authorizing the Company to purchase up to $ 50,000 of the Company’s outstanding common stock. Under the repurchase program, the Company may purchase shares of its common stock from time to time until the repurchase program expires on December 31, 2025. The table below presents the number of shares repurchased and retired, the aggregate cost paid to repurchase such shares of common stock, including principal and commissions paid and excise tax accrued, and the average cost paid per share of common stock repurchased and retired for the year ended December 31, 2024. The repurchased shares were subject to excise tax of 1 % of which is accounted for within Additional paid-in capital and accrued within Accounts payable and other current liabilities in the Consolidated Balance Sheets. ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2024 Repurchased and retired shares of common stock ​ ​ 5,704,401 Principal paid for shares of common stock ​ $ 8,959 Commissions paid for shares of common stock ​ $ 113 Total cash paid to repurchase and retire shares of common stock ​ $ 9,072 Excise tax accrued ​ $ 90 Average cost paid per share ​ $ 1.59 ​ ​ Note 8 – Stock-Based Compensation 2014 Plan and 2021 Plan Options granted under the Solid Power, Inc. 2014 Equity Incentive Plan (the “2014 Plan”) have a ten-year term and vest as to 1/4 th of these shares after one year after the initial date of service of a service provider and with the balance of the shares vesting in a series of 36 successive equal monthly installments following the first vesting date. Option awards under the 2014 Plan were granted with an exercise price equal to the fair market value of Solid Power Operating, Inc.’s common stock at the date of grant. Certain option awards issued under the 2014 Plan provide for accelerated vesting if there is a change in control (as defined in the plan agreements). Options granted under the Solid Power, Inc. 2021 Equity Incentive Plan (the “2021 Plan”) during 2022 have a ten-year term and vest as to 1/4th of these shares per year beginning one year after the initial date of service of a service provider. Options granted under the 2021 Plan during 2023 and 2024 have a ten-year term and vest as to 1/4th of the shares one year after the initial date of service of a service provider then 6.25 % per quarter thereafter. Option awards under the 2021 Plan were granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant. Certain option awards issued under the 2021 Plan provide for accelerated vesting if there is a change in control (as defined in the plan agreements). Effective April 1, 2022, the Company began granting RSUs in accordance with the terms of the 2021 Plan. The grant date fair value of RSUs awarded are determined based on the Company’s closing common share price on the Nasdaq on the trading day preceding the grant date. RSU awards for employees granted during 2022 generally vest 25 % per year commencing on the first anniversary of the grant date. RSU awards for employees granted during 2023 and 2024 generally vest 25 % on the first anniversary of the grant date then 6.25 % per quarter thereafter. RSU awards upon initial service as a director vest in 12 equal quarterly installments. For initial service grants, vested RSUs are settled in common stock upon the earlier of the director no longer serving on the Board or the date the RSU has fully vested. Annual RSU awards to directors generally fully vest on the one-year anniversary of the grant date. Solid Power, Inc. | 2024 Form 10-K | 58 Table of Contents Upon vesting, granted RSUs entitle the grantee to receive one share of common stock of the Company at no additional cost. Holders of unvested RSUs do not have voting or dividend rights. At December 31, 2023 and 2024, the Company had 17,134,781 and 11,241,546 shares of common stock underlying stock options outstanding under the 2014 Plan, respectively. No additional grants under the 2014 Plan are permitted. Beginning on January 1, 2022, the number of shares of common stock available for issuance under the 2021 Plan shall increase annually by an amount