cgdeaw/iStock via Getty Images PCT a recap of the business IronTon Progress is a big positive PCT conducted a site tour, and the CEO shared a lot of information as he walked around. A recording of the tour is on the PCT website. Technical Progress PCT Finances My concerns with PCT operations have been reduced. I now believe they will solve the technological problems, and they have proven that the IronTon site can operate at high volume and produce high-quality output. They still have issues to resolve but I ...

Core Viewpoint - The investment outlook for PureCycle Technologies, Inc. has shifted from a buy recommendation to a hold due to concerns over management execution and deteriorating financials [1][13]. Industry Overview - The polypropylene (PP) market is substantial, with an annual input of 170 billion pounds, expected to grow at a 3.5% CAGR through FY27. However, only 5% of PP is recycled annually, indicating a significant technology gap in efficient recycling [2]. Company Performance - Since the last analysis, PureCycle's stock has increased by nearly 40%, outperforming small-cap peers by almost 2x [3]. - The company's primary recycling facility, Ironton, has a potential capacity of 107 million pounds per year but has faced operational challenges, delaying full operations initially expected by the end of 2023 to "later in 2024" [4][5]. Operational Challenges - Ironton has encountered mechanical issues, including seal failures and leaking beads, leading to production delays and reliability concerns [5][6]. - The company struggles with removing co-product 2 from feedstock, which can range from 2-15% but has been as high as 10-15%, complicating the recycling process [7]. Financial Health - PureCycle's unrestricted cash balance has decreased significantly, from over $200 million to just $27.2 million, indicating a precarious financial situation [8]. - Operating cash outflow reached a record -$39 million in Q1, with additional capital expenditures of $12.5 million for Ironton and $47 million for the Augusta facility anticipated [9][10]. - The company may need to rely on revenue bonds for funding, contingent on Ironton's ability to produce meaningful volumes [11]. Revenue Projections - Revenue expectations have been revised downward, with forecasts for FY24 sales now at $36 million, significantly lower than previous estimates of $103 million, while FY25 projections are around $126 million [12]. Market Position - At a stock price of $5.60, PureCycle is positioned in the middle of a long-term descending channel, suggesting a balanced risk-reward scenario [14]. - The company may attract interest from aggressive investors due to its relative underperformance compared to other material stocks, with a current relative strength ratio at half its long-term average [15]. - There is potential for short covering momentum, as 29% of the float is short, with days to cover exceeding 25 [16].

