Financial Data and Key Metrics Changes - The company announced a reduction in manufacturing output estimates by approximately 50-15% for 2026 and 2027 compared to prior estimates due to delays in cap former factory acceptance testing [19] - Updated revenue guidance for 2026 is now $20 million to $30 million, and for 2027, it is $100 million to $200 million, down from previous estimates of $50 million to $70 million and $150 million to $210 million respectively [20] - The company ended the quarter with $69 million in cash, cash equivalents, and marketable securities, alongside a net accounts receivable balance of $17.9 million [20][21] Business Line Data and Key Metrics Changes - The first Origin PET bottle caps are now on store shelves, marking a significant milestone for the company and the packaging industry [6] - The company is focusing on five large functional segments within the $65 billion caps and closures market, including water, carbonated soft drinks, other beverage applications, food and pharmaceutical, and other non-beverage segments [10] Market Data and Key Metrics Changes - The company is targeting a $7 billion segment for non-carbonated water caps and a $6 billion segment for carbonated soft drinks [10] - The packaging industry is described as highly commoditized and competitive, with a noted lack of innovation [9] Company Strategy and Development Direction - The company is conducting a strategic review with RBC Capital Markets to identify strategies that can enhance access to manufacturing capacity and strategic capital [10] - A refinement of the go-to-market strategy has been initiated to prioritize high-value opportunities within the caps and closures market [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs on production costs and the need for strategic partnerships to mitigate these challenges [18] - The company remains optimistic about its growth potential, citing strong interest in its products and ongoing customer relationships [42] Other Important Information - The company has established a partnership with Berlin Packaging, which will help extend market reach for its PET caps [12] - The company is expanding its manufacturing capacity in Europe to respond to tariff pressures and enhance production capabilities [15] Q&A Session All Questions and Answers Question: Where can investors buy the product to support it? - The product is available on shelves with a small brand, Power Hydration, located in California [27] Question: Who are the closest competitors and how does Origin compare? - The company's technology is differentiated from existing PET cap production methods, allowing for better unit economics and material properties [29][30] Question: What is the status of the NASDAQ listing? - The company is currently in a grace period to meet the minimum stock price requirement and is optimistic about regaining compliance [36][39] Question: What should investors be excited about for the future? - The company is excited about the market introduction of its PET bottle caps and ongoing customer announcements, alongside strategic growth opportunities [41][43]

Financial Highlights - Origin Materials projects revenue of $20 million to $30 million in 2026[8] and $100 million to $200 million in 2027[8, 15] - The company anticipates achieving Adjusted EBITDA positive run rate in 2027[8, 15] - Manufacturing lines are expected to have a payback period of less than 18 months[12, 13] Market and Demand - The total addressable market for Origin closures is greater than $65 billion[8, 32, 57] - The company is currently in the $7 billion water market segment[56, 57] and is qualifying for the $6 billion carbonated soft drink (CSD) market[57, 60] - Demand currently exceeds projected manufacturing capacity for the foreseeable future[6, 72] Manufacturing and Technology - Origin Materials commenced production on its first CapFormer line in February 2025[17, 60] - The company is on track to have 8 to 10 CapFormer lines in operation in 2026[15, 17] - Origin Materials has secured over 70 patents protecting its technology and products[9, 75]

[PART I. — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements and management's analysis of the company's financial performance and condition [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The company reported an increased net loss and decreased total assets, with significant 'going concern' risk due to funding needs [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$348.4 million** by June 30, 2025, driven by reduced cash and marketable securities, while equity declined due to net loss Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $35,295 | $56,307 | | Marketable securities | $34,106 | $46,613 | | Total current assets | $101,584 | $139,174 | | Property, plant, and equipment, net | $229,068 | $203,919 | | **Total assets** | **$348,377** | **$378,027** | | **Liabilities & Equity** | | | | Total current liabilities | $15,941 | $12,549 | | **Total liabilities** | **$37,251** | **$39,662** | | Accumulated deficit | ($77,315) | ($38,127) | | **Total