Core Insights - LanzaTech Global, Inc. has received a £6.4 million grant from the UK government's Advanced Fuels Fund to advance its DRAGON 1 & 2 projects, which are essential for producing sustainable aviation fuel (SAF) in the UK [1][2][8] Group 1: Project Details - The DRAGON 1 project will convert recycled carbon fuel ethanol into Advanced SAF in Port Talbot, South Wales, utilizing the LanzaJet® Alcohol-to-Jet (AtJ) process [3] - The DRAGON 2 project will be a Power-to-Liquid (PtL) facility that converts waste carbon dioxide and green hydrogen into ethanol for subsequent conversion into PtL SAF [4] - The integration of LanzaTech's gas fermentation process with LanzaJet's AtJ technology provides a competitive advantage by transforming regional waste resources into valuable SAF [5] Group 2: Government Support and Funding - The UK government's investment in these projects highlights its confidence in LanzaTech's technology and its potential to significantly enhance the UK's SAF production [6] - The total government contributions through the Advanced Fuels Fund have now reached £198 million, aimed at expanding cleaner aviation technologies [8] - The funding supports a variety of pathways and feedstocks for SAF production, reflecting the UK government's inclusive approach to achieving net-zero aviation [8] Group 3: Strategic Partnerships and Future Outlook - LanzaTech holds a 36% ownership stake in Project Speedbird, which also received £10 million in funding from the Advanced Fuels Fund, further demonstrating government trust in LanzaTech's technology portfolio [7] - The partnership between LanzaTech and LanzaJet aims to create CirculAir™, which transforms various forms of waste carbon into SAF, providing a global solution for the aviation industry [7] - LanzaTech is committed to collaborating with the UK government and industry partners to scale solutions that convert waste carbon into sustainable growth opportunities [9]

Leadership Changes - Sushmita Koyanagi has been appointed as Chief Financial Officer, effective June 2, 2025, succeeding Justin Pugh, who served as interim CFO since January 2025 [1][3] - Amanda Fuisz will assume the role of interim General Counsel, effective June 13, 2025, succeeding Joseph Blasko [2][3] Cost Reduction and Strategic Focus - The leadership changes are part of a strategy to streamline operations and reduce costs, with anticipated annual cost reductions of approximately $1 million [5] - The company aims to better allocate resources towards promising commercial opportunities, particularly in sustainable aviation fuel production [5] Board of Directors Update - Gary Rieschel, a long-serving board member, will retire at the conclusion of his current term and will not seek re-election at the Annual Meeting of Stockholders on July 21, 2025 [4][5]

Financial Performance - For the three months ended March 31, 2025, total revenue was $9.48 million, a decrease of 7% compared to $10.24 million in the same period of 2024[226]. - Net loss for the three months ended March 31, 2025, was $19.23 million, representing a 24.6% improvement from a net loss of $25.51 million in the prior year[230]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(30.51) million, a decline of 38% from $(22.15) million in the prior year[226]. - Total revenue decreased by $0.8 million, or 7.4%, for the three months ended March 31, 2025, compared to the prior year period[231]. - Engineering and other services revenue decreased by $2.7 million, while CarbonSmart sales increased by $3.3 million[231]. - Operating expenses for the three months ended March 31, 2025, totaled $33.02 million, an increase of 11.5% from $29.63 million in the same period of 2024[230]. - SG&A expenses increased by $4.7 million, or 42.7%, primarily due to higher professional fees[234]. - R&D expenses decreased by $0.6 million, or 3.3%, mainly due to a reduction in consumables and facilities expenses[233]. - Cash flows used in operating activities decreased by $7.2 million, or 25%, in the three months ended March 31, 2025, compared to the same period in 2024[264]. - The company provided $4.3 million in net cash from investing activities for the three months ended March 31, 2025, down from $9.2 million in the same period in 2024[265]. Revenue Sources - Recurring revenue increased by 115% to $1.21 million for the three months ended March 31, 2025, compared to $0.56 million in the same period of 2024[226]. - Cost of revenues increased by $0.7 million, or 11.0%, primarily due to increased sales of CarbonSmart products[232]. Cash and Liquidity - Cash and cash equivalents decreased by $29.7 million, or 64.9%, primarily due to funding net losses and loan repayments[239]. - As