– Announces Signed Customer Memorandum of
Understanding For Over $100 Million of PET Caps –
– Reaffirms PET Cap Commercial Production on
Track to Begin in Fourth Quarter 2024, With Caps Revenue Ramp-Up to
Begin in First Quarter 2025 –
– Reaffirms Pathway to Profitability Requiring
No Additional Equity Capital –
– Maintains 2024 Revenue and Net Cash Burn
Guidance –
Origin Materials, Inc. (“Origin,” “Origin Materials,” or the
“Company”) (Nasdaq: ORGN, ORGNW), a technology company with a
mission to enable the world’s transition to sustainable materials,
today announced financial results for its second quarter ended June
30, 2024.
“Today we are announcing our first signed customer for Origin’s
PET caps and closures,” said Rich Riley, Co-Chief Executive Officer
of Origin. “We anticipate delivering multiple billions of caps to
this customer over the next several years, which we expect will
generate over $100 million in revenue in the initial two-year term,
with revenue expected to begin in early 2025, ramping significantly
in 2026. Therefore, to fulfill demand for this MOU as well as
anticipated demand from other customers, we expect to build
capacity well beyond our initial system purchases, which we
previously announced as having expected capacity to generate
between $45 million and $65 million in annual revenue.
Concurrently, we are negotiating potential licensing agreements. We
anticipate that licensing our technology, in addition to selling
caps that we produce with our world-class manufacturing partners,
will drive explosive growth for our PET caps business. This will
further catalyze the revolution in recycling circularity and
product performance that we are bringing to beverage packaging,
food packaging, and home goods. Our first commercial-scale mass
production system is on track to start producing PET caps later
this year, with caps revenue ramp-up to begin in the first quarter
of 2025. During July, in Germany and Switzerland we tested all
manufacturing line subsystems at full-speed and we are pleased with
the system’s performance. We also crossed the threshold of
1,000,000 caps produced to date, which puts us well on our way to
launching this highly strategic business. With over $130 million in
cash and a path to profitability through near-term businesses led
by caps and closures, we are positioned to vigorously grow our
business and cultivate our broader technology platform in the
quarters and years ahead with a strong IP moat and a highly
innovative and creative team.”
Riley added: “Highlights from the quarter include announcing a
European PET cap mass production partnership with Bachmann Group, a
respected Swiss packaging production and logistics company.
Bachmann Group will assist in the end-to-end operation and
automation of our PET cap mass production lines, helping us produce
billions of caps by taking pellet or flake, including recycled
material, all the way to finished closures using Origin equipment.
We also announced a North American PET cap mass production
partnership with Reed City Group, a full-scale injection mold
builder, injection molder, hydraulic press maker, and automation
solutions company. Regarding our biomass conversion technology, we
continue to grow the long-term value of the Origin platform by
engaging potential strategic partners around scale-up, delivering
product samples, and engaging in market development activities
which we expect will generate meaningful results. We couldn’t be
more excited about where we stand today in our journey to make the
world’s materials better performing and more sustainable.”
Company Second Quarter and Recent Business Highlights
Origin Materials reported quarterly revenue of $7.0 million
generated by the Company’s supply chain activation program. The
Company also made significant progress in commercializing its caps
and closures business. Recent progress includes:
- Today we are announcing our first signed caps customer
memorandum of understanding (“MOU”). We are reaffirming that
caps commercial-scale production is on track to begin during the
fourth quarter this year, with revenue generation expected to begin
ramp-up during the first quarter of 2025. The MOU totals billions
of PET caps and is expected to generate over $100 million in
revenue during the initial two-year term, with revenue expected to
begin in early 2025, ramping significantly in 2026. We expect to
build capacity well beyond our initial system purchases, which we
previously announced as having expected capacity to generate
between $45 million and $65 million in annual revenue.
Concurrently, we are negotiating potential licensing agreements. We
expect additional customers alongside this initial agreement and we
plan to announce them as appropriate, taking into consideration
context such as the timing of prospective customer product launches
involving our caps and our customers’ related marketing
activities.
- This quarter we achieved multiple manufacturing
milestones. We have produced over one million caps to date. For
our first commercial manufacturing line, we ran each subsystem at
full speed with the system operating as expected including industry
standard high-speed camera systems. And we validated QA/QC
indicators that operators can use to assess quality, such as stable
cap weight and dimensions.
