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 ...

Financial Data and Key Metrics Changes - The company ended the quarter with over $366 million in cash and available liquidity, including $150 million of unused borrowing capacity on its line of credit [29] - Cash used during the quarter was $12.5 million for normal corporate operations, including insurance and working capital for the Ironton start-up [30] - Corporate and preoperational employee cash used was $9.9 million during the second quarter, an increase from the prior quarter due to delayed payment of 2022 bonuses [48] Business Line Data and Key Metrics Changes - The PreP operations have achieved improved reliability and efficiency, with all technology tested and commissioned [19] - Utilities have been fully commissioned and achieved benchmark rates, which are essential for operations [20] - The purification process has been tested and is functioning well, with minor mechanical issues that do not impact overall operations [99] Market Data and Key Metrics Changes - The company has over 10 million pounds of feedstock in inventory, with about 50% prepared for purification [18] - The polypropylene market has seen a decline this year compared to previous years, which the company is monitoring [133] Company Strategy and Development Direction - The company is focused on expanding its operations in Augusta and Europe, with plans to close the permitting process in Antwerp by 2024 [27] - The technology risk has been removed with the successful production of pellets at commercial scale, setting the stage for global growth [87] - The company aims to optimize capital projects and reduce costs while increasing efficiency in future plants [16][148] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the ability to predict future performance, indicating that the majority of technical challenges have been resolved [40][143] - The team has demonstrated exceptional capability in addressing issues during the commissioning phase, which is expected to lead to faster startup times for future projects [111][127] - The company anticipates strong demand for its product, particularly due to improved odor performance, which could open new market opportunities [130][113] Other Important Information - The company closed two non-dilutive financing transactions for a net amount of $47.6 million during the quarter [29] - The Augusta Economic Development Authority approved the financing plan for one line in Augusta, facilitating the next steps in project development [106] Q&A Session Summary Question: Can you discuss the performance of the commercial scale facility relative to the FEU? - The commercial scale facility is performing better than the FEU, with several design improvements leading to enhanced product quality [113] Question: What is the current run rate and expectations for ramping up production? - The company is currently touching 40% to 45% capacity and anticipates pushing above 50% in August [39] Question: How does the company view the marketability of its product? - Management feels confident about the product's marketability and anticipates interest in markets not traditionally pursued [38] Question: What are the key milestones and timelines for future projects? - The company expects to ramp above 50% capacity soon and aims to complete performance tests in September or October [142] Question: Are there any remaining technology issues from startup? - While some minor issues remain, the core technology is functioning well, and the team is confident in their ability to address any future challenges [143]

TM Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of PCT prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All subsequent written and oral forward-looking statements or other matters attributable to PCT or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Presentation. Except to th ...

Production Capacity and Facilities - PCT's Ironton Facility is expected to achieve a production capacity of approximately 107 million pounds of ultra-pure recycled (UPR) resin per year when fully operational, with initial production commencing in 2023 and full capacity expected by early 2024[234]. - The Augusta Facility is projected to have a total UPR resin production capacity of approximately 1 billion pounds per year, with each purification line expected to produce around 130 million pounds annually[239]. - PCT is evaluating alternative preprocessing sites in Central Florida and has signed a lease for a future PreP facility in Denver, Pennsylvania, expected to be operational in the first half of 2024[247]. - The Ironton Facility is expected to reach a nameplate production capacity of 107 million pounds per year by January 31, 2024[289]. Financial Performance and Revenue - The company has not generated any operating revenue to date but expects to begin generating revenue in 2023 with the commercial operation of the Ironton Facility[254]. - For the three months ended June 30, 2023, operating costs increased to $14,023,000, a 117% increase from $6,449,000 in 2022[259]. - The total operating costs and expenses for the six months ended June 30, 2023, were $49,622,000, reflecting a 28% increase from $38,787,000 in 2022[259]. - The net loss for the three months ended June 30, 2023, was $56,576,000, a 277% increase compared to a net loss of $15,004,000 in 2022[259]. - The company anticipates generating revenue from its commercial plant in Ironton in 2023[267]. Investments and Financing - As of June 30, 2023, PCT anticipates an additional investment of approximately $10.0 million to $22.5 million to complete the Ironton Facility, influenced by various contract contingencies[235]. - PCT has invested approximately $74 million for pre-construction engineering and long-lead equipment for the Augusta Facility, with a commitment to create 82 full-time jobs and invest at least $440 million by December 31, 2026[240]. - The company has capital commitments of approximately $13.3 million related to the Augusta Facility and $15.8 million for future facilities[273]. - On March 15, 2023, PCT entered into a $150 million Revolving Credit Facility, which matures on March 31, 2025, to support working capital and capital expenditures[298]. - PCT entered into a $40 million term loan facility maturing on December 31, 2025, to be used for repaying indebtedness and general corporate purposes[308]. Cash Flow and Liquidity - As of June 30, 2023, the company had $28.9 million in available unrestricted liquidity, down from $162.5 million in 2022[269]. - Cash and cash equivalents at the end of the period were $216,328,000, a 24% decrease from $285,050,000 in 2022[279]. - Net cash used in operating activities for the six months ended June 30, 2023, was $40,424,000, a 15% increase from $35,090,000 in 2022[279]. Strategic Partnerships and Development - PCT is pursuing a joint venture with SK geo centric Co., Ltd. to develop a UPR purification facility in Ulsan, South Korea, with completion expected in 2025[251]. - The company is focused on expanding its market presence and has plans for new product development in the recycling sector[342]. - PureCycle Technologies is actively pursuing strategic partnerships to enhance its technological capabilities and market reach[342]. - PureCycle Technologies is exploring potential mergers and acquisitions to accelerate growth and expand its product offerings[342]. Governance and Management - The company has implemented changes to its board structure to enhance governance and operational oversight[341]. - PCT's management concluded that disclosure controls and procedures were not effective as of June 30, 2023, due to material weaknesses in internal control over financial reporting[320]. Research and Development - PCT's research and development expenses are expected to increase as the company invests in new front-end feedstock mechanical separators and enhances in-house analytical capabilities[256]. - The company has received FDA food contact grades for its recycled feedstocks, allowing for use in various food types under specified conditions[250]. Interest and Debt Management - The increase in interest expense for the three and six month periods was primarily due to additional financing incurred in the second quarter of 2023[263]. - The interest rate on borrowings under the Revolving Credit Agreement varies, starting at 5.00% and increasing to 17.50% over time[300]. - The term loan bears interest at a variable annual rate equal to Term SOFR plus an applicable margin of 7.5%[309].