Q3 2025 Origin Materials Inc Earnings Call

Listen only mode and the conference is being recorded.

After the presentation there'll be an opportunity to ask questions.

To join the question queue you May Press Star then one on your telephone keypad Shouldnt.

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 will 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 CEO and co founder John Briscoe, followed by CFO and COO, Matt Lab, and then we'll open the call to questions from analysts and discuss questions submitted as part of this quarter's ask origin campaign.

John Bissell: The question is about our qualification of our own lines. Not the lines for using caps, but the lines for making caps. These are our CapFormer lines. What we do during factory acceptance testing, which is FAT, which is something we talk a lot about, is that's us testing the performance of the equipment at the site that the equipment was fabricated and assembled. Hence, in the factory, not our factory, but the factory of the equipment suppliers. That's verifying that before the equipment ever leaves the factory, that it's operating the way it's supposed to, to all of its specs. With successful completion of the FAT, the factory acceptance test, it all gets boxed up. It gets shipped to wherever we're going to install and operate that equipment. Frequently, that means our Reed City manufacturing location in Michigan.

Ahead of this call origin has issued its 2025 third quarter press release.

And presentation. These can be found on the Investor Relations section of our website at origin material is dot 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 the 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.

John Bissell: We unbox all of the equipment, reintegrate all of it, assemble it, start it up, and then we run it again. We see if it performs the same way now installed at a completely different location where we're going to be operating it for the foreseeable future to see if it runs the way that it did during the factory acceptance testing. When we have checked that off and it is running the way that it was before, that is the completion largely of the site acceptance test, or the SAT. That's the FAT and the site acceptance test. Now, we also go through a line startup and qualification process for ourselves, which is where we're not testing whether the equipment is working.

As supplemental measures of origin materials performance. These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from 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 all.

It will be available in the Investor Relations section of our company website and with that I will turn the call over to John.

Speaker #1: Welcome to Origin Materials. Thank you for standing by. This is the conference operator. This is the third quarter 2025 earnings call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. There will be an opportunity to ask questions.

Thank you Ryan and good afternoon.

Today, we are announcing financing that strengthens our balance sheet and provides access to additional capital that can be staged according to our manufacturing capacity build out this.

John Bissell: We are dialing in the equipment so that it is operating exactly to the performance specifications that we're looking for as long-term operators of that equipment. That's less of a test of does the equipment work. That's do we have it honed in properly so that we're getting the level of precision that we want to see on those lines, so that when we're shipping caps to customers, we are comfortable that those caps statistically are meeting the specifications as frequently as they need to to make sure that when we go on to customer qualifications on their lines, those caps are going to work the way that they're supposed to.

This financing fuels the scale up of PDT cap production.

Speaker #1: To join recorded. the question queue, you may press After the 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.

Our financing is composed of debt financing, both equipment back and corporate level debt with the selection ability to optimize cash management and cost of capital by optionally servicing the debt with equity.

Speaker #1: At this time, for opening remarks and Smith, co-founder and chief product officer. Please go ahead. introductions, I will turn the call over to Ryan

Following our evaluation of multiple corporate financing structures over the past couple of quarters, we have executed a secured convertible debt facility with an initial close of $15 million in cash by the end of the month with the capacity for additional tranches up to a total of $90 million as needed to maintain a healthy cash floor and to fund.

Speaker #2: Thank you. Good afternoon, and thank you for joining us, everyone. Speaking first today is Origin CEO and co-founder John Bissell, followed by CFO and CEO Matt Plavan.

Speaker #2: Then we'll open the call to questions from analysts and discuss questions submitted campaign. Ahead of this call, Origin has release and presentation. These can be as part of this quarter's Ask Origin issued its 2025 third quarter press found on the Investor Relations section of our 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.

Gross.

During the third quarter, we evaluated a number of term sheets for cat farmer equipment financing and from.

Ryan Smith: Great. Thank you. The next question from an investor asks, can you speak to the customer demand in Europe versus the US given the environmental stance of the current US administration and how that factors into your expected growth plans?

From those in the fourth quarter added 20 million U S and equipment backed financing capacity, bringing our total equipment financing capacity to approximately $30 million.

We believe the funding from these two sources will enable us to continue to keep pace with our manufacturing build out and to serve the forthcoming volume orders pursuant to qualification.

Speaker #2: These website at originmaterials.com. 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 of any revision to these forward-looking statements in light of new information or future risks and uncertainties that could cause actual results events.

John Bissell: Yeah, I think the first thing to say here is we see a real delamination between the sort of sustainability treatment and public opinion of something like a sustainable material or a climate technology, low-carbon materials, those sorts of things, and end-of-life and recycling-type sustainability. They're often sort of different working groups. If you're looking at the larger sort of meta organizations, they are frequently handled by subtly different people, even if they might report up into the same broader sustainability group inside of a company. They're driven by different consumer factors. While we have, I think like everybody else, certainly seen somewhat of a change in tenor on the climate side of things, notwithstanding that, that really hasn't changed our own view of the importance of climate, but I think that the broader view on climate has changed.

For those new to origin, we are making a big difference with a small cap and the technology behind it our.

Speaker #2: These statements are subject to a variety of disclosures regarding the non-GAAP financial measures discussed on today's call in our press release issued this afternoon and our filings with the website.

Our technology platform produces what we believe are the only commercial ready <unk> caps as opposed to the HCP and polypropylene caps, which today dominate the over $65 billion closures market.