stockholders' equity** | **$311,126** | **$338,365** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Total revenues decreased by **19%** to **$11.2 million**, resulting in an increased net loss of **$39.2 million** due to an asset impairment charge Statement of Operations Highlights (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $11,243 | $13,858 | | Loss from operations | ($47,589) | ($36,254) | | Impairment of assets | $16,610 | $0 | | **Net loss** | **($39,188)** | **($33,412)** | | Net loss per share, basic & diluted | ($0.27) | ($0.23) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to **$15.7 million**, though overall cash and equivalents decreased by **$21.0 million** to **$35.3 million** Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($15,733) | ($31,697) | | Net cash (used in) provided by investing activities | ($665) | $2,205 | | Net cash (used in) provided by financing activities | ($4,485) | $6,806 | | **Net decrease in cash and cash equivalents** | **($21,012)** | **($19,818)** | | **Cash and cash equivalents end of the period** | **$35,295** | **$55,684** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight a 'going concern' warning due to recurring losses and an accumulated deficit, alongside a **$16.6 million** asset impairment charge - The company has a 'going concern' warning due to its financial condition, including **$69.4 million** in cash and marketable securities, an accumulated deficit of **$77.3 million**, and recurring net losses. Management states these conditions raise substantial doubt about the company's ability to continue for the next twelve months[26](index=26&type=chunk) - During the first six months of 2025, the company recorded a **$16.6 million** impairment charge after terminating an agreement for materials conversion. This was related to discharging advance payments and future commitments under a take-or-pay agreement[44](index=44&type=chunk)[101](index=101&type=chunk) - The company is involved in a putative securities class action and two shareholder derivative complaints related to its August 9, 2023 announcement about delays in its Origin 2 project. The company cannot predict the outcome or financial impact at this preliminary stage[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The company has purchase commitments for equipment for its PET closures business totaling approximately **$22.4 million**, subject to milestone achievements. As of June 30, 2025, payments of **$27.1 million** had already been made[99](index=99&type=chunk) [Item 2. 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 decreased revenue, a strategic review for shareholder value, and reiterates the 'going concern' risk without additional financing - In August 2025, the Board initiated a broad strategic review to maximize shareholder value, considering alternatives such as a business combination, asset divestiture, technology licensing, merger, or sale of the company[121](index=121&type=chunk) - The company faces substantial doubt about its ability to continue as a going concern. Absent substantial additional financing by the end of 2025, management expects to begin scaling back or ceasing certain operations and reducing headcount[159](index=159&type=chunk)[162](index=162&type=chunk) - The company experienced delays in its CapFormer lines build-out due to slower subcomponent delivery and tariffs, leading to an expected substantial reduction in manufacturing output for 2026[127](index=127&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Revenues decreased **19%** to **$11.2 million**, while operating expenses rose **31%** due to a **$16.6 million** asset impairment charge Comparison of Six Months Ended June 30, 2025 and 2024 (in thousands) | Line Item | 2025 | 2024 | Variance $ | Variance % | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $11,243 | $13,858 | ($2,615) | (19)% | | Research and development | $6,579 | $10,211 | ($3,632) | (36)% | | General and administrative | $19,199 | $21,264 | ($2,065) | (10)% | | Impairment of assets | $16,610 | $0 | $16,610 | 100% | | Loss from operations | ($47,589) | ($36,254) | ($11,335) | 31% | | Net loss | ($39,188) | ($33,412) | ($5,776) | 17% | [Liquidity, Capital Resources and Going Concern](index=37&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Going%20Concern) The company holds **$69.4 million** in liquidity but faces substantial 'going concern' doubt, requiring significant additional capital for its growth strategy - The company's liquidity position as of June 30, 2025, was **$69.4 million** in cash, cash equivalents, and marketable securities[158](index=158&type=chunk) - Management has concluded there is substantial doubt about the company's ability to continue as a going concern for a period of twelve months from the issuance of the financial statements[159](index=159&type=chunk) - The company requires substantial additional project financing to execute its growth strategy, particularly for its PET closures manufacturing lines, and is evaluating strategies including equity, debt, and strategic partnerships[160](index=160&type=chunk)[162](index=162&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a 'smaller reporting company' and is therefore not required to provide the information requested under this item - As a 'smaller reporting company,' Origin Materials is not required to provide quantitative and qualitative disclosures about market risk[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[176](index=176&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the six months ended June 30, 2025[177](index=177&type=chunk) [PART II. — OTHER INFORMATION](index=41&type=section&id=PART%20II.