Commercial Highlights - PureCycle secured its first meaningful purchase order in fiber with Drake Extrusion in January[6] - The first commercial product line has been launched with Churchill Container[6] - More than 20 customer application trials are in various stages of progress with positive results[6] - P&G granted exclusivity for North America and extended exclusivity periods for all other regions[6] - The company has expanded its commercial team with key strategic hires[6] - Drake's facility in Virginia consumes 60-70 million lbs of PP annually[16] - Churchill Container has a market opportunity of 50k-100k lbs of volume[18] - Active trials represent a potential of 250-500 million lbs of resin sale[20] Operational Highlights - PureCycle exceeded 125 klbs/hr feed rates (88% of nameplate)[6] - Reliability, onstream, and quality metrics continue to improve quarter over quarter[6] - Ironton produced 36 million lbs of resin, a portion of which helped create 4 million lbs of compounded material in Q4[25] - The company recently reached a new rate record of 125 klbs/hr[25] - The company secured 5 million lbs of monthly compounding capacity at favorable unit economic rates[25] Financial Highlights - PureCycle raised $33 million from private placement in February[6, 29] - Unrestricted cash decreased from $837 million on Sept 30, 2024 to $157 million on Dec 31, 2024, a change of $(680) million[26] - Restricted cash increased from $100 million on Sept 30, 2024 to $258 million on Dec 31, 2024, an increase of $158 million[26]

Financial Data and Key Metrics Changes - The company ended the fourth quarter with just under $16 million of unrestricted cash and raised $33 million in February through subscription agreements [38][39] - Cash expenses for Q4 totaled $68 million, including $36 million for equipment related to growth projects, resulting in adjusted cash expenses of around $27 million [40][41] Business Line Data and Key Metrics Changes - The company compounded approximately 4 million pounds of material for fiber applications in Q4, leading to a purchase order from Drake extrusion [20][21] - The company is engaged in over 29 trials with potential customers, with 16 on an industrial scale, indicating significant demand potential [23] Market Data and Key Metrics Changes - The potential market for recycled polypropylene is enormous, with the virgin market expected to exceed 200 billion pounds globally, while less than 1% of polypropylene is currently recycled [8][9] - The rigid packaging market in North America is approximately 3.8 billion pounds per year, representing a significant opportunity for the company [24] Company Strategy and Development Direction - The company is pursuing a vertically integrated strategy that connects the purchase of bales to the sale of compounded material, aiming to control its destiny in a nascent feedstock market [11][12] - The company is focused on expanding its technology globally, aiming to become one of the world's first vertically integrated global recycling companies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational progress at Ironton, with expectations of moving toward nameplate capacity and improved reliability [33][34] - The company anticipates that successful customer trials will accelerate the need for global expansion due to increasing demand [24] Other Important Information - The company is in the process of acquiring third-party certification for £7.2 million of finished product in inventory, expected to be received by the end of Q1 [14] - The company has a strong relationship with Procter and Gamble, with ongoing industrial trials for five different applications [17][18] Q&A Session Summary Question: Can you elaborate on the confidence regarding the commercial ramp? - Management highlighted the excitement from successful customer trials, particularly with Drake, which boosts confidence in their ability to meet customer needs [44][45] Question: Can you comment on the current cash position and financing plans? - The company ended Q4 with $15 million of unrestricted cash and raised $33 million in February, with plans to sell revenue bonds to enhance liquidity [46][47] Question: What are the current unit economics? - Management stated that sales prices remain strong at $1.36 per pound, with good variable cost components and feedstock flexibility contributing to favorable unit economics [52][55] Question: Can you discuss future growth projects and timelines? - The company is ready to move forward with growth projects, having purchased long lead equipment and maintaining good relationships for expansion in Europe and Asia [59][60] Question: What is the production capability and how does it relate to customer qualifications? - Management indicated that production levels are not a limiting factor; rather, the focus is on meeting specific customer requirements through tailored production [66][67]