Financial Performance - For the three months ended March 31, 2025, total revenue was $9.48 million, a decrease of 7% compared to $10.24 million in the same period of 2024[226]. - The net loss for the three months ended March 31, 2025, was $19.23 million, representing a 24.6% improvement from a net loss of $25.51 million in the prior year[230]. - Recurring revenue increased by 115% to $1.21 million for the three months ended March 31, 2025, compared to $0.56 million in the same period of 2024[226]. - The Company reported a one-time revenue of $8.28 million for the three months ended March 31, 2025, down 15% from $9.68 million in the prior year[226]. - Total revenue decreased by $0.8 million, or 7.4%, for the three months ended March 31, 2025, compared to the prior year period[231]. - Engineering and other services revenue decreased by $2.7 million, while CarbonSmart sales increased by $3.3 million[231]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(30.5) million, compared to $(22.1) million for the same period in 2024[274]. Expenses and Costs - Operating expenses for the three months ended March 31, 2025, totaled $33.02 million, an increase of 11.5% from $29.63 million in the same period of 2024[230]. - Cost of revenues increased by $0.7 million, or 11.0%, primarily due to increased sales of CarbonSmart products[232]. - R&D expenses decreased by $0.6 million, or 3.3%, mainly due to a reduction in consumables and facilities expenses[233]. - SG&A expenses increased by $4.7 million, or 42.7%, primarily due to higher professional fees[234]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $29.7 million, or 64.9%, primarily due to funding net losses and loan repayments[239]. - As of March 31, 2025, the company reported cash and cash equivalents of $13.8 million, short-term held-to-maturity debt securities of $7.4 million, and an accumulated deficit of $(988.8) million[256]. - Cash flows used in operating activities decreased by $7.2 million, or 25%, in the three months ended March 31, 2025, compared to the same period in 2024[264]. - The company provided $4.3 million in net cash from investing activities for the three months ended March 31, 2025, down from $9.2 million in the same period in 2024[265]. - The company is projecting that its existing cash and short-term debt securities will not be sufficient to fund operations through the next twelve months, raising substantial doubt about its ability to continue as a going concern[257]. Financing Activities - The Company entered into a Series A Convertible Senior Preferred Stock Purchase Agreement on May 7, 2025, raising $40 million[221]. - The Company plans to pursue a Subsequent Financing of $35 million to $60 million at a price per share of $0.05, subject to stockholder approvals[224]. - The company entered into a Convertible Note Purchase Agreement for up to $150 million, with $40.2 million issued as of August 6, 2024[250]. - The company agreed to issue and sell 20,000,000 shares of Series A Preferred Stock for an aggregate purchase price of $40 million, which was consummated on the PIPE Closing Date[259]. Strategic Initiatives - The Company launched CirculAir™, a new joint offering for sustainable aviation fuel and renewable diesel in June 2024[217]. - The company is shifting its focus from R&D to global deployment of its technology and evaluating liquidity-enhancing initiatives[219]. - The company is focusing on streamlining business priorities and evaluating liquidity-enhancing initiatives, including capital raising and strategic partnerships[258]. Debt and Interest - The Brookfield Loan, totaling approximately $60 million, accrues interest at a rate of 8% per annum, compounded annually[254]. - The company repaid $12.5 million of the Brookfield Loan during the three months ended March 31, 2025[266]. - Interest income, net decreased by $0.7 million due to lower cash balances[235]. - Other income, net increased by $17.7 million, driven by a $34.3 million gain from the decrease in fair value of the Convertible Note[236]. Deficit and Accumulated Losses - The accumulated deficit as of March 31, 2025, was $988.8 million, up from $969.6 million as of December 31, 2024[218]. - The company incurred a net loss of $(19.2) million for the three months ended March 31, 2025, compared to a net loss of $(25.5) million for the same period in 2024, representing a decrease of approximately 24%[274].
AMCI ACQUISITION(AMCI) - 2025 Q1 - Quarterly Report