Financial Performance - Net sales for 2024 were $850.726 million, a decrease of 1.1% from $864.714 million in 2023[342]. - Gross profit increased to $153.774 million in 2024, up 9.7% from $139.858 million in 2023[342]. - Total operating expenses rose to $202.898 million in 2024, compared to $160.287 million in 2023, reflecting a significant increase of 26.5%[342]. - The net loss for 2024 was $80.298 million, worsening from a net loss of $34.567 million in 2023[344]. - Basic and diluted loss per common share for 2024 was $(0.89), compared to $(0.43) in 2023[342]. - Comprehensive loss attributable to shareholders for 2024 was $(64.532) million, compared to $(24.661) million in 2023[344]. - Interest expense increased to $33.856 million in 2024, up from $29.157 million in 2023[342]. - The company incurred impairment charges of $5.686 million in 2024, which were not present in 2023[342]. - The company recognized $6.8 million of net unrealized gains on green coffee inventory for the year ended December 31, 2024[377]. - The company recognized $190.0 million in revenues from commodity contracts under ASC 815, compared to $141.0 million in 2023 and $181.7 million in 2022[464]. Assets and Liabilities - Total assets increased to $1,101,780,000 as of December 31, 2024, compared to $971,514,000 in 2023, reflecting a growth of approximately 13.4%[341]. - Current liabilities rose to $277,870,000 in 2024 from $239,635,000 in 2023, indicating an increase of about 15.9%[341]. - Long-term debt increased significantly to $325,880,000 in 2024, up from $223,092,000 in 2023, representing a growth of approximately 46.1%[341]. - Total debt rose significantly from $278.975 million at December 31, 2023, to $447.727 million at December 31, 2024[498]. - The company has a total of $393.068 million in long-term debt payments required over the next five years[498]. - As of December 31, 2024, total cash and cash equivalents were $26.2 million, down from $37.2 million in 2023[373]. - Cash and cash equivalents at the end of 2024 were $35,564 thousand, a decrease from $37,840 thousand at the end of 2023[349]. - The allowance for credit losses increased to $3.995 million in 2024 from $2.915 million in 2023, reflecting higher provisions[375]. Cash Flow and Investments - Total cash used in operating activities for 2024 was $13,243 thousand, an improvement from $64,064 thousand in 2023[349]. - Cash flows from investing activities resulted in a net cash outflow of $145,923 thousand in 2024, slightly lower than the $168,355 thousand outflow in 2023[349]. - The company capitalized approximately $11.7 million of interest costs in 2024, compared to $3.2 million in 2023[381]. - The company incurred $24.0 million in transaction expenses related to the merger, which included underwriting fees and professional services, and these costs were recognized in additional paid-in capital[446]. Equity and Shareholder Information - The weighted-average number of shares outstanding increased to 89.795 million in 2024 from 80.684 million in 2023[342]. - The company issued 11,877 thousand common shares in 2023, raising $117,767 thousand net of issuance costs[347]. - The company issued 34,855,535 Common Shares and 2,220,305 Common Shares to holders of Common Equivalent Preferred Units, resulting in a net loss of $2.9 million on extinguishment of the Common Equivalent Preferred Units[440]. - The company has 23,510,527 Series A Preferred Shares outstanding, which rank senior to Common Shares regarding dividend and distribution rights[520]. Acquisitions and Mergers - The Company completed a de-SPAC merger with Riverview Acquisition Corp. on August 26, 2022, converting from a Delaware limited liability company to a Delaware corporation[354]. - The Company acquired the remaining 15% equity interest in Falcon Coffees Limited for $3.2 million, including $2.0 million in cash and 100,000 Common Shares[361]. - The acquisition of Bixby Roasting Co. on February 28, 2023, involved total consideration of $2.6 million, including $2.2 million in cash and 39,778 common shares[474]. - Kohana Coffee was acquired for a total consideration of $39.117 million, which included $15.682 million in cash and $23.435 million in stock[478]. Operational Risks and Market Conditions - The company faces risks related to macroeconomic conditions, including potential disruptions in operations and changes in consumer spending[3]. - Interest rate volatility could impact the company's financing capabilities, with a potential annualized impact of approximately $0.9 million from a hypothetical 10% change in interest rates[332]. - The company is actively working to mitigate inflation impacts by passing costs onto customers, although pricing increases often lag behind cost increases[333]. Inventory and Cost Management - Inventories increased to $163,323,000 in 2024, up from $149,921,000 in 2023, reflecting an increase of about 8.9%[341]. - Shipping and handling costs included in selling, general and administrative expense were $14.7 million, $17.8 million, and $22.1 million for the years ended December 31, 2024, 2023, and 2022, respectively, showing a decline of 33.5% from 2022 to 2024[414]. - Advertising expenses for the years ended December 31, 2024, 2023, and 2022 were approximately $0.9 million, $1.9 million, and $3.6 million, respectively, indicating a decrease of 52.6% from 2022 to 2024[413]. Compliance and Regulatory Matters - The Company adopted ASU 2022-04 on January 1, 2023, which requires disclosure of supplier finance program obligations, effective for fiscal years beginning after December 15, 2022[427]. - The Company is currently evaluating the impact of ASU 2023-09, which improves income tax disclosures, effective for annual periods beginning after December 15, 2024[431]. - Falcon was in compliance with financial covenants requiring certain levels of working capital, debt, and tangible net worth as of December 31, 2024[518].

Financial Data and Key Metrics Changes - In Q4 2024, Westrock Coffee Company reported a segment adjusted EBITDA of $21 million, a 53% increase year-over-year, with the Beverage Solutions unit contributing $17.8 million, up 53% from the previous year [7][28] - For the full year 2024, consolidated adjusted EBITDA was $47.2 million, which included $12.8 million of Conway facility scale-up operating costs, compared to $45.1 million in 2023 [26][32] - Net sales for Q4 2024 increased by 6.5% year-over-year, while gross profit rose by 9.2% [29] Business Line Data and Key Metrics Changes - The Beverage Solutions segment generated $659.9 million in net sales for 2024, an 8.8% decrease compared to 2023, while the SS&T segment saw a 40% increase in volumes, resulting in net sales of $191.3 million [32][33] - The SS&T segment adjusted EBITDA for 2024 was $6.4 million, reflecting an 84% increase from the previous year [27][33] - The extracts and RTD business experienced nearly 25% volume growth, contributing to significant gross profit expansion [14] Market Data and Key Metrics Changes - Green coffee prices surged approximately 70% in fiscal 2024, impacting inventory values and liquidity due to increased working capital requirements [37][38] - The company expects potential demand decline in the back half of the year due to higher coffee prices being passed on to consumers [39][40] Company Strategy and Development Direction - Westrock Coffee aims to be the leading manufacturing partner for global beverage brands, focusing on innovation, sustainable sourcing, and low-cost processing [10][11] - The company has invested nearly $400 million in expanding its facilities to meet growing customer demand, positioning itself to capitalize on consumer-driven value shifts in the beverage market [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant EBITDA growth over the next few years, driven by new customer contracts and increased production capacity [15][41] - The company anticipates volume growth in its core coffee business from new retail customers onboarded in late 2024, with strong visibility into growth for the next two years [41][42] Other Important Information - The company spent approximately $160 million in capital expenditures for 2024, with $140 million allocated to the Conway facility [35] - As of year-end 2024, Westrock had approximately $90 million in unrestricted cash and undrawn revolving credit commitments [36] Q&A Session Summary Question: Impact of higher coffee prices on customer orders - Management acknowledged that higher coffee prices could impact demand later in the year, as customers begin to pass costs to consumers [54][56] Question: Scale-up costs in 2026 guidance - Management confirmed that there would be no scale-up costs in 2026, as operations would be fully ramped up by then [58][59] Question: Customer product development and market share - Management indicated that the company is both taking market share and developing new products with existing customers, leveraging its integrated solutions [64][66] Question: Higher green coffee costs and customer volumes - Management noted that the impact of higher coffee costs would likely be felt in the back half of the year, particularly in heavy coffee products [78][79] Question: Change in guidance for 2025 - The change in guidance was primarily due to conservatism around the start-up of the Conway facility rather than solely from higher coffee prices [81][82]

