Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $10.9 million, a slight increase from $10.4 million in Q3 2022, with product revenue rising by 14.9% to $10.5 million compared to $9.1 million last year [26] - PHA-based resin sales grew by 58% year-over-year, while PLA-based resin sales decreased by 51% or $1.8 million due to ongoing issues related to the Ukraine conflict [26] - The company reported a gross loss of $7.7 million for Q3 2023, compared to a gross loss of $4.1 million in the same quarter last year, primarily due to higher depreciation and raw material costs [27] - Adjusted EBITDA loss improved to $9.3 million from $12.9 million in Q3 2022, reflecting improved efficiency and cost control initiatives [29] - Cash and cash equivalents at the end of Q3 2023 were $77.4 million, up from $62.8 million at the end of 2022 [30] Business Line Data and Key Metrics Changes - The growth in product revenue was entirely attributed to PHA-based resin sales, while service revenue fell to approximately $500,000, down $800,000 from the previous year [26][27] - R&D and SG&A expenses, excluding certain items, totaled $6.6 million in Q3 2023, significantly lower than $11.5 million in the same quarter last year [28] Market Data and Key Metrics Changes - The company is experiencing delays in customer program launches, which are affecting short-term financial results and capacity utilization in Kentucky [32] - The cutlery program awarded to the company is expected to require approximately 20 million pounds of resin annually, with first shipments anticipated in the second half of 2024 [11][34] Company Strategy and Development Direction - The company aims to fill existing capacity in Kentucky and expand its plant footprint, with ongoing discussions with the Department of Energy regarding loan terms [22][32] - The recent cutlery program award is seen as a significant validation of the company's PHA-based materials and is expected to open new market opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that customer program timelines have been pushed out, impacting expected utilization rates for the Kentucky facility [37][38] - The company remains optimistic about the long-term demand for PHA-based resins and believes that the recent awards will positively impact future financial performance [34] Other Important Information - The company is working on various partnerships, including with Bacardi and Delta Coffee, to develop innovative biodegradable products [14][17] - The company is also engaged in the development of compostable cups and has made progress in this area, with trials expected by Q1 2024 [20][62] Q&A Session Summary Question: What programs pushed out and their scale? - The cutlery program is approximately six months behind schedule, with initial shipments now expected in Q2 of next year [37][38] Question: Where do operating expenses go from here? - Operating expenses are expected to remain flat to down, with ongoing efforts to identify additional cost savings [39] Question: Update on DOE loan process? - The company is in the due diligence phase with the DOE, expecting funding to come through by early Q3 of next year [40][41] Question: Common themes in customer delays? - Delays are primarily due to technical challenges in product finalization rather than macroeconomic factors [43][44] Question: Relationship with Chevron Phil Chemicals? - Specifics cannot be disclosed due to confidentiality, but there is excitement about the partnership's potential [46] Question: Ramp-up of production for cutlery? - Inventory building for the cutlery program is expected to start in early Q2, with a run rate above 5 million pounds anticipated by the end of next year [50][52] Question: Nodax-based resin for coffee pods? - The company is working with major coffee pod producers in Europe, driven by expected legislation [60] Question: Progress on aqueous coatings for cups? - Progress is going well, with trials expected by Q1 2024 [62]

Forward-Looking Statements and Non-GAAP Financial Results No representations or warranties, express or implied, are given in, or in respect of, this Presentation. To the fullest extent permitted by law in no circumstances will Danimer Scientific, Inc. (the "Company") or any of its subsidiaries, stockholders, affiliates, representatives, directors, officers, employees, advisers, or agents be responsible or liable for a direct, indirect, or consequential loss or loss of profit arising from the use of this Pre ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number: 001-39280 DANIMER SCIENTIFIC, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-1924518 (State or other jurisd ...

Financial Performance - Second Quarter 2023 sales increased to $12865 thousand, compared to $12703 thousand in the same period last year[17] - Adjusted gross profit was a loss of $1632 thousand, compared to a loss of $452 thousand in the second quarter of 2022[17] - Adjusted EBITDA was a loss of $10217 thousand, compared to a loss of $12868 thousand in the second quarter of 2022[17] Business Development & Strategic Initiatives - The company received acceptance of Part 2 application to Department of Energy Loan Guarantee Program for the Bainbridge, GA greenfield facility[10] - Customer launch of Nodax®-based protective films, shrink wrap and produce bags, representing new end-use categories[10] - The company is awaiting imminent selection for a new customer requiring significant annual volumes of biodegradable straw resin[10] - The company expects FY23 capital expenditures of $31 million - $26 million[18] Production & Capacity - The Kentucky plant has a nameplate capacity of approximately 325 M LBS of neat PHA and approximately 65 M LBS of finished resin[15, 16] - At full capacity utilization and current market pricing and mix, the company expects approximately $190 million in revenue from the Kentucky plant[15] - The Bainbridge greenfield plant is expected to drive scale benefits with approximately $400 million of new annual capacity[15] Forward-Looking Statements & Risk Factors - The presentation contains forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially from those projected[8, 13] - The company cautions that forward-looking statements are not guarantees[13]

Danimer Scientific, Inc. (NYSE:DNMR) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants James Palczynski - IR Stephen Croskrey - CEO & Chairman Michael Hajost - CFO Conference Call Participants Thomas Boyes - TD Cowen Dan Moore - CJS Securities Operator Greetings. Welcome to the Danimer Scientific 2023 Second Quarter Earnings Call. I would now like to turn the presentation over to Mr. James Palczynski, the company’s Investor Relations representative. James Palczynski Thank you, ...