- We announced a European PET cap mass production partnership
with Bachmann Group, a leading packaging production and
logistics company. Bachmann Group, based in Switzerland, is a more
than 50-year-old group of companies with deep expertise in
packaging production, quality assurance, and logistics, experienced
with high-volume, sophisticated products like coffee capsules
requiring high-precision manufacturing.
- We announced a North American PET cap mass production
partnership with Reed City Group, a full-scale injection mold
builder, injection molder, hydraulic press maker, and automation
solutions company. Origin and Reed City Group will operate
commercial production lines in Reed City Group's Michigan
facilities.
- We unveiled engineering and design innovations in the
manufacturing of our tethered PET caps, the world’s first
tethered caps made with PET. These tethered caps are a breakthrough
in circularity, designed to improve cap collection rates for
recycling, and offer an excellent user experience while enabling
leading brands to respond to the EU Single-Use Plastics Directive.
The directive requires that caps remain connected to beverage
containers in the EU and went into effect in July 2024.
We continue to perform development work related to our biomass
conversion technology. Origin 1, our plant in Sarnia, Ontario,
Canada, continues to support market development activities.
Multiple Origin partners are engaged in development work using our
materials including crystallized CMF and carbonized HTC. For Origin
2, we continue to engage customers as part of our asset light
strategy for further biomass conversion technology scale up, with
timelines and economic forecasts to depend on the partner and deal
structure, which can explore a range of scenarios and locations
including Geismar, Louisiana and Asia brownfield scenarios. We are
exploring a variety of plant designs, evaluating potential sites,
and performing joint development work including testing and
optimizing various feedstocks to generate data that could influence
our scale-up strategy, with updates to be provided as
appropriate.
Results for Second Quarter 2024
Cash, cash equivalents and marketable securities were $132.1
million as of June 30, 2024.
Revenue for the second quarter was $7.0 million compared to $6.9
million in the prior-year period, driven mostly by our supply chain
revenue.
Operating expenses for the second quarter were $18.5 million
compared to $14.4 million in the prior-year period, an increase of
$4.1 million consisting primarily of $2.7 million increase in
general and administrative expenses and $2.5 million increase in
depreciation expenses driven by Origin 1 coming online during the
fourth quarter of 2023, partially offset by $1.0 million decrease
in research and development expenses. A significant portion of
costs incurred during the second quarter of 2023 were capitalized
as part of the development of Origin 1 and the costs to operate and
maintain the plant are included in general and administrative
expenses in 2024.
Net loss was $19.5 million for the second quarter compared to
$6.5 million in the prior-year period.
Adjusted EBITDA loss was $12.9 million for the second quarter
compared to $11.7 million in the prior-year period.
Shares outstanding as of June 30, 2024 were 147.2 million
including 4.5 million shares that are subject to forfeiture based
on share price performance targets previously disclosed in our
filings, of which 1.5 million of the 4.5 million shares were
forfeited as of June 30, 2024 and will reduce the overall
outstanding number of shares by 1.5 million once the shares are
returned to the company.
For a reconciliation of non-GAAP figures to the applicable GAAP
figures, please see the table captioned ‘Reconciliation of GAAP and
Non-GAAP Results' set forth at the end of this press release.
Full Year 2024 Outlook
Based on current business conditions, business trends and other
factors, the Company is maintaining the following guidance for 2024
revenue and net cash burn:
- Revenue of $25 million to $35 million.
- Net cash burn between $55 million and $65 million.
These expectations do not consider, or give effect to, among
other things, unforeseen events, including changes in global
economic conditions.
Webcast and Conference Call Information
Company management will host a webcast and conference call on
August 14, 2024, at 5:00 p.m. Eastern Time, to discuss the
Company's financial results.
Interested investors and other parties can listen to a webcast
of the live conference call and access the Company’s quarterly
update presentation by logging onto the Investor Relations section
of the Company's website at
https://investors.originmaterials.com/.
The conference call can be accessed live over the phone by
dialing +1-877-300-8521 (domestic) or +1-412-317-6026
(international). A telephonic replay will be available
approximately three hours after the call by dialing 1-844-512-2921,
or for international callers, +1-412-317-6671. The conference ID
for the live call and pin number for the replay is 10190691. The
replay will be available until 11:59 p.m. Eastern Time on August
21, 2024.
About Origin Materials, Inc.