Speaker #2: risks and other important factors that could affect our expectations. For further discussion on the material financial results, please refer to our filings with the SEC, including our quarterly report on to revise or publicly release the results today's call, we will discuss non-GAAP financial measures, which we believe are Form 10Q filed today.

Our platform excels in seven areas, recyclability oxygen and Seo to barrier, enabling shelf life extension closure diameter, which enables more economic larger format production.

<unk>, which enables light weighting rigidity for our premium fuel use of recycled content and optical clarity.

Our innovation stands to be transformative for the packaging industry.

Speaker #2: The webcast of this call will

In addition to achieving key financing milestones. This year, we continued to execute our operating plan.

Former deployment schedule is on track and we are maintaining our related guidance as.

As such we continue to expand <unk> production capacity in accordance with our revenue growth strategy.

Speaker #3: be staged according to our manufacturing capacity build-out. This financing fuels the scale-up of PET cap production. Our financing is composed of debt financing, both equipment-backed and corporate-level debt, with the flexibility

John Bissell: We have not seen a reduction in intensity for end-of-life recycling-type value propositions or sustainability efforts. We have seen a lot of push still in the US, just like we had before around resolving the issues for recycling and end-of-life, particularly for plastics. I think, and same in Europe, obviously, there's tethering in Europe that is leading a little bit, the sort of tethering activities or other kinds of end-of-life activities in the US. I'd say in both cases, we see really strong demand elements that are coming from this end-of-life and recycling sustainability desire. I think also as the plastic and plastic microparticles are becoming more inherently linked to consumer cares, I think that's driving recycling more. Frankly, we think that that favors PET quite significantly compared to other packaging materials. We're really excited, frankly, about all of those demand elements.

We remain on track for completing factory acceptance testing through cat former line six by the end of 2025.

To optimize capital deployment line, seven and eight startup could extend into Q1 2027 updated from Q4 2026.

Speaker #3: to optimize cash management and cost of capital by optionally servicing the During

Speaker #3: equity. Following our evaluation of multiple corporate financing structures over the past debt with couple of quarters, we have executed a secured convertible debt facility with an initial close of $15 million in cash by the end of the month, with the capacity for additional tranches up to a total of $90 million as needed to maintain a healthy cash flow and to fund growth.

On the commercialization front, we are executing our water first go to market strategy with line of sight to our revenue targets in 2026.

Last quarter in California, we put our closures on what we believe are the only beverage products on the market with PTT gaps.

Since then we've built sales momentum globally marketing our products in North America, Europe, South America, and Asia, and bolstering our customer pipeline in accordance with our water first growth strategy.

Speaker #3: quarter, we evaluated a number of term sheets for cap former equipment financing and During the third for those in the fourth quarter added $20 million US in equipment-backed financing capacity, bringing our total equipment financing capacity to approximately $30 million.

In recent months, our sales team displayed pega caps at key international conferences for the plastic parts and beverage industries and it is clear that origin holds a strong lead MPT cap commercialization.

Water customer demand is strong growing and provides a path on the way to CSD sales.

John Bissell: I think it's all good right now for PET caps as far as we can tell.

More than half of the water brands in origins customer qualification funnel are also potential CSD customers.

This quarter, our customer Berlin packaging placed its first order, which we are now in the process of fulfilling.

For those new to origin. We are making a big difference with a small cap and the technology behind it.

Ryan Smith: Excellent. All right. This next question, I think, was motivated by the fact that Origin has participated in a number of trade shows recently. The investor asks, have any concrete developments come from your recent spate of trade shows in the US and Europe?

Berlin packaging is a respected market leader and represents a sales and distribution partner for origin <unk>.

<unk> broad and deep distribution footprint not only extend our market reach for <unk>, one but opens the door for all our forthcoming formats across closure applications globally.

Our technology platform produces what we believe are the only commercial ready pet caps as opposed to the HDPE and polypropylene caps, which today dominate the over 65 billion dollar closures Market.

John Bissell: Yeah. Not things that we're ready to sort of communicate externally. A lot of these deals can take quite a long time. There's a lot of involvement, especially if it's not just a straight-up, I'm going to buy some caps from you that you're already making. Obviously, in our phase of life, there are a lot of transactions or sort of commercial development activities that involve something that we could do or will do in the future, those kinds of things. Those take a little while to be able to communicate out. Lots of concrete things have happened there. Not all things that we can talk about, but I will say our sales team and our business development team has been really busy with the outputs of not just those trade shows, but in general.

You can find more about our Berlin packaging relationship in our August 2025 press release.

Our platform excels in 7 areas recyclability, oxygen and CO2 barrier enabling shelf life extension closure diameter, which enables more economic large format production.

We extended our technology lead this quarter by making significant progress with two priority challenges impact resistance and multi day heated horizontal stress testing.

Thickness, which enables lightweighting rigidity for a premium feel, uses recycled content and optical clarity.

Our Innovation stands to be transformative for the packaging industry.

Amongst separate cap designs, we successfully exceeded performance requirements for both of these tests and upcoming production trials, we expect to consolidate these features into a single cap design.

In addition to achieving key financing milestones, this year we continue to execute our operating plan.

Our cap, former deployment schedule is on track and we are maintaining our related guidance.

With that I'll hand, it over to Matt who will discuss the quarter's financing and strategic highlights and provide a review of our expected near term financial performance.

As such we continue to expand Pet CAP production capacity in accordance with our Revenue growth strategy.

Thanks, John and good afternoon, everyone first while the details of the convertible debt financing will be published in the 8-K can be filed in the coming days I would like to share a qualitative perspective on our financing strategy. We expect the next several quarters to be operationally dynamic at origin with.