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This section provides key administrative details of the Quarterly Report, including the filing entity, stock exchange listing, and company classification - The report is a Quarterly Report (Form 10-Q) for the period ended June 30, 2023, filed by DANIMER SCIENTIFIC, INC[2](index=2&type=chunk) - The company's Class A Common stock is traded on the New York Stock Exchange under the symbol **DNMR**[3](index=3&type=chunk) - Danimer Scientific, Inc. is classified as a **Non-accelerated filer** and a **Smaller reporting company**[4](index=4&type=chunk) - As of August 8, 2023, there were **102,035,267 shares of common stock outstanding**[4](index=4&type=chunk) [Forward-Looking Statements](index=2&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions that future performance statements are based on current expectations and are subject to significant risks and uncertainties - Forward-looking statements are based on current information, assumptions, expectations, and projections, and are not guarantees of future performance[9](index=9&type=chunk) - These statements are subject to future events, risks, and uncertainties, many beyond the company's control, which could cause actual results to differ materially[9](index=9&type=chunk) - The company does not undertake to update these statements, except as required by law[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part encompasses the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial line items [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $90,771 | $62,792 | | Total current assets | $145,375 | $125,071 | | Property, plant and equipment, net | $454,136 | $453,949 | | Total assets | $744,253 | $712,270 | | Total current liabilities | $14,602 | $25,287 | | Long-term debt, net | $375,994 | $286,398 | | Total liabilities | $413,969 | $334,658 | | Total stockholders' equity | $330,284 | $377,612 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net loss over specific reporting periods Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $12,865 | $12,703 | $24,791 | $27,446 | | Cost of revenue | $19,433 | $14,934 | $37,642 | $30,999 | | Loss from operations | $(31,121) | $(32,120) | $(63,348) | $(62,809) | | Interest, net | $(9,162) | $(652) | $(12,548) | $(1,644) | | Net loss | $(39,241) | $(30,445) | $(75,880) | $(56,831) | | Basic and diluted net loss per share | $(0.38) | $(0.30) | $(0.74) | $(0.56) | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in the company's equity accounts, including additional paid-in capital and accumulated deficit Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Balance, beginning of period (Additional paid-in capital) | $676,250 | $619,145 | | Stock-based compensation expense | $27,974 | $27,983 | | Warrants issued with Senior Secured Term Loan | $510 | $- | | Balance, beginning of period (Accumulated deficit) | $(298,648) | $(118,890) | | Net loss | $(75,880) | $(56,831) | | Total stockholders' equity (end of period) | $330,284 | $471,855 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(21,151) | $(37,393) | | Net cash used in investing activities | $(23,041) | $(108,809) | | Net cash provided by financing activities | $85,029 | $71 | | Net increase (decrease) in cash and cash equivalents and restricted cash | $40,837 | $(146,131) | | Cash and cash equivalents and restricted cash - end of period | $105,238 | $140,837 | - Net cash provided by financing activities in 2023 was primarily driven by **$130 million in proceeds from the Senior Secured Term Loan**, offset by **$33.3 million in issuance costs** and **$11.7 million in debt repayments**[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide additional information and explanations for the figures presented in the condensed consolidated financial statements [Note 1. Basis of Presentation](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation) This note describes the company's business and the foundational principles used in preparing the financial statements - Danimer Scientific, Inc. is a performance polymer company specializing in **bioplastic replacements for traditional petroleum-based plastics**[22](index=22&type=chunk) - The company completed a reverse recapitalization business combination with Meredian Holdings Group, Inc. on December 29, 2020, and acquired Novomer, Inc. (now Danimer Catalytic Technologies) on August 11, 2021[23](index=23&type=chunk) [Note 2. Fair Value Considerations](index=8&type=section&id=Note%202.%20Fair%20Value%20Considerations) This note details the company's methodology for fair value measurements, including the three-tier hierarchy and valuation inputs - The company uses a three-tier hierarchy for fair value measurements: **Level 1 for quoted prices in active markets**, **Level 2 for observable inputs other than quoted prices**, and **Level 3 for unobservable inputs**[28](index=28&type=chunk) - Private Warrants and stock options with cash-settlement features are re-valued each period end using the **Black-Scholes option pricing model (Level 3 inputs)**[32](index=32&type=chunk) Private Warrant Valuation Inputs (June 30, 2023 vs. December 31, 2022) | Metric | June 30, 2023 | December 31, 2022 | | :-------------------------- | :------------ | :---------------- | | Share prices of our common stock | $2.38 | $1.79 | | Expected volatilities | 52.82 % | 55.83 % | | Risk-free rates of return | 4.61 % | 4.13 % | | Expected warrant term (years) | 2.50 | 3.00 | | Calculated Private Warrant values | $0.06 | $0.05 | [Note 3. Inventories, net](index=10&type=section&id=Note%203.%20Inventories%2C%20net) This note provides a breakdown of the company's inventory components and their net values Inventories, net (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :------------------------ | :------------ | :---------------- | | Raw materials | $13,746 | $19,964 | | Work in process | $1,538 | $1,524 | | Finished goods and related items | $14,582 | $11,255 | | Total inventories, net | $29,866 | $32,743 | - Finished neat PHA included in inventory increased from **$4.9 million** at December 31, 2022, to **$7.9 million** at June 30, 2023[36](index=36&type=chunk) [Note 4. Property, Plant and Equipment, net](index=10&type=section&id=Note%204.