LanzaTech (LNZA) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, total revenue was $9.48 million, a decrease of 7% compared to$ 10.24 million in the same period of 2024[226]. - Net loss for the three months ended March 31, 2025, was $19.23 million, representing a 24.6% improvement from a net loss of$ 25.51 million in the prior year[230]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(30.51) million, a decline of 38% from$ (22.15) million in the prior year[226]. - Total revenue decreased by $0.8 million, or 7.4%, for the three months ended March 31, 2025, compared to the prior year period[231]. - Engineering and other services revenue decreased by$ 2.7 million, while CarbonSmart sales increased by $3.3 million[231]. - Operating expenses for the three months ended March 31, 2025, totaled$ 33.02 million, an increase of 11.5% from $29.63 million in the same period of 2024[230]. - SG&A expenses increased by$ 4.7 million, or 42.7%, primarily due to higher professional fees[234]. - R&D expenses decreased by $0.6 million, or 3.3%, mainly due to a reduction in consumables and facilities expenses[233]. - Cash flows used in operating activities decreased by$ 7.2 million, or 25%, in the three months ended March 31, 2025, compared to the same period in 2024[264]. - The company provided $4.3 million in net cash from investing activities for the three months ended March 31, 2025, down from$ 9.2 million in the same period in 2024[265]. Revenue Sources - Recurring revenue increased by 115% to $1.21 million for the three months ended March 31, 2025, compared to$ 0.56 million in the same period of 2024[226]. - Cost of revenues increased by $0.7 million, or 11.0%, primarily due to increased sales of CarbonSmart products[232]. Cash and Liquidity - Cash and cash equivalents decreased by$ 29.7 million, or 64.9%, primarily due to funding net losses and loan repayments[239]. - As of March 31, 2025, the company reported cash and cash equivalents of $13.8 million, short-term held-to-maturity debt securities of$ 7.4 million, and an accumulated deficit of $(988.8) million[256]. - The company is projecting that its existing cash and short-term debt securities will not be sufficient to fund operations through the next twelve months, raising substantial doubt about its ability to continue as a going concern[257]. - Held-to-maturity security investments totaled$ 7.4 million as of March 31, 2025, down from $12.4 million as of December 31, 2024[240]. Financing Activities - The Company entered into a Series A Convertible Senior Preferred Stock Purchase Agreement on May 7, 2025, raising$ 40 million[221]. - The Company plans to pursue a Subsequent Financing of $35 million to$ 60 million at a price per share of $0.05, subject to stockholder approvals[224]. - The company entered into a Loan Agreement with Brookfield, resulting in a loan of approximately$ 60 million, which includes an initial principal payment of $12.5 million[254]. - The company agreed to issue and sell 20,000,000 shares of Series A Preferred Stock for an aggregate purchase price of$ 40 million[259]. - The company plans to pursue capital raising and other strategic options to enhance liquidity[258]. Operational Developments - The Company launched CirculAir™, a new joint offering for sustainable aviation fuel and renewable diesel, in June 2024[217]. - The Company has established multiple commercial plants globally, including in China, India, and Belgium, with ongoing developments in various countries[217]. Other Income and Expenses - Interest income, net decreased by $0.7 million due to lower cash balances[235]. - Other income, net increased by$ 17.7 million, driven by a $34.3 million gain from the decrease in fair value of the Convertible Note[236]. - The company repaid$ 12.5 million of the Brookfield Loan during the three months ended March 31, 2025[266].