CHICAGO, April 15, 2025 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), a carbon management solutions company, today filed its annual report for the fiscal year ended December 31, 2024 (the "Form 10-K").
Key Takeaways:
-- Reported total revenue of $12.0 million for fourth-quarter 2024 as
compared to $20.5 million for fourth-quarter 2023. The decrease was
driven primarily by fourth-quarter 2023 benefiting from engineering
services performed across several projects which were subsequently
completed. Fourth-quarter 2024 revenue was within the forecasted range of
potential outcomes previously provided, albeit at the low end of the
range due to continued timing delays with several large biorefining
projects that remain underway.
-- Reported revenue of $49.6 million for full-year 2024 as compared to $62.6
million for full-year 2023. The year-over-year decrease was primarily
driven by 2023 results benefiting from projects that have since reached
the completion of their current development phase, coupled with timing
delays related to several large biorefining projects experienced
throughout 2024.
-- Shifting the Company's core operational focus from research and
development to global deployment LanzaTech's commercially proven
technology is underway, with actions being taken to sharpen the business
focus and improve the Company's cost structure.
-- Evaluating liquidity enhancing initiatives, including capital raising,
partnership or asset-related opportunities, and other strategic options.
Management has concluded that these initiatives and cost reduction plans
do not alleviate substantial doubt about the Company's ability to
continue as a going concern, per applicable GAAP requirements.
Fourth-Quarter and Full-Year 2024 Financial Results
The table below outlines key reported fourth-quarter and full-year 2024 results ($ millions, unless noted):
Years Ended December
Three Months Ended December 31, 31,
------------------------------- -----------------------
2024 2023 2024 2023
------ ------
Revenue $ 12.0 $ 20.5 $ 49.6 $ 62.6
Cost of
revenue 5.6 12.0 26.0 45.0
Gross
Profit 6.5 8.5 23.6 17.7
Operating
expenses 33.5 27.1 132.6 124.0
Net loss (27.0) (18.7) (137.7) (134.1)
Adjusted
EBITDA
loss (1) $ (21.2) $ (19.6) $ (88.2) $ (80.1)
(1) See "Non-GAAP Financial Measures" and "Reconciliations of GAAP Net Loss to Adjusted EBITDA" sections herein for an explanation and reconciliations of non-GAAP measures used throughout this release.
Revenue
-- Reported total revenue of $12.0 million and $49.6 million for
fourth-quarter and full-year 2024, respectively, as compared to total
revenue of $20.5 million and $62.6 million for fourth-quarter and
full-year 2023, respectively. The decrease during both periods was driven
primarily by 2023 results benefiting from engineering and other services
contracts with existing customers and government entities whose projects
have since reached completion of their current development phase.
Additionally, several large projects experienced timing delays during
2024, which impacted their transferring to the phase where revenue is
recognized. Fourth-quarter 2024 revenues were within the forecasted range
of potential outcomes previously provided, albeit at the low end of the
range due to the aforementioned project delays. Two key projects that did
not transfer to a third party, the phase in which revenues are recognized
for these projects, were Project Drake in the European Union, and
LanzaTech's site under development in Norway. In addition, LanzaTech
continues to expect additional LanzaJet shares to be issued with
sublicensing events of LanzaJet's alcohol-to-jet technology. These
projects remain underway during 2025. Fourth-quarter 2024 results include
revenue attributable to Project SECURE, which, in December of 2024, was
awarded Department of Energy funding for the initiation of phase one of
the project. Project SECURE is led by Technip Energies, in partnership
with LanzaTech.
-- Joint Development Agreement ("JDA") & Contract Research revenue for
fourth-quarter and full-year 2024 was $1.7 million and $10.6 million,
respectively, as compared to $4.2 million and $14.6 million for
fourth-quarter and full-year 2023, respectively. The year-over-year
decline in both cases was attributable to certain government projects
being completed, compounded by a period of downtime prior to new projects
commencing, primarily during the second half of 2024.