%20Property%2C%20Plant%20and%20Equipment%2C%20net) This note details the company's property, plant, and equipment, including construction in progress and facility development plans Property, Plant and Equipment, net (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Construction in progress | $208,128 | $198,545 | | Total Property, plant and equipment, net | $454,136 | $453,949 | - Major construction on the Greenfield Facility in Bainbridge, Georgia, has been paused, with completion contingent upon receiving additional financing (estimated cost range from **$515 million to $665 million**)[38](index=38&type=chunk) - The Rinnovo pilot plant in Rochester, New York, is expected to be placed in service in **2023**[38](index=38&type=chunk) [Note 5. Intangible Assets](index=11&type=section&id=Note%205.%20Intangible%20Assets) This note outlines the company's intangible assets, their gross value, accumulated amortization, and estimated useful life Intangible Assets, net (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Intangible assets, gross | $95,090 | $94,291 | | Accumulated amortization, ending balance | $(15,758) | $(13,350) | | Total intangible assets, net | $79,332 | $80,941 | - The company's intangible portfolio, primarily patents and technological know-how from Danimer Catalytic Technologies, has an estimated weighted average useful life of **18.0 years**[41](index=41&type=chunk) [Note 6. Accrued Liabilities](index=11&type=section&id=Note%206.%20Accrued%20Liabilities) This note provides a breakdown of the company's accrued liabilities, including compensation, taxes, and construction accruals Accrued Liabilities (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | Compensation and related expenses | $1,557 | $1,305 | | Accrued taxes | $1,159 | $669 | | Construction in progress accruals | $473 | $1,089 | | Accrued interest | $455 | $134 | | Total accrued liabilities | $4,985 | $5,001 | [Note 7. Income Taxes](index=11&type=section&id=Note%207.%20Income%20Taxes) This note presents income tax benefits and explains the factors influencing the effective tax rates Income Tax Benefits (in thousands) | Period | 2023 | 2022 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $61 | $240 | | Six Months Ended June 30 | $151 | $531 | - Effective tax rates were significantly lower than the federal statutory rate of **21%** due to valuation allowances against substantially all net deferred tax assets[43](index=43&type=chunk)[45](index=45&type=chunk) [Note 8. Leases](index=12&type=section&id=Note%208.%20Leases) This note details the total operating lease costs and significant lease extension activities Total Operating Lease Cost (in thousands) | Period | 2023 | 2022 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $951 | $874 | | Six Months Ended June 30 | $1,745 | $1,761 | - During the six months ended June 30, 2023, the company exercised four five-year extension options for its Winchester, Kentucky, and certain Bainbridge, Georgia facilities, extending the lease term by **twenty years**[47](index=47&type=chunk) [Note 9. Private Warrants](index=12&type=section&id=Note%209.%20Private%20Warrants) This note provides information on outstanding private warrants, their exercise price, and the liability rollforward - There are **3,914,525 Private Warrants outstanding**, exercisable at **$11.50 per share**, expiring on **December 28, 2025**[48](index=48&type=chunk) Private Warrants Liability Rollforward (in thousands) | Period | Amount | | :-------------------------------- | :----- | | Balance at December 31, 2022 | $(212) | | Loss on remeasurement of private warrants (Q1 2023) | $(1,116) | | Gain on remeasurement of private warrants (Q2 2023) | $1,083 | | Balance on June 30, 2023 | $(245) | [Note 10. Debt](index=12&type=section&id=Note%2010.%20Debt) This note details the components of the company's long-term debt, including convertible notes and secured term loans, and their future maturities Long-Term Debt Components (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :-------------------------------- | :------------ | :---------------- | | 3.25% Convertible Senior Notes | $240,000 | $240,000 | | Senior Secured Term Loan | $130,000 | $- | | New Market Tax Credit Transactions | $45,700 | $45,700 | | Subordinated Term Loan | $- | $10,205 | | Total | $418,007 | $298,317 | - A **$130 million Senior Secured Term Loan** was closed on March 17, 2023, secured by substantially all assets (excluding Danimer Catalytic Technologies and Greenfield Facility assets), with net proceeds of **$98.6 million**[55](index=55&type=chunk) - The Subordinated Term Loan was fully repaid in 2023 with **$10.2 million of principal and accrued interest**[58](index=58&type=chunk) Future Cash Maturities of Long-Term Debt (in thousands) as of June 30, 2023 | Year | Amount | | :--- | :----- | | 2023 | $1,231 | | 2024 | $672 | | 2025 | $259 | | 2026 | $261,121 | | 2027 | $130,023 | | Thereafter | $24,701 | | Total | $418,007 | [Note 11. Equity](index=14&type=section&id=Note%2011.%20Equity) This note outlines common stock activity, available equity distribution, and anti-dilutive instruments Common Stock Activity (shares) | Period | Balance, beginning of period | Issuance of common stock | Balance, end of period | | :-------------------------- | :------------------------- | :----------------------- | :----------------------- | | Six Months Ended June 30, 2023 | 101,804,454 | 133,922 | 101,938,376 | - As of June 30, 2023, **$99.1 million** remains available for distribution under the Equity Distribution Agreement (ATM Offering)[69](index=69&type=chunk) - Warrants to purchase **1.5 million shares at $7.50 per share** were issued in connection with the Senior Secured Term Loan and accounted for as an equity arrangement[73](index=73&type=chunk) Anti-dilutive Instruments Excluded from Diluted Shares Outstanding (shares) | Instrument | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | | :-------------------------------- | :------------------------------- | :----------------------------- | | Convertible debt | 22,250,040 | 22,250,040 | | Employee stock options | 11,950,598 | 11,950,598 | | Private Warrants | 3,914,525 | 3,914,525 | | Senior Secured Term Loan Warrants | 1,500,000 | 1,500,000 | | Total excluded instruments | 42,163,759 | 42,163,759 | [Note 12. Revenue](index=15&type=section&id=Note%2012.