Origin is a leading technology company with a mission to enable
the world’s transition to sustainable materials. Our innovations
include PET caps and closures that bring recycling circularity and
enhanced performance to a ~$65 billion market, specialty materials,
and our patented biomass conversion platform that transforms carbon
into sustainable materials for a wide range of end products
addressing a ~$1 trillion market. Origin’s technology, economics,
and carbon impact are supported by a growing list of major global
customers and investors. For more information, visit
www.originmaterials.com.
Non-GAAP Financial Information
To supplement the Company’s financial results presented in
accordance with generally accepted accounting principles in the
United States ("U.S. GAAP"), the Company also uses non-GAAP
financial measures, including Adjusted EBITDA, as supplemental
measures to review and assess the Company’s operating performance.
Adjusted EBITDA is defined as net income or loss adjusted for (i)
stock-based compensation expense, (ii) depreciation and
amortization, (iii) interest income, (iv) interest expense, (v)
change in fair value of derivative, (vi) change in fair value of
common stock warrants liability, (vii) change in fair value of
earnout liability, (viii) other expenses (income), net and (ix)
income tax expenses.
The Company believes that these non-GAAP financial measures
provide useful information about the Company’s operating results,
enhance the overall understanding of the Company’s past performance
and future prospects and allow for greater visibility with respect
to key metrics used by the Company’s management in its financial
and operational decision-making.
Non-GAAP financial measures are not defined under U.S. GAAP and
are not presented in accordance with U.S. GAAP. These non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company’s operating performance, investors should not
consider them in isolation. In addition, calculations of this
non-GAAP financial information may be different from calculations
used by other companies, and therefore comparability may be
limited.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating our performance.
For more information on Adjusted EBITDA, please see the table
captioned “Reconciliation of GAAP and Non-GAAP Results” set forth
at the end of this press release.
The Company is unable to reconcile forward-looking net cash burn
information provided in this press release to the increase or
decrease in cash, cash equivalents, and restricted cash, the most
closely comparable U.S. GAAP financial measures, without
unreasonable efforts. Net cash burn is defined as the decrease in
cash, cash equivalents, and restricted cash adjusted for purchases,
sales and gains or losses on marketable securities. The information
necessary to prepare the reconciliations are not available on a
forward-looking basis and cannot be accurately predicted. These
include, among other things, gains or losses on marketable
securities, which are inherently unpredictable. The unavailable
information could have a significant impact on the calculation of
the comparable GAAP financial measure.
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws. Forward-looking
statements generally are accompanied by words such as “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect,” “should,” “would,” “plan,” “predict,” “potential,”
“seem,” “seek,” “future,” “outlook,” and similar expressions that
predict or indicate future events or trends or that are not
statements of historical matters. These forward-looking statements
include, but are not limited to, statements regarding Origin
Materials’ business strategy, anticipated 2024 revenue generation
and cash burn, anticipated customer demand, recycling circularity
and performance benefits of the caps and closures, revenue
potential, near-term revenue potential of caps and closures,
including anticipated caps revenue ramp-up to begin in the first
quarter of 2025, pace and anticipated timing of bringing caps and
closures manufacturing systems online, anticipated revenue
generated from such systems, ability to enter into licensing
agreements for the caps and closures technology, when Origin’s caps
and cap features, including tethers, will be available or will
comply with current or future regulatory requirements in the EU and
elsewhere, estimated total addressable market, anticipated benefits
of and demand for Origin’s potential products, continued interest
from and engagement with partners with respect to Origin 2 and
scale-up of Origin’s biomass conversion technology, anticipated
performance of biomass conversion technology and platform, ability
to convert the MOU into revenue, commercial and operating plans,
product development plans and announcements of such plans, and
anticipated growth and projected financial information. These
statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of the management of Origin Materials and are not predictions of
actual performance. These forward-looking statements are provided
for illustrative purposes only and are not intended to serve as,
and must not be relied on as, a guarantee, an assurance, a
prediction, or a definitive statement of fact or probability.
Actual events and circumstances are difficult or impossible to
predict and will differ from assumptions. Many actual events and
circumstances are beyond the control of Origin Materials. These
forward-looking statements are subject to a number of risks and
uncertainties, including that Origin Materials may be unable to
successfully commercialize its products; the effects of competition
on Origin Materials’ business; the uncertainty of the projected
financial information with respect to Origin; disruptions and other
impacts to Origin’s business as a result of Russia’s military
intervention in Ukraine, the impact of severe weather events, and
other global health or economic crises; changes in customer demand;
and those factors discussed in the Quarterly Report on Form 10-Q
filed with the U.S. Securities and Exchange Commission (“SEC”) on
August 14, 2024, under the heading “Risk Factors,” and other
documents Origin Materials has filed, or will file, with the SEC.