We remain on track for completing factory acceptance testing through cat, formerly Line 6, by the end of 2025.

John Bissell: I think that our experience so far has been as people become aware of what we are doing, we get a lot of inbound interest as a result of that. That sort of qualitatively tells us that there are lots and lots of markets that we have not touched, have not tapped, are not aware of us. It is going to be valuable for us to continue to push our message and show people our product, and that there is a high percentage of the market that is very interested in PET caps across the board, both small companies and large companies.

To optimize Capital deployment, line, 7, and line. 8 startups could extend into q1 2027 updated from Q4 2026.

Concurrent execution of a number of critical workflows, including key design iterations multi.

The commercialization front, we are executing our water. First go to market strategy. With line of sight to our Revenue Targets in 2026.

Quarter.

Multiple customer qualification processes and significant capital equipment acquisition and capacity build out activities at the moment, we believe the combination of our equipment financing and convertible debt instrument is the optimal funding strategy for the agility to best respond to the rapidly evolving working capital needs and to have <unk>.

California, we put our closures on what we believe are the only beverage products on the market with Peet caps.

Ryan Smith: Yeah, that makes sense. All right. Last question here, John, to close us out. What do we have to get excited about as we look into the future?

Ready access to future equipment funding at the optimal cost of capital for a given situation.

We anticipate drawing additional tranches in 2026 as needed. Although we are not obligated to do so it is at our discretion contingent upon meeting certain minimum equity and financial conditions.

Since then we've built sales, momentum globally marketing, our products in North America Europe, South America, and Asia, and bolstering. Our customer pipeline in accordance with our water. First growth strategy in recent months, our sales team, displayed pet caps at Key International conferences for the plastic parts and beverage Industries, and it is clear that origin holds a strong lead in Pet CAP, commercialization.

John Bissell: Look, we are excited about the capacity that we're bringing online. We think that that's going to enable us to really drive caps to the larger customers. We're excited about new product features, and continued product development, which lets us, excuse me, access more parts of the market. Frequently, especially with large customers, while they want to start with a single product, they want to have a vision for how something like a PET cap can solve a lot of their, solve the sort of cap and sustainability problem associated with caps of different non-PET materials, solve that for their whole portfolio. Showing how we can do that to them is something that additional product types or product features can do, and we're really excited about that.

Water customer demand is strong growing and provides a path on the way to CST sales.

It really.

It is the company's decision whether to service any outstanding debt with either cash or shares contingent on meeting certain minimum liquidity requirements.

More than half of the water brands and Origins customer qualification funnel are also potential CSD customers.

This quarter our customer Berlin, packaging placed its first order, which we are now in the process of filling.

Second our revenue and run rate adjusted EBITDA guidance remains unchanged before consideration of potential strategic review outcomes. We continue to expect 2026 revenues up $20 million to $30 million.

Berlin, packaging is a respected market, leader and represents a sales and distribution partner for origin.

Only 27 revenues of $100 million to $200 million and we continue to expect to reach EBITDA.

Berlin's Broad and deep distribution footprint. Not only extends our Market reach for 1881, but opens the door for all our forthcoming formats across closure applications globally.

But the run rate breakeven in 2027.

You can find more about our Berlin packaging relationship in our August 2025 press release.

Third during this quarter origin settled securities litigation with no finding of liability or wrongdoing.

Announced in October 2025.

We extended our technology, lead this quarter by making significant progress, with 2, priority challenges impact, resistance and multi-day heated horizontal, stress testing.

Oregon entered into binding agreements to settle the shareholder class action lawsuit and the related derivative lawsuit initially filed in August 2023, and March 2025, respectively pending in the United States Court.

John Bissell: We're excited about the financing that we just closed here, and we think we can show how that can drive the business the way that we all want it to. I think with all of that said, I think we're in a really good spot, and we've got the right product in the right market, and we have the right resources to go execute on it. There's going to be a lot to talk about. Thank you.

Amongst separate cap designs, we successfully exceeded performance requirements for both of these tests.

In upcoming production trials. We expect to consolidate these features into a single cap design.

Or the East district of California.

The proposed settlement, which will be fully covered by insurance resolve all claims asserted against origin.

With that, I'll hand it over to Matt, who will discuss the quarter's financing and strategic highlights and provider review of our expected near-term financial performance.

And the other named defendants in the lawsuit.

Even when a company has strong confidence in its position, which origin does the way the litigation process works. It can often cost more to fight through indications than it does to settle and make the case go away. The settlement allows us to avoid distractions associated with the lawsuits and avoid uncertainty and focus on our core.

Ryan Smith: Excellent. That's all for our Ask Origin questions. Thank you, John. Thank you, Matt. Thanks to all of our investors on the line today. This concludes our call.

Thanks, John and good afternoon everyone first, while the details of the convertible, debt, financing will be published in the 8K to be filed. In the coming days, I would like to share a qualitative perspective on our financial strategies. We expect the next several quarters to be operationally dynamic at origin with concurrent executions of a number of critical workflows including key design iterations.

Core business.

Lastly origin strategic review engagement with RBC capital markets announced in our Q2 2025 earnings release is progressing well with productive engagement from potential Counterparties, we look forward to sharing more on this topic as appropriate with that I'll pass it back to John for concluding remarks.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Thanks, Matt I'll conclude with the following.

And significant capital equipment acquisition and capacity buildout activities. At the moment, we believe the combination of our equipment financing and convertible debt instruments is the optimal funding strategy for the agility to best respond to the rapidly evolving working capital needs and to have ready access to future equipment funding at the optimal cost of capital for a given situation.