%20Revenue) This note disaggregates revenue by product sales and services, detailing recognition policies and geographical distribution - Revenue is disaggregated into **product sales (PHA- and PLA-based resins)** and **services (R&D and tolling)**[74](index=74&type=chunk) - Product revenue is recognized upon shipment, while service revenue from R&D contracts is recognized as performance obligations are satisfied[75](index=75&type=chunk)[77](index=77&type=chunk) Total Revenues by Country (in thousands) | Country | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $12,520 | $11,540 | $22,794 | $22,221 | | Germany | $225 | $- | $1,343 | $2,689 | | Belgium | $- | $556 | $199 | $1,084 | | All other countries | $120 | $607 | $455 | $1,452 | | Total revenues | $12,865 | $12,703 | $24,791 | $27,446 | [Note 13. Stock-Based Compensation](index=16&type=section&id=Note%2013.%20Stock-Based%20Compensation) This note presents total stock-based compensation expense, unrecognized costs, and the accounting treatment for cash-settlement features Total Stock-Based Compensation Expense (in thousands) | Period | 2023 | 2022 | | :-------------------------- | :----- | :----- | | Three Months Ended June 30 | $13,666 | $14,547 | | Six Months Ended June 30 | $28,609 | $28,245 | - As of June 30, 2023, **$32.8 million of unrecognized compensation cost** related to unvested stock options and restricted shares is expected to be recognized over a weighted-average period of **1.6 years**[98](index=98&type=chunk) - Certain performance-based restricted stock units and stock options have cash-settlement features if adequate shares are not available, leading to them being accounted for as liabilities[93](index=93&type=chunk)[96](index=96&type=chunk) [Note 14. Commitments and Contingencies](index=19&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) This note discusses significant commitments, including a terminated royalty agreement, ongoing class action lawsuits, and an SEC inquiry - The company terminated a royalty agreement with Procter & Gamble, resulting in a **$0.5 million loss** for the six months ended June 30, 2023[99](index=99&type=chunk) - Danimer Scientific is involved in consolidated class action lawsuits alleging violations of federal securities laws and shareholder derivative lawsuits alleging breach of fiduciary duty; no losses have been accrued due to inability to estimate[101](index=101&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - The SEC is conducting a non-public, fact-finding inquiry, to which the company has voluntarily responded[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key factors affecting performance, a detailed analysis of revenue and expenses for the three and six months ended June 30, 2023, and an overview of liquidity and capital resources [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=21&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This note reiterates that forward-looking statements are subject to inherent uncertainties and risks that could cause actual results to differ materially - Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of the company's control[114](index=114&type=chunk) - Factors that could cause actual results to differ include business combination benefits, costs, regulatory changes, legal proceedings, the impact of COVID-19, the ability to execute the business model, raise capital, and the ongoing conflict in Ukraine[116](index=116&type=chunk) [Introductory Note](index=21&type=section&id=Introductory%20Note) This note provides background on the company's formation through a reverse recapitalization and subsequent acquisition - Danimer Scientific was formed through a reverse recapitalization business combination with Meredian Holdings Group, Inc. on December 29, 2020[116](index=116&type=chunk) - The company acquired Novomer, Inc. (now Danimer Catalytic Technologies) on August 11, 2021[117](index=117&type=chunk) [Overview](index=22&type=section&id=Overview) This section describes Danimer Scientific as a performance polymer company specializing in biodegradable bioplastics and outlines its production capacity and facility development - Danimer Scientific is a performance polymer company specializing in **biodegradable bioplastic replacements** for traditional petroleum-based plastics, offering PHA- and PLA-based resins and R&D/tolling services[118](index=118&type=chunk)[119](index=119&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - The Kentucky Facility's capacity expanded to **65 million pounds of finished product per year** in 2022[120](index=120&type=chunk) - Construction of the Greenfield Facility (planned **125 million pounds annual capacity**) is suspended, with **$186.7 million invested**, and completion contingent on additional financing (estimated cost **$515M-$665M**)[121](index=121&type=chunk) [Key Factors Affecting Operating Results](index=22&type=section&id=Key%20Factors%20Affecting%20Operating%20Results) This section identifies the primary drivers influencing the company's revenue and expense performance [Factors Impacting Our Revenue](index=23&type=section&id=Factors%20Impacting%20Our%20Revenue) This section discusses how material adoption, production capacity, new product launches, and R&D contract execution influence revenue - PHA-based revenue is driven by the pace of material adoption and the ability to bring additional production capacity online, such as the Greenfield Facility[128](index=128&type=chunk) - PLA-based revenue is impacted by the effective launch of new product offerings by customers and the growth of neat PLA production capacity by suppliers[128](index=128&type=chunk) - Service revenue depends on the timing and execution of customer contracts, successful biopolymer formulation development, and the ability to transition formulations to commercial scale production[129](index=129&type=chunk) [Factors Impacting Our Expenses](index=23&type=section&id=Factors%20Impacting%20Our%20Expenses) This section details the components of cost of revenue, selling, general and administrative, and research and development expenses - Cost of revenue includes raw materials, labor, production overhead, rent, utilities, and depreciation[130](index=130&type=chunk) - Selling, general and administrative expenses cover