PART I - Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Net loss significantly increased to **$85.6 million** in Q1 2024, driven by higher operating costs, interest expense, and a **$21.2 million** debt extinguishment loss [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$734.0 million** from **$1.04 billion** at year-end 2023, primarily due to reduced cash and debt extinguishment, impacting equity Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2024 (Unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $25,021 | $73,411 | | Total current assets | $51,171 | $162,645 | | Property, plant and equipment, net | $642,017 | $638,746 | | **TOTAL ASSETS** | **$734,015** | **$1,039,373** | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $43,570 | $55,610 | | Long-term debt, less current portion | $242,937 | $467,708 | | **TOTAL LIABILITIES** | **$397,176** | **$619,137** | | **TOTAL STOCKHOLDERS' EQUITY** | **$336,839** | **$420,236** | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Net loss surged to **$85.6 million** in Q1 2024, driven by a **$21.2 million** debt extinguishment loss, higher operating costs, and increased interest expense Statements of Comprehensive Loss (in thousands, except per share data) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Operating costs | $21,194 | $7,372 | | Total operating costs and expenses | $38,982 | $21,821 | | Interest expense | $15,054 | $657 | | Change in fair value of warrants | $13,944 | $4,835 | | Loss on debt extinguishment | $21,214 | $— | | **Net Loss** | **$(85,607)** | **$(25,842)** | | **Loss per share (Basic & Diluted)** | **$(0.52)** | **$(0.16)** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased from **$420.2 million** to **$336.8 million** in Q1 2024, primarily due to the **$85.6 million** net loss - The company's accumulated deficit grew from **$(344.2) million** to **$(429.8) million** during the first quarter of **2024**, reflecting the net loss of **$85.6 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$39.2 million** in Q1 2024, with **$255.4 million** used in financing, resulting in a **$262.6 million** net cash decrease Summary of Cash Flows (in thousands) | | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39,178) | $(14,755) | | Net cash provided by investing activities | $32,027 | $52,739 | | Net cash used in financing activities | $(255,423) | $(1,632) | | **Net (decrease) increase in cash and restricted cash** | **$(262,574)** | **$36,352** | | Cash and restricted cash, end of period | $39,940 | $263,875 | [Notes to the Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial condition, debt, and legal matters, addressing going concern doubts and a major **99%** Revenue Bond extinguishment - The company's financial statements have been prepared assuming it will continue as a going concern, but recurring losses and negative cash flows raise substantial doubt, which management believes its plans, including the ability to re-market purchased bonds, alleviate[34](index=34&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - On March **5**, **2024**, a subsidiary purchased **99%** of the outstanding Revenue Bonds, accounted for as a debt extinguishment, resulting in a **$21.2 million** loss[67](index=67&type=chunk) - Subsequent to quarter-end, the company reached a tentative settlement in the Consolidated Theodore Lawsuit for **$12 million** and a separate MOU to settle derivative lawsuits for **$3 million**, both to be funded primarily by D&O insurance[186](index=186&type=chunk)[187](index=187&type=chunk) - On May **7**, **2024**, the company agreed to sell approximately **$94.3 million** in par value of its repurchased bonds to Pure Plastic LLC, with consideration including full prepayment of a **~$45.5 million** term loan and **$30 million** in cash[191](index=191&type=chunk)[192](index=192&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Ironton Facility delays, Augusta facility plans, and Q1 2024 net loss of **$85.6 million**, addressing going concern doubts [Overview of Operations](index=36&type=section&id=Overview%20of%20Operations) The company's Ironton Facility faces mechanical challenges delaying full production, while Augusta facility plans proceed amid financing uncertainty - The Ironton Facility has commenced pellet production but is experiencing intermittent mechanical challenges that are delaying it from reaching consistent, sustainable production rates, with full operation expected later in **2024**[205](index=205&type=chunk)[208](index=208&type=chunk) - The Augusta, GA facility is planned to have up to eight production lines with a total capacity of **1 billion** pounds per year, with approximately **$88.0 million** invested in pre-construction and long-lead equipment for Phase One as of March **31**, **2024**[210](index=210&type=chunk)[211](index=211&type=chunk) - The