Financial Performance - Net sales for the full year 2024 were $850.7 million, a decrease of 1.6% compared to the previous year[6]. - Gross profit for the full year 2024 was $153.8 million, an increase of 10.0%[6]. - The net loss for the full year 2024 was $80.3 million, compared to a net loss of $34.6 million in fiscal 2023[6]. - Net sales for the year ended December 31, 2024, were $850,726,000, a decrease of 1.0% compared to $864,714,000 in 2023[23]. - Gross profit for the year ended December 31, 2024, increased to $153,774,000, up 9.9% from $139,858,000 in 2023[23]. - The company reported a net loss of $80,298,000 for the year ended December 31, 2024, compared to a net loss of $34,567,000 in 2023, indicating a significant increase in losses[23]. - The Company reported a net loss of $24,607,000 for the three months ended December 31, 2024, compared to a net loss of $20,051,000 for the same period in 2023, indicating an increase in losses of approximately 12.7%[32]. Segment Performance - Segment Adjusted EBITDA for Beverage Solutions was $53.6 million, an increase of 28.9%[6]. - Segment Adjusted EBITDA for Sustainable Sourcing & Traceability (SS&T) was $6.4 million, an increase of 84.1%[6]. - Beverage Solutions segment reported net sales of $659,383,000 for the year ended December 31, 2024, down from $722,865,000 in 2023, a decrease of 8.8%[27]. - Segment Adjusted EBITDA for Beverage Solutions increased to $53,639,000 in 2024, up from $41,624,000 in 2023, reflecting a growth of 28.9%[27]. Cash Flow and Expenses - Cash and cash equivalents decreased to $26,151,000 as of December 31, 2024, down from $37,196,000 in 2023, a decline of 29.7%[21]. - The company incurred total operating expenses of $202,898,000 for the year ended December 31, 2024, compared to $160,287,000 in 2023, an increase of 26.5%[23]. - Cash flows from operating activities resulted in a net cash used of $13,243,000 for the year ended December 31, 2024, a significant improvement from $64,064,000 used in 2023[25]. - Interest expense for the three months ended December 31, 2024, was $11,935,000, compared to $7,941,000 for the same period in 2023, representing an increase of approximately 50.4%[32]. - The Company incurred transaction, restructuring, and integration expenses of $3,896,000 for the three months ended December 31, 2024, compared to $1,875,000 in the same period of 2023, showing a significant increase of about 107%[32]. - Depreciation and amortization expenses increased to $11,549,000 for the three months ended December 31, 2024, from $8,166,000 in 2023, marking an increase of approximately 41.5%[32]. - The Company reported impairment charges of $3,690,000 for the three months ended December 31, 2024, with no such charges reported in the same period of 2023[32]. Future Outlook - The company expects Consolidated Adjusted EBITDA for 1H 2025 to be between $17.5 million and $24.0 million[12]. - The company anticipates a significant growth in volume from new retail coffee customers and existing single-serve customers starting in Q3 2025[11]. - The company plans to launch RTD glass bottle products in Q3 2025, with volume scale-up continuing through Q2 2026[11]. Debt and Compliance - The secured net leverage ratio is expected to be 5.70x by June 30, 2025, and decrease to 3.00x by December 31, 2026[14]. - The secured net leverage ratio for the Beverage Solutions segment was reported at 4.71x, indicating a high level of debt relative to earnings[29]. - The secured net leverage ratio is calculated as secured net debt divided by Adjusted EBITDA, which is crucial for compliance with the Credit Agreement[30]. - As of the date of the press release, the Company is in compliance with its financial covenants under the Credit Agreement[31]. Non-GAAP Measures - The Company emphasizes that EBITDA and Consolidated Adjusted EBITDA are important non-GAAP measures for evaluating operating performance and should be considered alongside GAAP measures[33]. - The change in fair value of warrant liabilities resulted in a loss of $7,015,000 for the year ended December 31, 2024, compared to a loss of $10,207,000 in 2023, indicating an improvement of approximately 31.5%[32].