We secured financing that strengthens our balance sheet and provides access to substantial additional capital. We are the clear technology leader for PDT caps poised to grow at dominate our new market category, we are making strong progress with respect to our manufacturing capacity build out and product development.

We anticipate drawing additional tranches in 2026 as needed. Although, we are not obligated to do. So, it is an hour discretion contingent upon meeting certain minimum equity, and financial conditions. Similarly,

And demand is strong both for water and CFT applications, we look forward to sharing our milestones with you as we progress on our mission centered on the future of packaging sustainable materials and recycling that actually works.

It is the company's decision whether to service any outstanding debt with either cash or shares contingent on meeting certain minimum liquidity requirements.

With that I'll open up the call for questions. Operator may we have the first question. Please.

We will now begin the question and answer session.

To ask a question you May press Star then one on your telephone keypad.

Second, our revenue and run rate, adjusted even to guidance remains unchanged before consideration of potential strategic review outcomes. We continue to expect 2026 revenues of 20 to 30 million 2027, revenues of 100, to 200 million. And we continue to expect to reach Evita.

If you were using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

Our first question today comes from Frank Mitsch with Fermium Research. Please go ahead.

Adjusted run rate break. Even in 2027 third, during this quarter origin settled Securities. Litigation with no finding of liability or wrongdoing, announced in October, 2025 origin entered into binding, agreements to settle the shareholder class action, lawsuit, and the related derivative lawsuit initiative.

Hey, good afternoon, John and Matt and congrats on the financing can I wanted to ask a couple of questions on that.

Filed in August 2023 and March 2025 respectively pending in the United States Court.

For the East District of California.

On the cash position and the convertible debt financing, okay. So you're going to get $15 million by the end of this month and it is at your option to get up to the 90 million the additional $75 million.

The proposed settlement, which will be fully covered by Insurance resolves, all claims asserted against origin.

And the other named defendants in the lawsuit.

I believe Matt you mentioned that there were some milestones or some mileposts.

That were.

Necessary for you to pass in order to get the future funding can you is that true and.

Can you just.

Kind of describe that those mileposts.

Even when a company has strong confidence in its position, which origin does the way the litigation process works. It can often cost more to fight through Vindication than it does to settle and make the case go away. This settlement allows us to avoid distractions associated with the lawsuits and avoid uncertainty and focus on our Core Business.

Yes.

Great. Thanks for the question.

At this point the 8-K with the deal terms, there's going to be out by month end probably sooner.

Frankly, I think it's best to see all the terms together at one time.

Lastly origin, strategic review engagement with RBC Capital markets announced in our Q2 2025 earnings release this progressing. Well with productive engagement from potential counterparties. We look forward to sharing more on this topic as appropriate.

You can get a proper understanding of how the instrument works and so I think I need to wait until we file that's really getting into a level of detail beyond what we did in the prepared comments.

With that, I'll pass it back to John for concluding remarks.

Thanks, man. All conclude with the following.

So I think thats the approach we should take a moment alright final I'll be on the lookout for that the burn rate in the third quarter was $15 million.

We've secured financing that our balance sheet and provide to access to substantial additional capital.

It's a little bit higher than.

And then perhaps.

We are the clear technology leader for pet caps poised to grow and dominate a new market category. We are making strong progress. With respect to our manufacturing capacity, buildout and product development.

I had been thinking can you just can you offer your.

Your outlook in terms of the burn rate for the next couple of quarters.

So the burn rate is a combination of it's kind of at the moment kind of what our operating expenses, our cash operating expenses and as we talked about in Q1 and Q2.

And demand is strong both for water and CST applications. We look forward to sharing our Milestones with you as we progress in our mission centered on the future of packaging, sustainable materials and recycling, that actually works

Together in the first six months was approximately.

With that, I'll open up the call for questions. Operator, may we have the first question, please?

We will now begin the question and answer session.

$20 million and then the rest was capex.

Capex for our cat formers in Q3, it was roughly $10 million on Opex and <unk> 5 million on Capex. So.

to ask a question, you may press star then 1 on your telephone keypad,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

So relatively consistent.

To withdraw your question. Please. Press star. Then 2

And.

I think as we look into 2026, that's probably a good guide to use.

At this time, we will pause momentarily to assemble our roster.

Of course, as we began generating gross profit.

We're going to we're going to reduce the net burn.

But as we've said before this is a capacity build story to tell.

Our first question, today comes from Frank Mitch with fermium research. Please go ahead.

To gather all the which is to be able to service all the the demand. So we're going to keep building the cap warmers and that's kind of why we have the financing lined up that we do to take care of that but.

hey uh good afternoon uh John and Matt um and congrats on the financing, can I uh I wanted to ask you a couple questions on the

It's a relatively straightforward split.

50, 50, 60, 40, something like that between Opex and Capex for the foreseeable future.

Terrific. Thank you and John you indicated that lines, two and four are going to be starting up in the fourth quarter and in the first quarter and I was wondering if you could give us an idea as to when do you expect that that's going to be generating.

On the cash position and and the convertible debt, financing, okay? So you're going to get 15 million by the end of this month and it is at your option, to get up to the uh, the 90 million, the additional 75 million. Um, I I believe Matt, you mentioned that there were some Milestones or some mile posts. Um,

That were uh necessary for you to pass in order to get the uh the future funding. Can you is is that true? And uh can you just uh you know, kind of describe that those mile posts?

Acceptable.

Product quality for the for the customers.

Because it's kind of important I guess.

