Achieved total revenue of $17.4 million for second-quarter 2024, exceeding expectations

Reaffirming full-year 2024 outlook, including total revenue of $90 million - $105 million

Announcing $40 million investment by Carbon Direct Capital, strengthening financial flexibility

CHICAGO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ:LNZA) ("LanzaTech" or the "Company"), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, and materials, today reported its financial and operating results for second-quarter 2024, reaffirmed its previously issued financial outlook for full-year 2024, and is announcing a $40 million investment by new investor Carbon Direct Capital.

Highlights:

"We made progress on a number of strategic fronts during the quarter, including growing revenue, increasing our stake in LanzaJet, launching CirculAir, commencing direct CarbonSmart ethanol fuel sales, and bringing Carbon Direct Capital onboard as an important new investor," said Dr. Jennifer Holmgren, Board Chair and Chief Executive Officer of LanzaTech.

"As we continue to execute our vision of a circular carbon economy, our competitive advantage is increasingly clear, driven by the feedstock flexibility of our platform and the commercial-scale plants operating today. We are attracting large, high-quality customers worldwide that are interested in the waste-derived products and fuels that our platform produces at scale. That interest is driven in large part because we are successfully converting a wide-range of carbon-rich waste feedstocks such as municipal waste, agriculture and biomass waste, and industrial off-gases into valuable ethanol today."

Holmgren concluded, "Looking forward, we expect our existing licensees' operations to continue to ramp to full production capacity and we have a number of sizable customer projects that are expected to move through final investment decision and into construction by the end of 2024. Beyond 2024, our primary financial objective is to reach profitability expeditiously, by driving growth in revenue and gross profit, and the way we get there is by executing projects and deploying licenses while being diligent with cost management, and that's exactly the type of progress we are delivering today."

Second-Quarter 2024 Financial Results

The table below outlines key reported second-quarter 2024 results:

$ millions, unless noted 2Q24 2Q23 % Change
Revenue 17.4  12.9  35 %
Cost of revenue 5.5  10.8  (49)%
Gross Profit 11.9  2.1  469 %
Operating expenses 34.7  32.7  6 %
Net income (loss) (27.8) (26.8) (4)%
Adjusted EBITDA (loss) (17.8) (23.8) 25 %
          

Revenue

Cost of Revenue

Operating Expenses

Net Loss

Adjusted EBITDA Loss

Commercial & Operational Highlights

LanzaTech continues to execute on key aspects of its business model, with a number of notable commercial and operational achievements during second-quarter 2024:

Notable Financing Activity

On August 6, 2024, LanzaTech successfully closed a new $40 million investment by Carbon Direct Capital, a globally recognized investor focused on investing in carbon management companies. The additional capital will be used to fund growth and working capital, and was invested pursuant to a convertible note purchase agreement which contemplates one or more closings for up to $150 million of Convertible Notes. LanzaTech continues to seek additional financing under the Convertible Note Purchase Agreement from certain accredited investors with whom the Company has a preexisting substantive relationship.

Balance Sheet, Liquidity

As of June 30, 2024, LanzaTech had $75.8 million in total cash, restricted cash, and investments, compared to total cash of $92.3 million at the end of first-quarter 2024. As of August 7, 2024, post funding of the $40 million capital raise, LanzaTech has total cash in excess of $100 million.

Total cash burn in second-quarter 2024 was $16.5 million, which was down significantly as compared to $29.2 million for first-quarter 2024. The decrease in quarter-over-quarter was due to a number of large annual payments incurred in first-quarter 2024, including 2023 incentive compensation, the majority of 2024 insurance premiums, and others cash payments that are expensed throughout the year but funded in the first quarter.

Full-Year 2024 Financial and Operating Outlook

LanzaTech is reaffirming its previously issued financial and operating outlook for full-year 2024. The table below outlines full-year 2024 guidance metrics:

$ millions  2024
Revenue  $90 - $105
Adjusted EBITDA (loss)  $(65) - $(55)
    

Conference Call Information

LanzaTech will host a conference call today, August 8, 2024, at 8:30 A.M. EDT to review the Company's financial results, discuss recent events, and conduct a question-and-answer session.

The conference call may be accessed via a live webcast on a listen-only basis through the Events and Presentations section of LanzaTech's Investor Relations website pages. An archive of the webcast will be available for twelve months.

