PureCycle Technologies(US:PCT)2025-11-06 21:23Financial Performance - Total revenues for the three months ended September 30, 2025, were $2.43 million, compared to $0 for the same period in 2024[11] - Operating loss for the three months ended September 30, 2025, was $38.93 million, an increase from a loss of $31.30 million in the same period of 2024[11] - Net loss for the nine months ended September 30, 2025, was $163.78 million, compared to a net loss of $224.46 million for the same period in 2024[11] - The company reported a basic loss per share of $0.19 for the three months ended September 30, 2025, compared to $0.54 for the same period in 2024[11] - For the nine months ended September 30, 2025, the net loss was $163,778,000, compared to a net loss of $224,458,000 for the same period in 2024, indicating a 27% improvement in net loss year-over-year[21] - The company reported net cash used in operating activities of $114,052,000 for the nine months ended September 30, 2025, slightly higher than $112,985,000 for the same period in 2024[21] - The company recorded total depreciation expense of $21.9 million for the nine months ended September 30, 2025, compared to $23.9 million for the same period in 2024[55] - The net loss for the three months ended September 30, 2025, was $28.370 million, compared to a net loss of $90.639 million for the same period in 2024[201] - Basic net loss attributable to common stockholders for the nine months ended September 30, 2025, was $169.705 million, compared to $224.458 million for the same period in 2024[201] - The diluted net loss per share attributable to common stockholders for the three months ended September 30, 2025, was $(0.31), compared to $(0.54) for the same period in 2024[201] Cash and Liquidity - Cash and cash equivalents increased to $234.36 million as of September 30, 2025, up from $15.68 million at December 31, 2024[10] - Cash and cash equivalents and restricted cash at the end of the period totaled $247,253,000, a significant increase from $93,653,000 at the end of the same period in 2024, representing a 164% increase[21] - The company has alleviated previous concerns regarding its ability to continue as a going concern for at least the next twelve months due to improved financial conditions[42] - The Company is currently evaluating different strategies to further increase its liquidity position[42] - The Company currently has a $200.0 million Revolving Credit Facility, with a recent borrowing of $10.0 million at an interest rate of 21.8%[46] - The company has a $200.0 million Revolving Credit Facility, with no amounts drawn as of September 30, 2025[76] Assets and Liabilities - Total assets reached $989.12 million as of September 30, 2025, compared to $798.39 million at December 31, 2024[10] - Total current liabilities increased to $118.40 million as of September 30, 2025, from $90.88 million at December 31, 2024[10] - The company’s accumulated deficit increased to $797.15 million as of September 30, 2025, from $633.38 million at December 31, 2024[10] - Total stockholders' equity decreased to $68.22 million as of September 30, 2025, from $180.45 million at December 31, 2024[10] - Long-term debt increased to $308.1 million as of September 30, 2025, compared to $294.3 million at December 31, 2024[58] - Accrued expenses and other current liabilities totaled $23.5 million as of September 30, 2025, a decrease from $43.3 million as of December 31, 2024[56] Equity and Stock - The Company raised $300,000,000 from the issuance of Series B Convertible Perpetual Preferred Stock during the nine months ended September 30, 2025[21] - The Company raised approximately $300.0 million from the sale of 300,000 shares of Series B Convertible Perpetual Preferred Stock at an initial issue price of $1,000 per share[41] - The Series B Convertible Perpetual Preferred Stock is convertible into Common Stock at an initial conversion price of $14.02, representing a 30% premium to the 10-day volume weighted average price prior to the execution of the subscription agreements[113] - The Series A Preferred Stock has a dividend rate of 8% per annum, with $2.9 million recognized as interest expense during the three months ended September 30, 2025[127] - As of September 30, 2025, the liability for Series A Preferred Stock was $26.3 million, up from $18.4 million as of December 31, 2024[127] - The Company has a contingent put right associated with the Series A Preferred Stock, which had no fair value ascribed as of September 30, 2025[128] - As of September 30, 2025, the Company has 180.2 million shares of Common Stock issued and outstanding, up from 173.6 million shares as of December 31, 2024[134] - The Company raised approximately $33.0 million in gross proceeds from a private placement of 4,091,293 shares of Common Stock at a price of $8.0655 per share on February 5, 2025[135] - The Company is authorized to issue 25.0 million shares of preferred stock, with 0.4 million shares issued and outstanding as of September 30, 2025[137] - As of September 30, 2025, there are approximately 17.7 million shares available for issuance under the 2021 Equity Incentive Plan[140] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $4.38 million, slightly down from $4.94 million in the same period of 2024[11] - The Company allocated proceeds from the offering to various projects, including $62 million for PreP equipment and a research and development lab, as well as payments for long-lead items related to the Augusta Facility[81][83] - The Augusta Facility is currently in the engineering and design validation phase, focusing on operational optimization and efficiency[85] Legal and Regulatory - The Company is involved in ongoing legal proceedings, including an arbitration demand seeking approximately $17.0 million related to construction activities at the Ironton Facility[100] - The Company has determined that it requires a full valuation allowance for net deferred tax assets, resulting in no reported tax expense for the three and nine months ended September 30, 2025[94] Inventory - The Company’s total inventory increased to $10,725,000 as of September 30, 2025, compared to $8,087,000 as of December 31, 2024, reflecting a rise in raw materials and finished goods[53] - The Company’s inventory includes $5,487,000 in raw materials, $370,000 in work in process, and $4,868,000 in finished goods as of September 30, 2025[53] Compensation and Warrants - Equity-based compensation increased to $12,668,000 for the nine months ended September 30, 2025, compared to $8,637,000 for the same period in 2024, reflecting a 47% increase[21] - Total equity-based compensation expense for the nine months ended September 30, 2025, was $12.7 million, compared to $8.7 million for the same period in 2024[155] - The Company has 31,735 thousand warrants outstanding as of September 30, 2025, down from 33,351 thousand as of December 31, 2024[156] - The Company may redeem outstanding warrants at a price of $0.01 per warrant if the last sale price of the Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30-day trading period[159]