salaries, marketing, corporate administration, and unallocated stock-based compensation[131](index=131&type=chunk) - Research and development expense includes salaries, stock-based compensation, depreciation, consulting fees, and facility expenses for non-revenue generating R&D activities[132](index=132&type=chunk) [Current Developments](index=23&type=section&id=Current%20Developments) This section highlights recent operational milestones, including the Rinnovo pilot plant and progress in customer agreements - During Q2 2023, the company finished module assembly of its Rinnovo pilot plant in Rochester, New York, and entered the pre-commissioning phase[135](index=135&type=chunk) - Additional progress was made in negotiating development and supply agreements with blue-chip customers[135](index=135&type=chunk) [Russia & Ukraine Conflict](index=23&type=section&id=Russia%20%26%20Ukraine%20Conflict) This section addresses the impact of the conflict on supply chains and raw material costs - The conflict has led to supply chain challenges and increased logistics and raw material costs, particularly for **canola oil**, a PHA feedstock[134](index=134&type=chunk) [Critical Accounting Policies](index=24&type=section&id=Critical%20Accounting%20Policies) This section notes that financial statement preparation involves significant management estimates and assumptions - The preparation of financial statements requires management to make significant estimates and assumptions, as detailed in the Annual Report on Form 10-K[136](index=136&type=chunk) [Condensed Consolidated Results of Operations for the Three Months Ended June 30, 2023 and 2022](index=24&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202023%20and%202022) This section provides a detailed comparative analysis of the company's financial performance for the second quarter of 2023 versus 2022 [Revenue](index=24&type=section&id=Revenue_Q2) This section analyzes the changes in product and service revenue, highlighting contributions from PHA-based products Revenue (in thousands) | Category | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :---------------- | :------------------------------- | :------------------------------- | :----- | | Products | $12,174 | $11,575 | +$599 | | Services | $691 | $1,128 | -$437 | | Total revenue | $12,865 | $12,703 | +$162 | - PHA-based products represented **66% of total revenue in Q2 2023** (vs. 61% in Q2 2022), with sales increasing by **$0.7 million** due to a **2.6% increase in weighted average selling price**[138](index=138&type=chunk) - Service revenue decreased primarily due to the completion of several R&D contracts[139](index=139&type=chunk) [Cost of revenue and gross profit](index=24&type=section&id=Cost%20of%20revenue%20and%20gross%20profit_Q2) This section examines the changes in cost of revenue, gross profit, and gross profit percentage Cost of Revenue and Gross Profit (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :---------------- | :------------------------------- | :------------------------------- | :----- | | Cost of revenue | $19,433 | $14,934 | +$4,499 | | Gross profit | $(6,568) | $(2,231) | $(4,337) | | Gross profit percentage | -51.1 % | -17.6 % | -33.5 pp | - Cost of revenue increased **30%** due to a **$2.6 million increase in depreciation** and a **$0.8 million increase in raw materials costs** from inflationary pressures[140](index=140&type=chunk) [Operating expenses](index=25&type=section&id=Operating%20expenses_Q2) This section details the changes in selling, general and administrative, and research and development expenses Operating Expenses (in thousands) | Category | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | | Selling, general and administrative | $16,844 | $20,975 | $(4,131) | | Research and development | $7,709 | $8,913 | $(1,204) | | Total operating expenses | $24,553 | $29,889 | $(5,336) | - SG&A expense decreased due to **$1.7 million in legal cost savings**, **$0.5 million in property and consulting expense savings**, and a **$0.5 million benefit from allowance for doubtful accounts reversals**[141](index=141&type=chunk) [Gain on remeasurement of private warrants](index=25&type=section&id=Gain%20on%20remeasurement%20of%20private%20warrants_Q2) This section explains the gain on remeasurement of private warrants, primarily driven by changes in common stock market price Gain on Remeasurement of Private Warrants (in thousands) | Period | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | | Gain on remeasurement of private warrants | $1,083 | $2,012 | $(929) | - The gain was primarily due to a **decrease in the market price of the company's common stock** during the period[142](index=142&type=chunk) [Interest expense](index=25&type=section&id=Interest%20expense_Q2) This section analyzes the increase in net interest expense, primarily due to the Senior Secured Term Loan Interest, net (in thousands) | Period | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :---------------- | :------------------------------- | :------------------------------- | :----- | | Interest, net | $(9,162) | $(652) | $(8,510) | - The increase in interest expense resulted from the incurrence of the **Senior Secured Term Loan in March 2023** and a reduction of capitalized interest[143](index=143&type=chunk) [Income taxes](index=25&type=section&id=Income%20taxes_Q2) This section discusses income tax changes and the impact of valuation allowances on effective tax rates Income Taxes (in thousands) | Period | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :---------------- | :------------------------------- | :------------------------------- | :----- | | Income taxes | $61 | $240 | $(179) | - Effective tax rates differed from the federal statutory rate of **21%** due to valuation allowances against net deferred tax assets[144](index=144&type=chunk) [Net loss](index=25&type=section&id=Net%20loss_Q2) This section summarizes the factors contributing to the increase in net loss for the quarter Net Loss (in thousands) | Period | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Change | | :---------------- | :------------------------------- | :------------------------------- | :----- | | Net loss | $(39,241) | $(30,445) | $(8,796) | - The increase in net loss was primarily attributable to **increased interest