CHICAGO, May 19, 2025 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), a carbon management solutions company, today reported its financial and operating results for the first quarter of 2025.
Key Takeaways:
-- Reported total revenue of $9.5 million for the first quarter of 2025 as
compared to $10.2 million for the first quarter of 2024. The
year-over-year decrease was driven primarily by lower revenues in the
biorefining and Joint Development Agreement ("JDA") & Contract Research
businesses, which was largely offset by a significant increase in
CarbonSmart$(TM)$ revenue.
-- Continued to shift the Company's core operations from research and
development to the global deployment of LanzaTech's commercially proven
technology, with incremental actions being taken to sharpen the business
focus, streamline operations, and improve the Company's cost structure.
-- Closed $40 million of preferred equity capital in May of 2025; however,
after completing its assessment as required by Generally Accepted
Accounting Principles ("GAAP"), management has concluded that its
continuing actions such as ongoing liquidity initiatives, together with
the terms of the preferred capital, and the execution of cost reduction
plans, do not alleviate substantial doubt about the Company's ability to
continue as a going concern.
First Quarter 2025 Financial Results
The table below outlines key results for the first quarter of 2025:
All amounts in millions ($) Three Months Ended March 31,
--------------------------------------
2025 2024
----------
Revenue $ 9.5 $ 10.2
Cost of revenue 7.5 6.8
Gross Profit 2.0 3.4
Operating expenses 33.0 29.6
Net loss (19.2) (25.5)
Adjusted EBITDA loss (1) $ (30.5) $ (22.1)
(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 $9.5 million for the first quarter of 2025 as
compared to total revenue of $10.2 million for the first quarter of 2024.
The decrease was driven primarily by lower biorefining and JDA & Contract
Research revenues year-over-year, which were offset by a significant
increase in CarbonSmart revenue:
-- Biorefining revenue for the first quarter of 2025 was $2.9 million
as compared to $5.0 million for the first quarter of 2024. The
year-over-year decrease was driven primarily by the first quarter
of 2024 benefiting from engineering and other services contracts
with existing customers which have since reached the completion of
their current development phase.
-- JDA & Contract Research revenue for the first quarter of 2025 was
$2.4 million as compared to $4.3 million for the first quarter of
2024. The year-over-year decline was attributable to the
completion of certain government projects during 2024, compounded
by a period of downtime prior to new projects commencing.
-- CarbonSmart revenue for the first quarter of 2025 was $4.2 million
as compared to $0.9 million for the first quarter of 2024. The
year-over-year increase was attributable to incremental direct
fuel sales as a result of establishing licensing arrangements,
identifying partners, and developing supply chain infrastructure
during the third quarter of 2024.
Cost of Revenue
-- For the first quarter of 2025, the cost of revenue was $7.5 million as
compared to $6.8 million for the first quarter of 2024. The
year-over-year increase was driven in part by a change in revenue mix
related to a rise in revenue generated by CarbonSmart, which is a lower
margin business as compared to biorefining and JDA & Contract Research.
Additionally, the biorefining business experienced margin contraction
during the first quarter of 2025 as compared to the same period in 2024
as a result of customer mix.
Operating Expenses
-- For the first quarter of 2025, operating expenses were $33.0 million as
compared to $29.6 million for the first quarter of 2024. The
year-over-year increase was primarily driven by incremental costs
associated with sharpening the business focus, streamlining operations,
and evaluating strategic options.
Net Loss
-- For the first quarter of 2025, net losses were $19.2 million as compared
$25.5 million for the first quarter of 2024. Net loss decreased
year-over-year primarily as a result of a $17.9 million non-cash gain on
financial instruments being recorded in the first quarter of 2025, that
was partially offset by expenses incurred associated with evaluating
strategic options and a $6.5 million non-cash loss recorded related to
equity method investees.
Adjusted EBITDA Loss
-- For the first quarter of 2025, adjusted EBITDA loss was $30.5 million as
compared to $22.1 million for the first quarter of 2024. The increase in
adjusted EBITDA loss year-over-year was primarily attributable to higher
selling, general and administrative expenses as a result of evaluating
strategic options, along with lower revenue and higher cost of sales
period-over-period.
Balance Sheet and Liquidity
As of March 31, 2025, LanzaTech had $23.4 million in total cash, restricted cash, and investments, compared to total cash of $58.1 million at the end of December 31, 2024. The Company subsequently closed $40 million of preferred equity capital in May of 2025.