Given the NASDAQ Delisting I guess is your extended till April of 2026. So if these lines are up and running and you're qualified et cetera.

And then I think there could be scope to see that.

<unk>.

To see the socket to one dollar on its own.

But if you can give me give us a little more color on the startups of lines two and four please.

Yeah. So.

We're we're making good progress on on the startup of <unk>.

Those lines already and we're excited to get them up running and producing consistent product that we can test with our customers as we've said before it can be a little bit tricky to predict exactly when we're going to get line time.

All right, fine. I'll, I'll be on the lookout for that. Uh, the burn rate in the third quarter was 15 million. Uh, it's a little bit higher than, um, than than perhaps. Um, I I've been thinking, can you do, can you, uh, offer your, um, your outlook in terms of the burn rate, uh, for the next couple of quarters?

With customers to do that qualification on the customers' lines right. So first you've got to get our lines up and running and then you've got to be take that product from those lines and specifically used it in the customer lines check that off and then you can figure out exactly what the timing is to start generating revenue off of that and making sales into that that customer line.

Yeah. So the burn rate is a combination of kind of, at the moment kind of what our operating expenses are cash operating expenses as we talked about in q1 and Q2, uh, together. The first 6 months that was, you know, approximately, uh, 20 million and then the rest was, um, capex for a cap farmers. In Q3, it was roughly 10 million on Opex and 5 million on capex.

But we do think that we can make really significant progress.

All of those items in the window that you were just referring to which is really sort of through the end of Q1, we think we can do a lot.

Across those.

Not ready to commit on any single particular customer at this point.

But we really think we can make a lot of progress across all of those there is plenty of time for us to do that and we are.

We like the way that's all lines at lines, two and four are starting up right now anyway.

Alright, very helpful. And then I guess lastly speaking of customers Youre getting your first order you received your first order from Berlin packaging I assume that thats for water application I am curious.

So relatively consistent and um, you know, I think as we look into 2026, that's probably a good guide to use. Um, of course, as we begin generating gross profit, you know, we're going to, we're going to reduce the net burn. Um, but as we've said before, this is a capacity built story to to to gather all the to to to be able to service all the the demand. So we're going to keep building the cap formers and that's kind of why we have the financing lined up that we do to take care of that. But um, it's it's a relatively straight forward split. Um, you know, 50/50, 60/40 something like that, like, that between Opex and capex for the foreseeable future.

I assume that youre through qualifications et cetera.

But any color that you can give on.

On that first order and what.

What your prognosis is for future orders from Berlin packaging.

Yes, so we're excited to ship it we haven't.

Terrific. Thank you and uh John uh you indicated that lines 2 and 4 uh are going to be starting up in the fourth quarter and in the first quarter. And um, I I was wondering if you could give us an idea as to, when do you expect that? That's going to be generating. Uh, you know, uh uh, acceptable.

We haven't heard feedback from.

Berlin's customers on it yet so we're excited to see that I think that's going to be.

Product quality, uh, for the, for, for, uh, for the customers. Um, you know, because it's, it's, it's kind of important, I guess. Um,

Part of what we talked about I suspect that next quarter is is learning everything that we learned from those from <unk> customers.

We have been busy setting up of our customer support service. So you know a lot of the work that we've been doing is really product development oriented engagement with customers, where we're going from qualifying and a very prescribed fashion with Berlin, what's a little bit different is we don't necessarily control exactly which customers are going to be using the caps are caps. There. So we need to have the ability to respond.

Given, you know, the NASDAQ the listing, I guess is your extended till April of 2026. So, if these lines are up and running and you're, you know, qualified, Etc, you know, then then I, I think there could be scoped to see the to, to, to see the socket, uh, to a dollar on its own. Uh, but yeah, if you can give me, give us a little more color on on the startups of lines, 2 and 4, please.

yeah, so um, we're we're making good progress on, uh, on the startup of, um,

Simply provide customer service instead of just.

Sort of planning too far in advance. So we're excited to do that we've got that capability pretty much setup, and then and I think thats going to give us a heck of a lot of information about how our cost performing how people are using it in and as with most applications in the world as you as you start to use something for that application youre going to learn things that you you weren't expecting.

And that's frankly as an engineer and a scientist that's really exciting.

Terrific. Thanks, so much John.

Thanks, Brian I appreciate it.

Uh those lines already. Um, were excited to get them up, running and producing consistent product that we can test with our customers, as they said before, it can be a little bit tricky to predict exactly when we're going to get the line time, um, with customers to do that qualification on the customer's lines, right? So first you've got to get our lines up and running and then you've got to be take that product from those lines and specifically use it in a customer lines, check that off. And then you can figure out um exactly what the timing is to start generating Revenue off of that and making sales into that that

Thank you now I'll turn it over to Ryan Smith, co founder and Chief product Officer for a Q&A section answering ask origin questions submitted by investors prior to today's call.

Thank you operator.

To our earnings call, we invited all investors to submit questions as part of our <unk> <unk> campaign. So thank you. So much to everyone who participated these questions were of course submitted before our call today and we entered many of them thoroughly with our prepared remarks, we will generally be entering the most relevant questions today during the time that we have.

Customer line, you know? Um, but we do think that we can make really significant progress across all of those items in the window that you were just referring to, which is really sort of, through the end of q1. We think we can do a lot, um, across those, we're, we're, we're sort of, uh, not not ready to commit on any single particular customer, um, at this point. Uh, but we really think we can make a lot of progress, all of those, there's plenty of time for us to do that and we're, um, we like, the way that the lines, uh, lines to and, for our starting up right now anyway.