To attend the live conference call via telephone, domestic callers can access by dialing 1-800-445-7795 and international callers can access by dialing 1-785-424-1789, and entering the conference identification code: LANZA

A replay of the conference call will be available shortly after the call ends and can be accessed by domestic callers by dialing 1-844-512-2921 and by international callers by dialing 1-412-317-6671, and entering the access identification code: 11156373. The replay will be available until 11:59 pm Eastern Time August 22, 2024.

About LanzaTech

LanzaTech Global, Inc. (NASDAQ:LNZA) is the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, and materials. 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. By partnering with companies across the global supply chain like ArcelorMittal, Zara, H&M Move, Coty, and On, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, 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. 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 Annual Report on Form 10-K for the year ended December 31, 2023 filed by LanzaTech with the SEC, 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, 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 the Board 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.

The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most comparable U.S. GAAP financial measures on a forward-looking basis, including adjusted EBITDA, because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP results for the guidance period.



LANZATECH GLOBAL INC.

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share and per share data)

 As of
 June 30, 2024 December 31, 2023
Assets   
Current assets:   
Cash and cash equivalents$62,186  $75,585 
Held-to-maturity investment securities 12,890   45,159 
Trade and other receivables, net of allowance 8,162   11,157 
Contract assets 27,095   28,238 
Other current assets 14,662   12,561 
Total current assets 124,995   172,700 
Property, plant and equipment, net 23,032   22,823 
Right-of-use assets 26,356   18,309 
Equity method investment 16,592   7,066 
Equity security investment 14,990   14,990 
Other non-current assets 5,910   5,736 
Total assets 211,875   241,624 
Liabilities and Shareholders' Equity   
Current liabilities:   
Accounts payable$4,010  $4,060 
Other accrued liabilities 9,088   7,316 
Warrants 3,192   7,614 
Contract liabilities 6,012   3,198 
Accrued salaries and wages 5,931   5,468 
Current lease liabilities 156   126 
Total current liabilities 28,389   27,782 
Non-current lease liabilities 29,227   19,816 
Non-current contract liabilities 8,070   8,233 
Fixed Maturity Consideration 8,246   7,228 
FPA Put Option liability 60,503   37,523 
Brookfield SAFE liability 9,250   25,150 
Other long-term liabilities 654   1,421 
Total liabilities 144,339   127,153 
    
Shareholders' Equity   
Common stock, $0.0001 par value; 400,000,000 and 400,000,000 shares authorized, 197,765,067 and 196,642,451 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 19   19 
Additional paid-in capital 950,481   943,960 
Accumulated other comprehensive income 2,215   2,364 
Accumulated deficit (885,179)  (831,872)
Total shareholders' equity$67,536  $114,471 
Total liabilities and shareholders' equity$211,875  $241,624 



LANZATECH GLOBAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share and per share data)

 Three Months Ended June 30, Six Months Ended June 30,
  2024   2023   2024   2023 
Revenue:       
Revenue from contracts with customers and grants$6,235  $10,372  $12,485  $17,957 
Revenue from sales of CarbonSmart products 938   1,007   1,801   1,007 
Revenue from collaborative arrangements 1,329   462   3,552   1,550 
Revenue from related party transactions 8,873   1,076   9,781   2,049 
Total revenue 17,375   12,917   27,619   22,563 
        
Cost and operating expenses:       
Cost of revenue from contracts with customers and grants (exclusive of depreciation shown below) (4,019)  (9,631)  (9,017)  (16,973)
Cost of revenue from sales of CarbonSmart products (exclusive of depreciation shown below) (614)  (727)  (1,533)  (727)
Cost of revenue from collaborative arrangements (exclusive of depreciation shown below) (759)  (419)  (1,555)  (826)
Cost of revenue from related party transactions (exclusive of depreciation shown below) (99)  (50)  (156)  (91)
Research and development expense (21,481)  (18,908)  (38,542)  (35,194)
Depreciation expense (1,458)  (1,348)  (2,988)  (2,605)
Selling, general and administrative expense (11,747)  (12,452)  (22,784)  (29,287)
Total cost and operating expenses (40,177)  (43,535)  (76,575)  (85,703)
Loss from operations (22,802)  (30,618)  (48,956)  (63,140)
Other income (expense):       
Interest income, net 513   1,701   1,661   1,915 
Other (expense) income, net (3,791)  2,001   (3,612)  (28,395)
Total other income (expense), net (3,278)  3,702   (1,951)  (26,480)
Loss before income taxes (26,080)  (26,916)  (50,907)  (89,620)
(Loss) gain from equity method investees, net (1,719)  130   (2,400)  (478)
Net loss$(27,799) $(26,786) $(53,307) $(90,098)
        