%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and other miscellaneous disclosures relevant to the company's operations [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against a securities class action and shareholder derivative complaints related to Origin 2 project delays - The company is defending against a securities class action lawsuit and two shareholder derivative complaints related to its August 2023 announcement of delays to the Origin 2 project[106](index=106&type=chunk)[107](index=107&type=chunk)[179](index=179&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Key risks include 'going concern' doubt, history of losses, commercialization challenges, supply chain issues, and potential Nasdaq delisting - There is substantial doubt about the company's ability to continue as a going concern, and a failure to obtain necessary capital may force it to delay, limit, or terminate operations[180](index=180&type=chunk)[182](index=182&type=chunk) - The company has a history of losses, its future profitability is uncertain, and it has not yet produced any of its products in large commercial quantities[180](index=180&type=chunk)[187](index=187&type=chunk)[203](index=203&type=chunk) - The company's common stock is at risk of being delisted from Nasdaq for failing to meet the minimum **$1.00** bid price requirement, which could adversely affect liquidity and its ability to raise capital[184](index=184&type=chunk)[331](index=331&type=chunk) - International trade disputes and tariffs, particularly on goods from Europe and Switzerland, are increasing the cost of capital equipment (CapFormers) and could adversely affect the business[268](index=268&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reporting period - None[343](index=343&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[344](index=344&type=chunk) [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[345](index=345&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) General Counsel Joshua Lee's Rule 10b5-1 stock trading plan, initiated in September 2024, was terminated in June 2025 - On September 13, 2024, General Counsel Joshua Lee entered into a Rule 10b5-1 stock trading plan for the sale of up to **60,000** shares. This plan was terminated on June 9, 2025[346](index=346&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications

[Management Commentary and Strategic Update](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Update) CEO John Bissell highlights the commercial launch of Origin PET bottlecaps and a strategic review to accelerate value capture and address capacity gaps - The first Origin PET bottlecaps are now on store shelves, a world's first for the company, initially targeting the **$7 billion** non-carbonated water market[2](index=2&type=chunk) - Announced Berlin Packaging, the world's largest Hybrid Packaging Supplier®, as its first publicly named customer for PET 1881 caps[2](index=2&type=chunk)[6](index=6&type=chunk) - Launched a strategic review with financial advisor RBC Capital Markets to explore opportunities for enhancing manufacturing capacity, distribution, and access to strategic capital[3](index=3&type=chunk) - Refined its go-to-market strategy to prioritize five large market segments: water (**$7B**), carbonated soft drinks (**$6B**), other beverages (**$18B**), non-beverage food/pharma (**$20B**), and other non-beverage (**$17B**)[3](index=3&type=chunk) [Manufacturing and Supply Chain Update](index=2&type=section&id=Manufacturing%20and%20Supply%20Chain%20Update) The company faces manufacturing delays and increased capital needs due to tariffs, leading to a new European production partnership - Factory Acceptance Testing (FAT) completion for CapFormer lines two through eight is expected to be delayed by **30 to 90 days** due to OEM manufacturing and procurement issues[2](index=2&type=chunk)[6](index=6&type=chunk) - FAT for CapFormers seven and eight is now planned for the **second half of 2026**, revised from Q1 2026, primarily due to capital constraints and tariff exposure[6](index=6&type=chunk) - Announced a new European mass production partnership with Royal Hordijk to diversify manufacturing, expand its global footprint, and mitigate U.S. tariff impacts on European imports[6](index=6&type=chunk) - The company faces increased capital requirements due to tariffs on CapFormer subsystems sourced from Europe, with a **15% tariff** on EU imports and a **39% tariff** on Switzerland imports[7](index=7&type=chunk) [Revised 