[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].

First Quarter 2025 Operating and Financial Results [Overview and Key Highlights](index=1&type=section&id=Overview%20and%20Key%20Highlights) Origin Materials announced a strategic customer agreement for PET closures, but customer qualification delays and supply chain uncertainties defer commercial-scale revenue, leading to updated 2026 and 2027 guidance while reiterating run-rate Adjusted EBITDA positive by late 2026 - Announced a signed strategic customer agreement with a major packaging company for the development of large format PET closures for the ready to drink, wine, and spirits market[1](index=1&type=chunk)[2](index=2&type=chunk)[5](index=5&type=chunk) - Customer product qualification is taking longer than projected, leading to a deferral of commercial-scale PET cap revenue generation by **one to three quarters**[2](index=2&type=chunk) Updated Revenue and Profitability Guidance | Guidance Metric | Updated Forecast | | :--- | :--- | | 2026 Revenue | $50 million to $70 million | | 2027 Revenue | $150 million to $210 million | | Run-Rate Adjusted EBITDA Positive | By the back end of 2026 | [Business and Operational Updates](index=2&type=section&id=Business%20and%20Operational%20Updates) The company reports robust customer interest and pilot launch progress for PET caps, with CapFormer lines 5-8 production now expected in 1H 2026, alongside strategic efforts to diversify manufacturing and secure financing - Over twenty companies are qualifying or preparing to qualify Origin PET caps, including **six Fortune 500 companies**; customer interest remains strong with over **sixty-five new inquiries** in the last six weeks[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - The first customer pilot launch of beverages with PET closures is confirmed to be on track for **Q3 2025** in the United States[5](index=5&type=chunk)[6](index=6&type=chunk) - CapFormer lines five through eight are now estimated to begin PET cap production in the **first half of 2026**, with factory acceptance testing expected in **Q4 2025** and **Q1 2026**[1](index=1&type=chunk)[5](index=5&type=chunk) - The company is pursuing both equipment financing for CapFormer lines and corporate debt in the **second half of 2025** to maintain a healthy cash balance[8](index=8&type=chunk) - Strategic adjustments include diversifying the manufacturing footprint to minimize tariff exposure and investing in owned PET extruders to improve line margins[8](index=8&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) For Q1 2025, revenue decreased to $5.4 million from $6.8 million year-over-year due to a planned supply chain reduction, resulting in a wider net loss of $26.4 million primarily from a $16.6 million non-cash asset impairment, though Adjusted EBITDA loss improved to $11.0 million, with cash and equivalents at $83.0 million Q1 2025 Financial Highlights (vs. Q1 2024, in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $5.4 | $6.8 | | Operating Expenses | $32.7 | $18.1 | | Net Loss | $(26.4) | $(13.9) | | Adjusted EBITDA Loss | $(11.0) | $(12.9) | | Net Loss Per Share | $(0.18) | $(0.10) | - Cash, cash equivalents and marketable securities were **$83.0 million** as of March 31, 2025[7](index=7&type=chunk) - The increase in operating expenses was primarily driven by a **$16.6 million** non-cash impairment charge related to a biomass conversion technology contracting manufacturing agreement[9](index=9&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $349.0 million from $378.0 million at year-end 2024, primarily due to reduced cash, cash equivalents, and marketable securities, while total liabilities also decreased to $34.4 million from $39.7 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $43,835 | $56,307 | | Total current assets | $119,509 | $139,174 | | Total assets | $348,977 | $378,027 | | Total current liabilities | $12,572 | $12,549 | | Total liabilities | $34,369 | $39,662 | | Total stockholders' equity | $314,608 | $338,365 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q1 2025, total revenues were $5.4 million, down from $6.8 million year-over-year, with a significant $16.6 million asset impairment charge leading to a $32.6 million loss from operations and a $26.4 million net loss, compared to a $13.9 million net loss in Q1 2024 Statement of Operations Summary (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenues | $5,430 | $6,825 | | Loss from operations | $(32,623) | $(17,997) | | Net loss | $(26,441) | $(13,913) | | Net loss per share, basic & diluted | $(0.18) | $(0.10) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities significantly improved to $8.4 million from $16.7 million in Q1 2024, with net cash provided by investing activities at $0.5 million and financing activities using $4.5 million, resulting in a $12.5 million net decrease in cash and cash equivalents for the quarter Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(8,439) | $(16,735) | | Net cash provided by investing activities | $540 | $9,335 | | Net cash (used in) provided by financing activities | $(4,542) | $6,648 | | Net (decrease) increase in cash | $(12,472) | $271 | | Cash and cash equivalents, end of period | $43,835 | $75,773 | Other Information [Reconciliation of GAAP and Non-GAAP Results](index=12&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) The company reconciled its GAAP net loss of $26.4 million to a non-GAAP Adjusted EBITDA loss of $11.0 million for Q1 2025, an improvement from Q1 2024's $12.9 million loss, with major adjustments including a $16.6 million asset impairment, stock-based compensation, and depreciation & amortization Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss (GAAP)** | **$ (26,441)** | **$ (13,913)** | | Impairment of assets | 16,610 | — | | Stock-based compensation | 2,289 | 2,781 | | Depreciation and amortization | 2,714 | 2,311 | | Other adjustments (net) | (1,182) | (4,084) | | **Adjusted EBITDA (Non-GAAP)** | **$ (11,010)** | **$ (12,905)** | [Cautionary Note on Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) This section warns investors that the press release contains forward-looking statements regarding business strategy, financial projections, and operational timelines, which are subject to significant risks and uncertainties, including commercialization challenges, competition, and tariffs, that could cause actual results to differ materially - Forward-looking statements include projections on business strategy, revenue potential, achieving positive run-rate Adjusted EBITDA by the **end of 2026**, and CapFormer deployment timelines[21](index=21&type=chunk) - These statements are subject to risks and uncertainties such as the inability to successfully commercialize products, effects of competition and tariffs, and the uncertainty of financial projections[22](index=22&type=chunk)

Core Viewpoint - Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against Origin Materials, Inc. regarding alleged false statements about the development of a manufacturing plant, which was initially set to be completed by mid-2025 [1] Group 1: Legal Proceedings - A U.S. District Court judge has allowed a securities class action complaint against Origin to proceed, alleging that the company misled investors about the production focus and timeline of its new manufacturing plant, Origin 2, between February 2023 and August 2023 [2] - The lawsuit claims that these misleading statements inflated Origin's stock price, which subsequently fell by 67% when the delay and change in production plans were revealed in August 2023 [2] Group 2: Company Actions - The investigation by Schubert Jonckheer & Kolbe LLP is focused on potential wrongdoing by Origin's directors and officers in relation to the allegations of misleading investors [3]