expense** and **decreased gross profit**, partially offset by decreases in operating expenses[145](index=145&type=chunk) [Condensed Consolidated Results of Operations for the Six Months Ended June 30, 2023 and 2022](index=25&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) This section provides a detailed comparative analysis of the company's financial performance for the first half of 2023 versus 2022 [Revenue](index=26&type=section&id=Revenue_H1) This section analyzes the changes in product and service revenue, highlighting the impact of sales volumes and pricing Revenue (in thousands) | Category | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :---------------- | :----------------------------- | :----------------------------- | :----- | | Products | $23,270 | $24,791 | $(1,521) | | Services | $1,521 | $2,655 | $(1,134) | | Total revenue | $24,791 | $27,446 | $(2,655) | - Total revenue decreased due to a **9% decrease in pounds sold**, partially offset by a **3.4% increase in weighted average selling price**[147](index=147&type=chunk) - PHA-based product sales decreased **$1.9 million** due to lower volumes, while PLA-based product sales increased **$0.6 million** due to higher selling price and pounds sold[147](index=147&type=chunk) [Cost of revenue and gross profit](index=26&type=section&id=Cost%20of%20revenue%20and%20gross%20profit_H1) This section examines the changes in cost of revenue, gross profit, and gross profit percentage for the six-month period Cost of Revenue and Gross Profit (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :---------------- | :----------------------------- | :----------------------------- | :----- | | Cost of revenue | $37,642 | $30,999 | +$6,643 | | Gross profit | $(12,851) | $(3,553) | $(9,298) | | Gross profit percentage | -51.8 % | -12.9 % | -38.9 pp | - Cost of revenue increased **22%** due to a **$5.6 million increase in depreciation**, **$1.6 million in property taxes and insurance**, and **$0.4 million in utilities**, partially offset by reductions in raw materials, direct labor, and disposal costs[149](index=149&type=chunk) [Operating expenses](index=26&type=section&id=Operating%20expenses_H1) This section details the changes in selling, general and administrative, and research and development expenses for the six-month period Operating Expenses (in thousands) | Category | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | | Selling, general and administrative | $35,543 | $43,211 | $(7,668) | | Research and development | $14,784 | $16,044 | $(1,260) | | Total operating expenses | $50,497 | $59,256 | $(8,759) | - SG&A expense decreased due to **$2.3 million in legal cost savings**, **$1.5 million in consulting expense savings**, and a **$0.9 million benefit from allowance for doubtful accounts reversals**[151](index=151&type=chunk) - R&D expense included a **$0.5 million write-off of a prepaid royalty asset** due to the termination of a royalty agreement[151](index=151&type=chunk) [Gain (loss) on remeasurement of private warrants](index=26&type=section&id=Gain%20%28loss%29%20on%20remeasurement%20of%20private%20warrants_H1) This section explains the gain or loss on remeasurement of private warrants, influenced by common stock market price fluctuations Gain (Loss) on Remeasurement of Private Warrants (in thousands) | Period | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | | Gain (loss) on remeasurement of private warrants | $(33) | $7,007 | $(7,040) | - The current period loss was due to an **increase in the market price of common stock**, contrasting with a gain in the prior year period due to a stock price decrease[152](index=152&type=chunk) [Interest expense](index=26&type=section&id=Interest%20expense_H1) This section analyzes the significant increase in net interest expense for the six-month period, primarily due to new debt Interest, net (in thousands) | Period | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :---------------- | :----------------------------- | :----------------------------- | :----- | | Interest, net | $(12,548) | $(1,644) | $(10,904) | - The increase in interest expense resulted from the incurrence of the **Senior Secured Term Loan in March 2023** and a reduction of capitalized interest[153](index=153&type=chunk) [Income taxes](index=26&type=section&id=Income%20taxes_H1) This section discusses income tax changes and the impact of valuation allowances on effective tax rates for the six-month period Income Taxes (in thousands) | Period | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :---------------- | :----------------------------- | :----------------------------- | :----- | | Income taxes | $151 | $531 | $(380) | - Effective tax rates differed from the federal statutory rate of **21%** due to valuation allowances against net deferred tax assets[154](index=154&type=chunk) [Net loss](index=26&type=section&id=Net%20loss_H1) This section summarizes the factors contributing to the increased net loss for the six-month period Net Loss (in thousands) | Period | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | Change | | :---------------- | :----------------------------- | :----------------------------- | :----- | | Net loss | $(75,880) | $(56,831) | $(19,049) | - The increase in net loss was primarily attributable to **increased interest expense**, a **loss on remeasurement of private warrants** (vs. prior year gain), and **decreased gross profit**, partially offset by decreases in operating expenses[155](index=155&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash position, working capital, and ability to meet future obligations, including facility financing - As of June 30, 2023, the company had **$90.8 million in cash and cash equivalents** and **$130.8 million in working capital**, believing it has adequate liquidity for the next twelve months[156](index=156&type=chunk) - Construction of the Greenfield Facility is suspended, with **$186.7 million invested**, and completion is contingent on additional financing (estimated cost **$515M-$665M**)[157](index=157&type=chunk) - Significant borrowing facilities include **$240 million Convertible Senior Notes (due 2026)** and a **$130 million Senior Secured Term Loan (closed March 2023)**[158](index=158&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk) [Cash