of March 31, 2025, the company reported cash and cash equivalents of $13.8 million, short-term held-to-maturity debt securities of $7.4 million, and an accumulated deficit of $(988.8) million[256]. - The company is projecting that its existing cash and short-term debt securities will not be sufficient to fund operations through the next twelve months, raising substantial doubt about its ability to continue as a going concern[257]. - Held-to-maturity security investments totaled $7.4 million as of March 31, 2025, down from $12.4 million as of December 31, 2024[240]. Financing Activities - The Company entered into a Series A Convertible Senior Preferred Stock Purchase Agreement on May 7, 2025, raising $40 million[221]. - The Company plans to pursue a Subsequent Financing of $35 million to $60 million at a price per share of $0.05, subject to stockholder approvals[224]. - The company entered into a Loan Agreement with Brookfield, resulting in a loan of approximately $60 million, which includes an initial principal payment of $12.5 million[254]. - The company agreed to issue and sell 20,000,000 shares of Series A Preferred Stock for an aggregate purchase price of $40 million[259]. - The company plans to pursue capital raising and other strategic options to enhance liquidity[258]. Operational Developments - The Company launched CirculAir™, a new joint offering for sustainable aviation fuel and renewable diesel, in June 2024[217]. - The Company has established multiple commercial plants globally, including in China, India, and Belgium, with ongoing developments in various countries[217]. Other Income and Expenses - Interest income, net decreased by $0.7 million due to lower cash balances[235]. - Other income, net increased by $17.7 million, driven by a $34.3 million gain from the decrease in fair value of the Convertible Note[236]. - The company repaid $12.5 million of the Brookfield Loan during the three months ended March 31, 2025[266].

Revenue Performance - Reported total revenue of $12.0 million for fourth-quarter 2024, down 41% from $20.5 million in fourth-quarter 2023, primarily due to project completions and timing delays in large biorefining projects [4] - Full-year 2024 revenue was $49.6 million, a decrease of 21% compared to $62.6 million in 2023, attributed to project completions and timing delays [4] - CarbonSmart™ revenue for fourth-quarter 2024 increased by 88% to $3.9 million, compared to $2.1 million in fourth-quarter 2023, due to new licensing arrangements [9] - Total revenues for the year ended December 31, 2024, were $49,592, a decrease of 20.9% compared to $62,631 in 2023 [23] Profitability and Losses - Gross profit for fourth-quarter 2024 was $6.5 million, resulting in a gross margin of 54%, compared to $8.5 million in fourth-quarter 2023 [7] - Net loss for fourth-quarter 2024 was $27.0 million, compared to a net loss of $18.7 million in fourth-quarter 2023 [10] - Adjusted EBITDA loss for fourth-quarter 2024 was $21.2 million, compared to a loss of $19.6 million in fourth-quarter 2023 [11] - Net loss for the year ended December 31, 2024, was $137,731, compared to a net loss of $134,098 in 2023, reflecting a slight increase in losses [23] - The company reported a total net loss of $137.731 million for the year ended December 31, 2024, compared to $134.098 million in 2023, indicating a 2.0% increase in annual losses [30] Expenses and Cash Flow - Operating expenses increased to $33.5 million for fourth-quarter 2024, up from $27.1 million in fourth-quarter 2023, driven by project-related expenses [8] - Cash and cash equivalents decreased to $43,499 as of December 31, 2024, down 42.3% from $75,585 in 2023 [20] - The company had a net cash used in operating activities of $89,060 for the year ended December 31, 2024, compared to $97,296 in 2023, indicating improved cash flow management [25] - The company incurred transaction costs of $451 thousand related to the issuance of FPA during the year [30] Assets and Liabilities - Total assets decreased to $174,683 in 2024, down 27.7% from $241,624 in 2023 [20] - Total liabilities increased to $161,236 in 2024, up 26.8% from $127,153 in 2023 [20] Research and Development - Research and development expenses for the year ended December 31, 2024, were $77,007, an increase of 13.5% compared to $68,142 in 2023 [23] Strategic Initiatives - The company is shifting its operational focus from R&D to global deployment of its technology, aiming to improve cost structure [4] - Management is evaluating liquidity-enhancing initiatives, including capital raising and strategic partnerships, to address going concern doubts [4] Shareholder Information - The weighted-average number of common shares