-- CarbonSmart$(TM)$ revenue for fourth-quarter and full-year 2024 was $3.9
million and $7.9 million, respectively, as compared to $2.1 million and
$5.3 million for fourth-quarter and full-year 2023, respectively.
Fourth-quarter 2024 revenues increased by 88 percent as compared to
fourth-quarter 2023 due to incremental direct fuel sales as a result of
establishing licensing arrangements, partners, and supply chain
infrastructure during third-quarter 2024.
Cost of Revenue
-- Fourth-quarter and full-year 2024 cost of revenue was $5.6 million and
$26.0 million, respectively, as compared to $12.0 million and $45.0
million for fourth-quarter and full-year 2023, respectively. Cost of
revenue for fourth-quarter 2024 was largely comprised of the cost of the
CarbonSmart product sold and headcount allocations related to the
delivery of biorefining services and JDA work. Gross margin for
fourth-quarter 2024 was 54 percent largely as a function of revenue mix,
including additional lower-margin CarbonSmart sales.
Operating Expenses
-- Fourth-quarter and full-year 2024 operating expenses were $33.5 million
and $132.6 million, respectively, as compared to $27.1 million and $124.0
million for fourth-quarter and full-year 2023. The increase
year-over-year was driven primarily by project-related expenses, like
those incurred for Project Drake and LanzaTech's project in Norway, that
are expected to be recovered once the projects advance to Final
Investment Decision ("FID").
Net Loss
-- Fourth-quarter and full-year 2024 net losses were $27.0 million and
$137.7 million, respectively, as compared to fourth-quarter and full-year
2023 net losses of $18.7 million and $134.1 million, respectively. The
increase was attributable to a non-cash expense on financial instruments,
as well as the same factors that drove the reduction in revenue as
compared to prior periods.
Adjusted EBITDA Loss
-- Fourth-quarter and full-year 2024 adjusted EBITDA losses were $21.2
million and $88.2 million, respectively, as compared to adjusted EBITDA
losses of $19.6 million and $80.1 million for fourth-quarter and
full-year 2023, respectively. The increases in losses year-over-year are
mainly attributable to the same factors that drove the reduction in
revenue for the comparative periods.
Balance Sheet and Liquidity
As of December 31, 2024, LanzaTech had $58.1 million in total cash, restricted cash, and investments, compared to total cash of $89.1 million at the end of third-quarter 2024.
About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein. Using its biorecycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives that captured carbon a new life as a clean replacement for virgin fossil carbon in everything from household cleaners and clothing fibers to packaging and fuels. For more information about LanzaTech, please visit https://lanzatech.com.
Forward Looking Statements
This press release includes forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial, of LanzaTech. These statements are based on the beliefs and assumptions of LanzaTech's management. Although LanzaTech believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, LanzaTech cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects," "projects," "forecasts," "may," "will," "should," "seeks," "plans," "scheduled," "anticipates," "intends" or similar expressions. The forward-looking statements are based on projections prepared by, and are the responsibility of, LanzaTech's management. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside LanzaTech's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including the
Company's ability to continue to operate as a going concern. LanzaTech may be adversely affected by other economic, business, or competitive factors, and other risks and uncertainties, including those described under the header "Risk Factors" in its Form 10-K and in future SEC filings. New risk factors that may affect actual results or outcomes emerge from time to time and it is not possible to predict all such risk factors, nor can LanzaTech assess the impact of all such risk factors on its business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Forward-looking statements are not guarantees of performance. You should not put undue reliance on these statements, which speak only as of the date hereof. All forward-looking statements attributable to LanzaTech or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. LanzaTech undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
To supplement our financial statements presented in accordance with US GAAP and to provide investors with additional information regarding our financial results, we have presented adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is not based on any standardized methodology prescribed by US GAAP and is not necessarily comparable to similarly titled measures presented by other companies.