Core Insights - Westrock Coffee Company reported financial results for Q4 and full year 2024, highlighting a strategic focus on becoming a premier integrated supplier in the coffee, tea, and energy beverage markets [1][3] - The company experienced significant growth in Segment Adjusted EBITDA, particularly in the Sustainable Sourcing & Traceability segment, which saw an increase of 84.1% [7][11] Full Year 2024 Highlights - Net sales for the full year were $850.7 million, a decrease of 1.6% compared to the previous year [7] - Gross profit increased by 10.0% to $153.8 million [7] - The net loss for the year was $80.3 million, compared to a net loss of $34.6 million in fiscal 2023 [7] Fourth Quarter Highlights - Q4 net sales were $229.0 million, an increase of 6.5% [8] - Gross profit for Q4 was $38.0 million, up 9.2% [8] - The net loss for Q4 was $24.6 million, compared to a net loss of $20.1 million in the prior year [8] Segment Performance - Beverage Solutions segment net sales were $659.4 million, a decrease of 8.8%, but Segment Adjusted EBITDA increased by 28.9% to $53.6 million [7] - Sustainable Sourcing & Traceability segment net sales rose by 34.9% to $191.3 million, with Segment Adjusted EBITDA increasing by 84.1% to $6.4 million [7] Credit Facility and Financial Guidance - The company expanded its revolving credit facility by $25 million, bringing total commitments to $200 million, to support growth initiatives [10] - For 2025, the company expects significant growth driven by volume increases in its core coffee business and operational improvements [11][13] 2025 and 2026 Outlook - Consolidated Adjusted EBITDA guidance for 2025 ranges from $130 million to $150 million [12] - Segment guidance for Beverage Solutions anticipates net sales to be essentially flat, with Segment Adjusted EBITDA expected to increase by 53.0% [12][14]

Core Viewpoint - Empire Diversified Energy, Inc. has successfully closed financing of up to $10,000,000 for its subsidiary Empire Green Generation, LLC, through the sale of Solid Waste Disposal Facilities Revenue Bonds, with an initial draw of $4,000,000 [1] Group 1: Financing and Investment - The financing is facilitated by the West Virginia Economic Development Authority [1] - The total authorized financing amount is $10,000,000, with the initial draw being $4,000,000 [1] Group 2: Technology and Operations - Empire Green Generation's recycling plant utilizes proven technology to convert waste plastics into pyrolysis oils, serving as a sustainable alternative to petroleum-derived products [2] - The plant is designed to recycle 70 metric tons of plastic per day using an eco-friendly pyrolytic process and will generate 1.4 MW of electricity from syngas [2] Group 3: Location and Infrastructure - GreenGen is situated at the Empire Riverfront Industrial Complex, which offers advantageous access to multi-modal logistics at the Port of West Virginia [3] Group 4: Leadership and Vision - The CEO of Empire expressed gratitude for the lender's support and emphasized the company's commitment to establishing a standard for waste-to-energy recycling plants in the U.S. [4] - The company plans to provide updates as the commissioning process transitions into full operations in the next quarter [4] Group 5: Company Overview - Empire Diversified Energy, Inc. operates in the sustainable energy and logistics sectors, with its primary location in Follansbee, West Virginia [5] - The company is focused on deploying innovative technologies aimed at clean energy generation and decarbonizing various sectors [5]

Core Points - Westrock Coffee Company will report its fourth quarter 2024 results on March 11, 2025, after market close [1] - A live earnings conference call will follow the results announcement at 4:30 p.m. ET [1] Company Overview - Westrock Coffee is a leading integrated provider of coffee, tea, flavors, extracts, and ingredients solutions in the U.S. [3] - The company offers services including coffee sourcing, supply chain management, product development, roasting, packaging, and distribution to various industries [3] - Westrock Coffee operates in 10 countries and sources coffee and tea from 35 origin countries [3]

