Danimer Scientific(US:DNMR)2021-05-17 16:00Financial Performance - Total revenue for Q1 2021 was $13,181,000, representing a 24.9% increase from $10,598,000 in Q1 2020[15] - Net loss for Q1 2021 was $94,734,000, compared to a net loss of $1,681,000 in Q1 2020, indicating a significant increase in losses[15] - Product revenue reached $11.0 million in Q1 2021, up from $9.2 million in Q1 2020, driven by a 9% increase in pounds sold and a 9% increase in the weighted average selling price[97] - Services revenue for Q1 2021 was $2.1 million, compared to $1.4 million in Q1 2020, primarily due to a $0.8 million increase in revenue from R&D projects[97] - Gross profit for Q1 2021 was $1.5 million, with a gross profit margin of 11.05%, down from 29.90% in Q1 2020[95] - Total operating expenses for Q1 2021 were $12.7 million, significantly higher than $4.2 million in Q1 2020, leading to a loss from operations of $11.3 million[95] - Cost of revenue for Q1 2021 was $11.7 million, a 57.8% increase from $7.4 million in Q1 2020, with PHA-based products representing 29% of total revenue compared to only 2% in the prior year[98] - Gross margin percentage decreased to 11.1% in Q1 2021 from 29.9% in Q1 2020, primarily due to ramp-up costs associated with PHA manufacturing[98] - Operating expenses increased by $8.5 million in Q1 2021, with selling, general and administrative expenses totaling $10.1 million compared to $3.0 million in Q1 2020[99] - The company reported a net loss of $94.7 million for Q1 2021, compared to a net loss of $1.7 million in Q1 2020[95] Cash Flow and Liquidity - Cash and cash equivalents decreased to $312,910,000 as of March 31, 2021, down from $377,581,000 at the end of 2020[12] - Net cash used in operating activities was $14,208,000 for Q1 2021, compared to $5,615,000 in Q1 2020, indicating higher cash outflows[20] - Cash used in investing activities was $23.9 million in Q1 2021, compared to $15.3 million in Q1 2020, reflecting ongoing expansion of the Kentucky Facility[112] - Net cash used in financing activities was $26.6 million in Q1 2021, primarily due to a $27.0 million principal payment on long-term debt[113] - As of March 31, 2021, the company had $312.9 million in cash and cash equivalents and a working capital of $321.6 million[106] - The company has an accumulated deficit of $153.5 million as of March 31, 2021, up from $58.8 million at the end of 2020[106] Assets and Liabilities - Total current liabilities decreased to $24,188,000 from $50,486,000 at the end of 2020, showing improved short-term financial health[12] - Total assets decreased to $512,303,000 as of March 31, 2021, down from $546,201,000 at the end of 2020[12] - Total stockholders' equity decreased to $282,274,000 as of March 31, 2021, down from $356,044,000 at the end of 2020[12] - Total long-term debt as of March 31, 2021, was $31.316 million, a slight decrease from $31.386 million on December 31, 2020[10] - The company settled the 2019 Term Loan for $27.7 million, including a prepayment fee of $0.5 million and $0.2 million in accrued unpaid interest, resulting in a loss of $2.6 million upon extinguishment[39] Research and Development - Research and development expenses rose to $2,619,000 in Q1 2021, up from $1,247,000 in Q1 2020, reflecting increased investment in innovation[15] - Revenue recognized from R&D services for the quarter ended March 31, 2021, was $(1.737) million, compared to $(0.411) million for the same period in 2020[51] Capital Expenditures and Investments - The company invested $55.4 million in Phase I improvements of the Kentucky Facility, with an expected production capacity of 20 million pounds per year once fully operational[75] - The company has commenced Phase II construction of the Kentucky Facility, with an estimated investment of $114 million to expand capacity by an additional 45 million pounds per year[75] - The company has outstanding noncancellable purchase orders of $44.5 million related to the expansion of its production facility as of March 31, 2021[65] Stock and Equity - The company issued 803,505 shares of common stock during the quarter, increasing total shares outstanding to 85,339,145[17] - The company authorized up to 3,093,984 shares for the 2020 Incentive Plan, which includes stock options and other equity awards[52] - The 2020 Employee Stock Purchase Plan allows employees to purchase shares at a 15% discount, with up to 2,571,737 shares authorized[54] - As of March 31, 2021, the company had an aggregate intrinsic value of $249,345,242 related to stock options and restricted shares[60] - The weighted average grant-date fair value of options granted during the quarter ended March 31, 2021, was $18.52 per option[62] - The company has $157.1 million of unrecognized compensation cost related to nonvested stock options and restricted shares, expected to be recognized over a weighted-average period of 2.7 years[64] Legal and Regulatory Matters - A class action complaint was filed against the company, alleging violations of federal securities laws during the period from December 30, 2020, to March 19, 2021[68] - The company has restated its financial statements due to clarifications in SEC Staff Statement regarding warrant accounting principles, indicating that its disclosure controls were not effective[119] - The company is facing risks from short selling, which may negatively impact its stock price and require significant resources to address allegations made by short sellers[122] - The company has not reported any unregistered sales of equity securities or use of proceeds in the current reporting period[124] - The company has filed various exhibits related to its corporate governance and financial agreements, including amendments to its bylaws and credit agreements[129] - The company’s management, including the CEO and CFO, signed certifications affirming the accuracy of financial reporting as required by the Sarbanes-Oxley Act[133]