So let's start with the first question.

Mr asks could you. Please provide more explanation about the various phases of qualification and their significance and this is specifically in reference to qualification of the lines.

<unk> like <unk> and <unk>.

All right, very helpful. And then I, I guess, lastly, speaking of customers, you know, you you're getting your first order or you received your first order from Berlin, uh, packaging. I assume that that's, uh, for a water application. I'm curious. Yeah. And I, I assume that you, you know, your through qualifications, Etc. Uh, but any color that you can give on on the

Yeah. So first I think I think your comment just now Ryan as it is a useful one to remind everybody up which is.

On on that first order and, uh, you know what, what your prognosis is for future orders from Berlin Packaging.

For better for worse, we do talk about qualification in two different context, one of them is qualifying our product with customers on their bottling lines and.

so uh we're excited to ship it, we haven't, um, we haven't heard feedback from

Berlin's customers on it, yet.

And Thats.

Been a significant focus of ours.

Over the last year.

Year, or so and that's a process, where we send them caps they run our caps on their bottling lines and they see both how do those caps perform.

From a throughput and a quality perspective and as their bottling lines.

So we're excited to see that. I think that's going to be uh, you know, part of what we talked about, I suspect, uh, next quarter is um, is learning everything that we learned from those, uh, from from Berlin's customers. Um, we have been busy setting up our customer support service. So, you know, a lot of the work that we've been doing is really product, development-oriented engagement with customers where we're going from qualifying in a very prescribed fashion.

Examples of things that could go wrong, they're not specifically for our caps put caps in general could be missed application of the caps or jamming of their bottling systems and then the other thing that they're really looking for in the aggregate is and how do those counts end up performing on those the products that they are making on the line. So there is sort of the performance of the cap running through the <unk>.

And then there is the performance of the cap.

As part of the final package for the product and there you could have them under application of the caps that might make it.

You're going to learn things that you, um, you weren't expecting. Uh, and that's frankly as an engineer and a scientist that's really exciting.

Not feel properly or it could be over application of the caps, which might cause a problem for.

Terrific. Thanks so much, John.

Thanks Frank, appreciate it.

No tamper evidence or it might make it too hard to get off or something like that even sort of generic comments on on what could go wrong with those sorts of things and so those are the two elements of customer qualification and of course with customer qualification you are both looking for our particular cap design that's being qualified.

Thank you. Now I'll turn it over to Ryan Smith, co-founder and chief product officer for a Q&A section answering, ask origin, questions submitted by investors. Prior to today's call.

Thank you, operator.

It's also what do we maybe need to change adjusting the settings on their life and in order to make our cap run properly on their lines. These are pretty typical things that you might.

Manage your way through during our customer qualifications buses, whether it's a <unk> cap or any other cat.

Prior to our earnings call, we invited all investors to submit questions as part of our Ask Origin campaign. So, thank you so much to everyone who participated. These questions were, of course, submitted before our call today, and we answered many of them thoroughly with our prepared remarks. We will generally be answering the most relevant questions today during the time that we have.

And then.

And so that process is what we often are referring to and the key part of that process as we have to get onto our customers operating lines and they have to give us the time.

So let's start with the first question. Um, the investor asks, could you, please provide more explanation about the various phases of qualification and their significance? And and this is specifically in reference to qualification of the lines.

terms like, sat and sat

Do those runs collect the data appropriately and make sure that our cap is working properly and then they can incorporate.

Our caps into their product and planning cycles going forward.

But obviously, that's a long winded way of saying that's actually not what the question was about although I think it was really worth walking through the question is about our qualification of our own lines. So not the lines for using cash, but the lines for making caps. So this is what these are our cat forming lines and what we do during a factor.

Yeah, so first, I think it I think your comment just now Ryan is a, is a useful 1 to remind everybody of which is, you know, um, For Better, or For Worse, we do talk about qualification in 2 different contexts. 1 of them is qualifying, our product with customers on their bottling lives. Uh, and that's, um, a been a significant focus of ours, uh, over the last, um, you know, year or so.

The acceptance testing, which is SaaS, which is.

Something we talk a lot about is that's us testing the performance of the equipment.

The site that the equipment was fabricated and assembled so hence in the factory not our factory, but the factory of the equipment suppliers and Thats verifying that before the equipment ever leaves the factory that it's operating the way it's supposed to all of its facts.

With successful completion of the <unk>.

The factory acceptance test it all gets box that it gets shipped to wherever we're going to install and operate that equipment. So frequently that means our <unk> manufacturing location in Michigan.

We unbox all of the equipment, we re integrate all of it assemble it started up and then we run it again and we see if it performs the same way now installed at a completely different location, where we're going to be operating it.

So and that's a process where we send them caps, they run our caps on their bottling lines and they see both, how do those caps perform uh, from a throughput and a quality perspective in their bottling lines? Um, you know, examples of things that could go wrong. There not specifically for our caps, flip caps in general, could be misapplication of the Caps or jamming of their bottling systems. And then, the other thing that they're really looking for in the aggregate is, um, how do those caps end up performing on those, the products that they're making on the line? So there's sort of the performance of the cap running through the process. And then there's the performance of the cap as part of the final package for the product. And um, and there you could have um, under application of the Caps that may might make it, you know? Um,

For the foreseeable future.

So it runs the way that it did during the factory acceptance testing.

When we have checked that often it is running the way that it was before that is the completion largely of the site acceptance test or the F. 18, So that's the <unk> and the site acceptance test now we also go through a line startup and qualification process for ourselves, which is where we're really we're not testing whether the equipment is working.

