The following is a summary of the Origin Materials, Inc. (ORGN) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Origin reported revenue of $13.1 million and $28.8 million for the Q4 and the full year respectively, their first year generating revenue.

• Operating expenses for Q4 were $19.8 million, compared to $13 million in the prior year, an increase of $6.8 million.

• Full year operating expenses were $60.1 million compared to $38.9 million in the previous year, an increase of $21.2 million.

• The company forecasts revenue of $25 million to $35 million and net cash burn between $55 million and $65 million for 2024, with significant gross profit generation expected in 2025.

• The company incurred just over $100 million in property, plant, and equipment costs during 2023. In 2024, they plan to execute at less than a $65 million net cash burn.

• The company started with $158 million in cash and cash equivalents and marketable securities at the end of Q4 2023.

• Anticipated 2024 net cash burn stands between $55 million and $65 million, with expected gross profit generation to begin in 2025.

• The company sees no need for an equity capital raise to achieve sustained profitability due to strong revenue expectations and cost reduction efforts.

Business Progress:

• Origin Materials strengthens focus on its lower-capital-intensity caps and closures business due to escalating capital project costs.

• The company commenced production at Origin I, augmenting the scalability of their biomass conversion technology.

• With the commencement of operations at Origin One, Supply chain activation revenue became the primary source of 2023's revenue.

• Origin has outlined a new strategy to scale its biomass conversion technology in partnership with other major companies, which is expected to significantly reduce costs.

• Origin 1 in Sarnia, Ontario is successfully demonstrating Origin's biomass conversion technology.

• The company is in the letter-of-intent phase with several leading Consumer Packaged Goods companies, set to potentially lead to long-term business relationships and significant demand for the company's products.

• Board of Directors evolves with retirement of Karen Richardson, Tony Trippany to serve as the new Chairman of the Board with John Hickox as Audit Committee Chair.

• The company expects its All-PET Caps and Closures business to generate substantial revenue in the next 12 months.

• The company expects to achieve cash-positive operations with the projected, recurring revenue from their caps and closures initiative.

• The company seeks an asset-light strategy to reduce capital project costs looking forward.

• Preparedness of Origin's Biomass Convergence Technology will greatly influence the company's capacity to deliver on their commercial expectations.

More details: Origin Materials IR

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