Origin Materials(US:ORGN)2025-11-13 21:17Financial Performance - Total revenues for Q3 2025 were $4.657 million, a decrease of 43.5% compared to $8.202 million in Q3 2024[15] - Net loss for Q3 2025 was $16.382 million, compared to a net loss of $36.763 million in Q3 2024, representing a 55.5% improvement[15] - Total revenues for the nine months ended September 30, 2025, were $15.9 million, down 27.7% from $22.1 million for the same period in 2024[96] - Loss from operations for the three months ended September 30, 2025, was $(16.9) million, compared to $(32.4) million for the same period in 2024[96] - Loss from operations for the nine months ended September 30, 2025, was $(64.5) million, a decrease from $(68.7) million for the same period in 2024[96] - The company reported a net loss of $55.6 million for the nine months ended September 30, 2025, compared to a net loss of $70.2 million for the same period in 2024[20] - Total comprehensive loss for Q3 2025 was $18.580 million, compared to $34.245 million in Q3 2024, indicating a 45.8% reduction in losses[15] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, were $9.907 million, down from $15.338 million in the same period of 2024, a reduction of 35.0%[15] - Operating expenses for Q3 2025 totaled $17.091 million, down from $32.466 million in Q3 2024, a reduction of 47.4%[15] - Research and development expenses for Q3 2025 were $3.328 million, down from $5.127 million in Q3 2024, a decrease of 35.1%[15] - The company incurred a net cash used in operating activities of $23.9 million for the nine months ended September 30, 2025[25] - The company recorded an impairment charge of $16.6 million related to long-lived assets during the nine months ended September 30, 2025[43] Assets and Liabilities - Total assets decreased to $327.345 million as of September 30, 2025, from $378.027 million as of December 31, 2024, a decline of 13.4%[14] - Cash and cash equivalents decreased to $34.061 million as of September 30, 2025, from $56.307 million as of December 31, 2024, a decrease of 39.4%[13] - Total stockholders' equity decreased to $294.987 million as of September 30, 2025, from $338.365 million as of December 31, 2024, a decline of 12.7%[14] - The company had total current liabilities of $13.287 million as of September 30, 2025, compared to $12.549 million as of December 31, 2024, an increase of 5.9%[13] - As of September 30, 2025, accounts receivable net was $15.5 million, down from $19.2 million as of December 31, 2024, reflecting a decrease of approximately 19%[37] - Inventory as of September 30, 2025, totaled $635,000, a decrease of approximately 27% from $866,000 as of December 31, 2024[38] Financing and Funding - The company is evaluating additional strategies to obtain funding for future operations, including equity and debt securities[26] - The company has not yet secured additional financing and there is no assurance it will obtain funding on acceptable terms[26] - The company received zero funding from the Canadian government research and development program during the three months ended September 30, 2025, compared to $8.1 million received in the same period of 2024[76] - The Company executed a Secured Promissory Note for €9.5 million (approximately $11.2 million) to finance equipment purchases, with a 10.56% interest rate and repayment starting in April 2026[106] Market and Customer Concentration - The company's top two customers accounted for approximately 100% of total revenue for the three and nine months ended September 30, 2025, and 100% and 94% for the same periods in 2024, indicating a high concentration of revenue[36] Equity and Stock Options - The weighted-average common shares outstanding for Q3 2025 were 149,340,474, an increase from 143,387,618 in Q3 2024[15] - As of September 30, 2025, the number of shares available for grant under the 2021 Equity Incentive Plan was 5,617,675, with a total of 30,752,349 shares reserved for issuance[88] - The total remaining compensation expense for RSU awards to be recognized under the 2021 Equity Incentive Plan is $8.9 million, expected to be recognized over an estimated weighted average period of 1.2 years[91] - Stock-based compensation expense for the three months ended September 30, 2025, was $1.7 million in general and administrative expenses and $0.5 million in research and development expenses[93] Legal and Regulatory Matters - The company has been involved in legal proceedings related to a putative securities class action and derivative complaints, with settlements entered into in October 2025[108] Other Financial Metrics - The company reported an unrealized gain on marketable securities of $311,000 for Q3 2025, compared to $690,000 in Q3 2024[15] - The company recognized revenue in accordance with ASC 606, with a focus on the transfer of promised goods or services to customers[47] - The Company reported total fair value of financial assets as of September 30, 2025, amounting to $41.22 million, with cash equivalents at $20.94 million and marketable securities at $20.28 million[61]