Event Participation - Edge Total Intelligence Inc (edgeTI) will exhibit at the WEST Conference in San Diego, CA from January 28-30, 2025 [1] - The company will showcase its edgeCore™ platform, including its Digital Twin and secure Data Mesh capabilities, at Booth 1048 [2] Product Capabilities - edgeCore™ enables enterprises to achieve mission objectives faster and under budget by securely leveraging data assets across domains [3] - The platform provides a purpose-built Data Mesh to accelerate AI/ML adoption, typically within weeks, without costly data repository investments [3] - edgeCore™ offers a faster, more secure, and cost-effective alternative to traditional data integration methods, which often take longer than estimated [4] Industry Context - The platform addresses the need for real-time data feeds in specific formats for AI/ML solutions, reducing reliance on redundant data stored in warehouses and lakes [4] - edgeCore™ supports the Department of Defense's CJADC2 concept, which integrates military data and operations across all domains to provide real-time decision advantages [5] Company Overview - edgeTI specializes in real-time digital operations software, uniting multiple applications and data sources into a Digital Twin experience [9] - The company's edgeCore™ platform helps global enterprises, service providers, and governments improve margins and agility by transforming siloed systems and data [9] Event Background - The WEST Conference connects industry professionals designing platforms, equipment, and weapons with communications and technical system designers [6] - Over 150,000 U S Navy, Marine Corps, and Coast Guard professionals in San Diego rely on the event for open discussions and networking [6] - Senior military and government officials engage directly with operators to gain feedback, while industry leaders connect with decision-makers over the three-day event [7][8]

Financial Data and Key Metrics Changes - The quarterly segment adjusted EBITDA for Beverage Solutions increased by 19% year-over-year and is up 20% year-to-date [8] - The Sustainable Sourcing & Traceability segment saw a 45% year-over-year increase for the quarter and 132% year-to-date [9] - Consolidated net sales for Q3 were $220.9 million, flat compared to Q3 2023, while consolidated gross profit increased by 5.8% [27] - Consolidated adjusted EBITDA for the quarter was $10.3 million, down from $11.6 million in Q3 2023, impacted by $4 million of Conway scale-up operating costs [28] Business Line Data and Key Metrics Changes - The Beverage Solutions segment adjusted EBITDA increased almost 19% to $11.8 million, with a segment adjusted EBITDA margin up 157 basis points [29] - The Sustainable Sourcing & Traceability segment's sales were $56.9 million, a 33% increase compared to Q3 2023, driven by a 36% increase in volumes [30] - Single-serve cup volumes were down 24% year-over-year, while core coffee volumes decreased by 6% [29] Market Data and Key Metrics Changes - The company is experiencing a shift in consumer behavior, with a trend towards smaller packaging sizes impacting single-serve cup volumes [10][73] - The overall market for ready-to-drink (RTD) coffee is reportedly slowing, but the company is focused on gaining market share [81][82] Company Strategy and Development Direction - The company is positioned at the forefront of three mega trends: the transition from hot to cold beverages, the shift to high-quality extracts, and the move towards outsourcing by branded companies [41][42] - The Conway plant is essentially sold out, with the sales team now focusing on expanding production capacity for 2026 and 2027 [44] - The company plans to generate consolidated adjusted EBITDA between $80 million and $100 million for 2025, driven by new customer commitments and the ramp-up of RTD can volumes [37][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macroeconomic environment but remains optimistic about the recovery of single-serve volumes and the overall consumer market [7][18] - The company expects to end 2024 at the bottom of its previously announced guidance range, with a strong outlook for 2025 based on new customer contracts and production ramp-ups [18][35] Other Important Information - The company completed a warrant tender offer, exchanging all private placement warrants and over 97% of public warrants, resulting in no remaining warrants outstanding [33][34] - Capital expenditures for Q3 were approximately $36 million, primarily related to the Conway facility, with total spending expected to reach $350 million [31] Q&A