Other comprehensive loss:       
Foreign currency translation adjustments (191)  96   (150)  47 
Comprehensive loss$(27,990) $(26,690) $(53,457) $(90,051)
        
Unpaid cumulative dividends on preferred stock —   —   —   (4,117)
Net loss allocated to common shareholders$(27,799) $(26,786) $(53,307) $(94,215)
        
Net loss per common share - basic and diluted$(0.14) $(0.14) $(0.27) $(0.60)
Weighted-average number of common shares outstanding - basic and diluted 197,746,569   195,537,601   197,360,539   156,472,730 



LANZATECH GLOBAL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

 Six Months Ended June 30,
  2024   2023 
Cash Flows From Operating Activities:   
Net loss$(53,307) $(90,098)
Adjustments to reconcile net loss to net cash used in operating activities:   
Share-based compensation expense 6,231   8,715 
Gain on change in fair value of SAFE and warrant liabilities (20,322)  (4,663)
Loss on change in fair value of the FPA Put Option and the Fixed Maturity Consideration liabilities 23,998   33,029 
Recoveries and provision for losses on trade and other receivables (700)  800 
Depreciation of property, plant and equipment 2,988   2,605 
Amortization of discount on debt security investment (501)  (508)
Non-cash lease expense 887   387 
Non-cash recognition of licensing revenue (9,240)  (1,136)
Loss from equity method investees, net 2,400   478 
Net foreign exchange gain (131)  194 
Changes in operating assets and liabilities:   
Accounts receivable, net 3,575   3,129 
Contract assets 1,034   (3,668)
Accrued interest on debt investment 120   (93)
Other assets (2,269)  (8,942)
Accounts payable and accrued salaries and wages 458   1,881 
Contract liabilities 128   (150)
Operating lease liabilities 507   (19)
Other liabilities 1,202   (1,057)
Net cash used in operating activities$(42,942) $(59,116)
Cash Flows From Investing Activities:   
Purchase of property, plant and equipment (3,268)  (5,318)
Purchase of debt securities —   (49,103)
Proceeds from maturity of debt securities 32,770   — 
Purchase of additional interest in equity method investment —   (288)
Origination of related party loan —   (5,212)
Net cash provided by/ (used in) investing activities$29,502  $(59,921)
Cash Flows From Financing Activities:   
Proceeds from issue of equity instruments of the Company 272   1,077 
Proceeds from the Business Combination and PIPE, net of transaction expenses (Note 3) —   213,381 
Forward Purchase Agreement prepayment —   (60,096)
Repurchase of equity instruments of the Company (48)  (7,650)
Net cash provided by financing activities$224  $146,712 
Net decrease in cash, cash equivalents and restricted cash (13,216)  27,675 
Cash, cash equivalents and restricted cash at beginning of period 76,284   83,710 
Effects of currency translation on cash, cash equivalents and restricted cash (177)  4 
Cash, cash equivalents and restricted cash at end of period$62,891  $111,389 
Supplemental disclosure of non-cash investing and financing activities:   
Acquisition of property, plant and equipment under accounts payable 235   125 
Right-of-use asset additions 8,934   — 
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 Shortfall warrant to equity —   3,063 



Reconciliation of GAAP Net Income to Adjusted EBITDA

(In thousands of U.S. dollars)

   Three Months Ended June 30, Six Months Ended June 30,
(In thousands) 2024   2023   2024   2023 
Net Loss$(27,799) $(26,786) $(53,307) $(90,098)
Depreciation 1,458   1,348   2,988   2,605 
Interest income, net (513)  (1,701)  (1,661)  (1,915)
Stock-based compensation expense and change in fair value of SAFE and warrant liabilities (1) (3,344)  21,526   (14,091)  4,052 
Change in fair value of the FPA Put Option and Fixed Maturity Consideration liabilities (net of interest accretion reversal) 10,727   (18,080)  23,770   33,029 
Transaction costs on issuance of Forward Purchase Agreement —   —   —   451 
Loss from equity method investees, net 1,719   (130)  2,400   478 
One-time costs related to the Business Combination, initial securities registration and non-recurring regulatory matters(2) —   —   —   4,062 
Adjusted EBITDA$(17,752) $(23,823) $(39,901) $(47,336)
          
(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 - LanzaTech

Kate Walsh

VP, Investor Relations & Tax

Investor.Relations@lanzatech.com



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