equal to the lesser of (i) 18,900,000 shares of common stock, (ii) five percent ( 5 %) of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) a number of shares of common stock determined by the administrator no later than the last day of the immediately preceding fiscal year. On January 1, 2022, 2023, and 2024, the number of shares of common stock available for issuance under the 2021 Plan increased by 8,377,899 , 0 , and 8,950,544 shares of common stock, respectively. As of December 31, 2023, and 2024, the 2021 Plan permitted the Company to grant up to 22,369,304 and 28,196,225 shares of common stock, respectively, to its employees, directors, and consultants, as designated by the Board. As of December 31, 2023 and 2024, the Company had 9,144,657 and 17,174,592 shares of common stock underlying options awards and RSU awards outstanding under the 2021 Plan, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 Option awards granted under 2021 Plan ​ ​ 6,324,127 ​ ​ 5,176,889 RSU awards granted under 2021 Plan ​ ​ 6,792,700 ​ ​ 4,663,079 ​ Restricted Stock Grants to Non-employees On October 21, 2024, the Company granted shares of restricted stock to non-employees pursuant to the provisions of Regulation S under the Securities Act of 1933, as amended. These grants were not granted as part of any existing plan. The restricted stock grants vest over a four-year period, subject to forfeiture upon the applicable non-employee ceasing to provide services to Dahae or upon Dahae’s default on the financing instruments entered into between the Company and Dahae on October 21, 2024. No additional shares of restricted stock are authorized for issuance under the restricted stock grants to the non-employees. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 Restricted stock grants to non-employees ​ ​ 298,508 ​ ​ — ​ Compensation Expense for Stock-Based Compensation The fair value of stock options and RSUs issued to employees and directors is recognized as compensation expense over the vesting period of the award. The fair value of the restricted stock grants issued to non-employees is recognized straight-line over the vesting period of the grant. The Company accounts for forfeitures as they occur. For the years ended December 31, 2024 and 2023, the Company recognized compensation costs totaling: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Stock-based compensation costs related to RSUs ​ $ 5,662 ​ $ 3,427 Stock-based compensation costs related to stock options ​ 6,138 ​ 6,774 Stock-based compensation costs related to the ESPP ​ ​ 172 ​ ​ 169 Total equity-based compensation costs ​ $ 11,972 ​ $ 10,370 ​ The unrecognized future compensation costs as of December 30, 2024 and 2023 were $ 20,549 and $ 23,922 , respectively. The Company records compensation across Operating Expenses within the following financial statement lines: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Direct costs ​ $ 1,131 ​ $ 3,751 Research and development ​ ​ 4,463 ​ ​ 4,826 Selling, general and administrative ​ ​ 6,378 ​ ​ 1,793 Total equity-based compensation cost ​ $ 11,972 ​ $ 10,370 Solid Power, Inc. | 2024 Form 10-K | 59 Table of Contents ​ The fair value of restricted stock grants to non-employees is recognized over the vesting period. The Company recognized $ 22 within Share of net losses of equity method investee in the Company’s Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2024. No amounts were recognized during the year ended December 31, 2023. Stock Options For purposes of determining the compensation cost, the fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of comparable companies. