Financial Performance - For the three months ended September 30, 2024, the company reported revenue of $9.943 million, a decrease of 49% compared to $19.605 million in the same period of 2023[223]. - The net loss for the three months ended September 30, 2024, was $(57.431) million, representing a 127% increase in losses compared to $(25.326) million for the same period in 2023[223]. - For the nine months ended September 30, 2024, total revenue was $37.562 million, down 11% from $42.168 million in the same period of 2023[227]. - Total revenue decreased by $9.7 million, or 49%, in Q3 2024 compared to Q3 2023, primarily due to a $6.1 million decrease in revenue from engineering and other services contracts[252]. - Total revenue decreased by $4.6 million, or 11%, in the nine months ended September 30, 2024, compared to the same period in 2023, primarily driven by an $11.1 million decrease in revenue from engineering and other services[261]. Revenue Breakdown - One-time revenue for the three months ended September 30, 2024, was $8.414 million, a decrease of 53% from $18.075 million in the same period of 2023[223]. - Recurring revenue for the nine months ended September 30, 2024, increased by 183% to $10.631 million from $3.762 million in the same period of 2023[227]. Costs and Expenses - The cost of revenues (excluding depreciation) for the three months ended September 30, 2024, was $(8.141) million, a decrease of 43% from $(14.371) million in the same period of 2023[223]. - Cost of revenue decreased by $6.2 million, or 43%, in Q3 2024 compared to Q3 2023, driven by a $5.1 million decrease in cost of sales for engineering and other services[254]. - Cost of revenue decreased by $12.6 million, or 38%, in the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to a $12.7 million decrease in cost of sales for engineering and other services[262]. - Research and development expenses increased by $5.4 million, or 32%, in Q3 2024 compared to Q3 2023, mainly due to a $4.9 million increase in R&D services related to project development costs[255]. - Research and development expenses increased by $8.7 million, or 17%, in the nine months ended September 30, 2024, primarily due to a $9.1 million increase in external R&D services[263]. - Selling, general and administrative expenses decreased by $0.4 million, or 3%, in Q3 2024 compared to Q3 2023, primarily due to a decrease in professional services fees[256]. - Selling, general and administrative expenses decreased by $6.9 million, or 17%, in the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to a decrease in professional fees associated with the Business Combination[264]. Cash Flow and Liquidity - As of September 30, 2024, LanzaTech's cash, cash equivalents, and restricted cash decreased by $15.3 million, or 20%, compared to December 31, 2023, primarily due to funding net losses and capital expenditures[267]. - For the nine months ended September 30, 2024, net cash used in operating activities was $(69,384) thousand, a decrease of $12,181 thousand or 15% compared to $(81,565) thousand in the same period of 2023[290][291]. - Net cash provided by investing activities was $14,130 thousand for the nine months ended September 30, 2024, compared to net cash used of $(56,495) thousand in 2023, primarily due to the absence of $(43,900) thousand in debt securities purchases from the prior period[290][292]. - Net cash from financing activities was $40,224 thousand for the nine months ended September 30, 2024, a decrease of $107,048 thousand or 73% compared to $147,272 thousand in 2023, driven by the prior period's $213,400 thousand from the Business Combination[290][293]. - LanzaTech's existing cash and cash equivalents are believed to be sufficient to fund operations for the next 12 months, but liquidity assumptions may prove incorrect[286]. - The company may seek additional financing to meet operating requirements, which could lead to dilution for existing stockholders if equity is issued[287]. Debt and Financing - The company issued and sold $40.2 million of convertible notes as part of a Convertible Note Purchase Agreement, with a total potential of up to $150 million[280]. - The Convertible Note bears an interest rate of 8.00% per annum and matures on August 6, 2029[281]. - LanzaTech's outstanding debt includes the Convertible Note, Brookfield SAFE, and other liabilities as of September 30, 2024[273]. - The company is obligated to pay approximately $4.2 million to Vellar due to an event of default under the Forward Purchase Agreement[278]. Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2024, was $(27.081) million, a 42% increase in losses compared to $(19.062) million for the same period in 2023[223]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(66,981) thousand, slightly higher than $(66,398) thousand in 2023[304][305]. Other Financial Information - The company had an accumulated deficit of $(942.6) million as of September 30, 2024, compared to $(831.9) million as of December 31, 2023[217]. - Foreign currency translation adjustments were $0.2 million for the nine months ended September 30, 2024, compared to $1.0 million in 2023[310]. - The fair value of the Convertible Note was estimated using a binomial lattice model as of September 30, 2024, reflecting market interest rates and other assumptions[296]. - The company does not engage in speculative transactions or use financial instruments for trading purposes, limiting its market risk exposure[308]. - The company is subject to credit risk due to concentration of receivables with a limited number of significant customers, which could adversely affect gross margin and cash flows[313]. Capacity Expansion - The company’s capacity increased from 244,000 tonnes per annum as of September 30, 2023, to 308,000 tonnes per annum as of September 30, 2024, reflecting an addition of 64,000 tonnes[231]. Business Strategy - The company is focused on expanding its technology licensing business model to include greater ownership and operatorship in the biorefining value chain[216].
AMCI ACQUISITION(AMCI) - 2024 Q3 - Quarterly Report