2026-2027 Financial Guidance](index=4&type=section&id=Revised%202026-2027%20Financial%20Guidance) Revised 2026-2027 revenue guidance and pushed Adjusted EBITDA breakeven to 2027 due to CapFormer delays Revised Guidance | Guidance Metric | Prior Guidance (Millions USD) | Updated Guidance (Millions USD) | | :--- | :--- | :--- | | **2026 Revenue** | $50M - $70M | $20M - $30M | | **2027 Revenue** | $150M - $210M | $100M - $200M | - The Adjusted EBITDA run-rate breakeven target has been pushed from **2026 into 2027** due to production delays[7](index=7&type=chunk) [Second Quarter 2025 Financial Performance](index=5&type=section&id=Results%20for%20Second%20Quarter%202025) Q2 2025 revenue decreased to $5.8 million, while net loss and Adjusted EBITDA loss significantly narrowed year-over-year Q2 Financial Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | | :--- | :--- | :--- | | Revenue | $5.8 million | $7.0 million | | Operating Expenses | $15.1 million | $18.5 million | | Net Loss | $12.7 million | $19.5 million | | Adjusted EBITDA Loss | $9.9 million | $12.9 million | - As of June 30, 2025, the company held **$69.4 million** in cash, cash equivalents, and marketable securities[8](index=8&type=chunk) - The company identified significant future cash sources, including the collection of **$17.9 million** in net accounts receivable and the sale of **$9.0 million** in land held for sale[8](index=8&type=chunk)[9](index=9&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section provides detailed unaudited condensed consolidated financial statements for the period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025 Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $101,584 | $139,174 | | Property, plant, and equipment, net | $229,068 | $203,919 | | **Total Assets** | **$348,377** | **$378,027** | | **Total Current Liabilities** | $15,941 | $12,549 | | **Total Liabilities** | $37,251 | $39,662 | | **Total Stockholders' Equity** | $311,126 | $338,365 | [Condensed Consolidated Statements of Operations](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) This section outlines the company's revenues, expenses, and net loss for the three months ended June 30, 2025, and 2024 Income Statement Summary | Income Statement Item (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $5,813 | $7,033 | | Total Operating Expenses | $15,148 | $18,464 | | Loss from Operations | $(14,966) | $(18,257) | | **Net Loss** | **$(12,747)** | **$(19,499)** | | **Net Loss Per Share, basic & diluted** | **$(0.09)** | **$(0.14)** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section details cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Cash Flow Summary | Cash Flow Item (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | $(15,733) | $(31,697) | | Net cash (used in) provided by investing activities | $(665) | $2,205 | | Net cash (used in) provided by financing activities | $(4,485) | $6,806 | | **Net decrease in cash and cash equivalents** | **$(21,012)** | **$(19,818)** | | **Cash and cash equivalents end of the period** | **$35,295** | **$55,684** | [Reconciliation of GAAP to Non-GAAP Measures](index=15&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP Net Loss to non-GAAP Adjusted EBITDA for the three months ended June 30, 2025, and 2024 GAAP to Non-GAAP Reconciliation | Reconciliation (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net loss (GAAP)** | **$(12,747)** | **$(19,499)** | | Stock-based compensation | $2,280 | $2,536 | | Depreciation and amortization | $2,782 | $2,813 | | Other adjustments | $(1,221) | $1,238 | | **Adjusted EBITDA (Non-GAAP)** | **$(9,904)** | **$(12,908)** |

Group 1 - FDCA is a high-value bio-based compound with a wide range of applications, serving as a substitute for terephthalic acid and enabling the production of high-performance bio-based polymers [2][8] - The synthesis routes for FDCA are diverse, with the HMF route being the most promising and showing significant progress towards industrial production [17][18] - The global FDCA market is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028, potentially reaching $873.28 million by 2028 [4][51] Group 2 - Internationally, several companies have achieved FDCA production, with significant investments made since 2004, including major players like Coca-Cola, DuPont, and Avantium [3][35] - Domestic research on FDCA began around 2010 and has rapidly advanced, with notable breakthroughs in synthesis and polymerization processes [3][41] - The domestic industry is still in its early stages of commercialization, but there is a growing number of patents and publications, indicating a strong research foundation [3][41] Group 3 - PEF, derived from FDCA and ethylene glycol, exhibits superior properties compared to PET, including higher mechanical strength and better gas barrier performance, making it a promising alternative [5][10] - The application areas for PEF include food packaging, films, and fibers, with significant potential for replacing PET in various markets [5][10] - The production of PEF is expected to expand, driven by the increasing demand for sustainable materials and the growth of the bio-based product market [5][51] Group 4 - Companies like Avantium and Eastman are leading the way in FDCA production technology, with Avantium's YXY technology being a notable example [36][39] - Domestic companies such as Hefei Lif Biological and Zhongke Guosheng are making strides in FDCA production, with innovative processes and significant production capacity planned for the near future [44][45] - The collaboration between research institutions and companies is fostering innovation and accelerating the commercialization of FDCA and its derivatives in China [41][44]