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of each stock option grant during the years ended December 31, 2024 and 2023 was estimated on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions used: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 Approximate risk‑free rate ​ ​ 4.23 % ​ 4.17 % Volatility ​ ​ 48.1 % ​ 46.91 % Average expected life (in years) ​ ​ 6 ​ ​ 6 ​ Dividend yield ​ ​ 0 % ​ 0 % Weighted‑average grant date fair value ​ $ 0.82 ​ $ 1.42 ​ Estimated fair value of total stock options granted ​ $ 5,175 ​ $ 7,815 ​ ​ A summary of option activity under the 2014 Plan and 2021 Plan for the year ended December 31, 2024 is presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ Number of ​ Weighted-average ​ Contractual Term Options Options Exercise Price (in years) Outstanding at January 1, 2024 ​ 24,264,016 ​ $ 2.53 ​ 7.03 Granted ​ 6,324,127 ​ $ 1.59 ​ ​ Exercised ​ ( 5,141,728 ) ​ $ 0.05 ​ ​ Forfeited or expired ​ ( 4,840,722 ) ​ $ 3.26 ​ ​ Outstanding at December 31, 2024 ​ 20,605,693 ​ $ 2.45 ​ 6.68 ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2023 ​ 16,662,487 ​ $ 1.99 ​ 4.87 Exercisable at December 31, 2024 ​ 12,275,078 ​ $ 2.48 ​ 5.27 ​ Cash received from options exercised under the 2014 Plan and 2021 Plan during the years ended December 31, 2024 and 2023 was $ 273 and $ 220 , respectively. The aggregate intrinsic value of exercisable options at December 31, 2024 was $ 9,427 . The aggregate intrinsic value of exercised options at December 31, 2024 and 2023 was $ 7,282 and $ 70,115 . The aggregate intrinsic value of options outstanding at December 31, 2024 was $ 12,008 . Restricted Stock Units The following table summarizes unvested RSUs at December 31, 2024 and the changes for the year ended December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-average ​ ​ RSUs ​ Grant Date Fair Value Balance at December 31, 2023 ​ 4,473,016 ​ ​ 3.30 Granted ​ 6,792,700 ​ ​ 1.58 Vested or Exercised ​ ( 1,601,279 ) ​ ​ 2.89 Forfeited ​ ( 1,463,884 ) ​ ​ 2.26 Balance at December 31, 2024 ​ 8,200,553 ​ ​ 3.10 ​ The unvested RSUs had no intrinsic value as of December 31, 2024. Solid Power, Inc. | 2024 Form 10-K | 60 Table of Contents Restricted Stock Grants to Non-employees The following table summarizes unvested restricted stock grants to non-employees and the changes for the year ended December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ Number of Weighted-average ​ ​ Grants ​ Grant Date Fair Value Balance at December 31, 2023 ​ — ​ — Granted ​ 298,508 ​ 1.23 Vested ​ ( 59,702 ) ​ 1.23 Forfeited ​ — ​ — Balance at December 31, 2024 ​ 238,806 ​ 1.23 ​ ESPP The ESPP originated with 3,778,000 shares of common stock available for issuance. Beginning on January 1, 2022, the number of shares of common stock available for issuance under the ESPP shall increase annually by an amount equal to the lesser of (i) 3,778,000 shares of common stock (ii) one percent (1%) of the total number of shares of common stock outstanding on the last day of the immediately preceding fiscal year or (iii) a number of shares of common stock determined by the administrator no later than the last day of the immediately preceding fiscal year. On January 1, 2022, the number of shares of common stock available for issuance under the ESPP increased by 1,685,579 shares of common stock. There were no increases to the number of shares of common stock available for issuance under the ESPP on January 1, 2023 or 2024. As of December 31, 2024 and 2023, 4,788,691 and 5,176,355 shares remained available for issuance, respectively. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. Substantially all employees are eligible to participate and, through payroll deductions, can purchase shares on dates determined by the administrator. However, with respect to the Section 423 Component (as defined in the ESPP), an employee may not be granted rights to purchase stock under the ESPP if the employee, immediately after the grant, would own (directly or through attribution) stock possessing 5 % or more of the total combined voting power or value of all classes of the Company’s common stock. The purchase price per share sold pursuant to the ESPP will be the lower of (i) 85 % of the fair market value of common stock on the enrollment or (ii) 85 % of the fair market value on the exercise date. Each offering period will span up to six months. Purchases may be up to 15 % of qualified compensation, with an annual limit of $ 25 and a limit of 5,000 shares per employee per offering period. Note 9 – Basic and