Danimer Scientific, Inc. (NYSE:DNMR) Q2 2021 Earnings Conference Call August 16, 2021 5:00 PM ET Company Participants Russ Zukowski - Vice President of Corporate Finance Steve Croskrey - Chief Executive Officer Jad Dowdy - Chief Financial Officer Phillip Van Trump - Chief Science and Technology Officer Conference Call Participants Laurence Alexander - Jefferies Jon Tanwanteng - CJS Securities Operator Greetings. Welcome to the Danimer Scientific Second Quarter 2021 Earnings Call. At this time, all participa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common stock, $0.0001 par value per share DNMR New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Co ...

Call Start: 17:00 January 1, 0000 5:49 PM ET Danimer Scientific, Inc. (NYSE:DNMR) Q1 2021 Earnings Conference Call May 17, 2021 17:00 ET Company Participants Russ Zukowski - Vice President of Corporate Finance Steve Croskrey - Chief Executive Officer John Dowdy - Chief Financial Officer Conference Call Participants Jon Tanwanteng - CJS Securities Laurence Alexander - Jefferies Operator Hello, and welcome to the Danimer Scientific's First Quarter 2021 Conference Call. Currently, all participants are in a lis ...

Financial Performance - Total revenue for Q1 2021 was $13,181,000, representing a 24.9% increase from $10,598,000 in Q1 2020[15] - Net loss for Q1 2021 was $94,734,000, compared to a net loss of $1,681,000 in Q1 2020, indicating a significant increase in losses[15] - Product revenue reached $11.0 million in Q1 2021, up from $9.2 million in Q1 2020, driven by a 9% increase in pounds sold and a 9% increase in the weighted average selling price[97] - Services revenue for Q1 2021 was $2.1 million, compared to $1.4 million in Q1 2020, primarily due to a $0.8 million increase in revenue from R&D projects[97] - Gross profit for Q1 2021 was $1.5 million, with a gross profit margin of 11.05%, down from 29.90% in Q1 2020[95] - Total operating expenses for Q1 2021 were $12.7 million, significantly higher than $4.2 million in Q1 2020, leading to a loss from operations of $11.3 million[95] - Cost of revenue for Q1 2021 was $11.7 million, a 57.8% increase from $7.4 million in Q1 2020, with PHA-based products representing 29% of total revenue compared to only 2% in the prior year[98] - Gross margin percentage decreased to 11.1% in Q1 2021 from 29.9% in Q1 2020, primarily due to ramp-up costs associated with PHA manufacturing[98] - Operating expenses increased by $8.5 million in Q1 2021, with selling, general and administrative expenses totaling $10.1 million compared to $3.0 million in Q1 2020[99] - The company reported a net loss of $94.7 million for Q1 2021, compared to a net loss of $1.7 million in Q1 2020[95] Cash Flow and Liquidity - Cash and cash equivalents decreased to $312,910,000 as of March 31, 2021, down from $377,581,000 at the end of 2020[12] - Net cash used in operating activities was $14,208,000 for Q1 2021, compared to $5,615,000 in Q1 2020, indicating higher cash outflows[20] - Cash used in investing activities was $23.9 million in Q1 2021, compared to $15.3 million in Q1 2020, reflecting ongoing expansion of the Kentucky Facility[112] - Net cash used in financing activities was $26.6 million in Q1 2021, primarily due to a $27.0 million principal payment on long-term debt[113] - As of March 31, 2021, the company had $312.9 million in cash and cash equivalents and a working capital of $321.6 million[106] - The company has an accumulated deficit of $153.5 million as of March 31, 2021, up from $58.8 million at the end of 2020[106] Assets and Liabilities - Total current liabilities decreased to $24,188,000 from $50,486,000 at the end of 2020, showing improved short-term financial health[12] - Total assets decreased to $512,303,000 as of March 31, 2021, down from $546,201,000 at the end of 2020[12] - Total stockholders' equity decreased to $282,274,000 as of March 31, 2021, down from $356,044,000 at the end of 2020[12] - Total long-term debt as of March 31, 2021, was $31.316 million, a slight decrease from $31.386 million on December 31, 2020[10] - The company settled the 2019 Term Loan for $27.7 million, including a prepayment fee of $0.5 million and $0.2 million in accrued unpaid interest, resulting in a loss of $2.6 million upon extinguishment[39] Research and Development - Research and development expenses rose to $2,619,000 in Q1 2021, up from $1,247,000 in Q1 2020, reflecting increased investment in innovation[15] - Revenue recognized from R&D services for the quarter ended March 31, 2021, was $(1.737) million, compared to $(0.411) million for the same period in 2020[51] Capital Expenditures and Investments - The company invested $55.4 million in Phase I improvements of the Kentucky Facility, with an expected production capacity of 20 million pounds per year once fully operational[75] - The company has commenced Phase II construction of the Kentucky Facility, with an estimated investment of $114 million to expand capacity by an additional 45 million pounds per year[75] - The company has outstanding noncancellable purchase orders of $44.5 million related to the expansion of its production facility as of March 31, 2021[65] Stock and Equity - The company issued 803,505 shares of common stock during the quarter, increasing total shares outstanding to 85,339,145[17] - The company