LanzaTech (LNZA) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, LanzaTech reported revenue of $9.943 million, a decrease of 49$19.605 million for the same period in 2023[199]. - The net loss for the three months ended September 30, 2024, was $(57.431) million, compared to a net loss of$(25.326) million for the same period in 2023, representing an increase in losses of 127%[199]. - One-time revenue for the three months ended September 30, 2024, was $8.414 million, down 53$18.075 million in the same period in 2023[199]. - For the nine months ended September 30, 2024, total revenue was $37.562 million, an 11$42.168 million for the same period in 2023[200]. - Net loss for Q3 2024 was $57.4 million, compared to a net loss of$25.3 million in Q3 2023, representing a 127% increase in loss[224]. - Net loss for the nine months ended September 30, 2024, was $110.7 million, compared to a net loss of$115.4 million in the same period in 2023, reflecting a 4% decrease in loss[232]. - The company reported a net loss of $(110,738) thousand for the nine months ended September 30, 2024, compared to$(115,424) thousand for the same period in 2023[277]. - Adjusted EBITDA for the three months ended September 30, 2024, was $(27.081) million, compared to$(19.062) million for the same period in 2023, indicating a 42% increase in losses[199]. - Adjusted EBITDA for the nine months ended September 30, 2024 was $(66,981) thousand, compared to$(66,398) thousand for the same period in 2023[277]. Revenue and Cost Analysis - Total revenue decreased by $9.7 million, or 49$6.1 million decrease in revenue from engineering and other services contracts[225]. - Cost of revenue decreased by $6.2 million, or 43$5.1 million decrease in cost of sales for engineering and other services[226]. - Total revenue decreased by $4.6 million, or 11$11.1 million decrease in revenue from engineering and other services[233]. - Cost of revenue decreased by $12.6 million, or 38$12.7 million decrease in cost of sales for engineering and other services[234]. Expenses - Research and development expenses increased by $5.4 million, or 32$4.9 million increase in R&D services related to project development costs[227]. - Selling, general and administrative expenses decreased by $0.4 million, or 3$8.7 million, or 17%, in the nine months ended September 30, 2024, compared to the same period in 2023[235]. - SG&A expenses decreased by $6.9 million, or 17$15.3 million, or 20%, as of September 30, 2024, compared to December 31, 2023[239]. - The company issued and sold $40.2 million of convertible notes as of August 6, 2024, under a Convertible Note Purchase Agreement[252]. - The Convertible Note bears interest at a fixed rate of 8.00$100 million[251]. - The company is seeking additional financing under the Convertible Note Purchase Agreement but currently has no commitments from investors[257]. - For the nine months ended September 30, 2024, net cash used in operating activities was $(69,384) thousand, a decrease of$12,181 thousand or 15% compared to $(81,565) thousand in the same period of 2023[263][264]. - Net cash provided by investing activities was$14,130 thousand for the nine months ended September 30, 2024, compared to net cash used of $(56,495) thousand in the same period of 2023, reflecting a change of$70,625 thousand[263][265]. - Net cash from financing activities was $40,224 thousand for the nine months ended September 30, 2024, down from$147,272 thousand in the same period of 2023, a decrease of $107,048 thousand or 73%[263][266]. Operational Insights - LanzaTech's capacity increased from 244 thousand tonnes per annum as of September 30, 2023, to 308 thousand tonnes per annum as of September 30, 2024, reflecting an addition of 64 thousand tonnes[202]. - The company is evolving its technology licensing model to include greater ownership and operatorship in the biorefining value chain, enhancing control over development and financing[191]. - LanzaTech has established six commercial waste gas-to-ethanol plants since 2018, with ongoing developments in various countries[191]. - The company launched CirculAir™, a new solution for producing sustainable aviation fuel and renewable diesel, in collaboration with LanzaJet[191]. Risks and Challenges - The company expects to continue generating operating losses and net cash outflows from operating activities in the near term[258]. - The company believes existing cash and cash equivalents will be sufficient to fund operations for the next 12 months, but liquidity assumptions may prove incorrect[259]. - The company may require additional financing to meet operating requirements, which could lead to dilution for existing stockholders if raised through equity[260][261]. - Demand for CarbonSmart products is indirectly affected by fossil fuel and first-generation bio-fuel prices, with a potential decrease in demand as prices drop[283]. - Credit risk exists due to concentration of receivables with a limited number of significant customers, which may adversely affect gross margin and cash flows if contracts are canceled[284]. - The company has experienced volatility in common stock prices, posing a risk for future equity funding efforts[285]. - Inflation impacts the company and its customers by increasing costs related to labor, laboratory supplies, consumables, and capital expenditures[286].