outstanding for the year ended December 31, 2024, was 197,579,945, compared to 176,023,219 in 2023, reflecting an increase in shares [23] Other Financial Metrics - Adjusted EBITDA for the year ended December 31, 2024, was $(88.212) million, compared to $(80.144) million in 2023, indicating a 10.0% increase in losses [30] - Stock-based compensation expense for Q4 2024 was $6.191 million, while the change in fair value of SAFE and warrant liabilities was recorded as $4.679 million for the year [30] - Loss from equity method investees increased to $6.299 million in Q4 2024 from $1.961 million in Q4 2023, marking a significant rise of 220.0% [30] - Interest income, net decreased to $(710) thousand in Q4 2024 from $(1.408) million in Q4 2023, reflecting a 49.7% decline [30] - The change in fair value of the FPA Put Option and Fixed Maturity Consideration liabilities for the year was $23.283 million, down from $44.300 million in 2023 [30] - One-time costs related to the Business Combination and regulatory matters were $4.693 million in 2023, which are not expected to recur in the future [31] - Depreciation expense for the year ended December 31, 2024, was $5.567 million, slightly up from $5.452 million in 2023 [30]

Financial Performance - LanzaTech reported total revenue of $9.5 million for Q1 2025, a decrease from $10.2 million in Q1 2024, primarily due to lower revenues in biorefining and Joint Development Agreement (JDA) & Contract Research businesses, partially offset by a significant increase in CarbonSmart revenue [5][6] - Biorefining revenue decreased to $2.9 million in Q1 2025 from $5.0 million in Q1 2024, attributed to the completion of engineering and service contracts [6] - JDA & Contract Research revenue fell to $2.4 million in Q1 2025 from $4.3 million in Q1 2024, due to the completion of certain government projects [6] - CarbonSmart revenue increased significantly to $4.2 million in Q1 2025 from $0.9 million in Q1 2024, driven by direct fuel sales and new licensing arrangements [6] Cost and Expenses - The cost of revenue for Q1 2025 was $7.5 million, up from $6.8 million in Q1 2024, influenced by a change in revenue mix and margin contraction in the biorefining business [7] - Operating expenses rose to $33.0 million in Q1 2025 from $29.6 million in Q1 2024, primarily due to costs associated with business focus and strategic evaluations [8] Net Loss and Adjusted EBITDA - The net loss for Q1 2025 was $19.2 million, an improvement from a net loss of $25.5 million in Q1 2024, mainly due to a non-cash gain on financial instruments [9] - Adjusted EBITDA loss increased to $30.5 million in Q1 2025 from $22.1 million in Q1 2024, attributed to higher selling, general and administrative expenses and lower revenue [10] Balance Sheet and Liquidity - As of March 31, 2025, LanzaTech had $23.4 million in total cash and investments, down from $58.1 million at the end of 2024 [11] - The company closed $40 million of preferred equity capital in May 2025, but ongoing liquidity initiatives raise concerns about its ability to continue as a going concern [5][11] Company Overview - LanzaTech Global, Inc. is focused on transforming waste carbon into sustainable fuels, chemicals, materials, and protein through its biorecycling technology [12]

Financial Data and Key Metrics Changes - The company reported a 2.3% increase in ID sales for Q4 2024, with adjusted EBITDA of $855 million and adjusted earnings per share of $0.46, compared to $916 million and $0.54 in Q4 2023 respectively [11][30][33] - Gross margin for Q4 was 27.4%, a decrease of 45 basis points year-over-year, primarily due to strong pharmacy sales and increased digital delivery costs [28][30] - Selling and administrative expense rate was 25.7%, with a slight decrease of five basis points compared to the previous year, driven by lower merger-related costs [29][30] Business Line Data and Key Metrics Changes - E-commerce sales grew by 24% in Q4, with penetration now over 8% of grocery revenue, indicating significant growth potential compared to industry peers [12][13] - Pharmacy revenue increased by 18% year-over-year, driven by script and immunization growth [15][28] - Loyalty membership grew by over 15% year-over-year, reaching more than 45 million members, with actively engaged customers increasing by 12% [13][14] Market Data and Key Metrics Changes - The company is experiencing inflationary pressures, leading to increased customer demand for value, prompting strategic price investments in certain categories [19][43] - The competitive environment remains challenging, with pressures from mass and club stores, yet customer traffic has increased [84] Company Strategy and Development Direction - The