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 operations as a going concern; the Company's ability to obtain the stockholder approvals necessary to consummate the subsequent equity financing contemplated by the Series A Convertible Senior Preferred Stock Purchase Agreement, dated May 7, 2025; the Company's ability to attract new investors and raise substantial additional financing to fund its operations and/or execute on its other strategic options; the Company's ability to regain compliance with the listing rules of Nasdaq and maintain the listing of its securities on Nasdaq; and the Company's ability to achieve profitability. 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 for the year ended December 31, 2024, its Form 10-Q for the quarter ended March 31, 2025 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.
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 expense, change in fair value of warrant liabilities, change in fair value of Brookfield SAFE liabilities, loss on Brookfield SAFE extinguishment, change in fair value of the FPA Put Option and Fixed Maturity Consideration liabilities, change in fair value of our outstanding convertible note and related transaction costs, change in fair value of Brookfield Loan and(loss) gain from equity method investees. 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
(Unaudited, in thousands, except share and per share
data)
March 31, December 31,
---------- ----------------
2025 2024
-------- ---------
Assets
Current assets:
Cash and cash equivalents $ 13,778 $ 43,499
Held-to-maturity investment securities 7,411 12,374
Trade and other receivables, net of
allowance 9,058 9,456
Contract assets 13,267 18,975
Other current assets 14,157 15,030
-------- ---------
Total current assets 57,671 99,334
Property, plant and equipment, net 20,225 22,333
Right-of-use assets 28,482 26,790
Equity method investment -- 4,363
Equity security investment 14,990 14,990
Other non-current assets 4,467 6,873
-------- ---------
Total assets $ 125,835 $ 174,683
-------- ---------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 6,434 $ 5,289
Other accrued liabilities 7,506 8,876
Warrants 549 3,531
Fixed Maturity Consideration and
current FPA Put Option liability 4,123 4,123
Contract liabilities 5,291 6,168
Accrued salaries and wages 2,451 2,302
Current lease liabilities 166 158
-------- ---------
Total current liabilities 26,520 30,447
Non-current lease liabilities 30,144 30,619
Non-current contract liabilities 5,433 5,233
FPA Put Option liability 30,015 30,015
Brookfield SAFE liability -- 13,223
Brookfield Loan liability 18,416 --
Convertible Note 15,969 51,112
Other long-term liabilities 512 587
-------- ---------
Total liabilities 127,009 161,236
Shareholders' Equity
Common stock, $0.0001 par value,
600,000,000 and 600,000,000 shares
authorized; 197,897,580 and 194,915,711
shares issued and outstanding as of March
31, 2025 and December 31, 2024,
respectively 19 19
Additional paid-in capital 983,991 981,638
Accumulated other comprehensive income 3,648 1,393
Accumulated deficit (988,832) (969,603)
-------- ---------
Total shareholders' equity (1,174) 13,447
-------- ---------
Total liabilities and shareholders'
equity $ 125,835 $ 174,683
======== =========
LANZATECH GLOBAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except share and per share
data)
Three Months Ended March 31,
----------------------------------
2025 2024
-----------
Revenues:
Contracts with customers and
grants $ 3,057 $ 6,250
CarbonSmart product sales 4,204 863
Collaborative arrangements 1,050 2,223
Related party transactions 1,172 908
------------ -----------
Total revenues 9,483 10,244
Costs and operating expenses:
Contracts with customers and
grants(1) 2,902 4,998
CarbonSmart product sales(1) 4,136 919
Collaborative arrangements(1) 461 796
Related party transactions(1) 14 57
Research and development expense 16,494 17,061
Depreciation expense 781 1,530
Selling, general and
administrative expense 15,748 11,037
------------ -----------
Total cost and operating
expenses 40,536 36,398
------------ -----------
Loss from operations (31,053) (26,154)
Other income (expense):
Interest income, net 438 1,148
Other income, net 17,918 179
------------ -----------
Total other income, net 18,356 1,327
------------ -----------
Loss before income taxes (12,697) (24,827)
Income tax expense -- --
