Danimer Scientific(US:DNMR)2024-08-08 20:59Financial Performance - Total revenue for Q2 2024 was $7,628,000, a decrease of 40.5% compared to $12,865,000 in Q2 2023[6] - Net loss for Q2 2024 was $22,661,000, compared to a net loss of $39,241,000 in Q2 2023, representing a 42.0% improvement[6] - Gross profit for Q2 2024 was a loss of $6.903 million, with a gross profit percentage of -90.5% compared to -51.1% in Q2 2023[89] - Operating expenses for Q2 2024 totaled $12.426 million, down from $24.553 million in Q2 2023, reflecting a reduction of $12.127 million[89] - Total revenue for 2024 was $17,852,000, a decrease of $6,939,000 (approximately 27.9%) compared to $24,791,000 in 2023[96] - Gross profit for 2024 was $(13,214,000), with a gross profit percentage of -74.0%, down from -51.8% in 2023[96] - Operating expenses decreased by $25,860,000 (approximately 51.2%) to $24,637,000 in 2024 from $50,497,000 in 2023[96] - Net loss for 2024 was $(49,924,000), an improvement of $25,956,000 compared to $(75,880,000) in 2023[96] Assets and Liabilities - Total current assets decreased to $86,874,000 as of June 30, 2024, down from $108,038,000 at December 31, 2023, a decline of 19.6%[5] - Total liabilities increased to $432,512,000 as of June 30, 2024, compared to $420,111,000 at December 31, 2023, an increase of 2.0%[5] - Total assets decreased to $666,540,000 as of June 30, 2024, down from $698,131,000 at December 31, 2023, a decline of 4.5%[5] - Total long-term debt increased from $381,436,000 as of December 31, 2023, to $386,910,000 as of June 30, 2024, an increase of 1.2%[31] Cash Flow and Liquidity - Cash and cash equivalents decreased to $40,254,000 as of June 30, 2024, down from $59,170,000 at December 31, 2023, a decline of 31.9%[5] - Cash used in operating activities increased to $31.96 million in Q2 2024 from $21.15 million in Q2 2023, indicating a 51.5% rise in cash outflow[9] - The company has $40.3 million in unrestricted cash resources and $27.4 million in working capital as of June 30, 2024, sufficient to meet liquidity requirements for over one year[13] - Net cash provided by financing activities was $16,648,000 in 2024, a decrease from $85,029,000 in 2023[110] Revenue Breakdown - Domestic revenue for the three months ended June 30, 2024, was $7.403 million, down from $12.520 million in the same period of 2023[53] - PHA-based product sales in Q2 2024 were $5.9 million, a decrease of $2.5 million or 30% year-over-year, representing 81% of product revenues[89] - PLA-based product sales in Q2 2024 were $1.4 million, down $2.4 million compared to the prior year quarter, impacted by the Ukraine conflict[89] - PHA-based product sales for the six-month period ended June 30, 2024, increased by 4.9% to $14.1 million, representing 82% of product revenues[95] - PLA-based product sales for the six-month period ended June 30, 2024, decreased by $6.7 million to $3.1 million, also affected by the Ukraine conflict[95] Strategic Actions and Future Outlook - The company temporarily suspended its Danimer Catalytic Technologies business to conserve capital, with expectations of additional charges in Q3 2024[12] - The company anticipates spending between $140 million to $220 million on a commercial Rinnovo plant, with a total production capacity expected to reach approximately 330 million pounds[88] - The Greenfield Facility in Bainbridge, Georgia, has a planned annual production capacity of approximately 125 million pounds, with total estimated costs ranging from $515 million to $665 million[88] - The company is focusing on expanding its PHA-based resin products in response to increasing demand for non-petroleum-based plastics[14] - The company anticipates that ramping up PHA sales and production will take time, impacting short-term revenue generation[14] Stock and Legal Matters - The company was notified by NYSE Regulation on May 21, 2024, that it was not in compliance with the NYSE's continued listing criteria due to an average closing price of its Common Stock being less than $1.00 over a 30-day period[118] - The company is subject to a 180-day cure period to address the non-compliance, which may require a reverse-stock split pending stockholder approval[118] - The company faced multiple class action lawsuits related to alleged violations of federal securities laws, with a court granting a motion to dismiss on September 30, 2023[77] - The company is subject to various legal proceedings, with no losses accrued as of June 30, 2024, due to the inability to estimate the likelihood or amount of loss[78]