company is focused on its "Customers for Life" strategy, emphasizing digital engagement, enhancing customer value propositions, and modernizing capabilities through technology [8][32] - Significant investments are planned for digital growth, the Albertsons Media Collective, and health and pharmacy initiatives [33][34] - The company aims to achieve $1.5 billion in productivity savings from FY 2025 to FY 2027, which will be reinvested into growth initiatives [22][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and its ability to navigate inflationary pressures while continuing to invest in customer engagement and technology [32][36] - The outlook for FY 2025 includes ID sales growth of 1.5% to 2.5% and adjusted EBITDA in the range of $3.8 billion to $3.9 billion [33][34] Other Important Information - The company plans to maintain its quarterly dividend and return excess cash to shareholders through opportunistic share repurchases, with a $2 billion share repurchase program authorized [35][34] - The company contributed over $435 million in food and financial support to communities in 2024, including a new goal to enable 1.5 billion meals by 2030 [26] Q&A Session Summary Question: Update on price gaps and competitive environment - Management noted no dramatic shifts in consumer behavior but acknowledged a shift towards value and promotions, with a surgical approach to price investments [43][44] Question: Buybacks within guidance - Management confirmed that the guidance includes assumptions for share repurchases, estimating approximately $0.06 of accretion in EPS each year if repurchased evenly over three years [46] Question: Proportion of imported goods and tariff impacts - The company procures over 90% of its products domestically, with ongoing monitoring of tariff impacts on costs [50][51] Question: Key investment areas for 2025 - Investments will focus on digital growth, loyalty programs, and enhancing customer value propositions, with a thoughtful cadence throughout the year [58][61] Question: Q1 performance expectations - Management indicated that Q1 may be softer due to ongoing investments, but consumer behavior remains stable with a focus on value [62][64] Question: Pharmacy growth outlook and GLP-1 impact - GLP-1s contribute to pharmacy growth, but core script volume is also increasing, providing opportunities for deeper customer engagement [93][96] Question: Gross margin outlook and reinvestment of savings - Management expects pressure on gross margin in 2025 but anticipates offsetting benefits from productivity initiatives [82][84]

Environmental Impact and Sustainability - The company has produced over 75 million gallons of fuel-grade ethanol, mitigating over 500,000 tons of CO₂ emissions since May 2018[28]. - The first commercial facility in China utilizing the company's technology has sold over 65.9 million gallons of ethanol, displacing fossil gasoline and avoiding over 240,000 tons of CO₂ emissions[36]. - The company aims to produce CarbonSmart materials, removing approximately two tons of CO₂ for every ton of CarbonSmart product produced[33]. - Ethanol produced can demonstrate up to 85% GHG reduction compared to fossil alternatives, depending on various factors[61]. - The integration of bio-based industrial CO₂ and DAC technologies with the gas fermentation platform is expected to significantly reduce emissions, achieving a 94% reduction compared to fossil counterparts[51]. - The company expects the adoption of CarbonSmart products to grow significantly, contributing to the decarbonization of multiple industries[60]. Technology and Intellectual Property - The company has a strong intellectual property position with 1,193 granted patents and 515 pending applications as of December 31, 2024[37]. - The company’s technology can utilize diverse waste feedstocks, potentially yielding up to 6.5 billion metric tons of gas fermentation products annually, primarily ethanol[45]. - The company has established partnerships with industry leaders, validating its technology through over 100,000 hours of pilot and demonstration-scale operations[36]. - The Shougang Joint Venture License Agreement allows the joint venture to utilize the company's intellectual property for ethanol production, with the agreement continuing until the last commercial facility is decommissioned[97]. Financial Performance and Position - The company reported cash outflows from operations of $(89.1) million and a net loss of $(137.7) million for the year ended December 31, 2024[124]. - The company incurred net losses of approximately $137.7 million for the year ended December 31, 2024, and $134.1 million for the year ended December 31, 2023, with an accumulated