Diluted Loss Per Share The table below sets forth the basic and diluted loss per share calculation for the years ended December 31, 2024 and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 ​ 2023 ​ Net loss attributable to common stockholders ​ $ ( 96,520 ) ​ $ ( 65,549 ) ​ Weighted average shares outstanding – basic and diluted ​ ​ 179,397,332 ​ ​ 178,006,919 ​ Basic and diluted loss per share ​ $ ( 0.54 ) ​ $ ( 0.37 ) ​ ​ Due to the net loss for the years ended December 31, 2024 and 2023, diluted loss per share was computed without consideration of potentially dilutive instruments as their inclusion would have been anti-dilutive. The table below sets forth (in shares) potentially dilutive securities excluded from the diluted loss per share calculation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 ​ Warrants ​ 19,333,303 19,333,303 ​ 2014 Plan & 2021 Plan - stock options ​ 22,969,681 25,877,631 ​ 2021 Plan - RSUs ​ 7,076,624 3,477,809 ​ ESPP - common stock ​ 60,037 ​ 67,724 ​ Non-employee restricted stock grants - common stock ​ 8,658 ​ — ​ Total potentially dilutive securities ​ 49,448,303 ​ 48,756,467 ​ ​ ​ Solid Power, Inc. | 2024 Form 10-K | 61 Table of Contents Note 10 – Leases The Company leases its facilities and certain equipment. Fixed rent 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 (“SP1”) 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 five-year period. On September 1, 2021, the Company entered into an industrial operating lease agreement for its facility in Thornton, Colorado, or SP2, with the initial term through March 31, 2029. Under this operating lease, the Company has one option to renew for five years , which has been included in the calculation of lease liabilities and right-of-use assets as the exercise of the option was reasonably certain. As the renewal rent has not been negotiated, the Company used an estimated rent rate which approximated the fair market rent at adoption of ASC 842 on January 1, 2022 for the extension period. The Company has certain equipment leases classified as finance leases as of December 31, 2024. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Finance lease costs: ​ ​ ​ Amortization of right-of-use assets ​ $ 232 ​ $ 197 Interest on lease liabilities ​ 46 ​ 53 Operating lease costs ​ 1,209 ​ 1,160 Total lease expense ​ $ 1,487 ​ $ 1,410 ​ The components of cash flow information related to leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 ​ Operating outgoing cash flows – finance leases ​ $ 47 ​ $ 54 ​ Financing outgoing cash flows – finance leases ​ 377 ​ 308 ​ Operating outgoing cash flows – operating leases ​ 1,320 ​ 1,138 ​ Right-of-use assets obtained in exchange for new finance lease liabilities: ​ ​ — ​ ​ 345 ​ Right-of-use assets obtained in exchange for new and modified operating lease liabilities: ​ ​ 1,005 ​ ​ — ​ ​ ​ ​ ​ ​ ​ December 31, 2024 Finance lease ​ Weighted-average remaining lease term – finance leases (in years) 2.19 ​ Weighted-average discount rate – finance leases 6.6 % Operating lease ​ ​ Weighted-average remaining lease term – operating leases (in years) 8.01 ​ Weighted-average discount rate – operating leases 6.5 % ​ Solid Power, Inc. | 2024 Form 10-K | 62 Table of Contents As of December 31, 2024, future minimum payments during the next five years and thereafter are as follows: ​ ​ ​ ​ ​ ​ ​ ​ Fiscal year Finance Lease Operating Lease 2025 ​ $ 310 ​ $ 1,359 2026 ​ ​ 179 ​ ​ 1,403 2027 ​ ​ 85 ​ ​ 1,448 2028 ​ ​ 16 ​ ​ 1,494 2029 ​ ​ — ​ ​ 1,548 Thereafter ​ ​ — ​ ​ 4,031 Total ​ ​ 590 ​ ​ 11,283 Less present value discount ​ ​ 39 ​ ​ 2,427 Total lease liabilities ​ $ 551 ​ $ 8,856 ​ ​ Note 11 – 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. During 2024, BMW also purchased certain cell materials from the Company for approximately $ 132 . 