Session Summary Question: What guarantees the slope of the ramp over 2025? - Management indicated that the push to accommodate a large customer was a rare situation and that contracts in the ready-to-drink and extract business include take-or-pay clauses, ensuring revenue stability [48][52] Question: Are acceptance works still happening in 2024? - New products will require acceptance, but the numbers provided reflect commercial production of products already approved in 2024 [55][56] Question: What are the drivers for EBITDA growth next year? - New retail customers in the core coffee business and expected volume commitments from existing single-serve customers are key drivers for growth [58][59] Question: Can you explain the decline in single-serve volumes? - The decline is attributed to consumers purchasing smaller pack sizes and some lost distribution centers, but new customers are expected to contribute positively in 2025 [73][74] Question: How is the slowing RTD coffee category impacting the business? - The company is focused on gaining market share, which is expected to drive significant earnings growth regardless of overall market trends [81][82]

Core Insights - Westrock Coffee Company reported a quarterly loss of $0.05 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.03 per share a year ago [1] - The company's revenues for the quarter ended September 2024 were $220.86 million, missing the Zacks Consensus Estimate by 11.53%, and slightly up from $219.61 million year-over-year [2] - Westrock Coffee shares have declined approximately 27.3% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] Financial Performance - The company has not surpassed consensus revenue estimates in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $261.83 million, and for the current fiscal year, it is -$0.20 on revenues of $912.37 million [7] Market Outlook - The earnings outlook and management's commentary during the earnings call will be crucial for the stock's immediate price movement [3][4] - The estimate revisions trend for Westrock Coffee is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The Beverages - Soft drinks industry, to which Westrock belongs, is currently in the top 26% of Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Total net sales for the three months ended September 30, 2024, were $220.86 million, compared to $219.61 million for the same period in 2023, representing a 0.6% increase[8]. - Gross profit for the three months ended September 30, 2024, was $37.09 million, up from $35.07 million in the same period last year, indicating a 5.8% increase[8]. - The company reported a net loss of $14.26 million for the three months ended September 30, 2024, compared to a net income of $16.62 million for the same period in 2023[9]. - The company reported a comprehensive loss of $10.38 million for the three months ended September 30, 2024, compared to a comprehensive income of $19.86 million for the same period in 2023[9]. - The company reported a net loss of $55.691 million for the year ending December 31, 2023, reflecting a significant decline in performance[12]. - The company reported a net loss of $55.7 million for the nine months ended September 30, 2024, compared to a net loss of $14.5 million for the same period in 2023[15]. - The company reported a net loss of $14,259,000 for Q3 2024, compared to a net income of $16,621,000 in Q3 2023[175]. - The company reported a net loss attributable to common shareholders of $(14.2) million for the three months ended September 30, 2024, compared to a profit of $12.8 million in the same period of 2023[183]. Assets and Liabilities - Total current assets increased to $336.63 million as of September 30, 2024, from $313.05 million as of December 31, 2023, reflecting a 7.5% growth[6]. - Total liabilities rose to $692.84 million as of September 30, 2024, compared to $583.56 million as of December 31, 2023, marking an 18.7% increase[6]. - The company’s total assets increased to $1.08 billion as of September 30, 2024, from $971.51 million as of December 31, 2023, representing an 11% increase[6]. - The company’s cash and cash equivalents decreased to $22.36 million as of September 30, 2024, down from $37.20 million as of December 31, 2023[6]. - Total cash and cash equivalents at the end of the period were $32.7 million, down from $48.8 million at the end of September 2023[15]. - Total