If any of these risks materialize or our assumptions prove
incorrect, actual results could differ materially from the results
implied by these forward-looking statements. There may be
additional risks that Origin Materials presently does not know, or
that Origin Materials currently believes are immaterial, that could
also cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Origin Materials’ expectations, plans, or forecasts of
future events and views as of the date of this press release.
Origin Materials anticipates that subsequent events and
developments will cause its assessments to change. However, while
Origin Materials may elect to update these forward-looking
statements at some point in the future, Origin Materials
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Origin Materials’ assessments of any date subsequent
to the date of this press release. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
ORIGIN MATERIALS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands,
except share and per share data)
June 30, 2024
(Unaudited)
December 31,
2023
ASSETS
Current assets
Cash and cash equivalents
$
55,684
$
75,502
Marketable securities
76,461
82,761
Accounts receivable and unbilled
receivable, net of allowance for credit losses of $730 and $0,
respectively
15,460
16,128
Other receivables
4,554
3,449
Inventory
1,057
912
Prepaid expenses and other current
assets
8,172
8,360
Total current assets
161,388
187,112
Property, plant, and equipment, net
233,561
243,118
Operating lease right-of-use asset
4,184
4,468
Intangible assets, net
97
121
Deferred tax assets
1,073
1,261
Other long-term assets
30,679
25,754
Total assets
$
430,982
$
461,834
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
1,849
$
1,858
Accrued expenses
3,349
7,689
Operating lease liabilities, current
305
367
Notes payable, short-term
5,303
1,730
Other liabilities, current
1,085
918
Derivative liability
—
300
Total current liabilities
11,891
12,862
Earnout liability
1,243
1,783
Canadian Government Research and
Development Program liability
15,133
7,348
Common stock warrants liability
1,969
1,341
Notes payable, long-term
3,459
3,459
Operating lease liabilities
4,043
4,207
Other liabilities, long-term
2,606
8,327
Total liabilities
40,344
39,327
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of June 30, 2024 and December 31, 2023
—
—
Common stock, $0.0001 par value,
1,000,000,000 shares authorized; 147,210,338 and 145,706,531,
issued and outstanding as of June 30, 2024 and December 31, 2023,
respectively (including 4,500,000 Sponsor Vesting Shares)
15
15
Additional paid-in capital
388,412
382,854
Retained earnings
12,158
45,570
Accumulated other comprehensive loss
(9,947
)
(5,932
)
Total stockholders’ equity
390,638
422,507
Total liabilities and stockholders’
equity
$
430,982
$
461,834
ORIGIN MATERIALS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME (Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(In thousands,
except share and per share data)
2024
2023
2024
2023
Revenues:
Products
$
7,033
$
6,892
$
13,855
$
7,871
Services
—
6
3
731
Total revenues
7,033
6,898
13,858
8,602
Cost of revenues (exclusive of
depreciation and amortization shown separately below)
6,826
6,814
13,513
7,774
Operating expenses
Research and development
4,392
5,396
10,211
10,471
General and administrative
11,259
8,619
21,264
16,275
Depreciation and amortization
2,813
347
5,124
635
Total operating expenses
18,464
14,362
36,599
27,381
Loss from operations
(18,257
)
(14,278
)
(36,254
)
(26,553
)
Other income (expenses)
Interest income
1,838
2,426
3,702
5,440
Interest expense
(110
)
(2
)
(227
)
(2
)
(Loss) gain in fair value of
derivatives
(16
)
(266
)
280
494
(Loss) gain in fair value of common stock
warrants liability
(1,277
)
(2,143
)
(628
)
4,623
(Loss) gain in fair value of earnout
liability
(978
)
7,508
540
20,380
Other (expenses) income, net
(645
)
420
(653
)
(948
)
Total other (expenses) income, net
(1,188
)
7,943
3,014
29,987
(Loss) income before income tax
expenses
(19,445