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 will pay the Company $ 20,000 between December 2022 and June 2025, subject to the Company achieving certain milestones. For the year ended December 31, 2024, the Company recognized $ 5,410 of revenue from BMW. For the year ended December 31, 2023, the Company recognized $ 12,700 of revenue from BMW and recorded $ 828 of deferred revenue related to cash paid from BMW in advance of services provided. Ford Motor Company During 2024, the Company amended its JDA with Ford Motor Company (“Ford”) to extend the term of the JDA and revise certain deliverables and the schedule for delivery to Ford during the term of the JDA. 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 Co., Ltd.’s facility. The transactions included an equity interest, extinguishment of an existing promissory note, bond (the “Bond”) with detachable warrants (the “Detachable Warrants”) and a bifurcated embedded derivative (the “Derivative”), restricted stock grants for non-employees, and a term loan facility. During 2024, the Company incurred $ 9,342 of cost related to services provided by Dahae. The Company acquired a 20 % equity interest in Dahae for $ 656 (including $ 256 of transaction costs) and recorded the investment using the equity method of accounting. See Note 2 – Significant Accounting Policies for more information. The Company extinguished an existing promissory note from Dahae in exchange the Bond with the Detachable Warrants and the Derivative. At the time of extinguishment, the Company recognized a loss of $ 760 for the difference between the promissory note balance prior to extinguishment and the fair value of the instruments and rights received. Solid Power, Inc. | 2024 Form 10-K | 63 Table of Contents The Bond has an explicit interest rate of 3 %, maturity date of April 26, 2034, and par value of $ 4,448 . On October 21, 2024, the fair value of the Bond was $ 2,497 and the Derivative was recorded at a fair value upon acquisition of $ 584 . As of December 31, 2024, the Bond had an unamortized discount of $ 1,927 . The change in value of the Derivative between October 21, 2024 and December 31, 2024, was immaterial. The Bond and the Derivative are recorded in Loan receivable from equity method investee in the Consolidated Balance Sheets. The Company recorded the Detachable Warrants within Investments in the Consolidated Balance Sheets at a fair value upon acquisition of $ 607 . The Detachable Warrants are fully detachable from the Bond and can be exercised for shares of Dahae’s common stock. If the Company were to exercise the Detachable Warrants in full, the Company would own 40 % of the then outstanding shares of common stock of Dahae. As of December 31, 2024, there were no impairments or downward or upward adjustments to Detachable Warrants since acquisition. The Company granted 298,508 shares of restricted stock grants to non-employees. The restricted stock grants are subject to redemption at fair value once all shares are fully vested and any financing provided by the Company to Dahae has been repaid. As the restricted stock grants are contingently redeemable at fair value, the restricted stock grants are recorded within Mezzanine Equity in the Consolidated Balance Sheets. To adjust these grants to redemption amounts at each reporting period, the Company remeasures the grants to their redemption value based on the price of the Company’s common stock, with a corresponding entry to the Company’s retained earnings. The remeasurement for the year ending December 31, 2024 was $ 12 . See Note 8 – Stock-Based Compensation for more information. The Company entered into a term loan facility with Dahae. Dahae drew upon the facility on November 3, 2024, with a principal balance of $ 1,161 issued at par, explicit interest rate of 3 %, and maturity date of October 21, 2034. The loan is recorded in Loan receivable from equity method investee in the Consolidated Balance Sheets. 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 $ 2,000 of additional financing to Dahae. The table below presents the summarized transactions recorded in the Consolidated Balance Sheets related to the Company’s equity method investment for the periods presented. ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2024 2023 Bond (a) $ 3,105 $ — Loan ​ 1,161 ​ — Warrants ​ 607 ​ — Equity method investment (b) ​ 520 ​ — Mezzanine equity ​ 34 ​ — ​ (a) Includes the $ 584 fair value upon acquisition of the Derivative. (b) Reflects the Company’s $ 656 investment (including $ 256 of transaction costs), less the Company’s share of Dahae’s loss of $ 111 and a currency translation adjustment of $ 25 related to the conversion from South Korean Won to U.S. dollar. The Company’s share of Dahae’s loss is recorded within Share of net loss of equity method investee and the currency translation adjustment is recorded within Other Comprehensive Income in the Consolidated Statements of Operations and Comprehensive Loss. The table below presents the summarized transactions recorded in the Consolidated Statements of Operations and Comprehensive Loss related to the Company’s equity method investment for the years ended December 31, 2024, and 2023, respectively. ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ ​ 2024 2023 Interest income $ 105 $ — Share of net loss of equity method investee ​ 133 ​ — Other comprehensive income ​ 25 ​ — ​ ​ Solid Power, Inc. | 2024 Form 10-K | 64 Table of Contents Note 12 – Retirement Plans The Company sponsors a 401(k) plan for all employees. The plan provides for the Company to make a discretionary matching contribution. Contributions to the plan totaled $ 1,256 and $ 1,084 for the years ended December 31, 2024 and 2023, respectively. Note 13 – Income Taxes Income taxes included in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2024 and 2023 are detailed below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, ​ 2024 2023 Current income tax expense ​ ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ — ​ State ​ ​ 8 ​ ​ — ​ Foreign ​ ​ 1,186 ​ ​ — ​ Deferred income tax expense ​ ​ ​ ​ ​ ​ ​ Federal ​ ​ — ​ ​ — ​ State ​ ​ — ​ ​ — ​ Foreign ​ ​ — ​ ​ — ​ Total income tax expense ​ $ 1,194 ​ $ — ​ ​ The tables below represent a reconciliation of the statutory federal income tax expense to income tax. ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2024 2023 Income tax benefit at the federal statutory rate ​ 21.00 % 21.00 % State income taxes - net of federal income tax benefits ​ 0.82 % 1.42 % Foreign withholding taxes ​ ( 1.25 ) % — % Global tax rate differential ​ ( 0.21 ) % — % Permanent differences ​ ( 2.17 ) % 0.56 % Net change in valuation allowance ​ ( 21.79 ) % ( 25.54 ) % Research and development ​ 4.08 % 2.62 % Other ​ ( 1.74 ) % ( 0.06 ) % Total income tax expense ​ ( 1.26 ) % 0.00 % ​ For the years ended December 31, 2024 and 2023, the effective tax rate was approximately ( 1.26 )% and 0.00 %, respectively. Differences between the statutory rate and the Company’s effective tax rate resulted from changes in valuation allowance and permanent differences for tax purposes in the treatment of certain nondeductible expenses. Solid Power, Inc. | 2024 Form 10-K | 65 Table of Contents The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2024 2023 Deferred tax assets ​ ​ ​ ​ Net operating loss ​ $ 30,446 ​ $ 30,534 R&D credit ​ ​ 7,423 ​ ​ 3,557 Stock compensation ​ ​ 2,909 ​ ​ 3,333 Section 174 capitalization ​ ​ 22,759 ​ ​ 9,406 ROU lease liability ​ ​ 2,061 ​ ​ 2,332 Available-for-sale securities ​ ​ ( 14 ) ​ ​ 125 Other ​ 2,441 ​ 1,204 Total deferred tax asset ​ 68,025 ​ 50,491 Valuation allowance ​ ( 64,744 ) ​ ( 44,109 ) Net deferred tax assets ​ 3,281 ​ 6,382 Deferred tax liabilities ​ ​ Intangibles (non-goodwill) ​ $ ( 2 ) ​ $ ( 1 ) Property, plant and equipment ​ ( 1,144 ) ​ ( 797 ) Accretion ​ ​ ( 307 ) ​ ​ ( 3,351 ) ROU asset ​ ​ ( 1,828 ) ​ ​ ( 2,233 ) Total deferred tax liabilities ​ ( 3,281 ) ​ ( 6,382 ) Total net deferred tax liability ​ $ — ​ $ — ​ The ultimate realization of deferred tax assets is dependent upon the existence, or generation, of taxable income in the periods when those temporary differences and net operating loss carryovers are deductible. Management considers the scheduled reversal of deferred tax liabilities, taxes paid in carryover years, projected future taxable income, available tax planning strategies, and other factors in making this assessment. Based on available