Flows for the Six Months Ended June 30, 2023 and 2022](index=27&type=section&id=Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) This section provides a comparative analysis of cash flows from operating, investing, and financing activities Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(21,151) | $(37,393) | | Net cash used in investing activities | $(23,041) | $(108,809) | | Net cash provided by financing activities | $85,029 | $71 | - Net cash used in operating activities decreased primarily due to changes in working capital, specifically accounts receivable and inventories[166](index=166&type=chunk) - Net cash provided by financing activities increased significantly due to proceeds from the **$130 million Senior Secured Term Loan**, net of issuance costs and debt repayments[168](index=168&type=chunk) [Off-balance Sheet Arrangements](index=28&type=section&id=Off-balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements as of the reporting date - As of June 30, 2023, the company reported no material off-balance sheet arrangements[168](index=168&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to various market risks, particularly commodity price fluctuations for key raw materials, and states that derivatives are not used for speculative purposes [Commodity Price Risk](index=28&type=section&id=Commodity%20Price%20Risk) This section identifies the company's exposure to price volatility for key raw materials and its potential impact on profitability - The company is exposed to commodity price risk for raw materials such as **PLA, polybutylene succinate (PBS), polybutylene adipate terephthalate (PBAT), and canola oil**[171](index=171&type=chunk) - Fluctuations in these prices, influenced by market demand and global events like the Ukraine conflict, can impact product margins and profitability[171](index=171&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures, acknowledging their inherent limitations while confirming their effectiveness as of June 30, 2023, and reporting no material changes in internal control over financial reporting [Limitations on Effectiveness of Controls and Procedures](index=28&type=section&id=Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures) This section acknowledges that control systems offer reasonable, not absolute, assurance against errors and fraud due to inherent limitations - Management acknowledges that control systems provide only reasonable, not absolute, assurance against errors and fraud due to inherent limitations such as faulty judgments, simple errors, and circumvention[172](index=172&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures as evaluated by senior management - The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of June 30, 2023[174](index=174&type=chunk) - They concluded that the disclosure controls and procedures were effective in ensuring material information is recorded, processed, summarized, and reported timely[174](index=174&type=chunk) [Changes in Internal Control over Financial Reporting](index=29&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports no material changes in internal control over financial reporting during the quarter - There were no changes in internal control over financial reporting during the three months ended June 30, 2023, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[175](index=175&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity security sales, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the Condensed Consolidated Financial Statements for detailed information regarding legal proceedings - Details on legal proceedings are provided in **Note 14** to the Notes to the Condensed Consolidated Financial Statements[177](index=177&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes in risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds for the period - No unregistered sales of equity securities or use of proceeds occurred during the period[179](index=179&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including a financing agreement amendment, executive officer certifications, and Inline XBRL documents - Exhibits include the **First Amendment to Financing Agreement (10.1)**, **Certifications of Principal Executive Officer (31.1)** and **Principal Financial Officer (31.2, 32.1)**, and various Inline XBRL documents[180](index=180&type=chunk) [SIGNATURES](index=30&type=section&id=SIGNATURES) This section formally attests to the accuracy and completeness of the quarterly report by the principal executive and financial officers - The report was signed on **August 8, 2023**, by **Stephen E. Croskrey, Chief Executive Officer**, and **Michael A. Hajost, Chief Financial Officer**[182](index=182&type=chunk)

Financial Data and Key Metrics Changes - First quarter revenues were $11.9 million, down from $14.7 million in the same quarter of 2022, reflecting a modest decline in both product and service revenue [46] - The company reported a first quarter gross loss of $6.3 million compared to a gross loss of $1.3 million in the first quarter of 2022, with an adjusted gross loss of $1 million compared to an adjusted gross profit of $2 million in the prior year [12][28] - Adjusted EBITDA loss improved to $8.9 million from a loss of $10.6 million in the first quarter of 2022, indicating better control over operating costs [29] - Capital expenditures in the first quarter were $16.4 million, with full year CapEx guidance in the range of $26 million to $31 million [13] Business Line Data and Key Metrics Changes - First quarter product revenue was $2.1 million lower year-over-year, primarily due to a timing shift in PHA-based shipments to a large customer [28] - The PLA business showed normalized comparisons after disruptions from the war in Ukraine impacted both this year's and last year's quarters [28] Market Data and Key Metrics Changes - The company is experiencing strong demand for its biodegradable cutlery resin and has begun shipping to Zespri for a snack line [7] - The PHA-based biodegradable coating materials are gaining traction, with WinCup launching a new paper cup product using these materials [25] Company Strategy and Development Direction - The company is focused on accelerating growth through R&D and capturing near-term commercial opportunities, particularly