authorized up to 3,093,984 shares for the 2020 Incentive Plan, which includes stock options and other equity awards[52] - The 2020 Employee Stock Purchase Plan allows employees to purchase shares at a 15% discount, with up to 2,571,737 shares authorized[54] - As of March 31, 2021, the company had an aggregate intrinsic value of $249,345,242 related to stock options and restricted shares[60] - The weighted average grant-date fair value of options granted during the quarter ended March 31, 2021, was $18.52 per option[62] - The company has $157.1 million of unrecognized compensation cost related to nonvested stock options and restricted shares, expected to be recognized over a weighted-average period of 2.7 years[64] Legal and Regulatory Matters - A class action complaint was filed against the company, alleging violations of federal securities laws during the period from December 30, 2020, to March 19, 2021[68] - The company has restated its financial statements due to clarifications in SEC Staff Statement regarding warrant accounting principles, indicating that its disclosure controls were not effective[119] - The company is facing risks from short selling, which may negatively impact its stock price and require significant resources to address allegations made by short sellers[122] - The company has not reported any unregistered sales of equity securities or use of proceeds in the current reporting period[124] - The company has filed various exhibits related to its corporate governance and financial agreements, including amendments to its bylaws and credit agreements[129] - The company’s management, including the CEO and CFO, signed certifications affirming the accuracy of financial reporting as required by the Sarbanes-Oxley Act[133]

Financial Data and Key Metrics Changes - Revenues for the full year 2020 grew 46% to $47.3 million, compared to $32.3 million in the prior year, driven by higher sales of PLA and PHA based resins [24][26] - Full year gross profit increased to $11.5 million compared to $11.1 million in the prior year, with adjusted gross profit rising to $16.6 million from $14 million [27] - Adjusted EBITDA loss was $3.2 million, compared to a loss of $1.6 million in the prior year, primarily due to higher operating expenses [30] Business Line Data and Key Metrics Changes - PHA based resins accounted for 10% of revenues in 2020, a significant increase from 1% in 2019, with fourth quarter sales climbing to 19% [26] - R&D and SG&A expenses increased to $16.3 million from $12.5 million in the prior year, mainly due to increased headcount and salaries [29] Market Data and Key Metrics Changes - Bioplastics represent less than 1% of the addressable market, with an estimated 500 billion pounds of potential market opportunity [18][34] - The company plans to have 315 million pounds of nameplate production capacity by 2024, making it the largest producer of PHA globally [19] Company Strategy and Development Direction - The company aims to accelerate top-line growth and expand adjusted EBITDA margins through partnerships and new product development [36] - Plans to double the size of the Greenfield facility to 250 million pounds of finished product capacity annually, with a projected cost of around $700 million [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing demand for PHA products driven by corporate sustainability commitments and consumer awareness [11][34] - The company expects margins to improve over time as capacity increases and fixed costs are spread out [48] Other Important Information - The company has entered into partnerships with major brands like Mars and Bacardi to develop biodegradable packaging solutions [21][60] - The completion of Phase 1 of the Kentucky facility is expected to significantly ramp up revenue for 2021 [31] Q&A Session Summary Question: Can you provide an updated expectation in terms of profitability? - Management expects margins to improve over time as capacity increases, but anticipates less profitability in the near term due to increased operating expenses from new hires [46][48] Question: How are you pricing to customers given the rising cost of feedstocks? - About half of current contracts have escalators to pass on costs to customers, with impacts from rising canola oil prices expected later in the year [52] Question: Do you have an anchor tenant for the extra volume in the new capacity? - Management confirmed having two new anchor tenants, Mars and Bacardi, with additional customers in the pipeline [59] Question: What has changed regarding the cost of the Greenfield projects? - The increase in estimated costs is attributed to inflation in materials and labor, as well as intentional additions for optimization [66] Question: What is the timeline to reach profitability after construction? - Management models breakeven at roughly a third of the stated capacity [80] Question: What is the expected diluted share count at the end of Q1? - Approximately 88 million shares outstanding, with about 11 million options and $16 million in warrants [85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common stock, $0.0001 par value per share DNMR New York Stock Exchange Warrants to purchase one share of Common Stock DNMR WS New York Stock Exchange FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE S ...