We define adjusted EBITDA as our net loss, excluding the impact of depreciation, interest income, net, stock-based compensation, change in fair value of warrant liabilities, change in fair value of SAFE liabilities, change in fair value of the FPA Put Option liability and Fixed Maturity Consideration, change in fair value of our outstanding convertible note, transaction costs on issuance of Forward Purchase Agreement, (loss) gain from equity method investees and other one-time costs related to the Business Combination and securities registration on Form S-4 and our registration statement on Form S-1. We monitor adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our operating performance, to establish budgets, and to develop operational goals for managing our business. We believe adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of certain expenses that we include in net loss. Accordingly, we believe adjusted EBITDA provides useful information to investors, analysts, and others in understanding and evaluating our operating results and enhancing the overall understanding of our past performance and future prospects.
Adjusted EBITDA is not prepared in accordance with US GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with US GAAP. There are a number of limitations related to the use of adjusted EBITDA rather than net loss, which is the most directly comparable financial measure calculated and presented in accordance with US GAAP. For example, adjusted EBITDA: (i) excludes stock-based compensation expense because it is a significant non-cash expense that is not directly related to our operating performance; (ii) excludes depreciation expense and, although this is a non-cash expense, the assets being depreciated and amortized may have to be replaced in the future; (iii) excludes gain or losses on equity method investee; and (iv) excludes certain income or expense items that do not provide a comparable measure of our business performance. In addition, the expenses and other items that we exclude in our calculations of adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from adjusted EBITDA when they report their operating results. In addition, other companies may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.
LANZATECH GLOBAL INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
December 31,
----------------------------------------
2024 2023
----------------
Assets
Current assets:
Cash and cash equivalents $ 43,499 $ 75,585
Held-to-maturity
investment securities 12,374 45,159
Trade and other
receivables, net of
allowance 9,456 11,157
Contract assets 18,975 28,238
Other current assets 15,030 12,561
---------------- ----------------
Total current assets 99,334 172,700
Property, plant and
equipment, net 22,333 22,823
Right-of-use assets 26,790 18,309
Equity method investment 4,363 7,066
Equity security investment 14,990 14,990
Other non-current assets 6,873 5,736
---------------- ----------------
Total assets $ 174,683 $ 241,624
---------------- ----------------
Liabilities and
Shareholders' Equity
Current liabilities:
Accounts payable $ 5,289 $ 4,060
Other accrued liabilities 8,876 7,316
Warrants 3,531 7,614
Fixed Maturity
Consideration and current
FPA Put Option liability 4,123 --
Contract liabilities 6,168 3,198
Accrued salaries and
wages 2,302 5,468
Current lease liabilities 158 126
---------------- ----------------
Total current
liabilities 30,447 27,782
Non-current lease
liabilities 30,619 19,816
Non-current contract
liabilities 5,233 8,233
Fixed Maturity Consideration -- 7,228
FPA Put Option liability 30,015 37,523
Brookfield SAFE liability 13,223 25,150
Convertible Note 51,112 --
Other long-term liabilities 587 1,421
---------------- ----------------
Total liabilities 161,236 127,153
Shareholders' Equity
Common stock, $0.0001 par
value, 600,000,000 and
400,000,000 shares
authorized; 194,915,711 and
196,642,451 shares issued
and outstanding as of
December 31, 2024 and
December 31, 2023,
respectively 19 19
Additional paid-in
capital 981,638 943,960
Accumulated other
comprehensive income 1,393 2,364
Accumulated deficit (969,603) (831,872)