)
(6,335
)
(33,240
)
3,434
Income tax expenses
(54
)
(129
)
(172
)
(129
)
Net (loss) income
$
(19,499
)
$
(6,464
)
$
(33,412
)
$
3,305
Other comprehensive (loss) income
Unrealized gain on marketable
securities
$
950
$
1,504
$
1,520
$
2,914
Foreign currency translation
adjustment
(1,691
)
3,272
(5,535
)
3,392
Total other comprehensive (loss)
income
(741
)
4,776
(4,015
)
6,306
Total comprehensive (loss) income
$
(20,240
)
$
(1,688
)
$
(37,427
)
$
9,611
Net (loss) income per share, basic
$
(0.14
)
$
(0.05
)
$
(0.23
)
$
0.02
Net (loss) income per share, diluted
$
(0.14
)
$
(0.05
)
$
(0.23
)
$
0.02
Weighted-average common shares
outstanding, basic
143,004,474
139,265,248
142,398,476
139,154,557
Weighted-average common shares
outstanding, diluted
143,004,474
139,265,248
142,398,476
143,039,435
ORIGIN MATERIALS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June
30,
(in thousands)
2024
2023
Cash flows from operating
activities
Net (loss) income
$
(33,412
)
$
3,305
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation and amortization
5,124
635
Provision for bad debts
730
—
Amortization on right-of-use asset
280
301
Stock-based compensation
5,317
4,651
Loss (gain), net on disposal of property,
plant, and equipment
24
—
Realized (gain) loss on marketable
securities
(64
)
706
Amortization of premium and discount of
marketable securities, net
(24
)
285
Change in fair value of derivative
(280
)
(494
)
Change in fair value of common stock
warrants liability
628
(4,623
)
Change in fair value of earnout
liability
(540
)
(20,380
)
Deferred tax benefits
150
—
Changes in operating assets and
liabilities:
Accounts receivable and other
receivables
(1,168
)
(9,748
)
Inventory
(145
)
(346
)
Prepaid expenses and other current
assets
168
72
Other long-term assets
(4,925
)
(12,144
)
Accounts payable
418
2,111
Accrued expenses
(3,256
)
49
Operating lease liability
(221
)
(354
)
Other liabilities, current
(478
)
347
Other liabilities, long-term
(23
)
(7
)
Net cash used in operating
activities
(31,697
)
(35,634
)
Cash flows from investing
activities
Purchases of property, plant, and
equipment
(2,575
)
(72,284
)
Purchases of marketable securities
(826,682
)
(2,499,506
)
Sales of marketable securities
805,285
2,462,950
Maturities of marketable securities
26,177
101,792
Net cash provided by (used in)
investing activities
2,205
(7,048
)
Cash flows from financing
activities
Payment of notes payable
(1,532
)
—
Proceeds from Canadian Government Research
and Development Program
8,097
—
Proceeds from exercise of stock
options
241
55
Net cash provided by financing
activities
6,806
55
Effects of foreign exchange rate changes
on the balance of cash and cash equivalents, and restricted cash
held in foreign currencies
2,868
292
Net decrease in cash and cash
equivalents, and restricted cash
(19,818
)
(42,335
)
Cash and cash equivalents, and
restricted cash, beginning of the period
75,502
108,348
Cash and cash equivalents, and
restricted cash, end of the period
$
55,684
$
66,013
Origin Materials, Inc. Reconciliation
of GAAP and Non-GAAP Results
Three Months Ended June
30,
Six Months Ended
June 30,
(in thousands)
2024
2023
2024
2023
Net (loss) income
$
(19,499
)
$
(6,464
)
$
(33,412
)
$
3,305
Stock-based compensation
2,536
2,405
5,317
4,651
Depreciation and amortization
2,813
347
5,124
635
Interest income
(1,838
)
(2,426
)
(3,702
)
(5,440
)
Interest expense
110
2
227
2
Loss (gain) in fair value of
derivatives
16
266
(280
)
(494
)
Loss (gain) in fair value of common stock
warrants liability
1,277
2,143
628
(4,623
)
Loss (gain) in fair value of earnout
liability
978
(7,508
)
(540
)
(20,380
)
Other expenses (income), net
645
(420
)
653
948
Income tax expenses
54
—
172
—
Adjusted EBITDA
$
(12,908
)
$
(11,655
)
$
(25,813
)
$
(21,396
)
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Origin Materials (NASDAQ:ORGN)
過去 株価チャート
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Origin Materials (NASDAQ:ORGN)
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から 8 2023 まで 8 2024