Investment Rating - The report maintains a rating of "Overweight" for the FDCA industry [7] Core Insights - FDCA is a high-value bio-based compound with a wide range of applications, particularly in the production of PEF, which has significant market potential [1][3][5] - The global FDCA market is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2021 to 2028, potentially reaching USD 873.28 million by 2028 [3] - PEF, derived from FDCA, exhibits superior properties compared to PET, making it a promising alternative in various applications [4][5] Summary by Sections FDCA Overview - FDCA is a bio-based aromatic monomer derived from biomass such as starch and cellulose, recognized as a suitable substitute for terephthalic acid [1][14] - The synthesis routes for FDCA include chemical and biological methods, with the HMF route being the most promising for industrialization [1][26][27] Domestic and International Development - Internationally, several companies have achieved FDCA production since 2004, while domestic efforts began around 2010 and are rapidly advancing [2][45][56] - Notable international players include Avantium, Corbion Purac, and DuPont, which have made significant strides in FDCA and PEF research and production [45][46][48] Market Potential and Applications - The FDCA market is projected to exceed USD 1.13 billion by 2031, driven by increasing demand for bio-based products [3] - PEF's applications span food packaging, films, and fibers, with its oxygen and carbon dioxide barrier properties significantly outperforming PET [4][18][19] Investment Recommendations - The report suggests focusing on companies involved in FDCA production, such as Tongkun Co., New Fengming, and Zhenhai Refining & Chemical [5][58][60]

Financial Data and Key Metrics Changes - The company expects to realize revenue of $50 million to $70 million in 2026 and $150 million to $210 million in 2027, reflecting a delay in commercial scale PET cap revenue generation by one to three quarters [9][19] - The company ended the quarter with $83 million in cash, cash equivalents, and marketable securities, indicating a strong balance sheet [20] Business Line Data and Key Metrics Changes - The company is commercializing its PET cap solution, which addresses a $65 billion cap closures market, with over 20 companies qualifying or preparing for qualification [6][13] - The qualification process for PET caps is taking longer than expected, with a typical journey now projected to take one to two years [10][12] Market Data and Key Metrics Changes - The company is facing challenges due to global manufacturing supply chain disruptions caused by tariffs and protectionist trade policies [13][14] - The company is diversifying its manufacturing footprint to minimize tariff exposure and ensure supply meets demand in different regions [17] Company Strategy and Development Direction - The company is focused on enabling the transition to sustainable materials and is committed to overcoming qualification challenges to bring PET caps to market [22][60] - The company is investing in supply chain preparedness and proactive inventory strategies to limit disruptions [15][16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about customer interest, with over 65 new inquiries in the last six weeks, and believes qualification challenges will be overcome [22][60] - The company is confident in its ability to achieve run rate positive adjusted EBITDA by the end of 2026, with a focus on scaling production [19][20] Other Important Information - The company has signed a strategic customer agreement with a major packaging company for the development of large format PET closures [6] - The company is exploring additional technology improvements to increase line throughput [18] Q&A Session All Questions and Answers Question: Why is your revenue declining further? - The company is operating OriginOne intermittently to supply customers with samples and develop internal process knowledge, turning down the operating rate to allocate cash more prudently [28] Question: Are there any specific issues faced in product qualification? - The qualification process has shown variability among customers, requiring iterative changes to meet performance standards [30][32] Question: Can you provide an update on EBITDA breakeven and higher CapEx due to tariffs? - The company has factored in a 10% tariff on equipment and does not expect it to materially impact