Origin Materials(US:ORGN)2025-05-15 20:07Financial Performance - Total revenues for Q1 2025 were $5,430,000, a decrease of 20.5% compared to $6,825,000 in Q1 2024[16]. - Net loss for Q1 2025 was $26,441,000, compared to a net loss of $13,913,000 in Q1 2024, representing an increase in loss of 90.5%[16]. - Operating expenses in Q1 2025 totaled $32,736,000, up 80.6% from $18,135,000 in Q1 2024, primarily due to increased research and development costs[16]. - Loss from operations for the three months ended March 31, 2025, was $32.62 million, compared to a loss of $17.99 million in the prior year[94]. - The company reported a net loss of $26.4 million for the three months ended March 31, 2025, compared to a net loss of $13.9 million for the same period in 2024, resulting in a basic and diluted net loss per share of $0.18[108]. Cash and Assets - Cash and cash equivalents decreased to $43,835,000 as of March 31, 2025, down from $56,307,000 at the end of 2024, a decline of 22.2%[13]. - Total assets decreased to $348,977,000 as of March 31, 2025, down from $378,027,000 at the end of 2024, a reduction of 7.7%[13]. - Total current assets decreased to $119,509,000 as of March 31, 2025, down from $139,174,000 as of December 31, 2024, a decline of 14.1%[14]. - The company’s total liabilities decreased to $34,369,000 as of March 31, 2025, down from $39,662,000 at the end of 2024, a decline of 13.0%[13]. - The total stockholders' equity as of March 31, 2025, was $314,608,000, down from $338,365,000 at the end of 2024, a decrease of 7.0%[14]. Research and Development - Research and development expenses for Q1 2025 were $3,301,000, a decrease of 43.3% from $5,819,000 in Q1 2024[16]. - The company recorded an impairment charge of $16,610 thousand during the three months ended March 31, 2025, related to long-lived assets[41]. - The company received zero funding under the Canadian government R&D program for the three months ended March 31, 2025, compared to $8.1 million received in the same period in 2024, marking a decrease of 100%[77]. Revenue Recognition - Revenue is recognized upon shipment for product sales, while service agreements generate revenue over the period services are performed[58]. - The Company’s revenue recognition follows ASC 606, ensuring that revenue reflects the consideration expected in exchange for goods or services[45]. - The Company has zero deferred revenue for the three months ended March 31, 2025, as it did not receive payment before the provision of services[59]. Marketable Securities - The Company recorded a total fair value of $69,564,000 for its financial assets as of March 31, 2025, which includes $30,351,000 in cash equivalents and $39,213,000 in marketable securities[60]. - The company sold marketable securities for proceeds of $282.4 million during the three months ended March 31, 2025, realizing a loss of $0.1 million, consistent with the loss reported for the same period in 2024[66]. - The aggregate fair value of marketable securities in an unrealized loss position was $23.0 million as of March 31, 2025, down from $26.6 million as of December 31, 2024, indicating a reduction of approximately 13.5%[66]. Stock and Equity - The weighted-average common shares outstanding for Q1 2025 were 146,852,340, an increase from 141,828,895 in Q1 2024[16]. - The total remaining compensation expense for RSU awards to be recognized under the 2021 Equity Incentive Plan is $12.6 million, expected to be recognized over an estimated weighted average period of 1.4 years[90]. - The company has 1,058,231 options to purchase common stock and 2,124,255 performance-based stock awards outstanding as of March 31, 2025, which are excluded from diluted net loss per share calculations[109]. Legal and Compliance - The company is currently facing litigation related to a securities class action and derivative complaints, which may have uncertain financial impacts[106][107]. - The Company is involved in derivative complaints filed by shareholders against current and former directors, which may lead to unspecified damages and governance changes[107]. Business Developments - The company completed the mechanical construction of its first furanics manufacturing plant in Ontario, Canada, which is currently operating on demand[25]. - Origin announced its PET closures business in August 2023, with mass production partnerships established in Europe and North America[24]. - The first PET closure manufacturing system, "CapFormer," successfully completed its Factory Acceptance Test in September 2024[24].