LanzaTech (US:LNZA)2024-08-08 10:16Revenue Performance - For the three months ended June 30, 2024, total revenue was $17,375 thousand, a 35% increase from $12,917 thousand in the same period of 2023[161]. - For the six months ended June 30, 2024, total revenue was $27,619 thousand, representing a 22% increase from $22,563 thousand in the same period of 2023[163]. - Recurring revenue for the three months ended June 30, 2024, was $8,541 thousand, a significant increase of 486% from $1,458 thousand in the same period of 2023[161]. - Total revenue increased by $4.5 million, or 35%, to $17.375 million for the three months ended June 30, 2024, compared to $12.917 million in the same period in 2023[186]. - Total revenue for the six months ended June 30, 2024, increased by $5.1 million, or 22%, to $27.619 million compared to $22.563 million in the same period in 2023[195]. Net Loss and Financial Improvement - The net loss for the six months ended June 30, 2024, was $(53.3) million, a 41% improvement compared to a net loss of $(90.1) million for the same period in 2023[157]. - Net loss for the three months ended June 30, 2024, was $27.799 million, compared to a net loss of $26.786 million in the same period in 2023, representing an increase of $1.013 million, or 4%[185]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(39,901) thousand, an improvement of 16% compared to $(47,336) thousand for the same period in 2023[163]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(53.3) million, an improvement from $(90.1) million in the same period of 2023[236]. Cost Management - The cost of revenues (excluding depreciation) for the six months ended June 30, 2024, was $(12,261) thousand, a decrease of 34% from $(18,617) thousand in the same period of 2023[163]. - Cost of revenue decreased by $5.3 million, or 49%, to $5.491 million for the three months ended June 30, 2024, compared to $10.827 million in the same period in 2023[187]. - Cost of revenue for the six months ended June 30, 2024, decreased by $6.4 million, or 34%, to $12.261 million compared to $18.617 million in the same period in 2023[196]. - Selling, general and administrative expenses decreased by $0.7 million, or 6%, to $11.747 million for the three months ended June 30, 2024, compared to $12.452 million in the same period in 2023[190]. - SG&A expenses decreased by $6.5 million, or 22%, in the first half of 2024 compared to the same period in 2023, mainly due to a $3.1 million reduction in professional fees related to the Business Combination[199]. Research and Development - Research and development expenses increased by $2.6 million, or 14%, to $21.481 million for the three months ended June 30, 2024, compared to $18.908 million in the same period in 2023[189]. - R&D expenses increased by $3.3 million, or 10%, in the first half of 2024 compared to the same period in 2023, primarily due to a $4.1 million increase in external R&D services[198]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash decreased by $13.4 million, or 18%, from $76.3 million as of December 31, 2023, to $62.9 million as of June 30, 2024[202]. - The company reported cash flows used in operating activities decreased by $16.2 million or 27% for the six months ended June 30, 2024, compared to the same period in 2023[225]. - Net cash provided by investing activities was $29.5 million for the six months ended June 30, 2024, a significant improvement from net cash used of $(59.9) million in the same period of 2023[226]. - Net cash used in financing activities was immaterial for the six months ended June 30, 2024, compared to $146.7 million provided in the same period of 2023, primarily due to proceeds from the Business Combination[228]. - As of June 30, 2024, the company believes its existing cash and cash equivalents will be sufficient to fund operations for the next 12 months[222]. Business Developments - The company launched CirculAir™, a new joint offering to produce sustainable aviation fuel and renewable diesel from waste feedstocks[156]. - The company completed a Business Combination on February 8, 2023, resulting in cash proceeds of $153.3 million[209]. - The company entered into a Convertible Note Purchase Agreement on August 5, 2024, agreeing to sell up to $150 million in Convertible Notes, with $40.2 million issued as of August 6, 2024[214]. - The company has the right to offer and sell shares of common stock with an aggregate offering price of up to $100 million through an At Market Issuance Sales Agreement[212]. Risks and Challenges - The company expects to continue generating operating losses and net cash outflows from operating activities in the near term[220]. - The company may require additional financing to meet operating requirements, which could lead to dilution for existing stockholders if equity is issued[223]. - The company is exposed to interest rate sensitivity, which could affect its cash equivalents and debt security investments[237]. - The company does not engage in hedging or derivative transactions related to commodity prices, which may impact demand for its CarbonSmart products indirectly[240]. - Company is subject to credit risk due to concentration of receivables with a limited number of significant customers, which may adversely affect gross margin and cash flows if defaults occur[241]. - Company has experienced volatility in the price of its common stock, posing a risk for future equity funding if acceptable prices cannot be achieved[242]. - Inflation impacts the company and its customers by increasing costs related to labor, laboratory supplies, consumables, and capital expenditures, potentially affecting business operations materially[243].