the return on invested capital or the ability to stand up the planned lines [34] Question: What details can you provide on new caps available in Q3? - The new caps expected to be H-91 caps have been specified, but details on the specific region will be shared once they are in the market [35] Question: Any update on the sales process for the 83-acre lot in Geismar? - The company has sold 35 of the 80 acres and remains optimistic about the remaining portion [38] Question: What is the status of the $100 million MOU? - The MOU is still in place and will convert into a contract once the first lot of product is shipped post-qualification [51] Question: When will revenue realization begin? - Revenue ramp is expected to begin in mid-2026, with customers qualifying within one to three quarters [53][54] Question: How does the company plan to fund growth? - The company is engaged with multiple equipment lenders for financing and is also sourcing corporate debt to cover any balance needed [56][58] Question: What should investors be excited about in the future? - The company is excited about the strong demand for its caps, with significant customer interest and new agreements in the pipeline [60][61]

Financial Data and Key Metrics Changes - The company expects to realize revenue of $50 million to $70 million in 2026 and $150 million to $210 million in 2027, reflecting a delay in commercial scale PET cap revenue generation by one to three quarters [7][18] - The company reiterated guidance for achieving run rate positive adjusted EBITDA by the end of 2026 [18] - The company ended the quarter with $83 million in cash, cash equivalents, and marketable securities [19] Business Line Data and Key Metrics Changes - The company is commercializing its PET cap solution, which addresses a $65 billion cap closures market, with over 20 companies qualifying or preparing for qualification [5] - Customer product qualification is taking longer than expected, with a typical qualification journey for new caps now projected to take one to two years [6][9] - The company is confirming its first customer pilot launch remains on track for Q3 2025 [14] Market Data and Key Metrics Changes - The company is facing challenges due to global manufacturing supply chain disruptions caused by tariffs and protectionist trade policies [12] - The company is updating its Catformer deployment schedule in response to the current tariff environment [13] Company Strategy and Development Direction - The company is focused on diversifying its manufacturing footprint to minimize tariff exposure and is investing in supply chain preparedness [15] - The company is committed to bringing its PET caps to market and believes it can drive a meaningful transformation in packaging [12][21] - The company is exploring additional technology improvements to increase line throughput [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming qualification challenges and highlighted strong customer interest with over 65 new inquiries in the last six weeks [21] - The company remains focused on its mission to enable the transition to sustainable materials and is excited about future developments [22] Other Important Information - The company is making strategic adjustments to its deployment plan to factor in geographic diversification [15] - The company has sold 35 of the 80 acres of land in Geismar and remains optimistic about future transactions [37] Q&A Session Summary Question: Why is revenue declining further? - Management clarified that OriginOne is being operated intermittently to supply customers with samples and develop internal knowledge, leading to a reduced operating rate [27] Question: Are there any specific issues faced in product qualification? - Management noted variability in customer testing processes and the need for iterative design changes to meet customer performance standards [30][31] Question: Can you provide an update on EBITDA breakeven and higher CapEx due to tariffs? - Management indicated that current tariffs are factored into estimates and do not materially impact the return on invested capital [33] Question: What is the status of the $100 million MOU? - Management confirmed the MOU is still in place and will convert into a contract post-qualification [51] Question: When will revenue realization begin? - Management expects revenue ramp to begin in mid-2026 as customers complete their qualification processes [54] Question: How does the company plan to fund growth? - Management is engaged with multiple equipment lenders for financing and is confident in avoiding equity markets unless absolutely necessary [59] Question: What should investors be excited about in the future? - Management highlighted strong demand, ongoing customer engagement, and upcoming pilot launches as key positive indicators [62]