in the quick service restaurant channel [5][6] - The strategic position is solid, with expectations to finish 2023 on a strong pace, leveraging unique material capabilities and ready capacity [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand ramp-up for PHA-based resins and increased utilization from the Kentucky operations [48] - The company anticipates that the Kentucky manufacturing plant will operate at high levels, with consistent performance above requested throughput targets [26] Other Important Information - The company ended the first quarter with a total debt balance of $380 million, including $46 million of new market tax credit loans expected to be forgiven starting in 2026 [13] - Effective liquidity at the end of the first quarter was $114 million, compared to $62.8 million at the end of 2022 [29] Q&A Session Summary Question: What is the implied run rate of demand if all brand launches scale as expected? - Management indicated that if all forecasted launches hit at scale, it could fill up the Kentucky facility and potentially the greenfield as well [51] Question: What is the market share for a particular application in the U.S.? - Management acknowledged the lack of immediate data on market share but committed to finding that information [35] Question: How is the formulation for the adhesive partnership progressing? - The pilot plant for Danimer Catalytic Technologies is being built out, with ongoing negotiations for co-location and offtake agreements [53] Question: What percentage of revenue was attributable to PHA for the quarter? - PHA accounted for approximately 42% of revenue in the current quarter, down from 52% in the prior quarter [91] Question: What are the trends in average selling prices (ASPs) across different applications? - ASPs have stabilized, with no significant upward or downward trends observed in current products [83] Question: How might a recession impact customer launches? - Management does not expect significant impacts on forecasts even in the event of a mild recession [85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number: 001-39280 DANIMER SCIENTIFIC, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 84-1924518 ( State or other jurisdict ...

Financial Data and Key Metrics Changes - Fourth quarter revenues were $15.3 million, down from $17.7 million in the same quarter of 2021, primarily due to a shift in shipment timing and lower PLA-based product sales due to geopolitical issues [55] - Full-year revenues for 2022 were $53.2 million, compared to $58.7 million in 2021, with product revenue decreasing to $48.4 million from $50.8 million [56] - Adjusted EBITDA loss for the fourth quarter was $8.6 million, an improvement from a loss of $10.2 million in the prior year quarter, driven by gross margin improvements [16][19] - Total debt balance at year-end was $288 million, up from $261 million, reflecting new market tax credit borrowings [18] Business Line Data and Key Metrics Changes - PHA-related sales increased by $7.3 million or 34%, but this was offset by a decline in PLA-based resins of $9.9 million, leading to PHA-related revenues constituting 53% of total revenue in 2022, up from 36% in 2021 [56] - Adjusted gross profit for the full year was $4.4 million, down from $11 million in 2021, reflecting a shift in product mix and increased costs related to capacity ramp-up [36][57] Market Data and Key Metrics Changes - The company is experiencing a 41% year-over-year increase in new customer inquiries, indicating strong market demand for its products [21] - Proposed legislation in Europe could ban petroleum plastics for single-use coffee pods, creating significant market opportunities for PHA-based products [12] Company Strategy and Development Direction - The company aims to disrupt large commodity markets dominated by petroleum-based plastics by offering high-value, environmentally-responsible products [10] - The Kentucky facility is positioned as a growth engine, with the potential to produce up to 65 million pounds of finished product annually by year-end if needed [9][29] - The company is pursuing a greenfield manufacturing facility in Bainbridge, Georgia, and has submitted a loan guarantee application to the Department of Energy [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to produce PHA-based resins at higher levels, which is expected to positively impact gross profit margins [19] - The company anticipates adjusted EBITDA to improve significantly in 2023, with expectations of a range between negative $31 million to negative $23 million [19][38] - Management highlighted the importance of maintaining a strong liquidity position to navigate potential economic uncertainties [58] Other Important Information - R&D and SG&A expenses totaled $46 million in 2022, up from $31 million in the prior year, primarily due to increased headcount and operational costs [57] - The company completed a $130 million senior term loan to enhance liquidity and support operational needs [4][24] Q&A Session Summary Question: What are the options for large companies to move away from petroleum-based plastics? - Management indicated that there are currently no elegant solutions available, and cooperation with potential customers to increase capacity is still in early discussions [63] Question: Can you provide details on the catalytic PHA opportunity? - Management is negotiating two agreements, including a co-location agreement, and expects this opportunity to yield high returns [64] Question: What is the expected utilization rate for the Kentucky facility? - Management expects to run above breakeven capacity, with a target to achieve positive EBITDA for the overall company [66][78] Question: Are there any recessionary risks accounted for in the outlook? - Management has not built recessionary risks into the financial model but emphasized the importance of improving liquidity to mitigate risks [70] Question: What is the current cash burn rate with the new financing? - Management indicated that cash burn is expected to decrease due to adjustments in SG&A and R&D expenses [67][68]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39280 DANIMER SCIENTIFIC, INC. (Exact name of Registrant as specified in its Charter) Delaware 84-1924518 (State or other jurisdictio ...