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Origin Materials(ORGN) - 2024 Q3 - Quarterly Report
ORGNOrigin Materials(ORGN)2024-11-14 21:03
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Financial Performance - Total revenues for Q3 2024 were 8,202,000,anincreaseof158,202,000, an increase of 15% compared to 7,140,000 in Q3 2023[7] - Product revenues for the nine months ended September 30, 2024, reached 22,057,000,upfrom22,057,000, up from 14,229,000 in the same period last year, representing a 55% increase[7] - The company reported a net loss of 36,763,000forQ32024,comparedtoanetincomeof36,763,000 for Q3 2024, compared to a net income of 30,931,000 in Q3 2023[7] - Operating expenses for Q3 2024 totaled 32,466,000,significantlyhigherthan32,466,000, significantly higher than 12,946,000 in Q3 2023, reflecting a 150% increase[7] - For the nine months ended September 30, 2024, the net loss was 70,175,asignificantdecreasefromanetincomeof70,175, a significant decrease from a net income of 34,236 for the same period in 2023[10] - The company reported a net income of 30,931forthequarterendingJune30,2023,comparedtoanetlossof30,931 for the quarter ending June 30, 2023, compared to a net loss of 6,464 for the previous quarter[8] - The net loss for Q3 2024 was 36,763,000,comparedtoanetincomeof36,763,000, compared to a net income of 30,931,000 in Q3 2023[7] - The net loss for the nine months ended September 30, 2024, was 70.175million,comparedtoanetincomeof70.175 million, compared to a net income of 34.236 million for the same period in 2023[10] Cash and Assets - Cash and cash equivalents decreased to 56,396,000asofSeptember30,2024,downfrom56,396,000 as of September 30, 2024, down from 75,502,000 at the end of 2023[6] - Total assets decreased to 399,555,000asofSeptember30,2024,comparedto399,555,000 as of September 30, 2024, compared to 461,834,000 at the end of 2023[6] - The company’s accumulated deficit increased to (24,605,000)asofSeptember30,2024,from(24,605,000) as of September 30, 2024, from 45,570,000 at the end of 2023[6] - The total stockholders' equity decreased to 358,856,000asofSeptember30,2024,downfrom358,856,000 as of September 30, 2024, down from 422,507,000 at the end of 2023[6] - The company reported cash and cash equivalents of 56.4millionasofSeptember30,2024,downfrom56.4 million as of September 30, 2024, down from 75.5 million as of December 31, 2023[18] - As of September 30, 2024, accounts receivable totaled 18.649million,withaprovisionforcreditlossesof18.649 million, with a provision for credit losses of 730,000, resulting in net accounts receivable of 17.919million[25]−Thetotalfairvalueoffinancialassetswas17.919 million[25] - The total fair value of financial assets was 97.09 million, with cash equivalents at 40.08millionandmarketablesecuritiesat40.08 million and marketable securities at 56.99 million[55] Expenses and Impairments - Research and development expenses for the nine months ended September 30, 2024, were 15,338,000,slightlydownfrom15,338,000, slightly down from 15,398,000 in the same period last year[7] - The company reported an impairment of assets amounting to 15,170,000inQ32024[7]−Thecompanyrecordedanimpairmentlossof15,170,000 in Q3 2024[7] - The company recorded an impairment loss of 12.3 million related to capitalized costs for the Origin 2 project, which were deemed not recoverable as of September 30, 2024[33] - Depreciation and amortization expense for the nine months ended September 30, 2024, totaled 7.9million,comparedto7.9 million, compared to 1.0 million for the same period in 2023[65] Stock and Equity - The weighted-average common shares outstanding for Q3 2024 were 143,387,618, compared to 139,806,045 in Q3 2023[7] - The Company has a total of 24,149,960 Public Warrants and 11,326,667 Private Placement Warrants outstanding as of September 30, 2024, with an exercise price of 11.50pershare[34]−TheCompanyhasnotdeclaredcommonstockdividendsanddoesnotanticipatedeclaringanyintheforeseeablefuture[43]−TheCompanyhaspotentialdilutivesecuritiestotaling25millionearnoutsharesthatwereexcludedfromthedilutednetlosspersharecalculationduetoperformanceconditionsnotbeingmet[95]−TheCompanyrecordedatotalworkforcereductionchargeof11.50 per share[34] - The Company has not declared common stock dividends and does not anticipate declaring any in the foreseeable future[43] - The Company has potential dilutive securities totaling 25 million earnout shares that were excluded from the diluted net loss per share calculation due to performance conditions not being met[95] - The Company recorded a total workforce reduction charge of 0.6 million in September 2024, which included 0.5millionincashexpendituresforemployeeseparationcosts[86]BusinessOperationsandDevelopments−OriginMaterialsachievedmechanicalcompletionofitsfirstfuranicsmanufacturingplantinOntario,Canada,whichiscurrentlyoperatingondemandwithreducedstaffing[11]−ThecompanyannounceditsPETcapsandclosuresbusinessinAugust2023,withmassproductionpartnershipsestablishedinEuropeandNorthAmerica[11]−ThefirstPETclosuremanufacturingsystemsuccessfullycompleteditsFactoryAcceptanceTestinSeptember2024[11]−Thecompanyisexploringvariousplantdesignsandpotentialsitesforscalingupbiomassconversiontechnology,withtimelinesdependingonpartneragreements[11]−Thecompanymaintainsanallowanceforcreditlossesbasedonhistoricallosspatternsandevaluatespotentialrisksassociatedwithaccountsreceivable[17]LegalandRegulatoryMatters−TheCompanyisfacinglegalproceedingsrelatedtoasecuritiesclassactioncomplaintfiledbyshareholders,allegingviolationsoffederalsecuritieslaws[92]TaxandAccounting−TheCompanyrecordedanincometaxprovisionof0.5 million in cash expenditures for employee separation costs[86] Business Operations and Developments - Origin Materials achieved mechanical completion of its first furanics manufacturing plant in Ontario, Canada, which is currently operating on demand with reduced staffing[11] - The company announced its PET caps and closures business in August 2023, with mass production partnerships established in Europe and North America[11] - The first PET closure manufacturing system successfully completed its Factory Acceptance Test in September 2024[11] - The company is exploring various plant designs and potential sites for scaling up biomass conversion technology, with timelines depending on partner agreements[11] - The company maintains an allowance for credit losses based on historical loss patterns and evaluates potential risks associated with accounts receivable[17] Legal and Regulatory Matters - The Company is facing legal proceedings related to a securities class action complaint filed by shareholders, alleging violations of federal securities laws[92] Tax and Accounting - The Company recorded an income tax provision of 0.2 million and $0.4 million during the three and nine months ended September 30, 2024, respectively[87] - The Company has a full valuation allowance on its net deferred tax assets in the U.S. due to operating losses since inception[87] - The Company does not expect the adoption of new accounting guidance to have a material impact on its consolidated financial statements, aside from additional disclosures[52]