---------------- ----------------
Total shareholders'
equity $ 13,447 $ 114,471
---------------- ----------------
Total liabilities and
shareholders' equity $ 174,683 $ 241,624
================ ================
LANZATECH GLOBAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended December
31, Years Ended December 31,
---------------------------- ------------------------------
2024 2023 2024 2023
----------- -----------
Revenues:
Contracts with
customers and
grants $ 5,311 $ 13,834 $ 22,995 $ 45,953
CarbonSmart
product sales 3,933 2,072 7,943 5,337
Collaborative
arrangements 1,104 2,413 5,573 5,529
Related party
transactions 1,682 2,144 13,081 5,812
----------- ----------- ----------- -----------
Total revenues 12,030 20,463 49,592 62,631
Costs and operating
expenses:
Contracts with
customers and
grants(1) 985 8,818 15,341 37,653
CarbonSmart
product
sales(1) 3,894 2,390 7,543 4,889
Collaborative
arrangements(1) 532 761 2,566 2,265
Related party
transactions(1) 157 22 520 172
Research and
development
expense 16,459 16,303 77,007 68,142
Depreciation
expense 1,278 1,471 5,567 5,452
Selling, general
and
administrative
expense 15,745 9,343 49,981 50,438
----------- ----------- ----------- -----------
Total cost and
operating
expenses 39,050 39,108 158,525 169,011
----------- ----------- ----------- -----------
Loss from operations (27,020) (18,645) (108,933) (106,380)
Other income
(expense):
Interest income,
net 710 1,408 3,162 4,572
Other expense,
net 5,616 524 (17,726) (29,388)
----------- ----------- ----------- -----------
Total other
expense, net 6,326 1,932 (14,564) (24,816)
----------- ----------- ----------- -----------
Loss before income
taxes (20,694) (16,713) (123,497) (131,196)
Income tax expense -- -- -- --
Loss from equity
method investees,
net (6,299) (1,961) (14,234) (2,902)
----------- ----------- ----------- -----------
Net loss $ (26,993) $ (18,674) $ (137,731) $ (134,098)
=========== =========== =========== ===========
Other comprehensive
loss:
Changes in
credit risk of
fair value
instruments (1,096) -- (1,096) --
Foreign currency
translation
adjustments 322 578 124 (376)
----------- ----------- ----------- -----------
Comprehensive loss $ (27,767) $ (18,096) $ (138,703) $ (134,474)
=========== =========== =========== ===========
Unpaid
cumulative
dividends on
preferred
stock -- -- -- (4,117)
----------- ----------- ----------- -----------
Net loss
allocated to
common
shareholders $ (26,993) $ (18,674) $ (137,731) $ (138,215)
=========== =========== =========== ===========
Net loss per common
share - basic and
diluted $ (0.14) $ (0.10) $ (0.70) $ (0.79)
Weighted-average
number of common
shares
outstanding -
basic and
diluted 197,789,128 196,227,601 197,579,945 176,023,219
(1) exclusive of depreciation
LANZATECH GLOBAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
------------------------------
2024 2023
---------
Cash Flows From Operating Activities:
Net loss $ (137,731) $ (134,098)
Adjustments to reconcile net loss to net
cash used in operating activities:
Share-based compensation expense 13,208 15,199
Gain on change in fair value of SAFE
and warrant liabilities (17,887) (14,471)
Loss on change in fair value of the
FPA Put Option and the Fixed
Maturity Consideration liabilities 23,510 44,300
Loss on change in fair value of
Convertible Note 11,894 --
Provisions for losses on trade and
other receivables, net of
recoveries 961 700
Depreciation of property, plant and
equipment 5,592 5,452
Amortization of discount on debt
security investment (854) (1,301)
Non-cash lease expense 1,713 1,526
Non-cash recognition of licensing
revenue (11,532) (1,805)
Loss from equity method investees,
net 14,234 2,902
Gain from disposal of PPE (25) --
Unrealized (Gain)/loss on net
foreign exchange (284) 182
Changes in operating assets and
liabilities:
Accounts receivable, net 557 104
Contract assets 9,162 (10,049)
Accrued interest on debt investment 183 (266)
Other assets (2,066) (2,658)
Accounts payable and accrued
salaries and wages (1,790) (4,991)
Contract liabilities 311 95
Operating lease liabilities 641 (337)
Other liabilities 1,143 2,220
---------- ---------