company is pursuing project financing for the Augusta Facility but is limiting expenses and adjusting its timeline due to challenging market conditions and uncertainty[216](index=216&type=chunk) - Future international expansion includes a planned facility in Antwerp, Belgium, and a joint venture with SK geo centric for a facility in Ulsan, South Korea[225](index=225&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Total operating costs and expenses increased **79%** to **$39.0 million** in Q1 2024, driven by higher operating costs and a **$21.2 million** debt extinguishment loss Comparison of Operating Results (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Operating costs | $21,194 | $7,372 | $13,822 | 187% | | Selling, general and administrative | $15,957 | $12,695 | $3,262 | 26% | | Total operating costs and expenses | $38,982 | $21,821 | $17,161 | 79% | | Interest expense | $15,054 | $657 | $14,397 | 2,192% | | Loss on debt extinguishment | $21,214 | $— | $21,214 | 100% | | **Net loss** | **$(85,607)** | **$(25,842)** | **$(59,765)** | **231%** | - The increase in operating costs was primarily due to **$7.9 million** in higher depreciation as the Ironton Facility assets were placed in service, and **$4.3 million** in increased operational site costs[232](index=232&type=chunk) - Interest expense surged due to new financing in **2023** (including **$250M** in green convertible notes) and the cessation of interest capitalization for the Ironton Facility[235](index=235&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company had **$25.0 million** in cash as of March 31, 2024, with management addressing going concern doubts through bond re-marketing plans Liquidity Summary (in millions) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $25.0 | $73.4 | | Debt Securities Available for Sale | $2.2 | $48.2 | | Restricted Cash | $14.9 | $229.1 | | Gross Long-term Debt and Related Party Note Payable | $318.3 | $564.2 | - Management believes its current unrestricted liquidity is insufficient to fund operations and future growth, raising substantial doubt about its ability to continue as a going concern[248](index=248&type=chunk) - To alleviate liquidity concerns, the company purchased **99%** of its outstanding Revenue Bonds, reducing restricted cash and providing the ability to re-market these bonds for future liquidity needs[249](index=249&type=chunk) Cash Flow Summary (in thousands) | | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(39,178) | $(14,755) | | Net cash provided by investing activities | $32,027 | $52,739 | | Net cash used in financing activities | $(255,423) | $(1,632) | [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures have occurred since the most recent Annual Report on Form 10-K - Information about market risks as of March **31**, **2024**, does not materially differ from that included in the company's most recent Annual Report on Form **10-K**[279](index=279&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of March **31**, **2024**[281](index=281&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of **2024**[282](index=282&type=chunk) PART II - Other Information [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are detailed in Note 11, with management not expecting a material adverse effect on financial position or results - For a description of legal proceedings, the report refers to Note **11**, "Commitments and Contingencies," in the financial statements[285](index=285&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the most recent Annual Report on Form 10-K - No material changes from risk factors previously disclosed in the most recent Annual Report on Form **10-K** have been reported[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **98,651** common shares at an average price of **$6.07** per share in Q1 2024 for tax withholding obligations Purchases of Equity Securities by the Issuer | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | January 1 to January 31 | — | $— | | February 1 to February 29 | — | $— | | March 1 to March 31 | 98,651 | $6.07 | | **Total** | **98,651** | **$6.07** | [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) PCT LLC agreed to sell **$94.3 million** in repurchased Revenue Bonds, repaying a **$45.5 million** loan and receiving **$30 million** cash - On May **7**, **2024**, PCT LLC agreed to sell **~$94.3 million** in par value of its held Revenue Bonds to Pure Plastic LLC[297](index=297&type=chunk) - The transaction will result in the full payoff of a **~$45.5 million** term loan and provide PCT LLC with **$30 million** in cash[298](index=298&type=chunk) - In connection with the deal, the company will issue Series B Warrants to Pure Plastic, allowing the purchase of **~3.1 million** common shares at **$11.50** per share[302](index=302&type=chunk)[307](index=307&type=chunk)

