(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]

Operational Highlights - PureCycle's core technology is operational and tested at commercial scale[19] - The Ironton facility is improving plant performance daily[18] - The Ironton facility has successfully commissioned all technologies[19] - The Ironton facility has over 10 million lbs of feedstock in inventory[19] Financial Highlights - PureCycle received $47.9 million in net financing proceeds during Q2[23] - The company extended its $150 million revolving line of credit through March 31, 2025[22, 28] - Total unrestricted cash decreased from $38.4 million on March 31, 2023, to $28.9 million on June 30, 2023, a decrease of $9.5 million[13] - Total restricted cash decreased from $225.5 million on March 31, 2023, to $187.4 million on June 30, 2023, a decrease of $38.1 million[13] - Total available liquidity decreased from $263.9 million on March 31, 2023, to $216.3 million on June 30, 2023, a decrease of $47.6 million[13] Growth Initiatives - PureCycle is ramping up efforts to market UPR for international offtake customers[12] - Projects in South Korea, Belgium, and Japan continue to progress[12] - Initial site development in Augusta is expected in 4Q23[22]

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].

Financial Data and Key Metrics - The company ended the quarter with just under $264 million in total available liquidity, a decrease of $62.2 million from the prior quarter [43] - Cash and debt securities available for sale decreased by $124.1 million from December 31st due to investments in Ironton, Augusta, and PreP facilities, as well as payments to bondholders [21] - The company secured an additional $62 million of non-dilutive debt financing and is working on closing other equipment financing packages in the next few months [15][44] Business Line Data and Key Metrics - The Ironton facility is now mechanically complete and ready for solvent circulation, with the goal of producing between 45 million to 75 million pounds of ultra-pure recycled resin in 2023 [13][36] - The Augusta project has completed approximately 90% of the ISBL design and has begun work on the OSBL design, with module preparation for construction underway in Beaumont, Texas [42] - The company is advancing joint venture projects in South Korea and Japan, with feasibility studies underway for two locations in Japan [14][19] Market Data and Key Metrics - The company is actively seeking opportunities to amplify its technology in the global polypropylene recycling marketplace, with a focus on commercializing the Ironton plant [14] - The company has initiated engineering work at the Port of Antwerp in Belgium to support the permitting process for a new facility [19] - The company is participating in global industry events and discussions, including the U.S.-Korea Sustainability Summit and Domestic Plastic Recycling Tabletop discussions [38] Company Strategy and Industry Competition - The company is focused on managing cash burn until Ironton is operational and pursuing cost-effective project financing for growth projects [45] - The company is leveraging modular construction techniques to improve efficiency and reduce costs for future projects [28][51] - The company is working to secure feedstock supply agreements globally, with confidence in fulfilling obligations for Ironton and other planned facilities [58][93] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the growth plan and the operational readiness of the Ironton facility, with a focus on long-term operational success [3][16] - The company expects to complete the start-up timeline for Ironton and meet milestones outlined in the recent bondholder agreement [13] - Management highlighted the importance of Ironton as the first step in the company's global expansion, with future projects in Augusta, Europe, and Asia [43][77] Other Important Information - The company has posted videos showcasing its PrEP, purification, and born-digital operations on its website and social media platforms [16] - The company was voted one of the best places to work by Plastic News for the second year in a row [24] Q&A Session Summary Question: Factors affecting the production range of 45 million to 75 million pounds from Ironton in 2023 - The production range depends on the ramp-up speed of the facility, with the plant's performance during solvent circulation and feed introduction providing insights into the ramp rate [26] Question: Lessons learned from Ironton for future expansion - The company has identified areas for construction efficiency improvements, particularly in modularization and design decisions, which will be applied to future projects [28][51][77] Question: Feedstock availability and pricing strategy - The company feels confident about feedstock availability and has built flexibility into its off-take agreements to adjust pricing based on market conditions [57][81] Question: Financing and capital requirements for Augusta - The expected CapEx for the first line in Augusta is around $400 million, with the company having sufficient sources to meet this demand, including potential DBOOM opportunities [60][61] Question: Team readiness and troubleshooting capacity for Ironton startup - The company has refocused internal staff and partnered with external experts to ensure rapid response and troubleshooting during the startup phase [68][72] Question: Feedstock supply confirmation for Ironton - The company has confirmed feedstock availability with suppliers and has processed and unprocessed feedstock on-site ready for purification [110][112] Question: Capacity utilization needed to de-risk Ironton for better capital access - Technical risk is reduced once first pellets are produced, and project economic risk is reduced once the facility demonstrates stable operation at target rates [113]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For transition period from to Commission File Number 001-40234 PureCycle Technologies, Inc. (Exact name of registrant as specified in its charter) Delaware State 86-2293091 (I.R.S. Employer Identification Number) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Plant 1 project fund (Ironton, OH) $11.0 $13.2 $2.2 Other corporate requirements 1.5 1.3 (0.2) Capitalized Interest and Debt Reserves 46.7 38.0 (8.7) Total Available $416.1 $326.1 $(90.0) • $39.0M additional Ironton investment • $11.5M for Augusta purification and PreP investments • $7.2M payroll and benefits • $6.6M general corporate • $(11.8M) released from Augusta escrow Overview Ironton Global Finance Limited Waiver provides a mutually satisfactory agreement for PCT and the bondholders • $100 million ca ...