Not sealed properly, or it could be over application of the Caps, which might cause a problem for, you know, I don't know, tamper evidence, or might make it too hard to get off or something like that. These are sort of generic comments on on what could go wrong with those sorts of things. And so those are the 2 elements of customer qualification. And of course, with customer qualification, you're both looking for our particular cap. Um, design that's being qualified. Um, it's also, what do we maybe need to change? Uh, adjust, you know, settings on their life, um, in order to make our cap run properly on their lines. These are pretty typical things that you might, um, uh, manage your way through during a customer qualification process. Whether it's a pet,

We are dialing in the equipment. So that it is operating exactly to the.

Cap or, um, any other cap. And um,

The performance specifications that we're looking for as long term operators of that equipment and that's less of a catch up.

Work, that's do we haven't honed in properly so that we're getting the level of precision that we want to see on those lines. So that when we're shipping caps to customers we are comfortable that those caps.

Uh and so that process is what we often are referring to and the key part of that process is we have to get on to our customers operating lines and they have to give us the time to to do those runs. Collect the data appropriately. Make sure that our cap is working properly and then they can incorporate um uh our caps into their product and planning Cycles going forward.

Statistically are meeting the specifications.

As frequently as they need to to make sure that when we go onto customer qualifications on airlines that those caps are going to work the way that they're supposed to.

Great.

The next question from an Investor asked.

Can you speak to the customer demand in Europe versus the U S. Given the environmental stance of the current U S administration, and how that factors into your expected growth plans.

Yeah.

I think the first thing to say here is we see a real delamination between the sort of sustainability treatment and public opinion of.

Um, but obviously, that's a long-winded way of saying that's actually not what the the question was about. Um, although I think it was really worth walking through. The question is about our qualification of our own lines. So, not the lines for using caps, but the lines for making caps. So, this is what these are, our cap forming lines. Um, and what we do during, uh, Factory acceptance testing, which is stats, which is the, uh, something we talk a lot about is, um, that's us. Testing the performance of the equipment at the site that the equipment was fabricated and assembled, so hence in the factory, not our Factory, but the factory of the equipment suppliers, um, and that's verifying that before the equipment ever leaves, the factory that its operating the way it's supposed to, to all of its specs.

Something like a sustainable material or climate technology, low carbon materials those sorts of things.

And.

End of life and recycling type sustainability so those.

We successful completion of the the fat, the factory acceptance test. It all gets boxed up. It gets shipped to wherever we're going to um install and operate that equipment. So frequently, you know, that means our our read City uh manufacturing location in Michigan.

They're often sort of different working groups, if youre looking at the larger organization sort of meta organizations.

They are frequently handled by <unk>.

Suddenly different people, even if they might report up into the same broader sustainability group and inside of our company and they are driven by different consumer factors.

So while we have I think like everybody else certainly seen somewhat of a change in tenor on the climate side of things and notwithstanding that that really hasnt changed our own view of the importance of climate, but I think that the broader view on climate has changed.

We have not seen a reduction in intensity.

For.

End of life recycling right.

Value propositions or sustainability efforts and so.

We haven't seen a lot of push still in the U S.

Just like we had before around resolving the issues for recycling and end of life, particularly for plastics.

Thank you.

And same in Europe, obviously, theres tethering in Europe.

It is a leading a little bit sort of gathering activities or other kinds of end of life activities in the U S. But I'd say in both cases, we see really strong <unk>.

Demand elements that are coming from.

This end of life and recycling sustainability.

Running the way that it was before. That is the completion. Largely of the site acceptance test or the SAT. So that's the SAT and the site acceptance test. Now, we also go through a line startup and qualification process for ourselves, which is where we're really. We're not testing whether the equipment is working, we are dialing in the equipment so that it is, uh, operating exactly to the, um, the performance specifications that we're looking for, as, uh, long term operators of that equipment, um, and that's less of a test of this equipment work. That's do we have it phoned in properly so that we're getting the level of precision that we want to see on those lines. So that when we're shipping caps to customers, we are comfortable that those caps, um, statistically are meeting the specifications, um, as frequently as they need to, to make sure that when we go on to customer qualifications on their lines, that those caps are going to work the way that they're supposed to.

Higher.

I think also as the.

Plastics.

Plastic micro particles are becoming more inherently linked to <unk>.

Great. Thank you. The, um, the next question from an investor asks,

Sumer errors, I think thats driving recycling more and frankly, we think that that favors <unk> quite significantly compared to other packaging materials. So we're really excited frankly about all of those demand elements and I think it's.

Can you speak to the customer demand in Europe versus the U.S. given the environmental stance of the current U.S. Administration, and how that factors into your expected growth plans?

It's all good right now for for PVC caps as far as we can tell.

Excellent alright, and so this next question I think was motivated by the fact that Oregon's participated in a number of trade shows recently the investor asks have any concrete developments come from your recent spate of trade shows in the U S and Europe.

Yeah, you know, um, I think the first thing to say here is, we see a real delamination between the sort of sustainability treatment, and, and public opinion of something like a sustainable material, or a, a climate technology, low-carbon materials, those sorts of things.

and,

Yeah.

So not things that we are ready to sort of communicate externally.

Lot of these deals can take quite a long time, there's a lot of involvement.

Especially if it's not just a straight up I'm going to buy some caps from you that you're already making and obviously in our phase of life. There are a lot of transactions or.

