Origin Materials(ORGN) - 2023 Q4 - Annual Results

Financial Performance - Origin Materials reported revenue of $13.1 million for Q4 2023 and $28.8 million for the full year, compared to zero in the prior-year periods, primarily driven by supply chain revenue[10]. - The net loss for Q4 2023 was $10.4 million, compared to a net income of $16.0 million in the prior-year period, while the full year net income was $23.8 million compared to $78.6 million in the prior year[13]. - Total revenues for the year ended December 31, 2023, were $28,805,000, compared to $0 in 2022, indicating a significant growth in revenue generation[30]. - The company reported a net loss of $10,438,000 for the three months ended December 31, 2023, compared to a net income of $15,993,000 in the same period of 2022[30]. - Net income for Q4 2023 was a loss of $10,438,000 compared to a profit of $15,993,000 in Q4 2022, representing a significant decline[34]. - Adjusted EBITDA for Q4 2023 was $(10,988,000), worsening from $(9,234,000) in Q4 2022[34]. Operating Expenses - Operating expenses for Q4 2023 were $19.8 million, an increase of $6.8 million from the prior-year period, driven by higher manufacturing and R&D costs[11]. - Full year 2023 operating expenses totaled $60.1 million, up from $38.9 million in the prior year, reflecting increased costs across various categories[12]. - The company incurred total operating expenses of $60,096,000 for the year ended December 31, 2023, compared to $38,947,000 in 2022, reflecting a 54% increase[30]. - Research and development expenses increased to $21,351,000 for the year ended December 31, 2023, up from $14,141,000 in 2022, reflecting a 51% increase[30]. - Total stock-based compensation for the year 2023 was $9,400,000, up from $7,235,000 in 2022[34]. - Depreciation and amortization expenses increased to $3,363,000 in 2023 from $711,000 in 2022[34]. Cash Flow and Assets - The company expects a cash burn of between $55 million and $65 million for 2024, with significant gross profit generation anticipated to begin in 2025[6][15]. - Cash and cash equivalents decreased to $75,502,000 as of December 31, 2023, down from $107,858,000 in 2022, representing a decline of approximately 30%[29]. - The total assets of the company decreased to $461,834,000 as of December 31, 2023, from $493,700,000 in 2022, a reduction of about 6.5%[29]. - The company reported a cash flow used in operating activities of $60,355,000 for the year ended December 31, 2023, compared to $26,092,000 in 2022, indicating increased cash outflow[32]. Liabilities and Equity - The company’s total liabilities significantly decreased to $39,327,000 in 2023, down from $116,795,000 in 2022, marking a reduction of approximately 66%[29]. - The weighted-average common shares outstanding for the year ended December 31, 2023, were 139,718,385, compared to 137,563,877 in 2022, indicating an increase in shares[30]. Strategic Initiatives - The company has a pathway to profitability without requiring additional equity capital, focusing on revenue-generating projects[6][2]. - The company is pursuing an asset-light strategy for its second manufacturing plant, Origin 2, to optimize costs and reduce project execution risks[9][2]. - Total offtake agreements and capacity reservations exceed $10 billion, indicating strong customer demand despite macroeconomic challenges[9]. - The company successfully completed its third manufacturing development run, producing thousands of caps per hour, with initial products passing third-party performance tests[7]. - The company anticipates continued interest and engagement from partners regarding its projects, particularly Origin 1, which is expected to drive future revenue growth[26]. Other Financial Metrics - Interest income decreased to $(6,303,000) in 2023 from $(8,825,000) in 2022, indicating a decline of approximately 29%[34]. - The company reported a gain in fair value of common stock warrants liability of $(29,531,000) for the year 2023, compared to $(21,988,000) in 2022[34]. - The total workforce reduction charge was $200,000, primarily consisting of severance and benefits costs[34]. - Cash severance costs recorded were $484,000, with no prior year comparison provided[34]. - Income tax benefits for the year 2023 amounted to $(1,087,000), with no prior year comparison provided[34]. - The company experienced a loss in fair value of earnout liability of $(40,983,000) in 2023, compared to $(85,437,000) in 2022, indicating an improvement[34].