LanzaTech (US:LNZA)2024-11-08 13:32Financial Performance - Third-quarter 2024 revenue was $9.9 million, down from $19.6 million in third-quarter 2023, primarily due to a timing delay in a sublicensing event expected to generate approximately $8.0 million[6]. - The net loss for third-quarter 2024 was $(57.4) million, compared to $(25.3) million in third-quarter 2023, largely due to non-cash expenses on financial instruments and reduced revenue[12]. - Adjusted EBITDA loss for third-quarter 2024 was $(27.1) million, compared to $(19.1) million in third-quarter 2023, reflecting the same revenue reduction factors[13]. - Total revenue for Q3 2024 was $9,943,000, a decrease of 49.3% compared to $19,605,000 in Q3 2023[38]. - Revenue from contracts with customers and grants was $5,199,000, down from $14,162,000 year-over-year[38]. - The company reported a loss from operations of $32,957,000 for Q3 2024, compared to a loss of $24,595,000 in Q3 2023[38]. - The total net loss for the year ending September 2024 was $110,738 thousand, compared to $115,424 thousand for the same period in 2023[45]. Expenses and Liabilities - Operating expenses for third-quarter 2024 were $34.8 million, up from $29.8 million in third-quarter 2023, driven by project-related expenses[11]. - Research and development expenses increased to $22,006,000 from $16,645,000, representing a 32.5% increase[38]. - Total liabilities increased significantly to $202.6 million from $127.2 million, marking an increase of approximately 59%[36]. - The company reported a current liability total of $46.9 million, up from $27.8 million, indicating an increase of approximately 68.8%[36]. - Total cost and operating expenses decreased to $42,900,000 from $44,200,000 year-over-year, reflecting cost management efforts[38]. Cash and Investments - The company had $89.1 million in total cash and investments as of September 30, 2024, an increase from $75.8 million at the end of the previous quarter[20]. - Cash and cash equivalents decreased to $58.7 million from $75.6 million, a reduction of about 22.3%[36]. - Cash and cash equivalents at the end of the period were $60,967,000, down from $92,070,000 at the end of Q3 2023[41]. - Cash used in operating activities for the nine months ended September 30, 2024, was $69,384,000, an improvement from $81,565,000 in the same period of 2023[41]. Strategic Initiatives - The company is expanding its business model to include more project ownership and financing, aiming to enhance cash flow generation and profitability[4]. - LanzaTech is actively evaluating material cost reduction opportunities and reallocating resources to accelerate commercial activities[2]. - The company continues to focus on its strategic initiatives despite the financial losses reported[46]. Future Projects and Revenue Drivers - The company entered into a two-stage ethanol off-take agreement with ArcelorMittal, which includes a one-year contract with potential revenue of $6.0 million and a five-year contract potentially generating $10.0 million to $20.0 million annually[15]. - Fourth-quarter 2024 potential revenue drivers include approximately $20.0 million from a project in Norway and $4.0 million from Project SECURE[22]. - Project Drake, an EU-based ethanol-to-sustainable aviation fuel project, is expected to produce 30 million gallons per year and is anticipated to reach Final Investment Decision (FID) in 2025[16]. Adjusted EBITDA and Financial Metrics - Adjusted EBITDA is used as a key measure to evaluate operating performance, although it is not prepared in accordance with US GAAP[31]. - LanzaTech's management emphasizes that adjusted EBITDA helps identify underlying trends in business performance[32]. - The accumulated deficit grew to $(942.6) million as of September 30, 2024, compared to $(831.9) million at the end of 2023, reflecting an increase of about 13.3%[36]. One-time Costs and Regulatory Matters - One-time costs related to the Business Combination amounted to $410 thousand in the current period, with total non-recurring regulatory costs of $4,472 thousand[46]. - The company expects that the one-time costs related to the Business Combination will not recur in the future[46]. - Regulatory matters included fees related to non-recurring items during the year ended December 31, 2023[46].