End of life and recycling hype sustainability. So those, um, they're often sort of different working groups. If you're looking at the larger organiz, you know, sort of meta organizations, um, they are frequently handled by um, subtly different people. Even if they might report up into the same broader sustainability group and inside of a company and they're driven by different consumer factors. Um,

Sort of commercial development activities.

Involve something that we could do or will do in the future of those kinds of things and those take a little while to be able to communicate out. So so lots of concrete things have happened there not all things that we can talk about but I will say.

Our our sales team and our business development team has been.

Really busy with the outputs of not just those franchise, but in general.

And I think that our experience so far has been as people become aware of what we are doing.

We get.

A lot of inbound interest as a result of that and so that that's sort of qualitatively tells us that.

So, you know, while we have, uh, I think like everybody else. Certainly seen, uh, somewhat of a change in tenor, on the climate side of things. And, you know, notwithstanding that that that really hasn't changed our own view of the importance of climate. But I think that the the broader view on climate has changed, um, we have not seen a reduction in intensity, uh, for um, end of life, recycling type, uh, uh um, value propositions or uh, sustainability efforts. And so um, we have seen a lot of push still in the US. Um, just like we had before around uh, resolving the issues for recycling and

There's lots and lots of market that we haven't patched haven't tapped isn't aware of us that's going to be valuable for us to continue to.

To push our message and show people, our products and and that there is a high percentage of the market that is very interested in pega caps.

End of life, particularly for Plastics. And I think, uh, and and, you know, same in Europe, obviously. Uh, you know, there's tethering in Europe, um, that is, uh, leading a little bit, the sort of tethering activities or other kinds of end of life activities in the US. But I'd say, in both cases, we see really strong, um, demand elements that are coming from, uh, this end of life and recycling sustainability, um, desire,

Across the board, but small companies and large companies.

Yeah that makes sense Alright, and then last question here John to close us out.

What do we have to get excited about as we look into the future.

Look.

We are.

Excited about the capacity that we're bringing online we think that that's going to.

Enable us to really drive caps to the larger customers.

I think also, as the, uh, Plastics and, um, platform microparticles, uh, are becoming more inherently linked to, um, consumer there. I think that's driving recycling, more. And frankly, we think that that favors pet quite significantly compared to other packaging materials. So, we're really excited, frankly. About all of those demand elements. And, and I think it's, um, it's all good right now for, uh, for PVC caps. As far as we can tell,

We're excited about.

New.

Product features.

Continued product development, which lets us.

Excuse me access more parts of the market.

And frequently especially with large customers.

excellent. All right. And uh, so this next question, I think was motivated by the fact that Origins participated in a number of trade shows recently. The investor asks have any concrete developments come from your recent Spate of trade shows in the US and Europe?

While they want to start with a with.

With a single product they want to have a vision for how.

Something like a P C cap Ken.

A lot of their solve the sort of cap in sustainability problem associated caps.

A different non PDT materials solve that for their whole portfolio and so showing how we can do that to them is something that.

Additional product types or product features can do and we're really excited about that.

We're excited about the financings that.

We just closed here in that and we think we can show how.

That can drive the business the way that we all wanted to.

Yeah. Uh, so not things that were ready to sort of communicate externally. Um, you know, a lot of these deals can take uh, quite a long time. There's a lot of involvement. Um uh, especially if it's not just a straight up, I'm going to buy some caps from you that you're already making. And you know, obviously in our our phase of life, there are a lot of, um, transactions or or um, uh, sort of commercial development activities, that, that involve something that we could do or, or will do in the future of those kinds of things. And those, uh, take a little while to be able to communicate out. So, so lots of concrete things have happened there, not all things that we can talk about, but I will say

<unk>.

And I think.

Yes.

I think.

With all of that said.

I think we're in a really good spot and we've got the right product in the right market and we have the right resources to go execute on it.

People become aware of what we are doing. Um, we get

So theres going to be a lot to talk about.

Thank you.

Excellent that's all for our ask origin questions.

Thank you John Thank you, Matt and thanks to all of our investors on the line today. This concludes our call.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

a lot of inbound interest as a result of that. And so that, that sort of qualitatively, um, tells us that, you know, that there's lots and lots of markets that we haven't patched. Uh, haven't tapped isn't aware of us. It's going to be valuable for us, to continue to, um, to push our message and, and show people our product. And, um, and that there is a high percentage of the market that is very interested in pet caps, um, across the board, both small companies and large companies,

Yeah, that makes sense. All right. And then last question here, John to close us out. Uh, what do we have to get excited about as we look into the future?

Look, um, we are, uh, excited about the capacity that we're bringing online. We think that that's going to, um, uh, enable us to really drive capacity to the larger customers. Um, we're excited about, uh, uh, new.

Product features and um continued product development, which lets us uh excuse me, access more parts of the market.

Um, and you know, frequently with especially with large customers, you know, while they want to start with a, um, with a single product. They want to have a vision for how, um, something like a Pet CAP can, uh, solve a lot of their solve, the, the sort of, um, cap and sustainability problem associated with caps, uh, of different, non-pet materials solve that for their whole portfolio and so showing how we can do that to them is something that, um, uh, additional product types or, or product features can do, and we're really excited about that. Um, we're excited about the financing, um, that we just closed here. And, uh, and we think we can show how, um, that can drive the business the way that we all want it to,

um,

and I think, uh,

I think, you know, with all of that said, um,

I think we're in a really good spot and uh, we've got the right product in the right market and we have the right resources to go execute on it. Um, so there's going to be a lot to talk about.

Thank you.

Excellent. And that's all for our ask origin questions. Um, thank you John. Thank you Matt and thanks to all of our investors on the line today. This concludes our call

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.