Financial Data and Key Metrics Changes - The company ended the quarter with over $326 million in total available liquidity [11] - Cash and debt securities available for sale decreased by $52.5 million from September [37] - The company anticipates investments in 2023 to complete the Ironton facility could range from $55 million to $80 million [37] Business Line Data and Key Metrics Changes - The Ironton facility is nearing mechanical completion, expected by early April, with plans to start producing ultra-pure recycled (UPR) resin pellets by the end of April [6][39] - The company aims to produce 55 million to 75 million pounds of UPR resin in 2023 [6] - The Augusta facility is in the early engineering phase with a startup plan for late 2024 [6] Market Data and Key Metrics Changes - The company has secured new feedstock and offtake relationships, with letters of interest signed representing a feedstock over-subscription at 125% and off-take nearly sold out at 75% [20] - The company announced a new purification facility at the Port of Antwerp, expected to produce up to 520 million pounds annually, with startup planned for early 2026 [20] Company Strategy and Development Direction - The company is focused on scaling operations at the Ironton facility and optimizing costs through operational excellence [41] - The company is actively pursuing joint ventures in Japan and South Korea, with site selection efforts narrowing down to two locations in Japan [17] - The company aims to leverage lessons learned from the Ironton project to improve execution and construction efficiency for the Augusta facility [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operational milestones for the Ironton facility, despite previous delays [18] - The company is optimistic about the long-term economics of the Ironton facility and expects to see significant performance improvements as operations ramp up [37] - Management highlighted the importance of maintaining financial flexibility and optionality in capital raising efforts [50] Other Important Information - The company successfully negotiated a waiver with bondholders, which included operational milestone dates for the Ironton project [18] - A $150 million revolving line of credit was secured to support operations and bridge funding needs [38] Q&A Session Summary Question: Can you walk through the next four weeks regarding the Ironton facility? - Management indicated that the next four weeks will focus on finishing final touches and initiating the operations PSSR process, with all extruders nearly mechanically complete [43] Question: What is the status of feedstock sourcing? - Management confirmed that all feedstock requirements for Ironton are firmly sourced, and they are well-positioned for both feedstock and offtake [46] Question: What are the expectations for the Augusta facility's financing? - Management stated that they are evaluating financing options and maintaining flexibility to ensure compliance with the Augusta Economic Development Authority's requirements [50]

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, 2022 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 ...

PureCycle Technologies, Inc. (NASDAQ:PCT) Q3 2022 Earnings Conference Call November 10, 2022 11:00 AM ET Company Participants Charlie Place - Director, Investor Relations Dustin Olson - Chief Executive Officer Larry Somma - Chief Financial Officer Conference Call Participants Noah Kaye - Oppenheimer Hassan Ahmed - Alembic Global Eric Stine - Craig-Hallum Gerry Sweeney - ROTH Brian Butler - Stifel Thomas Boyes - Cowen Operator Ladies and gentlemen, thank you for standing by and welcome to the PureCycle Techn ...