debt increased significantly from $279.0 million on December 31, 2023, to $449.6 million on September 30, 2024[75]. Expenses - Selling, general and administrative expenses for the three months ended September 30, 2024, were $46.13 million, compared to $37.05 million in the same period last year, a 24.6% increase[8]. - The company incurred transaction, restructuring, and integration expenses of $2.54 million for the three months ended September 30, 2024, down from $3.14 million in the same period in 2023[8]. - The company incurred depreciation and amortization expenses of $23.2 million, up from $18.4 million in the previous year[15]. - The company incurred interest expense of $6,889 thousand and transaction, restructuring, and integration expenses of $2,538 thousand during the three months ended September 30, 2024[148]. - Selling, general and administrative expenses increased to $142.2 million, representing 22.9% of total revenues, up from 16.2% in the prior year[203]. Segment Performance - Beverage Solutions segment net sales for the three months ended September 30, 2024, were $164.0 million, primarily due to a $16.4 million decrease in coffee and tea product sales[185]. - Sustainable Sourcing & Traceability segment net sales increased by 32.8% to $56.9 million, driven by a 35.9% increase in sales volume[186]. - For the nine months ended September 30, 2024, net sales for Beverage Solutions were $485,322,000, and for Sustainable Sourcing & Traceability were $143,204,000, totaling $621,749,000[152]. - Segment Adjusted EBITDA for the total reportable segments was $14,227 thousand for the three months ended September 30, 2024, with Beverage Solutions at $11,752 thousand and Sustainable Sourcing & Traceability at $2,475 thousand[148]. - Segment Adjusted EBITDA for the total reportable segments for the nine months ended September 30, 2024, was $39,033,000[152]. Equity and Capital - The issuance of common shares related to warrant exchange amounted to 5,424 shares, generating $36,938,000 in additional capital[10]. - The balance of common stock shares increased from 75,728,000 on June 30, 2023, to 88,039,000 by September 30, 2023[10]. - The total number of common stock shares is projected to reach 94,073,000 by September 30, 2024[12]. - The company granted 1,370,222 RSUs during the nine months ended September 30, 2024, with a weighted-average fair value at grant date of $9.66[136]. - The company recognized approximately $4.1 million of one-time employee severance costs during the nine months ended September 30, 2024, related to targeted restructuring activities[35]. Cash Flow and Financing - Cash flows from operating activities showed a net cash outflow of $16.0 million for the nine months ended September 30, 2024, an improvement from a net cash outflow of $75.1 million in the prior year[15]. - The company made capital expenditures of $141.5 million in property, plant, and equipment during the nine months ended September 30, 2024, compared to $121.5 million in the prior year[15]. - The company is required to maintain a secured net leverage ratio ranging from 4.50:1.00 to 6.25:1.00, stepping down to 4.50:1.00 by April 2026[81]. - The Company issued $72.0 million in convertible senior notes at a 5.00% interest rate, with $50.0 million from related parties[84]. - The company entered into a $5.0 million unsecured working capital trade finance facility, maturing on December 31, 2026, with stepped repayments totaling $5.0 million[91]. Market and Strategic Initiatives - The company has plans for market expansion and new product development, as indicated by the ongoing issuance of common shares and capital raising activities[12]. - The company’s proprietary technology in the SS&T segment aims to improve the lives of farming partners and enhance environmental accountability[169]. - The company is currently evaluating the impact of several recently issued accounting pronouncements, including ASU 2023-07 and ASU 2023-09, on its consolidated financial statements[44][45]. Taxation - The effective income tax rate for the nine months ended September 30, 2024, was (2.3%), significantly lower than the 18.7% rate for the same period in 2023, primarily due to an increase in the valuation allowance against domestic deferred tax assets[40]. - The company expects minimal impact from the OECD's Pillar Two legislation on its 2024 effective tax rate[41].