Loss from equity method investees,
net (6,532) (681)
------------ -----------
Net loss $ (19,229) $ (25,508)
============ ===========
Other comprehensive loss:
Changes in credit risk of fair
value instruments 2,696 --
Foreign currency translation
adjustments (441) 42
------------ -----------
Comprehensive loss $ (16,974) $ (25,466)
============ ===========
Net loss per common share - basic
and diluted $ (0.10) $ (0.13)
Weighted-average number of common
shares outstanding - basic and
diluted 196,514,267 196,974,508
(1) exclusive of depreciation
LANZATECH GLOBAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended March 31,
--------------------------------------
2025 2024
----------
Cash Flows From Operating
Activities:
Net loss $ (19,229) $ (25,508)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Share-based compensation expense 2,280 2,529
Gain on change in fair value of
SAFE and warrant liabilities (2,932) (13,277)
Loss on Brookfield SAFE
extinguishment 6,216 --
Loss on change in fair value of
the Brookfield Loan 11,426 --
Loss on change in fair value of
the FPA Put Option and the Fixed
Maturity Consideration
liabilities -- 13,045
Gain on change in fair value of
Convertible Note (35,143) --
Provisions for losses on trade
and other receivables, net of
recoveries 126 --
Depreciation of property, plant
and equipment 781 1,530
Amortization of discount on debt
security investment (37) $(360.AU)$
Non-cash lease expense 490 496
Non-cash recognition of licensing
revenue (1,108) (641)
Loss from equity method
investees, net 6,532 681
Unrealized (Gain)/Loss on net
foreign exchange 275 (224)
Changes in operating assets and
liabilities:
Accounts receivable, net 240 645
Contract assets 5,837 (1,029)
Accrued interest on debt
investment 32 (177)
Other assets 895 (3,012)
Accounts payable and accrued
salaries and wages 1,171 (2,207)
Contract liabilities 463 616
Operating lease liabilities (467) (485)
Other liabilities 1,051 (911)
----------- ----------
Net cash used in operating
activities (21,101) (28,289)
----------- ----------
Cash Flows From Investing
Activities:
Purchase of property, plant and
equipment (713) (1,480)
Proceeds from maturity of debt
securities 5,000 10,700
----------- ----------
Net cash provided by investing
activities 4,287 9,220
----------- ----------
Cash Flows From Financing
Activities:
Proceeds from issue of equity
instruments of the Company -- 234
Repurchase of equity instruments of
the Company -- (48)
Partial settlement of the Brookfield
Loan (12,500) --
----------- ----------
Net cash (used in)/provided by
financing activities (12,500) 186
Effects of currency translation on
cash, cash equivalents and
restricted cash (389) 48
----------- ----------
Net decrease in cash, cash
equivalents and restricted cash (29,703) (18,835)
Cash, cash equivalents and
restricted cash at beginning of
period 45,737 76,284
----------- ----------
Cash, cash equivalents and
restricted cash at end of
period $ 16,034 $ 57,449
=========== ==========
Supplemental disclosure of non-cash
investing and financing activities:
Acquisition of property, plant and
equipment under accounts payable 255 141
Extinguishment of the Brookfield
SAFE 13,274 --
Issuance of the Brookfield Loan (19,490) --
LANZATECH GLOBAL INC.
Reconciliation of GAAP Net Loss to Adjusted EBITDA
(Unaudited, in thousands)
Three Months Ended March 31,
--------------------------------------
2025 2024
----------
Net Loss $ (19,229) $ (25,508)
Depreciation 781 1,530
Interest income, net (438) (1,148)
Stock-based compensation expense and
change in fair value of Brookfield
SAFE and warrant liabilities (1) (652) (10,748)
Loss on Brookfield SAFE
extinguishment 6,216 --
Change in fair value of the FPA Put
Option and Fixed Maturity
Consideration liabilities (net of
interest accretion reversal) -- 13,045
Change in fair value of Convertible
Note and related transaction costs (35,143) --
Change in fair value of Brookfield
Loan 11,426 --
Loss from equity method investees,
net 6,532 681
----------- ----------
Adjusted EBITDA $ (30,507) $ (22,148)
=========== ==========
(1) Stock-based compensation expense represents expense
related to equity compensation plans.
Investor Relations Contact
Kate Walsh
VP, Investor Relations & Tax
Investor.Relations@lanzatech.com
(END) Dow Jones Newswires
May 19, 2025 07:00 ET (11:00 GMT)
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