[PART 1 – FINANCIAL INFORMATION](index=4&type=section&id=PART%201%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements for the period ended September 30, 2020, reflect the company's post-IPO SPAC status, detailing trust account assets, net losses, and the subsequent merger agreement [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2020, the balance sheet shows $200.1 million in trust account assets, $201.6 million in total assets, and $189.8 million in Class A common stock subject to redemption Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,398,497 | $20,000 | | Cash and marketable securities held in Trust Account | $200,072,132 | $0 | | **Total Assets** | **$201,602,733** | **$77,950** | | **Liabilities & Equity** | | | | Deferred underwriting fee payable | $6,737,500 | $0 | | Total Liabilities | $6,840,917 | $56,930 | | Class A Common stock subject to possible redemption | $189,761,810 | $0 | | Total Stockholders' Equity | $5,000,006 | $21,020 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and nine months ended September 30, 2020, the company reported net losses of $152,025 and $237,960, respectively, primarily due to administrative expenses offset by trust account interest income Statement of Operations Summary (Unaudited) | Description | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Formation and general and administrative expenses | $197,698 | $310,092 | | Loss from operations | ($197,698) | ($310,092) | | Interest earned on marketable securities held in Trust Account | $45,673 | $72,132 | | **Net loss** | **($152,025)** | **($237,960)** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to $5.0 million as of September 30, 2020, driven by IPO unit sales and private placement warrants, offset by offering costs and reclassification of redeemable stock - The company sold **20,000,000 units**, net of underwriting discounts and offering costs, resulting in an increase to equity of **$188,978,756**[14](index=14&type=chunk) - The sale of **6,000,000 Private Placement Warrants** contributed **$6,000,000** to additional paid-in capital[14](index=14&type=chunk) - A total of **$189,913,840** was reclassified from equity to temporary equity, representing the value of common stock subject to possible redemption[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2020, net cash from financing activities totaled $201.7 million, largely offset by a $200 million investment into the Trust Account, resulting in $1.4 million cash at period-end Cash Flow Summary for the Nine Months Ended September 30, 2020 (Unaudited) | Cash Flow Category | Amount | | :--- | :--- | | Net cash used in operating activities | ($342,759) | | Net cash used in investing activities | ($200,000,000) | | Net cash provided by financing activities | $201,721,256 | | **Net Change in Cash and Cash Equivalents** | **$1,378,497** | | **Cash and Cash Equivalents – End of period** | **$1,398,497** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's SPAC formation, May 2020 IPO, related party transactions, and the subsequent definitive merger agreement with Danimer Scientific, supported by a $210 million PIPE financing - The company was formed to effect a business combination and consummated its Initial Public Offering of **20,000,000 units at $10.00 per unit** on May 8, 2020, generating gross proceeds of **$200,000,000**[23](index=23&type=chunk)[26](index=26&type=chunk) - On October 3, 2020, the Company entered into a definitive merger agreement with Meredian Holdings Group, Inc. (d.b.a. Danimer Scientific), a manufacturer of biodegradable bio-plastics[44](index=44&type=chunk)[104](index=104&type=chunk) - In connection with the merger, the Company secured **$210,000,000** in a Private Investment in Public Equity (PIPE) financing from various subscribers at **$10.00 per share**[114](index=114&type=chunk) - The company has until May 8, 2022 (24 months from IPO) to complete a business combination, or it will be required to cease operations and liquidate the Trust Account[38](index=38&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's blank-check status, the merger agreement with Danimer Scientific, a net loss of $237,960, and liquidity comprising $1.4 million cash for operations and $200.1 million in the Trust Account - The company is a blank check company formed for the purpose of effecting a business combination and has not generated any revenue to date[121](index=121&type=chunk)[129](index=129&type=chunk) - On October 3, 2020, the company entered into a merger agreement with Meredian Holdings Group, Inc. (d.b.a. Danimer Scientific)[128](index=128&type=chunk) Operating Results Summary | Period | Net Loss | Key Drivers | | :--- | :--- | :--- | | Three months ended Sep 30, 2020 | ($152,025) | Operating costs of $197,698 offset by interest income of $45,673 | | Nine months ended Sep 30, 2020 | ($237,960) | Operating costs of $310,092 offset by interest income of $72,132 | - As of September 30, 2020, the company had **$1,398,497** in cash and cash equivalents outside the Trust Account for working capital and **$200,072,132** in cash and marketable securities held in the Trust Account[137](index=137&type=chunk)[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not subject to material market or interest rate risk, as Trust Account funds are invested in short-term U.S. government securities - The company's funds in the Trust Account are invested in short-term U.S. government securities, leading to the belief that there is no material exposure to interest rate risk[148](index=148&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting during the quarter - An evaluation of disclosure controls and procedures as of September 30, 2020, led by the CEO and CFO, concluded that they were effective[150](index=150&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that would have a material effect[151](index=151&type=chunk) [PART II – OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings - The company has no legal proceedings to report[155](index=155&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's IPO prospectus and preliminary proxy statement - No material changes have occurred to the risk factors disclosed in the company's IPO prospectus filed May 6, 2020, and the Preliminary Proxy Statement filed October 28, 2020[156](index=156&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds for the period - None reported[158](index=158&type=chunk) [Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None reported[160](index=160&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reports no other information - None reported[164](index=164&type=chunk) [Exhibits](index=36&type=section&id=Item%206.%20Exhibits) The report lists several exhibits filed, including the Merger Agreement with Meredian Holdings Group, Inc., officer certifications, and XBRL data files - Key exhibits filed include the Merger Agreement with Meredian Holdings Group, Inc. and its amendment, officer certifications (pursuant to Sarbanes-Oxley Act Sections 302 and 906), and XBRL data files[167](index=167&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-39280 Live Oak Acquisition Corp. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------- ...