evidence, management does not believe it is more likely than not that all of the deferred tax assets will be realized. Accordingly, the Company has established a valuation allowance equal to the net realizable deferred tax assets. The valuation allowance increased by $ 20,635 in 2024. At December 31, 2024 and 2023, the Company had total U.S. federal net operating loss carryovers of approximately $ 130,333 and $ 129,729 , respectively. Federal net operating losses generated on or prior to December 31, 2017 expire in 2037. Federal net operating losses generated on or after January 1, 2018 have an indefinite carryforward and are only available to offset 80 % taxable income beginning in 2021. The determination of state net operating loss carryforwards is dependent upon apportionment percentages and state laws that can change from year to year and that can thereby impact the amount of such carryforwards. The majority of the state net operating losses have an indefinite carryforward. The following table summarizes the Company’s unrecognized tax benefits. ​ ​ ​ ​ ​ ​ December 31, 2024 Balance, beginning of year ​ $ 1,186 Gross increases related to prior period tax position ​ 383 Gross increases related to current period tax position ​ 905 Gross decreases related to prior period tax position ​ — Balance, end of year ​ $ 2,474 ​ The 2019 through 2023 tax years remain open to examination by the Internal Revenue Service and, with few exceptions, various other state tax agencies. These taxing authorities have the authority to examine those tax years until the applicable statutes of limitations expire. 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. Solid Power, Inc. | 2024 Form 10-K | 66 Table of Contents On December 3, 2024, two purported stockholders filed a putative class action against the former officers and directors of Decarbonization Plus Acquisition Corporation III (“DCRC”), including Erik Anderson; Riverstone Holdings, LLC; and related sponsors and entities (the “Hamilton Defendants”) in the Court of Chancery of the State of Delaware (Hamilton et al. v. Anderson et al., C.A. No. 2024-1241-JTL). The lawsuit alleges breach of fiduciary duties and unjust enrichment arising from the merger of Solid 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 - Segment Disclosure The Company receives both government and collaborative revenue and receives revenue from U.S. and the Republic of Korea. The Company determined geographic area based on the country to which its legal entity is incorporated. The Company received revenue from certain customers that each accounted for more than 10% of the Company’s total gross revenue for the years ended December 31, 2024, and 2023. The table below sets forth revenue by type, customer, and geographic area for the years ended December 31, 2024, and 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended December 31, Type of Revenue Customer Geographic Area 2024 2023 Government Customer A U.S. $ 2,472 ​ $ 826 Government Customer B U.S. ​ 246 ​ ​ 2,783 Government Other U.S. ​ 14 ​ ​ 1,498 ​ ​ Total government ​ 2,732 ​ ​ 5,107 ​ ​ ​ ​ ​ ​ ​ ​ Collaborative Customer C U.S. $ 3,020 ​ $ — Collaborative Customer C Republic of Korea ​ 8,760 ​ ​ — Collaborative Customer D U.S. ​ 5,410 ​ ​ 12,303 Collaborative Other U.S. ​ 217 ​ ​ — ​ ​ Total collaborative ​ 17,407 ​ ​ 12,303 ​ ​ Total revenue $ 20,139 ​ $ 17,410 ​ ​ Note 16 – Subsequent Events On January 21, 2025, Solid Power Operating, Inc. and the U.S. Department of Energy (“DOE”) entered into an assistance agreement with an effective date of January 1, 2025 (the “Assistance Agreement”). The Assistance Agreement provides that DOE will provide the Company with funding of up to $ 50,000 for the Company’s installation of equipment necessary for the continuous production of sulfide-based solid electrolyte material. The Company’s cost share obligation under the Assistance Agreement is $ 60,000 . The Company is subject to certain reporting requirements and compliance obligations under the Assistance Agreement. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None.