Financial Projections - Origin Materials projects revenue of $50 million to $70 million in 2026[8, 15] - The company anticipates revenue of $150 million to $210 million in 2027[8, 15] - Adjusted EBITDA is projected to be positive on a run-rate basis by the end of 2026[8, 15] Market and Technology - The total addressable market for Origin closures is greater than $65 billion[8, 31] - Origin Materials has developed proprietary technology for 100% PET caps and closures[6, 58] - The company has secured over 70 patents protecting its technology and products[9, 61] Manufacturing and Operations - Origin commenced production of its first CapFormer line in February 2025[17, 50] - The company is aiming to have 8 to 10 CapFormer lines operating in 2026[15, 17] - The payback period for the manufacturing lines is expected to be less than 18 months[8, 12]

Financial Performance - Total revenues for Q1 2025 were $5,430,000, a decrease of 20.5% compared to $6,825,000 in Q1 2024[16]. - Net loss for Q1 2025 was $26,441,000, compared to a net loss of $13,913,000 in Q1 2024, representing an increase in loss of 90.5%[16]. - Operating expenses in Q1 2025 totaled $32,736,000, up 80.6% from $18,135,000 in Q1 2024, primarily due to increased research and development costs[16]. - Loss from operations for the three months ended March 31, 2025, was $32.62 million, compared to a loss of $17.99 million in the prior year[94]. - The company reported a net loss of $26.4 million for the three months ended March 31, 2025, compared to a net loss of $13.9 million for the same period in 2024, resulting in a basic and diluted net loss per share of $0.18[108]. Cash and Assets - Cash and cash equivalents decreased to $43,835,000 as of March 31, 2025, down from $56,307,000 at the end of 2024, a decline of 22.2%[13]. - Total assets decreased to $348,977,000 as of March 31, 2025, down from $378,027,000 at the end of 2024, a reduction of 7.7%[13]. - Total current assets decreased to $119,509,000 as of March 31, 2025, down from $139,174,000 as of December 31, 2024, a decline of 14.1%[14]. - The company’s total liabilities decreased to $34,369,000 as of March 31, 2025, down from $39,662,000 at the end of 2024, a decline of 13.0%[13]. - The total stockholders' equity as of March 31, 2025, was $314,608,000, down from $338,365,000 at the end of 2024, a decrease of 7.0%[14]. Research and Development - Research and development expenses for Q1 2025 were $3,301,000, a decrease of 43.3% from $5,819,000 in Q1 2024[16]. - The company recorded an impairment charge of $16,610 thousand during the three months ended March 31, 2025, related to long-lived assets[41]. - The company received zero funding under the Canadian government R&D program for the three months ended March 31, 2025, compared to $8.1 million received in the same period in 2024, marking a decrease of 100%[77]. Revenue Recognition - Revenue is recognized upon shipment for product sales, while service agreements generate revenue over the period services are performed[58]. - The Company’s revenue recognition follows ASC 606, ensuring that revenue reflects the consideration expected in exchange for goods or services[45]. - The Company has zero deferred revenue for the three months ended March 31, 2025, as it did not receive payment before the provision of services[59]. Marketable Securities - The Company recorded a total fair value of $69,564,000 for its financial assets as of March 31, 2025, which includes $30,351,000 in cash equivalents and $39,213,000 in marketable securities[60]. - The company sold marketable securities for proceeds of $282.4 million during the three months ended March 31, 2025, realizing a loss of $0.1 million, consistent with the loss reported for the same period in 2024[66]. - The aggregate fair value of marketable securities in an unrealized loss position was $23.0 million as of March 31, 2025, down from $26.6 million as of December 31, 2024, indicating a reduction of approximately 13.5%[66]. Stock and Equity - The weighted-average common shares outstanding for Q1 2025 were 146,852,340, an increase from 141,828,895 in Q1 2024[16]. - The total remaining compensation expense for RSU awards to be recognized under the 2021 Equity Incentive Plan is $12.6 million, expected to be recognized over an estimated weighted average period of 1.4 years[90]. - The company has 1,058,231 options to purchase common stock and 2,124,255 performance-based stock awards outstanding as of March 31, 2025, which are excluded from diluted net loss per share calculations[109]. Legal and Compliance - The company is currently facing litigation related to a securities class action and derivative complaints, which may have uncertain financial impacts[106][107]. - The Company is involved in derivative complaints filed by shareholders against current and former directors, which may lead to unspecified damages and governance changes[107]. Business Developments - The company completed the mechanical construction of its first furanics manufacturing plant in Ontario, Canada, which is currently operating on demand[25]. - Origin announced its PET closures business in August 2023, with mass production partnerships established in Europe and North America[24]. - The first PET closure manufacturing system, "CapFormer," successfully completed its Factory Acceptance Test in September 2024[24].