Exhibit 99.1 PureCycle Technologies Provides First Quarter 2024 Update Orlando, Fla. – May 7, 2024, – PureCycle Technologies, Inc. (Nasdaq: PCT), a U.S.-based company revolutionizing plastic recycling, today, announced a corporate update for the first quarter ending March 31, 2024. Management Commentary PureCycle Chief Executive Officer Dustin Olson said, "We had a productive quarter in Ironton and were able to start providing existing and future customers with resin from the commercial facility, so they co ...

Financial Data and Key Metrics Changes - Unrestricted cash declined by just under $90 million during Q4 2023, primarily due to a $50 million increase in the general liquidity reserve as part of the second amendment to the Ironton revenue bond [24] - Operating corporate-related expenses were $27.5 million for Q4, adjusted for severance related to a previously announced reduction in force, aligning with expectations [52] - The company increased its line of credit from $150 million to $200 million to rebuild liquidity post-bond repurchase [54] Business Line Data and Key Metrics Changes - Pellet production increased five times from 200,000 pounds to 1.3 million pounds, with a single-day feed record of 102,000 pounds and a single-day palletization record of 144,000 pounds [11] - CP2 production increased from 16,000 pounds to 48,000 pounds from January to February 2024 [40] - The company achieved end-to-end production rates of approximately 8,000 pounds per hour, successfully producing significant quantities of co-products [55] Market Data and Key Metrics Changes - There is stronger demand for the company's product than originally expected, with a shorter supply of good quality competition [17] - The company is seeing positive market feedback for its product, which offers a true plastic-to-plastic solution with benefits that other technologies do not provide [47] Company Strategy and Development Direction - The company plans to focus on core operations to achieve higher continuous plant rates and drive more consistent product quality [10] - A Q2 outage is planned to implement reliability improvements, which is expected to significantly impact operational performance [41] - The company is transitioning into traditional manufacturing processes, improving reliability, and optimizing operations [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future fundamentals of the business, particularly post-Q2 outage [106] - The company is confident in its ability to source feedstocks and does not foresee long-term constraints in availability [69] - Management highlighted the importance of building a strong foundation for the plant to ensure long-term productivity [91] Other Important Information - The company successfully purchased around 99% of the $249 million Southern Ohio Court Authority revenue bonds, removing restrictive covenants and allowing for better operational focus [25] - The company is working on a project to flake sort material produced from the prep wet line to process more post-consumer curbside material [44] Q&A Session Summary Question: How challenging is it to engineer around CP2? - Management acknowledged that CP2 presents a challenging technical problem but believes a good design solution is in place for development in Q2 [29] Question: Is there a challenge in sourcing feedstock with lower CP2 content? - Management confirmed that they have a good feedstock network and do not expect sourcing to be a long-term constraint [59] Question: What is the expected run rate for SG&A? - Management indicated that SG&A is higher than previous estimates due to global volatility and inflation, but they are consistently looking for optimization opportunities [61] Question: Are there any embedded dates in offtake agreements that could affect customer patience? - Management reassured that there is strong demand for the product and core customers are still engaged in testing commercial scale products [64] Question: What is the latest on the Augusta project? - Management confirmed that the Augusta project is moving forward and integrating learnings from Ironton into the design [71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________ FORM 10-K _______________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40234 _______________________________ PureCycle Technologies, Inc. (Exact ...

Financial Results - PureCycle Technologies reported financial results for Q4 and fiscal year ended December 31, 2023, on March 5, 2024[6]. - The press release detailing the financial results is attached as Exhibit 99.1[8]. Investor Relations - The company plans to present its investor slide presentation on March 6, 2024, which may be used in various other investor presentations[7].

PureCycle Technologies, Inc. (NASDAQ:PCT) Q3 2023 Earnings Conference Call November 8, 2023 11:00 AM ET Company Participants Charlie Place - Director, Investor Relations Dustin Olson - CEO Lawrence Somma - CFO Conference Call Participants Jason Vernoff - Oppenheimer & Company Hassan Ahmed - Alembic Global Advisors Eric Stine - Craig Hallum Gerry Sweeney - ROTH Capital Thomas Boyes - TD Cowen Jeffrey Campbell - Seaport Research Partners Operator Good day, and thank you for standing by. Welcome to the PureCyc ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from to Commission File Number: 001-40234 PureCycle Technologies, Inc. (Exact name of registrant as specified in its charter) Delaware 86-2293091 (State or oth ...

PureCycle Technologies, Inc. (NASDAQ:PCT) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET Company Participants Charlie Place - Director, Investor Relations Dustin Olson - Chief Executive Officer Dan Coombs - Executive Chairman Larry Somma - Chief Financial Officer Conference Call Participants Hassan Ahmed - Alembic Global Advisors Noah Kaye - Oppenheimer & Co. Aadit Shrestha - Stifel Eric Stine - Craig-Hallum Gerry Sweeney - ROTH Capital Thomas Boyes - TD Cowen\ Operator Good day and thank you f ...