Origin Materials(ORGN) - 2024 Q3 - Quarterly Results

Financial Performance - Origin Materials reported quarterly revenue of $8.2 million for Q3 2024, an increase from $7.1 million in the prior-year period[4]. - The net loss for Q3 2024 was $36.8 million, compared to a net income of $30.9 million in the prior-year period, largely due to non-cash gains in the previous year[9]. - Adjusted EBITDA loss for Q3 2024 was $12.0 million, an increase from $9.5 million in the prior-year period, primarily due to higher general and administrative expenses[11]. - Total revenues for the three months ended September 30, 2024, were $8,202,000, an increase from $7,140,000 in the same period of 2023, representing a growth of approximately 14.9%[27]. - Product revenues increased to $8,202,000 for the three months ended September 30, 2024, compared to $6,358,000 in the prior year, reflecting a growth of about 29%[27]. - The company reported a net loss of $36,763,000 for the three months ended September 30, 2024, compared to a net income of $30,931,000 in the same period of 2023[27]. - Net loss for the nine months ended September 30, 2024, was $70,175 thousand, compared to a net income of $34,236 thousand for the same period in 2023[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(37,767) thousand, compared to $(30,870) thousand for the same period in 2023[29]. Cash and Assets - Cash, cash equivalents, and marketable securities totaled $113.4 million as of September 30, 2024[7]. - Total current assets decreased to $141,393,000 as of September 30, 2024, down from $187,112,000 at the end of 2023, a decline of approximately 24.4%[26]. - The company’s cash and cash equivalents decreased to $56,396,000 as of September 30, 2024, down from $75,502,000 at the end of 2023, a reduction of approximately 25.3%[26]. - Cash and cash equivalents at the end of the period were $56,396 thousand, down from $66,106 thousand at the end of September 30, 2023[28]. Operating Expenses - Operating expenses surged to $32,466,000 for the three months ended September 30, 2024, compared to $12,946,000 in the prior year, marking an increase of approximately 150%[27]. - Research and development expenses were $5,127,000 for the three months ended September 30, 2024, compared to $4,927,000 in the same period of 2023, indicating a rise of about 4%[27]. - The company reported an impairment of assets amounting to $15,170,000 for the three months ended September 30, 2024[27]. - Impairment of assets recorded for the nine months ended September 30, 2024, amounted to $15,170 thousand, with no impairment reported in the prior year[29]. Future Outlook - The company maintains its 2024 revenue guidance of $25 million to $35 million and net cash burn guidance of $55 million to $65 million[13]. - Origin plans to have eight or more CapFormer Systems operational by the end of 2025, which is anticipated to meet the strong market demand for PET caps[3]. - The company is focusing on its caps and closures business to achieve profitability while operating its biomass conversion plant on a reduced scale to manage cash burn[6]. Product Development - The company achieved over 98% manufacturing efficiency during the Factory Acceptance Test of its first CapFormer System, which is expected to enable positive EBITDA by the first half of 2026[2][3]. - Origin's PET caps are currently being tested by multiple prospective customers with a total cap consumption exceeding 100 billion caps per year[2]. - Origin's CapFormer System represents a breakthrough in recycling circularity and packaging performance within a ~$65 billion market[16]. Market Activity - Net cash used in operating activities for the nine months ended September 30, 2024, was $45,123 thousand, slightly improved from $46,447 thousand in the prior year[28]. - Net cash provided by investing activities for the nine months ended September 30, 2024, was $19,458 thousand, compared to $4,450 thousand in the same period of 2023[28]. - The company reported a realized loss on marketable securities of $359 thousand for the nine months ended September 30, 2024, compared to a gain of $(1,706) thousand in the prior year[28]. - The company recorded a change in fair value of common stock warrants liability of $2,913 thousand for the nine months ended September 30, 2024, compared to a loss of $(27,438) thousand in the same period of 2023[28].