deficit of $969.6 million as of December 31, 2024[134]. - As of December 31, 2024, the company had cash and cash equivalents of $43.5 million, short-term held-to-maturity debt investments of $12.4 million, and an accumulated deficit of $(969.6) million[124]. - The largest contracting entity accounted for 25% of the company's revenue for the fiscal year ended December 31, 2024, down from 38% in 2023[70]. - The company has historically funded its operations through a combination of business combinations, equity securities issuances, and debt financing[126]. Partnerships and Collaborations - The company holds approximately 36.33% of the outstanding shares of LanzaJet as of December 31, 2024, with potential to increase to approximately 46% and 53% with future investments[73]. - The Mitsui Alliance Agreement mandates Mitsui to promote the company's gasification and waste-to-ethanol technology in Japan, while the company must exclusively recommend Mitsui for investment and off-take services[86][88]. - The Brookfield Framework Agreement requires the company to present projects needing at least $500 million in equity funding to Brookfield, with no obligation for Brookfield to invest[99]. - LanzaJet has received a total commitment of up to $120 million from partners, with $45 million already invested in the initial demonstration facility at the LanzaTech Freedom Pines Biorefinery in Soperton, Georgia[160]. Regulatory and Compliance Risks - The company faces risks related to regulatory changes that could impact its operations and financial condition, particularly concerning GHG emissions and chemical regulations[120]. - The company is subject to extensive laws and regulations, and any changes could materially affect its ability to manufacture and commercialize products[194]. - The company may incur significant expenses related to product liability claims if defects in products produced using its process technologies are discovered post-sale[205]. - Compliance with environmental, health, and safety laws is costly and time-consuming, with potential liabilities exceeding total assets in case of violations[204]. - The company is subject to additional regulations and audits related to government grants, which could affect revenue and operational results[159]. Market and Competitive Landscape - The market values for monoethylene glycol (MEG) and polyethylene terephthalate (PET) are estimated at $24.8 billion and $41 billion, respectively, in 2023[33]. - The commercial success of the company may be influenced by the price of fossil feedstocks relative to waste-based feedstocks, which are subject to historical price fluctuations[165]. - The cost structure and gross margin of the company are highly dependent on the prices of waste-based feedstocks, which are cyclical and volatile[166]. - The company faces substantial indirect competition from firms with greater resources and brand recognition, which could adversely affect its market share[171]. - Technological advancements by competitors could render the company's technology and products obsolete or uneconomical[174]. Operational Challenges - Construction of commercial-scale plants is essential for projected financial performance, and any delays or cost overruns could severely impact the company's business and financial condition[149][150]. - The company must continuously reduce operating and capital costs for its facilities to ensure the adoption of its process technologies; failure to do so could harm its business prospects[152]. - The company continues to face significant risks associated with its international expansion strategy, including compliance with diverse legal environments and potential economic instability in foreign countries[147][148]. - The company may not successfully identify new market opportunities, limiting prospects and increasing dependency on a smaller number of target products[181]. Future Outlook and Strategic Direction - The company is focused on shifting its core operations from research and development to globally deploying its proven technology[117]. - The company is currently evaluating options to enhance its liquidity position with financing due to substantial doubt about its ability to continue as a going concern[127]. - A preliminary, nonbinding proposal was received from Carbon Direct Capital to acquire all outstanding shares of the company's common stock for $0.02 per share[118]. - The exploration of the potential take-private transaction has diverted management's time and attention, which may impact day-to-day business operations and results[133]. - The company expects to finalize commissioning of a commercial scale facility with IndianOil in the coming months[192].

