Origin Materials, Inc.

Thank you for standing by. This is the conference operator. Welcome to the Origin Materials first quarter 2024 earnings call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. At this time, for opening remarks and introductions, I would like to turn the call over to Ryan Smith, co-founder and chief product officer. Please go ahead.

Thank you. Good afternoon, and thank you for joining us, everyone. Speaking first today is Origin's co-CEO, Rich Riley. He'll be followed by co-CEO and co-founder, John Bissell, and CFO, Matt Plavin. After that, we will open the call to questions from analysts and discuss questions submitted as part of our Ask Origin campaign. Ahead of this call, Origin has issued its 2024 first quarter press release, and presentation, which we will refer to today. These can be found on the investor relations section of our website at originmaterials.com. Please note that during our discussion today, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as of today, should not be relied upon as representative about views of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion on the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC, including our quarterly report on Form 10-Q, filed today. During today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of origins and materials performance. These non-GAAP measures should be considered in addition to and not as substitute for in isolation from the GAAP results. You will find additional disclosures regarding the non-GAAP financial measures discussed on today's call in our press release issued this afternoon and our filings with the SEC, which will be posted to our website. The webcast of this call will also be available on the investor relations section of our company website. With that, I will turn the call over to Rich.

Thank you, Ryan, and thank you, everyone, for joining us. Today, we are reaffirming our path to profitability, which is entirely independent of the scale-up of our biomass conversion technology and related manufacturing plant constructions. We are reaffirming that as we execute our business plan to achieve sustained profitability, we believe our cash runway is sufficient to eliminate the need for an equity capital raise. Origin ended the first quarter with just over $146 million in cash and cash equivalents and marketable securities. Consistent with our prioritization of revenue generating projects with the greatest contribution to near-term cash and our continued deferral of research expenses or other programs targeting longer-term paybacks, Today, we are reaffirming our expected 2024 net cash burn of between $55 million and $65 million. We continue to make strong commercialization progress with Origins Caps and Closures business, which we expect will begin to generate revenue within the next nine months with significant gross profit generation beginning in 2025 and a healthy growth trajectory thereafter. As such, we continue to forecast a solid minimum cash flow on our way to sustained profitability, and hence the expectation that we will not require additional equity capital. During the first quarter, we made strong progress on our journey to profitability. Led by our groundbreaking PET caps and closures business, we announced a few of our caps and closures manufacturing partners, including Paxos Global and IMD Vista. And we continue to make good progress with prospective and as yet unannounced customers who are excited about our revolutionary CAPS offering and the benefits it brings for recycling circularity and performance. Today, we are announcing that we have accelerated the procurement of multiple additional high-throughput CAPS production lines to complement the initial line, which we have already purchased. We aim to bring our first manufacturing system online during the fourth quarter 2024. At full capacity, following ramp up, our initial systems are expected to generate between $45 million and $65 million in annual revenue. The caps and closures opportunity is massive, an over $65 billion market with currently engaged prospective customers alone consuming tens of billions of caps per year. We look forward to rapidly standing up additional lines addressing multiple product types, including tethered beverage caps and caps for non-beverage home goods applications. Today, we are also announcing a Caps Enclosures technical milestone with the completion of a successful capping trial on a commercial bottle line applying Origin PET caps. In fact, Origin caps made 100% recycled PET to thousands of filled beverage containers. I'll let John speak to that in greater detail. We also announced the initial product lineup of our PET Caps Enclosures manufacturing platform. We are starting with the world's first CSD, or carbonated soft drink, PET caps. the lightest of its kind ever produced at commercial scale. There are hundreds of different kinds of caps and closures in container packaging, but the PCO 1881 neck finish is considered a leading standard for carbonated soft drinks and is often used for other products such as juices or even still or sparkling water. Because of the ubiquity of bottles using the PCO 1881 finish, it's an area where our PET cap can make a tremendous difference by improving recycling circularity and product performance in a massive addressable market. We followed that initial product announcement by introducing the first-ever tethered PET cap. Cap tethering mandates are coming into effect later this year in Europe through the EU single-use plastic directive. Tethered caps are designed to stay connected to the container and thereby improve cap collection rates for recycling. We look forward to our 1881 compatible caps being available in Q4 later this year with ramp-up to follow throughout 2025. Apart from our caps and closures business, we continue to grow the long-term value of the Origin platform by engaging potential strategic partners around the scale-up of our biomass conversion technology, including exploring high-value application development initiatives that could generate near-term revenue. Other technologies with near-term revenue generating potential are also in development at Origin. Like our PET caps and closures, these new applications enabled by Origin technologies are not dependent on Origin 1 or Origin 2 for production and sale. but are capable of using materials these plants are designed to produce. We look forward to providing more detail on these initiatives in the future. With that, I'll turn it over to John.