Origin Materials, Inc. Q4 FY2023 earnings call

• 2023 was a watershed year with commencement of production at Origin I, a key milestone for biomass conversion technology scalability.
• All-PET Caps and Closures business: Commercially scaled up, completed third manufacturing development run, initial product passed third-party tests, conducted consumer testing, and in letter-of-intent phase with leading CPG companies. This business is transformative for packaging, transitioning hard-to-recycle to easy-to-recycle material.
• Origin 1: Demonstrating biomass conversion technology in Sarnia, Ontario, using cornstarch as feedstock to support market development and tech scale-up, with plans to introduce wood handling.
• Origin 2: Launching asset-light strategy with strategic partners to scale biomass conversion technology, reducing project execution risk and costs.
• Board of Directors: Karen Richardson retires as Chairman, Tony Trippany succeeds her as Chairman, and John Hickox appointed to the Board.

Origin ended the fourth quarter with revenue of $13.1 million and full year 2023 revenue of $28.8 million, primarily from supply chain activation revenue related to the initiation and initial scale-up of Origin One operations. The All-PET Caps and Closures business is a key segment with potential revenue within the next 12 months, contributing to the company's path to profitability.

• 2024 net cash burn expected between $55 million and $65 million.
• Significant gross profit generation anticipated to begin in 2025, primarily due to strong commercialization progress of Caps and Closures business.
• Forecast no need for additional equity capital to achieve sustained profitability, with Caps and Closures business potentially generating revenue within 12 months.

• Risks related to actual results differing materially from expectations, as outlined in SEC filings, including risks from new information or future events affecting financial results.

Q: About the use of wood in Origin One and why it wasn't accelerated earlier, A: John Bissell explains customer arrangements are agnostic to feedstock for performance-advantaged products, and buy decisions are driven by end product performance.

Q: About NASDAQ delisting and demonstrating wood use in Origin One, A: John Bissell states intent to demonstrate wood use soon.

Q: About Origin Two and Asian brownfield sites, A: Rich Riley says working with multiple partners on various plant build scenarios, no timing guidance but progress.

Q: About 2024 revenue and OPEX, A: Matt Plavan and Rich Riley discuss revenue guidance of $25 million to $35 million and OPEX expectations related to cash burn.

Q: About steps for Caps and Closures business, A: Rich Riley explains small-scale production, equipment purchase/install, and incremental ramp of systems.

Q: About 1,4-Dioxane and TRL of biomass technology, A: John Bissell talks about patent models and TRL of biomass technology, stating Origin 1 is at TRL-9 (fully commercial).

Q: About share price and NASDAQ listing, A: Rich Riley talks about plan to get to profitability without additional equity capital and undervalued stock, confident of maintaining NASDAQ listing.