Core Insights - LanzaTech Global, Inc. reported a significant decline in revenue for both the fourth quarter and full year of 2024 compared to 2023, primarily due to project completion and timing delays in large biorefining projects [3][4][5] Financial Results - Fourth-quarter 2024 revenue was $12.0 million, down from $20.5 million in the same quarter of 2023, while full-year revenue decreased to $49.6 million from $62.6 million [3][4][5] - Cost of revenue for the fourth quarter was $5.6 million, compared to $12.0 million in Q4 2023, leading to a gross profit of $6.5 million for Q4 2024 [7] - Operating expenses increased to $33.5 million in Q4 2024 from $27.1 million in Q4 2023, driven by project-related expenses [8] - The net loss for Q4 2024 was $27.0 million, compared to a net loss of $18.7 million in Q4 2023, with full-year net loss at $137.7 million versus $134.1 million in 2023 [9][10] Adjusted EBITDA - Adjusted EBITDA losses for Q4 2024 were $21.2 million, compared to $19.6 million in Q4 2023, with full-year adjusted EBITDA losses of $88.2 million versus $80.1 million in 2023 [10][29] Revenue Breakdown - Joint Development Agreement (JDA) and Contract Research revenue for Q4 2024 was $1.7 million, down from $4.2 million in Q4 2023, while CarbonSmart revenue increased to $3.9 million from $2.1 million in the same period [13] Balance Sheet and Liquidity - As of December 31, 2024, LanzaTech had $58.1 million in total cash and investments, a decrease from $89.1 million at the end of Q3 2024 [11] - Total assets decreased to $174.7 million from $241.6 million in 2023, with total liabilities increasing to $161.2 million from $127.2 million [21][22] Strategic Focus - The company is shifting its operational focus from research and development to global deployment, aiming to enhance its cost structure and liquidity through capital raising and strategic partnerships [5][8]

Financial Performance - LanzaTech reported total revenue of $12.0 million for the fourth quarter of 2024, down from $20.5 million in the same period of 2023, and full-year revenue of $49.6 million compared to $62.6 million in 2023, primarily due to project completions and timing delays in large projects [4][5] - The cost of revenue for the fourth quarter and full year of 2024 was $5.6 million and $26.0 million, respectively, compared to $12.0 million and $45.0 million for the same periods in 2023, resulting in a gross margin of 54% for Q4 2024 [6] - Operating expenses increased to $33.5 million for the fourth quarter and $132.6 million for the full year of 2024, compared to $27.1 million and $124.0 million in 2023, driven by project-related expenses [7] Net Loss and Adjusted EBITDA - The net loss for the fourth quarter of 2024 was $27.0 million, compared to a loss of $18.7 million in Q4 2023, with a full-year net loss of $137.7 million versus $134.1 million in 2023, attributed to non-cash expenses and reduced revenue [8] - Adjusted EBITDA losses were $21.2 million for Q4 2024 and $88.2 million for the full year, compared to losses of $19.6 million and $80.1 million in 2023, reflecting similar factors affecting revenue [9] Balance Sheet and Liquidity - As of December 31, 2024, LanzaTech had $58.1 million in total cash, restricted cash, and investments, down from $89.1 million at the end of Q3 2024 [10] - Total assets decreased to $174.7 million in 2024 from $241.6 million in 2023, with total liabilities increasing to $161.2 million from $127.2 million [17] Revenue Breakdown - Revenue from Joint Development Agreement (JDA) and Contract Research for Q4 2024 was $1.7 million, down from $4.2 million in Q4 2023, while CarbonSmart revenue increased to $3.9 million in Q4 2024 from $2.1 million in Q4 2023, driven by direct fuel sales [12][12] Strategic Focus - The company is shifting its operational focus from research and development to global deployment, aiming to enhance its cost structure and evaluate liquidity-enhancing initiatives [5][6]

Core Viewpoint - LanzaTech Global, Inc. has received a non-binding acquisition offer from Carbon Direct Capital Management at a price of $0.02 per share, and the Board of Directors will evaluate this proposal along with other strategic options to maximize stakeholder value [1][2]. Company Overview - LanzaTech Global, Inc. is a leading carbon recycling company that transforms waste carbon into sustainable fuels, chemicals, materials, and protein for everyday products. The company utilizes bio-recycling technology to capture carbon emissions from energy-intensive industries, preventing them from entering the atmosphere [3]. - The captured carbon is repurposed as a clean alternative to virgin fossil carbon in various products, including household cleaners, clothing fibers, packaging, and fuels. LanzaTech aims to promote a circular carbon economy through partnerships across the global supply chain [3].