Net cash used in operating
activities (89,060) (97,296)
---------- ---------
Cash Flows From Investing Activities:
Purchase of property, plant and
equipment (5,312) (8,553)
Proceeds from disposal of property,
plant and equipment 25 --
Purchase of debt securities (27,083) (93,858)
Proceeds from maturity of debt
securities 60,722 50,000
Purchase of additional interest in
equity method investment -- (288)
Origination of related party loan -- (5,212)
---------- ---------
Net cash provided by/(used in)
investing activities 28,352 (57,911)
---------- ---------
Cash Flows From Financing Activities:
Proceeds from the Business Combination
and PIPE, net of transaction expenses
(Note 3) -- 213,381
FPA prepayment -- (60,096)
Proceeds from exercise of options 300 2,550
Repurchase of equity instruments of the
Company (48) (7,650)
Settlement of FPA (10,039) --
Proceeds from issuance of Convertible
Note, net 40,000 --
---------- ---------
Net cash provided by financing
activities 30,213 148,185
Effects of currency translation on cash,
cash equivalents and restricted cash (52) (404)
---------- ---------
Net decrease in cash, cash equivalents
and restricted cash (30,547) (7,426)
Cash, cash equivalents and restricted
cash at beginning of period 76,284 83,710
---------- ---------
Cash, cash equivalents and restricted
cash at end of period $ 45,737 $ 76,284
========== =========
Supplemental disclosure of non-cash
investing and financing activities:
Acquisition of property, plant and
equipment under accounts payable $ 132 $ 279
Right-of-use asset additions 10,194 12,866
Non-cash partial reversal of FPA upon
settlement 24,084 --
Third-party issuance costs for the
Convertible Note 3,169 --
Reclassification of capitalized costs
related to the business combination to
equity -- 1,514
Cashless conversion of warrants on
preferred shares -- 5,890
Recognition of public and private
warrant liabilities in the Business
Combination -- 4,624
Reclassification of AM SAFE warrant to
equity -- 1,800
Conversion of AM SAFE liability into
common stock -- 29,730
Conversion of Legacy LanzaTech NZ, Inc.
preferred stock and in-kind dividend
into common stock -- 722,160
Reclassification of FPA Warrants to
equity $ -- $ 3,063
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(In thousands)
Unaudited
Three Months Ended
December 31, Years Ended December 31,
-------------------- ------------------------
2024 2023 2024 2023
------- --------
Net Loss $(26,993) $(18,674) $(137,731) $(134,098)
Depreciation 1,278 (1,471) 5,567 5,452
Interest income, net (710) (1,408) (3,162) (4,572)
Stock-based
compensation expense
and change in fair
value of SAFE and
warrant liabilities
(1) 6,191 -- (4,679) 728
Change in fair value
of the FPA Put
Option and Fixed
Maturity
Consideration
liabilities (net of
interest accretion
reversal) -- -- 23,283 44,300
Change in fair value
of Convertible Note
and related
transaction costs (7,296) -- 14,276 --
Transaction costs on
issuance of FPA -- -- -- 451
Loss from equity
method investees,
net 6,299 1,961 14,234 2,902
One-time costs
related to the
Business
Combination, initial
securities
registration and
non-recurring
regulatory
matters(2) -- -- -- 4,693
------- ------- -------- --------
Adjusted EBITDA $(21,231) $(19,592) $ (88,212) $ (80,144)
======= ======= ======== ========
(1 ) Stock-based compensation expense represents
expense related to equity compensation plans.
(2 ) Represents costs incurred related to the
Business Combination that do not meet the
direct and incremental criteria per SEC Staff
Accounting Bulletin Topic 5.A to be charged
against the gross proceeds of the transaction,
but are not expected to recur in the future,
as well as costs incurred subsequent to deal
close related to our securities registration
on Form S-4 and our registration statement on
Form S-1. Regulatory matters includes fees
related to non-recurring items during the year
ended December 31, 2023.
Investor Relations Contact
Kate Walsh
VP, Investor Relations & Tax
Investor.Relations@lanzatech.com
(END) Dow Jones Newswires
April 15, 2025 16:15 ET (20:15 GMT)
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